NAB reports (Jan-Dec 1942)

portunity foi’ pointed criticism of radio broadcasting as an advertising medium; and, moreover, produces distrust on the part of the advertiser or his agency in the verity of our operation, therefore Be It Resolved That the Sales Managers Committee of the National Association of Broadcasters condemns such practise of double spotting and that while we hold that it is the privi¬ lege and prerogative of station operation to manage avail¬ able business according to individual lights, we do most earnestly recommend the elimination of this abuse in the common interest and for the common good. ADVERTISING EXEMPTION In an earlier issue of the REPORTS (p. 515) a state¬ ment issued by Paul West, President of ANA, told of the results of a conference with Internal Avenue Com¬ missioner, Guy T. Helvering, with regard to the subject of exemption of advertising costs from tax liability. The following official statement has now been issued by Com¬ missioner Helvering: “To be deductible, advertising expenditures must be ordi¬ nary and necessary and bear a reasonable relation to the business activities in which the enterprise is engaged. The bureau recognizes that advertising is a necessary and legiti¬ mate business expense so long as it is not carried to an unreasonable extent or does not become an attempt to avoid proper tax payments. “The bureau realizes that it may be necessary for tax¬ payers now engaged in war production to maintain, through advertising, their trade names and the knowledge of the quality of their products and good-will built up over past years, so that when they return to peacetime production their names and the quality of their products will be known to the public. “In determining whether such expenditures are allowable, cognizance will be taken of (1) the size of the business, (2) the amount of prior advertising budgets, (3) the public patronage reasonaljly to be expected in the future, (4) the increased cost of the elements entering into the total of advertising expenditures, (5) the introduction of new products and added lines, and (6) buying habits necessitated by war restrictions, by priorities, and by the unavailability of many of the raw materials formerly fabricated into the advertized products. “Reasonable expenses incurred by companies in advertis¬ ing and advertising technique to speed the war effort among their own employes, and to cut down accidents and un¬ necessary absences and inefficiency, will be allowed as deductions. “Also reasonable expenditures for advertisements, in¬ cluding the promotion of Government objectives in war¬ time, such as conservation, salvage or the sale of war bonds, which are signed bv the advertiser, will be deductible pro¬ vided they are reasonable and are not made in an attempt to avoid proper taxation. “No definite rule for determining what is reasonable in the case of expenditures for advertising can be laid down in advance so as to fit all situations and all classes of tax])ayers. In determining whether the amounts are reason¬ able it is necessary to take into consideration all the facts and circumstances in each particular case. “The bureau will consider applications for individual rulings.” PER-INQUIRY OFFERS Not only are P-I offers contrary to the Code of Ethics of the broadcasting industry, but investigation has also disclosed that much of the merchandise and many of the services offered are of doubtful or questionable value. The Shaffer Brennan Margulis Advertising Co. of St. Louis, Mo., is at it again. S. I. Rosenfeld asks stations to carry a P-I deal for Paramount Hosiery of Lexington, N. C. He says that his client operates strictly legitimately, meaning that they fill orders promptly. But P-I deals are not consistent with good radio advertising ethics. Sta¬ tions are again importuned not to accept this or any other P-I offer. The Guenther Bradford & Co. advertising agency, Chi¬ cago, is seeking per-inquiry deals for their client, Dendex Co., Los Angeles, who are selling dental plate “reliners.” The United Advertising Companies, Chicago, are send¬ ing P-I requests to the stations for a game called “Battlecheckers” and for “Sinasiptec,” a sinus medical aid. The Radio Sales Co., Nestor, Calif., is submitting a perinquiry offer to radio stations for the purpose of promoting “Stop-a-Leak,” a solution to preserve motor tires. Engineering VACUUM TUBE REPAIR FACILITIES The NAB Engineering Department has been conducting an investigation of the facilities available for the repair of vacuum tubes. The firms listed below have notified NAB of their willingness to accept for repair the types indicated and reports from stations using these tubes show satisfactory life from repaired tubes. Several addi¬ tional manufacturers are now preparing repair facilities which will be announced in the near future. Every effort has been made to make this directory com¬ plete; any omissions are not intentional and should be brought to the attention of the Engineering Department. Please communicate directly with the organizations listed for detailed information concerning delivery, pre¬ ference rating required, guarantee and prices. Freeland & Olschner, Inc., 922 Howard Avenue, New Orleans, Louisiana. Phone: Raymond 4756. Types re¬ paired : All tubes in general use, 250 watts or larger. General Electric Co., Radio, Television and Electronics Dept., 1 River Road, Schenectady, New Yoi'k. Types re¬ paired: 207, 891, 892. Garrett W. Lewis, Route 3, Los Gatos, California. Types repaired: lOOT, 204A, 207, 212E, 220B, 220C, 228 A, 232A, 250T, 251A, 279A, 450T, 806, 849, 869A, 869B, 872A, 891, 891R, 892, 892R, 893, 893R. RCA Manufacturing Co., Mr. Harold Vance, Tube and Equipment Division, Camden, New Jersey. Phone: Cam¬ den 8000. Types repaired: 207, 891, 891R, 892, 892R. PRIORITIES Preference Rating Order, P-129, which authorized a Preference Rating of A-l-j on replacement items contain¬ ing copper expired on September 30, 1942. It is expected a' new Preference Rating Order, P-133 will be announced within the next few days. The pro¬ posed order will assign a Preference Rating of A-l-j to all tubes, parts and essential materials necessary to main¬ tain broadcast station operation. Plans are also under way to allocate materials and manufacturing facilities to make available vacuum tubes to broadcasters on the A-l-j Preference Rating. This should eliminate the necessity in most instances of filing PD-IA applications. Complete details of P-133 will be published when released by WPB. CONSERVATION OF “VINYLITE” In recent months it has become increasingly difficult to obtain “Vinylite”, the thermoplastic used for the manufac¬ ture of radio transcriptions. This is due to the greatly increased use of “Vinylite” resin for war production. This material has been placed under strict control by the War Production Board by their General Preference Order M-154. This order permits the allocation of “Vinylite” for 580 — October 2, 1942