Heinl radio business letter (July-Dec 1941)

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10/7/41 "Character is an asset of a business. Reputation affects the customers, the stockholders, and the employees. The method of the investigation, far from tending to improve service or economy, was calculated to create discord, destrxjy morale and frighten Investors. The Bell System would have been derelict in its responsibilities had it not protested. "In the second place, the people who make up the Bell System are citizens of the United States with standing in their various communities. They have children and friends like other people, and their reputations mean something to them. They have, therefore, every reason for deep seated personal resentment when an agency of the Government, which they help to support, sets out to attack their characters. ****«-********** "The members of the Commission who issued the final report, with the exception of the Chairman of the former Telephone Division of the Commission, had taken little part in the investigation. Some had been appointed after the investigation was really finished and had taken no part. "Although the final report had to be built from the material of the investigators and could, therefore, hardly rise above its source and analyze the telephone problem from much of any point of view but the statistical, it did nevertheless have a very different tone from the conduct of the investigation. Some of the attitude of the investigators remained, as for instance putting in the word ’alleged' before the mention of services by the American Telephone and Telegraph Company, but on the whole the report isn't another chapter in the school for scandal. " Regarding the national advertising program of the Bell Telephone System on the radio, Mr. ^age wrote: "The investigators of the Federal Communications Commission, in commenting upon the advertising policies of the Bell System, quot¬ ed from a letter from an advertising agency to the American Tele¬ phone and Telegraph Company advising against radio advertising. The Federal Communications Commission's report to Congress recorded this in this way: "The Bell System does comparatively little advertising by radio, despite the fact that it is one of the beneficiaries of radio broadcasting through the leasing of circuits for pro¬ gram transmission service. The reasons, as stated by one of its advertising agents, for the Bell System's failure to advertise more extensively over radio are twofold: first, such advertising would direct the public's attention to the amount of money being spent for advertising purposes, and second, the probable adverse effects upon the established goodwill of newspaper editors. This is not of much importance except as a commentary on the methods of the investigation. The facts were that this letter was written in connection with a study of a possible radio program for the Bell System. The interest in radio continued after the receipt of the letter Just as it had before and finally resulted 4