NAB reports (Mar-Dec 1933)

Section 8 of the bill as reported to the Senate prescribes the rules governing the advertising of securities as follows: “It shall be unlawful to carry, transmit, or cause to be carried or transmitted, in interstate commerce, by use of the United States mails or by any means or instruments of transportation or com¬ munication, any written, printed, or other graphic communication or document, or any radio communication, announcing, offering, or advertising for sale any securities subject to the provisions of this Act, unless such communication or document contains the fol¬ lowing information concerning the security so offered: “(a) The name of the issuer and names of the underwriting syndicate, if any, amount of capitalization authorized and paid up, location of principal place of business, and, if incorporated, place of incorporation. “(b) A brief description of the security offered, including the amount of the issue, a description of its rights with reference to dividends or fixed returns and voting power and relative position with reference to other outstanding securities having prior rights which must be specified as well as the amount of capital stock and other securities, commissions, discounts, rebates, and bonuses. “(c) The price at which it is offered to the public and the net amount to be returned to capital investment, as well as the maxi¬ mum amount of commission or other form of remuneration to be paid in cash or otherwise, directly or indirectly, for or in connection with the sale or offering for sale of such securities. “ (d) The owner of the property constituting the basis of the issue. “(e) A statement showing — (1) The issuer’s assets and liabilities. (2) Profits and losses during year immediately preceding the offering. “(f) A statement to the effect that additional information may be secured from the Federal Trade Commission at Washington, District of Columbia : Provided, that in any case where, by reason of limited size of such written, printed, or other graphic or radio communica¬ tions, it is impracticable to set forth all the foregoing information, there shall be set forth such parts thereof or such other information as the Commission may by rules or regulations prescribe in the inter¬ est of the protection of the public and for the prevention of false or deceptive representations in the offer for sale or sale of such securities in interstate commerce or by use of the mails: Provided further, that any written, printed, or other graphic communication or document, or any radio communication, announcing, offering, or advertising for sale any securities offered by a foreign govern¬ ment or political subdivision thereof shall contain such information of the character referred to in the registration statement, or such additional information, as the Commission may prescribe by rules or regulations in the interest of the protection of the public and for the prevention of false or deceptive representations in the offer for sale or sale of such securities in interstate commerce or by use of the mails. “The information referred to in this section, when written, printed, or otherwise graphically expressed, shall be placed in a conspicuous part of all communications, documents, or other litera¬ ture describing or mentioning the securities advertised or offered for sale. Copies of all such written or printed or other graphic com¬ munications or documents, as well as transcripts of all radio adver¬ tising, referring to the sale of securities subject to the Drovisions of this section shall, before distribution of such communications to prospective purchasers is begun, be filed with the Commission together with a reference to the original registration of the securities so offered. “A statement containing the information required by this section shall also be delivered to each purchaser with the delivery of the security or securities to which it relates, whenever the security is sold by the issuer, or by his or its agents or representatives. “The information required under the provisions of this Act con¬ tained in all registration or other statements, copies, prospectuses, advertisements, circular letters, and communications, and other documents shall be made available to the public under such regula¬ tions as the Commission may prescribe.” POST OFFICE FAN MAIL RULING Extending its previous holding, the Post Office Department has ruled that fan mail under certain conditions may be forwarded to the advertiser outside the mails and without the payment of firstclass postage. The following questions were submitted by the attorneys for Station WGN, Chicago, Ill., to the Post Office Department for answer: “1. Suppose WGN delivered mail to the Chicago office of the advertising agency handling the advertiser’s account, could the agency after opening and tabulating the letters forward them to the advertiser by express? Would it make any difference in this situation if the letters were unopened prior to being forwarded to the advertiser ? “2. In some cases the advertising agency handling the adver¬ tiser’s account has an employee stationed in the main office of the advertiser. Suppose WGN delivered the mail unopened to the advertising agency in Chicago and the advertising agency expressed such mail to its employee in the advertiser’s main office who, upon receipt thereof would turn it over to the advertiser unopened. This is a bona fide arrangement between advertiser and agency now pre¬ vailing on numerous accounts. It would seem that under these con¬ ditions a package of mail sent by express does not have the character of ‘letters’ within the purview of the private express statutes. “3. Suppose that the advertiser had a branch office of its own in Chicago, could such a branch office forward mail delivered to it by WGN to the advertiser's main office by express? “4. Suppose WGN used the branch offices of the Chicago Tribune as forwarding headquarters, could the mail be sent by express to such offices and then turned over to the advertiser or advertising agency? This situation appears to be analogous to that involved in the Department’s prior rulings on the subject.’’ The answers made by the Post Office Department, under date of March 16, were as follows: “With regard to Mr. Scharfeld’s first query, viz., whether the fact that the previous rulings of the Department relating to fan mail were rendered in response to requests of chain stations would have any bearing upon the matter or whether such rulings would apply with equal force in the case of independent or non-chain stations, the answer is that no distinction is made between the two classes of stations. The issue in all such cases is the same: whether the matter proposed to be forwarded outside the mails falls within the category of ‘letters’ within the meaning of the private express statutes. “Responding to Mr. Scharfeld’s specific inquiries, his first question is whether WGN might deliver mail to the Chicago office of the advertising agency handling advertisers’ accounts which would open and tabulate the letters and forward them to the advertiser by express. This plan would be objectionable. The second part of the first inquiry is whether it would alter the situation if the letters were unopened prior to being forwarded to the advertiser. The answer is yes. If the letters are not to be opened prior to the time they reach the advertiser, they may be sent by express or by fourth class or parcel post rates. “The second, third and fourth inquiries all involve similar meth¬ ods of procedure. It does not matter whether the fan mail is handled by an advertising agency, a branch office of the advertiser, or a branch office of the broadcasting station or the newspaper which owns same. If the fan mail is to be opened by some person before it reaches the advertiser, it may not be sent outside the mails to such person without payment of postage. If, on the other hand, it is handled one time or several times before it reaches its ultimate destination, viz., the office of the sponsor of the program, but is not opened by anyone before it reaches such sponsor, it may be sent otherwise than by ‘letter’ without violation of the private express statutes.” COMMISSION POSTPONES 1430 KC. HEARING The hearing previously scheduled for May IS, 1933, involving the applications of WHEC, Rochester, N. Y. ; WOKO, Albany, N. Y. ; WHP, Harrisburg, Pa.; WCAH, Columbus, Ohio; and WFEA, Manchester, N. H., for licenses authorizing continued use of 1430 kc. channel with full time has been postponed indefinitely. Special temporary experimental authorization to operate un¬ limited time and simultaneously was granted to these stations, pend¬ ing a decision on the hearing but not continuing later than November 1, 1933. WJSV SPECIAL AUTHORITY CONTINUED WJSV, Washington outlet of the Columbia Broadcasting System, was granted special experimental authority to operate for a period of 90 days from May 1, at its present transmitter location on the Mount Vernon Highway. WJSV has installed a directional antenna system to minimize interference claimed to exist at the Naval Research Laboratory, without disturbing its Washington coverage. FEDERAL RADIO COMMISSION ACTION HEARING CALENDAR NEW — WBEN, Inc., Buffalo, N. Y. — Application for CP for new visual broadcasting station to use 20 watts, unlimited time, on 43000-46000, 48500-50300, and 60000-80000 kc. will be heard Tuesday, May 2, at 10 a. m. 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