NAB reports (Jan-Dec 1939)

to capitalize upon such by lending their voices, endorsing and recommending the use of various articles for the public, indicating and conveying by such endorsements the fact that they are qualified to so speak, whereas, in many instances these endorsers know very little of the articles they are recommending; they are simply selling their name for the endorsement thereby perpetrating a great imposition on the public. This form of advertising is not genuine and should be stopped. While the practice is somewhat difficult to prevent, nevertheless, a requirement compelling them to state they are being paid for their statement on the air will act as a deterrent and be some measure of a protection to the public. The Bill is not intended to affect those who are legitimately engaged in such undertakings, but it is directed at those who are making a racket out of this form of advertising that they are distinctly unqualified to perform. Some of the statements made by these endorsers we so frequently hear over the air and directed at the gullible are nothing short of being an insult to the intelligence of the average citizen. CALIFORNIA BILLS WOULD EXEMPT RADIO FROM SLANDER LIABILITY Two bills introduced at the current session of the California legislature by Mr. Tenney would absolve broadcasting stations from liability for slanderous state¬ ments made by speakers. A third would waive the neces¬ sity of posting bond in libel and slander actions. In the New York legislature, Messrs. Ferril, Nunan and Coughlin have introduced bills to make it a misdemeanor to incite racial or religious hatred. Section Six of the bills says: “Any person who shall from any station, studio, radio transmis¬ sion equipment, microphone, or any other equipment or device of any nature or kind, located within this state, broadcast or make audible to others, within this state, through any radio receiver set, device or equipment of any nature or kind, located within this state, in any language, any speech, declaration, statement or pro¬ nouncement which in any way incites, counsels, promotes or advo¬ cates hatred, violence or hostility against any group or groups of persons residing or being within this state, by reason of race, color, religion or manner of worship of such group or groups, shall be guilty of a misdemeanor ; and the owner of any such station, studio, radio transmission equipment, microphone, or any other equipment or device of any nature or kind, for the transmis¬ sion of sound, who shall knowingly permit the same or any part thereof to be used for such purpose, shall be guilty of misdemeanor.” The bills would provide a minimum fine of $200 and a minimum jail sentence of 90 days for violation. MONOPOLY HEARING NBC concluded its testimony and CBS started its, at the FCC hearing on alleged monopoly in the broadcasting industry. The day-by-day story of the hearing: JANUARY 5 The fact that the number of radio channels and stations is limited curtails the right of any individual to utilize those facilities to expound his own particular beliefs or doctrines, Lexon R. Lohr, President of the National Broadcasting Company, declared. This implies, he continued, that use of such facilities must be designed to serve the public to the maximum possible extent, and the public is the millions of listeners rather than a speaker who would like to talk on the air. However, Mr. Lohr stated, it is the belief and policy of the broadcasting industry that the public is served by talks on public affairs, and the networks therefore endeavor to present such talks by speakers representing varying points of view. Discussing freedom of the air as against freedom of the press and freedom of speech, Mr. Lohr stated that it is his belief that any “right” that exists in radio broadcasting is the right of the public to good program service. If individuals speaking either as indi¬ viduals or as representatives of groups were given a legal right that would compel broadcasters to grant their requests for time, he said that right would have to be extended to every individual. Lack of channels and stations to accommodate the volume of re¬ quests that would result would make any such compulsion prac¬ tically impossible, he pointed out, adding that if the air were filled with talks the listening public would grow so tired of speeches it would turn off its receivers and that this result would cause the entire American system of broadcasting to disappear. If radio broadcasting had existed at the time the Constitution was drawn, the NBC President said, it is his belief that the “free¬ dom of the air,” viewed from the standpoint of the public, might have been incorporated in the Bill of Rights. Discussing the present and future status of television Mr. Lohr stated that technically television is now as satisfactory as home movies, and at a stage of development perhaps comparable to the automobile as it was in 1912 to 1914. The availability of program material and the high cost of opera¬ tion are the two main obstacles now facing television he declared. Producing a television program for one hour a day for a period of one year, he said, would cost about a million dollars a year — two hours of television a day about two million dollars per year. This cost at present makes it prohibitive for any broadcaster to schedule television shows with great frequency he pointed out. Recalling that NBC will start about three hours of television programs a week beginning this spring, Mr. Lohr said that a staff of about 40 people would be required for these programs, and that if NBC attempted to produce more than three hours a week it would require the immediate additional expenditure of about three and a half million dollars for additional equipment. How networking of television programs will work out is still a question, he declared, for similar reasons. He estimated that a coaxial cable to carry television programs from coast to coast would cost $100,000,000, with additional huge expenditures for television broadcasting stations along that line. Laboratory tests now being made indicate, however, that it may be possible to relay television programs by radio, thus bringing the cost down to a more reasonable basis, Mr. Lohr stated. Opening his testimony, Mr. Lohr declared that it is necessary for a broadcasting company to earn a profit to insure that it will have funds at all times to meet emergency needs and provide for the best continuous service. There is no conflict between this public service and the business interests of the company, he said, because the better the programs NBC broadcasts, the better it serves its listeners, and the better it is as an advertising medium. Discussing the social aspects of broadcasting, Mr. Lohr said that radio is now entering the third stage of development. First, he explained, it was largely a novelty ; second, it was primarily an entertainment medium ; and now it is becoming a social force with powerful effect on public opinion. The welfare of the entire people is tied up with the use of this power he said. This is the reason, he declared, that NBC is careful within the limits of its policies to see that equal opportunity is given to all sides in discussions of important public questions. It also is the reason, he said, that broadcasters generally feel that they should not have any “edtiorial attitude” themselves on public questions. Discussing so-called “educational” programs, Mr. Lohr stated that one great difficulty faced by broadcasters was the defining of what is educational. He introduced such a definition which was prepared for him by Dr. James Rowland Angell, former Presi¬ dent of Yale and now Educational Counsellor for NBC. This reads as follows: “Any program may be regarded as educational in purpose which attempts to increase knowledge, to stimulate thinking, to teach technique and method, to cultivate discernment, appreciation and taste, to enrich character by sensitizing emotions and inspiring socialized ideals that may issue in constructive conduct. “Education is essentially the process by which individuals come to adjust themselves intelligently to life. Society has institution¬ alized much of this process in the form of schools, yet every event in a man’s life exercises some educational effect upon him, and the relatively enduring moulds in which a given culture flourishes — its economic, social and political fabric — exert a constant and almost irresistible educational pressure. But we have extracted from all these meanings implicit in the term the notion of educa¬ tion as something which society or the individual consciously sets up to bring about the most valuable results in the life of each suc¬ ceeding generation. It is at this point that radio comes into the picture.” 3198