NAB reports (Mar-Dec 1933)

so-and-so, when the manufacturer knows that in fact they are something else. When, however, legislation seeks to control the expression of opinion, or to set up a standard of absolute truth that is quite beyond the reach of the human mind, it is making the violation of its provisions inevitable and universal. A strict interpretation of the bill as it stands would destroy the entire advertising business of the United States; a liberal (i.e., lax) interpretation would lead to hopeless confusion. “The second group of criticisms (Points 3 and 4) concerns the proposed administration of the bill. The primary object of any such legislation should be the protection of the public by making clear to advertisers what they may and may not legally do. The method of administration here set up appears completely to defeat this purpose. “Although reference has here been made to specific sections of the proposed bill, the objections raised to these sections apply likewise, though less directly, to other features of it, and there¬ fore it is on the broad, general grounds herein outlined that the Broadcasting Industry has recorded itself as protesting against the enactment of the legislation unless on the basis of many and farreaching changes therein.” John Benson, president of the A. A. A. A., appeared in opposition to the bill arguing that advertising was salesmanship in print and that a continuance of a reasonable amount of puffing should be permitted. Among those opposing the bill were Dr. J. H. Beal of Florida, chairman of a committee of drug trade officials and representa¬ tives of Squibb Drug Co., the confectioners, proprietaries, retail druggists, New York Board of Trade, Association of National Advertisers, Associated Manufacturers of Cosmetics, National Edi¬ torial Association, U. S. Medicine Manufacturers, Drug Institute of America and the National Canners Association. The argument in favor of the bill was closed by Professor David A. Cavers of Duke University who assisted Professor Tugwell in the drafting of the bill. After repeated attacks upon the bill that it was inconsistent with the spirit of the NRA, a representative of the Consumers Board and a representative of the Department of Labor appeared to refute such statements. A large number of amendments were submitted and these will receive consideration of the sub-committee before reporting the measure to the full committee. It is expected that the full com¬ mittee will report the measure in amended form to the Senate early in January. NRA RADIO CODE EFFECTIVE MONDAY The Code of Fair Competition for the Broadcasting Industry becomes operative on Monday, December 11, and the operations of all stations throughout the country become subject to its pro¬ visions. Official prints of the code became available on Thursday and copies were sent to all stations. In addition, NAB members will be sent a copy of the National Industrial Recovery Act and a copy of the code suitably punched for insertion in the NAB Handbook. It is expected that the Code Authority will issue its general rulings in printed form and that these likewise will be punched in a similar manner. The Code Authority appointed by President Roosevelt to ad¬ minister the code until such time as the industry places itself in a position to regulate itself by broadening the membership of the NAB, will hold its first official meeting on December 11 in Wash¬ ington. The first order of business will be the election of a chair¬ man, vice chairman and a director to carry on the administrative work in connection with the code. Attention also will be given to the investigations which the Code Authority is required to undertake under the code. Just as soon as the Code Authority is organized it will consider petitions for exceptions which have already been filed. SUPREME COURT REFUSES KFAB REVIEW The Supreme Court of the United States on Monday, December 4, refused to review the KFAB libel case. The refusal was based on jurisdictional grounds. The case involved the liability of a broadcasting station for defamatory matter uttered in the course of an address delivered on behalf of a duly qualified candidate for public office. The Supreme Court of Nebraska held that Station KFAB, Lincoln, Nebr., was liable for utterances made by a ■ Page speaker in the course of a political address, reversing the lower court which had held the station not liable. The station had alleged that it was not liable because Section 18 of the Radio Act of 1927 expressly prohibited censorship of political speeches. The refusal of the Supreme Court of the United States to review the Nebraska Supreme Court’s decision leaves the latter decision as the law within the state of Nebraska. The Supreme Court of the United States announced its refusal to review the case without a written opinion. ROPER COMMITTEE FINISHES TASK The Interdepartmental Committee on Communications under the chairmanship of Secretary of Commerce Roper has completed its study and will transmit its report to the President within the next few days. The report was in the hands of the chairman on Friday, December 8. The recommendations contained in the report have not been made public and it is not known at this time whether or not the President will utilize the report in making recommendations to the Congress. Whether the President will ask the Congress for legislation re¬ lating to radio, telephones, telegraphs and cables is not known although it is reliably reported at this time that the President has not given serious consideration to such a request. NEW DUES SCHEDULE JANUARY 1 The new schedule of NAB dues, adopted at the White Sulphur Springs convention of the Association, becomes effective on January 1, 1934. The new By-Law No. 1, as adopted by the Association, reads as follows: “(a) After January 1, 1934, the monthly dues of the members of this Association shall be at the rate of two-tenths of one per cent of net sales of broadcasting facilities during the last previous month; provided, however, that no member shall pay less than $2. SO per month. Dues shall be payable on or before the fifteenth of each month and shall be accompanied by a certified statement of the net sales of broadcasting facilities during the preceding month. “(b) The annual dues of members of this Association who do not own or operate radio broadcasting stations shall be at the rate of two hundred and fifty dollars per year, payable quarterly in advance.” The above By-Law was drafted in accordance with the resolu¬ tion adopted at the St. Louis Convention and was adopted after discussion during the White Sulphur Springs meeting. In line with the new provision the Managing Director will send to each member a form of statement to be filled in by the member instead of a bill as has been the practice. January dues will be based upon December business. The practice of basing dues upon volume of business has been followed by many successful trade organizations and now finds support in the standard provision required in all NRA codes. Article VI, Section 8 of Code of Fair Competition for the Broad¬ casting Industry, which is a standard form of provision insisted upon by the NRA, sanctions the method of assessing dues adopted by the NAB. DEPRECIATION RATES FOR TAX PURPOSES Following the recent conference between officials of the Internal Revenue Bureau and E. M. Elkin, chairman of the NAB Tax Com¬ mittee, and Managing Director Loucks, Deputy Commissioner Charles T. Russell of the Bureau has requested from the NAB certain data and information to assist it in determining rates of depreciation allowable for income tax purposes upon buildings and equipment of radio broadcasting stations. The NAB has agreed to assist the Bureau in collecting this in¬ formation and the NAB Tax Committee will hold a meeting for this purpose at an early date. The meeting will be open to all members who will furnish helpful information. In the Bureau’s communication to the NAB the following data is requested: “1. A statement showing the various groups or classes of equip¬ ment which have approximately the same length of serviceable life, and the relative amount or the percentage that the cost bears to the total cost of equipment in use in the ‘average’ station. 246 ■