NAB reports (Jan-Dec 1942)

FEDERAL COMMUNICATIONS COMMISSION COOPERATION PROGRAMS The following letters are in reply to a request by the FCC that CBS and NBC state the facts relevant to its refusal to carry the program “Let’s Get Together, Neighbox’J” of the Cooperative League of the United States of America : “COLUMBIA BROADCASTING SYSTEM, INC. 485 Madison Avenue New York City October 20, 1942. Executive Offices Paul W. Kesten Vice President and General Manager T. J. Slowie, Secretary Federal Communications Commission Washington, D. C. Dkar Sir: This will acknowledge receipt of your letter of October 14, 1942 with respect to the Cooperative League of the U. S. A. We appreciate your interest in this matter and the opportunity to present complete information on the reason which prompted us to decline to sell time to the Cooperative League of the U. S. A. The Columbia Broadcasting System has for years sold time only for the purpose of advertising the goods _ or services of the sponsor (except to a political party dui’ing the actual campaign for the election of candidates). We have steadfastly declined to sell time for purposes of propaganda on one side or another of any controversial issue. The programs proposed by the Cooperative League did not offer for sale to the listener either the goods or services of the advertiser, and thus lay outside the field within which we sell our facilities. Moreover, the offered programs were clearly controversial in nature, being de¬ signed to promote a fundamental change in the present system of marketing and distribution of goods and serv¬ ices whereby cooperative associations would largely sup¬ plant retail stores and other common distribution estab¬ lishments (see our statement on this subject of October 7, 1942 which is attached). In August of this year, Mr. Wallace Campbell, Assist¬ ant Secretary of the Cooperative League, requested gen¬ eral information with respect to the mechanics of radio broadcasting and the purchasing of radio time. _ This information was furnished to him. Mr. Campbell did not request information with respect to the availability of any of our stations or disclose what programs he was considering. In the early part of September, Atherton & Currier, Inc., a New York advertising agency, requested information with respect to the availability of time for broadcasts sponsored by the Cooperative League over stations WCCO and WJSV. As is our custom, we advised Atherton & Currier that we would want an opportunity to examine a copy of the proposed program material before accept¬ ing an order for broadcasts on behalf of the Cooperative League. On September 22, 1942, Atherton & Currier forwarded a copy of the script which they proposed to use for the first League broadcast. A copy of Atherton & Currier’s letter of September 22, 1942, together with a copy of the script referred to therein, is enclosed. After a careful consideration of such information as we could obtain with respect to the Cooperative League, and after an examination of the script, we came to the con¬ clusion that in view of our long established policy not to sell time for programs devoted to public controversial issues, we could not accept an order for the Cooperative League’s broadcasts. We so advised Atherton & Currier on or about September 24, 1942. Our policy of refraining from selling time for the dis¬ cussion of public controversial issues is well known by users of radio and was incorporated in the Code of the National Association of Broadcasters at its annual con¬ vention in 19.39. For your information, we are enclosing an excerpt setting forth the provision of the NAB Code, together with excerpts from various prior statements on our part of that policy. This policy has, naturally, closed the door to large revenues for us. As Mr. Paley testified before the Interstate Commerce Committee of the Senate in June, 1941, we could have made tremendous sales of time to people who wanted to fight Congressional legis¬ lation such as the Public Utility Holding Company Act of 1935, and we have lost $9,000,000 in revenue because of our standards and policies. So that you may have the benefit of some of the docu¬ mentary evidence which led us to the conclusion that the Cooperative League is essentially an organization devoted to publicizing and promoting cooperatives as such and to advocating a change in our economic structure, we are enclosing various excerpts from the New York Times, together with excerpts from literature of the Coopera¬ tive League. Although as stated in our release of October 7, 1942, we felt that our long established policy, as well as the NAB Code, prohibited acceptance by us of the Cooperative League’s broadcasts, we naturally would accept a program sponsored by a cooperative engaged in the sale of goods which advertised the goods offered for sale. As a matter of fact. Station WCCO has in the past, carried several commercial series sponsored by the Land of Lakes Co¬ operative for the advertising of its butter, cheese and poultry products. Although the point is a minor one, even if broadcasts sponsored by the Cooperative League were acceptable to us in view of our policies, we could not accept the programs as proposed since the entire content would have to be counted as commercial and, as you know, we have definite limitations on the amount of commercial copy which may be broadcast in connection with any sponsored program. Sincerely, (S) Paul W. Keston.” October 22, 1942. Honorable T. J. Slowie, Seci-etary, Federal Communications Commission, Washington, D. C. Dear Mr. Slowie: This is in reply to your letter of October 14th, asking for information concerning the refusal of the National Broadcasting Company to sell time to The Cooperative League of the U. S. A. for the broadcasting of a program entitled “Let’s Get Together Neighbor.’’ Briefly, the facts are as follows: The representatives of The Cooperative League of the U. S. A. approached NBC in an endeavor to purchase time over stations WTAM, Cleveland and KDKA, Pitts¬ burgh only, and not over the NBC network. NBC is the operator of WTAM, and acts as national spot sales repre¬ sentative for the licensee of KDKA. The programs were to be rendered by means of electrical transcriptions. We were advised by the League that it is “a nonprofit, nonpolitical membership organization established in 1916 and is chartered under the laws of the State of New York. It is the national federation of consumer cooperatives comprised of twenty regional and national associations with one and one-half million family patron members in 46 states. . . . The league is financed by dues of seven and one-half cents per year for each individual member of associated organizations. Special activities like radio are financed by additional contributions of members and member associations. Our bank is Amalgamated Bank New York. National offices are maintained in Chicago, New York and Washington. Purpose of league is to coordinate national activities and to promote additional business and membership in existing co-ops and to en October 30, 1942 — 627