Radio today (Sept 1935-Dec 1936)

NOV 21 1936 ' ©C1B 3200 35 Staff— Darrell Bartee Randall R. Irwin M. H. Newton B. V. Spxnetta Vinton K. Ulrich Lee Robinson Sales Manager RADIO TODAY Orestes H. Caldwell, Editor M. Clements Publisher Copyright 1936 f Caldwell-Cleraents, Inc. 480 Lexington Ave. New York, N. Y. Tel. PLaza 3-1340 Vol. II, No. 11 PEAK-TIME IN GENERAL * Signs of solid health have appeared in stout dozens throughout general business activity. Next it knows, U. S. industry will be face to face with a 1929 brand of business; trends have learned the upward way. Both General Motors and the U. S. Steel Corp. have announced spectacular wage increases — a shot of cheer for buying power. Auto people count on a new kind of 5,000,000-unit year. Retailers report sales ahead of supply, in some corners; advertising volume has the highest level in 3 years. Latest monthly figure from National Industrial Conference Board on total U. S. payroll shows a 22.4% lift over last year. XMAS XPECTATIONS * Yule shoppers this year are scheduled to have both the desire and the dough. Average weekly pay envelope contains 11.4% more than last year, and sales totals for the holiday period are destined to rush past a 20% increase over last year. The Santa Claus thing began earlier this time, with benefit of wild forecasts as to December's thirst for gifts. Radio, with a batch of new models and a background of trade recovery, can claim a share that will do its heart good. RADIO'S BUILDING BUILDINGS * Broadcasters say that they will streamline themselves a couple of additional radio show places, NBC in Washington, D. C, and CBS in Hollywood. New studios won't cut the clouds like the blocky towers of the original Radio City, but they will have the same smash charm. NBC's efforts in Washington will mean fancy new homes for stations WRC and WMAL, clearly as up-tothe-minute as the web's engineering genius, O. B. Hanson, knows how to make them. Meanwhile Columbia will spend $1,000,000 on flashy quarters for coast station KNX, probably to become the Pacific's broadcast center. House design is up to William Lescaze, whose technique has an international OK. RMA RULES AGAINST UNFAIR TRADE PRACTICES * Prizes, "spiffs," "push-money," bonuses, and also cruises will be among the evils in radio merchandising which will be ended, under the program adopted by RMA. Initiative and leadership in the program for cleaning up radio-set merchandising was begun several months ago by Commander E. P. McDonald, Jr., of Chicago, chairman of the Pair Trade Practice Committee. The RMA plan developed already has the unanimous endorsement of most leading set manufacturers Commander McDonald, who heads up RMA'S Fair Trade Practice Committee and also has been tentatively approved by government officials at Washington. A major feature of the new cleanmerchandising program for set manufacturers is a new rule of fair trade practice, which provides : Spiffs, push-money "Rule 3 — The granting or giving or promising to grant or give by manufacturers in the industry, directly or indirectly, to employees of retail sales outlets selling competitive lines of radio merchandise, of commissions, bonuses, premiums, prizes, 'spiffs,' 'push-money,' gratuities, privileges or anything of value in any form whatsoever, in consideration of the said employee's influencing the retail purchase of industry products manufactured by the grantor or donor, whether or not the same shall expressly be granted or given for that purpose, to the extent that such practice has a tendency and effect of improperly in. fluencing and deceiving the buying or consuming public by reason of the fact that the purchaser is not aware of such subsidy or consideration and expects the retail employee to be unbiased, impartial and free from any such influence as between different merchandise sold by him, is an unfair trade practice." Robinson-Patman Act While the proposed new trade practice rule applies only to action of manufacturers and extends only to radio retail salesmen, wider effect, specifically on radio distributors, will be attained through supplementary action of set manufacturers. The set manufacturers also approved unanimously a separate contract, which has already been signed by a large number of leading companies, that they will "use all lawful means" under their control to prevent their distributors from violating, either in letter or in spirit, the proposed trade practice rule and prevent distributors from granting the prohibited premiums, prizes, "spiffs," etc., to retail salesmen handling competitive sets. For enforcement of the provision of the separate agreement of manu November, 1936 /