NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING ***** WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS C**yr<lht 1933, The National Association ot Broadcasters NRA * * * Vol. 1 No. 44 NOV. 18, 1933 BROADCASTERS’ CODE AWAITS SIGNATURE The Code of Fair Competition for the Broadcasting Industry still awaits the signature of President Roosevelt before it becomes binding upon the broadcasters. The code, revised by the NRA to meet some of the objections interposed by the labor and consumer advisory boards, was in final draft form on Friday night and Deputy Administrator Rosen¬ blatt was adding finishing touches to his report recommending government approval of the code. It was believed, however, that the code would not be approved by General Johnson and sent to the White House in advance of the President’s trip to Warm Springs, Ga. An official announcement made at NRA Friday stated that the President would sign codes during his stay in the South and after the broadcasters’ code receives General Johnson’s approval it is expected that it will be sent to Georgia for presi¬ dential approval. The code would become effective upon the second Monday following the date of approval. Immediately upon its signature by the President, official copies of the code will be made available to every broadcaster. DILL INTERESTED IN LINE RATES Senator C. C. Dill (D), Washington, chairman of the Senate Committee on Interstate Commerce, intends to make a survey of charges by telephone companies for broadcasting line purposes. In Washington during the past several weeks giving attention to a legislative program for the next session of Congress which con¬ venes on January 3, Senator Dill told Robert D. Heinl, Washing¬ ton newspaper correspondent, that he became interested in the telephone line problem during the summer months. “The net¬ works and stations each year spend millions for telephone line charges,” he said. “This runs up the cost of broadcasting and puts a terrific burden on the stations. The various states arc unable to secure hook-ups without large fees being exacted by the telephone companies and this is one of the greatest factors in the high cost of broadcasting.” Senator Dill favors the use of short waves for school broad¬ casting along the lines suggested by Commissioner Lafount some time ago. He said if a license fee is exacted on broadcasting stations a portion of this money should be used for the preparation of educational programs. He said he does not favor setting aside 15 per cent of all facilities in the broadcast band for education. Senator Dill expressed the opinion that any radio legislation enacted at the forthcoming session of Congress would be predi¬ cated upon the report and findings of the Roper Committee on Communications which has been giving study to the general com¬ munications problem for several months. It is understood that the Roper Committee has virtually com¬ pleted its work and is prepared to report to President Roosevelt. If the President approves the report it will be sent to Congress as a basis for legislation. The text of the report and its recom¬ mendations have not been made public. Senator Dill was a caller at the White House this week and it is understood that he discussed with the President the program for his Committee during the forthcoming session of Congress. KANSAS TAX ON BROADCASTING The Emergency Sales Tax Act of 1933, Senate Bill No. 164-X, introduced at the First Special Session of the Kansas Legislature by the Committee on Manufacturers and Industrial Pursuits, v'as on November 15th referred to the Committee of the Whole. This bill is similar to one in Oklahoma which became law earlier this year and is now under attack. It proposes a five per cent tax on the gross proceeds of sales of service in radio casting. Section 3 of the bill provides as follows: “There is hereby levied a tax in the amounts hereinafter set out upon the gross proceeds of sales as follows: (a) Upon all sales of tangible personal prop¬ erty consisting of goods, wares or merchandise, a tax of two per cent; (b) upon all sales of tickets or admissions to places of amusement and athletic events, a tax of five per cent; (c) upon all sales of electricity, electric light current, electric power, gas (natural or artificial) to domestic or industrial consumers thereof, a tax of three per cent; (d) upon all sales of service to telephone subscribers and others for the transmission of messages or conver¬ sation, whether local or long-distance, a tax of three per cent; (e) upon all sales of service for the transmission of messages by telegraph companies, a tax of three per cent; (f) upon all sales of service in radio casting, hiring, or renting of radio casting equipment or facilities, a tax of five per cent; (g) upon all sales of food, confections, or drinks prepared or compounded by hotels, restaurants, or other dispensers, served for immediate consump¬ tion upon the premises, or delivered or carried away from the premises for consumption elsewhere, a tax of five per cent.” The act further provides that the taxes shall be due and pay¬ able monthly, requires returns to be filed under oath, and gives the county treasurer authority to summon any person before him with his books and records for examination. The penalty for not paying the tax on time is double the amount of the tax plus ten dollars per day for each day it remains unpaid. Section 7 of the act provides that all sales which the state of Kansas is prohibited from taxing under the constitution or laws of the United States shall be exempt from taxation under the act. The act abolishes practically all real estate taxes except where outstanding bond issues are dependent upon them. If it becomes law it is to be effective December 1, 1933, and to expire Decem¬ ber 31, 1935. MISSOURI TAX PROPOSED A bill proposing a general sales tax on broadcasting, similar to the Oklahoma law, and the proposed Kansas law, has been intro¬ duced in the Missouri Legislature. The rate of the tax levied in the Ways and Means Committee substitute for Nos. 3-X, 4-X and 6-X is one-fourth of one per cent. The bill contains the usual saving clause in case of unconstitu¬ tionality; the customary section to prevent the seller from absorb¬ ing or claiming to absorb the tax; requires the filing of monthly returns ; and by its own limitation expires after two years. Section 3 of the act reads as follows: “For the privilege of selling tangible personal property at retail and/or furnishing or rendering the services hereinafter designated and/or defined, a tax is hereby imposed upon the person or persons as in this act defined at the rate of one-fourth of one per cent of the gross receipts of any such retailer from the sale of all tangible personal property, and/or furnishing the services hereinafter designated and/or de¬ fined sold in this state on and after December 1, 1933, or the effective date of this act, whichever is the latest, to and including December 31, 1935, such tax shall be paid at the time and in the manner hereinafter provided and shall be in addition to any and all other taxes; services upon which such tax shall be levied * Page 223 •