NAB reports (Mar-Dec 1933)

WORK ON BROADCASTERS CODE General Hugh S. Johnson, administrator of the NRA, was ad¬ vised on August 1 by the Managing Director that the NAB “is now at work developing a code for broadcasters.” “President Alfred J. McCosker has appointed a committee which has addressed a questionnaire to all broadcasters with a view to obtaining information upon which a code will be drafted for sub¬ mission to the NRA,” the letter states: “Every effort will be made to have the code agreed upon and ready for submission at the earliest possible date.” Questionnaires mailed to all stations on July 31 are pouring in to NAB headquarters and information contained therein will be used as the basis for the broadcasters’ code. There is no need to stress the importance of each station supplying the information re¬ quested at the earliest possible date. Stations are cooperating generously in making the publicity campaign successful and the drafting and filing of a code are essential to make broadcasting’s compliance with the letter and spirit of the law complete. CODE PROCEDURE OUTLINED BY NRA Procedure by which the National Recovery Administration plans to expedite the progress of Codes of Fair Competition from sub¬ mission by the affected industries through public hearings and to final approval by the President was made public on July 31. The major steps through which a code will pass, outlined by John M. Hancock, the administration’s executive officer are sub¬ stantially as follows: “Application for approval of a code must be made by a trade association or other group within the industry. “Following its presentation in behalf of an industry by the trade association, a code will be studied to determine that the association sponsoring it is truly representative of the industry. That having been determined, the code will be forwarded to a code analysis division for a quick examination. In this division the constitution and by-laws of the trade association will be ex¬ amined to make sure that there are no inequitable restrictions as to membership and that the association method of levying dues does not discriminate against smaller producers in the industry. “The code will then be examined for its general form and con¬ tinuity of provisions. Each code must contain certain provisions required by law or by executive order, such as those guaranteeing the right of collective bargaining and banning child labor. “The code also will be examined to determine whether any pro¬ visions are in conflict with any policy of the Administration. “The examiner then will prepare a letter containing suggestions as to changes in form or content of the code or of the trade asso¬ ciation’s constitutional by-laws. This letter, having been approved by the control division, it will be sent to the trade association. At the same time copies of the letter will be sent to members of the Industrial Advisory Board, the Consumers Advisory Board, the Labor Advisory Board, the Legal Division, Planning and Research and the deputy Administrator to whom the code ultimately will be assigned for hearing. Up to this time one man may represent an industry. “Conferences will then be scheduled between the trade association representatives and as many men from the industry as it may wish with deputy administrator. The conferences will be participated in by an industrial adviser, consumer adviser, labor adviser, a mem¬ ber of the legal staff, a member of the research and planning staff and a code analyst. “Necessary revisions developed as a result of the conferences will be reported to the trade association for its approval. These revisions having been adopted or rejected by the association, the code will be ready for public hearing. “Notices of the public hearing will be sent to trade publications and will be posted on the bulletin boards of over 1,100 first-class post-offices throughout the country. “The Administrator, the public hearing having been concluded, will prepare a report to the President, the report to include the code as finally proposed, a copy of the notice of hearing, a state¬ ment procedure followed, a statistical analysis by the research, and planning division, a transcript of the public hearing record and a copy of the deputy administrator’s report. “The final step is approval or disapproval of the code by the President and issuance of the necessary executive order by the President if he approves the Administrator’s report.” N. A. RADIO CONFERENCE DEADLOCKED Advices from the State Department indicate that the North American Radio Conference, in progress in Mexico City since July 10, has reached an impasse. While little official information has seeped from the sessions of the Mexico City conference, it is understood that Mexico is seeking 12 clear channels and that the U. S. Delegation has taken the view that this demand exceeds the actual needs of Mexico. Whether or not an eleventh-hour attempt to break the deadlock, which is understood to have existed for two weeks, will succeed is problematical. It is being predicted in Washington that the con¬ ference is likely to adjourn in the near future unless some basis for agreement can be found. At the present time there seems to be little hope for agreement. An indication that residents of Mexico are becoming more radiominded is seen in the recent inauguration of a new and powerful broadcasting station in Mexico City, according to a report from Acting Commercial Attache Robert G. Glover, Mexico City, made public by the Department of Commerce. The new station, built and owned by the “El Buen Tono” (cigar¬ ette factory), commenced broadcasting on July 23. According to the Commerce Department’s Electrical Equipment Division, the station, with 40,000 watts at the antenna, is one of the most power¬ ful stations in Mexico. MOVIE GROUPS MUST WORK TOGETHER The motion picture industry was admonished this week that it must work together in a telegram sent to various groups by Deputy Administrator Sol A. Rosenblatt. “The motion picture industry, presently divided into groups and factions, must com¬ pose its differences and units so far as possible to submit a code at the earliest moment,” Mr. Rosenblatt stated in his telegram. “I understand that various groups are working separately. They must work together.” Mr. Rosenblatt has been assigned to codes to be presented by the music publishers, theaters and the legitimate stage, broadcast performers, authors, opera, circus, burlesque, vaudeville, and carni¬ vals. Deputy Administrator Kempt has been assigned to the codes to be presented by the newspapers and magazines while Deputy Ad¬ ministrator Whiteside has been assigned to advertising codes and to coordinate the advertising features with Deputy Kempt. There has been no definite assignment with respect to the pro¬ posed broadcasters code although such an assignment will un¬ doubtedly be made shortly. NON-MEMBERS URGED TO COOPERATE In dealing with industries submitting codes, officials of the NRA are urging each business unit to cooperate with the trade associa¬ tion representing its industry. Such cooperation not only expedites action, which is important, but makes for better representation of the industry involved. The NAB, in drafting and submitting a code, will represent the broadcasting business but this representation can be more effective from every point of view if every station joins up and does its part. Nothing would be more beneficial to the broadcasters and more helpful to the NRA than if all 610 licensed stations joined together in a single body under the NAB and worked cooperatively toward the achievement of the letter and spirit of the National Recovery Act. In an effort to perfect the broadcasters’ organization, the NAB at St. Louis, last November, reduced to $60,00 a year dues for stations whose gross business during the 12-month period im¬ mediately preceding December 1, 1932 did not exceed $30,000.00. It is estimated that about 200 stations will fall within this classi¬ fication. With a view to perfecting the organization, the NAB, through its membership committee, is embarking upon a nationwide mem¬ bership campaign. It is hoped that every station, large and small, education and commercial, will join up and cooperate in making the broadcasters’ part in the recovery campaign effective. POWER TAX REMOVED SEPTEMBER 1 Commissioner of Internal Revenue Guy T. Helvering on August 1 issued a statement officially declaring that the electrical energy tax imposed under the Revenue Act of 1932 shall after September 1 be lifted from domestic and commercial users of power and placed upon the vendor. The NAB, at the time of passage of the Revenue Act of 1932, obtained a ruling from the Internal Revenue Bureau classifying broadcast stations as commercial unders of power and under this ruling it would seem that broadcast stations would not be required to pay the electrical energy tax after September 1. The August 1 ruling of the Commissioner of Internal Revenue follows in full text: • Page 107