NAB reports (Mar-Dec 1933)

tions under which such count could be undertaken was read. Since it would involve the expenditure of approximately $4,000.00 the Board felt the Association’s financial position would not warrant the incurring of such an obligation at this time. The new dues section of the By Laws approved at the White Sulphur convention and fixing the rate of dues at two-tenths of one per cent of net sales of broadcasting facilities was discussed. The Managing Director expressed the view that unless all stations joined the Association it might be necessary to curtail the activities of the Association during the next year. Several members of the Board disagreed with the statement that the income of the Asso¬ ciation would be reduced under the new schedule. It was decided that a study of the new dues system should be made during the first three months of the new year and a report made thereon to the Board. The new scale of dues becomes effective on December 31, 1933 and payments of dues for January are to be based upon December business. It was pointed out that hearings in Congress will be started on the Tugwell bill to revise the Food and Drugs bill on Decem¬ ber 7. The Board made provision for representation at the hear¬ ing and directed that the Association’s position as expressed at the White Sulphur Springs convention be expressed. EARLY APPROVAL OF CODE SEEN With the labor, industrial and legal departments of the National Recovery Administration in virtual agreement, it is expected that Deputy Administrator Sol A. Rosenblatt will present the Code of Fair Competition for the Broadcasting Industry to the President for approval within the next few days. The code, in its present form, provides for the creation of a Code Authority of nine persons with three Government represen¬ tatives, who shall serve without vote, all to be appointed by the President. The code will be printed by the Government just as soon as approved, and the NAB will send copies to the industry in its approved form. Last minute changes in the text of the code were directed to the style and uniformity of the code and do not materially change the substance of the draft as submitted by the NAB Code Com¬ mittee. A number of provisions, standard in all codes, were in¬ serted by the NRA prior to sending it to the President for approval. The report of James W. Baldwin, industrial advisor, raised questions of .license terms. He pointed out that the industry is faced with the situation where one branch of the government (the Federal Radio Commission) is licensing and regulating an industry and another branch of the government (The National Recovery Administration) is making decisions of the greatest importance to that industry’s economic existence and suggests the closest kind of cooperation between these two agencies. In his discussion of the matter, he said: . “This is a Federally licensed Industry, subject to rigid obliga¬ tions to serve the public interest. It should be pointed out that each of the 588 broadcasting stations must seek a renewal of its license to operate every six months; that in practice a great many owners of stations, at renewal periods, are faced with the necessity of prosecuting their applications against some one who seeks to take their radio facilities away from them. Often-times such applications are frivolous in character. Nevertheless, the licensee, in such cases, is compelled to engage technical and legal aid in order that he may prove his case at a formal hearing which is conducted by the Federal Radio Commission. Frequently, this is so where the Federal Radio Commission, over a period of several years, has found that the station was operated in the public interest.” “The cost of these proceedings is very great. It requires station owners, through no fault of theirs, to spend substantial sums for the services of expert radio engineers and lawyers, which other¬ wise could be used to engage a greater number of employes with benefit to programs rendered.” “The Radio Act of 1927 provides for license periods not exceed¬ ing three years (Sec. 9). While the Industry was being formed, there could be no question as to the wisdom of limiting license periods to short terms. Today, however, the state of the art, and the power of the Government to revoke licenses for violation of or failure to observe any of the restrictions and conditions of the Radio Act of 1927 or of any regulation of the licensing authority authorized by that Act or by a Treaty ratified by the United States, etc. (Sec. 14), make short-term licenses unnecessary. In view of the commitment now being required of every broadcaster under the terms of the National Recovery Act, it is a manifest injustice that this Industry should be compelled to measure the existence of every one of its component parts in terms of not more than six months. As a definite part of the National program of recovery and increased stability and confidence, the Broadcasters are clearly entitled to the full term of license provided by Con¬ gress in the Radio Act of 1927. I cannot recommend that the Radio Broadcasting Industry be required to make additional fixed and permanent commitments unless it first can be given the full measure of protection provided by law.” EIGHT NEW NAB MEMBERS The Board of Directors at its meeting in Washington on November 9, 1933, approved applications for membership from eight stations. This brings the membership to 282, which is very nearly half of, the broadcasting stations in the United States. The new members are the following: KGGC, San Francisco, Calif. WFBC, Greenville, S. C. KTAB, San Francisco, Calif. KRSC, Seattle, Washington. WABI, Bangor, Maine. KTBS, Shreveport, La. WGBF, Evansville, Ind. W2XR, New York, N. Y. W2XR is the first television station to apply for membership. It is operated by Radio Pictures, Inc., of which John V. L. Hogan is President. WTAG POWER INCREASE APPROVED The Radio Commission this week partially upheld Report No. 489 of former Chief Examiner Ellis A. Yost in the case of Sta¬ tions WTAG, Worcester, Mass., and WOBU, Charleston, W. Va. The stations asked that their power be increased to 500 watts day and night. A preliminary order was issued by the Commission granting temporary special authority to Station WOBU to operate stations WTAG and WOBU With 500 watts power during day and night hours subject to special conditions imposed by the Commission. These conditions include the fact that the Commission reserves the right to terminate the 250 watt nightime power at any time with¬ out hearing and that the regular licenses of the stations shall con¬ tinue in full force and effect for the time specified. PHILADELPHIA STATIONS DENIED POWER BOOST Application of Stations WIP, WFI, and WLIT, all of Philadel¬ phia, for an increase in their power from 500 to 1,000 watts was denied this week by the Radio Commission, upholding Examiner George H. Hill in his Report No. 497. In its decision the Commission found that if the power in¬ creases were granted that it would be likely to cause increased interference, and that the public interest “would not be served by the granting of any one of the three applications involved herein.” DENY TIME INCREASE TO WHDH The Radio Commission on Friday sustained Examiner George H. Hill in his Report No. 502 by denying the application of Station WHDH, Boston, a modification of license to operate unlimited time on its frequency of 830 kilocycles. The Commission found that it “does not appear that there is a substantial need in Boston and vicinity for the additional service which the applicant proposes to render.” KWKC DENIED UNLIMITED HOURS Station KWKC, Kansas City, Mo., using a frequency of 1370 kilocycles, applied to the Commission for an increase in operating time from specified hours to unlimited time. In Report No. 521 this week, George H. Hill, e, recommends that the application be denied. • Page 220 •