Variety (February 1950)

BiUllO Washington^ F0b; 21, ^ The giveaway programs are fading In pdpularlty and the showi may disappear completely before the courts decide the validity of tiie ^^CC, bah, according to Commission Chairman Wayne Coy. Testifying at recent Congressional approprlatibiis hearings, trahscript of Which was made public last week, Coy Said; Two or three years ago, the giveaway programs were among the most popular bn the air. Today I do not believe there Is one of them that is In the first 15 of the top radio programs, and I would say that nearly half have disappeared. They may even disappear' completely before we are nble to litigate in court the legality of our regulation.:’-v./..- . ■ . ■ : Under questioning b: 3 f Bep. Albert Gore (D., Tehn.) who con- gratulated the FGC chairman ‘‘for taking the initiative in curtail- ing these putrid, awful giveaway shows,” Coy said that arguments on the legality of the ban may be heard in court this month. He . thought the controversy Over the regulation ”has given the public ^ some notice about those programs arid they have quit lirteriing to them.”;" ■/ •' That some ihembers of Gorigressy Would like to ban other pro- grams also was evident from the testimpny. Rep. John Phillips (R , Cal.) suggested that the Gommission *-cut out all of the come- dians who laugh at themselves;” Gore added that many listeners are' turning their sets bff “because that kind of tripe comes over the air/’ He asked whether the Gonamissiori has considered “re- quiring these deep-abdomeh, vociferous, hired -laughing partiGi- pants bn the supposedly funriyman, wisecracking shows to stay a certain distance from the microphone.” / Coy replied that even if the Commission. had authority over programs, “I do not believe we are smart enough to pick out What would satisfy the American people.” “Furthermore,” he said, “I think It wbrild be very dangerous. for seven people to haye the authority to determine what went on the air.” Coy added that “the real control of American radio is in the hands of the public. , . . People Just will riot listen to things they do hot want to hear.” Washington, Feb., 21, * . Problem of meeting government and commercial demands for radio frequencies was given high priority status last week with appointment of a special temporary Gommi^nica- tions Policy Board by President Truman to make recommendations by Oct. 31. , In a letter; to Dr. Irviri L. Stew- art, prexy of the U.nf W. Va., who was riamed chairman, the President said the most pressing communica- tibns problem at this time is the scairqity of radio frequencies in re- lation to growing demands, “Increasing difficulty,” he de- clared, “is being experienced in meeting the demands for frequen- cies domestically, and even greater difficulty is encountered Interna-: tionally in attempting to agree upori the allocation of available frequencies among the nations of the world. In the face of this grow- ing shortage, the problem of assur- ing an equitable, distribution of the available supply of frequencies among all claimants, both Govern- ment and pdivate, is rapidly as- •uming major prominence.” Among the questions the Board Is called upon to study is that of Government operation in peace- time of its own communications facilities. Indication that this vast area of radio operation may he a source of spectrum space for other (Continued on page 40) to ■ • Betty Garde, curreritly on the Coast for a Warner pic assignment, will audition , a “Tugboat Annie” series for NBC when she returns east next month. Network envisions Miss Garde as a natural for the late Mane Dressier role and it’s planned to give the show a buildup with a prominent time segment. Norriian Reilly Rairie, author of the “Annie” stories, will supervise the script- ing. To Show Radio flow Gonin/l U.S, -Paris, Feihor; Variety: • V There is a determined effort in Paris to put French radio on a higher level. And the much criti- cized commercial broadcasting in the y. S, becomes moi’c and more a source of Inspiration for FrenGh producers. : Of' course, F. R. is a closely-guarded government mb- ribpoly, and the charices of gbirig commercial for the Fi'ench radio are very slim, Bui within the framework of the actual setup, ef- ferts are being made to present to the French listening audience pro- grams which would have; a rela- tively independent presentation. They would be paid for by private sponsors, but at the same time keep away from ariy commercials. . It seems to me that the Voice Of America Could be of great value In this trial period, if it would (Ooritiriued on page 4()i) As RU Bonus Washington, Feb. 21. Reversing the usual practice, a West Virginia broadcaster plans to offer AM time as a bonus to adver- tisers using FM. In ah application filed last week with FGC for the 1450 kc frequency, Beckley News- papers Corp., which operates FM station WCFG in Beckley, said it still believes “despite the. contrary fortes now exirtent” hat FM will “ultimately” prevail as the primary system of aural radio. Beckley's a p p 1 i c a t i o n, filed through Krieger, & Jorgensen, counsel, explains it believes the bonus is; justified on the basis of comparative potential audiences of a 250 wait AM; station and a metro- politan FM outlet. Even with ah estimated 25% ownership of FM sets existing in the area, says Beck- ley, its FM station already has nearly three times fhe poteiitial listenership of Its proposed AM affiliate. Operating the only exclusive FM’er iri the state, Charies Hodel, head of Beckley, told FGC he has found that ‘‘pioneering, with but littie support and against Vested 1 interests, has little reward, finan- cial or otherwise.” He plans to duplicate his present. six-hour FM schedule on AM but program an additional 10 hours daily bn AM. Grant of the applicatibn is contiri- gerit on the frequency being va^ cated by WWNR in Beckley which has applied for a one kw station on eio^c. The hundred-odd station repre- sentatives iri the U. S. are firiding It tougher sledding^ despite the boom in national spot sales, be- cause of increasing costs. At the same time, because the reps find 'hand^ stations, about half the nation^ 2,000 AM stations are without na-. tional representatiori. Reps figure that to stay in busi- ness an 1 maintain three offices (although it takes at least five branches to cover business ade- quately); they need income of $100,000 a year^which means bill- ings of $700,0()0. * At this rate, an outlet which has less than $50,000 worth of riatibhal spot biz annual- ly isri’t worth servicing. Conse- quently, dozens of new, small or limited market broadcasters can’t get representation; This leaves the field \ wide open for new rejp outfits, which can easily sign up a large number of stations; But what dogs new), as well as some established compa- nies, is the heavy nut and high breakeven point. Costs which : are mouriting in- clude traveling expenses, sales-, men’s and office W'orkers’ salaries, office expenses, entertaining visit- ing station personnel, research, proriiotibn pieces and other serv- ices. In a buyer’s market, agencies are demanding fuller information about station coverage, availabili- ties, market data, ratirigs, audience compositioni rate structure, etc., adding to reps’ cpstS; Additionally, it takes time and effort to educate broadcasters, particulaHy those in I smaller markets, to modern com- mercial methods, Television is also adding to reps’ financial headaches and all in- volved in the new medium are los- ing on TV operations, Industry pattern requires completely sepa- rate video staffs for research and sales. Yet, due to the small num- ber of telecasters and the relative^ ly small teevee spot , billings, the take is inadequate. Reps, however, I like other sectors of the industry, appreciate the potential of TV, that Spot biz will be; even more important in TV than in AM, and are expanding their video depart- ments. One of the basic ecoriomic facts is that the number of .advertisers and agencies is growing, which raises the reps’ hut. Counterbal- ancing this, however, is the steady increase in riatipnai spot business (it constituted 26% of broadcast revenues in ’49) and bigger billing ifor the 20 major representatives. ; And the latter’s share in the .take is assured by the FGC’s firm stand (Continued on page 34) Although C. F. Hooper arid A. C. Nielsen settled for the cryptic an- nouncement yesterday (Tues.) that ^riegotiatioris are_px<iceeding^ in corinectipri with Nielsen’s takeover of Hooper’s network servlcesy the deal actually has been rtSolved. , Extenuating snags have deveir oped, however, holding, up final corisummatlori. These chiefly in- volve the lawyers for both sides and coricerri tax. situations.: Cal. State B’easters Assn. Picks Don Tatum as Proxy Hollywood, Feb. 21. Don Tatuiri, general counsel for Don Lee, has beeii elected presi- dent pf the California State Broad- casters Assii. New veepees include Merle Jones, ihanager of KnN and the Coiumbia Pacific Network, arid Williani Smulliri, KIEM, Eurelca: Harry Butcher, KIST. Santa Bar- bara, was reelected a director and Paul Bartlett, KFRE, Fresno* Was named secretary-treasurer; Hits JlBickpbt Newark, Feb; 21. Mrs, Ida Wright,’a widow, has been a regular guest on ‘Luncheori, at; the Sheraton” $ihce : the airer . started on. WnJR 39 weeks ago. William , Meyer, a widower; is a Waiter ' at the hotel, who has • been servirig participants /on the quizzer. Last week, on the air, Mrs. Wright revealed that ro- mance had. blossomed on the show, and anripuneed her en- : gagemeftt to Meyer. : NOW WNJR, the hotel and sponsor, Brookdale Beverages, are gathering gifts to give Mrs. Wright when she tackles the jackpot query,“Do jrou tak® this man, Washington, Feb, 21. FCC's proposal to stop traffick- ing in licenses, by automatically forfeiting permits where contracts to sell or transfer control have been entered into before the sta- tion begins program tests, ran into heavy opposition yesterday (2QV. Plan, was attacked chiefly on juris- dictional and policy grounds. National Assn, of Broadcasters challenge the Commission’s au- thority to adobt a blanket propo- sal, claiming the agency is re- quired by law to pass on transfers on a case by case basis. Besides, said NAB, the plan, w'ould re.sult In undue hardship in many cases without any real benefit. As a practical matter, NAB epri- tended, the proposal w o u I d not work anyway. Any permittee who intended to traffic in frequencies, it declared, could delay entering a contract for transfer until his sta- tion had completed program test.s. Thus, It added, forfeiture Would hit only the hardship cases. Pierson & Ball, counsel for. a group of 19 stations, and Haley, ■McKenna & Wilkinson, which filed its petition as a friend of the court, opposed the proposal on similar I grounds. Pierson & Ball con- i tended the Commission wants to lump “the 1 n n 0 c e n t with the guilty” for administrative conven- j ience without determinirig whether I trafficking does or does not exist. Haley, McKenna claimed that the Commission is proposing to do by rule what Congress has refused to do by .statute. If the agency could bar transfer or permits, it argiied, it c 0 u 1 .d also prohibit blanket transfer of stations w h i c h have reached the license stage.. Orie’ who supported the proposal was KBOW of Butte, Mont. The station said it had firrt-hand ex- perience recently when the holder of a permit to conrtruct ort outlet which Avpuld have been competi- tive made “diligent efforts” to sell it to KBOW. Frank Slollenwerck, an atorney, s u g g e S t e d that if the plan b adopted. It riot be made rttroactive, in fairness to those who have gone to sdin® e x p. e n s e to apply for trarisfdrs.-^’ C. E. Hopper’s ppen letter Mon* day (20) to the National Assn, of BToadcasters, Assn, of National Advertisers and American Assii, of, Advertirtrig Agencies is viewed in the trade as marking a switch from hts sharp attacks on A. C. Nielseri tu-a^^mpaign-against^The-Pulse,;- Vldeodex and other newer rating services! . Web researchers point out that since the first of the year* arid si- multarieously with Hooper’s parr leys with Nielseri arient the latter'* purchase of Of Hooper’s or* ganizatiori, Hooper has dropped his series of weekly letters charging Nielsen /with “grave iriadequ'acies; ■ “Network TV and both local radio and local TV have spawned a crop of audience surveys, .tho findings pf which are based pri a variety of unadjusted*’‘diary’ arid ‘aided recaU’, methods,” ppoper’s letter declares. He adds that these are “substaritially inflated,” and; “call upset the equilibrium” be- tween bhyer arid seller of shpws.” This charge is particularly di- rected* indUstryites feel, at Dr. Sidney RpslPW’s Pulse, which has picked up a large nuriibei' of cliehts in the local AM and TV fields, at •the same time that indie stations (arid many web keys) have dropped their Hooper subscriptions. Local field has become the main concen- tration for Hooper, inany radioites believcy because the Hooper-Niel- sen parleys riiay result in Nielseri taking over the network ratings With Hopper concentrating in tha local area, (in Gotham, for ex- ample, only WCBS buys Nielsen local reports.) Hooper's letter charges that i agencies and broadcasters are be- ing “needled” into buying reports they don't need or want arid that bankrollers “insist or imply” that agencies and broadcasters, buy data ifrom “all Services.” He/coritrasts 'this pressure with Colgate’s policy ' of putting up the choice of meas- j urement services to its agencies. Trade reaction i$ that sponsor* ' can’t compel anyone to buy a par- j ticular service, although in som* cases it riiay be a matter of sales- manship to have one or another I service. j . Arguirig that the sponsor sup- ' ports the medium. Hooper appealed .for an industry pattern of (1) ex- amining all research procedures tqi j validate or invalidate various tech- I niques; (2) probing costs of the I Various services; arid (3) examining j for •‘justification” all.experiments i projects in research. Implication of this, it’s con- (Continued on page 34) Detroit, Feb, 21. Austin Grant;. CKEW’ news c6m- mentator, is gonna hafta get up early again! For 13 years he was an early morning riewscarter for WWJ and WXYZ. When he switched to GKLW a year ago, he requested and received permission to view the news at noon. Early risers haye . iriissed him, it seems—although Grant hasn’t missed them-i-so, starting Fdb, 27 he’ll tell the riews from 7:30 to 7:45 a. m. for Mpriore Auto Equips nient Go, He’ll Also retaitt the noon prpgraiuu Joins 4 Net Stations In Hooper Checkout Merriphis, Feb. 21. : Memphis'four net station’s hay# I discoritinued the Hooper s.ervie# here for several rrionths and last ; week 4t was learned that WHHM, ’ all-night indie, has joined the web ; outlets iri nixing the Hooper biz; The Hooper field is now only cori- ‘ ducted; here for WDIA, .which has practically programmed its station for the big Negro market. Following a recent, siurvey by Hooper /Which . revealed WDIA, Memphis daytime indie, setting th# pace with listeners here in h# morning Slot across the board, the four net .outlets had another poll conducted in, January by the Rob- ert S; Conlan survey. ,. v . In the overall morning bracket, ■ WMC, NBC outlet, is in the top ' spot, followed by WMPS, ABC out- • let. WREC, CBS station, is in th# [third slot; WHHM. indie, fourth; j Mutual WHBQ’s is in the fifth slot, land WDIA iii a puzzling sixth /place, according to Gonlart, Th# ■ morning Gorilan survey shapes up ! with WREC at the top of the heaip^ ; followed by WMC* WMPS, WHHM, WDIA* oricO again iri a surprising 1 fifth spot, and [WHBQ in the cellar.