NAB reports (Mar-Dec 1933)

Such facts as have been presented this office indicate that this equipment may be divided into four groups, viz., studio apparatus, speech in-put, transmitter equipment, and antenna equipment not including towers, but if in your opinion a different grouping is advisable, or if subdivisions should be made of any of these groups, your opinions on these questions will be appreciated. “2. If, in your opinion, the serviceable life of the buildings oc¬ cupied as radio broadcasting stations will be either greater or less than the life of buildings of the same types of construction in other industries, such facts as will establish the correctness of that opinion should be presented, keeping in mind, however, the fact that unusual conditions which affect individual stations can¬ not be given consideration in the proposed general basis unless such unusual conditions are shown to apply to buildings of radio broadcasting stations in general, and also keeping in mind the question of whether discontinuance of the use of a building for broadcasting purposes will result in a total loss of the investment in the building or whether such an ‘average’ building may be used for other purposes. “3. The estimated physical life of each class of equipment should be shown, entirely aside from any consideration that may be given its length of life as the result of normal progress of the art. “4. Such facts and data as can be secured, regarding the proba¬ bility of future improvements in equipment that will require the replacement of items now in use, should also be furnished, again bearing in mind that the replacement of the equipment now in use prior to the end of its physical life because of future improvements cannot be assumed merely because it is probable that such improve¬ ments will occur, and that before any very great weight can be given this factor, it will be necessary that fairly definite evidence be furnished that such improvements will occur; it being con¬ sidered that the history of the industry during the last few years should be fairly indicative of the future. “5. The rates of depreciation allowable will obviously depend to a great extent upon the method of accounting followed regard¬ ing the costs of small replacements, and the character of such re¬ placements charged to capital account and to expense, respectively. Consideration must also be given the question of whether losses are to be allowed on items, the cost of which has been charged to capital account and which are discarded prior to the end of their estimated serviceable life, or whether the cost of these items is to be recovered entirely through the rates of depreciation al¬ lowed.” The Bureau now has under consideration a number of individual cases, decision in which is being withheld pending a decision on the question of allowable rates. It is urged that the information be compiled at the earliest possible date. It is suggested by the Bureau that the actual history of several stations that have been in operation for several years would be helpful in considering the question, the date to include (a) the original cost of each class of depreciable assets and the year installed; (b) the cost of each subsequent year’s additions; (c) the cost of items retired each year (which were previously charged to capital account) and the year in which the discarded items were originally installed; (d) the rates and amounts of depreciation allowed for income tax purposes in each prior year ; (e) the amount taken each year as expense deductions as the cost of maintenance, repair and re¬ placements, and (f) the amounts, if any, which have been al¬ lowed in each prior year as losses on discarded items. The Bureau, upon conclusion of its consideration of the question of allowable rates, intends to publish an official bulletin on the subject. F. R. C. CONSIDERS LIQUOR QUESTION The Federal Radio Commission has referred to its Legal Division the question of the legality of liquor advertising by radio. The Commission’s attorneys have been in communication with the De¬ partment of Justice and the Post Office Department and it is expected that a report on the subject will be forthcoming at a future date. In the meantime the Commission is withholding any official expression on the subject. Section 5 of the act of Mar. 3, 1917 (39 Stat. 1069), as amended by the act of Mar. 4, 1917 (39 Stat. 1202), and by section 1407 of the act of Feb. 24, 1919 (40 Stat. 1151), and by section 17 of title II of the act of Oct. 28, 1919 (41 Stat. 313), (18 U.S.C. 341 and 18 U.S.C. Supp. VI 341), and by section 1110 of the act of Oct. 3, 1917 (40 Stat. 329) (18 U.S.C. 342), and by section 3 (c) of the act of Mar. 22, 1933 (48 Stat. 17) (27 U.S.C. 64 b), provides among other things that advertisements of or solicitations of orders for intoxicating liquors shall not be mailed to any place or point in any State or Territory of the United States at which it is by the law in force in the State or Territory unlawful to ad¬ vertise or solicit orders for such liquors. The following States and Territories are affected by the said act, effective upon the repeal of the Eighteenth amendment on Dec. 5, 1933: States and Territories the laws of which prohibit both the ad¬ vertising of and solicitation of orders for intoxicating liquors: Alabama, Alaska, District of Columbia, Florida, Georgia, Hawaii, Idaho, Maine, Michigan, Mississippi, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, Puerto Rico, South Carolina, Texas, Virgin Islands, Virginia, and West Virginia. States the laws of which prohibit advertising but do not refer to solicitation of orders: Missouri, South Dakota and Utah. States which prohibit solicitation of orders: Arkansas, Minne¬ sota, New Hampshire, Tennessee, and Vermont. The following States are affected as indicated: Connecticut: Prohibits solicitation of orders in towns which forbid sale of liquor under local option clause of Liquor Control Act. Delaware: Prohibits advertising except in newspapers or other periodical publications or by radio. Indiana: Permits solicitation of orders by holders of permits issued by State Excise Department. The following States have statutes which provide for local option: Maryland, New Mexico, and Washington. SECURITIES ACT REGISTRATION The following companies filed registration statements with the Federal Trade Commission under the Securities Act during the current week: Protective Committee for holders of bonds of Atlantic City and Atlantic County, N. J., New York City (2-455). Same (2-456). Greenebaum Sons Investment Company and Percy Cowan, Chicago, Ill. (2-458). Oak Ridge Fur Farms Company, Inc., Dover, Del. (2-457). Protective Committee for Valspar Corporation, New York City (2-459). American Participations, Inc., Springfield, Mo. (2-464). Asphalt Vault Company of America, Baltimore, Md. (2-466). Paul A. Flickinger and others, Reading, Pa. (2-462). Continental Sugar Company Bondholders’ Protective Committee, New York City (2-465). Bondholders Committee for Metropolitan District Finance Com¬ pany, Chicago, Ill. (2-463). Greenebaum Sons’ Investment Company and Percy Cowan, Re¬ organization Managers, Chicago, Ill. (2-468). Premier Brewing Company, Middletown, Ohio (2-467). Producers Development Syndicate, Shelby, Mont. (2-461). Thomas A. Tunney and others, New York City (2-460). MISSOURI TAX BILL KILLED The proposed sales tax of one-fourth of one per cent on “radio casting,” which was introduced in the Missouri Legislature by the House Ways and Means Committee, as reported on November 18, 1933, in No. 44 of the NAB Reports, was killed in the House on November 28, 1933. COORDINATOR REQUESTS ASSISTANCE The Federal Coordinator of Transportation has requested all broadcasting stations to aid in solving the Government’s trans¬ portation problem by filling in a “Passenger Ballot,” copies of which were sent to every station. The Federal Coordinator of Transportation has requested the NAB to assist in this under¬ taking by urging that all NAB members give prompt attention to the ballot. Members are urged therefore to fill out the ballots and return them to Coordinator Joseph B. Eastman, Federal Coor¬ dinator of Transportation, Washington, D. C. The study is being conducted under the authority of a law passed by Congress at its last session. • Page 247 •