NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS ***** ^20,^3 Copyright, 1933, The National Associatioi of Broadcasters FOOD AND DRUGS LAW PROPOSALS A proposed draft revising the present Food and Drugs Act was completed this week and submitted to the Department of Justice for review, it was announced by Assistant Secretary of Agriculture R. G. Tugwell. The most important provision in the proposed draft is the ex¬ pansion of the Act to include cosmetics and to regulate advertising of foods, drugs, and cosmetics. The new draft does not propose censorship of advertising in advance of its use. However, under its provisions false advertising may be penalized by prosecution in the federal courts. Prosecution for false advertising will be directed against the source rather than against the medium in which it appears. This will put the respon¬ sibility for truthful advertising squarely upon the manufacturer, distributor, or dealer. The truth or falsity of advertising will be measured essentially by the same standards as those employed to determine the truth or falsity of label statements. The restrictions against adulterations have been strengthened, particularly in those instances where the public health is concerned. The requirements in regard to labeling have been broadened by the deletion of “jokers” in the present law and by providing for suffi¬ ciently full information so that purchasers may know just what they are buying. When traffic in foods, drugs or cosmetics of any kind may be inherently harmful to public health and cannot be adequately con¬ trolled by the other provisions of the bill, the Secretary is author¬ ized to place the manufacturers of such commodities under a license requiring the maintenance of sufficient safeguards. A provision in the new bill authorizes the Secretary to establish food standards having the force and effect of law. The absence of such a provision in the present law, except for the limited field of canned foods, has seriously impaired the effectiveness of control and made enforcement more expensive. The new bill defines as drugs, mechanical devices intended for the treatment of disease. It also regulates preparations and devices recommended for the correction of abnormal physical conditions which are not, strictly speaking, diseases. EUROPEAN RADIO CONFERENCE A conference of the governments of the European region was scheduled to convene at Lucerne, Switzerland, May IS, 1933, to assign frequencies to various European broadcasting stations. An attempt will be made to provide additional frequency assign¬ ments to European broadcasting stations, as provided by Article 7, Section 1, of the General Radiocommunication Regulations of Madrid. The European broadcasting organization, Union Inter¬ nationale Radiodiffusion, has prepared an extensive study of present conditions in Europe, and has formulated a plan whereby conditions may be improved by assignment of frequencies to broadcasting stations outside the portions of the spectrum set aside for such use at the Madrid conference, on a non-interfering basis. European broadcasting enjoys the use of low frequencies (less than 550 kc.) and the U. I. R. recommends further use of low frequencies for broadcasting purposes. It is possible that action contemplated or taken by the conference will occasion differences of opinion as to whether interference actually will result to other services. In view of the desirability of basing all communications, and particularly protests, of the United States Government, relating to the conference upon sound technical and engineering considerations, the State Department has requested the Federal Radio Commission to set up a committee of interested agencies to make recommenda¬ tions with respect to action that might be taken by the United States Government. The Federal Radio Commission has invited interested parties to attend a meeting to be held Monday, May 22. The National Association of Broadcasters will be represented in the conference called by the Federal Radio Commission, as in confer¬ ences concerning the forthcoming North American Regional Con¬ ference at Mexico City, by James W. Baldwin. Broadcasting interests in the United States are, of course, not affected directly by the European conference. The possibility exists, however, that a precedent may be set whereby broadcasting stations mav secure frequency assignments closer to frequencies allocated to marine traffic with ships at sea. American shipping interests and the Army and Navy, known collectively as the “Mobile Group,” are expected to follow the European conference delibera¬ tions closely in view of the similarity of the European problem to that which exists in North America. NORWAY TAKES OVER BROADCASTING Broadcasting in Norway is to be organized as a strictly govern¬ ment activity both as to technical phases and programs, according to the Electrical Equipment Division of the Bureau of Foreign and Domestic Commerce of the Department of Commerce. The gov¬ ernment is to take over the present broadcasting companies; the telegraph department is to be responsible for the technical construc¬ tion and operation ; administrative functions are to be directed by the department of trade; and the strictly program activities by the department of church and education. The first broadcasting station in Norway was completed in 1924. Most of the existing stations are owned by the Oslo Radio Broad¬ casting Corporation, and the few independently owned stations co¬ operate closely with the corporation. For several years there have been attempts at joint government and private control and studies and revisions of numerous proposals, and in January, 1933, a final plan was adopted. It is expected that government operation will start July 1, 1933. STATE TAXATION LEGISLATION Nineteen thirty-three legislation has produced several innovations in taxation. Some of these are almost impossible to classify as they cut across several fields of taxation. The so-called “Sales Tax” is one of these mixed taxes. Such taxes range from graduated taxes on gross sales, aimed primarily at the chain store, to a tax on all gross income which is very close to a net income tax. Usually the term “Sales Tax” describes a tax based solely on the sale of property. The term “Gross Income Tax” is used to describe a tax based on income and not limited to sales. This latter tax is often a sales tax plus a tax on income from other sources. The importance of these taxes can be seen from the following list of states which now have either sales taxes or gross income taxes which apply to sales. Arizona (gross income) Connecticut (unincorporated sales tax) Delaware (sales tax) Illinois (sales tax) Indiana (gross income) Kentucky (sales tax) Mississippi (gross income) New Mexico (sales tax) New York (sales tax) North Carolina (sales tax) North Dakota (gross income) Oklahoma (sales tax) Oregon (gross income-referen¬ dum) South Dakota (gross income) Utah (sales tax) Vermont (sales tax) Virginia (gross purchases) Washington (gross income) West Virginia (gross income) Illinois is listed above because it seems certain that a new sales tax will soon be passed to meet the objections which the Supreme Court of the State found in declaring the recent enactment un¬ constitutional. Only twelve State Legislatures remain in session out of the fortyfive that convened this year. » Page 49 •