Variety (Dec 1941)

82 RADIO 'Wedneedaj, December S, 1941 IRNA ANSWERS NAI 'RESULTS' BOASTS BY CITING rrS OWN; MEANTIME IT SLUMBERS ■♦r IRNA Not Dissolving But Its Continuance Is a Decision for Broadcasters to Make by Cleveland Convention Next May, Statement Declares On the heels of the Chicago meet- ing a fortnight ago which resulted in the organization of Network AfTili- ates, Inc., is a.radio trade association rival to the Independent Radio Net- Vvork Affiliates, Inc., the latter (IRNA) issued a statement dated Nov. 28 at Philadelphia, home town of Sam Rosenbaum. This statement answered boasts of NAI of having quickly obtained 'results' in tl»c form of ASCAP adjustments of clauses, clearances and in other v/ays.. Partisans of the NAI have kept up an active campaign to arouse en- thusiasm and induce memberships. NAI is calling itself potentially the most powerful station group in broadcasting, a natural and enlarged successor to IRNA which it calls 'dis- credited and no longer 'useful in negotiating with networks.' >IAI leadership seems to merge with, if not synonymous with, the latent criti cism of the National Association of Broadcasters * itself. Here again is the oft-repeated cry against 'network domination.' Instead of NBC this time the whisperings are of CBS' 'power.' Admittedly the whole network- affiliate political situation just now is more than ordinarily muddled. With more or less the usual divisions of parties according to self-interest. Tlie newer figure of Eugene Pulliam, president of WIRE, Indianapolis in fronting for NAI is explained by the trade politicians as due to his suspi- cion of WLW, Cincinnati, chief advo- cate and most plausible first bene- ficiary of super-power, if again sanc- tioned by the Federal Communica- tions Commission. Verbatim report issued last week by IRNA reads as follows: CCOPY) TO ALL AFFILIATE^: A report from IRNA appears to be in order at this time. The ASCAP negotiations are prac- tically concluded. The network regulations have become a matter for, determination by the courts. During the past year IRNA re- ceived dues from 140 adiliate sta- tions, in Touild figures approximately $10,000. Of this sum approximately one-third was expended in traveling expenses for directors, one-third for printing, postage, telephones and other operating expenses, and one- third for fees and prirt^mg costs in- curred in the Monopoly hearings. No salaries were paid except trifling items for clerical help. Reviewing the work of IRNA IRNA's influence was largely instru- mental in acceptance by the net- works of the portions of the Code reducing the length of commercial copy. In the creation of BMI, IRNA was ti potent factor in obtaining the sup port of affiliates for that enterprise which was vital of its subsequent unqualifled success and without which the substantial victory in the ASCAP negotiations could not have been achieved. In the negotiations for the present ASCAP - contract, IRNA. obtained among others, two provisions which will save affiliates hundred of thousands of dollars annually during the life of the contract. They are: 1. We got a reduction o/ the local blanket commercial fee irpm 2%% the jicticorfc rate urhicli mas first fixecTty ASCAP as the station rate, to 2Vi7o, the rate now avail able to all stations. 2. We got an allouionce of 15% which every station can deduct from its gross local business be- fore applying ASCAP tax, repre- senting the cost of making sales, a deduction uhtch previously had been allowed only to the networks. These two deductions represent a total saving of .84% out of the origi- nal 2.75% requested by ASCAP, making the net cost .1.91% for an ASCAP local blanket commercial license. This is therefore 30% less than would have been paid by all stations for a local'blanket commer. cial ASCAP license if IRNA-had not stepped in according to F.C.C. figures for 1940, total sale of station non- network time was, in round figures $82,000,000. • Probably, well . over $70,000,000 of this was subject -to- ASCAP tax. On this basis we have saved the stations of the country In excess, of $600,000 per annum, assuming the blanket license basis for all. This Is a tangible accomplishment worth recording. In- view of the wholly nominal cost of IRNA to the affili- ates. Furthermore every station shares In this benefit, whether af- filiated o> non-affiliated, and regard- less of membership in IRNA. ' As against these concrete accom- plishments the IRNA Network Nego- tiating Committees undertook their work earnestly but accomplished practically nothing on such subjects as station-breaks, option hours, and some other operating practices. This was because of the failure of the networks to realize what they could gain by treating with the stations on these subjects. This failure was partly due to competitive conditions. To some extent this may account for part of the Monopoly regulations. One of the networks has now recog- nized the importance of this field of endeavor by forming committees of its own affiliates to perform a-.part of this same function in its two net- works. It is our hope such commit- tees will prove effective in these efforts. However, the work that has been done by IRNA has made very con siderable demands upon the time of its officers. For some time these of- ficers have been requesting, to be relieved on the ground that they are unable to continue to devote the time required toward carrying on such duties. At a meeting of the Board in Chi- cago on Nov. 25, 1841, the officers again requested to be released, but at the urgent request of the Board have again deferred formal resigna- tion until the-Cleveland Convention in May, 1042, with the understanding, howeveq> that they atk unable, dur- ing the Interim, to function actively. In fhe meantime unless some emergency of national character re- quires resumption of activity by niNA,, the board sees no reason to propose to Affiliates the exptnse of maintaining permanent counsel or a paid staff. Pending final decision at the convention, IRNA v^lU therefore, without dissolution, remain quiescent unless an emergency should arise. BOARD OF DIRECTORS Martin B, Campbell, £du)in W. Crotg, Mark Ethridge, Don S. Elias John A. Kennedy , I. R. Lounsberrv, Paul W. Morencu, Charles W. Myets, George W. Norton, Jr., Samuel R. Rosenbaum, L. B. Wilson. Florida Gtrus May Cat Radio, Now Over Budget . Blackett - Sample - Hummert may have to cut down on the ipot broad- casti^ig schedule that It had laid out for Florida Citrus because of the- agency's discovery that the expendi- tures already allotted in various me- dia have gone over account's budget Spot campaign as suggested by the agency calls for the- crowding of five announcements into a' station's Thursday or Friday schedule end a run of 20 weeks. Some of tiie spot contracts started last week (24). William B. Ohle, new to staff of Needham, Louis and Brorby, Inc., Chicago. iOOth Anniversary of the Philhamtonic-Symphony Society of New YoM Broadcast exclusively for the past 12 years