NAB reports (Jan-Dec 1937)

CHAIRMAN CARPENTER: As is customary in these meet¬ ings and to sort of sneak up on your blind side and not expect you to think too deeply too early in the morning, we will have some of these announcements you have been wondering about anyway. Announcements CHAIRMAN CARPENTER: Are there any other announce¬ ments which should be made at this time? All right, we shall go ahead immediately with our program for this morning. For the benefit of some of those who have been members of the NAB for but two or three years, it might be well for me to summarize in just a moment or two the history back of the Com¬ mercial Section. Those of you who know it, please bear with me and correct me if I should make any mistakes. I feel it is somewhat necessary for you to know something of the history of the development of this Section in order that you may understand some of the things we do and some of the things we do not do. I had the honor of being appointed on the first Commercial Committee, I believe, and according to my recollection, which is somewhat hazy at most times but particularly so this morning, I was appointed by Bill Hedges in Washington back in 1928. The members of that first Commercial Committee included some of the men who are here today, some of the men who are on the program and some of the men who, although not on the program, are sure to speak. You just can’t keep them still! Bill Hedges. Paul Morency. At the beginning, of course, Paul was employed by NAB and later went to Hartford. Joe Maland. Martin Campbell. And, I believe Gene O’Fallon was with us in those days. But, there were only eight or ten men who met regularly in New York City and later in Washington. The questions we discussed — some we are still discussing and some we will be discussing ten years from now, maybe. I remember one of the earlier discussions was on the rate card. That was not rates, necessarily, but on the size of the card, the general form and the shape of it — the shape so that it would fit into the files of the advertising agencies. We discussed at that time discounts — time, quantity and cash dis¬ counts — and considerable time was consumed in evolving defini¬ tions for some of those terms with which we were completely un¬ familiar. And, incidentally, it might be well for us to revert to a study of some of the definitions used in broadcast advertising. We discussed an order form which resulted eventually in this standard A. A. A. A. order form. We went into quite lengthy dis¬ cussions, day after day, several days, on the provisions which should go on the back of that standard order form. We discussed representative plans and compensation of repre¬ sentatives. We discussed maintenance of rates — and I don’t be¬ lieve, by the way, that we have a resolution this year that every station should maintain its card rates! (Laughter.) That’s wrong. We should have one this year. We have had one every year. (Laughter.) But, that was discussed at quite some length. Also, another which is still being discussed, the question of local and national rates, or retail and general rates, as the definitions were estab¬ lished. And, eventually we evolved a Code of Ethics which I pre¬ sume most of you men have framed and hung in your office — or certainly in the washroom next to your office. (Laughter.) The Commercial Committee worked along that way until the number of questions which we were discussing seemed to fall naturally into several groups and the number became so large that it was rather unweildy to handle in one committee so after the convention last year, the Commercial Committee was formed more completely than it had been the previous year in what we called the Commercial Section. So, this morning is an open meet¬ ing of the Commercial Section of the NAB or in another sense is a regular meeting of the entire NAB, which is to be devoted par¬ ticularly to a consideration of the commercial phases of broad¬ casting. There were five committees appointed and several changes have had to be made in the chairmen of these committees but as they stand at the present time, there is Lew Avery on Sales Managers Division, Carl Everson on National Sales Methods and Costs, Arthur Church on Committee on Radio Research, John Gillin on Radio Promotion, and Martin Campbell in charge of the Committee on Standardization of Sales Forms. Each of these chairmen selected a committee of six men which made a total committee of seven, including the chairman, and the work of each committee was outlined roughly. Three of the five committees conducted their work during the year by means of correspondence and it was quite voluminous in some instances. The two committees which were the exception to that method of procedure were, of course, the Sales Managers Division, which has done its work in meetings in various sections of the country during the year and in the one meeting which was held here in Chicago. Of course, we should not pass the Sales Managers Division without mentioning the very, very excellent work done by Buryi Lottridge. Unfortunately, Buryi had to drop the work and Lew Avery has picked it up without any difficulty whatever and has carried the work to its conclusion this year. The Radio Research Committee — Arthur says he has very little to say this morning (no applause, please) and possibly I will take what he has to say from him — I will say this Radio Research Committee (check me, Arthur, if I am incorrect) is a group of seven men including Arthur Church, who is the chairman. The chairman selected five men who met with five men from the Association of National Advertisers and five men from the Ameri¬ can Association of Advertising Agencies to form what is known as the Joint Committee of Fifteen. Now, there are a lot of figures in there but I believe you can see the idea as it is worked out. The Joint Committee of Fifteen works on these matters and the five men from NAB then report back to this Radio Research Committee, which ties in with the Commercial Section, and it is in connection with that phase of the work that Arthur will speak this morning. One other thing we should mention before I introduce the first speaker to give the first report, and that is we have been criticized year after year by many who do not quite understand the difficul¬ ties, that we do a lot of talking and never get anywhere in the Commercial Section. Well, O. K. We do a lot of talking but we do believe a number of very definite things have been accomplished during the last seven or eight years and we do know, those of us who have been working in this phase of the work that there are any number of things which we can’t solve. We can’t come out in a definite resolution and say so-and-so. It is a matter of evo¬ lution. It is a matter of calling these matters to the attention of the members year after year, and let the experience of the members develop to such a point that the membership is willing and ready to make some definite decision on some question which we have been discussing. So, may I introduce the first speaker this morning giving the first report — Lewis H. Avery, WGR, Buffalo Broadcasting Cor¬ poration, Buffalo, will give the report of the Sales Managers Divi¬ sion. Mr. Avery. LEWIS H. AVERY (Chairman, Sales Managers Division; WGR, Buffalo Broadcasting Corporation, Buffalo, New York) : Mr. Chairman, ladies and gentlemen, last July, at the first session of the 1936 annual convention of the National Association of Broad¬ casters, J. Buryi Lottridge invited those sales managers who were present and who were interested in the formation of a sales managers organization, to meet with him in his room and perfect plans for a sales managers group. With the aid of the Resolu¬ tions Committee, there was written and presented to the 1936 annual convention Resolution No. 19. Here it is: “Whereas, it is the sense of this convention that the interests of those attending are becoming more and more varied; and “Whereas, there has been an ever-increasing tendency toward the formation of smaller groups within the Association; and “Whereas, experience has proven this to be a healthy develop¬ ment, tending to interest a greater number of individuals in the work of the Association; and “Whereas, the sales promotion problems of the industry and in¬ dividual stations both are becoming increasingly important; now therefore be it “Resolved, That 1. this Association favors the formation of a Sales Managers Section of the NAB, to be affiliated with the Commercial Committee; 2. this Association recommends to the Board of Directors their approval of this project, and recommends that the Board authorize the Managing Director to pay such incidental ex¬ penses as are necessary for postage, printing and similar items out of funds of the Association.” You ladies and gentlemen who were then present looked favor¬ ably upon this proposal, passed it quickly. So, too, did the Board of Directors. Almost before we knew it, the Sales Managers Division of the Commercial Committee was born. Before the resolution was introduced, the interested group of sales managers by unanimous vote had already elected J. Buryi Lottridge chairman of the division. Mr. Lottridge deserves and hereby receives trib¬ ute for his untiring work. He was the father and mother, wet nurse and governess of the Sales Managers Division. He sold the idea to the other sales managers at the 1936 annual conven 2458