Variety (Jan 1939)

W<*<lnfsday, January- 11, 1939 RADIO VARIETY 2S CBS Gross Billings to Agencies (1938) Ruthrauff & Ryan, Inc $3,359,373 Benton & Bowles, Inc.. 3,298,840 Young & Rubicam, Inc. , 2,405,105 ^laclcett-Sample-Hununert, Inc 2,057,048 Lord & Thomas 1,662,262 Newell-Emmett Co., Inc. 1,118,355 William Esty & Co., Inc 1,081.013 N. W. Ayer & Son, Inc 1,065,945 J. Walter Thompson Co. 1,040,996 Neisser-Myerhofl, Inc 920,170 Lennen & Mitchell, Inc. 778,410 Ward Wheelock Co. 692,788 B. B. D. & O., Inc 683,701 Gardner Advertising Co. 593,803 Compton Advertising, Inc. 578,152 The Biow Co., Inc. 463,380 Arthur Kudner, Inc. 435,120 Buchanan & Co., Inc 405,265 D'Aroy Advertising Co. ... 358,940 Geyer, Cornell & Newell, Inc. 345,334 Roche Williams & Cunnyngham 340,767 Frances Hooper Advertising 331,985 Lambert &.Feasley 302,385 Campbell-Ewald Co 299,655 Knox Reeves Advertising, Inc. 247,993 Pfedlar & Ryan, Inc. 246,732 Maxon, Inc 225,960 McCann-Erickson, Inc. 211,410 U. S. Advertising Corp. 192,750 Morse International, Inc. 180,015 Birmingham, Castleman & Pierce 174,049 Aubrey, Moore & Wallace, Inc. 156,100 Brooke, Smith & French, Inc 139,735 MacManus, John & Adams 130,615 Hutchins Advertising Co 129,360 Erwin, Wasey & Co., Inc 106,600 Sponsor Wants to Know Em CoU Drake in Hollywood—Norma Shearer a Hard Gal for Stars to Turn Down CANT OPEN DOOR TO All; CRANK ORATORS WOULD RUIN BIZ-LOHR President Winds Up Hearings for NBC—Columbia Begins Second Act of Monotony Hearings in Washington Hollywood, Jan. 10. Col. J. Frank Drake, Gulf Oil's radio-minded prez, got a few things off his chest last week when he put into town for the launching of the petrol outfit's new program, the Screen Guild show. That there's too wide a division between sponsor and talent was his main point. 'Only time we come in contact with the people we i ay to stimulate Bales of our product,' sez the colonel, •is when there's a salary squawk.* Personal contact is important to the success of a radio show, he believes, and, suiting action to the word, he- was here for the opener and plans to make many more trips to the Coast to meet the gang and the people responsible for the produc- tion." If the colonel lives up to his promise he'll meet some expensive people. In the first lineup were Jack Benny, Joan Crawford and Judy Garland. Future programs will have equally impressive casts. AH three film Guilds are pushing this show to the limit. Norma Shearer has taken charge of round- ing up the weekly changes of talent. That is taken to mean that thereH bo no turn-downs, regardless and albeit. Drake also believes the commer- cials in radio are dull and lacking in showmanship. To back him up, it was pointed out that the Gulf sales bally rarely uses up more than two and a half of the three minutes allowed on a network commercial. On the ground for the inaugural with Drake was Chet LaRoche, Voung & Rubicam prexy. PEEP AT SKYUNE GOES WITH WOR SHOW People's Rally (Mennen) on WOR- Mutual is using the Skytop theatre in the Chanin building after Jan. 15 for studio audiences. Oglers then get a cuffo visit to the observatory which is normally 40c. clip. Program was. formerly heard in WMCA studio because of WOR's cramped quarters. THE KELLOGG MYSTERY! Those Bif Checks Laid End to End In a Circle Hollywood, Jan. 10. Veil of 'secrecy' surrounding new Kellogg show has been lifted and format of Hollywood's latest entry in the colossal sweepstakes, debuting next Sunday (15), has at long last been revealed. Program will take on the informal nature of a group of people discussing this, that and the other. Dubbed The Circle,' it will have Ronald Colman as presi- dent of the club; Carole Lombard, secretary, and Cary Grant, the beadle, English equivalent of a prompter. Outside guesters will be called in from time to time as specialists on the subjects discussed. Poetry, philosophy, anecdotes and other manner of Impromptu conversation wiU be Included in the discussions. John U. Reber, radio head of J. Walter Thompson, nurtured tKe idea into its present state of commercial presentation. WKRC ADOPTS SINGLE RATE Cincinnati, Jan. 10. WKRC, CBS' local m.&o., has dropped its local rate card, making it the only network station in Cin- cinnati with but one set of rates. WKRC's new rate card (No. 12) has as its basic rate $300 per class A hour, with rates proportionately re- duced for other classifications of time' throughout the afternoon and morning. Columbia's home office is also working on new rate cards for its other managed and operated stations as well as one for the network itself. THIRD 10 AGENCIES (NBC, CBS, Mutual, 1938 Expenditures) 21. Roche, Williams & Cunnyngham, Inc $1,004,155 22. McCann-Erickson, Inc, 836,851 23. Arthur Kudner, Inc 785,449 24. Needham, Louis & Brorby, Inc. 675,190 25. Hays, MacFarland & Co. 648,815 26. Sweeney & James Co. 635,206 27. Maxon, Inc. . 617.831 28. Hutchinson Advertising Co. ' 563,400 29. Aubrey, Moore & Wallace 520,398 30. McKee & Albright, Inc 500,798 Washington, Jan. 10, . First round of the weary FCC chain-monopoly inquiry came to a close Thursday (5) when Lenox R. Lohr, web president, concluded tes- timony on general NBC policies and operating principle^. Going sounded for the pioneer chain after more than six weeks of quizzing in which a score of witnesses took the stand and pounds of exhibits were present- ed. Next phase is examination of CBS, which started today (Tuesday) and is expected to consume from three to five weeks. Return of David Sarnoff, chairman of the NBC boaiXl, for grilling about the picture painted by subordinates, was continued to an indefinite date when the pick-and-shovel work on all networks has been finished. Be- cause he is one of the.prime movers in network operations, Commish wants to get his reaction and opin- ions after it is armed with com- plete statistical and factual informa- tion about chain, services. Most of Lphr's testimony was in the nature of defense of points es- tablished through other witnesses. He reflected. philosophically on so- cial obligations and expressed per- sonal views about various NBC methods and objectives. NBC Writlne It Down Promulgation of a concrete writ- ten statement of program policy is schedufed by NBC in an attempt to standardize the preparation of ad- vertising continuity and removie all uncertainty concerning the sort of microphone fodder which serves the public interest, FCC learned. Coin- cidental with this disclosure, he an- nounced the web in the future will not accept any accounts for beer or light wines, tightening the existing ban on hard liquor despite the finan- cial injury which will result. Program and advertising policies are laid down by compapy execu- tives following consideration of ideas presented by the NBC Advisory Council, Lohr told the four-man committee. Control over copy rests firmly with the network, not with agencies or outsiders. Touching on some of the outstand- ing controversial problems confront- ing the industry and the Federal Government, the NBC head ap- proved the type of kid programs which his transmitters disseminate; affirmed his belief in freedom of the air but opposed any legislation or regulation which would compel li- censees to open their facilities to organizations or groups; declared his company tries industriously to pro- vide cultural an.', educational pro- grams; asserted ownership of two netw »rks by one enterprise is bene- ficial to the public; upheld the idea of reaching the national audience through multiple outlets; contended networks have a right to engage in artist management; and denied that money-making is liable to cause deg- radation in program caliber. Against Coercion On the hot topic of freedom of speech,' Lohr voiced his belief that the public is entitled to good pro- gram service and warned that if in- dividuals or groups are allowed to exercise legal power to compel broadcasters to give them time the result would be virtual#-'destruction of the American system of broad- casting. Lack of facilities makes it impossible to grant the requests that would be an inevitable result of such theory, while the public would be- come thoroughly disgusted with or- atory. Station and netwotk execu- tives must have freedom to deter- mine who is entitled to speaking op- portunities, he insisted. Under NBC policy effort is made to give conflict- ing factions equal chance to discuss vital issues, and time is not sold for such purpose because of inequality that would result where different groups were not on the same finan- cial basis. On the question of religious and ' educational programs, the web of- j fleer pointed out his organization i seeks to satisfy all interests to the maximum degree consistent with! good business. No time sold for re- ' ligious broadcasts, while programs are intended to have a general, not denominational,. appeaL Four types of educational programs cited, rang- ing from those designed for schools to sugar-coated feattires which also provide entertaiiiment, such as spell- ing bees. Great difficulty is experi- enced in deciding exactly what type of radio fare is educational, he noted.. Some types of entertainment not fitted for sponsorship, he opined. Affiliates' Contracts Business methods of NBC were rated as sound, with Lohr observing that the better the company serves the public, the bigger its eventual reward. Five-year contracts with affiliates—regarded with suspicion in some government quarters—are desirable, he said, because of the industry's need to engage in long- range planning in order to build up program service and clientele. By engaging in artist management, NBC is able to discover and develop steady supply of new talent, aiding performers in other fields and guid- ing novices. Expansion of the NBC system, as well as maintenance of two separate hook-ups, helps the company pro- vide better service to the listening public, in Lohr's estimation. He re- marked on the variety of tastes and the necessity for diversified pro- grams and said multiplicity of out- lets benefited not only the audience but the sponsors. While television now is technically feasible, serious obstacles still must be removed before it can be pro- vided on broad scale. Availability of program material and high cost of operation are factors. He pointed to the production expense—estimating that two hours of visual service a day would amount to $2,000,000 per year —and said this makes it prohibitive for any broadcaster to schedule shows with great frequency or regu- larity. If NBC attempted to produce more than the scheduled three hours weekly which will be produced when regular operation starts this spring, an additional outlay of $3,500,000 would be necessary, he explained. Lohr was unwilling to make any forecast about possible network operation of television, noting that cost items have not been isolated. A coaxial cable reaching across the country would cost $100,- 000,000, he estimated, plus the sub- stantial investment for local franfi- mitters. Tests now in process, how- ever, hold out hope that programs may l>e rebroadcast Woods on Stand Attractive financial picture was sketched by Mark Woods, treasurer of NBC, prior to Lohr's debut on th< stand. Since the start of 1928, thf company has pocketed a profit every year, aggregating $18,885,532 through 1937. With income of $282,404,984 and expenses of $263,519,451, the net since operation started in 1926 fig* ures out at 6.69%. Income listed froni time sales, talent bookings, and mis* cellaneous sources. Nearly two-thirds of the profit has been paid out in dividends, primarily to RCA, the parent company. One exhibit revealed $11,400,000 has been distributed to stock-owners, while $2,440,436 has been set aside as sur- plus. Woods said that since 1930, RCA has had 100% ownership of the network company, having acquired all of the minority interests origi- nally given General Electric and Westinghouse, WPTF TERMS SETRYI^ Charlotte; N. C, Jan. 10. Representatives of the proposed Carolina Radio Col:p. have-gotten to- gether with NBC on an agreement for taking over. WPTF, formerly op- erated by the Durham life Insur- ance Co., if and when exercise of NBC's option on ,the station is ap- proved by the Fedieral Commiinica- tions Commission. Agreement calls, for a purchase price of $200,000, the exact amount Involved in NBC's- op- tion, with $150,000 to be paid in ca^ and the balance in deferred payments, ments. Understanding Is that the stock wiU be held by 33 business and pro- fessional men of eastern and central North Carolina. Representative of these subscribers h&ve stated that. the operation of WPTF will continu* in this section and that it will not b« moved to a larger center of popu- lation. Ed Petry Back in N. T. Chicago, JTan. 10. Ed Petry returned to New York yesterday (Monday) following a gen- eral tour of the midwest area. Stopped off in Chi for a little gas- sing with Ed Voynow, local chieftain. NBC Gross Billings to Agencies (1938) Gross Rank Agency Expenditures 1 Blackett, Sample, Hummert, Inc. $6,898,585 2 Thompson, J. Walter Co ;.. 4,192,162 3 Lord & Thomas 3,080,107 4 Compton Advertising, Inc , -r<,. 2,529,636 5 Young & Rubicam, Inc 2,505,961 6 Wheelock, Ward Co. , 1,565,637 7 Benton & Bowles, Inc 1,501,559 8 Wade Advertising Agency 1,383,741 9 Pedlar & Ryan, Inc 1,341,453 10 Kastor, H, W, & Sons Advertising Co. 1,201,392 11 Stack-Goble Advertising Agency 1,001,999 12 Batten, Barton, Durstine & Osborne, Inc ;... 877,632 13 Needham, Louis &> Brorby, Inc. .675,190 14 MacFarland, Hays & Co ; 648,815 15 Sweeney & James Co , 635,206 16 Roche, Williams 8c Cunnyngham, Inc. 631,667 17 McCann, Erickson, Inc. , 625,441 18 Lennen & Mitchell, Inc. 622,277 19 Erwin, Wasey & Co 601,079 20 Newell-Emmett Co., Inc 574,959 21 Hutchinson Advertising Co. 563,400' 22 Biow, Company, Inc., The , 526,664 23 Gardner Advertising Co 505,478 24 McKee & Albright, Inc 493,928 25 Warwick & Legler, Inc 455,936 26 Ruthrauff & Ryan; Inc. ........... t.,.., . 412,175 27 Maxon, Inc 391,871 28 Ramsey, The L. W., Co ', 364*563 29 Aubrey, Moore & Wallace, Inc. 364,298 30 Kudner, Arthur, Inc 350,329 31 Ayer, N. W. & Son, Inc. 284,746 32 Greene, James A, & Co. 247^792 33 Ellis, Sherman K. & Co 240,774 34 Hixson-O'Donnell Advertising, Inc ; 202,940 35 Henri Hurst & McDonald, Inc, 180,019 36 Seeds, Russell M., Co 175,482 37 Westco Advertising Agency 117,488 38 Morse International, Inc. 116,448 39 Dorialiue & Coe, Inc 114,456 40 Hoyt, Charles W., Co.. Inc. 107,559 41 Wessel Co., The 103,365