Variety (Jul 1948)

WedncMlar, July 28, 194« 8S RADIO'S PEAK $38,000,000 NET Mo. Rde' Hea^ for U. S. Supreme Court as NAB, ANPA Intervene Washington, July 27. + The American Newspaper Pub- lishers Association is teaming with tlie National Association of Broad- casters to buclc the free speech and free press gag in Baltimore which resulted last week in five radio stations and a news com- mentator being cited for contempt of court. The stations:—WITH, WFBR, WGBlkf and WBAL, aU of Balti- more; and WSID, of Essex, Md.-— and James P. Connolly, Jr., news editor and cbmmentator of WITH were cited by the Baltimore Supreme Court for certain broad- ca'sts in connection with the de- fendant of the double rape and murder case. j The situation is headed for a showdown which may take it to the U. S. Supreme Court; Support of the newspaper • industry is just what the broadcasters want, since it will help to prove that broad- casters are in the same position as the press, and rate the same pro^ tection under the First Amend- ment. NAB prexy Justin Miller ' has reached out for such support ever since he has headed the broad- casters. ANPA moved in via the action of Elisha Hanson, association general counsel, who announced he was asking the ANPA board for au- thority to file a petition with the Maryland Court of Appeals attack- ing legality of the Baltimore court code. Hanson predicted that he would get such an okay, and asserted flatly that the Baltimore Code was "absolutely in conflict" with U. S. Supreme Court decisions on free- dom of the press. ■ The Hanson action was greeted with this statement by Justin Mil- ler: "We of the National Assn. of Broadcasters are gratified that the American Newspaper Publishers Assn' has joined the fight against abridgmen'; of freedom of speech and press in Maryland. "The prompt action of the ANPA to such a threat to the fundamental liberties of radio and press ;^dds to our a.ssui'ance that justice will rs%?^red'"th*afevr^fuJoVn^t^ tola. ^^^^^^ The Hard Way How to be a radio writer- director-producer for 13 weeks on .saeo: Melvin Baily, clerk in the m'ailroom at Mutual's N. y. headquarters before the war, decided he wanted to be a radio producer. Later, in the Army, he started saving his money. Back in the mailroom after the war, he continued saving, started attending night classes on radio at N. Y. Univ., and talked to people like Wyllis Cooper, whose "Quiet Please" stanza he admired. Last week Baily, now 21, took his $260 bankroll and bought 15 minutes weekly for 13 weeks on WGYN, FM indie, to showcase his talents; Preem of his series was aired Monday (26). at 10 p.m., with an N. Y. U. student cast enacting a dramatic fantasy—written, directed and produced by Baily. P.S.—This week Baily was promoted to an apprenticeship in Mutual's program depart^ ment. LOm TUXES REFLECTEi III '4J FCC Wets To Questkm Webs Oh Their 'Sales Rep' Pitd To Affiliates lStu#1BeA Humdii^er: Feltis White Sulphur Spgs., July 27. Broadcast Mea-surement Bureau prexy Hugh Feltis, again hitting the regional-meeting trail as ad- vance agent for BMB's March, 1949, survey, told the Fourth District NAB meeting here today (Tues.) that the forthcoming study will be far-and-away more useful than the 1946 No. 1 measiu-ement. For, he noted, in addition to measuring scores of new stations plus FM and television audiences for the first time, the survey most importantly will supplement sla- Washington, July 27. The year 1947 was the fattest in the history of broadcasting, with .stations and nets earning $38,000,- 000 after taxes, according to fig- ures just released by the U. S, De-: partment of Commerce. This compared with .$37,000,000 in 1946 and §25,000,000 each in 1945 and 1944. Actually the corporate profits before taxes were not tops. That peak was hit in 1944 with $72,000,- 000. In 19^5, the figure was $67.- 000,000 and in 1946 and 1947 was only $63,000,000 annually. What made 1947 so big was the lower state a(nd federal taxes. Last year was also the biggest in busi- ness done. Station time sales grossed $37»;000,000, compared with ^S!)?,000.000 in 1946; $327,- 000,000 in 1945; and $307,000,000 in 1944-. However, since many more stations have been coming on the air since the end, of the war, indi- cations are that the take per sta- tion is on the way down. Broadcasting stockholders re- ceived $13,000,000 in dividends last year, the same as the previous year, bettering the $12,000,000 for 1944, and the $10,000,000 for 1945. At the end of last year, the broad- casting companies held in bank 1 $25,000,000 in undistributed prof- its, a new record. This was up from Ithe .$24,000,000 of 1946 and the $15,000,000 of 1945. - The broadcafiting industry, ac- cording to Government figures, contributed $226,000,000 to the na- tional income, as against $212,000,- 000 for 1946 and $116,000,000 for 1945, The broadca.sters, last year, paid out 8157,000,000 in wages and salaries to, an average of 40,000 full time employees over the nation. This brought the station workers an average of 53,925 apfece. In 1946, wages and salaries of $143,- 000,000 went to about 36,000 full time employees, an average of | $3,972. Tlius, there Is an indication that salaries in broadcasting may be on the way down. Brotherly Love H. V. Kaltcnborn tells it himself. When he arrived in Philly for the GOP conven- tion he received a giiest card from the exclusive Union l^eague Club inviting him to use its facilities. He didn't get around to the club during the Repub meet, but did drop in while the Demos were in session. The club's clerk in- formed him his courtc.sy card was issued for theJ30P con- vention. Well, he asked, where could he pick up one for De^io confab? Clerk drew himself up stiffly and. replied: "We aren't i.ssu- ing any for the Democratic convention." an affair, with its overtones of Constitutional violation, has made it possible for this association and the ANPA again to make common cause. It emphasizes once again that the basic freedoms are really indi;tisible." • NAB stepped promptly in the Baltimore situation following the citations last Tuesday afternoon ---- (20) by sending Don Petty NAB | tion which believes that although general counsel, to Baltimore to I as many families in its market may consult with the station operators, listen to a distant sUtion as to the At that time, Justin Miller com-1 local station in the course of a mented: I week, more of the families listen with daily audience totals. Daily fi-equency-of-listening already has been sampled via test ballots, Fel- tis reported, and indications are that BMB will -report this informa- tion as a station's daily audience. This data, he pointed out. will ll^ug"?' .'as', week in Wjlmington make total weekly audience figures "more meaningful. It answers the needs of the small and medium sta Armstrong Accuses RCA, NBC of Lifting His Basic FM Patents Radio Corp. of Americai and its subsidiary, NBC, were named de- fendants in an infringement suit Del., federal court by Dr. Edwin H. Armstrong. The action charges the defendants with infringement of five of Dr. Armstrong's basic FM patents and also alleges that RCA has been attempting to effect a monopoly in the licensing of ra- Control of Show Lou Cowan Productions is drop- ping the Tommy ■ Dorsey disk jockey show from its list, with the maestro himself buying up the package, in a move which has two interpretations in trade circles. One is that the show isn't doing so well and Cowan decided to shake it; the other that Dorsey is merely exercising an option in the original agreement that,' if the show was successful after one year, he could buy control of it. Sum involved in the transaction isn't known. Staff of the stanza, including one of Cowan's top salesmen, will be moved over to Dorsey's N. Y. of- fices. AI Hollander, Cowan exec, will continue to supervise the show as a favor to TD. Hollander says the transcribed hour-long, eross-thc-board show is currently on between 135 and 1.50 stations, and more than 50 have already renewed for a second year, although most of their non-can- cellable 52-week contracts won't expire until Sept. S. Show is still on Radio Luxembourg also, accord- ing to Hollander, and deal is still cooking for it to go on the Austra- lian radio. . Another report is that many sta- tions have beefed about the ,^2- week non-cancellable clause and aren't renewing because they don't want to be tied down to another full year's commitment. It's re- ported almost certain that WMCA, N. v., on which the show first hit Washington, July 27. The major radio and television networks, are being called on the carpet by the FCC to answer some questions regarding their relations with their affiliates.. Hearing has been set for Oct. 25. Summons went out quietly, at the request of the National Assn. of Radio Sta- tion Representatives, a group or- ganized last year to fight the in- roads of network spot sales. FCC is concerned, it's said, with possible violations of network regulations via tie.-ln agreements between the webs and their out- lets for the sale of national spot advertising: and other commercial time. • .■■ Since there is a possibility of ex'* tension of such practices to and television, the- Commission said the hearing would consider: li Nature, scope .and 'effect of present practices and agreements lor the representation''of broadcast licensees for the- sale- of national spot advertisings 2. Whether any contract, ar- rangement or understanding l^e- twcen broadcast licensee and net- work with which the licensee is an affiliate, by which-the net se- ciu-es any rights, exclusive or non- exclusive, to represent the licen.see in the sale of national spot or any other advertising or commercial time over facilities of such licensee when not engaged in chain broad- casting are in violation; 3. If such is-not against i-egiila- tions, whether 'the-, making,, of these arrangements with nets by licens- ees are in any way contrary to the public interest and amend- ments should be made. NARSR and ABC, plus CBS, NBC, Mutual and DuMonf Were made parties to the hearing. Others wishing to participate-must file notice with the fCC- by Sept. 30. At the same time it issued the hearing call, FCC sent a letter to ABC stating it had received a number of complaints alleging ABC was makipg affiliates take all available commercial net pro^ grams under threat o£ losing af- filiation. The letter added that re^ sponsible persons, including net prexy Mark Woods, had discussed this policy openly at several meet- ings during 1947. Stations programming 1 o c a 1 shows when ABC bad a net stanza available have been sharply told to change their policy, FCC .said it was informed. The commission pointed out that this was not the picture the net had presented to itias its policy, and asked ABC to submit a complete statement of policy immediately. The question was brought up during renewals of affiliation with the air, won't renew it. This stems, it's said, however, not so much i WING, Dayton; KPRO, Riverside, dio patents, „ 1 . ii. ! f„"*h« ct-.iinn than fn the dis-1 I" ^ling the suit. Dr. Armstrong ' from dis.sati.sfaction with the .stanza ' Cal„ and'WJW, Cleveland, the .Hie Supreme Court of the i to the local stdl.on than to tiit ciis , ^j.,^^^ ^^^^^ damages and a tem-: as from a change in programming letter reported. United States already has indicated I lant station on the average day. in several decisions that the old j Experimental ballots have-shown, Ensiish rule with regard to con-1 he said, that "one station's average tempt, as practiced in Baltimore, i dailv audience may be almost as does not have proper application j large as its weekly audience, show- under the Constitution of the i ing that almost every family that concept iit this indie. Heavy ac- cent on disk, jockey shows is re- ^•jij-ed States." I listens to the station listens to it . clined to do .so." He added that as _ The Baltimore rule^ established | almost every day. Ajiother station ! a result it became necessafy 'for porary injunction pending trial of the case. In a .statement issued last week. Dr. Armstrong said that both RCA and NBC "were the firet opportiinily^o put the i ^" Vj;;|3.s"^iskjlig session slated lor new invention into use but dc- ■ ABC Denies •Coercs«Hi In New York yesterday (Tues.) portedly being tossed out the win- , an ABC top-level exec denied the given ; dow, vvith ,Duge Kllington's as well ■ w^b had in any way coerced af in 1939 by the Supreme Court of that city, forbids broadcast or pub- lication of statements an accused man makes after his arrest. It also makes it improper to comment on a pri.soner's conduct, to tell what evidence the police have discov- ered, or to discuss the accused man's past criminal record. The prisoner's picture, taken while he IS under arrest, may not be pub- lished without his permission. The rule is invoked for Uie fir.st time m the Baltimore contempt case. Don Wilson Returns To 'Variety' Radio-TV Staff Don Wilson has rejoined Variety after a year's sabbatical. He will resume-his duties as national radio and television representative with a roving assignment. Wilson left yesterday (Tuesday) for a three-week tour of midwest stations, headguarterinK in- CIu- cago. may have a far greater weekly than-; him as a private indivdual'to con- averase audience, indicating a large I sti-iict his own station at, Alpine, turnover of listeners from day to ; x. .1.. at a cost of "several hundred day and less-duplication of listen-jthou.sand dollars." ers from one day to the next." Blach Even after his station was oper- type of station, he noted, may be j ating and demonstrating FM's "su- "~ ' " "'' perior service,". Dr. Armstrong charged that both RCA and NBC ''continiied' to Show lack of inter- est in improving .the public's ra- dio facilities, and if was left to the preferred by different advertisers. Stang, Mnrray Paid Off axing. Barber, Stricken in Pitt., Cancels Olympics Trip filiates to take web feeds on-.sta-- (ion time, but he frankly admitted that the. net had had occasion re- cently tp"reroind the stations that they^i»e network affiliates and that we can't run a network when many of them refuse to clear network option time." said that many stations had „ i,^ ,^ ,. , be<?fi getting "capricious" in the Barber won t cover the ; matter and that at one point last Olympics for CBS He was felled | year, when the web was booking last Friday (23), while playing golf a good deal of new commercials. Pittsburgh, July 27. Red n..A.Un ' Alkni-l' Eftlili .small independent broadcasters to UeSpite AlDert row , Mrry on in the pioneering of PM, ivo many stations were "asking us to-let them do delayed playbacks, at times like II or 11:30 at" night, Although the CBS situation com cdy sustainer "It's Always Albert" faded last Friday (22) after a fogr- wcek run, the network found it- self saddled with eight-week con- tracts Jan Murray, who were co-featured in the program. Stang was down for $400 a week arid Murray for $250. CBS was obliged to pay them off for the re- maining four weeks. It's the first of the summer comedy casualties. here, by an intestinal attack and is under treatment at the Pres- byterian Hospital. lie was sup- posed to take off for London yes- j oi- a " wiek'iat'cr,~or"j'us"t "refusing He now estimates that there are . terday (26). ! to dear time that it did seem "nearly 600 FM stations on the | He's .sore about the untimely ail- necessary to point out to them that air in the U. S. and set production jment and feels he has let CBS ; they had certain obUgations tons." is in the millions per year." idown, but.everybody at CBS from i Once FM's success was assured j board chairman Bill Paley and by the efforts of others. Dr. Arm- | prexy Frank Stanton on down have D'ArCV^ AffCV. FOUEder. DieS w.tu "='^7""- strong claims that RCA did an been phoning him to a.ssuie him, ftvj.. w«««vi, for both Arnold Stang and i » ^.^^^^^ ^jj.^ ^ J'^ JhT^' *'!i'/^'u - ■ ■ (Slepbentaird, Of the web's Lon-, William C D'Arcy 74, who don staff and a hurdler on the . fi'unf'ed t.he DArcy Advertismg rse U. S. Olympic team, will cover Co. m 1906 and was president of the games, as.sisted by John Derr, I l^e firm from that date to 1945, Bapber',s assistant.) died. July 21. Barber's ilhicss, at first was very j His agency is best known to seriously regarded, but he's now fadio as the pilot of the gigantic on the road to recovery.' iCOea'Cola account, and "not only began manufactur- ing FM equipment on a large scale, but offered to license others to pro- duce an 'RCA' brand of FM." Plain- tiffs legal battery is Cravath, Swaine & Moore, as well as Bycrly, Townsend & Wat.son and William Prickett of Wilmington.