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8/19/41
"Probably depends upon who tried to buy it" Senator Clark broke in. "In the case of Noble it v/as probably loss," Senator Clark referred to the sale of Station 71.ICA of N.Y. not long ago to Edward j, Noble, forr^ier Under Secretary of Comiaerce who was reported to have grabbed it off on account of his political influence at a bargain price, Chairi.ian Fly explained that I.Ir , Noble had tv/o options, one for 0875,000 for the station m th Don Flamm, the latter agreeing not to go into the broadcasting industry for a period years, or O850,000 "/ithout any res trictions , The vi/itness said Noble accepted the latter proposition and that there y/as therefore adequate ground for him going this.
\vhen asked by Senator Vandenberg if he was opposed to the proposed tax on radio time sales. Chairman Fly replied, "I think it is d pretty dubious tax," Senator Johmson v/anted to lcno¥>/ if it really wasn't a tax cn the freedom of eocoression. The vi/itness seemed to be of this opinion, hr. Fly called attention to the amount of time devoted to public service and to carrying the speeches of senators and congressmen, l.Ir, Alvord later went so far as to say that the government takes twothirds of the radio cime leaving the industry only Qiethird of the time for commercials,
"V/hen you spoke of the free time which radio gives to the government you omitted any mention of the President's 'Fireside Chats'*" Senator Bailey said, bringing a laugh. Senator Vandenberg asked Harold A, Lafount, President of tlie Independent Broadcasters Association if he had ever figured up what one of these Fireside broadcasts yyould cost if the President had to pay for it,
"Several thousand dollars" vms the reply. Evidently not satisfied with tlie answer, Senator Vandenberg got at it a different way when he later asked I.Ir, Alvord how much a half an hour's time would cost on everv station in the United States,
"If that is related to the question you asked LIr, LaPount", Hr, Alvord replied, "I should say H50,000,"
I hear the government las set up a station for broadcasting its ovwi praises," Senator Clark remarked, "No sir,"' Nr, Fly ansv/ered, ''but they have the nicest little broadcasting studio you ever saw at the Interior Department," Nr, Ply said the additional expense and burden yvould he placed on the broadcasting industry by national de¬ fense, He explained that stations might have to keep on the air long hours for air raid warnings. Also that they would have to go to the extra expense of putting in oriergency transmitters in case the regular power was bonbed. The witness also pointed out the possibility of loss cf revenue by the stations from clients as the oil, aluminum, automobile and silk industries ceased advertising. Broadcasting, 1:© added, would have to go on whether these advertising returns came in or not ,
Nr, Ply said the industry felt that this tax on advertising i^ight be a burden on distribution and that conceivably might be im¬ portant in a time of business recovery. The witness also pointed to
the fact that nev;spapers and magazines competing media were not taxe d.