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39 work has been able to operate more and more efficiently on the income received from member stations and has now reached a point where a small reserve, against capital equipment replacement, etc., is realized each year. (The steady increase in Network income is shown in Appendix 9.) The number of stations served by the Network has increased from 22 in 1949 to 79 today, (This increase is shown in Appendix 10.) The greatest number of stations served by the Network was 83, early in 1953. However, as the Network gradually assumed financial self-support, re¬ quiring higher fees from member stations, certain stations with limited budgets had to give up the Network service because of inability to pay even the modest $300.00 to $800.00 per year. This, of course, was a period during which many institutions were diverting funds from radio to television. As seen in Appendix 10, there was a rather sharp decline in the number of Network stations each time the fee was increased. How¬ ever, each time, due to improvement in Network sendee, new stations were added to the Network to replace most of those which were unable to pay the Network fee. At present there are 79 stations taking the Net¬ work service. The number and quality of programs distributed by the Network have both increased greatly over the years. (See Appendices 11 and 12.) As mentioned in the earlier portion of this report, the quality of Network programs is due in no small measure to the Grants-in-Aid which were made possible by grants from the FAE, and in more recent years, the