Variety (Apr 1939)

20 VARIETY RADIO Wednesday, April 26, 1939 FCC PROBE ENDS ON DRAMAHC mU AS MUTUAL CALLS MONOPOLY ALL TOO REAL Caldwell Resolution Asking That NBG and CBS Not Pre-NuUify Hearings by New Deals Is Called 'Gair by John J. Burns Washington, Apiil 25. Immediate ban on continuance of existing network-afliliat« contracts, pending decision on suggested gov- ernment control over chain opera- tions, was proposed to the FCC monopoly probers last weelc in a bomb-shell flnish to tbe prolonged Investigation. Explorations launched last November were concluded with Mutual seeking Federal aid in com- batting rival nets. Underlying bitterness flared Wed- nesday (17) when Louis G. Caldwell, counsel for Mutual, topped repeated complaints with a formal motion akin to a temporary injunction plea which would prevent NBC and CBS from perpetuating their competitive positions.' Resistance from the other chains did not stop the Commish panel from taking the proposal un- der advisement. No immediate ac- tion is anticipated, since the com- mittee has authority merely to relay recoinmendations to the full Com- mish with its comments and sug- gestions. Following rerappearance of Fred Welier, general manager of Mutual, and presentation of statistical evi- dence about, network operations, Caldwell startled participants by warning the Commish that prospec- tive long-term extensions of present pacts will turn the entire inquiry 'into a complete waste of effort and a farce.' Conceded there is some doubt whether the FCC can invali- date existing agreements njii^sug- gested there is a remedy in the form of a temporary regulation. Exact proposal was a rule as follows: 'No licensee of a standard broad- cast station shall enter into a con- tract, agreement, or other arrange- ment with any network organization covering or dealing with the affilia- tion .of such licensee's station with the network organization or into any renewal or extension of their exist- ing contract, agreement, or' other arrangement for a period extending beyond Dec. 31, 1940.' Action of this sort Is 'occasioned. Indeed necessitated,' the MBS attor- ney argued, 'by a state of affairs which has been disclosed by evi- dence recently heard by the Com- mittee and which, so far as I know, Is undisputed.' Reference to Welder's protests about exclusivity dauses, long-term pacts, network option time, and Inability of the newcomer to break into various important mar- kets. Status Quo to 1946 If the rival chains are allowed to extend their pacts with affiliates for another five years, present condi- tions will be maintained until 1946, Caldwell noted, and the Commish may be shorn of 'all power - and Jurisdiction to acliieve any results from this long and expensive Inves- tigation or to remedy any evils that may have been developed by the evidence.' Loud outburst from. John J. Burns, special' CBS counsel, with Philip J, Hennessey, representing NBC, back. Ing his objections. Besides chal- lenging the 'hearsay evidence' by Mutual and protesting against 'pre- judgment', ot the case, Bums de- clared the proposal is entirely Im- proper in such a proceeding. Hear- ing was a legislative inquiry, not a flght between adversaries seeking some privilege, he said. 'I would like to express amaze- ment at the gall of counsel for Mu- tual in an investigation, which was ordered by the Commission, to state In effect that his conclusions must be the conclusions of the committee and to ask for an order before a committee who has under the terms of the order only the power to in- vestigate,' CBS barrister snorted, terming the monopoly accusations false and warning that millions are at stake. Joining In the objection against Caldwell's maneuver, Hennessey said NBC had attempted to carry out obligation to make full disclosure about chain operations and main- tained his company has not sought to gain competitive advantage from the prolonged inquiry. Caldwell's action was sequel to re- turn of Weber and Elliott Roosevelt to the stand and was immediately preceded by presentation of statis- tics—challenged by CBS and NBC— compiled by Commish figure- jugglers. Weber Cries 'Cnfait' Relating the obstacles encountered in building up Mutual, Weber said the Only way his combo can get Into some markets Is with transcriptions and delayed airings, due to rivals' strangle-hold on all of tbe best out- lets, in major spots. Cited the ar- rangements made to carry the 'Lone Ranger,' 'Wheatena,' and other pro- grams. Combined discounts offered by NBC to sponsors using both Red and Blue skeins constitute a serious handicap for competitors, Weber complained. NBC, in a position to grant slices running up to 40%, has snared business which might have gone to MBS. With the two hook- ups, NBG also has freedom to carry special events without upsetting commercials, through jockeying, of stations, wliich gives it a special ad- vantage, he moaned. Extension of NBC pacts would keep MBS out of numerous markets for a long period, Weber declared. Noting 88 afiUliation agreements run out in 1941, he said Mutual realizes tbat the effort which has already been made to require stations who. have pMsent affiliations to extend their present agreement for a period of approximately five years would prevent growth. Prior complaints about excessive network options on local station fa- cilities were repeated by Weber and echoed by Elliott Roosevelt. Though they disagreed about some details of the remedy, both told the Commish that local outlets are handicapped in performing public service and other chains are cramped In reaching mar- kets by the practice of earmarking unused time. Weber listed Provi- dence, Des Moines, Bridgeport, Pliil- adelphia, Baltimore, Syracuse, Den- ver, Omaha, Cleveland, and Twin Cities among areas which MBS could not reach satisfactorily because available outlets are tied up. 'We can state very definitely that the experience with regard to re- strictions both on time and as to op- portunity to affiliate with another network has prevented any develop- ment beyond the present develop- ment of the Mutual network,' Weber summarized. With only three facilities available in many cities, the exclusive and re- strictive pacts most be eliminated if the industry is to have the maximum degree of' competition, MBS exec pointed out Stations on other webs which play with Mutual are in dan- ger of being blacklisted and boy- cotted, he charged. Boosevelt en Bine Time requirements of NBC Blue pacts are excessive, Roosevelt agreed, and the option system results in veritable transfer of control over outlets from the licensees to the webs. He termed exclusivity un- necessary, warning if the practice continues the time will come when stations will boost rates and gouge advertisers beoause demands for time will exceed the supply. In advocating ciires, the Presi- dent's son renewed his Idea of re- vokable certificates of public inter- Every Indication suggests that the summer of 1930 will be a barren plateau in the history of NBC sus- taining programs. With another economy purge ordered, the summer star is Miss Budget Talent has al- ready started inquiring about getting jobs In the Borscht Circuit hotels, or on the summer cruise boats. It's going to t>e a gala return to the good old piano-fill days of 1930, accord- ing to the dope. Certainly no pretentious series of Shakespearian programs, or any- thing of that nature, is expects. Curtailment of allotments for musi- cal arrangements, accompaniment and the usual run of program econo- He'U Find Out station reps figure that J. Davis .Danforth, head of the new busings department In B3J). & O,, has let himself In for some discomforting enlightenment, if those to whom he recently ad- dressed a circular letter answer with candor. Danforth wants to know what station reps think about the operating methods of advertising agencies so that he can use the daita so'collected in a talk that be is to make before the American Association of Ad- vertising Agencies, which con- venes at the Waldorf-Astoria ho- tel. N.Y, May 11. His topic wiU be, 'Broadcasting-Agency Rela- tions.' • In his query to reps Danforth sought to find out what the for- mer's reactions have been to the business - treatment they have received from time buyers. He inquired whether the agencies (1) demanded lengthy presenta- tions overnight (2) whether they default in verbal commit- ments, (3) whether they ask for the impossible and (4) whether the reps thought the agencies didn't present station solicita- tions in their best light to cUents. est running for Indefinite periods, and advocated licensing of webs. Weber's recommendations - were for short agreements—one or two years —along with stringent limitation on the amount of Mim optioned and a rule preventhig one company from operating more than one chain. Roosevelt doubted, however, the wis- dom of a rigid rule on time, al- though he concurred in the idea the FCC should take steps to prevent re- straint of competition through the options. As a groundwork for Caldwell's motion, DeQuincy V. Sutton, Com- mish accountant submitted a series of special computations from the statistics collected for last June's al- location hearings. Calculations made at the MBS attorney's request Analysis of figures showed that of $82,000,000 received for time sales in 1937, network stations got $13,583,000 and that of the $38,647,751 taken in by networks only $5,871,240 was from key transmitters. Of the in- dustry's net profit $18,883,000, in 1937, the webs, including their key stations, snared $8,117,000, Special breakdown showed web revenues from time sales by station groups as follows: Clear-channel, $10,621,075; regionals, $1,275,251, and locals, $1,441,542. The accuracy of these and other computations was attacked by CBS and NBC barristers, who maintained the figures collected last . spring should be allowed to speak for them- selves and who objected to soipe of Sutton's interpretations. Despite ob- jections, the special analyses were received In evidence for the purpose of throwing mor« light on the eco- nomic condition of the networks. WWL*s Audience Studio Only One in New Orleans New Orleans, April 25. New studios for WWL will be fin- ished June 1. Includes an audience studio for 260. Only station in city, with provisions for audiences during broadcasts. mies are expected. Nobody at NBC will confirm or deny the fate of the Doc Rockwell Brain Trust program which, although attracting much favorable attention, has not yet been sold to a sponsor. It has another month to go and is a cosUy sustainer. Unless and until It is sold, the so- called 'blue plate specials' designed to follow and supplement the brain trust in a campaign to make some- thing out of the weak NBC blue pro- gram schedules will probably be for- gotten. Odds are against any and all NBC projects requiring coin. Dull series of debates, oratory, re- mote pickups from places nobody cares about has already elicited tart i LAST WEEK'S ISSUE I ♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦ By BOD SEED Miami, April 29. A.P. may go commercial now that A & P isn't Moscow's planning a Radio City; no doubt for the Red Network. Kate Smith beginning _ninth year on ether. Outiasted all the Moon- Over-Mountain gags. Irene Rich and her Welch Juice sponsor ' are not getting along. Grapes of Wrathl St. Paul preachers, parents claim 'Gang Busters' just raising more material for the program.' •New dam will submerge Missouri theatre. Management has out SRO signs-swimming Room Only. Pbilly jitterbugs spree on lee cream sodas. Old. timers long for Prohibition era when kids were men. Song was phoned to London , and sold. At last a right number. AecerdtoB concert at Carnegie Hail.' Stomach Paderewsid. - Phi Beta Kappa going on radio. Forgive the thoughtl No infringe- ment on already established Drum Beta Krupa.' BLUE 175% UP ON 1938 In analyzing the business liooked for the first four months of this year the NBC'sales promotion department yesterday (Tuesday) discovered that the blue (WJZ) link's portion is 175% more than it was for the like four months of 1938. With new. and renewed business included the time bookings on the blue 'since this Jan. 1 totals $3,537,- 602, as compared to $1,285,707 for the similar period of the year be-, fore. wwj SHOWS ON wnz AND BOTH PLEASED ' Detroit April 25. 'WXYZ, which this season is feed- ing Detroit Tiger baseball play-by- plays only to its state network, has arranged to carry six of daily shows ordinarily broadcast by I^C's Red outlet here, WWJ. Latter station is carrying Tiger gataies as In former years; therefore misses NBC Red aft- ernoon shows. Arrangement not only saves WWJ plenty of dough, which it had to-pay NBC t o 'dro p commercial. programs when WXYZ also carried Tiger broadcasts as it did last year, but likewise affords WXYZ the chance it's been waiting for to serve differ- ent audience during baseball season.- Shows, which WXYZ has been able to work into its own and NBC Blue's sked, are 'Betty and Bob,' 'Ar- nold Grinun's Daughter,' 'Valiant Lady,' 'Hymns of All Churches.' 'Girl Alone' and 'Dick Tracy.' All are in the 2-5 p.m. bracket TrevlUe Lawrence new radio ed of Atianta Georgian and Sunday Ameri- can, vice Keeler McCartney, who's been shifted to sheet's editorial side. comment from the blue affiliates. WhUe NBC is believed set against wholesale letouts of the kind made a couple of years ago, and murder- ous to organizational morale, the campaign to make the 'net congenial to the gross' will presumably smack hardest in programs. Recent testimony in Washington of spokesman for the semi-quiescent but ominous Independent Radio Net- work Affiliates has re-focused atten- tion on the intermittent question of the blue. WhUe recent attacks have been concentrating on the sharing terms of station compensation, the 'quality' angle on programs has been brought up before. JACK BERTELL WITH CBS ACT DEPT. Columbia Broadcasting System is planning to revitalize its talent end again for which purpose Jack Ber- tell has been brought in to handle the CBS talents personal .bookings. The former Indle agent will still re- tain the Hartmans and Hildegarde, but otherwise will concentrate on spot-placing the Columbia names. When Ralph Wonders left CBS, Herb Rosenthal, along with Paul Ross (vaude), . Alljert Schneider (dramatic) and Mack Davis (pro- gram) handled the talent Rosenthal eventually got into the radio pro-- gram and time selling, so that de- partment drifted. As part of CBS' plan to also cre- ate new faces, a special hour, in a choice groove, will be set aside to showcase new talents dug up by Bertell, et al., these in turn to be sold: later. KIRK'S PANACEAS CITED BY FED. TRADE Washington, April 25. Listless and headachy knob-twid- dlers received warning Monday (24) from the Federal Trade Commission that products of the Kirk Medicine Co.—advertised via the radio—are not the proper cure for their condi- tion. In a complaint issued against Lou Sterling and Walter Fehr Gard- ner, distributors of the Hollywood products, Commish charged that rep- resentations of the respondents are 'gross exaggerations wlilch are mis- leading and untrue and constitute false advertisements.' Worth of 'Kirk's Tablets,' 'Kirk's Pancreatin Compound Tablets' and 'Kirk's Tablets Pancreatin Com- pound' as an alkaline neutrallzer offering instant relief for stomach upsets, *wom out feeling' back aches, listiessness, etc., was challenged by the FTC In a statement declaring that the tablets 'contain no alkaliz- ing substance and would not be a cure or remedy for the ailments named.' Representations of the company that thousands of letters had been received from users of the remedies, attesting to 'almost instant relief from their use, are untrue, Commish declared. Company was given 20 da^rs in which to answer the charges. Templeton Sub^ Fibber, Molly for Nine Weekis Hollywood, April 25. Alec Templeton, blind pianist; Billy ' Mills orchestra and Edna Odell, Chi- cago warbler, pinch hit for Jim and Marian Jordan (Fibtier McGee and Molly) "during nine weeks' summer layoff of comedy team. Likely that an emcee will be added. Cecil Underwood continues as pro- ducer and may take a brief respite in late summer. Substitute progi am takes over July 4. PluDy the Farm Town PhUadelphia, April 25. WFIL this week is embarking on an attempt to grab off part of the rural audience in farm counties sur- rounding Phllly, which WCAU dis- covered about two years ago and KYW began, aiming at .last year, WFIL is setting up a farm bureau, with BiU Gallagher, who does a couple kid shows on the outlet in charge. Daily farm news program tabbed IIFD' is being started. Crop and market reports will be aired three times dally, specials are being arranged for 4-H clubs and co- operative time-space swap deals are being set with county-seat news- papers. Baseball Vs; Education San Francisco, April 25. Educational and religious shows cancelled because of confiict with the Goodrich and (Seneral Mills-spon- sored baseball broadcasts over KGO here are being recorded oft the NBC network lines and aired later the same day. 'Our American Schools' and 'Mes- sage of Israel' are among programs which have been getting the platter treatment Starting to Yawn Early: Economy Reviving 'Piano-fill^ Days at NBC