NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING * * * * * WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS ★ .NRA * m * ★ Vol. 1 No. 46 NOV. 27, 1933 Copyright. 1933. The National Association of Broadcasters THE CODE— A CHALLENGE The purpose of the Broadcasters’ Code is to aid in elimi¬ nating from the Broadcasting Industry destructive and un¬ fair practices, to bring about higher wages, shorter working hours, better living conditions for employees, to place the industry upon a sounder basis and to enable it better to render a public service. When President Roosevelt signed the National Industrial Recovery Act on June 16 he characterized the new law as “a challenge” to industry which, he said, has long sought the right to self regulation. Always mindful of their obligation to the public, broad¬ casters willingly and generously extended their facilities in order that the American people might be fully informed of the progress of the President’s recovery program. They have cooperated with the National Recovery Administration by reducing hours of work and by increasing wages in keeping with the spirit of the President’s reemployment campaign. And now, by adopting the Code of Fair Competition for the Broadcasting Industry, approved today by President Roosevelt, they give further testimony of their complete support of the recovery program. The Broadcasting Industry accepts the “challenge.” BROADCASTERS’ CODE APPROVED President Roosevelt on November 27 approved the Code of Fair Competition for the Broadcasting Industry and its provisions be¬ come applicable to every broadcasting station in the United States on December 11. The signing of the Broadcasters’ Code took place at Warm Springs, Ga., during the week-end visit there of General Hugh S. Johnson, National Recovery Administrator. Official prints of the text of the Code will be available for dis¬ tribution within the next few days. These will be punched for insertion in the NAB Handbook. CODE AUTHORITY APPOINTED At the time the President signed the Code, he appointed as mem¬ bers of the Broadcasters’ Code Authority the following: James W. Baldwin, former Secretary of the Federal Radio Com¬ mission; Isaac Z. Buckwalter, WGAL, Lancaster, Pa.; John Elmer, WCBM, Baltimore, Md.; James Kiernan, WLWL, New York, N. Y.; Alfred J. McCosker, WOR, Newark, N. J.; Edward M. Nockels, Secretary of the Chicago Federation of Labor; M. R. Runyon, Treasurer of the Columbia Broadcasting System; Frank M. Russell, Vice President of the National Broadcasting Company; John Shepard, III, President of the Yankee Network. The Code provides that there shall be named three representa¬ tives of the Government in addition to the Code Authority. It is expected that these representatives will be named within the next few days. The first meeting of the Code Authority will be held on Monday, December 4, at Washington, D. C. A complete analysis of the wage and hours provisions of the Code as approved precedes a copy of the President’s Executive Order in this report. MAY ADOPT PERMANENT CODE Under the rules of the NRA all stations (subject to the provisions of Article V, Paragraph S) may immediately adopt the provisions of the Broadcasters’ Code. The entire industry, however, will be under the Code effective December 11. Each provision in the Code has the full effect of law and viola¬ tions are subject to the penalties contained in the National Indus¬ trial Recovery Act. PROPOSED CODE IS REVISED The Code of Fair Competition proposed by the NAB on August 29, copies of which were sent to all broadcasters, was subjected to extensive revision before it was given Presidential approval. While a number of these were insisted upon by the various divisions of the NRA, the most important resulted from objections by labor groups interposed at the public hearing held in Washington on Sep¬ tember 27. Following the hearing conferences were held almost daily between representatives of the NRA, labor, and the NAB. Each provision in the Code, as finally revised, was the subject of exten¬ sive discussion, and in many instances the final wording was either the result of compromise or decision by the NRA after objection by one or the other of the groups participating in the conferences. SEVERAL ISSUES UNSETTLED Several important issues could not be decided and for that reason provisional clauses were inserted in the Code. It was held that the NAB, although it represented 283 stations and 83 per cent of the total volume of radio advertising, was not sufficiently rep¬ resentative of the broadcasting industry to take over administration of the Code. It was necessary, therefore, for the President of the United States to name a temporary Code Authority to administer the Code until such time as the NAB can sign as members at least 70 per cent of all stations. The NRA found, however, that the NAB does not impose inequitable restrictions upon membership and it is the hope of officials of the NRA that NAB membership will be increased within the next 90 days to a point where the in¬ dustry can take over complete administration of its own Code. NAB MUST INCREASE MEMBERSHIP It is the policy of the NRA that existing trade associations strengthen their position and regulate their own industries. At the same time it was made clear in an official statement by General Johnson last week that the Government will not hesitate to step in and administer the Code if the broadcasters fail to fall in line behind the NAB. The Code Authority appointed by the President is under an injunction to recommend a permanent Code Authority at a future date. This was done for the purpose of enabling the NAB to strengthen its membership under its new Constitution and By-Laws, which provide a system of dues based upon two-tenths of one per cent of net sales of broadcasting facilities. SIGNATURES WILL BE REQUESTED It is expected that the NRA will require the Code Authority to obtain the signatures of all stations to the Code in its approved form. The request will go forward just as soon as the Code Author¬ ity has had an opportunity to organize and get into action. LICENSE QUESTION UNSETTLED The question of extending station license terms to the full period granted by the Radio Act of 1927 was raised by the NAB early in the Code proceedings. Although expressing sympathy with the industry’s position, officials of the NRA quickly pointed out that • Page 233 •