NAB reports (Mar-Dec 1933)

The National Association of Broadcasters NATIONAL PRESS BUILDING ***** WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Director NAB REPORTS ★ NRA * W' * ★ Vol. 1 No. 50 DEC. 16, 1933 Copyright. 1333, The National Association of Broadcasters CODE AUTHORITY COMPLETES FIRST TASKS The Code Authority appointed by President Roosevelt to admin¬ ister the Code of Fair Competition for the Radio Broadcasting Industry, which became effective on December 11, held its first meeting in Washington this week. John Shepard III, Boston, Mass., was elected chairman, and John Elmer, Baltimore, Md., was chosen vice chairman. James W. Baldwin was elected to serve as executive officer. At the suggestion of the deputy administrator, Philip G. Loucks, NAB managing director, served as temporary chairman until a member of the Code Authority was elected to preside. Managing Director Loucks, at the opening session, presented to the Code Authority some brief observations and formally laid be¬ fore the meeting a number of matters received by him from sta¬ tions throughout the country. “The Code, just like any other law, is as good or bad as its administration,” the managing director said. “In the name of the NAB I make this request — and I know it is unnecessary — that the provisions of the Code be applied with equal fairness to large and small enterprises and members and non-members of the Association. “No one who has had anything to do with the drafting of this Code — and most of you have had some participation in that work — can be impressed otherwise than with the fairness shown by all members of the Committee charged with the task. “This Code Authority is temporary. Under the provisions of the Code you are under an injunction to recommend a permanent form of Code Authority. That permanent Code Authority eventually must be the National Association of Broadcasters. It is my sincere hope that within the next three months the membership of the Association will be increased to a point where you will be in a position to make such recommendation. The Administrator has already found that the Association is properly constituted for that purpose. And if the purpose of self regulation, the objective sought by the National Industrial Recovery Act, is to be achieved, the Association must become the Code Authority. When I make this request I am mindful of the task which lies before me; that of building up the numerical strength of the Association to a point where all classes of stations and all parts of the United States can have equal representation in elections and in decisions on policies of the industry. “You may expect from the NAB the closest cooperation con¬ sistent with the work of administration and possible within the limited facilities of the Association. I am certain that you will enjoy the support of the industry as a whole. “The broadcasters recognize this meeting as an important event in the history of broadcasting in the United States. They look upon it as an unprecedented step in the direction of self-regulation. They are cognizant of the opportunity for such regulation presented here and I am confident they intend to avail themselves of that opportunity.” Under the Code the Administrator is authorized to designate, without vote, three representatives. These representatives will be named, it was learned, before the next meeting of the body. Those present at the meeting were: John Shepard III, John Elmer, James W. Baldwin, Alfred J. McCosker, Edward N. Nockels, James Kiernan, M. R. Runyon, Frank M. Russell, Izaac Z. Buckwaiter, and William Farnsworth, Assistant Deputy Administrator. During the three-day sessions the Code Authority adopted rules and regulations governing its meetings and considered numerous inquiries and requests for interpretations and matters concerning investigations into the wages and hours of broadcast technicians. The body also adopted ways and means for financing its activities and authorized its chairman and executive officer to complete de¬ tails in connection with financing. Under the Code all stations are required to bear their proportionate share of the cost of admin¬ istration as a condition to sharing in the benefits of the Code Au¬ thority. The rules and decisions approved by the Code Authority are subject to approval of the NRA and will not be announced until such approval has been obtained. In the meantime all stations in the United States are required to operate under the terms of the Code and failurei to do so con¬ stitutes violation for which the NIRA provides penalties. It was learned that the NRA is now perfecting plans for hand¬ ling complaints of violation of all Codes and that consideration also is being given to a form for securing signatures! of businesses. The Code Authority is negotiating for the use of office space under lease by the NAB and for the present the address will be National Press Building, Washington, D. C. While the Code Au¬ thority is entirely independent of the NAB it has formally re¬ quested the use of certain office space and facilities of the NAB during its temporary life. The Managing Director will transmit the proposal to the NAB Board with a request that the assistance asked be accorded. COMMUNICATIONS UNIFICATION CONSIDERED President Roosevelt this week received the report of the Inter¬ departmental Communications Committee containing factual data upon which it is believed a definite government policy with respect to the unification and regulation of telegraphic, telephonic, radio and cable facilities will be developed. Broadcasting was not considered in the report. While the report made no specific recommendations as to the manner in which the unification of the nation’s communications systems was to be accomplished, it is understood to point out the desirability of such consolidation. The report suggests that there be created an independent govern¬ ment agency modeled after the Interstate Commerce Commission to exercise regulatory and rate-making jurisdiction over all com¬ munications. The committee was headed by Secretary of Commerce Roper and has been actively engaged in a study of the communications prob¬ lem since March 4 last. President Roosevelt has had a number of conferences on the subject, it was reported, and intends to confer with Senator Dill, chairman of the Senate Committee on Interstate Commerce, and Representative Rayburn, chairman of the House Committee on Interstate and Foreign Commerce, before announcing any govern¬ mental policy on the subject. Pending these conferences, the re¬ port of the Roper Committee is being held confidential. There are four phases of the commercial communications prob¬ lem of which three relate to the domestic situation and the fourth relates to foreign communications. In the first field are included voice and symbol communication by radio ; symbol communica¬ tion by wire; and both voice and symbol communication by radio. The question which the administration must decide is whether it should encourage monopolies in the field where there have been monopolies and then after creating monopolies, whether they should be put under strict government regulation. The Roper Committee report, it is understood, points out that there are three ways out of the situation: First, to let things drift as they are now; second, to allow monopolies under strict govern • Page 255 •