NAB reports (Jan-Dec 1935)

The iMational Association of Broadcasters NATIONAL PRESS BUILDING ..... WASHINGTON, D. C. PHILIP G. LOUCKS, Managing Diiectoi NAB REPORTS C**yrl«IR> l>34. The National Aiieeiatlon ef Broadtarten Vol. 3 . No. 9 FEB. 7, 1935 RECOMMENDS COMMISSIONERS’ CONFIRMATIONS The Senate Committee on Interstate Commerce on Tuesday reported favorably to the Senate the nominations of Commissioners Sykes, Brown, Stewart, Payne, Walker, and Case. It is expected they will be confirmed before the end of the week. Commissioner Prall was previously confirmed by the Senate. The report of Chairman Wheeler’s committee followed extensive hearings which were concluded last Saturday morning. COPYRIGHT UNION TREATY CONSIDERED The Senate Foreign Relations Committee on Wednesday con¬ sidered in executive session a resolution providing for the ratifica¬ tion of the International Copyright Convention. Adherence to the convention was opposed by the broadcasters and many other users of copyrighted works of all kinds during the last session of Congress. These groups are still opposed to ratification. Adherence to the convention would bind the United States to pass new copyright legislation in line with the terms of the con¬ vention. The convention provides for automatic copyright, aboli¬ tion of all formalities such as registration and notice, divisibility of copyright, and, among other things, would recognize the moral right of any composer or author to protect mutilation of his work by injunction. The Committee, it is understood, will continue consideration of this matter next week. Ratification was supported by the State Deparment during the last session of Congress. Senator Duffy, Wisconsin, is chairman of the subcommittee con¬ sidering the matter. SHEPARD HEADS MASSACHUSETTS COMMITTEE Organization of the Massachusetts State Committee of the Na¬ tional Association of Broadcasters was completed at a meeting of broadcasters held at Boston on Tuesday. Managing Director Loucks served as chairman pro tern and explained the purposes of the committee and conducted the elections which resulted in the selec¬ tion of John Shepard Third, WNAC, Boston, as chairman; J. J. Storey, WTAG, Worcester, vice chairman ; and A. S. Moffat, WMAS, Boston, secretary. In addition to the above, the following were present: Roy Harlow, WAAB, Boston; Ira L. Grimshaw, WBZ, Boston; Joseph Groce, WEEI, Boston; J. A. Holman, WBZWBZA, Boston; F. N. Maddix, WBSO, Babson Park; A1 Pote, WMEX, Boston; E. E. Hill, Worcester; Robert Donahue, WLLH, Boston; Irving Vermilya, WNBH, New Bedford; W. T. Welch, WSAR, Fall River; and J. A. Farrer, Boston attorney. The meeting considered several bills pending before th^ Massa¬ chusetts legislature and agreed to appear as a body before the Joint Judiciary Committee of the Legislature in opposition to bills which would require all stations to keep accurate records of all words spoken or sung over stations and which would subject stations to penalties for defamatory statements. Chairman Shepard, it was agreed, will appear as spokesman for the Committee at the hearings to be held Thursday morning. STATE LEGISLATION Oregon House Bill 148, introduced by Congressman Harrison, January 28, prohibiting the advertising of alcoholic beverages in any manner, noted in NAB Bulletin January 31, has been killed, but Senator Zimmerman et al. of Oregon introduced February 4 Senate Bill 154 which also prohibits the advertising of liquor, in¬ cluding radio. Iowa has introduced and passed in the House a radio receivers tax bill. This bill has now gone to the Senate Judiciary Committee for action. Illinois House Bill 143, introduced January 29, 1935, by Congress¬ man Adamowski, brings radio broadcasting advertising under the provisions of the fraudulent advertising act. New York Assembly Bill 765, introduced January 30 by Con¬ gressman Doule, adds a new section 555 to the Penal Law, making it a misdemeanor for any person other than a licensed physician or surgeon to broadcast surgical or medical advice. Wisconsin Assembly Joint Resolution 42, introduced by Congress¬ man Blomquist, provides for a special joint legislative committee to confer with the Federal Communications Commission on the improvement of radio broadcasting in Wisconsin. Washington H.T.N. XYZ provides for a new emergency revenue bill revising the business and occupational tax law, inheritance, and other statutes, and contains a retail sales tax of two and one-half per cent in lieu of the former half of one per cent tax on retail business. LINE CHARGES TO BE STUDIED A sweeping investigation of the corporate setup and charges of the American Telephone and Telegraph Company has been ordered by the Senate under the terms of a resolution reported favorably this week to the Senate by the Senate Committee on Interstate Commerce. A sum of $750,000 is provided for the investigation, which would be undertaken by the Federal Communications Com¬ mission. Charges for broadcast lines and public address systems would be investigated under the terms of the measure. The resolution (S. J. Res. 46), which was introduced by Senator Burton K. Wheeler of Montana, chairman of the Committee, reads as follows: “Resolved by the Senate and House of Representatives of the United States of America in Congress assembled. That it is neces¬ sary, in aid of legislation by the Congress and for the use of govern¬ mental agencies, including State regulatory commissions, for the information of the general public, as an aid in providing more effective rate regulation, and for other purposes in the public interest, that accurate and comprehensive information be procured and compiled regarding the American Telephone and Telegraph Company and other telephone companies. “Sec. 2. The Federal Communications Commission is, hereby authorized and directed to investigate and report to the Congress on the following matters with respect to the American Telephone and Telegraph Company and all other companies engaged directly or indirectly in telephone communication in interstate commerce, intending all of their subsidiary, affiliated, associated, and holding companies, and any other companies in which any of them have any direct or indirect financial interest, or which have any such interest in them, or in which any of their officers or directors hold any office or exert any control, or whose officers or directors hold any office or exert any control in them — “(a) The corporate and financial history, and the capital struc¬ ture and the relationship of such company and of its subsidiary, affiliated, associated, and holding companies, including the deter¬ mination of whether or not such structure may enable them to evade State or Federal regulation or taxation, or to conceal, pyramid, or absorb profits, or to do any other act contrary to the public interest. “(b) The extent and character of intercompany service contracts and all transactions between the telephone companies and their subsidiaries, affiliated, associated, or holding companies, and par¬ ticularly between the American Telephone and Telegraph Company and the Western Electric Company and other manufacturers of electrical communication equipment; the methods of publishing telephone directories and placing and charging for advertising therein; the cost of and sale prices of telephone equipment, mate¬ rial, or devices to telephone operating companies or users; the profits upon such sales and the effect of such sales upon the rates or upon the rate base of operating companies when used as a basis • Page 721 •