Sponsor (Nov 1947-Oct 1948)

Iililiyiilm ON THE HILL Miss Hennock Doesn't Like Durr Mantle Frieda Hennock, first woman to be appointed to the Federal Communications Commission, is inheriting the liberal mantle of Clifford Durr, whether she likes it or not. Already women's clubs are planning to use Miss Hennock in "remaking radio as an inspirational force." Miss Hennock, a corporation lawyer, and a good one, is far from Durr's thinking. She doesn't like the "new look" pressure that's been poured on her by her own sex. RMA Says "No" to TV Trade Shows Because demand for television receivers is sufficient to keep manufacturers working full speed for the next year, the Radio Manufacturers' Association (RMA) wants no part of video trade shows. Using governmental requirements and short manpower as a partial excuse, RMA voted in its 24th Annual Convention (June 17) not to participate in any such gatherings. There's a hedge in that shows promoted by dealers or distributors are not frowned upon. No Network Pressure for More Tlian Five TV Stations Pressure for lifting of restriction of number of video stations that one firm can own will not have network backing. On the Hill last month referred to the FCC TV-limit as six stations. Present FCC regulation is five, not six. It's six for FM station ownership. Networks lack of interest is caused by the money necessary for more than five stations. Sid Strotz, NBC's top TV man, pointed out recently that one completely equipped studio, as NBC would like to equip and run it, costs $300,000 per year. First Quarter Dividends Hit All-Time High Dividend payments during the first quarter of 1948 were at an all-time record, establishing (if 1st quarter level is maintained) an annual payment basis of $7,500,000,000. This compares with $5,600,000,000 in 1946 and $4,700,000,000 in 1945. Second quarter business doesn't justify the first quarter payments, which is one reason why advertising is being cut. Advertising, being most noted by stockholders and, to many managements, being expendable, is usually cut in efforts to maintain a dividend rate. No Advertising Allowance for Vending Machine Display Candy manufacturers who have been giving vending machine <)|X"rators a lower price than non-automatic retailers will have to revise their pricing formulas. Federal Trade Commission early in June ordered Walter H. Johnstjn Candy Company (Powerhouse and Heavyweight Champ Candy bars) to cease and desist giving a vending machine company a better break than other customers. Complaints on the same basis against ten other manufacturers of sweets are pending. Claims that allowances were for machine display "advertising" were not upheld by trial board. Exports Off Despite ERP Lack of consistent U. S. product advertising to European and South American consumers is one of the reasons why, despite all the millions being presented, loaned, or leased abroad, exports of U. S. products are tapering off. ExfX)rt firms, many of them virtually selling on a cost-plus basis, are loath to include advertising in their pricing formulas and thus in many cases U. S. ERP money is going for goods of other nationals. Election of Republican nominee Dewey this November may carry with it a mandate to manufacturers to spend some money on export advertising. Dewey is both business and international minded. Cotton Raises Southern Income Production of cotton this year will be less than is needed for U. S. and foreign consumption. Result will be higher cotton prices and more money for Southern planters. This is already reflected in better business conditions in the South and smiles on the faces of broadcast station owners south of the MasonDixon Line. 36 Months Before 28-Hour Weekly TV Scheduling Although a suspended requirement for TV station operation for new licensees several years ago was 28 hours a week, new regulation, effective July 1, requires only 12 hours a week for the first 18 months with an increase of four hours each six months until a 28 hour minimum is reached. That means a station can be on the air three full years before it has to program an average of four hours a day. Putting a test pattern (station identification) on the air will not constitute programing. Manpower to Start Tightening in Six Months Draft and tremendously increased demand for men in semimobilized industries (airplane, radar, atomic energy, etc.) will force other industries to start bidding for good men. Employee relations campaigns (some on air, some in black and white) are already being charted. The nation will be on a wartime economy for a long time even if foreign pressure problems (Palestine Russia, Argentine) are relaxed. An Interim Report on Congress Congress recessed without doing anything about the margarine tax reduction. It also exited with nothing accomplished regarding housing and a number of other problems. Advertising scheduled on an "if" basis (if tax-free margarine had been okayed and if millions were poured into federal housing) will naturally not be released. Governor Dewey, whom many people look upon as the next president, has stated that he's against further governmental encroachment on private broadcasting. Nevertheless a revised White Bill will be introduced at the next session of Congress to further regulate radio. The broadcasting industry is generally against the White Bill and has come to the conclusion that living under the law that created the Federal Communications Commission is not as bad as they thought that it was. Even." new bill introduced hits a number of private radio interests hard 18 SPONSOR