Radio and television today (Jan-Dec 1940)

TELEVISION BATTLE Hope Rises in Washington that Industry Can Soon Agree on "Standards" and Restore Sept. 1 Date On February 29 the Federal Communications Commission gave television an "amber light," authorizing the beginning of "limited commercial television broadcasting" for Sept. 1, 1940. This Feb. 29 action followed extensive hearings at Washington during January, when the plans for promoting television sales, technical aspects, etc., were thoroughly covered by witnesses representing all leading groups in the industry. Accepting the FCC approval as valid, television men in New York immediately began to carry out merchandising plans already discussed in full detail at the FCC hearings. On March 12, 500 radio dealers were apprised of the plans at a meeting in the NBC studios. And on March 20 advertising announcements appeared in the metropolitan dailies, giving details of price reductions, and outlining programs broadcast from the Empire State transmitter. Some of these ads are shown here. COMMISSION REVERSES SELF Four days after the publication of these advertisements, Chairman Fly of the FCC issued a statement that "Promotional activities on the part of RCA have prompted the FCC to order a further hearing, April 8, to determine whether research and experimentation and the achievement of higher standards of television transmission are being unduly retarded by this company, its subsidiaries and other licensees, and whether the effective date for beginning limited commercial operation should not be changed from Sept. 1 to some subsequent date." Meanwhile by Commission order the new rule permitting such commercial operation was suspended indefinitely. The Commission's reversal of its previous action threw a bombshell into television and radio-trade activities in New York and elsewhere. All television promotion and advertising was immediately suspended, and television men settled down to await the outcome of the April 8 hearings. CHAIRMAN ASKS RADIO TIME TO "EXPLAIN" Meanwhile the FCC and particularly its chairman, James L. Fly, came in for sharp criticism from newspapers and cooperating dealers on its sudden change of policy, and for its interference with the advertising and merchandising of television sets, generally believed to be outside of the legal functions of the Commission. Smarting under press attacks Chairman Fly went on the Mutual and NBC Red networks, April 2, and to the nationwide audience of 125 stations undertook to explain his action. The chairman's half-hour address was in part an enthusiastic appreciation of the future wonders and delights of television, and these remarks to a nation-wide audience yet totally without television facilities, had the effect chiefly of causing doubt in connection with radio purchases — and so immediately slowed down radio sales! Thus by his actions within four days' span, the chairman was able to create considerable television enthusiasm throughout the whole nation, in places where it could do no good, but only cancel radio purchases — while at the same time he stopped all promotion and sale of television sets in the only areas where such sets could be used and enjoyed by the public! FCC and Senate Hearings To understand television's hectic week in Washington, April 8 to 13, both "on the Hill" and at the hands of the FCC, it is necessary to realize that events in the capital proceed not from logical evidence presented at hearings, but from subtler political causes at work in this Election Year. So widespread and devastating was the press criticism of the Commission's unprecedented interference into television merchandising and advertising— with political evidence that the FCC was halting a great new industry promising thousands of jobs and vast investment — that it immediately became necessary, from a political standpoint, to do two things : First, to establish that the FCC, an Administration body, had proceeded with lofty (if mistaken) motives, and within the radio statute. Second, to reverse the Commission, and restore the green "go-ahead" signal for television, as quickly as it could be done, with proper "saving-offace" for the Commission majority. FCC WITNESSES The first of these steps was evident in the hearings which during the whole week occupied the Commissioners, in the superb ICC Auditorium. Including the RCA (cited specifically for "advertising and selling" televisors), a dozen witnesses asked to be heard. In the order in which the witnesses were scheduled to appear, the interests represented were : Dumont, Don Lee Broadcasting, Philco, Zenith, CBS, RCA-NBC, Cathray, American Television, DeForest, Sanabria, Farnsworth Television, and National Television. Progress in the FCC hearings was slow. And from them, attention was suddenly shifted to the Senate's In terstate Commerce Committee where a resolution to investigate the FCC had been introduced by Senator Lundeen of Minnesota. SENATORS HEAR FCC AND RCA In the Senate Committee room, the FCC chairman was called to appear before his confirming superiors and defend his own record in delaying television. He stated his belief in flexible standards for general use, cited the law authorizing the FCC to fix standards, and declared that if by sales or advertising he found any group attempting to "lock down" standards, he "would immediately move in to protect the public's interest." David Sarnoff, president of RCA, was then called and testified that his company had invested $10,000,000 in television research, and is now ready, with its licensees, to proceed with commercial television development, if it can get FCC authorization. Mr. Sarnoff foresees television as an industry doing a billion dollars annually in receiver sales and programs, and employing 500,000 to 600,000 people. "ACTION NOW!"— SARNOFF He urged that the public through use be allowed to determine which system will give it the best service, and recommended that any promising system be authorized for public test. RCA is now spending $2,000,000 yearly on television research, he said, but is unable to learn what the Commission thinks it should or not properly do to promote television development. The vast television research of RCA has been set forth to the public and industry in more than a thousand scientific papers and reports, and 50 competitors have been licensed to build televisors. 74 RADIO TODAY