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Heinl Radio Business Letter
2400 CiVLIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF JULY 7, 1939
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193^
House Resolution Asks Power Above 50 KW . 2
FCC Rejects Plea For Broadening S-W Hearing . 4
Thompson, Howland Named Executives Of Zenith . . . 5
Large Registration For NAB Convention . 6
FCC Explains Rules On Nighttime Power . . . 7 -
Three Major Nets Boost Time Sales In June . 7
Controller Puts Ban On Ra.dio Recordings . 8
Three Networks Net $9,307,735 From Radio In 1938...., . ..9
Five Stations Sign FTC Stipulations . 9
Trade Notes . 10
Man Held In Flamm Extortion Attempt . . . . . .IS
No. 1138
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HOUSE RESOLUTION ASKS POWER ABOVE 50 KW.
Declaring that rural communities will not get adequate
radio reception so long as radio power it limited to 50 KW. ,
Representative Larrabee (D. ), of Indiana, this week introduced a
resolution in the House to direct the Federal Communications Com¬
mission to make a study of super^power broadcasting and mean^ile
license a few such stations.
The resolution is directly contrary to the resolution
adopted last session by the Senate and influential in the recent
action of the Commission denying requests that super-power sta¬
tions be licensed. Present FCC rules bar any regular broadcasting
with more than 50 KW
♦
The Larrabee resolution follows?
'•Whereas the Federal Communications Commission in its
report on proposed rules governing standard broadcast stations and
standards of good engineering practice has made new rules and regu¬
lations to provide increased radio service to urban listeners with¬
out taking any measures to improve service to small towns and rural
listeners leaving the implication that no solution of this problem
is being sought; and
"Whereas the report of the Federal Communications Com¬
mission lists in detail the many possible advantages of high-power
operation in the standard broadcast band, particularly to people
living in small towns and rural areas; and
"Whereas the new rules governing American international
short-wave stations prohibit the use of power less than 50 kilo¬
watts in order to provide better service to foreign listeners while
conversely other rules governing stations serving our own people
within the continental limits of the United States are prohibited
from using power in excess of 50 kilowatts; and
"Whereas the Federal Communications Commission in its
report has reached the conclusion that because of the inadequacy
of data on the social and economic aspects of hi^-power operation
in the standard broadcast band (550 to 1,600 kilocycles) no provi¬
sion should be made to permit the operation of standard broadcast
stations with power in excess of 50 kilowatts; Therefore be it
"Resolved, That it is the sense of the House of Repre¬
sentatives of the Congress of the United States of America that
the Federal Communications Commission should take such steps as
may be necessary to provide an adequate method to obtain data and
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other factual information and material necessary to determine the
social and economic effects of power in excess of 50 kilowatts
and that in so doing the Federal Communications Commission shall
not be restrained from licensing one or more than one station or
stations to operate on power of more than 50 kilowatts for such
experimental operation as may be thus necessary. ”
Explaining the resolution to the House, Representative
Larrabee said:
"It is a strange paradox that the very people to whom
radio can mean the most and to whom radio offers most are the same
people ^0 receive its benefits least satisfactorily. With city
reception having been improved year in and year out for many years,
has not the time come when we should consider meeting this issue
squarely and fairly rather than attempting to solve the problem by
ignoring it? We are certainly glad and delighted that even a low-
salaried wage earner in many medium - and large- sized cities -
can secure the best in radio by going to the comer drug store
and buying a set at ^9.99, but the day will come when those of us
who have been chosen to represent the people will have to explain
why we have fostered rules and regulations on the part of an
administrative body which forces our country and small-town people
to pay $50 and $100 for receivers needlessly - when by the sii^le
expedient of providing them, as is done in other countries, with a
signal somewhat stronger, the expense is placed squarely on the
shoulders of the broadcaster, where it belongs, and not on the
already overburdened pocketbooks of our citizens. There are many
parts of the country where even the most expensive sets cannot be
substituted for an inadequate signal.
"Despite the Commission’s finding of fact that from a
technical and economic standpoint high power is not a Franken¬
stein, the Commission has arbitrarily refused to relax its regula¬
tions and permit progressive American broadcasting stations to
compete with stations in Mexico, Cuba, France, Germany, England,
and Soviet Russia which now operate with power not fixed at 50
kilowatts, but running even beyond 850 kilowatts. Some of these
countries which use power in excess of 50 kilowatts cover less
area on the map than the State of Indiana, yet the whole United
States, from the Atlantic to the Pacific and from the Great Lakes
to the Gulf of Mexico, is denied this type of radio reception,
"That high-power stations would not create a monopoly
in the air has ably been demonstrated by facts which were part of
the records and have been at the Federal Communications Commission
since 1922. In those years, when existing radio stations made an
attempt to increase their power from 20 to 50 vatts, competitor
stations raised a cry of "super-power". The same cry spread when
stations were generally advanced from 500 watts to 1 kilowatt.
Again, when station owners prepared to increase power to 5 kilo¬
watts, it was generally pointed out that this would create a
monopoly of the air. Of course no such thing occurred, and will
not occur in the event the Commission decides to permit the use of
power in excess of 50 kilowatts. The term * superpower' is only
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7/7/39
relative - for example, 50 kilowatts* power is less power than
that delivered by a single low-priced automobile engine; 500
kilowatts' power equals only that developed by one Douglas air¬
plane engine. It will result, however, in a radio parity that
will put rural areas more nearly on a par with the metropolitan
districts of the country and furnish to listeners in the United
States generally a program excellence that is now only attained
in the huge metropolitan areas.
"I am convinced in my own mind that the very phrase
' superpower* as applied to broadcasting stations has created a
complete misconception in the minds of many as to its meaning. If
the Commission's so-called superpower report had been termed, as
it might well have been, 'Report on means of improving rural and
small-town radio reception', an entirely different reaction to
this report might have been indicated on the part of the Commission
itself, ”
XXXXXXXXXX
FCC REJECTS PLEA FOR BROADENING S-W HEARING
The Federal Communications Commission this week rejected
flatly the petitions of international short-wave broadcasters and
the National Association of Broadcasters that the hearing scheduled
for next Friday be broadened to include all of the recently pro¬
mulgated rules governing international broadcasting.
The requests were made by the Columbia Broadcasting
System, the Crosley Corporation, General Electric, the Isle of
Dreams Broadcasting ‘^orp. , National Broadcasting Company, WCAU
Broadcasting Company, Westinghouse Electric & Manufacturing Co. ,
and NAB.
said:
Explaining its decision the FCC in a formal statement
"The Federal Communications Commission, having hereto¬
fore granted a request for a hearing from the American Civil
Liberties Union on Section 42.03(a) of the International Broad¬
cast Rules adopted by the Commission, and having set such hearing
for July 12, later postponed to July 14, concluded to confine the
hearing to the issue directly designa^ted in the petition of the
American Civil Liberties Union, although other petitioners sou^t
to enlarge the issues and to postpone the hearing set for July 14.
These later petitioners will have ample opportunity to be heard
subsequently, on any other issues in the Rules governing Inter¬
national Broadcast Stations as adopted should they so desire.
Therefore, the hearing on Section 42.03(a) will be held as set
for 10 o'clock, July 14."
XXXXXXXX
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THOMPSON, HOWLAND NAMED EXECUTIVES OF ZENITH
Appointment of Sylvester T. Thompson as Vice-President
and John R. Howland as Assistant to the President of Zenith Radio
Corporation, Chicago, was announced this week by Commdr. Eugene F.
McDonald, Jr. , President.
Mr. Thompson has been with Zenith since June, 1938, and
has devoted his time largely to developing the export sales and
merchandising, while Mr. Howland was formerly Assistant Secretary
of the Philadelphia Storage Battery Co., Philadelphia.
For seventeen years, Mr. Thompson has been a well-known
figure in the radio industry. He has watched the industry grow
from the crystal set stage into the present complex state with
its multiplicity of problems. He served the Radio Manufacturers’
Association as a Director and has been Chairman of its Export
Committee for five years. As a member of the Executive Council
of the South African Reciprocal Trade Committee, he represented
the industry in its fight against propaganda detrimental to the
importation of American merchandise into South Africa. For a
period of fifteen years he was a member of the Society of Auto¬
motive Engineers and at present is a member of the Institute of
Radio Engineers and the Re.dlo Club of America.
Prior to joining the Zenith organization, Mr. Thompson
was Executive Vice-President and Director of the manufacturing
subsidiary of Kolster Ra.dio Inc., and Manager of Federal Telegraph
Company, both of Newark, N. J. These companies were owned and
operated by the International Telephone & Telegraph Company. Sub¬
sequently, he became Vice-President, General Manager and Director
of Pilot Radio Corporation, Long Island City, N. Y. , and contribut¬
ed immeasurably to the success of that company in the domestic
and overseas markets.
Mr. Howland brings to his new work a well-grounded ex¬
perience in sales, patent investigation, labor matters, and public
relations. He is a member of the Patents and Trademark Committee
of the National Association of Manufacturers and the Trade and
Commerce Bar Association of New York, p,nd a graduate of U. S.
Naval Academy at Annapolis.
Prior to his association with the Philadelphia Storage
Battery Company, Mr. Howland served as Deputy Administrator under
the NRA and in that work had considerable contact with the prob¬
lems of the ra,dio industry. He administered this rather difficult
and unpopular task in a courteous and diplomatic manner which
retained the friendship of all those business executives with whom
he came in contact.
For a number of years, Mr. Howland has served on import¬
ant committees of the Radio Manufacturers' Association and has
acted as spokesman for his former employer,
xxxxxxxx
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7/7/39
LARGE REGISTRATION FOR NAB CONVENTION
The seventeenth annual convention of the National
Association of Broadcasters and the first since its reorganiza¬
tion, has attracted the largest number of advance registrations
in the Association’s history, NAB stated this week. The meeting
will open next week in Atlantic City.
While many and diverse subjects will be considered by
the broadcasters, two stand out in importance: the report of the
Code Committee and the report of the Copyri^t Committee.
The convention will be addressed by Carl Milliken,
Secretary of the Motion Picture Producers and Distributors of
America, Inc. , who for the past seventeen years has been in charge
of the motion picture industry's code of self- regulation. Elmer F.
Andrews, Wage and Hour Administrator, will address the convention
on Wednesday morning, July 12th, as will Dr. John W. Studebaker,
U. S. Commissioner of Education; and Orrin E. Dunlap, Jr., Radio
Editor of the New York Times, nho will talk on "Television".
Though the convention does not officially convene until
Tuesday morning, July 11th, meetings and social activities will
begin on Sunday morning, July 9th. On Sunday, also, the Board
of Directors will hold a dinner meeting; and at two o'clock the
Research Committee will hold a pre-convention meeting. The annual
golf tournament will begin at ten- thirty, Sunday morning.
Group meetings of the clear channel stations, the local
channel stations, and the National Association of Regional Broad¬
cast Stalions, will be held Monday morning. In the afternoon,
the IRNA group and the National Committee of Independent Broad¬
casters will meet. Later in the afternoon there will be a demon¬
stration of television, followed by a discussion of radio engineer¬
ing problems by John V. L. Hogan, Chairman of the NAB Engineering
Committee.
The Bureau of Radio Advertising will hold a luncheon on
Monday in conjunction with the NAB Sales Managers’ group. Luncheoi.
will be followed by a report on sales management policies by Dr,
Herman S. Hettinger, and a forum discussion of various sales probl¬
ems.
The convention will be called to order at nine- thirty
Tuesday morning. President Miller will make his annual report
during the opening morning session. In the afternoon the Code
Committee’s report will be presented and discussed. This will
be a closed membership meeting,
xxxxxxxx
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7/7/39
FCC EXPLAINS RULES ON NIGHTTIIE POWER
The Federal Communications Commission announced this
week that final action would be deferred on all pending applica¬
tions requesting nighttime operation on regional frequencies which
would involve serious interference problems if other pending
applications requesting the use of 5 KW power on such frequencies
are granted. The pending applications requesting the use of 5 KW
power at night will, under the Commission's new rules which become
effective August 1, no longer be inconsistent with the rules limit¬
ing maximum power for nighttime operation on such frequencies.
The Commission's new rules and regulations governing
standard broadcast stations, which were adopted by the Commission
on June 23, provide for maximum pennissible night-time power of
5 KW on regional channels. The present rules limit such power to
1 KW. Applications affected by this action of the Commission fall
into three classes: Those which have been set for hearing but not
yet heard, those upon which a hearing has been held but no deci¬
sion rendered by the Commission, and those upon which a decision
has been rendered and are now pending on a petition for rehearing.
As to those applications which have not yet been heard, an addi¬
tional issue will be inserted in the notice of hearing concerning
the Interference problem with pending 5-KW applications, and, there¬
after, the applications will be heard in regular course. As to the
applications on which a hearing has been held and applications
pending on petition for rehearing, a further hearing will be order¬
ed on issues related to the interference problem created by pending
5-KW applications,
XXXXXXXXX
THREE MAJOR NETS BOOST TIME SALES IN JUNE
The Columbia Broadcasting System grossed $2,860,184 in
time billings last month, which sum is 34.8^ better than the turn¬
over for June, 1938. It's the biggest percentage gain that the
network has had since August, 1937. The National Broadcasting
Company's time billings for this June amounted to $3,382,404, an
increase of 5.7^ over the tally for the like month of 1938. As
compared to the first six months of last year, CBS is now ahead by
a 8,6^, while NBC's margin is 7.5^.
Mutual last month did $228,186, or 11^ over the previous
June’s gross. Of the total billings accumulated by NBC this June
$2,624,657 is credited to the red (WEAF) link and $757,747 to the
blue (WJZ) network.
In June 1938, NBC's billings were $3,200,569, while the
year before they figured $3,003,287. Columbia took in $2,121,495
for June 1938, and $2,476,567 for June 1937.
XXXXXXXX
- 7 -
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7/7/39
CONTROLLER PUTS BAN ON RADIO RECORDINGS
A decision by Controller General Fred H. Brown this week
temporarily blocked plans of the National Emergency Council to dis¬
tribute radio recordings of governmental activities on the same
basis as talks by Cabinet members.
The Controller General ruled that the Veterans Administra¬
tion has no authority to^ spend $200 to make the recordings. He
pointed out that the NEC/§lanning to handle the series of programs
for the Veterans Administration and other independent agencies.
Almost simultaneously Westbrook Pegler, newspaper column¬
ist, put out a blast against the NEC distribution of ''canned
speeches” in his copyrighted syndicated column.
Declaring that the press probably would have to come to
the defense of radio stations to establish freedom of the air,
despite an economical rivalry between the two mediums, Mr. Pegler
said:
"There is a difficulty in the fact that the air belongs
to the Nation, so to speak, and therefore must be subject to Govern¬
ment regulation. That much is not disputed, but it does not mean
that the air belongs to the New Deal any more than it belongs to the
Republic Party. But in using the radio for New Deal propaganda the
Administration puts itself in the position of a trustee who uses
his authority to promote his own interests and impair the interests
of the trust. For certainly if radio is allowed to live under frank
or implied coercion it loses that purity which the President found
so admirable - indeed, its chief virtue.
"But radio itself lives in a state of fear and political
jitters. Individuals in the business may pretend to admire the
commission and its methods, but they are open to the obvious sus¬
picion that they are playing ball with the New Deal for the advant¬
age which it will bring them in the form of valuable official favor,
"Others realize that the industry lives under a threat of
partisan political discipline and looks to their economic enemy, the
press, for help in a fi^t for independence, afraid, however, to
speak for publication or appear anywhere in the picture except as
confidential informants on matters which radio dares not appeal to
the public over its own medium.”
xxxxxxxx
In an attempt both to counteract propaganda by foreign
countries and to garner a larger audience for its own news inter¬
pretation, the German Propaganda Ministry announced this week that
henceforth there would be news broadcs>,sts daily both in the Polish
and Ukrainian tongues.
XXXXXXXXXX
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7/7/39
THREE NETWORKS NET $9,307,735 FROM RADIO IN 1938
Additional statistical data released by the Federal Com¬
munications Commission this week disclosed that the three major
networks - CBS, NBC, and MBS - earned a combined net revenue of
$9,307,735 from broadcast services in 1938. The study does not
show how this profit was apportioned among the networks.
From network operations alone the networks earned only
$4,349,446, the chart shows, whereas $4,958,289 was derived from
23 managed and operated stations. Nine key stations, the report
discloses, earned $2,549,987 or more than the other 14 non-key
stations, which had a combined net income of $2,408,302.
Total time sales of the networks and managed stations
were $68,123,525, of which $54,938,879 was handled directly by
the networks.
Total program expenses for the nets and stations amounted
to $17,933,405 and technical costs accounted for $3,898,202. Ad¬
vertising and promotion took $3,621,962, and administrative expenses
were $4,497,084.
xxxxxxxx
FIVE STATIONS SIGN FTC STIPULATIONS
Five Western and one Southern broadcasting stations have
entered into stipulations with the Federal Trade Commission to dis¬
continue certain advertising practices in connection with the sale
of their facilities.
The respond-ents are Intermountain Broadcasting Corpora¬
tion, operating station KDYL, Salt Lake City, Utah; Lamar Life
Insurance Company, station WJDX, Jackson, Miss., Mosby's, Inc.,
Station KG-VO, Missoula, Mont., Woodmen of the World Life Insurance
Society, Station WOW Omaha, Nebr. ; KFRU Inc., Station KFRU,
Columbia, Mo., and Minnesota Broadcasting Corp. , Station WTCN,
Minneapolis.
The respondents agreed to cease representing, directly or
by implication, that their respective stations have a certain power
unless that power is actually used by them during the entire broad¬
casting period, or unless it is clearly explained in direct connec¬
tion with each representation that such power is authorized and
used only during certain specified hours.
According to the stipulation, all but one of the res¬
pondents advertised, without qualification, their stations as hav¬
ing 5,000 watts power, which, it was agreed, might mislead some
prospective purchasers of radio facilities into believing that
such power was continuous when in fact the power authorized for
use and used in each instance was 5,000 watts during the day only
and was limited to 1,000 watts at night. In the case of KFRU,
Inc., the power advertised without qualification was 1,000 watts
when in fact 1,000 watts was used by day and 500 watts at night.
XXXXXXXX
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( ' ;
7/7/39
TRADE NOTES
Appointment of Donald Davis, stage and motion picture
writer, to the television staff of the National Broadcasting
Company was announced this week at Radio City by Thomas H.
Hutchinson, Manager of NBC's Television Program Division. Mr.
Davis will be television' s first staff script writer.
"The National Labor Relations Board has made an order
based upon a stipulation requiring Isle of Dreams Broadcasting
Corporation and Miami Daily News, Inc. , Miami, Florida, to bargain,
upon request, with the American Federation of Radio Artists
(^. of F. L.). The stipulated order also provided for reinstate¬
ment with a payment of $500 to Earle Barr Hanson, an employee
who had been discharged. Charges of unfair labor practices
against the companies were filed by the AFL radio artists' union.
"The Human Adventure", an experimental weekly educa¬
tional series dramatizing the link between the American university
and man's future, is to be prese^ed by Columbia Broadcasting
System in cooperation with University of Chicago for a limited
period beginning Tuesday, July 25, from 8 to 9 P.M. ,ED3T. Basic
idea of the programs is to dramatize great contributions of col¬
lege research to the world's welfare and progress. Leading
educational institutions of the country, together with outstanding
scholars and scientists have offered their full cooperation.
"Current estimates mention that it is costing NBC $1
a day per television set now in use in the New York area". Variety
reports. "This figure takes in cost of program schedules. Also
expected that this cost will increase as the number of programs
increase. Number of sets now in use in the N. Y. metropolitan
area is placed at around 500."
Broadcast service to Latin America, Asia, and the
Antipodes from General Electric's West Coast shortwave Station
W6XBE, located at the Golden Gate International Exposition on
Treasure Island, San Francisco Bay, has been practically doubled,
as of Jime 24th, it was announced by C. H. Lang, Manager of
Broadcasting of General Electric. Mr. Lang also annoimced tha^t
the company's short-wave sta.tion W2XAF at Schenectady had added
10 additional hours to the existing weekly schedule of programs
for the Spanish- speaking listeners in Latin America. W2XAF oper¬
ates on 9,530 kilocycles or 31,48 meters.
10 -
7/7/39
Direct radio telephone communications between Switzer¬
land and the United States, scheduled for the month, has been
delayed indefinitely by the destruction by fire Thursday of the
new short-wave station recently constructed at Schwarzenbad by
the Swiss Government. The damage was estimated at more than 1,000-
000 Swiss francs. The Swiss authorities have started an investi¬
gation, The new station was completed only a few days ago. At
present telephone calls between the United Sta,tes and Switzerland
are routed through London.
To assist amateur television enthusiasts and experi¬
menters in furthering television development, the Radio Corpora¬
tion of America has made available a number of parts used in
modern deflecting circuits in television receivers employing
RCA Kinescopes. Mounting interest in television among amateurs
in the areas where programs are available, or soon will be, has
brought many requests that the parts be placed on the market.
Appointment of Keith Kiggins, Manager of Station Rela¬
tions for the National Broadcasting Company, as Director of the
Ni^C-Blue Network vjas announced this week by Niles Trammell,
Executive Vice-President, to whom he will report. Responsibility
for the operations of the sales, program, promotion, stations and
press departments. Blue Network activities of which will be
coordinated by Mr. Kiggins, will remain with the various depart¬
ment hea.ds, who will continue to report to the Executive Vice-
President,
Bloomingdale * s. New York City, in collaboration with
Audio Productions, Inc. , and the American Television Company,
will present the first of a series of merchandising television
shows, to be known as ’’Tele visuals”, early in July, I. A. Hirsch-
mann, Vice-President, has announced. Audio Productions, Inc. , has
prepared a motion picture, featuring Barbara Lee fashions, G-uardiar
shoes and Tot' s clothes, which will be television through a self-
contained system in the store. Audio has registered the name
"Televisuals” and will make a series of short commercial films in
conjunction with American Television, to be shown in stores through¬
out the country.
William Kostka, Magazine Editor for the National Broad¬
casting Company, has been appointed Manager of the NEC Press
Division. The appointment is effective immediately, with Edwin
P. Curtin continuing as news editor of the division, Richard G.
Spencer as night editor, and Leonard W. Braddock as Manager of
the Audience Inquiry Division,
XXXXXXXX
11 -
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7/7/39
MAN HELD IN FLAIvU/i EXTORTION ATTEMPT
Charged with suspicion of attempting to extort $7,500
f]rom Donald Flamm, President of Station Wi/ICA, New York City, to
call off the pickets 7:ho have been parading Sunday afternoons in
front of the station, a man described as Allen Zoll, 43 years old,
of 60 East 67th Street, was held in $5,000 bail this week before
Magistrate Richard F. McKinery in Felony Court. A hearing was
set for Friday.
Zoll, who denied the accusation, was said by Detectives
Edward D. Fitzpatrick and Joseph Petrosino of District Attorney
Thomas E. Dewey' s office to have taken $200 in marked money from
Nr. Flamm, the New York Times reported. Zoll said the money was
paid to him as salary as a sales consultant to get rid of the
pickets.
Every Sunday afternoon since last December 18th, pickets
have demonstrated in front of the radio station, protesting that
the Rev. Charles E. Coughlin, of Detroit, was barred from use of
the station’s facilities after a broadcast allegedly linking Jews
with communism.
Zoll was said by the detectives to have been observed on
the picket line for a time. At the peak of the demonstration as
many as 2,000 pickets marched in front of the station. Recently
the number has varied between 350 and 500. It wa.s said that Zoll
had represented himself as a Protestant and against barring the
priest from the air. The detectives said Zoll had told the police
on duty at the demonstra.tion that in the future he would lead the
picketing.
According to the charge, Zoll approached Mr. Flamm recent¬
ly with a demand for $7,500 and by arrangement went to the Hotel
Lexington Friday. When Zoll arrived Detectives Fitzpatrick and
Petrosino were with Mr. Flamm, and when Zoll allegedly accepted
the marked money he was arrested.
xxxxxxxx
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Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
TO ISSUE OF JULY 11,
1939.
NAB Proposed Code Revised; Big Convention Opens . 2
Professional Women Urge Woman Member Of FCC . . 3
Canada To Allot Free Radio Time In Elections . 3
Virginia Absolves WJSV Of State Tax . . . 4
Press-Radio Feud To Be Aired At Bellingbam . 5
Industry Loses Colorful Figure In "Sport Herimiann . 6
Finns Building 100 KW Station For Olympic Games . 7
Tests Show Radio Better Than Teacher . 8
New Radio Tried In Indian Villages . 8
Charlie Mows ’Em Down At World’s Fair . . . 9
Trade Notes . 9
Indictment Returned In Flamm Extortion . 10
Drop In British Licenses Disturbs Industry . 10
Zenith Gets Patent On "Wavemagnet " . . 11
Australia To Make Own Transmitting Valves . 11
No. 1139
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July 11, 1939.
NAB PROPOSED CODE REVISED; BIG CONVENTION OPENS
Drastic revisions in the proposed Code of Ethics for
the Broadcasting Industry have been made since the proposal was
released a few weeks ago by a Special Committee, it was disclosed
this week as the National Association of Broadcasters opened one
of its largest conventions at Atlantic City.
Consideration of the Code for self-regulation was one
of the first important tasks of the broadcasters, who convened
Monday morning. Debate and probably final action on the code was
scheduled to be taken late today (Tuesday).
The new proposals, approved by a Committee on Standards,
eliminates many of the bans placed on radio material by the same
committee three weeks ago.
The most significant change proposed will remove the
earlier plan to force stations to refuse to sell radio time 'for
discussion of Issues arising from strikes. The new plan also
reverses the Committee's previous objection to continuing the
practice of selling program time to religious groups and denomina¬
tions.
It provides that stations carrying broadcasts on contro¬
versial issues must provide opportunity for equal discussion of
both sides of the topic, but will leave individual stations to
decide when their programs are controversial.
The new code will be presented for discussion and action
at a meeting of the convention's 400 delegates this (Tuesday)
afternoon. Many members had objected that the original code was
too detailed in its limitations on individual stations.
The code, a statement of general principles governing
radio presentation of advertising, entertainment, news programs
and controversial speeches and discussions, is intended to bind
the 422 member stations of the NAB to practices which are ethical
and in good taste.
Changes also were made in the definitions of standards
of practice which accompanies the code.
The code was expected to find opposition on the conven¬
tion floor. Operators of smaller Independent stations charge the
code has been dictated by major radio networks and large independ¬
ents. Similar questions were raised by owners of stations affiliat¬
ed with the networks.
- 2 -
7/11/39
A sectional meeting attended by the group representing
some 100 stations owned and operated by newspapers voted to put
up a vigorous defense against the demands of the American Society
of Composers, Authors and Publishers in the negotiations for a
new contract.
xxxxxxxx
PROFESSIONAL WOMEN URGE WOMAN MEMBER OF FCC
President Roosevelt was asked this week by delegates of
the National Federation of Business and Professional Women, meet¬
ing in Kansas City, to appoint a woman to membership on the
Federal Communications Commission,
Miss Myrtle Ellen Labarr of Greensboro, N. C., offered
the motion, which was passed by acclamation at the opening busi¬
ness session in the Municipal Auditorium,
As a qualifying phrase. Miss Labarr specified a "busi¬
ness or professional woman" in the draft of the message she sub¬
mitted to the convention. Her preliminary recommendation of the
action emphasized that women make up so vast a proportion of the
public whose interests are the concern of the Commission, that
they should be officially represented, especially in decisions on
radio programs. The designation of an experienced woman aligns
the proposal with the organization’ s expressed policy of "more
qualified women in public office".
There are at present no vacancies on the FCC, but
should Chairman McNinch be transferred to another agency or retire
from public life, as has been rumored frequently, vacancy will
occur. Political observers believe that it would be a smart
move on the part of the President to follow the suggestion of
the business and professional women, who have 71,000 members,
XXXXXXXX
CANADA TO ALLOT FREE RADIO TIME IN ELECTIONS
The Canadian Broadcasting Corporation this week announc¬
ed that free use of coast-to-coast networks for broadcasting
political arguments in general election campaigns will be allotted
the established national parties on a proportionate basis, accord¬
ing to the Canadian Press.
Between the time of dissolution of Parliament and the
voting no time will be purchasable for broadcasting on the na¬
tional networks, under a new statement of policy issued following
meetings of the Board of Governors last week, with L. W. Brocking-
ton, Chairman, presiding.
3
. J.‘ « • I
i
•r
7/11/39
Other aspects of controversial broadcasting, political
and non-political, are covered in the statement of policy. Free
time for Provincial campaigns is also contemplated once the system
has been tried out in a general election.
Restrictions are placed on use of the national networks
for controversial broadcasts on purchased time, but the corpora¬
tion will make provision for wider expressions of opinion by priv¬
ate individuals.
When there is no election campaign in progress, time
between an election date and the date of dissolution of Parliament
may be purchased for political speeches.
None of the corporation’s plans for election broadcasts
alters in any way the regulations under the Broadcasting Act for¬
bidding broadcasts later than forty-eight hours before the polls
open and forbidding political dramatizations.
In its main features the plan is in accordance with the
recommendations of the Special Committee of the House of Commons,
which considered broadcasting problems last session. The plan is
designed to place campaign broadcasts on a more orderly and demo¬
cratic basis than in the past. From the listener’s point of view,
it also aims at keeping the total amount of political broadcasts
within reasonable limits.
The plan was discussed before its adoption with the
official representatives of the party organizations. It has been
accepted on behalf of the Liberal, Conservative, C.C.F. and Social
Credit parties as a fair and equitable basis for handling the
problem.
xxxxxxxx
VIRGINIA ABSOLVES WJSV OF STATE TAX
I The Virginia Corporation Commission, in a voluminous
/Opinion written by Chairman William Meade Fletcher, held last
/week that radio broadcasting constituted interstate commerce and
//was not subject to State regulation.
Rendering the decision in the case of the Columbia
Broadcasting System, Inc., which operates Station WJSV at Alex¬
andria, Mr. Fletcher decided that CBS could not be required to
domesticate in Virginia and pay the entrance fee of $1,000.
Station WJSV, whose studio is in Washington, is building a new
transmitter in Maryland.
The opinion resulted in dismissal of a rule which had
been issued against the company for violation of Section 3847 of
the Virginia Code, which provides that all foreign corporations
shall, before doing business in Virginia, secure a certificate of
authority from the Corporation Commission.
XXXXXXXX
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7/11/39
PRESS- RADIO FEUD TO BE AIRED AT BELLINGHAM
Station KVOS of Bellingham, Wash. , accused by Associated
Press of "pirating” news, has been ordered by the Federal Communi¬
cations Commission to show cause why it should not be taken off
the air, at a public hearing August 10th at Bellingham.
Commissioner George Henry Payne, "newspaper-minded"
member of the FCC, has been designated to conduct the hearing
which also will consider the application of Bellingham Broadcast¬
ing Company for facilities now held by KVOS,
Before Commissioner Payne will be the report of an FCC
Examiner which chargee KVOS does not operate in the public interest
and recommends that its license not be renewed. The station broad¬
casts under a temporary permit which is subject to revocation in
the event the Commission, after hearing Commissioner Payne's report,
adopts the Examiner' s recommendation,
A bitter fight between the broadcasting company and the
Bellin^am (Wash. ) Herald will be reviewed. The newspaper was the
original complainant in the new "pirating" suit brought to the
Supreme Court of the United States by Associated Press. The charge
was made that KVOS extracts material from the Herald for its daily
feature "The Newspaper of the Air".
In Its petition for hearing, the press association told
the Supreme Court news stories are "lifted” not only from the
Bellingham Herald, but also from the Seattle Po3t-Intellip;encer
and the Seattle Dally Times, other member papers, and that it goes
on the air many hours before some subscribers receive their copies
of the newspapers.
In the U. S. District Court, an injunction against the
practice was denied on the theory that no property rights had been
violated. The Ninth Circuit Court of Appeals took a contrary view
and issued a preliminary injunction "restraining KVOS from apprx)-
priating and broadcasting any of the news gathered for the period
following publication in the newspapers during which the broadcast¬
ing to the papers most remote auditors may damage the business of
the publisher in procuring and maintaining their subscriptions and
advertising".
The Supreme Court refused review on the ground that the
press association had failed to set out/its pleading a statement of
monetary damages.
Station KVOS charges that "the Tacoma-owned reactionary
Bellingham Herald” is attempting to destroy its rival for local
advertising revenues. No question of public Interest exists, the
broadcaster contends, and the assertion is made that there is only
local conflict.
XXXXXXXXX
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INDUSTRY LOSES COLORFUL FIGURE IN ’’SPORT" HERRMANN
In the death of Commander U. J. (Sport) Herrmann last
week the radio industry has lost one of its most philanthropic
and colorful cha.racters, while Zenith Radio Corporation suffers
the loss of one of its oldest and best liked Directors, accord*-
ing to Commander E. F. McDonald, Jr. , President of Zenith. Mr.
Herrmann had been a Director since Zenith’ s incorporation in 1923
to the time of his death at Sturgeon Bay, Wis., resulting from a
taxi accident near that town two days prior.
For years "Sport" Herrmann, whose nickname, known to
thousands, was given him as the result of his intense and sincere
interest in sports of every kind - hunting, fishing, yachting,
travelling, which were his principal hobbies - conducted the radio
industry’ s shows both in New York and Chicago. During his opera¬
tion of the radio shows, he paid many thousands of dollars in pro¬
fits to the Radio Manufacturers' Association. During the
Association's days of early struggle, he was one of its main
supporters.
An examination of Mr. Herrmann’s will by his co-execu-
tors. Commander McDonald and Robert J. Daly of Chicago, revealed
that in death as in life he was generous to an unusual degree in
providing for individuals less fortunate than himself. In his
will he included many of his old friends and employees, some of
whom have not been with him for years. There was hardly a news¬
boy, policeman or messenger boy in Chicago who did not claim
friendship with "Sport" and his inseparable companion, his dog
"Brownie" .
While he lived there was always a big queue of callers
at his office consisting of people who knew that they could rely
on his help and "Sport" got a real kick out of helping. Whenever
any of these people died in straightened circumstances, their
relatives, if unable to afford a decent burial, were encouraged
to take advantage of a standing arrangement Mr. Herrmann had made
with his mortician to provide a proper funeral at "Sport's" expense.
Thus he saw to it that those he had befriended in life were at
last laid peacefully to rest in death.
Although best known in and around Chicago as the former
owner of the old Cort Theater, and in Boston as the one-time part
owner of the Boston Red Sox, Mr. Herrmann in later years became
a citizen of the entire world. On his letterhead he inscribed the
simple legend "U. J. Herrmann, Citizen", a reflection of his
pride in being an American and a retired Commander of theU. S.
Naval Reserve.
He was especially assiduous in insisting on keeping all
questionable performances out of the Cort Theater and conducted
what was literally a war on ticket scalpers during his ownership.
He believed that the public should get its full money' s worth at
the box office without the necessity of paying a premium.
6
ti
7 Al/39
’•Sport” Herrmann travelled widely, hunted, fished, sailed
and collected a vast number of treasures, trophies and exhibits from
all parts of the world, from the frozen wastes of the Arctic to
the South Sea Islands. His apartment on the thirty- first floor
of Chicago* s Medinah Club through the years became a private mus¬
eum known far and wide to collectors all over the globe.
’•Sport” was not only a traveller but a sailor in his own
right, one of the best on the Great Lakes, the son of a sailing
ship captain, the late Charles Herrmann, owner and master of the
schooner ’’Surprise”.
As a result of his adventures in various parts of the
world "Sport” developed a forceful and descriptive literary style.
He became interested in literature and writings of all kinds. He
was known in Chicago as the watch dog of the library fund, an
honorary position he continued to occupy under three different
mayors, both Democratic and Republican.
Several of ’’Sports” adventure trips were made on the
yacht ’’Mizpah” in company with Commander McDonald, his close
friend. In 1923 w^hen Commander McDonald was in command of the
steamship "Peary” which was a part of the Donald B. MacMillan
Arctic expedition of that year, Mr. Herrmann accompanied him North.
MacMillan at the time commanded his own ship, the "Bowdoin”
Mr. Herrmann v/as sixty-seven years old when he died. He
was a retired Commander of the United States Naval Reserve, a
Past Potentate of the Medinah Shrine, a Director of Zenith Radio
Corporation and other organizations. He was unmarried. Most of
his estate, as has been mentioned, will go to old friends and
employees, to a surviving brother and niece, to a fund for crippl¬
ed children, and to various charities and hospitals in which dull¬
ing his life he took a dally interest,
XXXXXXXX
FINNS BUILDING 100 KW STATION FOR OLYMPIC GAMES
Finland is building a new 100 KW short-wave transmitter
for the 1940 Olympic Games, according to Wo rid- Radio. About twelve
separate directional aerials will be provided. The transmitter
will be ready for tests early next year.
According to the decision of the Olympic Games Committee
the Winter Games will take place in Garni sch-Partenkirchen in
January- February , 1940. German Broadcasting is fully prepared to
make arrangements for the radio side, as all installations from the
1936 games are still on the spot.
XXXXXXXX
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TESTS SHOW RADIO BETTER THAN TEACHER
In an experiment conducted In ten New York City Junior
High Schools, Board of Education officials found that classroom
radio broadcasts are more efficient than the ordinary teacher
instruction, according to the New York Times.
Four thousand pupils participated in the experiment.
Half this number heard radio broadcasts on health for one school
term, while the other half, listed as the ’’control group”, did
not receive this supplementary program. The health broadcasts,
sponsored by the American Medical Association and the National
Broadcasting Company, included thirty weekly dramatized health
lessons.
When the examinations were given at the end of the term
it was found that the pupils who had heard the broadcasts were
superior to those who did not get the radio lessons. The listen¬
ers had a 3 percent higher average in the health knowledge test
ever the non-listeners.
It was found, the report declared, that the radio recep¬
tion in individual classrooms, using a small radio and small
listening groups, was more satisfactory than radio receptions
before larger groups in assembly halls, auditoriums or gymnasiums.
In classes where the teachers had the benefit of the
radio broadcast script before the broadcast, the percentage of
correct answers in the test proved to be higher compared to the
groups of students who did not have this additional instruction.
XXXXXXXX
NEW RADIO TRIED IN INDIAN VILLACES
A new type of radio receiver for mass listening is
being tested in India, according to the American Trade Commissioner
at Calcutta.
’’Much has been said in the past two years in regard to
providing broadcast receiving sets to the unprivileged in India’s
many villages”, he said. ’^In fact, several Installations have
been made which have not been entirely satisfactory for several
reasons, viz. inaccessibility, service facilities and finding a
set which approaches the point of being fool-proof.
’’Reports are now to the effect that two village receivers
have been manufactured by local concerns under the specification
drawn up by the Research Department of All- India- Radio. These
sets are now under test by the radio authorities to see if they
will prove suitable for Indian villages and are the result of
three years research by All-India Ra.dio. They are super-het types
with automatic gain control and are equipped with a special time
switch. It will be interesting to watch this development as it
ma.y lea.d to several commercial opportunities for American pa.rt
and accessory manufacturers, ”
XXXXXXXX
- 8
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7/11/39
CHARLIE MOWS 'EM DOWN AT WORLD'S FAIR
Charlie McCarthy, wise-cracking in characteristic
fashion with Mayor LaOuardia, Grover A. Whalen and scores of
other persons, m.s received with more spontaneous acclaim by the
crowds at the World's Fair Monday than any other distinguished
visitor since King George VI and Queen Elizabeth paid their visit
a month ago, according to the New York Times.
"Although numerous celebrities - Cabinet members,
Senators and Governors, distinguished foreigners, even including
royalty, and men and women of outstanding accomplishments in many
walks of life - have been entertained at the Fair since its open¬
ing, it took the little red-headed dummy with the top hat and the
monocle to arouse the crowds to yesterday's high peak of enthus¬
iasm," the Times said.
"Even the barkers in the amusement area halted long
enough to crane their necks in Charlie's direction when his motor¬
cade went past. Restaurants were temporarily halted while kit¬
chen employees, waiters and customers hastened to doors and
windows for a glimpse.
"A bodyguard of twenty World's Fair policemen - the same
squad that guarded King George and Queen Elizabeth during their
visit to the Pbir - escorted Charlie and his partner, Edgar Bergen,
through the grounds, and at times the blue-shlrted policemen had
their hands full holding back the enthusiastic admirers of the
little comedian. "
xxxxxxxx
NOTES
Short-wave international programs of the National Broad-
casting Company appeared in a new form this week. The programs,
in several languages, are printed on a single large sheet for clip¬
ping. Frank Mason, NBC Vice-President, is in charge of the inter¬
national broadcasting activities of the network.
Harry C. Butcher, Vice President of Columbia Broadcast¬
ing Company in Washington, and Louis Caldwell, prominent radio
attorney, were among the prominent guests at a dinner given last
week at the Burning Tree Country Club, near Washington, for Dis¬
trict Commissioner George E. Allen.
Station WABC New York outlet of the Columbia Broad¬
casting System, was silenced for three hours and thirty-one min¬
utes beginning at 8; 01 A. M. Monday, because of a power failure at
the station"' s transmitter in Wayne Township, N.J. The rest of the
network was not affected. The current supply was cut off when a
short-circuit burned out the main circuit-breaker in the power
supply room of the transmitter, causing a fire that lasted an hour.
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7/11/39
INDICTMENT RETURNED IN FLAMM EXTORTION
Allen Znll, 43 years old, wlio became conspicuous recently
through his activities in the American Patriots, an anti-radical
organization, ms arrested for the second time last Friday in the
Criminal Courts Building on an indictment charging that he tried
to extort |7,500 from Donald Flamm, President of Station WMCA, with
an offer to call off the picket line of adherents of the Rev.
Charles E. Coughlin,
The picketing began on Dec. 10th at the entrance to the
station, 1,657 Broadway, after further use of its facilities had
been denied to Father Coughlin, Zoll, it was charged, frequently
appeared in the picket line with hundreds of Coughlin supporters
on Sundays, but nothing developed after his arrest to indicate
that he ever had been affiliated directly with the Coughlin broad¬
casts.
Zoll vas taken on a bench warrant by Detective Edward
D. Fitzpatrick, who is attached to District Attorney Thomas E.
Dewey's office, after Zoll had appeared before Magistrate Dreyer
in the Felony Court on a tentative charge.
The evidence on which the indictment was returned was
presented by Robert H. Thayer, Assistant District Attorney. Mr.
Flamm, Detective Fitzpatrick and Detective Joseph Petrosino, also
of Mr. Dewey's office, were among the witnesses. Mr. Fitzpatrick,
in an affidavit signed in the Felony Court at Zoll’s arraignment
last Saturday said that Zoll had been arrested that day in the
Hotel Lexington after he had accepted ^200 from the head of the
radio station as the detectives watched.
xxxxxxxx
DROP IN BRITISH LICENSES DISTURBS INDUSTRY
"The Financial News'', of London, recently carried an
article regarding the setback in radio licenses issued during
April. The editor of "The Wireless and Electrical Trader" has
made the following reference to the decline: "License returns,
which seemed well on the way to the 9,000,000 mark, have taken a
surprising turn, for the preliminary figures issued by the Post
Office show a decline during April. There is bound to be a great
deal of speculation in trade circles to account for the April
drop, but the decrease is likely to be only temporarily and (in
"The Trader s view) is no cause for alarm. It is almost certain
that there are no ^fewer sets in use. The real worry will be for
the Post Office and the B.B.C., whose revenue has fallen off. The
present position is merely another reminder that in future the
industry has to cater more definitely for the replacement market. "
XXXXXXXX
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7/11/39
ZENITH GETS PATENT ON "WAVEMAGNET"
Zenith Radio Corporation, Chicago, has obtained a U. S.
patent on its new invention, ”The Detachable Wavemagnet” , which
is built into the back of the new Zenith portable.
The cover containing the Wavemagnet may be snapped off
the set and by means of rubber suction cups may be fastened to
the window of a railroad car, steamer, airplane, automobile, bus
or other conveyance, with the assurance that excellent radio recep'
tion will be obtained, despite the usual obstructive shielding
effect on ordinary portables of such metal-constructed vehicles.
The new Zenith portable with Detachable Wavemagnet is
said to be effective also for office buildings, apartment houses
and otheredifices where reception is difficult owing to a pre¬
ponderance of metal in the building construction, or where the
erection of outside aerials is either impractical or forbidden by
the owners.
• xxxxxxxxxx
AUSTRALIA TO MAKE OWN TRANSMITTING VALVES
The manufacture in Australia of radio transmitting
valves will soon be undertaken by Amalgamated Wireless (A'sia.)
Limited, according to the American Trade Commissioner at Sydney.
Tubes for radio receiving sets have been made in ,
Australia for several years, but up to this time Australia has/
depended entirely on imports for its requirements of transmitting
tubes. The Chairman of Amalgamated Wireless (A'sia.) Limited is
reported to have said that he regarded transmitting tubes as being
of as much importance in an emergency as actual munitions, and
that his company intended to commence their manufacture of trans¬
mitting tubes, hoping to progressively develop the industry until
Australia is able to produce even the largest of water-cooled trans¬
mitting tubes.
xxxxxxxx
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF JULY 14,
1939.
TeetL Pulled. From Code Adopted By NAB . . . 2
Geddes Honored By Trade Executives . 5
FTC Ready To Issue Radio Fair Trade Rules . 6
Unethical Advertising Barred By NAB Resolution . ..7
Lottery Sales Of Radios Hit By FTC Order . 8
Only ''Sample” Radio Census Is Expected . 8
Congress Gets S~W Bill As FCC Hearing Opens . 9
NAB Ends Convention With Elections..., . 10
Trade Notes. . . 12
No. 1140
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TEETH PULLED FROM CODE ADOPTED BY NAB
With most of its teeth extracted, a modified code of
standards for self- regulation of the broadcasting industry was
adopted by the National Association of Broadcasters this week at
Atlantic City.
The code, as revised, is in much less specific language
in its regulatory provisions than was the document drafted by a
special committee a few weeks ago. Several provisions, such as
those prohibiting dramatized political broadcasts and setting up
standards of business ethics for the industry, were eliminated.
Portions of the code dealing with religious broadcasts,
news commentators, and children's programs have been toned down
from the original proposals.
The code does retain the proposed prohibition against
the sale of radio time for controversial discussions and proscribes
that member stations shall allot free time to all factions equally
for such public fornms.
A limitation of advertising time on programs in propor¬
tion to the length of the period likewise has been retained.
A resolution subsequently adopted by the convention sets
forth specifically certain unethical types of advertising that
cannot be accepted by member stations.
Although the original code was scheduled to become
effective coincident with the return to standard time, the new code
will become operative at a time and under machinery to be deter¬
mined by the Board of Directors.
Promulgation of the NAB code was an outgrowth of FCC
hearings last Fall in the chain-monopoly inquiry at which time
David Sarnoff, President of the PJadio Corporation of America, pro¬
posed that the industry adopt a code of self- regulation.
The text of the new NAB code follows:
"CHILDREN’S PROGRAMS
"Programs designed specifically for children reach impression¬
able minds and influence social attitudes, aptitudes and approaches
and, therefore, they require the closest supervision of broad¬
casters in the selection and control of material, characterization
and plot.
2
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onud •loldv/' t.-, ^xiijD:i.i YXdqdd'dr-nindo odd nd XIb''? JbeX e^uil ;:c rt
' O'llr ^BoiTLaffiA Yo »doi'..'.rioa‘ioO" :olb axid lo IdsX l30T*i ,'ilom[E8 blvaCI
noi d.EXi/do'x~'iX9a Yo":3b;;0 e dqob.o yetdonbne aild d ::U Xwooq
rc vdIXol ''oi)0o dAM -iva. edJlC' j'xXd driT
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'-lJEO^d lo nolelvd .^qx/o
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difudX'd.qB IctooB donef'^arini b£io itbrJr.i old.fi
j V-‘BoIo' add D-riupoT," ^oxfd- «o3ol o^i 3nd ,bnB
rc' Ioddnoc bn;-. ‘d'-MVoIaa sxld nl a^rodoBo
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7/14/39
"This does not mean that the vigor and vitality common to
a child* s imagination and love of adventure should be removed.
It does mean that programs should be based upon sound social con^
cepts and presented with a superior degree of craftsmanship; that
these programs should reflect respect for parents, adult authority,
law and order, clean living, high morals, fair play and honorable
behavior. Such programs must not contain sequences involving
horror or torture or use of the supernatural or superstitious or
any other material which might reasonably be regarded as likely
to over-stimulate the child listener, or be prejudicial to sound
character development. No advertising appeal which would encour¬
age activities of a dangerous nature will be permitted.
"To establish acceptable and improving standards for child¬
ren's prx)grams, the National Association of Broadcasters will
continuously engage in studies and consultations with parent and
child study groups. T-he results of these studies will be made
available for application to all children' s programs.
"CONTROVERSIAL PUBLIC ISSUES
"As part of their public service, networks and stations
shall provide time for the presentation of public questions includ¬
ing those of controversial nature. Such time shall be allotted
with due regard to all the other elements of balanced program
schedules and to the degree of public interest in the questions
to be discussed. Broadcasters shall use their best efforts to
allot such time with fairness to all elements in a given contro¬
versy.
"Time for the presentation of controversial issues shall not
be sold, except for political broadcasts. There are three funda¬
mental reasons for this refusal to sell time for public discussion
and, in its stead, providing time for it without charge.
"First, it is a public duty of broadcasters to bring such
discussion to the radio audience regardless of the willingness
of others to pay for it.
"Second, should time be sold for the discussion of contro¬
versial issues, it would have to be sold, in fairness, to all with
the ability and desire to buy at any given time. Consequently,
all possibility of regulating the amount of discussion on the air
in proportion to other elements of properly-balanced programming
of allotting the available periods with due regard to listener
interest in the topics to be discussed would be surrendered,
"Third, auid by far the most important, should time be sold
for the discussion of controversial public issues and for the
propagation of the views of individuals or groups, a powerful
public forum would inevitably gravitate almost wholly into the
hands of those with the greater means to buy it.
"The political broadcasts excepted above are any broadcasts
in connection with a political campa.ign in behalf of or aga.inst
the candidacy of a legally qualified candidate for nomination or
3
7/14/39
election to public office, or in behalf of or against a public
proposal which is subject to ballot. This exception is made
because at certain times the contending parties want to use and
are entitled to use more time than broadcasters could possibly
afford to give away.
"Nothing in the prohibition against selling time for the pre¬
sentation of controversial public issues shall be interpreted as
barring sponsorship of the public forum type of program when such
a program is regularly presented as a series of fair-sided dis¬
cussions of public issues and when control of the fairness of the
program rests wholly with the broadcasting station or network.
"EDUCATIONAL BROADCASTING
"While all radio programs possess some educative values,
broadcasters nevertheless desire to be of assistance in helping
toward more specific educational efforts, and will continue to use
their time and facilities to that end and, in cooperation with
appropriate groups, will continue their search for improving
applications of radio as an educational adjunct.
"NEWS
"News shall be presented with fairness and accuracy and the
broadcasting station or network shall satisfy itself that the
arrangements made for obtaining news insure this result. Since
the number of broadcasting channels is limited, news broadcasts
shall not be editorial. This means that news shall not be select¬
ed for the purpose of furthering or hindering either side of any
controversial public issue nor shall it be colored by the opinions
or desires of the station or network management, the editor or
others engaged in its preparation or the person actually deliver¬
ing it over the air, or, in the case of sponsored news broadcasts,
the advertiser.
"The fundamental purpose of news dissemination in a democracy
is to enable people to know what is happening and to imderstand the
meaning of events so that they may form their own conclusions and,
therefore, nothing in the foregoing shall be understood as prevent¬
ing news broadcasters from analyzing and elucida.ting news so long
as such analysis and elucidation are free of bias.
"News commentators as well as all other news casters shall be
governed by these provisions.
"RELIGIOUS BROADCASTS
Radio, which reaches men of all creeds and race^ simul¬
taneously, may not be used to convey attacks upon another s race
or religion. Ra,ther it should be the purpose of the religious
broadcast to promote the spiritual harmony and understanding of
mankind and to administer broadly to the varied religious needs
of the community.
4 -
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7/14/39
'< COMMERCIAL PROORAMS AND LEIvIGTH OF COMIffiRCIAL COPY
"Acceptance of programs and announcements shall be limited to
products and services offered by individuals and firms engaged in
legitimate commerce, i/diose products, services, radio advertising,
testimonials and other statements comply with pertinent legal
requirements, fair trade practices and accepted standards of good
taste.
"Brief handling of commercial copy is recommended procedure at
all times.
"Member stations shall hold the length of commercial copy, in¬
cluding that devoted to contests and offers, to the following
number of minutes and seconds;
" Daytime
Fifteen-minute programs - 3:15
Thirty-minute programs - 4:30
Sixty-minute programs - 6:00
"Exceptions
"The above limitations do not apply to participation programs,
announcement programs, "musical clocks", shoppers' guides and
local programs falling within these general classifications.
"Because of the varying economic and social conditions
throughout the United States, members of the NAB shall have the
right to present to the NAB for special ruling local situations
which in the opinion of the member may justify exceptions to the
above prescribed limitations.
"Resolved, That the National Association of Broadcasters in
convention assembled hereby a.dopts the code as presented; and
"That the incoming Board of Directors be authorized to devise
the machinery necessary to insure compliance of members with the
code and to determine date of taking effect,"
xxxxxxxx
GEDDES HONORED BY TRADE EXECUTIVES
Bond Geddes, Executive Vice President-Secretary of the
Radio Manufacturers' Association, has been elected Vice President
of the Washington Trade Association Executives, comprising over
500 representatives of tra.de organizations represented in the
National Capital. Mr. Geddes has been active in the work of
industrial organizations, and last Fall was elected to the Board
of Directors of the American Trade Association Executives, the
national organization.
XXXXXXXX
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FTC READY TO ISSUE RADIO FAIR TRADE RULES
Final action has been taken by the Federal Trade
Commission on the long-pending fair trade practice rules for the
radio manufacturing industry, according to Bond Geddes, Executive
Vice-President of the Radio Manufacturers’ Association. The
rules are scheduled for announcement and official promulgation
next week.
There is no advance information on the merchandising
rules and advertising practices which will be contained in the
Commission's final decision. Rules under consideration have
covered use of the terms "all wave", ’’world wave'* and similar
advertising; use of ’’push money” or ’’spiffs”; advertising of
"ballast” tubes, and prohibition of commercial bribery, deface¬
ment of trade marks and other practices.
The Commission's decision will come almost exactly four
years after initiation of proceedings by the RMA set Division,
when Arthur T. Murray was Chairman, in July 1935. The final
public hearing in the ensuing trade practice "conference” we.s
held December 7, 1937.
What virtually amounts to a merchandising code governing
all interstate sales of radio will be incorporated in the ’’fair
trade practice rules” to be promulgated by the Commission. The
rules will represent the Commission's final decision and opinions
of the law governing interstate sales and advertisement of radio.
Although originally proposed to apply only to receiving
set manufacturers, since the initiation of the proceedings four
years ago the Commission* s Jurisdiction has been enlarged by the
Robinson-Patman and Wheeler-Lea Acts, so that the new rules will
apply to distributors and any dealers selling radio in interstate
commerce as well as manufacturers, and to tubes and accessories
as well as receiving sets, according to information from Commission
officials.
Promulgation by the Commission and publication of the
radio "fair trade practice” rules in ’’The Federal Register” will
be the final action in the long-pending proceedings. The Commis¬
sion also will send notices to individual radio companies asking
for their acceptance, or "adherence”, to the rules but with no
time limit for such individual company action. Involved, however,
are several citations against individual companies which have been
suspended under the proceedings for the industry trade practice
conference.
A set of proposed rules was submitted by RfiA on August
29, 1935. The first public hearing before the Commission was held
^pril 7, 1936. Tentative rules of fair trade practice were pro¬
posed by the Commission on November 22, 1937, but these were dis¬
approved by the RMA Board of Directors and a simpler codification
of rules urged by the Association at the final hearing December 7,
1937. James M. Skinner, of Philadelphia, w?.s Chairman of the RMA
special committee in the final proceedings, which have been under
advisement by the Commission over a year. Also participating in
the development of the rules was the special RliA Committee on
Fair Trade Practices of which Commander E. F. McDonald, President
of the Zenith Radio Corporation, of Chicago, is Chairman.
XXXXXXXXX
UNETHICAL ADVERTISING BARRED BY NAB RESOLUTION
Supplementing the code of ethics adopted for the broad¬
casting industry, the National Association of Broadcasters
adopted a resolution specifying 13 types of unethical advertis¬
ing that member stations should not accept. The resolution follows
“Whereas, the phrase 'accepted standa-rds of good taste’
as used in the N.A.B. Code is possible of different interpretations
in different parts of our country, and, whereas a more or less
uniform interpretation is necessary because in radio broadcasting
wide areas often are covered, therefore, be it resolved
"That any interpretation of the phrase 'accepted stand-
ardards of good taste' shall, in addition to the common inter¬
pretation such phrase would have in any community, include the
following; - . . . .
"Member stations ahll not accept for advertising:
"I, Any spiritous or 'hard' liquor.
"2. Any remedy or other product the sale of which, or the
method of sale of which constitutes a violation of the law.
"3. Any fortune telling, mind reading, character reading,
by handwriting, numerology, palm reading, or astrology, or adver¬
tising related thereto.
"4. Schools that offer questionable or untrue promises of
employment as inducements for enrollment.
"5, Matrimonial agencies,
"6. Offers of 'homework' except by firms of unquestionable
re sponsibility .
"7. Any race- track 'dopester’, or tip-sheet publication,
"8, All fonns of speculative finance. Before member sta¬
tions may accept any financial advertising it shall be fully
ascertained that such advertising and such advertised services
comply with all pertinent Federal, State and local laws,
"9, Cures and products claiming to cure.
"10. Advertising statements or claims member stations know to
be false, deceptive or grossly exaggerated.
"11. Continuity which describes, repellently, any functions
or symptomatic results of disturbances or relief granted such dis¬
turbances through use of any product,
"12. Unfair attacks on competitors, competing products or
upon other industries, professions or institutions.
"13. Misleading statements of price or value or misleading
comparions of price or va.lue."
- 7 -
XXXXXXXXX
i
I-OTTERY SALES OF RADIOS HIT BY FTC ORDER
The Federal Trade Commission has ordered James I.
Silver, trading as Silver Manufacturing Company, Silver Sales
Company, and World-Wide Radio Company, 2868 Elston Ave. , Chica.go,
to discontinue misleading repre sentations and lottery methods in
selling radios, fountain pens and other novelty merchandise.
Radios were found to have been represented in a fashion
tending to deceive buyers into believing they were R.C.A. sets,
when in truth only tubes or other parts had been made by a manu¬
facturer operating under a limited R.C.A. license.
It was also found that the resoondent advertised to the
effect that his agents could obtain radio sets from the respondent
at factory prices and save up to 50 per cent, when in fact the
respondent ws.s not the manufacturer of the sets offered but only
the middle-man and did not sell radios at factory prices or at
the saving advertised.
The Commission' s order directed the respondent to cease
representing directly or by inference tha.t ra.dios not made by the
Radio Corporation of America are "R.C.A.” radios; that the res¬
pondent is a manufacturer, until that is a fact and that his pur¬
chasers obtain a 50 per cent or other saving, and to cease imply¬
ing that merchandise supplied to agents is free when they are
required to pay therefor or perform certain services to obtain it.
The order also prohibits the sale of merchandise by
lottery or the supplying to others of lottery devices for use in
such sale.
X
X X X X X X X
ONLY "SAMPLE" RADIO CENSUS IS EXPECTED
The Census Bureau probably will not include a count of
radio sets in the 1940 population census, according to present
indications and despite the requests of the Federal Communications
Commission. Lack of funds and facilities are grounds given for
probable omission of radio ownership questions. A "sample" or
partial census of radio ownership, however, may be taken by the
Government.
The Radio Manufacturers* Association and the National
Association of Broadcasters have been supporting the FCC request
for a count of radio sets in the 1940 census. The Commission
stressed that data would assist in securing valuable information
on set ownership and in dealing with licensing problems. Census
officials, however, state that similar requests have been receiv¬
ed for forty similar commercial te.bulations and that it appears
impossible to provide a radio census, except in limited scope,
next year. In the previous 1950 census the RI\1A. secured inclu¬
sion of a question on radio set ownershio.
XXXXXXXXX* 8 -
r
.■ U
J:'
7/14/39
CONGRESS GETS S-W BILL AS FCC HEARING OPENS
As a public hearing opened before the Federal Corarauni-
oations Commission on one section of the new rules governing
international broadcasts by U. S. radio stations, Representative
Cochran (D. ), of Missouri, introduced a bill in the House to
repeal the restrictions.
The National Association of Broadcasters, meeting in
Atlantic City, adopted a resolution opposing the FCC rules as
its special counsel, Swager Sherley, and others attacked the
regulation at the hearing.
The hearing was restricted only to the section of the
FCC international rules relating to the type of programs that
must be broadcast. Among those who were represented at the hear¬
ing were:
Westinghouse Electric & Manufacturing Co., by G. S. Law,
E. D. Johnston, H. L. Lohnes and F. W. Albertson; National
Association of Broadcasters, by Swager Sherley; Columbia Broad¬
casting System, by Paul A. Porter; Crosley Corporation, by Duke
M. Patrick; General Electric Company, by L. D. Coffman; Isle of
Dreams Broadcasting Corporation, by H. L. Lohnes; National Broad¬
casting Company, by P. J. Hennessey, Jr.; WCAU Broadcasting Co.,
by Paul A. Porter; National Committee on Education, by S. H.
Evans, Secretary; and World Wide Broadcasting Corporation, by
M. M. Jansky and A. B. Landa,
The hearing, granted upon petition of the American
Civil Liberties Union, will involve the question of whether
Section 42.03(a) of the rules applicable to International Broad¬
cast Stations should be modified, revised or amended. These
rules, which apply only to stations operating on the frequencies
assigned to international broadcast stations were issued on May
23, 1939, and have been effective since that date.
Section 42.03(a) follows:
"A licensee of an international broadcast station
shall render only an international broadcast service which will
reflect the culture of this country and which will promote inter¬
national goodwill, understanding and cooperation. Any program
solely intended for, and directed to an audience in the continent¬
al United Sta.tes does not meet the requirements for this service. "
XXXXXXXXX
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7/14/39
NAB ENDS CONVENTION WITH ELECTIONS
With the election of five Directors at large, the
National Association of Broadcasters ended its annual convention
at Atlantic City on Thursday.
Among the resolutions adopted was one thanking the
Federal Communications Commission for extending the license period
of radio stations from six months to a year. The resolution stat¬
ed, however, that the NAB will continue to fi^t for a three-year
license as allowed by law.
The broadcasters decided to seek a solution with the
radio manufacturers of the dispute over the push-button type
sets, the sale of which "will in five years, at the present rate
of distribution, seriously reduce possible listening audience of
independent stations".
Directors-at-large elected by the Association were
Frank M. Russell of Washington; Harold Hou^, of Fort Worth,
Texas; George Norton, of Louisville, Ky. ; Don Elias of Asheville,
N.C.; John Elmer of Baltimore, and Harry Spence of Aberdeen, Wash.
The Board of Directors announced that it would establish
a detailed plan of code compliance which will be announced at the
next meeting of the Board in September.
One of the highli^ts of the convention was an inter¬
national broadcast in which the movies and newspapers were repre¬
sented Wednesday night.
Neville Miller, President of the Association, spoke at
the dinner and introduced Will Hays, President of the Motion
Picture P2r*oducers and Distributers of America, who spoke from
Hollywood, and James G. Stahlman, publisher of The Nashville
Banner and former President of theAmerican Newspaper Publishers'
Association, who talked from London, England.
The program went on the air over a National Broadcasting
Company hook-up.
"I am told that we are making radio history tonight",
Mr. Miller said. "This is the first time that the radio and the
motion pictures and now the press have addressed you from the same
radio program. It is significant, I believe, because it marks the
first time that the appointed leaders in these three fields step
before you on common ground. The cornerstone of each industry -
the press, the motion picture and the radio - is be.sed on the
constitutional guarantee of freedom of speech and freedom of press.
We have but to look abroad to see what happens in the destruction
of human liberties when these guarantees are taken away. "
Mr. Stahlman said it was the obligation of the radio,
screen and press to maintain their freedom. "With Europe gone
haywire”, he declared, "you of the radio and screen and we of
10
7/14/39
the press have no higher obligation to the American people than
to oppose every effort from within and without to encropch on
man's right to think, speak and worship as he pleases."
Mr. Hays stressed the freedom of the motion picture in
America .
The Copyright Committee of the Association was author¬
ized to enter into negotiations for a new contract with the
American Society of Composers, Authors and Publishers, to take
effect when the present one expires on Dec. 31, 1940. The broad¬
casting stations pay the Society for the use of music on which it
holds copyrights.
"The Copyright Committee", the resolution further stated,
"if in its Judgment no good purpose is served by postponement of
its dead-line, is authorized to prepare such measures as are nec¬
essary and expedient to enable the industry to provide sufficient
music for its requirements without ASCAP on the expiration of the
existing ASCAP contract. "
A paper by Orrin E. Dunlap, Jr, , Radio Editor of the
New York Times, on "Television, Facsimile, Their Future Effect on
Broadcasting" , was read to the delegates by Edw=rd M. Kirby,
Director of Public Relations of the Association. Mr. Dunlap
was unable to attend the meeting.
Stephen Early, Secretary to President Roosevelt, address¬
ed the Association Tuesday on "Ra.dio and Its Relation to the
Government" at the morning session. He told the delegates that
"so long as radio serves democracy it will remain free" from
censorship. He emphasized, however, "that this is solely ray
personal belief. "
"The myth of censorship and the fallacy that broad¬
casters goose-step to official pressures seem to a side-line
observer to be the twin bogey-man of radio", Mr. Early said. "In
my opinion freedom from official censorship, freedom from domina¬
tion by any adrainistretion or political perty rests with the radio
itself. So long as its operations reflect the 'doctrine of fair
play' as expressed by the statutes governing political broadcasts,
so long as programs a.re interesting, informative and clean - in
brief, so long as radio serves democracy, it will remain free.
"No columnist. Interpreter or broadcaster who misinter¬
prets, misquotes or invents news out of a clear, blue sky survives
long. The good sense of the American people catches on to the
fact that he is a perverter rather than a purveyor of news. In
the same way the American people soon lose confidence in the type
of individual who seeks to stir up prejudice against race, against
religion or against color. Thus I can conceive of no permanent
danger within our country, even though great temporary harm is
often done to our national welfare by such people. "
XXXXXXXX
11 -
7/14/39
TRADE NOTES : :
• «
Appointment of Anton Bundsmann, a veteran of fifteen
years' experience in the Broadway thea.ter and in motion pictures,
and Donald Davis, stage and motion picture writer, to the tele¬
vision staff of the National Broadcasting Company, has been
announced by Thomas H. Hutchinson, manager of NBC's Television
Program Division. Mr. Davis will be television’s first staff
script writer. _
The story of how radio, unknown 20 years ago, ha.s come
to be the greatest factor, next to eating and sleeping, in the
lives of 99,000,000 persons in the United States, will be pre¬
sented in a series of eight programs over Columbia Broadcasting
System' s nationwide network beginning Monday, July 17, from
9 to 9J30 P.M, , EST. The series is to be called "So This Is Radio
Maj. G-en. James G. Harbord, Chairman of the Board of
the Radio Corporation of America, warned against the threatened
loss of traditional American freedom in an address this week at
the University of Virginia Institute of Public Affairs, Charlottes
ville, Va.
Use of lottery methods in the sale of fishing tackle,
silverware, rifles, radios, cups, blankets and other articles is
alleged in a Federal Trade Commission complaint issued against
Rose Greenberg, trading under the name of Central States Supply
Company, 537 South Dearborn St. , Chicago. The respondent is
alleged to have furnished others with push cards for use in the
sale of her merchandise to ultimate consumers.
GerPvld Maulsby, formerly Assistant Director of Program
Operations for the Columbia Broadcasting System, has been appoint¬
ed Production Manager for the network. He succeds John S. Carlile
who recently resigned following an extended leave of absence.
LeRoy Passman, who has been serving as Maulsby *s assistant, takes
over his former duties. Both new appointments take effect immed¬
iately.
The Federal Communications Commission this week grant¬
ed permits for the erection of three new broadcasting stations.
The applicants are: Richland, Inc., Mansfield, 0., for 1370 kc, ,
250 watts power, daytime only; Northwest Broadcasting Co. , Fort
Dodge, la. , 1370 kc. , 250 watts, daytime, and 100 watts at night,
specified hours; Coastal Broadcasting Co., Brunswick, Ga. ,
1500 kc . , 250-100 watts power, unlimited time,
xxxxxxxx
- 12 --
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
INDEX
Itjjj.i.jii.A !ii.^ liU,, .:-i.
LE-oAL Dtr'MR PMEImT
jQ) 1 li W [e i, ;i
i m 1939 ^'
Lj — - - - -
k
TO ISSUE OF JULY 18, 1939.
FCC G-ives Miller The Heat . ,.2
Culture Stumps Thera - What Is It? . 4
FCC Takes To Cover On Censorship Rule . 5
All S-W Stations Respond To Commission Call..
Second Television Report Postponed Until Fall
A Radio Editor Looks At Television Toda.y . 7
FCC In Summer Recess After Cle8.ring Docket . 8
Catholic Truth Society Defends FCC Ruling . 9
New Radio Rules For Safety At Sea Adopted...,. . 11
New loo KW. Tube Developed By G-. E . 12
No. 1141
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July 18, 1939.
FCC GIVES MILLER THE HEAT
Resenting the letter of protest he had written them in
connection with the alleged "censorship" international broadcast
ruling, the Federal Communications Commission last Frida.y gave
to Neville Miller, President of the National Association of Broad¬
casters the most merciless grilling the FCC has ever given to any
representative of the radio industry. Declaring time and again
that there was no intention on his part to offend the Commission,
Mr. Miller suffered further embarrassment in his lack of knowledge
of international broadcasting. The witness readily admitted this,
pleading that he had not been connected with radio long enou^ to
familiarize himself with all phases of the work.
Nevertheless he was kept on the stand the better part
of the morning session and for the entire afternoon - going over
and over the same ground for almost five hours. Although the
cross-examining was done mostly by William J. Dempsey, FCC General
Counsel, and Commissioner Frederick I. Thompson, the Commissioners,
sitting' solemn as owls in the borrowed finery of one of the palat¬
ial Federal Trade Commission air-cooled hearing rooms, seemed to
approve ,
Also evidently air-cooled were questions asked hy the
Commission with regard to the Broadcasters* recent convention at
Atlantic City, the first in the history of radio regulation to
which no member of the Communications Coram.ission had been invited
to speak.
"We would have been afraid to go", one Commissioner
remarked to this writer, "for fear that they might have throv/n
something at us. "
Resentment on the part of the FCC towards Mr, Miller
was very marked and one got the impression that the ire of the
Commission was thoroughly aroused and that it proposed to take no
orders from him or anyone else connected with the National Associa¬
tion of Broadcasters.
Mr. Miller testifying at the hearing, said the first
indication he received that the Commission had these new inter¬
national rules in mind was a telephone call from Ed Kirby, Director
of Public Rela.tions. "Where he heard about it I couldn't say."
Commissioner Thompson seemed to regard this as divulg¬
ing confidential inf orraa.tion regarding the Commission and requested
that Mr. Kirby be called to explain this when Kirby returned from
Atlantic City.
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Following publication of editorials in newspapers
accusing the Commission of censorship, Mr. Miller said he received
a number of telephone calls from various broadcasters. Asked by
Commissioner Thompson to name the callers, the witness said he
could not do this. "Can't you name a single one? If not, can
you give the number?" Mr. Miller said it was approximately ten
or fifteen.
"I was merely wondering", Mr. Thompson answered, "who
felt there was going to be an orgy of censorship and who it v/as
who was so terribly excited over the question. "
Mr. Thompson inquired as to whether or not Mr. Miller
inspired any of the numerous critical newspaper editorials. He
declared that Mr. Miller was active in having this letter, with
severe strictures as to the attitude of the Commission, inserted
in the Congressional Record.
Swagar Sherley, Counsel for NAB, sought to deny this.
Mr. Thompson said he was trying to find out whether the obnoxious
letter to the FCC reflected the individual views of Mr, Miller or
a small group of members or if it truly reflected the sentiment of
the 428 members or 23 members of the Board of Directors.
Mr. Miller said he had not consulted with the Board or
the members before sending the letter.
With regard to the News Review, issued by the NAB from
time to time containing newspaper editorials on the subject of
radio, Mr. Dempsey asked if it was the policy of the broadcasters
to select one-sided editorials. Mr. Miller said it was not.
At one stage of the proceedings, Mr. Dempsey, showing
considerable impatience, declared, "Mr. Miller is very disappoint¬
ing. He apparently knows nothing about any of the issues involved. "
In connection with a pamphlet "Censorship of Interna¬
tional Bros.dcasts" which the broadcasters distributed, Mr. Thompson
endeavored to bring out the fact that it had inspired further
editorials criticizing the Commission. This pamphlet went to a
mailing list of 3000 which, besides the Association membership,
included a large number of newspapers and 400 members of Congress.
There was a flare-up when Mr. Sherley protested against
the treatment of the witness. "If my memory was quite as accurate
as it should be", he said, "I might rxscall Star Chamber proceed¬
ings of an earlier day because someone had been critical of the
action of the government. "
Commissioner Payne interjected: "Do you wish to let
stand your characterization of the examination by Mr. Thompson
as Star Chamber proceedings?"
"I am willing to let stand ray statement that I think the
courtesy shown the witness ha.s been rather conspicuous by its
absence", Mr. Sherley retorted.
3
W ‘
7/18/39
"Mr. Sherley, would you s?.y thpt the courtesy, p.s shovm
by Mr. Miller when he vu’ote the letter to the Commission originplly
and published it before it was delivered to the Commission, was
conspicuous by its absence?" Commissioner Case replied heatedly.
Subsequently Mr. Miller said: "It is certainly my
desire to cooperate with the Commission in every way. Ever since
that letter has been issued which, in ray mind, I intended no dis¬
courtesy, I have been told of the terrible thing I have done. I
tried to indicate to the Commission this morning that if I had
overstepped the bounds, which I did not think I had, but if I had,
I was certainly sorry. But I think, on the other hand, that I,
as a citizen, and I as the President of the National Association
of Broadcasters have certain rights that I am going to fight for,
here or anywhere else, and I hope I can fight for those rights
without being interpreted as being disrespectful to a public
official. "
XXXXXXXXX
CULTURE STULIPS THEM - WHAT IS IT?
As was the case with several other witnesses the ques¬
tion of just what was meant by "culture" in the FCC international
broadcast ruling seemed to have Frederic A. Willis, Assistant to
the President of Columbia, and in charge of their short wave
operations, guessing. Mr, Willis had told the Commission about
the different kinds of programs Columbia broadcast.
"Can you state whether, in your opinion, these programs
reflect the culture of this country?" the radio executive was
asked.
"I can't say definitely", was the reply. "I have
spent, since 1930 to 1939 - I have been in mp.ny discussions, pro¬
bably at least 30, with many leading educators endeavoring to find
out and to define what educational broadcasting is. I presume I
would have just as much difficulty in trying to define and find
out what American culture was. "
Also Mr. Willi s was quite fra.nk in telling the Commis¬
sion that he therefore didn't know what their new international
rule meant.
"Do you know if you have been violating the rule?"
"No", Mr. Willis replied.
"Do you know what the rule means?"
"No", he again answered.
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Mr. Willis was asked if there has ever been any attempt
by anyone to censor any program broadcast.
"Not to my knowledge”, ^vas the answer.
"From any official source or otherwise?"
"Not at any time."
"You have had complete freedom in the choice and selec¬
tion of program material?"
"Entirely . "
Later in the hearing, Mr. Willis was asked what he
conceived to be the most significant trend that he had observed in
analyzing the mail Columbia received from listeners.
"I should think that by far the most frequent comment
is commendation for and appreciation of the uncensored news
broadcasts which European listeners and South American listeners
and every section of the v^orld receive from this country. "
XXXXXXXXX
FCC TAKES TO COVER ON CENSORSHIP RULE
Shot full of holes by Congress, the newspapers, and the
broadcasters, no surprise was occasioned when the Federal Communi¬
cations Commission ran up the white flag by suspending the
"censorship" rule that international broadcasts reflect the
"culture of this country and promote international good-will, "
Although supposed to be suspended temporarily the rule is a very
dead rabbit and the Commission hopes it has heard the last of it.
"The FCC, of course, never intended censorship but
through a carelessly written rule simply pulled a boner", a high
official said. "Neville Miller, President of the Broadcasters
pulled another boner just as bad. Both the Commission and Miller
were vnrong. The thing should never have happened. Nevertheless
it did, and the net result is an additional black mark against the
Commission in the public mind and in Congress. "
Although expected to run much longer, the "censorship"
hearing which began last Friday morning was concluded Monday
afternoon. The Commission mil announce its findings later,
XXXXXXXX
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7/10/39
ALL S--W STATIONS RESPOND TO COMMISSION CALL
There was an outstanding attendance of high officials
in the radio industry at the Federal Communications Commission
international short-wave hearings.
Among those present were:
The Radio Corporation of America: Dr. C. B, Jolliffe
and Oswald F. Schuette; R. C.A. Communications, F. P. Cuthrie,
Washington Manager; National Broadcasting Company: Frank Mason,
VicePresident in Charge of International Broadcasting, Judge A. L.
Ashby, Vice-President and G-eneral Counsel, Frank M. Russell, Vice
President, P. J. Hennessy, Jr., Counsel, G-uy C. Hickok, Short Wave
Director; Columbia Broadcasting System: Frederic A. Willis,
Assistant to the President and in charge of International Broad¬
casting, Harry C. Butcher, Vice President, Miss Tucker, Director
of International Broadcasting, E. K. Cohan, Chief Engineer, and
Paul Porter, Counsel; General Electric Company: Boyd W. Bullock,
Assistant General Manager of International Broadcasting, L. D.
Coffman, Counsel; Westinghouse Company: J. 3.. Rock, Assistant
Manager of Broadcasting, H. L. Lohnes, Counsel; Crosley Radio
Corporation: Duke Patrick; World Wide Broadcasting Company:
Walter S. Lemmon, President; U. S. Commerce Department: John H.
Payne, Chief of the Electrical Division of the Bureau and Foreign
Domestic Commerce; U. S. Office of Education: W. D. Boutwell,
Radio Director; National Association of Broadcasters: Swagar
Sherley, Counsel.
Also present were James D. Baldwin and Phil Loucks, form¬
er secretaries of the National Association of Broadcasters,
xxxxxxxx
SECOND TELEVISION REPORT POSTPONED UNTIL FALL
The second television report, recommending a policy to
govern the issuance of experimental television permits, will not
be submitted to the Federal Communications Commission until it
resumes full sessions in the Fall,
The Special Committee has instructed members of the FCC
staff meanwhile to draft a proposed report embodying its ideas on
policy. In addition to Cha.irraa.n T.A.M. Cra.ven, the Committee com¬
prises Commissioners Norman S. Case and Thad H. Brown,
Primarily involved in the second phase of the Committee’s
operations is consideration of pending applica.tions for new sta¬
tions in various sections and the fomulation of a definite licens¬
ing policy. Under present regulations, experimental television
licenses are issued only on condition that the licensees contribute
to the technical a.dvancement of the art, vrith no consideration
given to testing of public reaction or program technique,
XXXXXXX -6“
T-
N
7/18/39
A RADIO EDITOR LOOKS AT TELEVISION TODAY
Television promoters have two years of agony ahead;
Orrin E. Dunlap, Jr. , Radio Editor of the New York Times, told
the NAB convention at Atlantic City last week. His paper was
read to the broadcasters as he v^as unable to attend the convention.
"Television is making progress in New York, but slowly",
he said. "It is like the baby who has taken a few steps and
rather chestily looks westward as if it might be no trick to walk
right across the map to San Francisco. But the parents know that
when the youngster goes to California, he'll probably fly, not
hike. So with television today. It is toddling around New York.
It can’t walk to the Pacific* It must fly. But it cannot fly
until there is a wire or a national radio relay system on which
to travel.
"Those in telecasting today are asking when the others
are coming in to help them carry the load. The pioneer already
feels the burden. He’s afraid that he will not be appreciated
until years from now, when monuments or plaques may be erected.
Pioneering is often a thankless task. Trail blazers meet the
obstacles and opposition. So it is with the telecaster.
"From the broadcaster’s standpoint, there is a vital
question to be answered before he can hope to get revenue from
telecasting. Who will pay for the programs? It may be from
three to five years before that answer is available. Because of
tradition in broadcasting, the quick answer is sponsors. But can
they afford it? And will the public tolerate advertising on tele¬
vision? The eye in its likes and dislikes differs from the ear.
The eye can ’tune out’ even the most subtle visual advertising on
the screen by a turn of the head or a drop of the eye-lid. The
ear has no such guards.
"The toughest row to hoe in television is to get the
first 100,000 sets in homes. Then many of the present ridd.les
will be answered; public reaction will be known.
"Television has been called a ^13,000,000 ’If.' The
question is how to sever the ’If and let the 13 million grow.
"First, programs must be of such calibre that the Joneses
will be surprised to learn that they are missing pictures the
Smiths are seeing. Before this can happen the price of television
sets must be within range of the average pocketbook. Telecast
stations must be on the air in cities other than New York.
"The optimist in television must be fully aware of the
intricate problems ahead. For one who has seen so much magic per¬
formed by radio since 1912, it is easy after seeing scenes from a
Broadway play, a baseball game, and aprize fight by television to
realize that it has a tremendous future - that some day it will
be a great industry.
7
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"It is true that television hes not made the splash in
New York that some expected. They overlooked certain factors, now
more apparent since programming has been in effect on a regular
schedule for two months. The optimistic figure of 100,000 tele¬
vision sets being sold by Christmas is being whittled drastically.
10,000 would be a big surprise. Nevertheless, progress is being
made.
"From all indications it will be the autumn of 1941 at
the earliest before television really gets up steam in the Mew
York area. Telecasters have two years of agony ahead. In that
period the showmen will learn more about their art, which, inci¬
dentally, is not merely Hollywood plus broadcasting. Television
is an art in itself.
"Furthermore, and this is vital, before the public takes
to television, prices must be reduced or present radios converted
to receive telecasts without much expense. The public is greatly
interested in television, but can't afford it."
XXXXXXXXX
FCC IN SUMMER RECESS AFTER CLEARINU DOCKET
After granting permits for eleven new local broadcasting
stations and approving nine transfers of ownership, the Federal
Communications Commission went into a Summer recess schedule until
September this week.
The granting of 11 station construction permits at a
single sitting set a new record.
The new stations will be located in Sarasota and Fort
Lauderdale, Fla.; Brunswick and Moultrie, Ca. ; Fort Dodge, la.;
Salem, NIass. ; Hastings, Neb.; Sumter, N. C. ; G-reenville, S. C. ;
Victoria and Plainvievr, Tex, ; "Proposed findings", which are
equivalent to grants but require later ratification if no objec¬
tions are raised to the proposed decisions, approved new stations
in Spartanburg, N.C.; Suffolk, Va. ; and Grants Pass, Ore.
Among the transfers of ownership authorized was WFBM,
Indianapolis, Ind. All of the grants were made without previous
hearings in line with the Commission's policy of recent months to
avoid unnecessary hearings so far as possible. Several of the
transfers were to ne^^spaper interests.
The stations involved in the deals which received the
Commission's sanction, in addition to WFBM, were WIBC, Indianapolis,
Ind. ; WKBO, Harrisburg, Pa. ; WJBY, Gadsden; KANS, Wichita; KWOC,
Popular Bluff, Mo.; WGTM, Wilson, N. C. ; WSPR, Springfield, Mass.;
WW'SW, Pittsburgh, Pa.
xxxxxxxxxx
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7/18/39
CATHOLIC TRUTH SOCIETY DEFENDS FCC RULING
A defense of the Federal Communications Commission and
the international rule relative to program standards for inter¬
national broadcasting was given at the FCC hearing last week by
the Rev. Edward Lodge Curran, President of the Intemationa.l
Catholic Truth Society, of Brooklyn, N. Y.
Dr. Curran also assailed the attitude of the National
Association of Broadcasters against the rule and asserted tha,t
the FCC now exercise similar control over domestic broadca.sts.
''Contrary to false and malicious charges which have
appeared in the press and over the radio by self- inspired un-
American and commercial sources, the latter of whom are more
interested in the gold content of radio than in its cultural
values, I ajn confident that Section 42.03 was adopted and approv¬
ed by this Commission, the radio administrative agency of the
United States Government, only after long and careful considera¬
tion of the best interests of our people as a whole, and in the
best interests of our country both a.t home and abroad", he said.
"I, myself, as \'^11 as those whom I have the honor to
represent, have been, at all times, irrevocably and unequivocably
opposed to any form of censorship which tends to curtail or destroy
our Constitutional rights of freedom of speech. In upholding the
Constitutional right of freedom of speech, I am also mindful of
the fact that in no article, and in no clause, does that Consti¬
tution grant any individual, or group, the right to destroy our
democratic form of government, or the right to create and main¬
tain a monopoly, especially in the public domain, which may be a
detriment to the rights of our citizenship at large.
"If the Government of the United States, and the sover¬
eign people of the United States, both of whom are represented by
the Federal Communications Commission, cannot insist that Inter¬
national broadcasts, originating in the United States be devoted
to programs of American culture and directed to the promotion of
international good will, understanding and cooperation, then the
President of the United States, and the Congress, should dissolve
the Federal Communications Commission and hand over, lock, stock
and barrel, all of its powers and prerogatives to the National
Association of Broad.cas'ters’. Perhaps that is what the NAB desires?
"They have a,lready received a free gift from the Ameri¬
can people in the form of a free franchise for which they have
never been charged a single cent by way of any fra^nchise fee or
tax. They now tell the American people that their representative,
the Federal Communications Commission, has not the right to in¬
sist on American culture programs, and not the right to uphold
the internationa.l policy’’ of good will, understanding and Coopera¬
tion as adopted by their elected chief executive in the United
States. This is the height and depth, the length and the breadth
of economic totalitarianism. National Broadcasters of America, I
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7/18/39
beg to assure you, it is the Federal Coirnnunications Commission end
not your august body, that is responsible to the people of the
United States of America.
"The objections of the National Association of Broad¬
casters are supposed to be based upon a hatred of censorship in
any form of radio programs. Unfortunately, for the National
Association of Broadcasters, the basis of their objection falls
to the ground. The broadcasting companies have exercised, and
still continue to exercise, complete censorship themselves over
every program issuing from their stations.
"Allied with the National Association of Broadcasters
is the American Civil Liberties Union. What strange bedfellows
this hearing brings together. Mr. Roger Baldwin of the American
Civil Liberties Union is quoted as having once stated, I believe,
to a Congressional Committee his belief that any alien had the
right to advocate the violent overthrow of the United States Govern¬
ment. Mr. Roger Baldwin, in the course of the same testimony, is
reported to have also stated that any alien has the right to
advocate the assassination of the President of the United States!
"Will the National Association of Broadcasters allow a
broadcast of these colorful doctrines over a.n international broad¬
cast originating in this country, and thereby impress foreign
peoples with the thought that the American people believe in
violence and assassination?
"In the exercise of its powers over domestic broadcasts
the Federal Communications Commission indulges in no such censor¬
ship as that exercised by the National Broadcasting Companies them¬
selves, whose dema.nd of a manuscript before the broadcast is in
the na.ture of that censorship which it now seeks to control from
the international as well as from the domestic point of view.
Only when any program violates the admonition of the Federal Com¬
munications Commission against obscene, indecent or profane pro¬
grams, and only upon protests filed with the Commission is a. hear¬
ing^ held and the offending station rendered amenable to the cancel¬
lation of its license, if the degree of guilt so warrants. This
is censorship post factum. It is a necessary right of any
Governmental unit, especially of a unit which exists to protect
the rights of the general public. "
XXXXXXXX
The Columbia Broadcasting System announces the addition,
effective July 15, of KWFT, Wichita Fa.lls, Texans. Operating at
620 kilocycles with 250 watts power at night and 1,000 watts dur¬
ing the da.y, KWFT joins Columbia's Southwestern Group, bringing
the CBS total to 116 sta,tions in 115 cities.
XXXXXXXX
10
7/18/39
NEW RADIO RULES FOR SAFETY AT SEA ADOPTED
The Federal Communications Commission announced this
week adoption of Rules Governing Coastal and Marine Relay Ser¬
vices (Chapter VII), and Rules Governing Ship Service (Chapter
VIII), effective October 1st. At the same time the Commission
repealed existing rules 263 to 296, inclusive, and the Ship
Radiotelegraph Safety Rules of May 21, 1937, as amended, effect¬
ive October 1, 1939.
Briefly stated, the new ship service rules constitute
those provisions of the existing Ship Radiotelegraph Safety Rules
which are not repetitions from sections of the Communications
Act of 1934, and include practically all of the existing ship,
coastal, and marine relay rules 263 to 296, inclusive, with some
modifications and additional rules.
In the new ship rules, whenever any rule is applicable
only to a ship subject to the Safety of Life a,t Sea Convention,
or only to a ship subject to Title III, Part II of the Communica¬
tions Act, that fact is clearly stipulated by the particular
section of the rules. This is necessary since all rules now
included in the present Ship Radiotelegraph Safety Rules (which
are to be replaced by the new ship rules) apply only to compulsor¬
ily equipped vessels.
The new ship service rules provide that ship station
licenses will be issued for a period of three years instead of
for one year as is now the practice. Since there are now over
3000 licensed ship stations aboard vessels of United States
registry, this provision of license termi should reduce somewhat
the volume of work relative to filing of applications for renewal
licenses and action taken in response to such applications. The
three cls.sses of ship station licenses are defined in the new
rules according to the latest international regulations and method
of administration.
"A number of new rules are proposed to reduce interfer¬
ence and increase safety in the maritime mobile service. In
general these rules establish priority of communications for both
ship telegraph and telephone services on any frequency based upon
international regulations, provide for the transmission and repe¬
tition of distress and auto-alarm signals, and provide that a
ship station installed for safety pu2aDoses in compliance with law
shall have priority, from the standpoint of interference, over the
use of any other ratio equipment on the same vessel. Coast sta¬
tions are prohibited from transmitting call lists of ship sta¬
tions on calling frequencies in accordance with existing policy
and practice. A definite rule h^s been added requiring coastal
telegraph stations to maintain a watch on the distress frequency
during the internationa.1 silent period in conformity with inter¬
national regulations in order to promote safety of life at sea.
11
7/18/39
With regard to radio installations on compulsorily equip¬
ped vessels of the United States, rules are included in the nev/
ship service chapter which, for safety purposes, limit the extent
to which the emergency povi/er supply and certain emergency radio
apoaratus may be used for ordinary communication while a vessel
is* in the open sea. In addition, a new rule is included requiring
that operation of the emergency ra.dio installation shall be avail¬
able aboard compulsorily-equipped vessels within one minute after
the need arises for its use.
"In general", the FCC stated, "it is believed that the
nev; rules will improve operating conditions in the maritime mobile
service and will increase safety of life and property at sea, as
well as afford a more convenient set of rules for purposes of
reference. "
X X X X X X X
NEW 100 KW. TUBE DEVELOPED BY G.E.
A new type 100-kilowatt radio tube in which the filament
can be replaced, the first of its kind in this country, has been
developed by engineers of the G-eneral Electric Company. Tv/o of
the tubes will be used in the new 100-kilowatt transmitter being
completed for the General Electric short-wave Station W2XAF which
now operates on 40 kilowatts. The new transmitter is expected to
be on the air by August 1, according to G. H. Lang, Manager of
Broadcasting.
The new tubes, designed by E. D. McArthur, H. E. Rowe
and L. E. Record of the Vacuum Tube Engineering Department of the
company, represent one of a series of developments that have been
and are continuing to be made to place short-wave broadcasting on
a more and more practical basis.
They are the largest tubes of their kind yet to be built
in this country and when used with the new Alexanderson panel
antenna, are expected to produce an effective directional power
output of more than 600,000 watts. It is not anticipated that
these tubes will replace the 100-kilowatt tubes in standard, or
long- wave, broadcast transmitters.
"General Electric’s interest in short-wave broadcasting
dates back to 1923 with the establishment of Station "XI", said
Mr. Lang, "Since that time considerable progress has been made in
international broadcasting technique and the need for high-powered
transmitters was realized if the barriers of distance and those of
natural origin were to be combatted successfully.
"The new tube makes possible greater power output with a
simpler set-up at the transmitter, thus providing greater efficien¬
cy in transmission. Whereas six tubes are now used to obtain a
power output of 40 kilowatts, two tubes of the new type will have
a power output of 100 kilowatts."
XXXXXXXX
- 12 -
^ _ / V
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
ii,;:':' /s. f
LEG
i'' • Cij . Inc.
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^ JUL 2 2 i939
A.M.
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4
INDEX TO ISSUE OF JULY 21, 1939
Trade Practice Rules Issued For Radio Industry . 2
Dog Chases "Cat" In Television Test . T
FCC May Split On Censorship Rule . 8
Radio Censoring Would Be A Sweet Job . 8
Lemmon Denies Approving FCC Hot-Shot . 10
Directive Antenna Might Kill Several Birds . 11
Switzerland Shows First Television . . . ....12
NAB Counsel Cites Bill Of Rights As FCC Limitation . 13
ASCAP Issues "Copyright Law Symposium" . . . .....15
No. 1142
f
TRADE PRACTICE RULES ISSUED FOR RADIO INDUSTRY
Culminating efforts of the Redio Manufacturers' Associa¬
tion for over four years, the Federal Trade Commission this week
issued Trade Practice Rules for the Radio Receiving Set Manufactur¬
ing Industry to become effective at once.
The miles aim to eliminate and prevent false advertising,
deceptive selling methods, and certain other unfair trade practices,
the FTC points out in a preliminary statement. They are issued,
the Commission added, "in the interest of protecting the purchasing
public and maintaining fair competitive conditions in the industry. *'
The Commission pointed out that total retail sales of
radio sets, parts, etc., aggregated $460,000,000 in 1937 and*
1225,000,000 in 1938. At the present time, the statement added,
there are approximately 41,000,000 receiving sets in the United
States.
Among the RMA officials who assisted in drafting the
Trade Practice Rules were Bond Oeddes, Executive Vice President,
and Commdr. Eugene F. McDonald, Jr., of Chicago, Chainnan of a
Special Committee on Fair Trade Practices.
Major provisions of the Fair Trade Practice Rules as
promulgated by the FTC follow:
"GROUP I"
"The unfairtrade practices which are embraced in the Group i
rules are considered to be unfa.ir methods of competition, unfair
or deceptive acts or practices, or other Illegal practices, pro¬
hibited, within the purview of the Federal Government, by acts of
Congress, as construed in the decisions of the Federal Trade Com¬
mission or the courts; and appropriate proceedings in the public
interest will be taken by the Commission to prevent the use, by
any person, partnership, corporation or other organization, of such
unlawful practices in or directly affecting interstate commerce.
"RULE 1 - "It is an unfair trade practice for any member of
the industry, in the course of or in relation to the marketing or
distribution of radio receiving sets, ps.rts or a.ccessories there¬
for, or other products of the industry, (1) to use, or to cause,
promote or further the use of, any marks, brands, labels, depictions
advertisements, trade promotional descriptions or representations
of any kind which, directly or by implication, are false, mislead¬
ing or deceptive to the purcha.sing or consuming public; or (2) to
offer for sale, sell or distribute, or to cause or promote the
sale or distribution of, radio receiving sets, parts or accessor¬
ies therefor, or other products of the industry, under any other
conditions or selling practices which have the ca„pacity and tend¬
ency or effect of niisleading or deceiving the purchasing or con¬
suming public.
2
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7/21/39
•'Rule 2 -* "All-Wave", "Standard Broadcast", Etc.:
"(a) Except as hereinafter provided, the terms 'All-Wave' ,
’World-Wave’, ’World-Wide Wave’, or words, phrases or representa¬
tions of similar import, shall not be used as descriptive of a
radio receiving set advertised, offered for sale, sold or distrib¬
uted in the American market when such set is not constructed to
receive and capable of receiving, with reasonable or adequate
consistency, the entire spectrum of radio frequencies in recognized
use in the art, namely, all long-wave broadcasts and transmissions;
all medium- wave and short-wave broadcasts and transm.issions, and
all other waves transmitted or broadcast, including both foreign
and domestic; excepting, however, that such set so described or
represented need not include within its ca.pacity of reception such
point-to-point transmissions as are confidential and illegal for
generral reception and divulgence by members of the public, nor
such unchanging signals as emanate from radio beacons or radio
lighthouses, when such set is not otherwise falsely or deceptively
described or represented, directly or indirectly, as being con¬
structed to receive, or as being capable of receiving, such point-
to-point or beacon or lighthouse transmission.
"(b) Nothing herein contained shall prohibit the use of the
term ’Limited All-Wave’, ’Limited World-Wave', ’Limited World-Wide
Wave’, or term or words of similar import, as descriptive of a
radio receiving set advertised, offered for sale, sold or distrib¬
uted in the American market when such set is constructed for and
capable of consistentl3'’ receiving at least a continuous spectrum
of frequencies from 540 kilocycles to 18,000 kilocycles, provided
such term or words are immediately accompanied by words, phrases
or terras set forth conspicuously and clearly, unequivocally and
truthfully stating the exact wave bands or frequencies which such
set is capable of consistently receiver.
"(c) Nothing herein contained shall prohibit the use, as
descriptive of a radio receiving set, of the term ’all v^ves’ as an
integral part of a clause, sentence or statement which truthfully
and unequivocally sets forth the bands or radio frequencies such
set does not cover, and wherein the v^^ords ’all waves’ are not
given greater prominence or conspicuousness than the other parts
of such clause, sentence or statement; provided such set is con¬
structed for and capable of receiving with reasonable or adequate
consistency all the waves or bands of frequencies from 540 to
18,000 kilocycles and such other bands or frequencies as are
represented to be within its receptive capacity.
"(d) The term 'Standard Broadcast’ shall not be used as des¬
criptive of a radio receiving set v/hich is not built for or capable
of receiving with reasonable or adequate consistency a continuous
spectrum of frequencies from 540 to at least 1600 kilocycles.
"(e) Also, the term 'Standard Broadcast’ as descriptive of a
radio receiving set shall not be used in such manner as to lead the
public to believe (l) that such set is constructed for and capable
of receiving with reasonable or adequate consistency a greater
number of radio frequency signals than is in fact true of such
set; or (2) that the set is capable of so receiving more than the
continuous spectrum of frequencies from 540 to 1600 kilocycles.
"(f) In the advertisement or sale of radio receiving sets,
disclosure of the exact bands of frequencies which such sets are
constructed to receive and capable of receiving with reasonable
or adequate consistency is deemed desirable in the interest of
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avoiding confusion, misunderstanding or deception of purchasers.
Failure or refusal adequately to make such disclosure of frequen¬
cies, in connection with the use of the term 'Standard Broadcast'
or otherwise, when the capacity and tendency or effect thereof is
to mislead or deceive the purchasing or consuming public, is an
unfair trade practice.
"(g) Nothing in these rules shall prevent the use, in lieu
of 'kilocycles’, of other recognized units of measurement, such
as 'meters' or 'megacycles', when employed in a truthful andron-
deceptive manner.
"Rule 3 - It is an unfair trade practice for any member of the
industry to use, or cause to be used, any of the following-des¬
cribed types of advertisements or representations^
"(a) Advertisements or representations stating, purporting
or implying that any radio receiving set so advertised or repre¬
sented will receive distant stations or any or all foreign broad¬
casts or transmissions easily or satisfactorily or as easily or
satisfactorily as local or domestic reception, when such is not
the fact.
"(b) Advertisements or representations stating, purporting
or implying that any radio receiving set so advertised or repre¬
sented, or the reception thereof, is not subject to interference
or to being interfered with or interrupted by fading, noise, elect¬
rical interference, atmospheric conditions, static or any other
phenomena or conditions, when such is not the fact.
"(c) Advertisements or representations, with respect to the
receiving capacity or performance of a radio receiving set, which
make deceptively exaggerated or misleading claims or claims which
are not justified and supported by the fact or performance of such
radio set in the locality in which it is so advertised, represent¬
ed and sold.
"(d) Advertisements or representations which directly or by
implication lead purchasers to believe that the radio set so advei"^
tised or represented is capable of greater or more consistent or
satisfactory performance or reception than is in fact true,
"(e) Advertisements or representations stating, purporting
or implying that any radio receiving set so advertised or represent¬
ed will give world-wide continuous reception or other continuous
reception, when such is not the fact; or that the radio receiving
set will give such reception or other reception with loud speaker
volume, when such is not the fact; or that the radio receiving set
will give world-wide reception or other reception regularly or
dependably, when such is not the fact.
"(f) Advertisements or representations which present claims
or representations concerning any radio receiving set in such a
way as deceptively to cover or conceal defects or deficiencies
Inherent in such set, or defects or deficiencies inherent in the
contemporaneous state of the art to which the receiving set is sub¬
ject but which are not generally known to the purchasing public.
"(g) Advertisements or representations, of any radio receiv¬
ing set, stating, purporting or Implying that each station or any
station, whether nearby or foreign or domestic, can be brou^t in,
or brought in with sharp, clear or distinct reception or with ease,
simplicity or regularity, by any radio receiving set so advertised
or represented, when such is not the fact.
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7/21/39
"(h) Advertisements or representations stating, purporting
or implying that any radio receiving set so advertised or repre¬
sented will bring in or receive broadcasts from Europe, Africa,
South America, Australia or Asia, or from any other designated
locality; or that it will bring in such broadcasts, or any of them,
consistently or satisfactorily, ?rhen such is not the fact.
“(i) Advertisements or representations stating, punporting
or implying that any radio receiving set so advertised or repre¬
sented sifts out noise or is free from noise, or brings in far
distant stations sharp or clear, v/hen such is not the fact.
"(j) Advertisements or representations stating, purporting
or implying that any radio receiving set so advertised or repre¬
sented will bring in or receive satisfactorily or consistently
foreign stations, police calls, aviation calls, radio transmissions
from or to ships at sea, amateur stations or other types of radio
transmissions, when such is not the fact, or when only a small part
of any such class of radio frequencies transmitted or broadcast is
so receivable and such fact, or the fact that others of the same
class are not so receivable, is deceptively concealed.
"(k) Advertisements or representations stating, purporting
or implying that any radio receiving set so advertised or repre¬
sented contains a certain number of tubes or is of a certain tube
capacity when one or more of such tubes in the set are dummy or
fake tubes, or are tubes which perform no useful function, or are
tubes which do not perform or were not placed in the set to perform
the recognized and customary function of a radio receiving set
tube in the detection, amplification and reception of radio
signals,
•’(1) Advertisements or representations of any radio receiving
set, or of any part or accessory therefor whatsoever, in such a
manner as deceptively to conceal the true function of such part or
in such manner as otherwise to mislead or deceive the purchasing
or consuming public in respect to such set or such part or accessory.
"(in) Advertisements or representations stating, purporting
or implying that the price of radio receiving sets, parts or acces¬
sories therefor so advertised or represented have been reduced or
are reduced prices, or have been reduced a certain amount, wiien in
fact such purported or represented price reduction is fictitious,
or is otherwise misleading or deceptive.
"(n) Advertisements or representations stating, purporting or
Implying that radio receiving sets so advertised or represented
are of the latest model, when such is not the fact; or advertise¬
ments or representations which, directly or indirectly, have the
capacity and tendency or effect of leading the purchasing public
to believe that the set is of the current year' s model or has not
been supplanted, superseded or succeeded by a newer or later model;
when such is not true in fact; or advertisements or representations
which are otherwise deceptive or misleading respecting the model
of the set,
"(o) Advertisements or representations of radio receiving
sets or prices therefor which deceptively or misleadingly conceal
the fact that the advertised price does not cover necessary or
advertised accessories or devices which must be purchased with the
set at an additional charge; or which falsely or deceptively state
or imply that the advertised price covers such accessories or
devices, when such is not the fact,
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7/21^9
"(p) Advertisements or representations of radio receiving
sets which present former prices or so-called list prices which
are fictitious.
"(q) Advertisements or representations of purported bona
fide trade-in allowances when the price of the new set so offered
for sale has been deceptively inflated or marked up to offset the
trade-in allowance.
"RULE 4 - Sponsorship: It is an unfair trade practice to
use, or cause to be used, advertisements or representations, of
radio receiving sets, parts or accessories therefor, or of other
products of the industry, which have the capacity and tendency or
effect of misleading purchasers or the consuming public into the
belief that such radio sets, parts, accessories or products are
sponsored or manufactured by, or are otherwise associated with,
any person, concern or organization which is or has been prominent
or well known in the electrical or radio industry, or by or with
any other person, firm, corporation or association, when such is
not the fact.
"RULE 5 - (a) Alteration of Brand Name. The defacement or
removal of the correct name plate or brand name of a radio receiv¬
ing set, or the replacement thereof by another name or mark, when
done with the capacity and tendency or effect of thereby misleading
or deceiving the purchasing or consuming public in respect to the
origin, manufacture or true name of such set, or in any other
material respect, is an unfair trade practice.
’’(b) Deceptive Use or Change of Cabinets. The placing of a
radio receiving set or chassis in a cabinet designed or made for
a set or chassis of a different manufacturer or for a set or
chassis of a different size, type or model, when done with the
capacity and tendency or effect of thereby misleading or deceiving
the purchasing or consuming public as to the origina, size, capac¬
ity, make, manufacture, brand or type of such set or cabinet, or
when done to mislead or deceive purchasers in any other respect.
"RULE 6 - The imitation or simulation of the trade-marks,
trade names, labels or brands of competitors, with the capacity
and tendency or effect of misleading or deceiving the purchasing
or consuming public is an unfair trade practice.
"RULE 7 - It is an unfair trade practice for a member of the
industry directly or indirectly to give, or offer to give, or per¬
mit or cause to be given, money or anything of value to agents,
employees or representatives of customers or prospective customers,
or to agents, employees or representatives of competitors' custom¬
ers or prospective customers, without the knowledge of their
employers or principals, as an inducement to influence their
employers or principals to purchase or contract to purchase prod¬
ucts manufactured or sold by such industry member or the maker of
such gift or offer, or to influence such employers or principals
to refrain from dealing in the products of competitors or from
dealing or contracting to deal with competitors.
6
7/21/39
"RULE 8 - It is an unfair trade practice for any member of
the industry, directly or indirectly, to give, pay or contract to
pay, to any clerk or salesperson of any customer-dealer handling
two or more competitive brands of radio merchandise, ’push money’
’spiffs’ or any other bonus, gratuity or payment, as an induce¬
ment or encouragement to push or promote the sale of such member’ s
product or products over competing products of other members in
the industry.
"(a) with the capacity and tendency or effect of thereby
causing the purchasing or consuming public, when making purchases
of such products, to be misled or deceived into the erroneous
belief that such clerk or salesperson is free from any such special
interest or influence, or is not so subsidized or paid by such
member; or
"(b) with the capacity and tendency or effect of thereby
hampering and unduly restricting the legitimate, free and full use
and enjoyment of such retail trade outlets for the distribution to
the public of competing products; or
"(c) with the purpose or effect, directly or indirectly,
of otherwise substantially lessening competition or unreasonably
restraining trade in the marketing of the products of the industry;
or
"(d) with the effect of thereby bringing about the granting
of an illegally discriminatory service, payment or price contrary
to Section 2 of the Clayton Act as amended by the Act of Congress
approved June 19, 1936, known as the Robinson-Patman Act. "
xxxxxxxx
DOG CHASES "CAT" IN TELEVISION TEST
Television -- now coming into its own — has drawn upon
every existing science for its development and operation, declared
Dr. Orestes H. Caldwell, Editor of Radio Today and former Federal
Radio Commissioner, addressing the New York Lions Club luncheon at
the Hotel Astor this week.
Even the homely art of sic-ing a dog on a cat has been
resorted to by the engineers in trying to locate sheat breaks in
the coaxial cable used for radio transmission.
In England, a 12-mile underground "coax" cable had been
giving trouble, said Dr. Caldwell, After every other test had been
tried, the engineers bethought themselves of pumping the hollow-
cable full of a gas having a strong "cat odor". Then a trained
retriever dog was led along the ground for the length of the bur¬
ied cable, and at 14 points the dog stopped and began pawing the
earth, in search of an invisible cat. At each such spot the
engineers found leaks and repairs needed in the cable, although
buried three feet below ground. In this way the ’’dog-and-cat "
method, although new to electrical engineering, saved incalculable
digging.
XXXXXXXX
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FCC MAY SPLIT ON CENSORSHIP RULE
Although it may be a week or two before the outcome
of their deliberations may be known, there is an impression that
the Federal Communications Commission will be divided in the
matter of restoring the rule or a substitute for it requiring
that international broadcasts reflect American culture and inter¬
national goodwill. Prepared to go all the way in fighting a
restoration of this ruling, or anything else smacking of censor¬
ship on the the part of the Commission, is Commander T. A. M.
Craven. Commissioner Case might also be counted upon to register
opposition.
The other Commissioners smarting under criticism from
Congress, the newspapers, and President Neville Miller of the
National Association of Broadcasters, it is believed, may try to
rewrite the rule or salvage it at least in part so as to avoid
the appearance of reversing themselves or of defeat. Again the
rule may be thrown out altogether and a substitute offered; but
in any case it is thought there may still be quite a difference
of opinion among the Commissioners on it. Apparently Commission¬
ers Thompson, Walker, Brown and Payne stand together as a bloc
with Craven and Case likely to take the opposite side.
xxxxxxxx
RADIO CENSORING WOULD BE A SWEET JOB
What trouble the Federal Communications Commission
might let itself in for if it undertook to censor international
radio programs was gleaned from the testimony of Frank E. Mason,
Vice-President of the National Broadcasting Company, in charge
of the NBC International Division. Mr. Mason, a veteran foreign
correspondent was later an intelligence and censor officer with
General Pershing in the A.E.F.
Asked at the short-wave hearing whether he had ever
had any of his newspaper material censored overseas, Mr. Mason
replied: "I have been censored and have been the censor. " Mr.
Mason then told at length of his censorship experiences and while
he dealt almost entirely with newspaper work, he gave the Com¬
mission a pretty good idea of what they would be up against if
they undertook to censor radio programs, especially the nev/s.
Mr. Mason was then questioned with regard to other
phases of the Commission's much discussed short-wave rule. Asked
if it was his primary purpose to reflect the culture of the United
States or to create international good-will, Mr. Mason replied:
”We are trying to do an intelligent Job but we don't
go out every morning and say, 'We are going to tiy and promote
International good-will'. We have selected men whom we believe
8
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will do an adequate job. When the President of the United States
speaks we feel that we ought to carry the words of the President
to the four corners if it is consistent with the desires of the
White House. We don't inquire whether it is going to promote
International good-will or not, ”
"If you had to measure all of your programs by the
application of a standard which provided that you should render
a service which would reflect the culture of the United States
and contribute to International good-will, understanding and
cooperation, would it impose any additional burden upon the
effectiveness of your service?" P. J. Hennessy, Jr., NBC counsel
inquired.
"Well", Mr. Mason replied, "I have listened very attent¬
ively to the use of the word ' standa.rd* in this hearing, but I
don't know what you mean by 'standard'", the witness replied. He
said that the rule under discussion, in his opinion, has all the
elements of surveillance and censorship in it.
"Do you ever make any conscious effort to create Inter¬
national ill-will for the United States?"
"No sir", Mr. Mason replied.
"I understood you to say that certain programs may do
so incidentally. "
"I have five large volumes of clippings from newspapers
in two Continental European countries which are filled with clip¬
pings showing ill-will which has been created toward the United
States from various actions in the United States. We don't feel
that our obligation is any different from any other truthful
reporter in reporting the actions of the government of the United
States., and we don't question as to what the reactions will be."
"Are you of the opinion that in the long run, the broad¬
casting of truthful news is followed by international good-will?"
"I don't know that the truth is always so pleasant",
Mr. Mason countered.
"Then let's say 'truthful news.'"
"Well, what constitutes 'news'?" the witness came back.
"We don't call it censorship if we ha.ve to do editing and we
select as carefully as possible in order to create a truthful
picture in the mind of the auditor. "
"But you do make the effort?"
"Very distinctly. "
9
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Getting back to culture, William J. Dempsey, General
Counsel of the FCC, inquired:
"General speaking, your programs have reflected the
culture of the country?"
"We have intended, as we understood culture to reflect
it", Mr. Mason answered, "but I would hate to have to define the
word 'culture’, if that is your next question."
"That isn’t my next question, Mr. Mason", Mr. Dempsey
concluded, "in fact I haven’t any more questions."
Asked v;hat place technical testimony given by Dr. G. B.
Jolliffe, in charge of RCA frequencies had in the International
Short-Wave hearing, Mr. Hennessy said:
"One of the issues involved here is that if the trans¬
mission of programs will meet with the affirmative requirement
that they cultivate American good-will abroad. It seems to me
to be the essence of this proceeding that we show what countries
we reach and in doing so what other parts of the world we serve
through the use of frequencies that are assigned to us. "
X X X X X X X
LEMMON DENIES APPROVING FCC HOT- SHOT
Taking issue with the testimony of Neville Miller,
President of the National Association of Broadcasters, that he
had approved the final draft of the letter which Mr. Miller wrote
to the Federal Communications Commission, which stirred up the
animals so, Walter S. Lemmon, President of the World Wide Broad¬
casting Company, denied this vigorously when he appeared before
the Commission.
"Did Mr. Miller show you the drafts of letters similar
in purport to the one accusing the Commission of censorship?"
"Yes", Mr. Lemmon answered, "some rough drafts. As I
recall it, it was a chance meeting with Mr. Miller while travel¬
ling aboard a train one evening. "
"What were your comments to Mr. Miller, if any?"
"This was a casual meeting and I can't remember the
exact comments, but I think I said I felt that one draft was
entirely too hot; but I believe I said that the other rought draft
was good, but I think I also added that I gravely doubted the
advisability of proceeding in quite this manner. I think I
recommended to Mr. Miller a conference with the Commission of
some sort, "
10
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7/21/39
"Were you consulted in that final draft as it was submit¬
ted to the Commission?"
"No", Mr. Lemmon replied. "I had no idea that Mr,
Miller was in any way seeking my approval. "
"Did you know that it was intended that this letter
should be submitted to the press?"
"No", Mr. Lemmon again said with some emphasis.
xxxxxxxxx
DIRECTIVE MTENNA MIGHT KILL SEVERAL BIRDS
A new angle was raised when Boyd W. Bullock, Assistant
Manager of Broadcasting of the General Electric Company, suggested
the possibility of a directive antenna enroute, also placing the
program in other countries outside the direct path of the beam.,
"Do you agree that there may be some programs that are
favorably received in some countries but which may have the
opposite effect in other country?" Mr. Bullock was asked.
"Just the fact that we are broadcasting uncensored news
might have unsatisfactory effects in some countries", was the
reply.
"Do you mean then that the brx)adcasting of uncensored
news might create International ill-will?"
"I can see how it might. Of course one has to describe
what he means by 'International good-will'. I can conceive how
uncensored news might build good-will with most peoples of most
countries.
"Under present conditions the parties in power in some
of these countries might not be so happy about us broadcasting
uncensored news into their countries; therefore we might not be
building good-will with the governments but we might with the
peoples. One general conclusion from our mail is that people
like to get uncensored programs. "
Although Mr. Bullock agreed that the rule which the FCC
had promulgated which had brought down upon that body so much
criticism was a good objective for international broadcasting, he
frankly stated that he did not think this objective should be con¬
tained in an official rule of the Commission. When asked why, he
replied:
11
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"Because if there is such an official rule we must
operate under it. In the operation of such a rule, the program
content must be examined and an examination of any program con¬
tent and whatever action may be taken after that examination,
that as I see it, constitutes censorship, which the Commission
has said that it does not care to indulge in. "
Mr. Bullock said in such a rule, those operating the G.E.
short-wave station would feel that it would have to take each pro¬
gram and measure that program against each one of the qualifica¬
tions in the rule.
"You say you 'would have to do that'". Commissioner Paul
Walker inquired. "That rule has been in existence for some time.
Have you done it?"
"No sir, we have not", Mr. Bullock replied. "We have
not changed up to the present time our method of operation since
the rule has been in effect. "
Asked by Commissioner Craven if he felt qualified to
Judge what is international good-will and what is not, Mr. Bullock
replied, "No, I do not very well. "
"Aren't you fearful of the difference of judgment between
yourselves and the Commission?" Mr. Craven continued.
"I am not fearful of the difference of opinion; I am
just fearful that as a result of it we could be accused of doing
something that was wrong when our intention would be to do what
was right, "
"Well, the fundamental difficulty is the fear of the
difference of opinion, isn't it?"
"For fear of not knowing how to comply", Mr. Bullock
replied.
XXXXXXXXX
SWITZERLAND SHOWS FIRST TELEVISION
One of the attractions at the Swiss National Exhibition
in Zurich is a small television transmitter, specially constructed
for the exhibition, and entirely of Swiss origin, according to
World Re.dlo. The transmissions, mostly of outdoor scenes, are of
good quality. It is the first time television has been demon¬
strated in Switzerland, and the appars.tus is intended primarily to
show the achievements of technical engineering, because it is
recognized that, for technical - the high mountains present one
of the problems - as well as financial reasons, it will be a long
time before it is a practical proposition for general use.
XXXXXXXXX
- 12 «
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7/21/39
NAB COUNSEL CITES BILL OF RIGHTS AS FCC LIMITATION
The Bill of Rights, as v.rell as the Coramuni cations Act,
serves as a limitation upon the Federal Communications Commission
and in itself would bar the enforcement of the FCC regulation, now
suspended, regarding the type of programs that international radio
stations may transmit, Swagar Sherley, Special Counsel of the
National Association of Broadcasters, declared in the closing
arguments at the Commission hearing this week.
"I believe I speak the voice of the sober thinking
people of America", he said, "when I say that they do not believe
that democracy can be preserved by the Government's denying, even
for a good purpose, the very essence of democracy: freedom of
expression.
"The vice that underlies this regulation is the old, old
vice of believing that any limited number of people given a
temporary grant of power are capable of or should be permitted to
determine what it is well for the American people to think and say.
"The folly of such a regulation is shown most glaringly
when we consider what effect it will have upon the age-old atti¬
tude of our government regarding its accountability to other na¬
tions for the views and expressions of its nationals.
"Always when protest has been made by another nation
because of expressions voiced in their individual capacity by
officials of this government, the State Department on behalf of
the government has replied that under our system of government it
is the right of its citizens freely to speak and print their views
regarding all matters, governmental or otherwise, and that there
is no power within the government to control the utterances of its
nationals,
"When recently the German government saw fit to protest
against remarks that had been made by the Secretary of the Interior,
this wa.s the answer given by our government. Similarly, when ex¬
ception was taken to remarks made by the Mayor of New York, the
answer was one that while expressing regret that any citizen should
have given utterance to criticisms of the ruler of a friendly
nation, yet it was not the province of our government and it was
without power to undertake a censure of the person complained of,
or to prevent a repetition of the incident.
"If, however, the Federal Government is to undertake
to stand sponsor for international broadcasts, in that it makes
a positive requirement that such broadcasts shall reflect the
culture of America and shall be such as to promote internatione.l
good will and cooperation, then I submit that the Federal Govern¬
ment stands committed to see to it that the broadcasts are so
circumscribed and robbed of all vitality as to prevent the giving
of offense; and if by chance the Judgment of your Honors, as the
13
I
7/21/39
governmental agency underwriting the harmlesaness of programs
broadcast on international waves, should prove faulty, the Federal
G-overnraent must accept the responsibility for the broadcasts and
take disciplinary action to punish the offense and to prevent its
recurrence .
’’In summary and in conclusion, may I say tha.t it is my
position that the Bill of Rights is an express limitation upon
every power conferred upon our Federal Government by the Constitu¬
tion of the United States.
"That Congress, recognizing the limitation in the First
Amendment upon freedom of speech, has most emphatically and
explicitly declared that this Commission should exercise no form
of censorship.
"That all of the powers conferred upon the Commission
regarding classification and other matters are by the express
terras of Section 326 of the Radio Act made subject to that clause.
"That Rule 42.03(a) is censorship and censorship none the
less because of the benevolent intent of the Commission in adopt¬
ing it.
"We lose sight entirely of the fundamental issue here
involved if we accept a disclaimer as to an intent to disagree¬
ably or re strictively enforce a regulation as warranting its enact¬
ment.
"We were told during the hearing that the industry should
have no concern over the regulation a5.opted or some substitute for
it, because its enforcement would be by reasonable men and without
an intent to interpret it oppressively. This is the old, old plea
for power sought to be justified by a disclaimer of intent to
abuse the power. But I submit as a matter of law that a regulation
adopted speaks in its own language and once adopted it becomes the
duty and not the option of those charged with enforcement to see
to its enforcement.
"It should be a sufficient answer in the realm of practi¬
cal matters that if the regulation is not to be interpreted as
censorship in any way and is not to be enforced, there is no need
for it.
"We spent a good deal of time in question and answer as
to the form of the regulation. The very fact that after weeks of
consideration the regulation took its present form of clear censor¬
ship (though that was not the intent of the Commission) , indicates
the futility of undertaking by a regulation that deals with char¬
acter of program to express an objective, no ma^tter how worthy,
that does not of necessity entail censorship.
"I do not believe that the wit of man is sufficient to
enable anyone to lay down a regulation that deals with the subject
of program broadcasting in the international field that will not
prove upon analysis subject to the same or equally serious criti¬
cism as to its restrictive character. Certa.inly at first blush a
CO
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7/21/39
broadcasting that shall promote International good will and co¬
operation would seem to be one about the purpose of which there
would seem to be no dispute. But if this hearing has shown any¬
thing, it has shown the futility of such an expression.
"I have spoken in vain unless I have made plain that
this whole issue arises from the Commission having, hovYever un¬
intentionally, failed to appreciate the limitations upon its action
that arises out of the very philosophy of our government.
"Believe me - and I say it with very deep respect - it
is not the function of the Commission to act as guardian of the
radio industry. It was not intended b^^ the law of its being that
it should be a guardian. Its powers are very great. They tax the
wisdom of the wisest men, but they do not embrace this field.
"The Commission has made its mistakes, but when we con¬
sider the complexity of the problems that have confronted it in
its many fields of activity'", I am very loath to criticize; and it
should be said that it has had the wisdom and the courage to cor¬
rect many of these mistakes. I truly believe that it will have
the wisdom and courage to correct this funda.raental mistake and
that it will do so not by undertaking the impossible task of re¬
phrasing an intent as to the character of international broadcasts,
but will content itself solely with the classification as to area
to be served under licenses given for international broadcasting.
"Time will Justify such a course and the evidence in
this case, aside from the question of power which the Commission
does not have, demonstrates the lack of wisdom of undertaking to
define, generally or generously, the program duties of those who
have been licensed in this field. "
XXXXXXXX
ASCAP ISSUES "COPYRIGHT LAW SYMPOSIULI"
The American Society of Authors, Composers, and Publishers
this week issued copies of "Copyright Law Symposium", being a re¬
print of five essays adjudged by a Committee of the American Bar
Association as the best among forty prize-winning papers prepared
by graduating students of law schools participating in the 1938
Nathan Burkan Memorial Competition.
The Nathan Burkan Memorial Competition was inaugurated in
1938 in memory of the General Counsel, who died in 1936. The pur¬
pose of the competition, according to the foreword, "is to encour¬
age careful and impartial study of copyright law, analysis of the
need and Justification for, the public benefit from, and the wise
public policy of enacting such a law. "
All law schools were invited to participate in the con¬
test. Forty did so in 1938 and 76 have entered the 1939 competition.
An award of $100 is paid to the student in ea.ch class who prepares
the best essay.
XXXXXXXX
- 15 -
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t ;7
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
World Listeners Jump 33 Million In A Year . 2
Craven-For-Chaimian Boomlet Is Launched . . . 4
Radio Wire Television Corporation Fonned . 4
Opening Of Congress Radio G-alleries Celebrated . ...5
Logan Bill, Fbught By Administration, Curbs FCC . 5
G.E. Develops Water-Cooled Television Lamp . 6
McDonald Called ”Good-Bad Boy Of Radio” . 7
Elliott Roosevelt Hit For Coughlin Attack . 8
Vatican Paper Explains Papal Re.dio Blessing.. . 9
Sweden Celebrates Decade Of School Broadcasts . 9
Bulletin - McNinch Announces Resignation As FCC Chairman . 10
German Radio Set Prices Are Reduced . 10
FCC Authorizes Transfer Of Mackay Control . 11
Littlepages Move To New Quarters . 11
RCA Television Antennas Announced For Amateurs . 12
WOR To Try To Tune In Mars. . . 12
No. 1143
T’.'t ^ ; tSCMI
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July 25, 1939
WORLD LISTENERS JUMP 33 MILLION IN A YEAR
There are at least 33,000,000 more radio listeners over
the world today than there were a year ago, according to Arthur R.
Burrows, of the International Broadcasting Office, (leneva, who
makes a yearly tabulation of the distribution of receivers.
The International Broadcasting Office has just issued
its annual chart showing the growth during the previous year of
homes equipped for the reception of broadcasts. The figures
obtainable from 88 governments or administrations show that in
these countries the number of homes equipped rose from 69,748,829
in 1937 to 77,997,444 in 1938.
"The actual position is undoubtedly even more favorable
than the figures suggest", Mr. Burrows comments in World-* Radio.
"Although the Geneva Office has received more returns than on any
previous occasion, the Union of Socialist Soviet Republics has
again provided no new figures and we have been compelled to have
recourse to those of 1936. Brazil and China, too, are countries
with some hundreds of thousands of listeners which, for various
reasons, have not given their figures for 1938. These facts
apart, the new total of 78 million equipped homes, or approxi¬
mately 312,000,000 persons to whom radio programs are available
in their homes, is a gratifying one,
"It is also interesting to note that Europe is rapidly
catching up with the rest of the world in the matter of radio
installations. At the end of 1937 Europe had only about 33^ mil¬
lion radio-equipped homes against 35,900,000 on the other Conti¬
nents. At the end of 1938 Europe had nearly 38,600,000 against
just over 39,400,000 elsewhere. These figures, it should be kept
in mind, refer to homes and do not take into account the many
millions of sets now installed in motor-cars, notably in the
United States of America.
"There is a possibility that European listeners will
equal in number the listeners in the rest of the world at the end
of the present year.
"The United States of America remains the most densely
equipped country. Her figures are approximative, as there is no
system of registration; but the estimate of the Federal Communica¬
tions Commission (which is one of 28 millions at the end of 1938
as against something like 25^ millions at the end of 1937) places
the United States in the forefront with just over 215 sets for
each thousand of its inhabitants. Denmark takes second place
with 205.78 sets for each thousand inhabitants. Actually, Denmark
still leads the world amongst those countries possessing a license
system and able therefore to provide definite figures as distinct
from an estimate.
- 2 -
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7/25/39
"Third in the world order comes New Zealand with
195o90 equipped homes for each thousand persons. New Zealand
has displaced G-reat Britain from third position by raising her
license numbers from 279,054 to 313,826 - a highly creditable
performance; Sweden has fourth place with 194.74 receivers to
each thousand persons; and Great Britain fifth place with 192,86
per thousand. The Commonwealth of Australia, which for some
years past has been highly placed in this great world race, is
sixth with 160.53 sets to each thousand of her people.
"If we continue to think in terms of the relation of
equipped homes to the white population, then Northern and South¬
ern Rhodesia now hold seventh place, there being, at the end of
1938, 9,956 receiving sets among a white population of 67,552.
This is a g3?owth of over 2,150 sets within a year - due, in a
great measure no doubt, to the development of short-wave broad¬
casting. Uganda, Kenya, and Tanganyika, together take ei^th
place with 140.25 sets to each thousand of the white population.
Actually, there was a growth of 1,160 sets in a total of 3,996
in these areas during last year.
"For the ninth place we come back to Europe. Belgium
can claim this position by having raised her proportion of sets
to each thousand of the population from 122.09 to 134.29. Germany
takes tenth place with 133.45 sets per thousand. This figure takes
into account the license figures for what was Austria and also
those of the Sudeten German areas. It also takes into account an
augmented population,
"The Netherlands, which possess a registration system,
but prefer to rely on voluntary contributions rather than insti¬
tute a tax as a source of revenue, hold eleventh place with
132.74 equipped homes for each thousand persons; and Switzerland
twelfth place with 131.27, as against 120.97 at the end of 1937.
Iceland, Norway, Luxembourg, France, and Danzig come thirteenth,
fourteenth, fifteenth, sixteenth, and seventeenth respectively,
with figures ranging down from 131 to 110.68 equipped homes per
thousand of the population.
"One cannot pursue these figures throughout the count¬
ries of the world without risk of becoming tedious. It is inter¬
esting to note, however, that the Dominion of Canada takes
eighteenth place with a total of 1,213,725 equipped homes repre¬
senting 108.85 for each thousand of the population and the Union
of South Africa nineteenth place with 102.29. The next best
figure - an approximation - comes from the Argentine Republic,
It shows 91,44 equipped homes for each thousand of its people."
Next year, Mr. Burrows concluded, it may be possible to
obtain an estimate of the number of short-wave receivers in use
in these distant places.
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7/25/39
CRAVEN-FOR-CHAIRMAN BOOMLET IS LAUNCHED
A mild boom to make Comradr. T.A.M. Craven Chairman of
the Federal Communications Commission if and when Frank R.
McNinch resigns, as is expected, has been launched by persons
prominent in the radio broadcasting and manufacturing industries.
Commissioner Craven, who is the only trained engineer
on the FCC, was sla,ted for the chairmanship at the time of his
promotion to the Commission from the position of Chief Engineer.
Politics and his refusal to knuckle under to some of the Admini¬
stration aides, it is understood, interfered, however.
Commander Craven was intimate with President Roosevelt
when they were both in the Navy Department, and since he has been
associated with the Commission, he frequently has been called to
the White House for conferences with the Chief Executive.
His opposition to the BicNinch purge last Fall aroused
some of the Presidential advisors, notably Thomas G-. Corcoran,
and led to an open feud with the Chairman.
Within recent months, however, the attitude of the
White House toward McNinch and other members of the Commission
has changed, and it is believed that Commander Craven is again
in favor with the President,
xxxxxxxxx
RADIO WIRE TELEVISION CORPORATION FORMED
The Radio Wire Television Corporation of America, with
studios at 160 East 56th Street, New- York City, has been formed
as a merger of Wire Broadcasting, Inc., and Radio Service Co., Inc.,
it was announced last week. John E. Otterson, formerly President
of the Winchester Repeating Arms Corporation, Electrical Research
Products, Inc. , and Parajnount Pictures, will be hea,d of the new
organization. Incorporation papers were filed last Thursday in
Wilmington, Del.
In accepting the active leadership of the expanded
enterprise, Mr. Otterson said that every current technological
trend pointed to the ultimate distribution of entertainment by
wire. He said that at present the company* s operation is limit¬
ed to key cities on the Atlantic seaboard, but that in the near
future he hoped to extend it on a nationw/ide basis.
xxxxxxxxxx
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7/25/39
OPENING OF CONGRESS RADIO GALLERIES CELEBRATED
Radio correspondents, broadcasters, and legislators
celebrated the formal opening of radio galleries in the U. S.
Senate and House Monday night at a dinner given on Capitol Hill,
Officials of the three major networks - NBC, CBS and
MBS - mingled with radio reporters and members of the Federal
Communications Commission. Speaker Bankhead participated in a
network broadcast. Boake Carter was a guest.
Present also were Representative Dempsey (D.), of New
Mexico, who sponsored the changes in rules in the House, and
Senator Gillette (D.), of Iowa, who brought about the change in
Senate Press Gallery rules.
Fulton Lewis, Jr. , Washington commentator for MBS
and President of the Radio Correspondents* Association, acted as
master of ceremonies.
xxxxxxxx
LOGAN BILL, FOUGHT BY ADMINISTRATION, CURBS FCC
Radio attorneys are watching with interest the efforts
of the Administration to block the Logan bill to curb the powers
of quasi-judicial agencies w^hich has passed the Senate and is
now in the House.
The proposed law is opposed by the government agencies
as well as the Department of Justice, and an effort is being
made by A^^ministration leaders to have the bill reconsidered.
It would impose a mandatory obligation upon Federal Courts to set
aside decisions, rulings and orders of administrative agencies on
any of the following grounds:
(1) If the findings of fact were "clearly erroneous";
(2) If the findings of fact were not supported by "sub¬
stantial evidence";
(3) If the decision was not supported by the findings of
fact;
(4) If the decision was issued without "due notice" and a
"reasonable opportunity" for the aggrieved parties to have "a
full and fair hearing";
(5) If the decision was "beyond the jurisdiction" of the
agency;
(6) If the decision infringes the Constitution or statutes
of the United States, and
(7) If the decision is "otherwise contrary to law".
XXXXXXXX
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G.E. DEVELOPS WATER-COOLED TELEVISION LAMP
One of television's greatest problems, that of provid¬
ing studios with twice the light now required by the movies, yet
not subjecting articles to unbearable heat, has been solved by
Gteneral Electric engineers in its television station at Schenect¬
ady, by the use of a battery of four new-type water-cooled quartz
mercury-arc units containing 12 lamps having the light output
equivalent to that provided by nearly 30,000 watts of incandes¬
cent light, at the same time giving off no appreciable amount of
heat.
The lamps are about the size of a cigarette and have
an exterior of quartz. Surrounding the tube is another quartz
jacket through which water passes at the rate of three quarts a
minute, to prevent the lamp from destroying itself, due to the
intense heat.
The water, in passing around the tube, transmits 90
percent of the heat away from the light source, and as a result,
little heat is dissipated into the studio, unlike other types of
lamps previously used.
The new mercury lamp radiates more than two and one-
third times the light given off by an incandescent lamp of the
same wattage. The twelve 1000-watt lamps used in the ^E tele¬
vision studio have a total light output of 780,000 lumens, while
the same wattage of incandescent lamps would give off only
330,000 lumens of light.
The greatest factor, however, prompting their use in
the television studio was that no appreciable amount of heat was
given off by the mercury lamps. The possibility of a burn from
incandescent lamps, caused by the infra-red radiation, grea^tly
inconvenienced performers appearing before the television camera;
in the new lamps more than 90 percent of the infra-red radiation
is absorbed in the circulating water.
The cooling system of the lamps is equipped with a
pressure-operated switch and magnetic valve because the water in
the jacket must be moving before the lamp is lighted and beca,use
the lamp must be turned off automatically in the event of fail¬
ure or reduction of the water supply.
The lamp is filled with argon gas and, when lighted,
a pressure of more than 1000 pounds per square inch is developed
within the quartz jacket.
Two rubber hoses connect to each of the lamp units; one
leading from a tap at one of the stud-io walls to allow water to
pass into the lamps, and another carrying the waraed water from
the lamps to the sewer line. An electrical conduit with a plug¬
in connection, also on the studio wall, provides the power to
the transformers and control equipment mounted on the standard
floodlighting unit tripods which support the lamns and reflectors.
xxxxxxxx
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X X X A X X X. ;•
7/25/39
McDonald called "cjood-bad boy of radio"
Commander Eugene F. McDonald, Jr. , President of the
Zenith Radio Corporation, Chicago, is labelled the "good-bad boy
of radio" in a biographical sketch by Jack Auburn Pennmann in
"Future", a magazine published in Chicago in the interest of
the Junior Chamber of Commerce.
The writer, after reviewing Commander McDonald* s rise
in the radio industry and his experiments in other industrial
fields, concludes;
'■He is known now as the 'good-bad boy* of radio. He
is called the bad boy of the industry because of his unheralded
moves that leave competition breathless. He does things that
they 'know* can't be done and then, when he's done them, they
have to find a way to do the same thing. He is the good Samaritan
of the industry because of his constructive work in stabilizing
the radio business and protecting retail dealers against price-
slashing that ruins their investments. Although a busy man with
many interests, he is famous for his personal correspondence with
dealers.
"This hard-hitting, seagoing business executive lives
an intensely interesting life. He has owned twenty-three boats
and yachts in his lifetime. He lives with his wife and baby
daughter on his 185 foot yacht, 'The Mizpah' , which is knovm in
every major port of the G-reat Lakes and from Labrador to the South
Seas.
"The yacht, a floating home, is also the only floating
experimental laboratory for radio in the world. Upon it, McDonald
developed a G-reat Lakes radio- telephone service from ship-to-
shore, the first automatic tuning and his famous 'radio nurse'.
"But in back of ownership of that yacht are years spent
in taking the trouble to reason things out for himself and then
having the courage to go ahead contrary to the wei^t of opinion.
Then there has been the risk of putting hard earned money into
ventures when that money had no more security than the correct¬
ness of his own Judgment.
"McDonald always put his own finances into whatever he
was trying to develop. Sometimes it wasn't much, and he had to
make it grow. But when it \m3 little, he put in little and then
worked harder. When he made money, and really had money, he put
more into idiat he was promoting so that he always has had a great
stake in whatever he has done,
"And he constantly looked for something new or better.
Besides the 'firsts* already mentioned, McDonald developed the
first radio set for farmers to operate off a single auto-type of
storage battery; the first single tuning control that did away
with the many dials; the first radio set to operate one hundred
7
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7/25/39
per cent from electric current without any batteries whatever;
and the first set with more than one loud speaker - one for
treble, another for bass notes and some sets with three speakers
for high, medium and low vibrations.
"Television, air conditioning, aviation, commercial
chemistry, plastics and a score of other industries are expect¬
ing today's young men to make similar accomplishments."
XXX xxxxx
ELLIOTT ROOSEVELT HIT FOR COUGHLIN ATTACK
Taking the air in defense of the Rev. Charles E.
Coughlin, Dr. Edward Lodge Curran, of Brooklyn, N. Y. , President
of the International Catholic Truth Society, assailed Elliott
Roosevelt for his recent criticism of Coughlin over a nation¬
wide hook-up Monday night from Detroit.
Dr. Curran appeared last week at the hearing of the
Federal Communications Commission on international rules and at
that time denied that he represented the Detroit radio priest
or was in any way associated with him.
"It is doubtful if Elliott Roosevelt would ever be on
the air in the guise of a speaker were he not the son of the
President", Dr. Curran said. "The truth is, however, that this
New Deal dynasty, not satisfied to having attempted to purge
Senators, is now trying to purge all citizens who da27e criticize
the New Deal experimentations.
"Liberty of speech is the corner-stone of all political
liberty. Either Elliott Roosevelt and the group with which he
is associated cannot stand criticism or else the members of that
group, including himself, fear the peering rays of the lamp of
truth.
"The assertion that Fbther Coughlin has been anti-Semitic
in his oratory is a strange charge and accompanied, by no proof.
It was a rehash of what is being said by the Leftist leaders of
the country who think no charge too low, or too unworthy if it
succeeds in smearing the object of its attack,
"Without freedom of speech on the radio, who would
arouse the American public to the da.ngers of the World Court, to
the un- American ism of the Supreme Court packing plan, to the truth
of the entire Spanish question and to the insidious da.ngers which
lurked beneath the recent attempt to throw us into war, known as
the Neutrality Act,"
xxxxxxxx
8
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7/25/39
VATICAN PAPER EXPLAINS PAPAL RADIO BLESSINC
Osservatore Romano, Vatican City newspaper has pub¬
lished an explanation of Pope Pius’s decision July 12 to extend
the benefit of plenary indulgence to all the faithful who listen
to a radio broadcast of it. To obtain the indulgence, the news~
paper says, those who listen in at the radio "must receive the
Supreme Pontiff’s blessing with the same devotion as those who
are present at the rite. "
Moreover, it continues, there are some conditions to
fulfill for the acquisition of the indulgence. They are the
same as for those who are physically present at the rite. These
conditions are: confession, communion, a visit to a church or
to a public or semi-public oratory and prayer in keeping with
the Pope's desire.
"From the above", says the newspaper, "it can be
obviously deduced that the indulgence connected with the bless¬
ing cannot be acquired by those who listen to the broadcast of
the rite in a manner that does not concur with required piety and
devotion or by those who have not fulfilled the four required
conditions".
xxxxxxxxx
SWEDEN CELEBRATES DECADE OF SCHOOL BROADCASTS
In Sweden, which is celebrating the tenth year of
broadcasting to schools, the number of schools equipped with
radio receiving sets has increased from 283 to 4,000, and the
number of school listeners from 14,000 to 140,000.
The successful collaboration between the Swedish
Board of Education and the Radio Service began in 1929 , and
while the programs for elementary schools have been extended,
those for the higher-gra.de schools have been reduced because of
the heavy demands of their normal syllabus. The elementary-
school broadcasts deal with a wide range of items, but those for
secondary schools are confined to courses in English, French,
G-erman, Danish, and Norwegian.
To enable the smaller schools in remote country dis¬
tricts to obtain suitable radio equipment, gra.nts are made out of
the revenue received from licenses.
XXXXXXXXXX
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7/25/39
BULLETIN
McNINCH ANNOUNCES RESIGNATION AS FCC CHAIRMAN
Chairman Frank R. McNinch called at the White House
late today (Tuesday) and conferred with President Roosevelt and
afterwards announced that he was resigning as Chairman of the
Federal Communications Commission. There was no immediate
speculation as to his successor on the Commission.
Mr. McNinch has been ill and away from the Commission
for several months.
xxxxxxxx
GERMAN RADIO SET PRICES ARE REDUCED
German receivers will be considerably cheaper this
season, according to Wo rid-- Radio.
"Drastic price-cuts have been made possible by the
official removal of all price restrictions and agreements”, its
Berlin correspondent writes, "A number of types will be reduced
by at least 30 percent. The industry is now quite free, and
every manufacturer will sell at the price he chooses. His price
calculation and his costs bill, however, will be checked by an
official organization,
"Rationalization of the ra.dio industry has now been
completed, but the full effect will not be seen until 1940. "
XXXXXXXX
At a special meeting of the Jefferson- Travis Radio
Manufacturing Corporation, New York City, held this week, stock¬
holders approved a plan of readjustment of the corporate and
financial structure of the company which wa.s submitted by Felt &
Co., of 52 Wall Street, according to Raymond Jefferson, Secretary-
Treasurer of the corporation.
Another legitimate theatre in New York will pass into
the hands of a radio company when the National Broadcasting Corp.
took over the Vanderbilt yesterday (July 24) on a thirteen week
lease with a renewal option. The broadcasting company, which has
been using the Ambassador since July 10, will install the Fred
Waring program in the theatre.
XXXXXXXX
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7/25/39
FCC AUTHORIZES TRANSFER OF MACKAY CONTROL
The following order, authorizing an intra-co2?po ration
transfer in control of the Mackay Radio & Telegraph Co. , of
Delaware, was issued this week by the Federal Communications
Commission:
"The Commission having under consideration applications
filed pursuant to Sec, 310(b) of the Communications Act of 1934,
for consent to transfer control of Mackay Ra,dio & Telegraph Company
of Delaware from Ra.dio Communications Company, Inc. , to Commercial
Mackay Corp. , a Delaware corporation, through The Associated
Companies, a Massachusetts trust; and to transfer control of
Mackay Radio & Telg. Co. of California from George S. Gibbs and
Raymond C. Kramer as trustees of the Estate of The Associated
Companies, a Massachusetts trust, to Comraercia.l Ma.ckay Corporation,
a Delaware corporation, both filed on May 13, 1939; which trans¬
fer of control will be effected as a result of ajnd in accordance
with the reorganization of the Postal Telegraph and Cable Corpora¬
tion and The Associated Companies as provided in a Reorganization
Plan approved and confirmed by order of the United States District
Court for the Southern District of New York, dated June 30, 1939,
in the Matter of Postal Telegraph and Cable Corporation, The
Associated Companies, debtors, in proceedings for Reorganization
of a Corporation; and it appearing that said transfer is in the
public interest; the Commission granted the said applications;
Provided, hov>rever, that nothing in this action shall be construed
as a determination whether any acquisition or transfer involved
in the reorganization of the Postal Telegraph and Cable Corpora¬
tion and The Associated Companies in accordance with the afore¬
mentioned Reorganization Pla.n, or any operations thereunder may or
will result in any violation of Section 314 of the Communications
Act of 1934, Section 7 of the Clayton Act or any other laws relat¬
ing to monopolies or unreasonable restraints of trade; and Provid¬
ed further that nothing in this action shall constitute an approval
of the provisions of any contracts entered into or to be entered
into among the companies involved; and Provided further that the
proposed transfer of control shall not become effective without
further order of the Commission unless the said order of the U. S,
District Court for the Southern District of New York, dated June 30,
1939, shall be affirmed upon any appeal which may be taken there¬
from. "
xxxxxxxxx
LITTLEPAGES MOVE TO NEW QUARTERS
Littlepage, Littlepage, Porter, Littlepage & Williams,
radio attorneys and counsellers at law in Washington, D. C. , have
announced the removal of their offices from the Boren Building,
815 - 15th Street, to Suite 1036-1046 Investment Building, 15th
and K Streets, N.W.
XXXXXXXXX
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7/25/39
RCA TELEVISION ANTENNAS ANNOUNCED FOR AMATEURS
Three television receiving antenna systems, designed
to meet the exacting scientific requirements determined by RCA
Victor's seven-year, $2,000,000 field test of television receivers
and antennas, have been announced for sale to television amateurs
and experimenters by the RCA Manufacturing Company. The Company
has previously announced a number of tubes and parts to enable
television-minded amateurs to construct their own receivers.
Each of the three antennas is designed to bring in tele¬
vision, as well as standard broadcast signals, with maximum
efficiency under different conditions of reception. Together,
they provide for every contingency, from the problems caused by
reflection in city and mountain areas or where other obstructions
exist, to the simpler problems of reception in suburbs and in
relatively unobstructed localities.
XXXXXXXXX
WOR TO TRY TO TUNE IN MAP^
When the planet Mars comes a' visiting Thursday (July 27)
WOR engineers and a Hayden Planetarium executive will station them¬
selves at a giant radio receiving station at Baldwin, Long Island,
in an attempt to pick up signals from the planet.
With Earth and Mars closer together than at any time
since 1924, observatories all over the world will train their tele¬
scopes on the mysterious orb in an effort to learn more about its
characteristics. The radio engineers will be busy at the same
time trying to solve the ever present question of whether or not
life exists on the far away astral body.
Station WOR has requested the Army Signal Corps and the
Navy Communications transmitters to remain off the air, except in
the case of emergency, during the period from 9:30 P.M. to 10:30
P.M.,EST, in order that many frequencies may be cleared for the
experiment. At 10 P.M. Earth and Mars will be 36,030,000 miles
apart. The maximum distance between the two planets is 61,000,000
miles. It is estimated that it would take approximately th2?ee
minutes for a radio signal to flash from one point to the other
on July 27 when Hans Christian Adamson, assistant to the President
of the Hayden Planetarium, and WOR engineers tune more than forty
powerful receivers to the frequencies they believe the Martians
most likely to use.
"In 1924 WOR reported it had heard signals which appar¬
ently were not from any known transmitter on earth", a WOR release
states. "Should they be successful in intercepting a signal from
Mars this year they should be entitled tc several important
awards offered by distinguished scientists. "
X X X X X X X
12 -
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■■ ; V E X x
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Fly, Successor To McNinch, Backed By Corcoran .
Mrs. Elliott Roosevelt Buys KTAT .
Craven Report On Ship Radio Power Is Adopted .
Rise In Radio Factory Operation Shown By Report .
Future Of McNinch In Doubt; U. S. Job Expected . .
Four New Stations Authorized By FCC .
Mars Ignores Radio Signals From Mother Earth .
FCC Acts On 290 Of 325 Hearing Docket Cases . .
Lohr To The Rescue .
British Radio Licenses Increase 5 Percent..,,, .
Trade Notes . . .
Radio An Instrument Of Peace, Says BBC Chief .
Kenyan Manager of G-E Radio Transmitter And Tube Sales
RCA Wins Disk Right In Court Decision . .
KSTP Arranges To Buy RCA Television Unit . .
.2
.3
.4
o5
. 6
. 6
.8
.8
.8
.9
10
11
11
12
No. 1144
9
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FLY, SUCCESSOR TO McNINCH, BACKED BY CORCORAN
James Lawrence Fly, gangling soft-spoken Texan who on
Thursday was nominated, by President Roosevelt as a member of the
Federal Communications Commission to succeed Frank R. McNinch,
resigned, had the backing of Thomas G. Corcoran, who is reputed
to have suggested McNinch’ s appointment,
Mr. Fly, who is General Counsel of the TVA, is expected
to encounter little opposition before the Senate Interstate Com¬
merce Committee despite his affiliation with the New Deal’s left
wing. He is not, as has been reported, a former secretary of
Senator Pat Harrison, of Mississippi. His name, it was said,
was confused with that of Eugene Fly in the Internal Revenue Bureau.
While he was not designated as FCC Chairman at the time
of his appointment, it is understood that he has been assured
that he will be so designated by President Roosevelt once he has
been confirmed.
Friends of Commdr. T.A.M. Craven, who has been supported
for the chairmanship by organized broadcasters and radio manu¬
facturers, still clung to the faint hope that he may be named
Chairman if Mr. Fly arouses any opposition on Capitol Hill.
Mr. Fly, #io successfully handled TVA' s litigation before
the U. S. Supreme Court and weathered the feud among the TVA
Directors, has been considered for a half a dozen top New Deal
jobs, it is understood, even though he was introduced to Government
service by Herbert Hoover,
In 1929 he was appointed Special Assistant to the
Attorney General in charge of anti- trust cases and in August, 1934,
was made TVA General Counsel.
Mr. Fly's appointment, it is understood, had the approval
of the retiring FCC Chairman.
Chairman McNinch' s resignation does not become effective
until September 1st, and it is reported that he is planning to let
loose a final broadside against his critics and "unpurged” colleaguet
on the Commission.
Mr. Fly' s nomination is for the remainder of the seven-
year term of Mr. McNinch, which will expire July 1, 1942.
Mr. Fly has taken a leading part in the Administration' s
public-utility drive, but his service in this field dates back to
1929, when as Special Assista.nt United States Attorney Generel he
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7/28/39
began and continued for six years to defend the Government as
counsel in actions involving restraint of trade under Federal
anti-trust laws and regulatory measures under commerce power.
Now, at 41, he is rated one of the most accomplished of
the Administration’ s younger men.
Bom February 22, 1898, in Seagoville. Dallas County,
Texas, the son of Joseph Lawrence and Jane (Ard) Fly, the FCC
Chairman- designate was graduated from the Dallas High School in
1916, from the United States Naval Academy in 1920 and from the
Harvard Law School in 1926.
In June, 1923, Mr. Fly retired from the naval service
and married Miss Mildred Marvin Jones of San Rafael, Calif. In
1925 he was serving as law clerk with Burlingham, Veeder, Hasten
and Fearey in New York City. He was admitted to the New York and
Massachusetts bars in 1926 and practiced with White & Case in New
York until 1929, when he entered the Government service,
XXXXXXXXXX
MRS. ELLIOTT ROOSEVELT BUYS KTAT
The Federal Communications Commission this week author¬
ized Mrs. Elliott Roosevelt to acquire all the outstanding common
stock of the Tarran Broadcasting Co. , licensee of Station KTAT,
Fort Worth, Texas, from Raymond E. Buck for $101,570.
The authorization was contingent upon the surrender of
the license for Station KFJZ, also at Fort Worth, of which Mrs.
Roosevelt is President and Director. It is proposed to make KTAT
the key station of the Texas State network, which is headed by
Elliott Roosevelt, son of the President.
XXXXXXXXXX
CRAVEN REPORT ON SHIP RADIO POWER IS ADOPTED
The Federal Communications Commission this week adopted
the report of Commissioner T. A. M. Craven of May 19, last, relative
to the power requirements of ship radio transmitters.
The Commission, had under considers. tion the proceedings
upon the hearing conducted for the purpose of determining the
power requirements for ship radio transmitters, in order to comply
with the terms of treaty and statute, and as set forth in para¬
graph 12(c) of the Commission’s Ship Radio telegra.ph Safety Rules,
as modified January 18, 1939,
XXXXXXXXXX
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7/28/39
RISE IN RADIO FACTORY OPERATION SHOWN BY REPORT
Continued increase in radio factory operations this
year over 1938 were disclosed in the April employment report of
the U. S. Bureau of Labor Statistics, just released, but with
decreases from the preceding month of March. A supplementary
report stated that in the monthly turnover rate per 100 employees,
there were layoffs in radio factories of 3.64 per hundred last
April, and 1.94 per hundred in the following month of May compared
with 12,19 in May 1938. The ratio of new radio employees hired
was 3.38 per hundred last April and 8.73 in May, compared with
6. 68 in May 1938.
The April Government report stated that radio employment
last April declined 4.3 percent from the previous month of March
but was 21.5 percent above radio employment in April 1938. The
April index figure was 94. 6 compared with the previous March
index of 98.9.
Radio factory payrolls for April declined 5.1 percent
but were 22.8 percent above radio payrolls of April 1938. The
April index figure on payrolls was 80.8 as compared with the
previous March index of 85.1.
Average weekly earnings last April of radio factory
employees were reported at $21.19, five cents more than in March,
and 1.0 percent above the April 1938 average. For all manufactur¬
ing industries the April 1939 average weekly earnings were $23.82,
a decrease of 2.1 percent from March but 7 percent above April
1938. The average weekly earnings of all durable goods manu¬
facturers was $26.98, a decrease of .5 percent from the previous
month of March but 12 percent above the April 1938 average.
Average hours worked per week last April in radio
factories were 36.2 hours, a decrease of 1.3 percent from the
March average of 36,6 hours and were 7.7 percent above the April
1938 average. The national average working hours of all manufac¬
turing industries last April were 36.4 hours, a decrease of 2.1
percent from the March average of 37.1 hours. The national aver¬
age working hours of all durable goods manufacturers in April
was 36.5 hours, a slight decrease from the March average.
Average hourly earnings last April of radio factory
employees were 58.6 cents, .6 percent above the March average of
57.8 cents but 5.5 percent below the radio average hourly earnings
for April 1938. The national average hourly earnings last April
of all manufacturing industries were 64.8 cents, a slight decrease
from the preceding month, and the national average of all durable
goods manufacturers was 72.6 cents compa.red with Iferch average
of 72.7 cents.
XXXXXXXXX
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7/28/39
FUTURE OF McNINCH IN DOUBT; U. S. JOB EXPECTED
Just where Chairman Frank R. McNinch will be transferred
following his resignation from the Federal Communications Commis¬
sion on September 1st is conjectural, but it is understood that
he has been assured that a place will be made for him in the
Government service.
It is doubtful that he will return to the Federal Power
Commission because of opposition to him on Capitol Kill.
One story is that he will return to private law practice
but with a sinecure as Special Assistant to Attorney General Murphy.
Reports of his state of health also vary widely. His
friends insist that he has all but recovered from his stomach
ailment which has kept him away from the FCC for most of the two
years that he has been Chairman, while others maintain that his
malady is incurable.
Mr. McNinch, who was appointed as FCC Chairman in the Fall
of 1937 to do a '’house cleaning” Job, has had an odd political
career. A former Mayor of Charlotte, N. C. , he deserted the
Democratic party when A1 Smith was nominated for President and
helped swing North Carolina to Herbert Hoover.
Mr. Hoover rewarded him by appointing him to the Federal
Pov/er Commission, but when Franklin Roosevelt was nominated,
Mr. McNinch agilely Jumped back on the Democratic bandwagon and
became an ardent New Dealer. He soon became associated with
Corcoran, who also first came to Washington under the Hoover
standard.
Almost from the beginning McNinch aroused opposition both
in the Commission and in the industry by his attempts to impose
censorship on broadcasting, his ideas that radio stations are
quasi-public utilities, and his hostility to newspaper o\7nership
of broadcasting outlets.
His Waterloo came last Fkll when he belatedly set about
"house cleaning” by abruptly dismissing Hampson Gary, General
Counsel, G. Franklin Wisner, Press Relations Chief, Davis G.
Arnold, Chief Examiner, and others in a widely publicized ”purge”.
Commissioners Craven and Payne aroused his wrath by
voting against the "purge”, and McNinch thereafter devised, with
Corcoran, the idea of reducing the Commission to a three-man
agency to "purge” the recalcitrant Commissioners,
He got as far as having Senator Wheeler (D.), of Montana,
introduce such a bill early in the session, but such an outcry of
dictatorship" was raised in the press and the radio industry that
even Mr. Wheeler shortly thereafter pigeon-holed the plan.
xxxxxxxx
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FOUR NEW STATIONS AUTHORIZED BY FCC
Construction permits for four new broadcasting stations
were granted tentatively this week by the Federal Communications
Commission. Two of them are to be operated by newspaper pub¬
lishers.
The applicants are:
Niagara Falls Uazette Publishing Company, for a new
station in Niagara Falls, N.Y. , to operate on the frequency
1260 kc. , with power of 1 KW, during daytime hours.
Vincennes Newspapers, Inc. , Vincennes, Indiana, for a
construction permit to erect a new station to operate on 1420 kc.,
with 100 watts, unlimited time.
Pontiac Broadcasting Company, Pontiac, Mich., for a
construction permit to operate on frequency 1100 kc. , with power
of 1 KW, daytime only.
John R. Pepper, G-reenville, Miss., for a construction
permit to erect a new station to operate on 1310 kc. , with power
of 100 watts night, 250 watts, until local sunset, unlimited time.
Two license transfers also were approved.
Acting on the application of Charles R, Cook, Trans¬
feror, for consent to the transfer of 127-| shares of the Commo¬
dore Broadcasting Company, Inc. , Licensee of Station WJBL,
Decatur, Illinois, to the Decatur Newspapers, Inc., the Commission
granted the application for Consent to Transfer Control of the
Commodore Broadcasting Company, Inc. , licensee of WJBL, to Decatur
Newspapers, Inc, The station operates on 1200 kc. , with 100
watts, sharing with Station WJBC,
The Commission also granted the application of Corn Belt
Publishers, Inc. , Transferees, for Consent to Transfer of Control
of Drovers Journal Publishing Company, Licensee of Station WAAF,
to Ralph W. Dawson, et al, transferees. Station WAAF operates
on 920 kc., 1 KW, day.
XXXXXXXXXX
MARS IGNORES PADIO SIGNALS FROM MOTHER EARTH
Inhabitants of Mars, if any, blithely ignored radio
signals of good will Thursday night ’Aiien Station WOR, New York,
attempted a unique, if futile, experiment to penetrate the
36,000,000 miles between Mother Earth and Mrs with a high fre¬
quency signal.
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The experiment, as described by the New York Times,
created considerable interest and some sarcastic comments by
spectators, chiefly newspaper men,
"The American Museum of Natural History, which has sent
expeditions to all parts of the terrestrial sphere until there
is very little of it left to explore, set out on its first inter¬
planetary adventure last night in an effort to communicate with
Mars by radio", the Times reported. "The occasion was the close
approach of Mars yesterday, when it was at the nearest point to
the earth since 1924,
"The museum's Martian 'expedition' was headed by Dr.
Clyde Fisher, Curator of the Hayden Planetarium, with Hans Christ¬
ian Adamson, Chairman of the Museimi's Committee on Public Press
Information, acting as co-leader. Headquarters for the Museum's
explorers were established at the Baldwin (L.I.) plant of Press
Wireless, Inc. , operated by WOR, where a group of radio engineers
gathered last night for the most ambitious radio program in
history.
"The first part of the expedition' s program consisted
in listening for signals that might possibly come from Mars.
Forty men sat listening tensely to powerful short-wave receivers
tuned in to different frequencies, ranging from 16 to 300 kilo¬
cycles. Many strange sounds came to their ears, leading some to
believe that Mars might be populated largely by a species of cats.
Others, more skeptical, ascribed the sounds to terrestrial atmos¬
pherics.
"At 11:22, when Mars was at a 30-degree angle to the
Baldwin position on the ea^rth, the signal was given for the second
phase of the evening's adventure. At a si.gnal from Mr. Adamson,
radio engineers threw into operation a high-frequency radio trans¬
mitter, operating on 20,000,000 cycles, with a power of 20,000
watts. A long dash was aimed straight at Mars, a tiny dot in the
heavens more than 36,000,000 miles away, which, to make me.tters
a little more difficult, was at that time completely hidden by
thick dark clouds.
"'If that signal should break through the ionized layer',
Mr. Adamson informed the curious by-standers, mostly newspaper
men, 'and if it should hit Mars squarely, it should be reflected
directly back at the earth by the mineral substance of Mars, The
round-trip of the signal should take approximately six and a half
minutes. '
"The forty powerful short-wave receivers tuned in once
again and the radio engineers sat listening for the signal's return.
Once again there were those who insisted they heard something.
But the skeptics in the gathering spoiled it all by pointing out
that the same sounds could be heard several minutes before the
expected time. To relieve the tension some one offered the
explanation that the Martians had bounced the signal back before
it reached them. "
xxxxxxxx
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7/28/39
FCC ACTS ON 290 OF 325 HEARING DOCKET CASES
The Federal Coraraunlcations Commission this week announc¬
ed that since November 15, 1938, it had disposed of 290 of a
total of 325 broadcast hearing docket cases. Of the 35 not dis¬
posed of by the Commission, 12 cannot be acted upon by reason of
contingencies beyond the control of the Commission, such as pos¬
sible conflict with Havana Radio Broadcast Treaty and pending
litigation. Of the remaining 23 docket cases decisions are in
the course of preparation for early action by the Commission.
In addition to the foregoing 325 cases, there are 19
cases recently heard which are not available to the Commission for
action because of lack of completion of the cases by litigant
parties to the proceedings,
XXXXXXXX
LOHR TO THE RESCUE?
Q^oting an International News story, Earl Godwin, NBC
commentator in Washington, said that it had been reported that
some exhibitors at the New York World’ s Fair were starting a
movement to try to get MaJ. Lennox Lohr, President of the
National Broadcasting Company, to pull the New York Fair out of
the red. According to the New York Times, the ftiir is 100,000
persons a day behind in attendance necessary to msk:e it a financial
success.
Major Lohr, along with Mr. Rufus Dawes, is credited
with the success of the Chicago World’s Fair,
xxxxxxxxxx
BRITISH RADIO LICENSES INCREASE 5 PERCENT
The British Post Office issued 455,174 radio receiving
licenses during May, representing a net increase of 21,544, or
5 percent, in the number of license holders during the month after
making allowance for expired licenses and renewals, according to
the American Commercial Attache at London. —
The approximate total number of licenses in force at
the end of May was 8,984,250, compared with 8,627,860 at the end
of May 1938, an increase during the year of 356,390 or 4,1 percent.
XXXXXXXX
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7/8B/39
. TRADE NOTES
The Federal Communications Commission has adopted
Standards of G-ood Engineering Practice for Ship Stations, to
become effective immediately. These Standards will be printed
in a later issue of the Federal Register. Copies are now avail¬
able for inspection in the office of the Commission.
Station KWFT, Wichita Falls, Texas, is now available
to CBS clients as a member of Columbia’s Southv/estem Group.
This latest addition to CBS facilities operates on 620 kilocycles,
with power of 250 watts nighttime, and 1,000 watts daytime.
Radio industry payments of the Federal 5 percent excise
taxes were 23 percent larger in the first six months, ending June
30, 1939, than in the similar half-year period of 1938, although
the fiscal year radio tax collections were 17.3 percent below
1938. Radio tax collections in June, largely covering industry
operations for last May, however, showed a sharp reduction of
42.4 percent from June 1938. The June radio tax collections were
$258,438.23 compared with June 1938 collections of $448,882.61.
John Joseph Gilbert, Vice-President and a Director
of the International Standard Electric Corporation and Export
Manager of the International Telephone and Telegraph Corporation,
died at his home in Brooklyn Wednesda.y at the age of 67. Among
his business associates Mr, Gilbert was credited with being one
of the pioneers in extending the sale and use of the telephone
in foreign countries. Over a period of years, beginning shortly
after the Spanish- American War, he was described as having played
a conspicuous part in the sales of equipment made in the United
States to South America and Europe.
The Federal Communications Commission this week announc
ed the adoption of its final order granting the application of
Mutual Broadcasting System, Inc., Chicago, Ill., for authority to
transmit programs to broadcast stations in Canada,
The Federal Communications Commission tentatively reject¬
ed this week a proposal to set up a radio paging service for
physicians and surgeons in the New York City area, Sherman C,
Amsden, who operates a doctors’ telephone service in that city,
asked the Commission for a construction pemit to erect a special
emergency radio station.
XXXXXXXXX
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7/28/39
RADIO AN INSTRUMENT OF PEACE, SAYS BBC CHIEF
Addressing his remarks in German to listeners in Germany,
F. W. Ogilvie, Director General of the British Broadcasting Cor¬
poration, recently spoke on the Influence of broadcasting in
promoting peace over BBC international transmitters. His remarks
follow, in part:
"What can broadcasting do for peace? Well, some fifteen
years ago perhaps the answer might have been: Not much. Broad¬
casting was then fundamentally a regional matter only: you would
have been lucky if, in Bremen, say, you could hear the broadcast
of the launching of a ship at Hamburg only eighty km. away; and it
would have been quite unthinkable that listeners in the north of
Germany should hear, say, the chug of that lovely little train
from Partenkirchen up the Zugspitz in the south, or the clanking
of textile machinery at Breslau in the east. Then broadcasting
became national, covering pretty well the whole of a country; and
now, quite fairly quickly, it has become international. Broad¬
casting across national frontiers - on short waves principally,
but also to a large extent on medium and long waves - is now a
regular feature of most broadcasting organizations; and it is
obviously something which has not merely come to stay, but is
likely to develop much farther, both technically and in other ways.
"The BBC was comparatively late in entering this field of
international broadcasting. It was only eighteen months ago - in
January of last year - that our first service in a foreign language
began: we now have eight such services, including this one in which
I have the honor to be speaking to you tonight. You also, of
course, like other countries, do a great deal of broadcasting in
foreign languages.
"Well, what are we to think of it all? Each one of us, of
course, is entitled to his own opinion. My own personal opinion,
for what it is worth, is that this world- wide development of
international broadcasting has in it, perhaps, greater and more
far-reaching possibilities of good than almost any other movement
of our time. Have not the troubles of the world throughout history-
troubles within a country, and troubles internationally - been due
very often and very largely to misunderstanding; to ignorance of
facts and ignorance of other people’s ways of life and their
points of view - which also are facts, and facts of a very import¬
ant kind? For in the last analysis people act in such-and-such a
way because they think in such-and-such a way; and I suppose we
should all agree that wrong thinking has led most of us, at one
time or another, both privately and publicly, into needless dif¬
ficulties.
"To help us to know one another in things big and little:
that surely is what international broadcasting can do as perhaps
nothing else can, and is not that one of the surest ways to peace?
In our BBC foreign language services, as in our home services, we
try to give listeners what we think will interest them, and we are
always very glad to know what listeners, at home or abroad, think
about our broadcasts. "
XXXXXXXX
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7/28/39
KENYAN MANAGER OF G-E RADIO TRANSMITTER AND TUBE SALES
George W. Kenyan, for the last nine years Sales Manager
of the Radio Department of the General Electric Company at
Schenectady, has been named Manager of the Transmitter and Tube
Sales Divisions of the Company’s recently organized Ra.dio and
Television Department. The appointment, announced by Dr. W. R. G.
Baker, Department Manager, is effeftive at once, Mr. Kenyan will
continue to make his headquarters in Schenectady.
Mr. Kenyan graduated from the University of Texas in
1916 and entered the Test Department of General Electric in October
of the same year. Except for a period from 1917 to 1919, when he
enlisted for military service, he has been continually associated
with the company. From the test he was transferred to the Centi’al
Station Department as a commercial engineer in 1919, and in 1921
entered the Radio Department and has since been associated in this
line of work.
XXXXXXXXX
RCA WINS DISK RIGKT IN COURT DECISION
RCA Manufacturing Company, Inc. , co.mplainant in an
action against Paul Whiteman, W. B.O. Broadcasting Corporation and
ED in, Inc., has established its right to control the use by radio
broadcasters of phonograph records of its manufacture, according
to a recent decision of Judge Vincent L. Leibell of the United
States District Court for the Southern District of New York.
Although not a party, National Association of Broad¬
casters appeared in the action by its counsel and was permitted
by the Court to argue the position of the broadcasting industry
against that of the record manufacturer. Its counsel also filed
extensive briefs which were carefully studied b3'' the Court.
The Court has directed that an injunction be issued in
favor of RCA Manufacturing Company and against W. B.O. Broadcasting
Corporation, operator of Station WNEW, permanently restraining the
further una.uthorized broadcasts of Victor and Bluebird records.
Injunctive relief is also directed in favor of RCA Manufacturing
Company and against Paul Whiteman from further asserting, either
directly or through National Association of Performing Artists,
or otherwise, that he has the right to prevent or permit radio
broadcasts of Victor and Bluebird phonograph records embodying his
performa.nces unless an express reservation of this right ?7as made
in his contract of employment. NAPA is an association recently
organized to assert the claims of certain performing artists that
they have the right to control the commercial use of records of
their performances. Even where a reservation was made by Whiteman
with respect to radio broadcasts of his records, injunctive relief
was directed in favor of RCA Manufa.cturing Company against Whiteman
11
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7/28/39
from further asserting that he has the sole and exclusive right
to prevent or permit radio broadcasts of RCA Manufacturing Company' s
records embodying his performances.
The decision establishes that both the record manu¬
facturer and the performing artist are possessed of riglits. The
RCA Manufacturing Company rights, it was found, arise out of its
manufacture of the records and their marketing with notices appear¬
ing on the labels and envelopes restricting their use to the home.
The Court further found that use of phonograph records by broad¬
casters without the manufacturer’ s pennission constitutes unfair
competition with the manufacturer.
Officers of RCA Manufacturing Company stated that its
counsel are carefully considering the legal effect of the deci¬
sion, The Company plans to adopt a policy under #iich it will
make many Victor and Bluebird records available for broadcasting
purposes upon payment by broadcasters of a reasonable fee; also,
it is contemplated that such fees will be equitably divided
between the recording artist, the copyright proprietor and the
record manufacturer so that reasonable compensation may be deriv¬
ed for groups which have heretofore complained of uncontrolled
broadcasts of records, and full Justice done to the artist, the
copyright proprietor and the record manufacturer, as well as to
radio broadcasters themselves,
xxxxxxxx.
KSTP ARRANGES TO BUY RCA TELEVISION UNIT
Arrangements for the immediate installation of a tele¬
vision picture system for demonstrating television to the public
of St. Paul and of the surrounding territory, have been completed
by Stanley Hubbard, resident of Station KSTP, with the Engineer¬
ing Products Division of the RCA Manufacturing Company.
The television equipment is similar to that now in use
at the New York World's Fair and at the Golden Gate Exposition,
where the public has an opportunity to be televised and to see
others televised. It consists of an electronic camera, with the
famed Iconoscope television "eye", which picks up the images and
carries them by special cable to a number of standard home tele¬
vision receivers,
Mr. Hubbard plans first to install the equipment, which
is being shipped from the RCA Manufacturing Company' s Csjnden,
New Jersey plant, in the KSTP studios, at St. Paul. Later, he
expects to set the equipment up in outlying districts which are
not likely to have television service for some time yet, so that
they too will have an opportunity to see the excellent pictures
that are now possible with the type of high-definition television
system that is now servicing the New York metropolitan area with
regular television programs.
XXXXXXXX
- 12 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF AUdUST 1, 1939.
Politicians Again Manhandle Radio Industry . 2
McNinch To Submit Report On FCC "Reforms” . 3
Second Recess Meeting Scheduled By FCC . 4
Copyright Parley Slated; Legislation Delayed . 5
BBC Plays Up U. S. Short-Wave Programs . 5
U. S. And Mexico Near Agreement On Radio Fact . 6
Reargument Scheduled In "Brooklyn Case" . 6
Fly Nomination Approved After Closed Inquiry . V
Single Radio Question In Census Sample Test . T
G. E. Sees Television Widespread In Fer? Years . 8
Export Trade To Be Theme Of British Padio Sho?/ . 9
Military Permit System For Czechs Abolished . 9
Radio Debate On FCC Rules Proposed By Curran . 10
Two-Fifths Of Nation Gets News From Radio . . 11
RCA Quarterly Dividend Declared . ,12
No. 1145
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August 1, 1939.
POLITICIANS AOAIN MANHANDLE RADIO INDUSTRY
( Editorial)
Once more a political appointee has been named by
President Roosevelt to head the Federal Communications Commission.
Although Mr. James M, Fly, slated to be the new Chairman, has an
excellent record and may prove a very good man, nevertheless he
would fit in just as well as the head of any other Government body.
Like so many of his predecessors, he has no particular knowledge
of the radio or communications industries and, as far as they are
concerned, he is just another one politically favored who has been
wished on them and who, at their expense, must learn the business
from the ground up.
Of the six Chairmen, the Radio and Communications
Commissions have had during their twelve years of existence, only
two of them - the late Admiral Bullard and General Saltzman - had
any technical knowledge of the industries. The others - Judge
Sykes, Judge Robinson, Messrs. Prall and McNinch - were political
appointees.
Although the life and death of the broadcasters is in
the hands of this Government group, it is doubtful even with the
aid of the National Association of Broadcasters, which has always
been very weak in this respect, and still is, whether they have
been a factor or in many instances even been consulted in the
naming of a single Commissioner. The broadcasters "see” or commun¬
icate with a lot of people on the Hill and run around in a lot of
circles where they are beautifully kissed off each time, but when
the smoke clears away they find some Tommy Corcoran, as was sup¬
posed to be the case with Mr. Fly, has saddled another politician
on them. True some of these appointees have proved to be very
capable men but that wasn't why they landed on the Commission,
It was because the Administration and the politicos wanted to put
them there. That they proved themselves of any value was a lucky
break for the industry.
Of the twenty-two men appointed to the FRC and FCC, only
eight of them had any previous redio or communications experience.
They were: Admiral Bullard, foraer radio expert of the U. S. Navy;
0. H. Caldwell, radio engineer and editor; Henry A. Bellows, ra,dio
station oprator; Col. John F. Dillon, U. S. Radio Inspector;
Sam Pickard, director of an agricultural college radio station;
General Saltzman, former Chief of the U. S. Signal Corps; Irvin
Stewart, Sta.te Department radio chief; and Commander T.A. M. Craven,
radio engineer and former Navy radio expert,
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8/1/39
As against those eight, either the White House or the
politicians, or both, have been responsible for the appointments
of the follov/ing fourteen Commissioners who h?d had no previous
radio experience but who were "right" politically: Tha.d Brown,
Judge Robinson, Judge Sykes, Annlng S. Prall, George Henry Paj’ne,
James H. Hanley, Frederick I. Thompson, Frank R. McNinch, Governor
Norman S. Case, Hampson Gary, Harold A, Lafount, William D, L,
Starbuck, Paul Walker, and the man who, up to a week ago, prob¬
ably not one In a hundred In the radio or communications industry
had ever heard of - Mr. James L. Fly.
X X X X X X X
McNINCH TO SUBMIT REPORT ON FCC "REFORMS"
Frank R. McNinch, before formally quitting as Chairman
of the Federal Communications Commission, will deliver his swan
song on his two-year tenure in a report on "the major improve¬
ments in the FCC since I took office. " His resignation is
effective September 1st.
The report, which will be submitted to President Roose¬
velt, is expected to be a defense of the purge- that- failed and a
final slap at Commissioners T. A. M. Craven and George Henry Payne,
who resisted his would-be dictatorship.
Mr. McNinch, i/tho will enter the private practice of law
upon his return from an ocean voyage, has been assured a retainer
by the U. S. Government that will be as large as the salary he
earned as FCC Chairman. Either as Special Counsel, or in a
similar capacity, Mr. McNinch will handle special litigation,
largely in the power field, for the Justice Department at a r eput-
ed retainer of $10,000 a year. At the same time he will be per¬
mitted to engage in the private practice of law.
In his letter of resignation, released at the White House
late Friday, Mr. McNinch said that the Federal Communications
Commission cannot function to the maximum of efficiency with the
"present personnel and within the inadequate framework" of the
Communications Act.
He pointed out in his letter that the President had
asked him to resign as Chairman of the Federal Power Commission in
1937 and take over the FCC Chairmanship to reorganize its work
"to enable it to function more speedily and more uniformly and more
nearly to our satisfaction. "
"We both expected this task would be accomplished long
before this time", he added. "Once having undertaken this work,
however, I found it so fraught with problems and difficulties and
the Commission so disunited that not until now have I felt Justi¬
fied in respectfully requesting you to release me from further
service at the Commission.
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8/1/39
"I do not believe I could contribute a great deal more
by continuing as Chairman unless I desired to continue in the work
indefinitely, which I have no desire to do, ”
Mr. McNinch said reorganization of some Commission
procedure and ’’certain personnel changes” had contributed toward
a marked imprevement in its efficiency, but ”it is not possible
to reach the maximum of efficiency in the public interest with
the present personnel and within the inadequate framework of the
Communications Act”.
Accepting the resignation, the President in a ”My dear
Frank” letter, said he did so "with reluctance and sincere regret
because of the high type of service you have rendered in the
public interest. ”
”I realize that I imposed a heavy burden upon you when
I asked you to resign as Chairman of the Federal Power Commission
and assume the duties of the Chairmanship of the FCC. I know
that the task of reorganization, with which you were confronted,
was a heavy one, and I appreciate your present conviction that
you could not see the work through to completion without continu¬
ing with the Commission indefinitely.
’’For all that you ha.ve done - much of it imposing a
tremendous strain on your physical strength - I desire to express
gratitude and appreciation. And although your retirement from
the public service is deeply regretted I do hope that in the
less exacting demands of private life you will find speedy
restoration to health and strength.”
xxxxxxxxxx
SECOND RECESS MEETING SCHEDULED BY FCC
The Federal Communications Commission will hold another
"summer session” to clear up accumulated business next Monday.
Because two of its members - Commissioners Walker a.nd Pa,yne -
leave for the Pacific Coast August 9th on FCC business, it was
decided to schedule the meeting at that time.
The FCC at its meeting last week virtually cleaned up
its docket with all cases ready for decision said to be current.
XXXXXXXX
The Federal Communications Commission granted the
application of Orville W. Lyerla for a construction permit to
erect a new station at Herrin, Ill. , to operate on the frequency
1310 kc. , with power of 100 watts night, 250 watts local sunset,
unlimited time.
XXXXXXXX
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8/1/39
COPYRIGHT PARLEY SLATED; LEGISMTION DELAYED
Organized broadcasters and spokesmen for the Am.erican
Society of Authors, Composers, and Publishers will meet in New
York on Thursday of this week in an effort to reach an agreement
on the terns of a new contract to govern the broadcasting of
copyrighted music.
As there appears no prospect of remedial legislation
by Congress at this session, the copyright question again will
have to be settled between the National Association of Bi’oad-
casters and ASCAP in a give-and-take barga.ining conference as in
the past.
The NAB Copyright Committee, headed by Neville Miller,
has been accorded broad powers to call a special NAB convention
if it is unable to reach an agreement with the ASCAP officials.
Prolonged negotiations may follow the New York meeting
as ASCAP to date has shown little inclination to substitute a new
type of uniform performing rights contracts, as desired by NAB,
for the current schedules, whoch do not expire until December 31,
1940.
Meanwhile, Senator Wheeler, Chairman of the Senate Inter-
State Commerce Committee, has entered the copyright negotiations
by sponsoring a bill providing for the clearance of copyri^t at
the source, whether by network or transcription.
Tne Wheeler Bill (S-2486) would amend the 1909 copyright
law by providing that in case of an infringement by broadcasting,
the liability for the use of a copyrighted work over two or more
stations shall rest solely with the originating station. In the
case of electrical transcriptions or other foims of recorded
works, the responsibility would rest solely with the ma.nufacturer.
No action is expected on the legislation, however, before
next year.
XXXXXXXX
BBC PLAYS UP U.S. SHORT-WAVE PROGRAMS
As a result of letters received showing that the
American page in Wo rid- Radio published in London by the British
Broadcasting Corporation and devoted to international radio pro¬
grams and to cover adequately the outstanding transmissions
received from the United States, this publication has decided
to devote two pa.ges to American short-wave programs and notes.
The first of these double-page spreads appeared in the
issue of World- Radio for July 14 th.
XXXXXXXX
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8/1/39
U.S. AND MEXICO NEAR AGREEMENT ON RADIO PACT
After months of negotiations, the United States and
Mexico appear to be reaching an accord on the allocation of
broadcasting frequencies for the North American continent. This
country, however, has been forced to consent to the continuation
of the troublesome "border stations" which turn their powerful
signals toward the United States.
Under the compromise which is expected to be accepted
both by the State Department and the Mexican Government, the
Havana agreement, with modifications, will become effect:. ve on
February 1st next. Operation of this treaty has been held up by
the refusal of Mexico to sign it.
The Havana Treaty would have eliminated the "border
stations", which are operated chiefly by ex- American broad¬
casters and are aimed at American rather than Mexican listeners,
but the compromise pact would permit Mexico to use six of its
exclusive channels on the border at specified locations.
If the February 1st effective date is agreed upon, it
will mean the Federal Communications Commission will be in a
position to reallocate broadcasting facilities in this country
in accordance ?/ith the terms of the Havana Treaty. This will
mean a substantial number of frequency shifts, with many stations
sliding 10 to 30 kilocycles within the band 550 to 1600 kc. How^
ever, the fact that six of Mexico’s exclusive channels would be
used on the border instead of in the interior of the country,
will complicate certain of the frequency assignments contemplated
originally.
xxxxxxxx
REARGUMENT SCHEDULED IN "BROOKLYN CASE"
The Federal Communications Commission, upon its own
motion, has ordered a reargujnent before the Commission on October
19, 1939, in the matter of the Voice of Brooklyn, Inc. (WLTH),
United States Broadcasting Corp. , (WAFU)) , for renewal of licenses,
and the Brooklyn Broadcasting Corp. (WBBC) , for modification of
license, insofar, only, as said application requests the facil¬
ities of WARD and WLTH.
XXXXXXXX
- 6
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8/1/39
FLY NOMINATION APPROVED AFTER CLOSED INQUIRY
The Senate Interstate Commerce Committee reported
favorably the nomination of James Lawrence Fly as a member of
the Federal Communications Commission this week after questioning
the nominee in executive session. Prompt confirmation by the
Senate was expected.
The White House is understood to have consulted Senate
leaders before announcing the nomination to make sure that Mr.
Fly would be confirmed before adjournment.
One of the sponsors of Mr. Fly on Capitol Hill is
Senator Norris (Republican-Indepedent) , of Nebraska, father of
the TVA, with which the nominee has been associated as General
Counsel.
Meanwhile, broadcasters wondered whether Mr. Fly will
attempt to apply the regulatory methods used in the power and
public utility field to radio as did his predecessor. Chairman
Frank R. McNinch.
The latter encountered immediate opposition both on
the Commission and in the industry and was forced to abandon most
of his ideas for governing broadcasting as though it were a quasi¬
public utility.
xxxxxxxx
SINGLE RADIO QUESTION IN CENSUS SAliPLE TEST
A single radio question, ’’Does this household have a
radio set?”, has been included in the supplementary census schedule
to be tested in raid- August when the Census Bureau conducts a
special trial census in two Indiana counties, St. Joseph and
Marshall.
The special census, first of its kind ever undertaken,
is designed primarily to test questions on the proposed schedules,
according to Census Bureau officia.ls, and although results will
be compiled and made public later, the general interest in the
figures will be only tempora.ry, since the territory will be cover¬
ed again during the general population census in 1940. Final
selection of the questions to be asked in the general census will
not be made until the results of the special census have been
analyzed and appraised, Secretary of Commerce Hopkins said.
XXXXXXXX
7
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8/1/39
G.E. SEES TELEVISION WIDESPREAD IN FEW YEARS
Within six or eight years, according to General Electric
Company, “it is reasonable to assume that television facilities
will have pretty well covered the country and that television
receivers will be standard equipment in millions of homes, “
A booklet on “Television" was included this week with
the 68th quarterly report to G. E. stockholders. After describ¬
ing General Electric's activities in the field of television
production and manufacturing, the booklet takes a glimpse at
"the future of television".
“The ladies will be able to view the season's new hats
and gowns paraded on live models, see interesting cooking demon¬
strations and all kinds of products and appliances in actual use,
and receive lessons from experts in interior decorating and
gardening", the booklet says. “Television will make it possible
for the entire family to enjoy - at home - baseball, football,
sporting events of every kind, the theater, and other forms of
entertainment,
“Instead of doing to the motor shows to see the new
cars, we shall be able to sit comfortably in our living rooms
and see the new models paraded and demonstrated. The automobile
manufacturer can take us behind the scenes in his factory and
show us any step or process in the making of a car.
“It is possible that television will act as an
'electronic peddler'. The housewife will be able to see the
wares of department stores, make notes on bargains a^nd prices,
and then phone in her orders and save the many hours required in
going from store to store.
"Television is rapidly coming to be one of many electri¬
cal helpers, supplementing, not supplanting, its predecessors,
"Just as the telephone did not do away with the tele¬
graph, radio did not do away with the telephone, and television
will not do away ?7ith radio. But television can now aid these
other great benefits by extending man's horizons, and contribut¬
ing to his material comforts. "
xxxxxxxx
station Wl^T, Cedar Rapids, Iowa, will rejoin Columbia
on May 1, 1940. The station operates on 600 kilocycles, with
power of 5,000 wa.tts day and 1,000 w^atts night,
XXXXXXXXX
- 8 -
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8
8/1/39
EXPORT TRADE TO BE THEME OF BRITISH RADIO SHOW
Special displays of receiving-sets, batteries, loud¬
speakers, aerials, and anti-interference devices designed for
use overseas are to be an outstanding feature of the 1939 Radio-
lympia, Britain's annual radio exhibition, which is to take place
from August 23 to September 2. Every British radio manufacturer
marketing sets for oversea use will be represented, and guides
and interpreters will be in attendance to show the visitor that,
in whatever part of the world he lives, there is a British set to
suit his listening needs.
The export section is only one of the many innovations
designed to make the 1939 Radlolympia the most ambitious in the
Exhibition's seventeen-year history.
In addition to the extensive BBC exhibits - a miniature
Broadcasting House, containing displays reflecting every phase
of BBC activity, will be the central feature of the main exhibi¬
tion hall - there will be special displays by the British Army,
Navy, and Air Force, showing radio's part in the work of the
Forces, and the British Post Office, as usual, will take its
customers behind the scenes of its varied services.
A model factory revealing how a receiving set is made,
and daily demonstrations, by means of records, of good and bad
reception are other features that vdll be included for the first
time.
No spectacular developments in receiving-set design
are expected, but emphasis will be laid on the advantages of the
modem short-wave receiver and the refinements - press-button
tuning and remote-control, for exampel - that have been introduced
in recent years and further developed during the past twelve
months.
"Considerable space will be occupied by displays of
television apparatus, a branch of radio in which the British
manufacturer nay claim to lead the world", the BBC stated. "The
would-be viewer will have a unique opportunity of proving that
the 1939 vision receiver fully justifies the claim. "
XXXXXXXX
MILITARY PERI/ilT 3YSTEI\I FOR CZECHS ABOLISHED
The American Commercial Attache at Berlin reports that
the Ministry of National Defense (in liquidation) of the Protector¬
ate Bohemia-Mo ravia has announced that on their suggestion the
German military office (Wehrwirtschaftsingspektion Prag) abolish¬
ed the military permit system on the import and export of radio
9 -
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8/1/39
receiving sets. It will be remembered tiiat in addition to import
permits for which a few of 5 percent ad valorem is being charged,
radio apparatus in former Czechoslovakia was also subject to
military permit.
xxxxxxxx
RADIO DEBATE ON FCC RULES PROPOSED BY CURRAN
The Rev. Edward Lodge Curran, President of the Inter¬
national Catholic Truth Society, this v/eek challenged Representa¬
tive John Cochran (D, ), of Missouri, to a public debate on his
Bill to preclude the Federal Communications Commission from issu¬
ing any rules which would have the effect of “limiting interna¬
tional programs, originating in this country, which will reflect
the culture of the United States, or promote international good¬
will, understanding, or cooperation".
In a letter to Congressman Cochran, Dr. Curran sug¬
gested, "from the standpoint of public interest, that you arrange
with Mr. Neville Miller, President of the National Association
of Broadcasters, for a nation-wide broadcast on which I shall be
glad to defend the purposes of Section 42.03 of the rulings of
the Federal Communications Commission, while you criticize them. "
Dr. Curran also called Congressman Cochran' s attention
to the recently-adopted Code of Ethics of the National Associa¬
tion of Breadcasters which provides for equal radio facilities
for both sides of controversial issues, and he further reminded
the Congressman, in view of the protests filed with the Commis¬
sion against the adoption of Section 42.03, by the American
Civil Liberties Union and the National Association of Broad¬
casters, that, "I feel sure Mr. Miller will be only too willing
to grant your request."
"Naturally", said Dr. Curran, "I possess no freedom of
speech on the floor of Congress, and, therefore, I feel that the
importance of Section 42.03 entitles the American public to a fair
and open discussion of its merits and demerits. "
XXXXXXXX
Crosley Corporation and subsidiaries, Cincinnati, this
week reported net profit for the quarter ended June 30, of
equal to 35 cents a share on common stock, compared
with $208,916, or 38 cents a common share, in th preceding
quarter and $24,266, or 4 cents a share, in the June quarter last
year.
XXXXXXXXX
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..33
X X X X A ;: }c X x
8/1/39
TWO-FIFTHS OF NATION GETS NEWS FROM RADIO
While newspapers still hold a substantial lead in fur¬
nishing the nation with news, radio has made deep inroads into
the field, a survey published in the current Fortune discloses.
Most of the study deals with "The Press and the People",
but the following table is of equal interest to broadcasters.
In answer to the question, from what source do you get
most of your news about what is going on, the investigators ob¬
tained the following replies:
Total
Pro s-
perous
Upper
middle
class
Lower
middle
class
Poor
Negro
%
%
%
%
%
Newspapers
63.8
70.7
70.0
63. 6
58.1
51.6
Radio
25.4
17.8
21.0
26. 8
31.3
28.3
Friends
3.4
1.1
1.2
2. 5
4.8
12.2
Both
3.1
4.0
3. 5
3.1
2.7
1.4
Magazines
2.3
4.5
2.7
1.9
1.3
3.1
All other
1.3
1.2
1.1
1.5
1.0
1.5
Don' t know
.7
.7
.5
. 6
.8
1. 9
Commenting on the tabulation. Fortune says:
"Here a cloud, no bigger than a man’s hand, shows itself
above the horizon. True, the newspaper lead is ample; but there
is good cause for concern on the part of publishers in the fact
that nearly two-fifths of the nation has found it can get most of
its news without turning to newspapers; and that one-fourth relies
most heavily on radio - an entertainment medium to which news
transmission is admittedly a byproduct.
"Radio' s inroad deepens from top to bottom of the econom¬
ic scale, taking in nearly twice as many of the poor as the pros¬
perous. (The impecunious Negro depends on newspapers less than
all others, more on the gossip passed on by his friends. ) By
occupation, there are marked preferences. Executives, profession¬
als, and retired people rely on newspapers even more heavily than
do the prosperous; unemployed and students rely on radio even more
than do the poor.
"There is one more reason why the publishers should
ponder well the growing rivalry of radio: while the 63.8^ who still
favor newspapers are a plump majority, they are not a contented
majority. They don't like some things about the press; indeed,
many of them compare newspapers unfavorably to radio. "
Question 2 deals with which does the better job - radio
or newspaper, in the opinion of the people. According to the
survey, 83^ believe radio gets news to them more quickly, and
11
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8/1/39
surprisingly, Fortune says, 12.9^ consider the newspaper faster.
The press presents news more fully, in the opinion of 79.6^, and
on the score of accuracy the totals were almost identical - 38.3
for newspapers and 38,0 for radio. A total of 49.7^ said radio
gives news freer from prejudice . The newspaper's vote on this
latter point was 17.1%.
The interpreters of news are studied in Question 3:
''Which do you like best? - radio commentators, 39.3^; newspaper
editorials, 25.9; newspaper columnists, 10. 7, no choice, 18.4;
don’t know, 5.7. And so it appears", comments Fortune , "that
radio is the U. S. public's preferred source of news interpreta¬
tion. Indeed, the radio commentators are more popular than the
editorial writers and columnists combined. Even the prosperous,
who give the editorial writers a larger vote (33%) than any other
economic group, prefer the commenta.tors by a shade (34%); while
the poor favor the radio pundits six to one over the columnists.
The commentators ranked first of the three in every section of
the country, and among all occupationa.1 groups except profession¬
als, executives and retired people, who stand loyally by the press
on nearly all questions."
Totals on the fourth question: "If you heard conflict¬
ing versions of the same story from these sources, which would you
be most likely to believe?" p.re: A radio press bulletin, 22.7%;
a radio commentator, 17.6 (radio total 40.3); an authority you
heard speak, 13.0; an editorial in a newspaper, 12.4; an item in
a newspaper, 11.11; a columnist in a newspaper, 3.4 (newspaper
total 26. 9) ; depends on paper writer or speaker, 11,6; don^t know
8.2.
"There, perhaps is the most painful set of answers that
the press must swallow from its public. For reasons implicit in
Question 2, it may be an unjust answer, as much denoting an in-
appreciative body of readers as an inadequate press", the magazine
comments. "However, that extenuation cannot completely explain
away the weak hold on the public of the editorial writer and the
columnist. "
XXXXXXXX
RCA QUARTERLY DIVIDEND DECLARED
David Sarnoff, President of the Radio Corporation of
America, announced this week that a quarterly dividend on the out¬
standing shares of the Corporation's $3.50 Cumulative Convertible
First Preferred stock, and a quarterly dividend on the outstanding
shares of "B" Preferred stock, were declared at the regular meet¬
ing of the Board of Directors held July 28th. The dividend on the
First Preferred stock is 87^/ per share, and the dividend on the
"B" Preferred stock is $1,25 per share. These dividends are for
the period from July 1, 1939 to September 30, 1939, and will be
paid on September 30th to stockholders of record at the close of
business September 8, 1939.
XXXXXXXXXX _
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X X X X X X X
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF AUGUST 4, 1939
Congress Talks Radio, But Does Nothing About It . 9
FCC Denied Telephone Funds; Walker On Carpet . 3
Funds For Radio Conferences Refused By House.
Radio Set Exports Set New High For June .
NAB And ASCAP Fail To Come To Terms At Parley
Fly Confirmed Without Debate By Senate .
Carrier Power of G.E. S-r*v7 Stations Doubled...
Logan Bill Goes Over Until Next Year .
Baird Demonstrates Television In Color .
Radio Called ’’Enemy Of Correct Speech” .
Fly And McNinch Confer With Roosevelt .
Elliott Roosevelt’s Radio Talks Hit In House.
Senator Johnson Defends Proposed Liquor Ban . 9
Three Networks Report Gains For July . 10
Trade Notes . 11
MacLaren, New Zenith Production Manager . 12
Contract Let For WJSV 50 KW Transmitter . . . 12
No. 1146
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71
CONGRESS TALKS RADIO, BUT DOES NOTHING ABOUT IT
The first session of the Seventy- sixth Congress heard
a lot of talking about radio and the Federal Communj, cat ions Com¬
mission, but di.d nothing about it. All pending legislation, how¬
ever, including the McNinch-Wlieeler Bill to reduce the FCC to
three members, goes over until the 1940 session.
Similarly, there were several preliminary moves toward
a solution of the copyright problems, but no definite action was
taken, and the Senate finally decided this week not to ratify the
long pending International Copyright Convention before next year.
Congressional leaders on radio legislation expected that
the fate of the Wheeler Bill and suggested amendments to the
Communications Act will depend upon the success of the new FCC
Chairman, James Lawrence Fly, and the recommenda.tions he may have
to make to the Administration and Congress next session.
Relations between Chairman Frank R. McNinch and Com¬
mittees handling raddo legislation were never cordial, and the
House Appropriations Committee was outright hostile toward him
this year.
The immediate future of the FCC, it is believed, will
depend upon the ability of young Fly to win over these Congress¬
ional leaders if he is appointed Chairman of the FCC as rumored.
As 1940 is an election year, however, any further move to reduce
the membership of the Commission is likely to prove too hot to
handle even by a Democratic majority.
The session opened with the eyes of Congress on the FCC
because of the wide publicity given to the McNinch "purge".
President Roosevelt’s message to the Capitol, urging that the
old Commission be scrapped and a new agency be set up started a
display of fireworks that occupied public attention for weeks.
Senator Wheeler, while the sponsor of the McNinch bill,
was never enthusiastic over it, and as soon as the cries of
"dictatorship" were raised, he quietly shelved the legislation.
He is not likely to revive it next year on his own initiative.
House critics of the FCC. principally Representatives
Connery (D. ), and Wigglesworth (R. ), both of Massachusetts,
introduced resolutions demanding an investigation of the FCC and
the radio industry, but they were pigeon-holed by a Rules Committee
obedient to the Administration,
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8/4/39
Rumors that the Administration wished to revive the
Pan American short-wave station project were met with the adamant
refusal of the House Naval Affairs Committee to consider further
the gislation feared by the broadcasting industry.
Mr. McNinch' s plans for enlarging the FCC staff came
to naught when the House Appropriations Committee held up the
Commission’ s appropriation until almost the end of the fiscal
year and then recommended an amount approximately equal to the
previous year's expenditures.
Proponents of a modem copyright law are planning to
force action at the next session after public hearings early in
the year.
Last-minute objections of the National Association of
Broadcasters to compromise copyright legislation were blamed for
the postponement. Most parties concerned, including members of
the radio industry, were said to be satisfied with the revised
legislation and willing to see it enacted at this session of
Congress.
The measure will be studied by the Library of Congress,
the Justice Department, and the State Department during the
recess, and reports will be made to the Patents Committees of
both houses when the next session opens.
xxxxxxxxxx
FCC DENIED TELEPHONE FUNDS; WALKER ON CARPET
The House Appropriations Committee for the second time
this session cracked down on the Federal Communications Commission
this week by denying a budgetary request for an additional
1210,000 to broaden the regulation of the telephone industry.
After a severe grilling of Commissioner Paul A. Walker,
who conducted the telephone inquiry, the Committee revealed its
dissatisfaction with the report filed by the FCC, the length of
time consumed by the investigation, and its results.
Nineteen additional attorneys and other employees would
have been employed by the FCC to carry out some of the recommenda.-
tions in the telephone report had the appropriation been carried
in the Third Deficiency Bill as recommended by President Roosevelt
Commissioner Walker, who was the only Commissioner heard
on the estimate, sought to defend the telephone inquiry and stated
that many rate reductions over the country were traceable to the
findings of the FCC.
XXXXXXXXX
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8/4/39
FUNDS FOR RADIO CONFERENCES REFUSED BY HOUSE
The House this week refused to appropriate ^30,000 to
pay the expenses of American delegates to radio conferences in
Santiago, Chile, and Stockholm, Sweden, next year, but it is
probable that it will do so es.rly in the next session.
The State Department asked $16,000 to send ten persons
to the second Inter- American Radio Conference at Santiago and
$14,000 for the expenses of nine persons to the International
Radio Consulting Committee on Radio parley in Stockholm on
June 25, 1940.
Members of the Committee, by their questions, indicated
they are disturbed by the frequency and variety of international
radio conferences.
Chairman Woodrum, of the Deficiency Sub- Coram it tee, com¬
mented on the fact that the same countries participate in all of
the conferences.
"You have six or eight meetings scattered all over the
country", he commented, "and the same countries participate, and
it seems to me you could divide up the subject matter and have the
meeting at one place. "
Harvey B. Otteraian, Chief of the Division of Interna¬
tional Communications, replied that this is not possible.
"They tried to do that at Cairo", he said, "and came to
the conclusion that all of the problems could not be satisfactorily
handled. For example, aeronautical radio is just one field.
There are so many phases entering into these world conferences that
to undertake to pin them down to all details of any one particular
phase or for restricted areas is usually difficult. "
xxxxxxxxx
RADIO SET EXPORTS SET NEW HIGH FOR JUNE
Exports of radio receiving sets components by this
country rose to a new high of $466,591 for the month of June,
Secretary of Commerce Harry L. Hopkins announced this week. This
compares with the May figure of $368,913.
The export of radio receiving set tubes rose from
$237,465 to $277,170 during the same period.
XXXXXXXX
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8/4/39
NAB AND ASCAP FAIL TO COME TO TERMS AT PARLEY
Another long-drawn-out battle of words betvTeen the
National Association of Broadcasters and the American Society of
Authors, Composers and Publishers was foreshadowed this week
after an NAB-ASCAP conference in New York failed to bring about
an accord on the terms broadcasters propose for copyright music.
Neville Miller, President of the NAB and Chairman of
the Copyright Committee, stated after the conference that the
organized broadcasters immediately will begin to develop other
sources of music to free the radio industry of dependence upon
the ASCAP.
The NAB Copyright Committee will meet in New York again
next Wednesday to consider means of setting up the copyright
music source. A similar undertaking was attempted several years
ago and an independent music bureau was set up, but the project
never proved successful and the material later was sold.
As the present ASCAP contracts with radio stations do
not expire until December 31, 1940, no crisis is at hand, and
the broadcasters and copyright owners have a year and a quarter
to shadow box before a new contract is drawn up.
The NAB wants a uniform contract calling for clearance
of the copyri^t fees at the source, with royalties to be paid
only on programs using ASCAP music. Under the present contract
the stations pay 5 percent of net receipts to ASCAP,
Explaining that the broadcasters now pay the Society
about $4,000,000 annually and the figure is rapidly rising, Mr.
Miller told New York newspaper men that the broadcasters had paid
the Society about $20,000,000 for the rigiit to use its music in
the past six years. He added that while the broadcasters expect
to continue to pay substantial sums for the use of music, he bel“'
ieved they could no longer remain so largely dependent upon a
single source.
The main objectives of the broadcasters, he said, are:
To defend themselves against the Society’s requirement
that they pay percentage-wise on all programs regardless of whether
or not they use ASCAP music.
To reduce the Society’s toll of $4,000,000 a year.
To bring about a more equitable distribution of the
charges among the broadcasters themselves.
To foster, encourage and promote the writing of new
music and lyrics by giving opportunities to be heard to new com¬
posers and authors.
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8/4/39
To arm themselves with such supplies of, or access to,
music to enable them to conduct future negotiations with the
Society on tenns of some equality.
XXXXXXXX
FLY CONFIRMED WITHOUT DEBATE BY SENATE
The nomination of James Lawrence Fly as a member of
the Federal Communications Commission was confirmed by the Senate
late Tuesday. His designation as Chairman by President Roosevelt
is expected before he takes office on September 1st.
XXXXXXXX
CARRIER POWER OF G.E. S-W STATIONS DOUBLED
Equipment, which will have the effect of doubling the
carrier power of General Electric’s short-wave stations W2XAD
and W2XAF, Schenectady, as well as result in a more faithful
reproduction of programs, is now in operation, it has been
announced by C. H. Lang, manager of broadcasting.
The increased carrier power effect is brought about by
the use of equipment, known as peak limiting amplifiers, which
allows the two stations to transmit their programs at a higher
power level.
The use of the new line equalizers between the studios
of the stations and the transmitter, which is located at South
Schenectady, will result in the listener receiving programs
superior in quality to those previously received, by extending
the upper limit of the audio range of the program frcm 5,000 to
8,000 cycles. To the listener this will mean that the high pitch¬
ed notes of the human voice and of musical instruments will be
as distinct as those of the lower register, by allowing the
transmission of the overtones of speech and music, giving a more
natural quality to the programs.
XXXXXXXX XX
LOGAN BILL GOES OVER UNTIL NEXT YEAR
Senate Leader Barkley this week said that the Logan Bill
to restrict the administrative freedom of scores of Federal
agencies, recently passed by the Senate, would be shelved for this
session.
Senator Barkley told reporters he had obtained an
agreement with proponents of the measure, including Senator Logan
( D. ) , of Kentucky, its author, to defer further action until next
year.
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0/4/39
The day after the Senate approved the Bill, Senator
Minton, (D. ), of Indiana, filed a motion to reconsider, protest¬
ing that it had gone through by unanimous consent when he was out
of the chamber.
The Senate agreed unanimously to his motion, thus auto¬
matically blocking House consideration and causing the bill to
go over to next session.
Under the bill, regulations and court appeals from
bureaus such as the Federal Communications Commission, Interstate
Commerce Commission, Federal Trade Commission, Wage and Hour
Administration, National Labor Board and others would be standard¬
ized.
xxxxxxxx
BAIRD DEMONSTRATES TELEVISION IN COLOR
The first demonstration ever to be given of television
in natural colors was held in the experimental laboratories of
the Baird Television Corporation at Sydenham, England, before an
invited audience of the da.ily and technical press, according to
I. C. Javal, Commercial Director of the company in New York.
The cable stated that a color photograph of King G-eorge
was received on a large screen in full aolor and perfect defini¬
tion. Press comments following the demonstration were enthusiast!
The London Times said: '•King George^s photograph televised in
natural colors by cathode tube for the first time putting the
Baird system in the forefront of world television." The Morning
Telegraph commented: '‘Greatest progress since pictures have been
transmitted through the ether. "
John L. Baird has been conducting experiments in natural
colors for the past year. Some months ago he predicted that this
next step in television would be available to the public sooner
than at first anticipated.
XXXXXXXXX
RADIO CALLED "ENEMY OF CORRECT SPEECH"
New South Wales school inspectors blame the influence
of radio serials for the deliberate dropping of "h' s" and "g*s"
by many school-children.
"An insidious enemy of correct speech", the inspectors
say, "is the alleged Australian speech of some of the radio serial
It is not uncommon to hear children in the playground purposely
dropping the aspirates and carefully avoiding the final ’g‘ in
such words as 'coming* and 'going'. The effect of this potential
educational agency - wireless - is directly responsible for more
bad speech than even the pictures. " Wide reading is advocated as
a corrective.
XXXXXXXXX
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8/4/39
FLY AND McNINCH CONFER WITH ROOSEVELT
James L. Fly and Frank R. McNinch conferred with
President Roosevelt at the White House Thursday after Federal
Communications Commission matters shortly after Mr. Fly had
been confirmed as a member of the FCC by the Senate.
While the details of the parley were not divulged, it
is expected tha.t Mr. Fly will attempt to put over the "house
cleaning" that Mr. McNinch failed to accomplish.
Mr. McNinch told newspapermen upon leaving the confej>-
ence that the FCC chain-monopoly report will not be completed for
six months.
xxxxxxxx
ELLIOTT ROOSEVELT'S RADIO TALKS HIT IN HOUSE
The radio commentaries of Elliott Roosevelt, son of
the President, were denounced on the House floor this week by
Representative Shafer (R. ), of Michigan, before inserting in
the appendix of the Record an editorial from the Detroit Free
Press.
"Were it not for the prestige of his father, few people
would be aware of the existence of Elliott Roosevelt, and his
radio mouthings would attract no more attention than a ham sand¬
wich at a family picnic", he said.
"But because his father is President of the United
States, son Elliott has suddenly discovered his place in the sun
and has blossomed out as No. 2 critic of the Seventy-sixth
Congress. His blatherings, which ordinarily would be consigned
to the wastebaskets of most radio stations, are broadcast over a
self-controlled network of the Southwest, and New Deal press
agents, whose salaries are paid by the taxpayers of the United
States, are now making his broadcasts big news.
"Son Elliott’s recent tirade, in which he declared
Congress may have 'outlived its usefulness', definitely marked
him a New Deal propagandist of the first order. The Detroit
Free P re s s , in an editorial headed 'Question of Usefulness',
expresses the reaction of many to son Elliott's sad attempt to
criticize the Seventy-sixth Congress. "
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8/4/39
SENATOR JOHNSON DEFENDS PROPOSED LIQDOR BAN
A spirited defense of his bill to prohibit radio adver¬
tising of liquor was made on the Senate floor this week by Senator
JoJinson (D. ), of Colorado. While admitting that the legislation
could not be passed at this session, Senator Johnson said he
wanted to answer statements that the bill was sponsored by
Senator Johnson (D.), of Colorado. While admitting that the
legislation could not be passed at this session, Senator Johnson
said he wanted to answer statements that the bill was sponsored
by fanatics.
The Colorado Senator said the purpose of the measure
is to protect the American home against the intrusion of liquor
salesmen. He cited the intimacy of the ra.dio, the fact that
children listen to programs, and the public investment in radio
sets.
He quoted statements from retiring Chairman Frank R.
McNinch, who, he said, ”is certainly not a professional reformer",
Herbert Hoover, W. S. Alexander, Administrator of the Federal
Alcohol Administration and others.
The NAB has placed liquor advertising on the list of
outlawed radio trade practices under its code.
"The radio renders a private service and it renders a
public service", he said. "The private service is rendered to
its commercial customers, for which it is paid; the public ser¬
vice is rendered to the listening public, for which it is not
paid. The radio is a public utility and, while ad.vertising is
incidental and necessary under our system to its operation, the
real purpose for which the ra.dio has been licensed by the Congress
is service to the public and not service to the advertisers.
Broadcasting stations are not given the privilege of a monopol¬
ized opportunity to occupy certain wave lengths by the Congress
for the private benefit of radio advertisers. Even though the
advertisers support the radio, the public interest which mani¬
festly is not in advertising remains paramount .
"Congress in its wisdom has delega.ted broad powers to
the Communications Commission, but Congress has relinquished
none of its prerogatives over policies of radio uttera,nces. It
has already prohibited by law the utterance of any obscene, indec¬
ent, or profane language by means of radio conununication, and it
should obviously add liquor advertising to this very short list
of banned subjects.
"Congress must recognize that liberty of expression is
one of man’s most precious heritages, but Congress must also rem¬
ember that the exercise of free speech has never meant and never
can mean ’the unrestricted ri^t to say what one pleases at all
times and under all circumstances.' There must be moderation
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and common sense In the exercise of free speech, otherwise a
great human blessing eventually deteriorates into a positive
oppression, Unv:holesoriie advertising poured out fix)m radio sta¬
tions to be received in the privacy of the various homes of this
land becomes the instrument of injury to unprotected children
if care is not manifested. When the spoken word does that it
destroys by its very nature the social principles involved in the
guarantee of free speech. There is a freedom of listening which
is just as important as the freedom of speaking, for the listener
to such a public utility, as the radio has just as much right to
the consideration of Congress as has the speaker.
”3. 517 is not in any sense fanatical legislation. It
has nothing whatever to do with the eighteenth amendment or with
a return to prohibition. Its only purpose is to protect the
American home against offensive and unwholesome liquor advertis¬
ing. That home has petitioned Congress to bar the invisible
but attractive vocal liquor salesman from entr;>’’ into its sacred
inner chamber. I am standing on this floor advocating the adop¬
tion of S. 517 because 379,000 parents living in every State in
the Union have beeii so outraged that they have asked Congress to
protect them and to guard them against the violation of their
firesides by the unscrupulous voice of this unwelcome invader.
The Constitution has as much to say about the sanctity of the home
as it does about freedom of speech. It does not permit a police
officer, for instance, to enter that privileged sanctum without
a wamrant, yet the impudent liquor salesman demands constitutional
rights which have never existed to enter that home, violate its
sanctity, and make repulsive sales talks to persons who do not
want to listen. "
X X X X X X X X X X
THREE I^IETWORKS REPORT GABJS FOR JULY
The three major broadcasting networks had substantia.l
increases over 1938 in billings in July, it was disclosed this
we ek.
The Colombia Broadcasting System was ahead by 69.1 per¬
cent, the Nationa.l Broadcasting Compajiy by 11.0 percent, and the
Mutual Broadcasting System by 29.6 percent. Columbia billings
were $2,311,953, compared with $1,367,357 a year before. Total
for seven months was $19,264,926, compared with $16,949,912 in
1938, a ga.in of 13.7 percent. The number of stations on August 1
was 116, unchanged from 1938.
NBC billings in July were $3,283,555, compared wdth
$2,958,710 a year before. For seven months the total was
$25,882,492, compared with $23,982,384 in 1938, a gain of 7.9
percent. The chain had 171 stations on August 1 against 155 a
year before.
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8/4/39
Mutual billings in July were $216,583, compared with
$167,108 in July, 1938. This was the fifteenth consecutive
month in which Mutual billings gained over the year before. For
seven months billings were $1,840,819, compared with $1,509,287
for the corresponding 1938 period, an increase of 21. 9 percent.
XXXXXXXX
TRADE NOTES
Arthur Radkey, of the WLW Educational Department, was
this week appointed Instructor in Ra.dlo Continuity Writing at
the Evening College of the University of Cincinnati. The course
will be new to the University curriculum.
Eddie Cantor wa.s named defendant this week in Hollyxiood
in a $751,000 personal injury suit filed by a couple who alleged
they were called Nazis and beaten up after a radio broadcast.
Charles G-ollob and his wife, Elsie, filed the action against Cantor,
Bert Gordon, also known as the "Mad Russian", the Reynolds Tobacco
Co. , and the Columbia Broadcasting Co. The Gollobs alleged that
when they left the Hollywood broa.dca.sting theater of the radio
chain, March 27, they were called Nazis, that a man, alleged to be
Gordon, struck Gollob with a blackjack, and that Mrs, Gollob was
struck in the face and knocked down.
Keeping pace with world affairs and responding to
preferences evinced by listeners, the Columbia Broadcasting System
considerably expanded its programs on international and foreign
affairs and education in the first six months of 1939, as com¬
pared with the same period in 1938. A survey of network programs
reveals increases in the time devoted to adult education, reli¬
gion, international and foreign affairs, agriculture, news and
drama.
Harry W. Conn, formerly a gag- writer for Jack Benny,
filed suit for $65,500 against the comedian in Los Angeles this
week charging breach of contract. Conn declared he entered an
agreement with Benny to write gags for thirty-nine weeks in
exchange for 5 percent of the comedian* s earnings during the time
he used them. But whereas Benny has made $1,170,000 from radio
programs and $140,000 from film work, using the Conn japeries
the while, the writer asserted, he has received nothing.
XXXXXXXX
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8/4/39
MacLAREN, NEW ZENITH PRODUCTION MANAGER
George I. MacLaren has been appointed Production
Manager of Manufacturing Operations of the Zenith Radio Corp.,
Chicago, according to Commander E. F. McDonald, Jr., President.
’’This importont addition to our staff, one of a number
announced during the present year, is made necessary by our con¬
tinuous increase in sales and the consequent need for expanded
manufacturing operations”, Commander McDonald said.
”Mr. MacLaren has had 14 years of Intensive experience
as Production Manager in full charge of manufacturing operations
of the Atwater Kent Manufacturing Company of Philadelphia, fol¬
lowed by a term as Factory Manager in charge of production
activities with the RCA Manufacturing Company, Camden, N. J.
’’Well and favorably known in the radio industry, Mr.
MacLaren brings to his new responsibility an unusually well-
rounded experience in the manufacture of ail types of radio
apparatus, including tube and microphone manufacture as well as
that of receivers and transmitters. ”
XXXXXXXXXX
CONTRACT LET FOR WJSV 50 KW TRANSMITTER
Contracts for construction of a new transmitter in
Wheaton, Md. , for Station WJSV, Washington outlet, of the
Columbia Broadcasting System, have been awarded, and construc¬
tion has begun, according to A, D. 7/illard, General Manager of
the station.
The George Martin Construction Company of Washington
will build the transmitter building, of modern functional design,
at a cost of |53,600, Three guyed towers, each 340 feet high,
will be erected for $33,657 by the Blaw-Knox Company of Pitts¬
burgh. It is expected construction will be completed in approxi¬
mately 90 days.
The power of WJSV is to be stepped up from 10,000 to
50,000 watts when it abandons its present transmitter on the
Mount Vernon Boulevard near Alexandria, Virginia.
XXXXXXXXXX
12 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Firewords Mark FCC Hearing Great Lakes Scrap . 2
N. Y. Department Stores Ask Television Peniiit . 3
NAB And ASCAP Waging Battle Of Statements . 4
Senator Bridges Urges Wompn For FCC . 6
CBS Semi-Annual Profit Above 1936. ... ... . . 6
Wide Use of Frequency Modulation Forecast . 7
Senator Eloquent In Praise of ”Claatterbox" . 8
Trade Notes . . . . . 9
WOR Asks FCC Permit For Television Station . 10
RCA’ s Operating Expenses Rise Sharply . 10
Payne Praised In Catholic Magazine Interview . 11
No. 1147
August 8, 1939.
FIREWORKS MARK FCC HEARING GREAT IJ^KES SCRAP
Charges and counter charges of attempts to obtain a
monopoly of the i-adiotelephone business on the Grea.t Lakes are
being studied by an Examiner of the Federal Communications Com¬
mission pending the resumption of a hearing on August 16.
Lav.yers in the case, centering about the rates of the
Lorain County Telephone Company and the Lorain County Ra.dio Corpora¬
tion, almost came to blows before the hearing recessed because of
a statement by a Lorain official that the Radiomarine Corn^oration
of America tried to buy out the Lorain properties.
The Lorain companies, which are owned and operated by
the same persons, now have a lion's share of radiotelephone busi¬
ness on the Great Lakes, partly because of their ability to furnish
both equipment and service to ship owners. The Radiomarine Corpora¬
tion has joined with the Donnelley Radio Telephone Company, which
has a station at Lake Bluff, Ill., in asking that the Lorain outfit
be denied the right to tie up a service charge with radiotelephone
rates.
Thome Donnelley, President of the Illinois Company, told
Examiner Robert L. Irwin that his concern is unable to compete suc¬
cessfully with the Lorain corporation because of the $25-a-month
service charge. Mr. Donnelley said he is willing to djrop the
service charge and thinks Lorain should be compelled to do so.
If Lorain is permitted to continue to service charge, he
testified, it will constitute an "economic boycott" of the
Donnelley station.
Frank W. Wozencraft, counsel for RCA, had several v erbal
clashes with attorneys for Lorain over a statement made by Herman
E. Hageman, President and General ^anager of the Lorain companies.
Mr. Hageman said that Alfred James Wills, former commercial repre¬
sentative of the Radiomarine Corporation in Cleveland, had approach¬
ed him with an offer to buy the Lorain properties upon behalf of
RCA for ^56,000 in 1937. He said that Mr. Wills had advised him to
accept the offer because RCA is "Very powerful" and "influential
with the Federal Communications Commission",
Mr. Wozencraft hotly denied the story and later produced
Mr. Wills to make the denial personally. The RCA attorney pointed
out that Charles J. Pannill, President of the Radiomarine, had
denied the story shortly after it was alleged to have occurred.
He accused Mr. Hageman of repeating it merely because he was angry
with RCA for entering the case.
2
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Mr. Wills did admit, however, that he had suggested,
entirely on his own initiative, that Loi'ain and RCA might "unite
their forces in a good will effort to serve the ship owners."
He left the services of Radioraarine as of July 31, he said,
entirely of his own free will although Lorain attorneys inferred
by cross-examination that he had been dismissed because of this
"offer".
Lewis P. G-ilmer, Vice President and General Manager of
the Donnelley corporation, subsequently testified that Mr. Hage-
man had offered to take over the operation of the Lake Bluff sta¬
tion and to split the profits with the Donnelley company after he
had learned that the latter was going to participate in the
Lorain rate case before the FCC.
Earlier in the hearing, Mr. Hageraan testified that Lorain
had equipped 82 ships in the Great Lakes with its radio tele¬
phones and had handled 18,699 calls in 1938.
Ship owners contributed $100,000 to the capital fund
of the companies at the beginning, he admitted, and were reimburs¬
ed by the placement of radio equipment aboard their ships.
The name of Commander Eugene E. McDonald, Jr. , President
of Zenith Radio Corporation, Chicago, was brought into the hea2>-
ing several times by Mr. Gilmer. The witness first called atten¬
tion to his ownervship of the yacht "Mizpah" and his use of radio¬
telephone services and spoke of his courage in running the craft
in the Great Lakes even when the ice of winter endangered travel.
A telegram from Commander McDonald stating thpt he pre¬
ferred to pay for radiotelephone messages on a straight basis
without service charges as "is the practice along the Atlantic
coast was read into the record by the attorney for Donnelley.
XXXXXXXXXX
N. Y. DEPARTMENT STORES ASK FOR TELEVISION PERI^ITS
The first attempt to utilize television for practical
merchandising will be made by two New York department stores,
Abraham & Straus, Inc. , and Bloomingdale Bros. , Inc. , if the
Federal Communications Commission grants an applicant ion they
filed in Washington la.st week.
The application for thelicense was filed by Metropoli¬
tan Television, Inc. , a. subsidiary of the two stores, especially
organized for the transmission of television programs.
Ira A. Kirschmann, Vice President of Bloomingdale ’ s,
said pla.ns now are under wa.y to establish the tra.nsmitting facili¬
ties of the new television compavny at one of the la.rge hotels in
the up- town Manhattan area, "near our store". He sa.id he will go
to England to study the television method^s of the British Broa.d-
casting Corp. while this is being done.
3
1
8/8/39
While in London, he will spend some time with Gordon
Selfridge, Jr., of Selfridge’s Department Store, which is the
first European store to conduct successful television experiments.
With their newly created subsidiary. Metropolitan Tele¬
vision, Inc., Abraham & Straus and Bloomingdale ‘ s plan to carry on
a comprehensive program in television experiments, Mr. Hirsbhmann
stated. He said the stores now are working on another plan with
which "we hope to promote the sale of television sets at lower
prices than today." However, he declined to develop this theme.
Commenting on television’s rale in merchandising, the
department store executive described it as "a dramatic new supple¬
ment to our present media of advertising and publicity." He con¬
tinued:
"Television will never replace advertising, but will go
hand in hand with newspaper and radio merchandise advertising.
Rather than acting as a threat to national and retail media it
offers a fresh new field for the sale of goods and ideas. Mer¬
chandise, in short, becomes visual as well as vocal."
Mr. Hirschmann said "a modern and well equipped tele¬
vision broadcasting station costs anywhere from $100,000 up,"
although he declined to be quoted on what the newly formed tele¬
vision corporation would expend in this direction. "If our
license is granted," he added, "we plan to introduce the most
modern equipment available."
It is the company* s intention to study and formulate
techniques for the sale of goods, particularly stores, Mr.
Hirschmann said. "We are experimenting at present with ’movie*
shorts which will be the phonograph records of television for
repetitive use and economical programming. Motion picture companies
and newspapers will welcome television rather than oppose it, for
here is a major field for exploitation in their resoective fields. "
XXXXXXXXXXX
NAB AND ASCAP WAGING BATTLE OF STATEMENTS
With copyright negotiations again broken off, the Natio¬
nal Association of Broadcasters and the American Society of Authors^
Composers, and Publishers this week were waging a battle of words
with formal statements fulfilling the role of weapons.'
Neville Miller, President of NAB and Chairman of the
Special Copyright Committee, struck the first blow immediately
following a conference with ASCAP officials in New York last week.
(See previous letter).
Gene Buck, President of ASCAP, replied quickly that the
copyright owners "welcome the fight" with the organized broad¬
casters. " And then Mr. Milled’ let loose another blast at ASCAP.'
4
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8/8/39
"The NAB signed an agreement with the American Society
for a period of five years, but the ink was no more than dry on
the agreement three and a haof years ago than they started a cam¬
paign to control or to break up ASCAP, " said Mr. Buck.
"Failing to change the Copyright Act and after their
failure in using the courts, they then introduced a new technique
throughout the Nation in the States to gain their selfish interests.
"This having failed, with the possible exception of the
States of Washington, Montana and Florida, they now announce that
they are going to start sme thing to deprive the authors and com¬
posers of the Nation of some compensation for the use of the
creations of their brains. * * *
"Since broadcasting was invented the broadcasters have
indulged in the fantastic idea that the men and women who create
the music of the Nation and the world should furnish the products
of their brains to this vast and powerful industry gratis, * * *
It is a sad state of affairs when these gentlemen , who sell
commercial time to the amount of $118,000,000 annually and will
pay artists and performers and interpreters of music as much as
§15,000 for a single performance, cry and whimper because they have
to pay the composers and authors of the Nation about $3,500,000 a
year, which makes their entire operation possible,”
In answer to this statement Mr. Miller replied:
"Let*s stick to the fa.cts.
"Broadcasters are ready and willing to pay a fair and
reasonable price for the use of ASCAP music. At present, ASCAP ' s
total annual revenue amounts to approximately $6,000,000, of
which $4,000,000 — or two-thirds — is derived from radio stations.
In the past six years alone, the broadcasters have oaid ASCAP over
$20,000,000.
"With few exceptions, radio stations pay ASCAP five per
cent on their total gross receipts, paying on revenues derived from
the sponsorship of dramatic shows, news broadcasts, sports broad¬
casts and many other broadcasts where not one note of ASCAP music
is played; and also on programs which contain music but which is
not ASCAP music. The present contracts expire December 31, 1940.
"We have informed ASCAP that we are willing to pay when
we use ASCAP music but that we are not willing to continue to pay
on programs which do not use ASCAP music. As their largest customer,
we have asked them to set the price, and ASCAP has refused to do so.
This is the heart of the present problem.
"Since last March, we have tried unsuccessfully to secure
from the Society some expression as to the terms upon which it would
be willing to renew the contracts. We do not propose to let matters
drift on until December 31, 1940 and then, at the eleventh hour,!®
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8/8/39
forced Into e,n unfair and inequitable contract, compelled to meet
any terms which ASGAP ' s present monopolistic control may dictate.
The radio industry can no longer have its economic stability
threatened by dependence upon one source of music, especially
when that source is a copyright pool and monopoly. We propose to
develop other sources of music, to encourage new composers and
authors who find their creative genius stifled by the ASCAP nonop-
oly; who are now unable to have their music published profitably
and who find it practically impossible to have it performed.
"Through these means, we hope to build up an impressive
reservoir of fresh new music, to make fair and equitable contracts
with authors, composers and publishers which will enable us to
carry on in event we are unable to meet the unknown demands ASCAP
may make.
"We believe this development will uncover a wealth of
new talent in the United States, and will bring to the American
public an abundance of enjoyable new music. "
XXXXXXXXXX
SENATOR BRIDGES URGES WOMAN FOR FCC
Senator H. Styles Bridges (R. ), of New Hampshire, has
proposed to President Roosevelt that a woman be appointed to
membership on the Federal Communications Commission and has includ-»
ed among several nominees. Publisher Eleanor M. Patterson, of the
Washington Time s^Herald. Columnist Dorothy Thompson, New York
Herald Tribune; and Mrs. Eleanor Roosevelt, wife of the President
and author of a newspaper column, "My Day".
XXXXXXXXXX
CBS SEMI-ANNUAL PROFIT ABOVE 1938
Columbia Broadcasting System, Inc., and Subsidiaries,
report for the twenty-six weeks to July 2: Net profit of
$8,771,892, equal to $1.62 each on the 1,708,723 shares of $2.50
par value stock either outstanding on July 1, this year, or to be
outstanding upon completion of the exchange of the old $5 par
value stock, compared with a net profit of $2,578,192, or $1.51
a share in the corresponding twenty-six weeks last year.
XXXXXXXXXX
6
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8/8/39
WIDE USE OF FREQUENCY MODULATION FORECAST
A new type "frequency modulated" radio broadcasts will
be filling the air in the major markets in this country within the
next year, Dr. W. R. G-. Baker, head of General Electric's radio
and television division, predicted in speaking recently before a
delegation of college and university professors.
Dr. Baker explained tha.t frequency modulation is one of
the latest and most promising developments in the field of radio,
and makes possible for the first time practically static- free
reception with a high fidelity that has hitherto been unattainable
with the presently used "amplitude modulated" radio system.
"Two frequency modulated transmitters are already oper¬
ating, " Baker said. "One is in Boston and another is in New
York city, A third will be placed in operation here in Schenec¬
tady by early fall."
Present receivers will not be able to pick up frequency
modulated broadcasts, and it will not be possible to change them
so they can," he said. "The public need not fear that present
day radios will be obsoleted immediately, however," he continued.
"Amplitude modulated programs ^111 continue to be broadcast for
some time to come. Frequency modulation will be sold to the
public at the outset as another band on a new receiver which will
pick up both type broadcasts."
The frequency modulated system employs the use of ultra
short radio waves, and the signals broadcast travel only slightly
beyond the distance of the horizon, according to Dr. Baker' s
explanation. This characteristic is SFid to be the open sesame
for an almost unlimited number of broadcasting channels with
plenty of room for nationwide chains and local stations galore.
Dr, Baker stated that frequency modulated transmitters
could be built for approximately one fourth the cost of the usual
station, and that v-,dth the possibility of - overcrowding the airwaves
removed, many new broadcasters should crop up.
In describing the difference between the regular, or the
amplitude system, and the new frequency modulated system. Dr. Baker
explained that in the newer method the characteristics of the broad¬
cast waves differ from the static, and as a result the frequency
moculated receiver picks up the broadcast almost completely stripped
of static.
In tests conducted earlier this year for a group of
experts including four from the Federal Communications Commission
and three from the Interdepartmental Ra.dio Advisory Committee,
General Electric radio officials showed that 96 percent of existing
static, both atmospheric and man-made is eliminated from programs
broadcast under the frequency modulated system.
XXXXXXXX
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8/8/39
SENATOR ELOQUENT IN PRAISE OF “CHATTERBOX"
Senator Johnson ( D. ) , of Colorado, v^axed eloquent in a
dissertation on radio in the Senate last week.
“The most intimate and important inanimate object in
our home is a little piece of more or less unornaraental furniture
which we affectionately call the chatterbox, for it brings to us
the chatter of the entire world", he said. "The first member to
arise in the morning turns it on and the last to retire turns it
off. It entertains with a program varied from the sublime to the
ridiculous; it caters from early to late to the spiritual, the
esthetic, and the fleeting fancies and moods of each member of the
family. It so handles current news that we need only listen to
the highlights to have constantly before us a picture of what is
transpiring in the world. Sporting events and important ceremonies
in far-away places are presented blow by blow so realistically and
in such masterful manner that we prefer to stay at home rather
than undergo the inconvenience and discomfort incidental to being
actual eye witnesses. Over this unique contrivance the statesmen
of the world gather with us around our fireside and discuss the
issues which rock the universe.
"How fascinating to heer in our humble living room the
natural voices of our beloved President, Mr. Roosevelt; the
Premier who ina.de the bad bargain at Munich, Mr. Chamberlain; the
vociferous II Duce, Benito Mussolini; and the great ‘I am' Der
Feuhrer Hitler, each in character depicting his part in the tragic
drama of current history. Truly, the radio has added much to our
home. Delightfully entertaining and pleasantly instructing, the
radio has become a most essential part of our family life; and we
would rather go without necessities than part with its magic."
He was speaking in support of his bill to bar liquor adv¬
ertising from the air.
xxxxxxxxx
Next week Editor & Publisher will present the first of
two articles analyzing the possible effect of television upon news¬
paper advertising; the present status of television as regards pos¬
sible number of stations, licenses issued or applied for; recep¬
tion area; future cost of receiving sets, etc. In addition, the
articles will tell the probable cost of equipping a 1 KW television
station, yearly cost of operation, and probable sale price per
hour of television time.
XXXXX XXXX
- 8 -
8/8/39
: TRADE NOTES ;
"Principles and Practices of Network Broadcasting," con^
sisting of the testimony of Djavid Samoff, President of RCA, at
the opening of the FCC chain-monopoly inquiry last fall has been
published in pamphlet form and is being disti'ibuted by the pub¬
licity division of RCA.
Spark s-Withington Company and its Subsidiary report for
the year to June 30 — a net loss of $238,547, compared with a net
loss of $60,581 in the yeer to June 30, 1958.
The use of U. S. forest service two-way radiophone for
the first time in western mewspaper history brought a scoop to
the Ogden (Utah) Standard ExaJnlner and a feather in the crp of
Louis A. Skaggs, ingenious staff reporter, who scored a page one
hit with a national convention coverage one day ahead of the other
papers. Skaggs, 45 miles away from the city atop Monte Cristo,
high in the Wasatch range of the Rockies, read his story by radio¬
phone to a rewrite man, who rushed the copy to the editorial
office and composing rooms to make the early editions of the paper.
Fred Adelmann, also known as Frank Adelmann, trading a a
Vit-O-Net Company, Vit-O-Net Corporation and Electric Blanket
Company, 1716 Soiith Michigan Avp , Chicago, has been ordered by
the Federal Trade Commission to discontinue misleading representa¬
tions in the sale and distribution of "Vit-O-Net", described as an
electrical blanket device for treating diseases. Under the order,
the respondent is to cease representing that "Vit-O-Net", or any
similar device, sets up a radio-magnetic energy which is trans¬
mitted to the patient thus causing an increased activity and
retitalizing of the organs and cells of the body and a charging
of the blood strea.m with electromagnetic energy with beneficial
results.
Rules and regulations covering radio aviation service
have been amended as of August 1, by the Federal Communications
Commission. The amended rules, among other things, remove the
"day only" restriction appl^ring to 6210 kilocycles. I'There this
frequency has been authorized it may now be used in accordance
with the ajnended rules, without regard to the restriction concern¬
ing it which a.ppears on outstanding licenses. The "day only"
restriction will be removed from such licenses at the time of the
renewal, or issuance of other instruments of authorization.
9
8/8/39
WOR ASKS FCC PERMIT FOR TELEVISION STATION
In the interests of an extensive program of research and
experimentation, Station WOR, Newark, announced this week that it
has applied for permission to construct a television station in the
heart of New York City. The project, according to Alfred J.
McCosker, President of WOR, will be closely linked with a campaign
of experimentation in new television program technique and engineer¬
ing advancement.
The application, filed with the Federal Communications
Commission at Washington, calls for a 1000-watt transmitter
operating in the 84 to 90 megacycle band and located atop a sky¬
scraper in midtown New York. It will service the entire Metropoli¬
tan area.
The proposed policies of the new station will emphasize
educational telecasts and special features covering spot news,
political and sporting events with the same timeliness as WOR has
displayed in its sound broadcasts.
Both live programs and motion pictures will be aired
from the new television installation. A study of Improved studio
methods is already under way. The new sta.tion, although it will
be licensed on an experimental basis for unlimited time, expects
to offer visual programs daily, the number of hours being depend¬
ent on the increase within Its service area of installed receivers
Cooperation in the educational aspects of the venture
has been assured by a number of important educational institutions
in New York State and New Jersey.
xxxxxxxx
RCA‘S CPERATINO EXPENSES RISE SHARPLY
David Sarnoff, President of the Ra.dio Corporation of
America, announced this week that the corporation had a net income
of $724,091 in the second quarter of this year, after all expenses
and charges. This result fell short by $81,197 in covering pre¬
ferred dividend requirements for the quarter, and compared with a
net income of $1,086,955, equivalent to 2 cents a share on the
common stock, after full preferred dividend charges, in the June
quarter of 1938.
For the first six months of this year Radio's net income
amounted to $2,172,201, equivalent to 4 cents each on the common
shares, after preferred dividend requirements, compared with
$2,524,756, or 6 cents a share on the common stock, in the first
half of last year. G-ross income for the six months amounted to
$48,290,112, against $45,254,304 in the corresponding period a
year ago.
xxxxxxxxx
- 10 -
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PAYNE PRAISED IN CATHOLIC MGAZINE INTERVIEW
Commissioner George Heniy Payne, who has been strangely
out of the news of recent months, is the subject of an interview
in The Sipji» a Catholic magazine, June issue, by Kathleen C,
Bennett. After a preliminary summary of the events leading up to
the introduction in Congress of the Wheeler-McNinch three-man-
Commission bill, Miss Bennett relates an Interview with Commissioner
Payne.
"In spite of reassurances, I was prepared, from what I
had read, to meet a bristling reformer who would our out a flood
of denunciation", she said, "not only of radio but ot the entire
cosmos - and who irould probably (after the unplea.sant manner of
reformers generally) end by trying to reform me.
"But it was no bristling reformer who ceme forward
courteously to greet me. It was a gentleman yrho possessed more
of that generally abused word ’charm’, than anyone encountered in
years. Two main characteristics were soon evident; abundant energy,
and far more than an average zest for life.
"Suave and tactful in manner, when a principle is at
stake, he can be a tornado of scathing satire. Not all of those
who have come to know him as the FCC’ s Progressive Reformer know
him also as the author of a scholarly book on children, ' The Child
in Human Progress*. Nor as the author of the most important history
of Journalism of our time.
"Not a Catholic, it has frequently been said that he
expresses the Catholic philosophy in spiritual matters as they
affect radio. With Skipper McNinch he has certainly not seen eye
to eye; but he and Commissioner T. A. M. Craven have battled side
by side for constructive reforms; and Commissioner Norman Case,
from Rhode Island, has not infrequently voted with them.
"There is no doubt that reform- resisting elements have
not ceased to pull political wires; that the troubles between the
FCC and the radio industry have long bothered the President. But
the heart of the mystery of the scuttling of the FCC would seem
to be Skipper McNinch* s antipathy to the aggressive and progress¬
ive reformer from New York.
"With Hugh Johnson, thoughtful elements see danger in the
brig which Senator Wheeler has offered as substitute, with its
crew of three to replace that of seven. They believe that there
is less threat of centralization in the larger crew; that it is
more democratic; that a variety of opinion is healthier, more
representative; and that discussion, argument and even dissension
are not unwholesome things in this important regulatory body.
"One thing is certain; as long as Commissioner Payne
remains a member of the FCC*s crew, there will not only be color
but courage in dealing with communications. "
xxxxxxxxxx
- 11 -
*0^
i ■
4-
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUt OF AUGUST 11,
1939
Standards Bureau Offers Monthly Radio Forecasts . 2
Call Letters Of International Stations Changed .
Nori/Tay Adopts Lav/ Re Aerials .
FCC Holds Recess Meeting ; Commissioners Depart .
Frequency-Modulation High-Fidelity Receivers On Market .
Swiss Negotiating For League^ s Station . . .
British Consider $5 Fee For Television Sets .
Two Station Revocation Hearings Scheduled .
NBC Apologizes For W?A Charge Against Tydings .
Canada Explains New Rule On Sponsored Programis .
Trade Notes . 9
A. T. & T. Changes To Save Users $1,060,000 . 11
NBC Television Signals Reach Cape Cod . 11
No. 1148
uo £> £> CO CO 00
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STMDARD3 BUrSAU OFFEPS MONTHLY Po^DIO FOPE CASTS
Disclosure that the U. S. Buieau of Standa.rds is offers
Ing a service of monthly predictions of ionosphere and radio
conditions was made in the annual report of the Ra.dio Section
released this week.
"Sufficient experience had acc’jimulated so that this
year a service of ionosphere predictions was begun", Dr. J. H.
Dellinger, Chief of the Radio Section, stated.
Predictions three months in advance, he expla.ined,
are made on the basis of current observations of the changes from
month to month, together with knowledge from pa.st years of season¬
al changes.
The introduction of the term "radio sonde" was another
innovation of the year, the report revea.led. This name is now
applied to the device fo rmerly known by several najnes, including
"radio meteorigraph" .
"A radio sonde is an assemblage of meteorological and
radio apparatus carried aloft on a small balloon for the purpose
of obtaining infonnation regarding atmospheric conditions", the
report expla.ined. "In the form developed by the Bureau for the
Navy Department, it trcansraits to the ground indications of
temperature, pressure, and humidity, by means of a varying modu¬
lation frequency in an ultra high carrier frequency. At the
receiving station on the ground an automatic recorder continuously
draws a graph showing the three elements as the radio sonde ascends
and descends.
"During this year it was- put into extensive use by the
aerological services of the Navy Depa.rtment, Weather Bureau, and
Coast Guard. Thus, the Weather Bureau made dadly routine use of
the system at six stations throughout the country’’, to replace
the daily soundings hitherto made by airplane flights. The Navy
Department used it at one ground station and two shipboard sta¬
tions, and the Coast Guard used it on two ships of the Interna¬
tional Ice Patrol. Some 3000 radio soundings were made during
the year in the regular course of collecting upper-air wea.ther
data. The great improvement in the regularity and range of the
upper-air observations obtained from supplanting the airplane
method of sounding led to plans for increased use of the radio
sonde system; the Weather Bureau and the Navy planned to use it
at many more stations than they ever used airplane observa.tions.
2
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"The Bureau cooperated with each of the agencies which
started to use radio sondes, and with the manufacturer supplying
them. In supervising the initial procesoes of producing and us¬
ing the device, the Bureau developed a number of detailed
improvements indicated to be required by service experience.
Thus, a new seal for the capillary electrolytic themometer
was developed which eliminated difficulties encountered in early
service use from polarization, change in electrical character¬
istics, and breakage. The relation of the electrical resistance
of the capillary thermometer to the controlling resistors in
the radio-sonde transmitter was altered to provide for increased
accuracy of temperatui’e indication, particularly at stratos-
sphere temperatures. The accuracy of the frequency indicating
and recording system was improved by adoption of a standardized
method of calibration; a feature of this method is the flexibil¬
ity provided for interchange of componeni, units.
"The regularity of operation was found to be materially
better than Yvhen using aiiplanes, since practically no interrup¬
tion to service was experienced during adverse weather conditions
which would preclude the possibility of aJ.rplane soundings. The
average limit of height of soundings was about 11 miles instead
of the 3 miles obtained in airplane soundings.
"The accuracy of the observations obtained was dete3>-
mined by extensive testing in cooperation with the Navy Depart¬
ment and the Weather Bureau, a.nd wa.s found to be of the same
order as in airplane soundings. The accuracy of pressure observa
tion is within 15 millibars. The accuracy of temperature is
within one-half degree Centigrade. The estimated accuracy of
the humidity observations (wdth the ha.ir-t^'^pe hygrometer a.t
temperatures above 0‘^G) is v/ithin 10 percent relative humidity.
Outlining other activities of the Radio Section, Dr.
Dellinger said;
"The processes of radio wave transmission were investi¬
gated, principa.lly by continuous recording of radio wave inten¬
sities from distant ra.dio stations and by observations on radio
echoes from the ionosphere. This work supplied useful inforaia-
tion on a number of practical problems such as: selection of
radio frequencies for transmission over specified distances at
various times of day and yea,r; determination of received inten¬
sities and limit of usable frequencies for various distances,
times, and locations of transmission path; means of carrying on
radio communication at times when radio conditions a.re irregular
because of disturbances radiated from the sun or other causes.
The results of the Bureau* s radio wave research were
extensively utilized by others, e.g. , by the Interdepartment
Radio Advisory Committee in its work of assigning frequencies
to Government radio stations, a,nd by the Government committees
preparing for the next meeting of the International Radio Consult
ing Committee.
3
I t
8/11/39
"The regular broadcasting of standa.rd frequencies was
carried on throughout the year and its high reliability and
accuracy were further improved. Modulators of higher output
were installed, and frequency multiplying and monitoring
devices were made more positive and automatic. The primary
standard of frequency was im.proved by the addition of oscil¬
lators of greater constancy. "
XXXXXXXXX
CALL LETTERS OF INTERNATIONAL STATIONS CHANGED
By order of the Federal Communications Commission the
call letters of all United States international short--wave
stations are being changed to conform with the FCC order remov¬
ing the experimental limitation.
The letter "X" has designated the stations as experi¬
mental, heretofore, so that the new call letters have dj^opped
this identification.
FCC officials are lA^aiting for the stations to select
their own new call letters before announcing a complete new list¬
ing. However, those that have been changed are Columbia’s W3XAU
to WCAI and General Electric’s W2XAF and W2XAD to WGEC and WGEA,
respectively. G.E.’s San Francisco station’s identification is
changed from W6XBE to KGEI.
XXXXXXXXX
NORWAY ADOPTS LAW RE AERIA.LS
The new law on leases recently passed by the Norwegian
Parliament lays down the following provisions covering the erec¬
tion of aerials;
"The tenant must not install an aerial on the premises
or make such alterations in the dwelling or the room occupied as
would involve rem.oval of flooring or stoves or similar objects,
without the landlord’ s consent.
"Should the landlord, without justification, refuse con
sent to the installation of an aerial or to a necessary altera¬
tion of the kind referred to above, the Building Council, upon
receipt of a complaint from the tenant, may authorize the alter¬
ation. If no Building Council has been instituted the complaint
will be referred to the Committee of Conciliation for decision.
"The application of the conditions in the preceding
paragraph cannot be waived by agreement. "
XXXXXXXX
4 -
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8/11/39
FCC HOLDS RECESS ryEETING; COMMISSIOrERS DEPART
The Federal Communications Commission, in Summer recess,
held a special meeting this week to act on emergency cases before
two Commissioners, George Henry Payne and Paul A. Walker, left
Washington for the West Coast on FCC business.
Three new stations were approved. Construction permits
were granted to the Hiawatlialand Broadcasting Co., Sault Ste. Marie
Mich., to operate on 1200 kc. , 100 watts night, 250 vetts daytime,
unlimited time, and the Yuma Broadcasting Co., Yuma, Ariz. , for
1210 kc. , 100-250 watts, unlimited time.
Proposed findings of facts and conclusions proposing to
grant the application of WJIvIS, Inc., Ashland, Wis., to construct
a new station to operate on 1370 kc. with 100 v/atts power, un¬
limited time were announced.
Among other action taken was the following;
Maj . Edwin H. Armstrong, of New York, was granted a
construction permit for a new special high frequency relay broad¬
cast station to use 133030, 134850, 136810, and 138630 kc. with
50 watts power.
The application of Mariannina C. Iraci, transferer,
and Arde Bulove, transferee, for consent to transfer control of
William Penn Broadcasting Co. , licensee of WPEN, Philadelphia,
was granted. Station WPEN operates on 920 kc. , with 1 KW power,
unlimited time.
The Travelers Broadcasting Service Corp. , Hartford,
Conn. , was given a construction permit for a new high frequency
broadcasting station to operate on 43200 kc. , experimentally,
with 1 KW power, unlimited time.
WOKO, Inc. , Albany, was granted a permit to build a
new facsimile broadca.st station to operate on 25050 kc. , with
500 watts power, conditionally,
XXXXXXXXX
"If present negotiations are consummated" , Leonard
Lyons, Broadway columnist, said this week, "practically every
Broadway movie house will soon display a television set. . . .
which reminded Bobby Clark of the early days of radio, when he
was appearing at the Palace The8.ter. . . One member of the troupe
rushed off between shows to appear on a radio program - and this
enraged E. F. Albee, who summoned George Godfrey, the Palace’s
booking-manager, and instructed: ’I want you to put a clause in
all my contracts, forbidding artists to work on the radio. I’ll
put those damn radio companies right out of business.’"
XXXXXXXX
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8/11/39
FREQUENCY-MODULATION HIGH-FIDELITY RECEIVERS ON MARKET
The first frequency modulation radio receivers designed
for sale to the public have been announced by the General Electric
Radio and Television Department, Bridgeport, Conn., and are now
being shown in New York and New England, only sections of the
country to date in v;hich there are transmitters and broadcasting
stations utilizing the new system developed by Major E. H.
Armstrong. Three models are now available, two of them equipped
to receive only frequency modulation broadcasts, and a third
which also combines three-band radio reception of the conventional
type.
Outstanding characteristic of the new receivers, so far
as the public is concerned, is their ability to recreate music
and voice to an astonishingly lifelike degree, with an almost
complete absence of static and interference. The receivers
faithfully produce the fundamental notes and harmonic overtones,
retaining the personal element even in a human whisper. The
Individual instm^ments of a symphony orchestra which ordinarily
defy reproduction, such as the tambourine, cymbal, and triangle,
can be made to emerge with clarity. G. E. engineers have been
engaged in the development of frequency modulation receivers for
the public for more than two years, and the ones Just announced
have undergone rigid testing.
The nev/ model HM-136 makes available standard American
broadcasts, foreign and domestic short-wave stations, and those
transmitters of the frequency modulation type now in operation.
Its five-position tone selector makes possible the adjustment of
tonal balance over a wide range in accordance with personal pre¬
ferences. It is equipped with a 10-inch dynapower speaker with
curvilinear cone, field of Alnlco, and has terminal connections
for a public address system, so that the programs may be fed
directly into such a. system v/hen desired. A television audio and
phonograph key automatically permits the listener to enjoy tele¬
vision sound programs and can be used in conjunction with a tele¬
vision picture receiver, thus tieing-in the other major develop¬
ment of the year in a single instrument. Eleven feathertouch
tuning keys are provided for standard broadcast stations.
The tuning range of this receiver, for frequency modula¬
tion, is 39 to 44 megacycles; for short- -na.ve , 7500 to 22,000 kilo¬
cycles; for police-amateur, 2400 to 7500 kilocycles; and for stand¬
ard broadcasts, 5 40 to 1600 kilocycles. Additional features are
a multi-vision sliderule dial, floodlighted station finder,
drift-proof station setting, tone monitor circuit, automatic tone
compensation and volume control. It has 20 watts output, uses
13 tubes.
- 6
8/11/39
There are currently three broadcasting stations operaL-
Ing on the frequency modulation system - two in New England and
Major Armstrong’s original transmitter at Alpine, newr New York
City. This fact temporarily limits the markets in which frequency
modulation receivers can be sold, as in the case of television.
The transmitters have a range of approximately a hundred miles,
or twice that of television transmitters of equal power. The
Alpine station, In the New York metropolitan area, rebroadcasts
the radio programs of WQXR at the present time. Daily half-hour
programs are broadcast every hour on the hour, from 11 A.M, to
4 P.M. , and after 4 P.M. the program is continuous until 11 P.M.
xxxxxxxxxx
SWISS NEdCTIATIKG- FOR LEAGUE'S STATION
The Swiss Government is negotiating with the League of
Nations for the purchase of the League's broadcasting station,
according to a Geneva correspondent of tlie New York Times. An
agreement is expected soon.
Two chief considerations are said to have prompted
Secretary General Joseph A. C. Avenol to authorize the negotia¬
tions; First, expenditures recently have greatly exceeded receipt
and the League’s declining membership necessitated a shai'p budget
reduction. Secondly, by agreement wdth the Swiss Government, the
station enjoys extraterritoriality and might prove a source of
embarrassment to neutral Switzerland in a war.
The League has received inquiries from broadcasting
companies and press associations, especially in the United States
whether the station would be available for dissemination of un¬
censored newsin case of war. Berne, grea-tly concerned as to pos¬
sible uses to which this station might be put, offered to buy.
Negotiations dragged on until fire last month destroyed the Swiss
Government’s new short-wave station at Schwarzenberg.
xxxxxxxx
BRITISH CONSIDER $5 FEE FOR TELEVISION SETS
Owners of home television units in Great Britain will
have to pa.y a special license fee for the privilege, if the Govern
ment adopts recommendations of the Television Advisory Committee
set up by the Postmaster-General. Every user of a radio already
pa.ys 10 shillings ($2.50) annually to the Government for the
privilege, out of which the British Broadcasting Corporation is
financed, but the pla.n now is to have a special fee of one pound
($5) for vision sets, covering both picture and sound reception,
meaning the viewer will pay out 10 shillings extra.
XXXXXXXXX
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TWO STATION REVOCATION HEARINGS SCHEDULED
Revocation hearings on complaints pgrinst tv;o broad¬
casting stations were scheduled this week by ihe Federal Com¬
munications Commission.
John H. Stenger, Jr., licensee of Station WEAX^ Wilkes-
Barre, Pa. , was ordered to show cause why the license of his
station should not be revoked because of circumstances in regcard
to management and control of station. The date was not set.
A hearing before Commissioner Norman S. Case was
scheduled for September 25 in the revocation proceedings involving
Albert H. Scheraa^nn, Yuma, Arizona.
XXXXXXXX
NBC APOLOGIZES FOR W?k CHARGE AGAINST TYDINGS
The Nationa.l Broadcasting Comaoany broadcast an apology
to Senator Milliard E. Tydings (D,), of Maryland, Wednesda.y night
for an assertion made on a program July 25 that V{PA funds had
been used to build a private road and a yacht basin on his
estate, the Washington Star reports.
The apology said tha.t Bob Allen, newspaper columnist,
had made the assertions in an NBC program.
It se.id Senator Tydings had told the company the state¬
ment was ‘'entirely without foundation in fact", and Col, F. C.
Harrington, WPA Commissioner had advised it that an investigation
"failed to substantiate the allegations".
XXXXXXXX
CANADA EXPLAINS NEW RULE ON SPONSORED PxROGRAMS
Under the Canadian Broadcasting Corporation's new
arrangements for administering subsidiary "hookups" of privately-
owned stations - to be effective September 24 - the CBC itself
will deal directly with sponsors. The nexY plam was reviewed by
the CBC Board of Governors at a meeting in Ottawa. A statement
explaining the change was issued as follows:
"Under the law the Coi'p)oration is the sole network
authority. In addition to p.dministering its national and regional
networks, the CBC is responsible for the temporary, infoimal,
limited hook-ups comprised mainly of privately-owned stations
which it sets up for special purposes from time to time. These
are called subsidiary hook-ups. In the past, the CBC has
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8/11/39
restricted its function to approving subsidi;^ry hook-ups, as
application was made. In the future, it intends, in addition, to
make all the necessary arrangements such as dealing with sponsors
and agencies direct, booking time on the stations conceded,
quoting ra.tes, and other like administrative details. This is
in accordance with the policy stated before the Parliamentary
Committee. The change does not involve the taking over of private
stations or interference in their operation. It is largely one
of administrative procedure. "
XXXXXXXXX
The Federal Communications Commission has adopted an
order calling upon foreign communications ca.rriers to make a study
of their traffic on September 7, 12, 16, 17, 20, 25, and 29, to
be reported to the Commission on or before November 10, 1939 in
order tha-t the Commission may be more currently informed, partic¬
ularly so in preparation for the forthcoming international tele¬
graph conventions to be hold in Lisbon, Portugal, in 1940, and
in Rome, Italy, in 1942.
Virginia Cajnpbell, actress, is ill at her home in
Westport, Conn., apparently from the effects of the intense
lighting used for a television broadcast, according to Variety.
She has been suffering severe hea.da.ches and. sudden dizzy soells,
but is somewhat improved, although still under a physician^ s care.
She appeared on a televised dramatic program! two weeks
ago for NBC. She becajne ill immediately afterward her eyes
becoming affected first. It is believed hers is the first such
case, although ”klieg poisoning” is a common ailment among film
players, particularly since the introduction of color photography,
requiring more intense lighting.
The Columbia Broadcasting System has signed agreements
with L. B. Wilson, Inc., whereby WCKY, Cincinnati, becomes a CBS
affiliate effective October 1. The station recently assumed
maximum power facilities, broadcasting with 50,000 watts power
night and day at 1490 kilocycles. Affiliation of WCKY improves
Columbia’s coverage of the Cincinnati area, by substituting a 50-
kilov/att transmitter for WXRC, with 5000 watts day power and
1,000 watts at night. WKRC, which is ovmed by CBS, will continue
to be operated by CBS as a local station.
9
8/11/39
Stations WBLK, Clarksburg, West Virginia, pnd V/G-KV,
Charleston, capital of the State, will becoine affiliates of
the NaLionai Broadcasting Company on September 24, bringing
NBC’s station total on that date to 174, WBLK is licensed to
The Exponent Company to operate full time on 250 watts on the
1370 kc. channel. John A. Kennedy is President and General
Manager.
Station WGKV, v;hich is now being constructed under a
permit held by the Kanawha Valley Broadcasting Compeny, operates
full time on 100 watts on the 1500 kc. channel.
Auto- radio is fast becoming an all-year- round busi¬
ness, reports Sayre M. Ramsdell, Vice President of Philco Radio &
Television Corporation.
"While seasonal peaks in auto-radio still remain, these
peaks are showing a tendency to level off", Mr. Ramsdell decla.r-
ed. "I believe the reason for this trend is two-fold - first,
the tremendously high peaks in automobile sales themselves are
showing definite signs of spreading over much longer periods
of time; second, auto-radio sales are becoming less closely
geared to the automobile touring seasons, "
William C. Steffy and G. V. Parkinson, trading as
Atlas Globe China Company, Advertising Department, Rogers Silver¬
ware Distributors, Bordeaux China Company and China Sales Syndi¬
cate, 549 West Washington Boulevard, Chicago, were ordered by
the Federal Tra.de Com.mission to discontinue false representa¬
tions in the sale and distribution of silverware, earthenware,
chinaware, radios or sales promotional plans and to also dis¬
continue the use of lottery methods in the sale of merchandise.
The respondents are prohibited from misrepresenting the
retail price of raddos; selling any mercha,ndise by means of a
lottery scheme, or supplying others with lottery devices so as to
enable such persons to sell any merchandise.
It is also ordered that the proceeding in relation to
Lorina Steffy, mentioned as a respondent in the Commission's
complaint, be closed without prejudice.
XXXXXXXXXX
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8/11/39
A. T. & T. CHANGES TO SAVE USERS $1,060,000
The Federal Communications Commission announced this
week that it has received for filing from the American Telephone
& Telegraph Company's long lines department tariff changes which
will result in an annual savings to users of $1,060,000.
Affected are private line Morse services, private line
typewriter service, private line telephone service, press and
government bulletin news service, and channels for program trans¬
mission.
In the latter category, the turning points in connection
with the computation of interchange channel charges have been
eliminated.
XXXXXXXX
NBC TELEVISION SIGNALS FI:ACH CAPE COD
Television images from the National Broadcasting
Company' s station W2XBS atop the Empire State Building are being
picked up regularly and clearly on Cape Cod, a distance of 185
air-miles from New York City, according to Dean R. Barker, a
radio and television engineer who operates an experimental
receiving station near West Falmouth, Mass.
Mr. Barker reported to RCA and NBC officials that he
uses a home made 21-tube set with a five inch kinescope, a port¬
able 40-foot mast and a two-element antenna beam. Although
television signals are supposed to carry only to the horizon as
seen from the top of the transmitting antenna, Mr. Barker says
that he picks up hour-long programs from W2XBS without the slight¬
est difficulty and with little or no interference.
The engineer's only explanation for the phenomenon is
that the signals travel almost exclusively over I’^ter from the
transmitter to West Falmouth. He points out that at his home in
Taunton, Mass., ^ich is far inland from the Cape, he is unable to
pick up any visio signals from W2XBS.
Mr. Barker, a member of the Institute of Radio Engineers
and the American Rp.dio Relay League, operates amateur station
WIJLY. ^
XXXXXXXX
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2400 CALIFOR;^ street --
(To., l(iG.
LtiiAL Otr-An I'MfeNT
WASHINGTON, D. C.
111]
MUG 16
^ M PM
i
INDEX TO ISVJE OF AUGUST 15, 1959
Boston Station to Strengthen European And 3. A Signals .
Thumbs Down On New Louisville Station .
Art Stringer Lands with Broadcasters .
International Gets New Call Letters .
Samoff Sees Television As Great Cultura.l Aid . . .
Capital Police Still Seeking Radio Home .
Public Television In Germany In December - Maybe. . . .
Regional Station Rule Enforced ...
New -Wisconsin Station Favorably Reported .
Nine Million Great Britain Licenses . . .
Newspapers Warned Against Television .
FCC Rebuked; Questioned Court’s Power . . .
Paii^^t Lawyer Hired For luusic Scrap .
Tra.de Notd.s . . . , 9
WOR Joins Television Ranks . 10
I.T.& T. Appoints Nev/ Export Manager . 10
WOR Demonstrates Facsimile To President . ... 11
Mutual Ado s New Kentucky Outlet . . 11
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August 15, 1939.
m
BOSTON STATION TO STRENGTHEN EUROPEAI'J Al'ID S. A. SIGNALS
A step further in building up our international short-
Wpve service to foreign countries will, be additional facilities
contemplated by Station WIXAL, operated by the World Wide Broad¬
casting Foundation in Boston.
"Early in September we hope to have WIXAL moved to a new
location right on the Atlantic Ocean outside of Boston. ” Walter
S. Lemmon, President of World Wide said in discussing his plans.
"We will then put some real signals into Europe and South America. "
Three years ago The Rockefeller Foundation appropriated
$25,000 to enable the World Wide Broadcasting Foundation to
exoeriment with radio programs of cultural and educational value.
The Broadcasting Foundation has since received two additional
grants from The Rockefeller Foundation for its experimental
work; one of $40,000 for use during the two years beginning
July 1, 1956, and. one of $100,000 for the next two years. Of
the latter sum, $25,000 is to be paid unconditionally and $75,000
on the basis of one dollar for each dolla^r collected by the
Broadcasting Foundation from other sources.
"The Yiforld Wide Broadcasting Foundation is a noncomme20-
cial organization incorporated for the purpose of developing,
producing, and broadcasting programs of an educational, artistic,
and cultural nature, and for arranging interchanges of con¬
structive radio programs throup^out the world. " A Report of
the Rockefeller Founda.tion states: "For this it has use of the
facilities of the shortwave station WIXAL in Boston. " This
station accepts no advertising and operates on a nonprofit
basis for the service of the public. It is the only station in
the United St,c!tes with national coverage that is devoted ex-
clu^ vely to educational and cultural progra-ms. Its license
gives it the use of four shortwave frequencies. Last year
the Federal Communications Commission assigned to it, on loan,
two additional frequencies of the fve reserved for Pan-American
Broadcasting. "
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8/15/39
THUMBS DOWN ON NEW LOUISVILLE STATION
An application by the Northside Broadcasting Corporation
now operating Station WGRC at New Albany, Indiana, and the Gate¬
way Broadcasting Company, of Louisville to construct an additional
station in Louisville has been refused by the Federal Communi¬
cations Commission. After considering the case the Commission
reached the following conscusion:
"Station WGRC and the station proposed by the Gateway
Broadcasting Company, operating as proposed, would be limited at
night to the approximate 5 or the 5.2 millivolts per meter con¬
tour, and would not render primary service day and night to the
entire metropolitan district of Louisville. Under the allocation
practice of the Commission it appears, and the Commission finds
that a grant of these applications, or either of them, would not
be in accordance with the proper allocs.tion of regional frequen¬
cies and good engineering practice, and would not be in the
public interest. "
It had been proposed to locate the transmitter for the
new station on an Island in the Ohio PJLver between the business
districts of Louisville and New Albany.
George 0. Sutton, Arthur H. Schrceder and C. S. Schindleir
on behalf of the Northside Broadcasting Corpora.tion and Paul M.
Segal on behalf of the Gateway Broadcasting Company and Station
WAVE; Horace L. Lohnes and M. M. Jansky on behalf of Station
WGBI; T. P/ Littlepage, Jr., and Willi-m A.. Porter on behalf of
the Kentucky Broadcasting Corporation.
XXXXXXXXXXXXXX
ART STRINGER LANDS WITH BROADCASTERS
Another addition to the staff of the National Association
of Broadcasters last week was Arthur Stringer, of "Eoornis
Gobiensis" fame. He was engaged as a promotion q) ecialist a.nd
will be assigned to the Public Relations Department.
Mr. Stringer, a resident of Chicago, has h.^d a long
and extensive career in radio promotion. He began work as a
member of the Advertising Department of the Chica.go Tribune. He
was at one time Associate Director of Gorgas Memorial Institute.
In 1926 he becajne Publicity Director for the first New York and
Chicago Radio Shows and more recently was with Station WLW at
Cincinnati.
XXXXXXXXXXXX
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8/15/39
INTERNATIONAL GETS NEW CALL LETTERS
One of the nation’,'?, oldest short-wave calls pa.ssed out
of existence August 1, when the Federal Communications Commis¬
sion changed the call-letters of the Crosley International
Broadcasting Station from W8ZA.L to WLWO. The announce.ment was
made by R. J. Rockwell, techn.lcal supervisor. The assignment
of the new call-letters, Rockwell explained, indicates that the
station has been removed from the experimental classification
and may now transmit commercial programs to its international
audiences. At the same time the WLWO call-letters were assigned,
all Crosley mobile unit and relay licenses were removed from
the experimental classification and gi 'jen call-letters WLWA
through WLWI.
W6XAL, now WLWO, began operation as early as 1924 and
is one of the pioneer experimental stations in the world. A
new transmitter, developed by Rockwell, vj-hich will increase the
power of the station from its present 10,000 watts to 50,000,
was recently authorized by the FCC. It is expected that WLWO
7/111 begin opera.tion on the new high frequency early in the fall.
XXXXXXXXX
SARI-TOFF SEES TELEVISION AS GREAT CULTURAL AID
Through television coupled with the universal increase
in schooling, Americans may attain the highest general cultural
level of any peoiole in the history of the world, David Sarnoff,
President of the Radio Corporation of America. . writes in the
Journal of Applied Physics for July 1939.
"What of the effects I'pon existing institutions, such as
motion pictures, the theatre, schools and churches?” Mr. Samoff
goes on.
The motion picture Industry may become an important source
of supply of recorded programs to television broadcasters, where
such recordings may serve the purposes of program material more
conveniently thSvn direct transmission of living actors. There are
other possibilities too for cooperation between the motion pict¬
ure industry and television. Each should be able to stimulate
the other and this should result in an enlarged service to the
public.
"With a rising cultural level, we may expect also an
increase in the number of creative artists working with materials
of the thea.tre. Such artists will be used not only by the tele¬
vision broadcasting systems; they will find additional outlets for
their creative energies. Through these new developments we may
see a rebirth of local community theatres for the production of
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legitimate di’pmp, musical performences , da.nces, end the like.
'■The school systems will probably make increasing use
of television as paro of the educational program; for with this
medium it will become possible for the best teachers in the land
to give carefully prepared and illustrated lectures to millions
of children simultaneously.
''Church broadcasting will rise to new spiritual levels,
for with television the listeners can participate most intimately
in the services of the greatest cathedrals; they will not only
hear the ministers and the music, but see the preacher face to
face as he delivers his serm.on, witness the responsiveness of
the audience, and observe directly the solemn ceremonies at the
el tar.
"Thus, the ultimate contribution of television will be
its service towards unification of the life of the nation, and at
the same time the greater development of the life of the indivi¬
dual. We who have labored in the creation of this promising new
instrumentality are proud to launch it upon its way, and hope
that through its proper use America will rise to new heists
as a nation of free people and high ideals. "
X X X X X X X X X X X
CAPITAL POLICE STILL SEEKING FADIO HOIiE
Use of Central High School grounds in Washington, D. C.
for a receiving set for the proposed twc-wa.y radio service soon
to be inaugurated by the Police a.nd Fire departments has been
requested of the Board of Education.
After the Washington Monument Society refused to permit
the use of the landmark for the receiving set. District officials
experimented to find other suitable locations. The school site
was selected, in addition to four fire engine stations in va.rious
parts of the city.
Herbert A Friede, superintendent of the police and fire
alarm systems, expects to get part of a ^500,000 loan and grant
asked from PWA for the new fire alarm headquarters, for the new
radio service.
In addition, Maj. Ernest W. Brown, Superintendent of the
Metropolitan Police, said he had enough funds available to in¬
stall the two-way radios in about eight radio scout cars. A
similar number -iTill be tried out in Fire Department vehicles.
Engine Companies 16, 22, 25 and 51 would serve the radio
system, Friede said.
The estimated cost to equip a scout car with the two-way
system is ^350. Providing Congress appropriates the money, all
police cars would be equ^pgeg ^ith the npw sets.
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8/15/39
PUBLIC TELEVISION IN GERMANY IN DECEt/lBER - I^YBE
Gemiany still hopes to come out with public television
but nobody seems to know just when. Discussing this possibility
in connection with a review of the German Radio Exhibition in
Berlin, a writer in Wo rid- Radio (London) goes on to say:
"There is no theatre- studio to liven up the atmosphere
of the television section, which consists of a vast hall, on both
sides of which the five German firms interested in television
show some historic apparatus, and present the new "Standard"' tel e-
’.'ision receiver — the first to become available to the public.
"All the television sets are showing the same picture,
transmitted from the Berlin television station, with 44i-line
definition. It seemed surprising that the receivers on view did
not produce a ''standa.rd" picture. I carefully observed the re-
ception quality throughout the opening day, and noted consider¬
able differences; in some instances bad flicker, poor focusing,
and unpleasing da.rk shadows were apparent. I was assured, however,,
thit the sets would be tuned to give correct performance later in
the i‘un of the exhibition.
"The most sensational exhibits were the bearings made of
ceramic materials and the porcelain valves, which are intended to
take the place of the metai valves. The former will not, however,
be introduced at present, as they would be more expensive th§n the
present metal valves.
"Large-screen reception of television is being demon¬
strated in the hall of a Post Office in a North Berlin district.
The screen is approximately 10 ft. by 12 ft. , the same as that used
in small cinemas,.' Lighting of the screen seemed even brighter
than in some of the smaller Berlin cinemas, but the brilliancy
and quality of the picture shown is not up to full entertainment
standard, bearing in mind the expectation of a public who will
enter this hall as they would a cinema.
"The television set with its new flat screen with square
pictui'e — due to the form of the new type of cathode-ray tube used
— will no doubt attract considerable attention at the Berlin Show.
It is announced that five thousand sets will be on the market by
December, and that another five thousand wall then be made by the
joint television industry. The price is fixed at hZ2 lOshillings
(at par) , and this set is without medium or long wave radio re¬
ception although it has complete equipment for ultra-short waves.
The screen of the set can be covered when the listener wishes to
listen to the ultra-short transmissions of the Deutschlandsender
programmes, which will fill in television intervals.
"The actual official opening of tne first German public
television service remains in the future. Once the sets become
available — which, it has been officially stated, will be possible
oaiy if enough raw materials, can be spared from other work— by
December Berlin will at any rate have a service."
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3/ .LU/ 0 3
RECtICNAI. station rule enforced
In reporting adversely upon a request for an increase
in power for Station MBR at Jacksonvii'^ e , Florida the FCC cited
the fact that regional stations are designed to serve a metrop¬
olitan district and large rural areas ad.lacent and concluded:
"In this instance the applicant will not rendei’ the service to
be expected of a regional assignment.
XXXXXXXXX
NEW WISCONSIN STATION FAVORABLY REPORTED
Favorable action was taken upon the application for a
new station WJMS at A.shland, Wisconsin. It ^-^s believed that no
interference v/ould result to WSAV and WHLB there. The FCC con*’
eluded that public interest would be served by granting the WJMS
application, subject to the following conditions:
(a) That the applicant shall, within a period of thirty
days furnish the Commissicn with satisfactory proof of ins aiA
thority to issue the capital stock proposed to be issued and to
do bua ness in the State of Wisconsin; and.
(b) That if a construction permit be subsequently
issued to the applicant, upon compliance ¥dth the above conditions,
said permittee shall, within three months after the effective
date of this order*, file an application for modification of con¬
struction permit, specifying the exact transmitter location and
domplete radiating system.
XXXXXXXX
NINE MILLION GREAT BRITAIN LICENSES
Great Britain has now more than 9,000,000 licensed
listeners, the number at the end of June being about 9,009,700, it
was announced recently by the Postmaster-General. These figures
give an average of 72 licences per 100 households, and, excluding
children under seven, a total of 29,000,000 listeners. Licences,
which have continued to increase, though at varying rates, since
the wireless licence was instituted in January, 1923, increased
by over 25,000 during June.
The density of licences to population in this country is
exceeded, in Europe, only in Denmark and Sweden. It is exceeded,
outside Europe, in New Zealand and the U.S.A. (as there is no
licensing system in America, the proportion of listeners to total
population is an estimate).
XXXXXXXX
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8/15/39
NEWSPiVPERS WARNED AGAINST TELEVISION
Surveying the probable effects of television upon mews-
papers David S. Spector in the first of a series of articles
in the Editor and Publ Isher sees it as a definite threat to local
advertising revenues. Mr. Spector intimating that publishers
overloDked a great opporturiity to get in on radio in the early
stages warnstha'i television is even more important, and advises
newspapers to "Lake it into camp" while there is still time.
"Last April at a meeting of the National Newspaper Pro¬
motion Association held in New York, consideration was given tc
the problem of the position of the newspaper in national adver¬
tising schedules. " Mr. Spector writes; "It appears that national
advertising in newscapers in the year 1938 was 14.7^ greater than
in 1933, whereas national magazines showed an increase of 34.3/
and radio an increase of 187. <6%. The figures for 1938 continued
Lo express a trend away from the use of the nevrspaper by the
national advertiser and, very properly, intelligent newspaper
officials are considerably disturbed.
"Now comes television. Unquestionably it behooves the
newspaper to appraise most carefully the probable course of
development of television as a new advertising medium and the
effect of this development on the very founda.tion of newspaper
income — that which comes from essentially local advertising.
"A sine qua non of such an appraisal is a clear under¬
standing of one important aspect of television. Those who have
this understanding have little doubt that television must inev¬
itably develop into an additional advertising medium and directly
oorapetitive to the hewspaper, and one which will constitute a
definite threat to the newspaper of much greater signif ica.nce
than radio broadcasting as we know it today.
"This important aspect of television is that its effect¬
ive reception range is from 85-35 miles from the location of
the television transmitter, in all directions from that trans¬
mitter.
"The most significant fact in television is that its
reception area corresponds almost exactly with the normal cir¬
culation area of the large city newspaper. Because of this,
television is destined to become an even more direct comnetitor
of the newspa.per for local a.dvertising than radio. Also be¬
cause of this, television must appeal principally to the local
advertiser, who contributes so large a part of the total advert
tising income of the newspaper. "
X X X X X X X X X X X
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3/15/39
FCC REBUKED; QL^esTIONED COURT’S ?C\^’ER
Tne Federal Communications Commission received a sharp
rebuke from the United States Court of Appeals yesterday for
advQcatip,g a "method of uncontrolled competition that is one way
of creating monopolies. "
The attack was contained in a decision by Justice Miller
upholding the commission's action in granting a license to radio
station 7v!lEX, operated in Boston by the Northern Coi-pora.tion, to
increase from 100 to 5.000 watts.
The Yankee Network, Inc. , apoealed from the decision on
the ground that the financial and economic interests of its sta¬
tion, WAAB, would suffer in competition with the more po?;erful
station. The court found the commission had a "substantial basis"
for concluding that the new station would have no such effect and
therefore dismissed the appeal.
The commission's claim that the court had no power to
hear the appeal was made the basis of an attack on the "arbitrary
and uncontrolled exercise of power" that might result if the claim
were allowed.
Quoting the Commission's statement that "one of the
chief concerns of Congress . . . was to guard against monopolies
and to preserve competition" (in passing the Federal Communicaw '
tions Act) , the Court commented, "It is difficult to understand
how this result could be achieved by deliberately or carelessly
licensing so many new competing stations as to destroy already
existing ones, and possibly the newly created ones as well."
"The method of uncontrolled competition argued for by
the Commifeston'in the present case," the Court continued, is in
fact one way of creating monopolies. If it were allowed to go on
unrestrained, according to its theory of nonre viewable arbitrary
power, none but a financial monopoly could safely exist and op¬
erate in the radio broadcasting field. "
The right of existing licensees to appeal from decisions
of the Commission is granted in the Federal Communica tions Act,
the Court ruled, holding to interpret the section any other way
would be to "deprive it of meaning and eliminate it from the act."
X X X X X X X X
PATENT L.AWYER HIRED FOR LFJ3IC SCRAP
Sydney M. Kaye has been engaged as special counsel by the
National Assn, of Broadcasters to complete the drafting of final
plans to develop new sources of music for the radio industry in¬
dependent of ASCAP.
"Mr. Kaye is regarded as one of the outstanding copyright
lawyers in the nation", according to an NAB bulletin. "He is
thoroughly conversant with broadcasting and its operating problems.
He posses es a. wide knowledge of the music publishing business
and has acquaintances throug^ou^ publishing world. "
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8/15/39
0 « •
; : : TRA.DE NOTES
In line with its policy of exoeriraenting with all types
of television programs in order to determine audience preference s^
the National Broadcp sting Company will inaugurate a new series
of telecasts dealing with the advertising of women’ s shoes over
station W2X3S, on Wednesday, Aug. 16, at 12i45 p.m., EDST.
RCA Communications,
June 30:
June gross . .
Net income . . .
Six months gross
Net income . . .
Inc. - June and six months
1939
. $415,307
21,269
2, 696,206
. 224,834
1938
$417,378
20,018
2,584,869
166,700
to
Aiming his camera through a high power telescope, Byron
McG-ill, of the National Broadcasting Company at KDKA, Pittsburfe
made a picture of the top of the broadca sting station's skyscrap¬
ing antenna which is exa^ctly 710 feet high.
Effective September 24, Station WCKY, Cincinnati - with
50,000 watts power night and day - joins Columbia as a member lof
the Basic Network, repla.cing WKRC (5,000 watts da.y; 1,000 watts
night) .
A national radio system for the whole of Malaya to be
used in time of emergency was urged by Mr. E. N. C, Woolerton of
Singapore at a meeting of the Legislative Council of the Straits
Settlements.
The Morris Liebmann Memorie.l Prize for 1939 awarded by
the Institute of Radio Engineers to H. T, Friis will be presented
by the 14th Annual Convention of the Institute to be held in
New York next month.
9
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8/15/39
won JOINS TELEVISION RANKS
In the interests of an extensive program of research
and experimentation, station WOR of the Bamberger Broadcasting
Service, Inc. , announced this werk that it has applied for ■•'ler-
mission to constinict a television station in the heart of New
fork City. The project, according to Alfred J. McCosker,
President of WOR, will be closely linked with a campaign of
experimentation in new television program technique and engineer¬
ing a dvancement .
The application, filed with the Federal Communications
Commission at Washington, calls for a lOO-watt transmitter
operating in the 84 to 90 megacycle band and located atop a.
skyscraper in midtown New York. It will service the entire Met¬
ropolitan a.rea.
The proposed policies of the new station will emphasize
educational telecasts and special features coverage of spot news,
political and sporting events with the same timeliness as WOR
has displayed in its sound boradcasts.
Both live programs and motion pictures will be aired from
the new television installation. A study of improved studio
methods is already under way. The new sta^tion, although it r/ill
be licensed on an experimental basis for unlimited time, expects
to offer visual programs da.ily, the number of hours being depend¬
ent on the increase within its service area of installed receivers.
Cooperation in the educational aspects of the venture has
been assured by a numbdr of important educational institutions in
New York State and New Jersey.
xxxxxxxxx
I. T. & T. APPOINTS NEW EXPORT MANACER
0. J. Olgiati has been appointed export manager of the
International Telephone and Telegraph Corporation, it was an¬
nounced by Sosthenes Behn, president of I.T. & T. Connected with
the telephone business since 1911, Mr. Olgiati in the past seven¬
teen years has sold personally telephone, telegranh and ra.dio
equipment and other electrical supplies in thirty-five countries
outside of North America.
Upon his graduation from the University of Vermont in
1911 as an electrical engineer, he joined the Western Electric
Company and had four years' experience in its telephone factory
at Hawthorne, Ill. In 1915 he was selected for the research staff
of the Bell Telephone Laboratories and. subsequently joined the
United States Navy and served during the war as an ensig.n in the
submarine service.
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8/15/39
When International Western Electric was purchased by
I.T. & T. In 1925 and reorganized as International Standard
Electric Corporation, Mr. Olglatl was sales engineer. In 1934
he was made sales manager and now manager of the export depart¬
ment.
xxxxxxxxx
WOR DEMONSTRATES FACSIMILE TO PRESIDENT
Miles will be no bar to President Franklin D. Roosevelt
reading his daily news each morning while he cruises during the
next ten days in the North Atlantic off American shores. Through
the miracle of facsimile, a printed resume of the events of the
day will be flashed across the miles to the U. S. S. Tuscaloosa
each night and reproduced in identical form aboard the vessel for
the nation’s vacationing chief executive.
A special Finch facsimile receiver has been installed
aboard the Navy cruiser, and this is tuned each night from 2 tt5
4:30 a.m., EDST, to WOR’ s regular 710 kilocycle channel. During
that period WOR transmits facsimile sigiials which may be received
many hundreds of miles at sea.
Facsimile is the new method of radio communication by
which regular printed matter and pictures may be sent over the air
for reproduction at the other end. WOR has been actively engaged
in the new field for more f.han a year and ^ half.
A complete copy of the daily transmission, including all
aurrent items which should be of interest to the President during
his vacation from Washington, will be placed before Roosevelt each
rooming by radio officers aboard the Tuscaloosa.
WOR also transmits facsimile each afternoon from 4 to
6 p.m., over its ultra-high frequency transmitter, W2XUP, for local
receivers scattered about the metropolitan areas.
XXXXXXXXX
MUTUAL ADDS NEW KENTUCKY OUTLET
Station WCMI, at Ashland, Kentucky, and servicing the
territory around Huntington, West Virginia, will join the Mutual
Broadcasting System on September 24, thus forming another link in
the newly- formed Southern Network.
WdO, operated by the Ashland Broadcasting Company, op¬
erates on 250 watts of da.ytime power and 100 watts at night. The
channel is 1310 kilocycles. WSIX, Nashville, WLAP, Lexington, and
WGRC, New Albany (Ind. ) and Louisville, Ky. , - the three other
members of the Southern Network - officially become affiliated with
Mutual on September 24.
11
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Heinl Radio Business Letter
jly 2400 CALIFORNIA STREET WASHINGTON, D. C.
P) li Hd il 11 W
AUG 21 1939
kit PMl
INDEX TO IS^UE OF iuGUST 18, 1939
Canada Our Best Radio Customer . 2
Boston Radio Buoy Successful . 2
France To Improve S-W Broadcasts To U. S . 3
Lost Bush-Walkers . 4
Norway Expands Police Radio Equipment . ... 4
Thaw Expedition Well Equipped . 5
More Short-Wave Call Letter Changes . 5
KHBRC Call Letters For Howard Hughes . 6
Capital Station Seeks 5kW Boost . 6
Boake Carter Stages Come-Back Through Discs . 6
Trade Notes . 7
WJ3V Lauded By Labor Lea.de rs . 8
CBS New Fate Card Effective Seot. 15, 1940 . 8
Youth, 16, Wins Marconi Scholarship . 9
Static-Less Radio Tryout . 10
Tafts Get Cincinnati Station . 10
Mutual Gets World Series . 11
Cheaper Television Sets Urged . 11
Large Unit Leased In N. Y. Television Plan . 12
No. 1150
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F
CANADA OUR BEST RADIO CUSTOMER
Canada has forged ahead as the largest radio market of the
United States during the last fiscal year according to John H.
Payne, Chief of the Electrical Division of the Bureau of Foreign
and Domestic Commerce, South Africa led in 1936 with s2, 901,000
with Mexico second; Mexico was ahead with $'2, 835,000 the year fol¬
lowing with the United Kingdom close behind.
During the past year Mexico to^k a drop to sixth place. No
comment 77as forthcoming on this at the Commerce Department but rea¬
sons advanced for the falling off of radio trade with our neighbor
+0 the south were that either they were less friendly on account of
tne oil controversy or not so prosperous now as they were the year
e f ore .
The following table shows United States radio exports dur¬
ing the last fiscal year.
(Note: Underlined figures indicate first place for that
year. Values in thousands of dollars.)
Commodity
South
United
Description Argentina
Brazil
Canada.
Mexico
Africa
Kingdom
1 9
3 8
Transmitters. . . .
54
72
247
136
24
53
Receiving Sets. .
69
1,192
296
711
1, 552
738
Tube s .
494
167
221
75
85
140
Components .
1,^
322
1,044
65
124
857
Loudspeakers. . . .
60
210
11
11
8
Accessorie s .
17
11
131
27
32
55
Tota.l .
1,858
1,824
2,149
1,025
1,828
1,851
The total
radio exoorts to
all countries
by the 1
^nited
States during 1930
was $23
,100,000
, of which ©10,554,000
T/as for
receiving sets.
X
X X X X
XXX
X
BOSTON
RA.DI0 3U
CY SUCC
E35FUL
The follOTTing observation by the oonima.nding officer of a
Navy Vessel on the radiobeacon buoy which is new i-indergoing service
trials in Boston Channel is of interest:
On May 29, 1939, this vessel received signals form the radi
beacon buoy No. 10 in Boston Channel, when at a distance of appro x-
2
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8/18/39
Imately 5-| miles from the buoy. The character of the signal wns
excellent at this distance and is considered sufficiently strong to
obtain reliable bearings. "
xxxxxxxxx
FRANCE TO IMPROVE S-W BROADCASTS TO U. S.
At last France evidently intends to do something to improve
its short-wave broadcasts to the United States. This is understood
to be the proposal of M. Leon Brillouin, slated to be Director of
State Broadcasting. At the same time M. Jean G-iraudoux is to be
named Commissioner for Information in charge of propaganda. Under
them will be the government stations - Radio Paris, PTT, the Eiffel
Tower, and the state provincial stations.
M. Brillouin while visiting the United States recently is
said to have been told of many shortcomings of the French short-
v.ave broadcasting service insofar as this country was concerned —
:,hat T-ennany, England, Italy, Holland and even Czecho- Slovakia
were sending a better signal into the United States than France,
Also that the programs of these countries v>rere superior to the
French, the latter using for the United States many gramophone rec¬
ords.
So now evidently M. Brillouin proposes to do something
about it. To meet the necessary additional expenditure, it is re¬
ported that the draft of the French Budget for next year v/ill con¬
tain a provision for raising the licence fee from 50 to 75 francs.
M. Brillouin is a Professor of Physics and is the inventor of a
sound amplifier He is well acquainted with the technical prob¬
lems of broadcasting.
M. Jean Giraudoux enjoys the double distinction of being a
member of the Diplomatic Service, and also of being one of the most
notable among French men of letters. Many Londoners will remember
his play Amphytrion 58, which was produced some time ago. As a
diplomat he spent three years in Berlin, and at one time he was head
of the Press service at the Quai d’Orsay.
XXXXXXXXXX
O'
/ Message traffic and equipment sales in the marine radio
field show a definite increest, according to Charles J. Pannill,
President of the Radiomarine Corporation of America, who sailed
from New York on the Normandie to attend the annual meeting of
the Comite Internationale Ra.dio Maritime in Paris.
XXX
1 X X X
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8/18/39.
LOST EUSH-'WALKERS
Tests made in Australia might be watchen with profit by
sbrte police in this country in case there should be a repetition
of an emergency brought about by the lost boy in Maine recently.
A Sydney suburban radio club has been conducting field
tests to ascertain the value of portable radio transmitting and
receiving equipment for communication between search parties look¬
ing for persons lost in the bush. The primary object of the tests
',7?.s to determine what type of equipment is best suited for search
and rescue parties, which are usually forced to walk over rough
country.
Bushwalking is a popular pastime, and there are many well-
organized and efficient bush-i/ialking clubs. The members on these
organizations a.ro very well able to look after themselves and they
have formed rescue and search sections to find, or assist the oolice
force to find, careless or unskilled parties, a certain number, of
\.hich lose themselves every yea,r. In the Australian radio tests
field parties kept in touch with a base station which in turn was in
constant communication vlth a. city station.
XXXXXXXXX
NORWAY EXPAI'IDS POLICE RADIO EQUIPMENT
In 1937 the Norwegian police authorities commenced to use
radio transmitters and receivers in its service. The Oslo municipal
police now own 11 receivers and 7 transmitters, and the G-overnjnent
police at Oslo own three transmitters and three receivers. With the
exception at four patrol cars of the municipal police, which are
equipped witn receivers only, the two-way system is used. One of the
transmitters, which is installed at police headquarters, is of 50
watts, whereas the other transmitters installed in patrol, pa.ssen-
ger and tra.nsportation cars and a police harbor boat, are of five
wetts.
The equipment in use has been purchased from the local rep¬
resentatives of an American company. It is understood that when new
patrol cars are provided, they will probably be equipped with ultra
short wave radio telephone transmitters and receivers. The Nor¬
wegian police is interested in nurchasing equipment for two-w-^-y comh: ■
munication only.
XXXXXXXXX
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Slid Yo enG .beaif b1 mejays yew-r-’d 'nld ^ylno nnovxeoet . dl’.e Xen.
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~qet X .ool arid rnofi bs 3 xlo ‘inq need nod .au ni d.viiitqlnpe ''AT
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X X X Y y V X X
(
e/ie/39
THAW EXPEDITION WELL EQUIPPED
The four mobile motor units in the Lawrence Thaw trans-
Ai^iatic expedition will be aole to maintain contrct with each
oGher even when seoarated by distances as great as 200 miles. The
eqaipment mil permit short-distance transmission and reception
between each of the two trucks, trailer and cruiser sedan Dy the
use of four transm.it ters and communication type receivers. Two
iii8dium-hi£j:i frequency transmitters and receivers installed ..n the
cruiser sedan and trailer fire capable of giving clear reception
up to 200 miles or more.
The expedi.tion left New York City on June 21, on the
14,000 mile tour that will take it through Budapest, Istanbul,
Damascus, Baghda,d, Herat, throu^ Kh^fber Pass, Delhi, Calcutta
and finally into Bombay, India, sometim^e next spring,
XXXXXXXXX
MORS SHORT-imVS CALL LETTER CHANCES
In recognition of the fact that the short-wave stationshave
outgrown their exrerimenLal status, the National Broadcasting Comp¬
any's two international shortwave stations were assigned new call
letters by the Federal Coramurii cat ions Commission. W3XAL hereafter
will be known as WRCA, while W3XL is to be called WNBI.
Both stations will continue to operate on their old fre¬
quency channels, WRCA using 21,530 kilocy.cles {13,87 meters) and
9,670 kc (51.02' m.) and WNBI employing 7,780 kc (16,8 ra. ) and.
6 , 100 kc (49.1 m. ) .
Westinghouse short-wave station W8XK, outlet of the pioneer
station KDKA, will hereafter be known as WRIT; and the Crosley
short-wave station at Cincinnati, W8XAL, which reproadcasts the
programs of its big brother 7vLW will now have the call letters of
WLWO. Ceneral Electric's Schenectady stationswill be knovni as
WCEO and WCEA from now on and their San Francisco station is now
KGEI. Columbians station W3XAU is now WCAI.
So will be seen that several of the stations have availed
themselves of the opport^unity to include the initials of their
oompanies in the call letters, such as WRCA (Radio Corporation of
America), WNBI (National Broadcasting Co.) fJPIT (Westinghouse,
I-ittsburg) and WCEO, WCEA, and KCEI (Ceneral Electric). /
XXXXXXXXXXXXXXX
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XXXXXXXXaXXXAYX
8/18/39 .
KHBRC CALL LETTERS FOR HOWARD HUGHES
Homrd. R. Hughes, feiQous around- the- wo rid aviator, has
been granted by the Federal Comraunice ticns Commission special
temporary authority to operate already’’ licensed aircraft radio
transmitter aboard pj.ane I'IX-19904, ov/ned by Howard R. Hu^es and
bearing call letters KHBRC, as a relay broadcast station. It will
be on frequencies 4797.5, 6425, 12862.5 a.nd 17310 he, 100 watts,
for a period not to exceed 30 days, to relay broadcast special
program in connection with the proposed sub- stratosphere flight
across the Atlantic Ocean and to be broadca.st over CBS and Station
Wer for Mutual network.
X X X X X X X X X
CAPITAL STATION SEEKS 5KW BOOST
The National Broadcasting Co. filed with the Federal Commun-
icacicns Commission an application for the removal of the tra.ns-
Litcei* of Station MLAL. The Washington Evening Star station from
712 Eleventh Street, N.W. to Bethesda, Md. , a suburb of the capital.
The application asks for a construction permit to install a new
br-arismitLer, directional antenna, for day and niglit use and. an in¬
crease in pov/er from 250 watts night, 500 watts day, to 5 kilowatts.
Tne station v;ould remain on its present frequency of 630 kilocycles.
A map furnished with the application shows the proposed site
of the station, about one mile west of the old Georgetown road be¬
tween Alta Vista, and Beane. The proposed transmitter would have
four towers approximately 400 feet in height each.
XXXXXXXXXX
BOAKE CARTER STAGES COME-BACK THROUGH DISCS
Boake Carter, noted Philadelphia Coimrientator, whose retire¬
ment from the air sometime ago occasioned considerable comment,
.'5ome declaring it amounted to censorship is to be heard through
electrical transcription.
The daily commentary series begins September 11. The discs
are now being distributed. Donald. Flainm has contracted for the serv«-’
ies in New York City for Station mCA.
X : X X X X
At the end of May the. 1,128,664 radio receiving
licences in force in Australia, equivalent to about one for every
sox oersons. The gross income is estimated at LI, 180,000.
XXXXXXXXXX
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8/13/39
^ : : :‘I.RADE NOTES; : : :
An application tips been received to ei'ect a new station at
San Juan, Puerto Rico. It would be operated by the Puerto Rico ad¬
vertising Company on 1500 kilocycles, 250 watts power, unlimited
time.
A construction permit has been granted for a. new municipal!
police station for Martinsburg, Va. , with a frequency of 2490 kc.
Sta.tion KHQ, Spokane, Wash., has been given temporary
authority to rebroadcast Washington National G-uard planes in
radio maneuvers.
Unit sales in radio-phonographs are 710 percent ahead of
what they were last year, according to S. J. Krause, head of Philco
radio-phonograph division.
The Federal Trade Commission issued a complaint against
Sam Luber, trading as Dearborn Sales Company, 711 South Dearborn
St., Chicago, Charging the use of lottery methods in the sale and
distribution of radios and other articles of merchandise.
Ian C. Javal, commercial director of the Baird Television
Corporation, sailed for England last Wednesday, on the Normandie,
on business in connection with important new develooments. He
will return here in the late fall.
The first short wave radio directlon-f indlng station will
be installed at Sydney, Australia this summer. This station, the
first unit_in a scheme for 18 stations to cost $50,000, will
serve the Empire line, the trans Tasman line that is to start in
1940, the New Guinea line and the Dutch line. As soon a.s this
station has been fully tested a.nother will be erected on Lord
Howe xslavUd for the Tasman service.
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8/18/39.
WJSV LAUDED BY LABOR LEADERS
Representative Andrew G. Schlffler (Rep.) of West Vir¬
ginia has caused to be entered in the Congressional Record an
official recognition of "devotion to public service by rsdio
station WJ'SV, of Washington" for its "Labor News Review" pro¬
gram now in its sixth year.
Simuluaneously , A. D. Wiiliard, Jr. , general manager of
the CBS station, and Albert N. Dennis, commentator on the program,
have been presented with plaques in Appreciation of their service
to Labor and given by Brewery and Yeast Workers Local No. 48 and
Beer and Soda, Water Drivers' Local No. 67.
Representative Schiffler, in placing a radio address by
Harry J. Thompson, of the Brewery and Yeast Workers, in the Rec¬
ord, prefaced the entry with the following;
"The address (Mr. Thompson’s) wa.s delivered on the
Labor News Review radio program which WJSV has presented continu¬
ously as a public service since the Summer of 1934 and which has
become the oldest continuously presented labor radio program in
all the world. Devoted to facts and avoiding participation in
any controversy within the ranks of labor, the Labor News Review
has become a worthy institution, rendering a first-class public
service that is highly regarded, not only by labor but by the c
entire public. "
The legislator also caused to be published the transcript
of a tribute over WJSV by the Brewery and Yeast Workers and the
Beer and Soda. Water Drivers to their employer, Christian Heurich,
Sr., prominent Washington brewer, whose employes broadcast their
respects on his approaching 97th birthday.
XXXXXXXXXXXX
CBS NEW PA.TE CARD EFFECTIVE SEPT. 15, 1940
In purlishing Rate Card No. 26 the Columbia Broadcasting
System announces the first general rate revision since late in
1936.
"Constant advances in the size of the U. S. audience, and
steady improvements in power and facilities, have been recorded in
the past three and a half years, since the last rate changes, "a .
Columbia, press release states.
G-rowth of the radio audience since the last CBS rate revision
19J6 is seen in these percentage- trends; total r:''-dio homes up
14,*, from 24,500,000 to 23,000,000; total sets up 44,^, from
63,000,000 to 47,500,000; auto radios up 56^o, from 4,500,000 to
'’,000,000. Moreover, sets in da.ily use have increased from 76.4/
to 84/, and average hours of da.ily use have risen from. 4.2 to 4.5
per da.y.
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e/18/39
"Development and extension of CBS facilities since 1936 liave
made notaole strides, with total station pov/er up 46, 3/, oO^o more
50-K.w stations, 45 stations operating with increased power, and 6c
stations utilizing improved transmitters and equipment. The new card,
affective September l'5, 1939 for new contracts, and effective a
year later, or September 15, 1940, for present contracts, adva.nces
CBS rates 7.b% over the present average.
"Comparison of Rate Cards 25 and 26 reveals the following
detailed changes: time charges for 12 stations have been lowered
S25 per evening hour each; 41 stations remain constant; 56 stations
increase an a-veraige of $36.13; two stations added to the network
(VniiT, Cedar Ra.pids, and KWFT, Wichita Falls) , This totrls 111 sta¬
tions; with four bonus stations and a choice of iWIFG- or WHLB, Rib¬
bing- Virginia, Michigan, and a choice of WG-R or WKBW, Buffal.o, the
complete CBS network now stands at 117 sta:tio.ns in 116 cities.
"The basic network under Ra.te Card 26 comprises 26 cities,
compared with 25 on the current card, WMT, Ceda.r Ra.pids, has been
added as a basic station, effective May i, 1940; WKP, Harrisburg,
becomes a basic optional station; WORC, Worcester, becomes fi basic
^supplementary . "
XXXXXXXXXXX
YOUTH, 13, WINS MARCONI SCHOLARSHIP
A two-year scholarship valued at $1,000 to the RCA Institute
of New York ua^.s presented at the Westinghouse Exhibit Auditorium at
the World's Fair to Robert Barkey, 16, a graduate of Stuyvesant High
School, following a competitive contest of which he was the winner.
Robert was sponsored by the American Institute of the City of New
York, a 111-year old organization interested in promoting opportun¬
ities for youthful science workers. The Institute has organized
Science and Engineering Clubs in high schools throughout the country.
Donor of the award was the Veteran Wireless Opera^tors'
Association, wh.ich has established a. series of amrds in honor of
Marconi. Robert' s Schola.rship is known as the Marconi Memoria.l
Award. The cere.mony, attended by 400 members of the Veteran ?/ire-
less Operators' Association, the American Institute and World's
Fair visitors, wa.s broadcast over a coast to coast network of the
Mutual Broadcasting System. Robert T. Pollock, President of the
i^erican Institute, presided. William J. McG-onigle, President of
the Veteran Wireless Operator's Association, introduced the organiz¬
ation' s Marconi Memorial Awa.rd Chairman, J. R, Poppele, who raa.de the
presente.tion,
XXXXXXXXXX
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"STATIC-LESS" RADIO TRYOUT
Plans are beins made for extensive testing in Ner York
Oity of "static-less" or "frequency-modulation" broadcasting by
the National Broadcasting Company and the Bell Telephone Labora¬
tories, as soon as the Federal Communications Commission gives the
necessary constriJCLion permits.
Static-less boradca sting, compared rith the usual kind of
broadcasting knom as "amplitude," has become synonymous in the last
few years Tcith the name of Major Edwin K. Armstrong, radio inventor
and Professor of Electrical Engineering a.t Columbia University,
On numerous occasions during thunder storms, he has shorn
thpt a program can remain clee.r despite the noises of nature,
W8XMN, the Armstrong Station, at Alpine, N. J. r/orks on
about seven meters, or 42.8 megacycles.
If the FCC approves, a l,000-v;att f requency-modulation sta¬
tion will be installed on one of the top floors of the Empire State
ilding. The NBC channel will be 42.6 megacycles, adjacent that of
XMN at Alpine.
The Bell Laboratories station will be installed at ''Ihippany,
N, J, , where a corps of engine . ;rs will study the "f requency-modula-
xion" problem in a.11 its angles, independently/’ of the work of other
experimenters it was said.
Other applications nor^ beofre the FCC, all on the Armstrong
system, include a station for Strom.berg-Carlson Telephone Manufact¬
uring Company, at Rochester, N. Y. ; the Traveler Company, Hartford;
The Milwaukee Journal and the Worcester (Mass.) Telegram. Construc¬
tion permits have been issued to various other expeiimenters both
here and in the Middle West. Besides W2XMN at Alpine, three or
more other stations are transmitting daily from various New England
DOints.
X X X X X X X
/" TAFTS SET CINCINNATI STATION
Agreement was reached for the sale of WKRC, Columbians
OOTied and. ooerated station in Cincinnati, to the Cincinnati Times-
3tar. The sale will beomce effective on September 24 - subject to
PCC approval. On that date, Columbia Network progra.ras broad_cast in
Cincinnati will be aired from WCKY, Columbia's recently-affiliated
50,000-watt outlet in Cincinnati.
Negotiations prelimi.nary to the sale of WKRC were under the
direction of M. R. Runyon, CBS vice-president, and Hulbert Taft,
publisher a.nd owner of the Times- Star.
xxxxxxxxxxx
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8/18/39
MUTUAL GETS WORI.D SERIES
Exclusive oroadcp sting rights for the 1939 Baseball Wor-ld
Series were secured by the Gillette Safety B^zor Company of Boston,
Massachusetts, and the Mutual Broadcasting System. The contract
was signed by the three contracting oarties - Commissioner Landis
for Baseball, President J. P. Spang, Jr. , for the Gillette Company,
and general manager Fred Weber for the Mutual Broadcasting System.
The World Series will probably start on October 4,
The Gillette Safety Razor Company and the Mutual network
also have an option on the 1940 World Series broadcast rights. The
money paid baseball for the broadcasts will be divided in the World
Series regular money pool, with the major portion going to the play¬
ers.
The Mutual System announced that the network would link more
than 150 stations by its network of wires to carry the broadcasts
to the fans of the mtion. In 1935 and 1936, the games were spons¬
ored on the three networks - Mutual, CBS and NBC, by the Ford Motor
Company, for which baseball was paid $100,000 each year.
X X X X X X X
CHEAPER 'TELEVISION SETS URGED
Sales of television sets will receive their greatest impetus
when the industry develops a receiver offering a five by seven inch
picture, to retail at about $250, Ernest H. Vogel, Vice President in
charge of operations of the Farnsworth Television and Pa.dio Company,
said in New York last week.
1/Ir. Vogel, who spent considerable time in London late last
year, estimated that about 15,000 television sets are in operation
in tha.t area.. He praised the quality of the English programs and
said that the entire operation of televisising broadcasts three or
hours a da.y, seven da.ys a week, was conducted at an annual cost of
about $1,500,000. Mr. Vogel was attending the showing of the new
Farnsworth radio and television line at the Hotel Park Central, un¬
der the sponsorship of the Warren-Norge Corporation, local distrib¬
utors for Farnsworth.
Another necessity for a greater consumer acceptance of tele¬
vision is better programs, Mr. Vogel continued. But, he pointed out
within a year television programs will be pminating from ten or
twelve major points in the country. He also expres-ed the belief
the desired goal of the cheaper sets may also be achieved
within a year and the combination should bring about a sharp spurt
in sales.
Mr. Vogel said there has been nothing discouraging in the
slow reception to television sets since they were introduced about
three and a half months ago. While probably no more than 1,500 sets
^aye been sold, he pointed out, the industry had to go through a def¬
inite experimental stage.
He was confident that the American television industry will
pe able to solve all its problems, because the English system has
Deen making rapid strides in the last year. In Great Britain, nine-
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8/18/39.
jncih. tube sets, without radio chassis, have become available at
lioO, or aijproximately $150, he pointed out, while those with chas¬
sis are selling at ±>45, or a.bout $205. Because of higher wages a.nd
sDanda;.rds of living hoi'e, the equivalent American prices for similar
equipment would have to be $225 to $300, he said.
xxixxxxxzx:rx::xx
LARGE UNIT LEASED IK N. Y. TELEVISION PLAN
Plans for expan aing the facilities of the Radio Wire Tele-
vTlsion Corporation of America were announced when the company leased
t',vo floors in 250 West Fifty -seventh Street, In New York. The coia-
nrny, foiwied recently by the merger of interests in radio, televi-
a.i.on and vdre broadcasting, ?dll have 15,000 square feet foi* exec¬
utive headquarters for the parent concern and its subaidiaries.
The two floors formerly housed Electrical Research. Products..
Inc., which was headed by John E. Otterson, President of the new
corporation, engineering laboratories and studios.
Mr. Otterson said the company planned to open branches in
major cities and expected to increase the number of its employees
from 600 to 2,000 by the end of the year.
XXXXXXXXXXX
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V
Heinl Radio Business Letter
'.C. - _ ...
l lAi.,
Dti^AR TMEnt’
r AUG 2 3 1939 li
1|2|3|4|
k
. . 2
. 3
Secret S.W. Commuiiics.ti on With. Germany Alleged. ... .4
N-4B Grapples With Code. . . . 4
L.A. Seeks Another Television Station . ... 5
S.W. Used In Mississippi Control Survey . . .5
Swiss Dicker For League Station Progresses . 5
Newly Painted Office Fnen Mr. Fly Alights . 6
Protest Tex On Television Sets . . . ... 6
Interior Depa.rtment Has Fine Studios . 7
Cubans Appreciate U. S. Weather Broadcasts . 8
As Goebbels Sees Broadcasting Duty . . . . . . 8
Trade Notes . 9
To Fight Broadcast Record Licensing . 10
U.3. Record Corporation Elects Officers. ... ... .10
CBS News Service Nazi-Soviet Trade Pact Scoop . 11
WING, Dayton, Joins NBC . 11
X 2400 CALIFOItNIA STREET WASHINGTON, 1
• I
I
L
INDEX TO ISSUE OF AUGUST 22, 1939
U.S. To Lead With 150 Radiobeacons By End Of Year. .
Figures Minimum Television Time ^525 An Hour .
No. 1151
Vi
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August , 19-39.
U. S. TO LEAD WITH 150 RADI03EAC0NS BY END OF YEAR
Ever since the trial of radiotelegraph apparatus on San
Francisco Lightship in September of 1809, a month prior to the
first demonstrations by Marconi in the United States, the pos¬
sibilities of utilizing radio in the work of the Li^thouse Service
have been receiving increasing consideration. This has been par-
cicularly true in recent years with the great developments taking
place in the radio art. Present important applications are;
Radiobeacons on ship and shore stations; radio control of
aids remote from the point of control; distance-finding througji
SjLnchronized radio and sound signals; unattended marker radio¬
beacons on fixed or floating aids; radiotelephone communication
and radj.o telegraph commimication.
The development of these applications is well illustrated
by the growth in number of radiobeacons from three in 1921 to an
unexpected 150 by the close of 1939; by the use of radiophone com¬
munication up to the same time at nearly 200 locations; and by the
introduction of distance-finding by the method of synchronous sig¬
nals at some 100 stations.
Radiotelegraph is used at about 60 stations and vessels.
Radio control, which offers possibilities of particular value under
certain circimistances , has been well developed through experience
since 1930 in the control of 2 important lighthouses and 1 light¬
ship without resident personnel and the use of unwatched second¬
ary radiobeacons or "marker beacons," so-called, now undergoing
trial at 2 shore stations together with the test application of
this type of radiobeacon to a buoy offers important possibilities
for further application of these aids in supplementing the prim¬
ary radiobeacon system.
The limited wave band, 285 to 315 kilocycles, available
for radiobeacon use has introduced important problems of synchron¬
ization, timing, monitoring, etc., to avoid interference. As
the group of minor radio aids is extended, however, increasing
interference difficulties are foreseen so that steps have been
taken to secure assignment of suitable hi^ frequencies and to
Institute development along these lines in order to be prepared
for their possible necessary use in the future.
XXXXXXXXXXX
2
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FIGURES MINIMUM TELEVISION Tllffi $525 AN HOUR
The probable cost of television advertising is dealt
with in the second of a series of articles by Daniel S, Spector
in the Editor and Publisher (Aug. 19) . In developing his theory
he writes:
"There is set up a period of four months during the first
year's activity of the television broadcasting station for inter¬
nal or closed circuit programs to train the operating and talent
personnel and build interesting programs. During this "closed'’
period the programs are completely carried out and are transmit¬
ted not to the public but exclusively to the station itself. The
technical, artistic and other phases of the program^ are then
reviewed critically and an effort made to improve the quality of
the programs which are later to be transmitted to the public.
"It is further assumed that during the remaining eight
months of the first year, the station will ooerate one daytime
hour and two evening hours, five days each week. During the sec¬
ond and perhaps the third year, the total station broadcast activ¬
ity is assumed to comprise two da.ytime hours and two evening hours
six da.ys a week, for 12 months.
"It is not contemplated, however, that the total broad¬
casting time of the station will be sold to advertisers or paid for
by other commercial sponsors. This would not be fea.sible nor soc¬
ially desirable. A certain amount of time would necessarily be
devoted by the station to studio or other programs of a non¬
commercial nature.
Mr. Spector said that based upon the estimate of costs
previously set forth of about $120,000 for the station, with an
additional total operating cost for the first year of aporoxi-
mately $150,000 and a second year cost of approximately $228,000,
then a normal capitalization for such an enterorise v^ould be about
$300,000.
"Therefore, the grand total of all station operating
costs the first year," Mr. Spector continues, "would be the figure
of $150,000 previously set up, plus the figure of $25,000 deprec¬
iation and .$75,000 return on captial, making a total of $250,000.
This is the amount of gross income required by the broadcasting
station to cover the costs set forth. During the second and third
years, this required amount would be increased from $250,000 to
$328,000, due to the increase in the cost of talent and other
programs material from $78,750 for the first year to $156,000 in
the second and third years.
"A quick metnod of determining the minimum selling price
per hour of television time to the commercial sponsor is, of course,
to divide the total station cost per annum by the number of com¬
mercial hours sold. This amount, if secured for all the available
commercia.1 hours, would also take care of the non-commercial time
of the station’s broadcasting activity.
xxxxxxxxxxx
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8/22/39
’’During the first year, therefore, with a totel estimated
station cost of $250,000 and a total commercial activity of 175
hours, the minimum selling price per hour would be about ^1,430.
During the second year, with a total estimated station cost of
$328,000 and a total commercial activity of 465 hours, the mlni-
rauin selling price per hour wouldgo down to' about $700,
During the third year, with a total estimated station
cost of $328,000 and a total commercial activity of_624 hours,
the minimum selling price per hour would be about $525.
XXXXXXXXXXX
SECRET S. W. COMIiUNI CATION WITH GEPliAI^T ALLEGED
It was testified at the Dies Congressional hearing of
un-American activities that specially equipped short -wa.ve sets
svere given as prizes by the German- American Bund for secret com¬
munication with Germany.
Miss Helen Voorys of Brooklyn, native-born German, said
she learned from members of the student group and from other
sources that the Nazi Institute for Germans living abroad, which
operates from Stuttgart, gives courses in sending and receiving
short-wave radio broadcasts and that over such a system two
Harvard- student members of the group had conversed with Nazi offi¬
cials in Germany.
XXXXXXXXXXX
NAB GRAPPLES WITH CODE
Hot weather apparently has no terrors for the National
Association of Broadcasters’ Committee, which will meet in New
York city this week to discuss copyright, the new code and record
licensing.
On Wednesday, the Executive Committee v;ill meet with the
Copyright Negotiating Committee, augmented by Walter Damm, WT!^J,
Milwaukee, and John Shepard, 3rd, the Yankee Network, to discuss
the whole copyright situation and the forthcoming special NAB
convention at Chicago. The negotiating committee includes Major
Lenox Lohr, NBC; Adward Klauber, CBS; Sam Rosenbaum, WFIL; John
Elmer, WCBM; and Neville Milter, President of NAB. The special
committee on phonograph record licensing apoointed last week con¬
sists of: Mr. Miller; Mr. Elmer, WCBM, Baltimore; and Clair
McCollough, WGAL, Lancaster, Pa.
XXXXXXXXXXX
4
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8/22/39
L. A SEEKS ANOTHER TELEVISION STATION
A construction permit has been applied for from the Fed¬
eral Communications Commission for a new television broadcast
station on the frequencies of 70000 to 84000 kilocycles with
aural and visui>.l power of 1 kilowatt, to be located at Wil shire
Boulevard at Fairfax St. , Los Angeles, Calif.
The apolicant is the May Department Stores, a large con¬
cern in that city. The only television station now licensed to
operate on the Pacific Coast, according to the Federal Communi¬
cations Commission, W6XA0 is also in Los Angeles. It is operated
by the Don Lee Broadcasting System, with a visual power of 1 k. w.
and aural power of 150 watts.
xxxxxxxxxxx
s.
W. USED IN MISSISSIPPI CONTROL SURVEY
For the purpose of conducting an experimental program of
research in connection with the determination of the feasibility
of establishing a coastal harbor service on the Mississippi River
and tributaries, the Federal Communications Commission has
granted the Radiomarine Corrooration of America permission to op-
-;rate its experimental station WIOXG- aboard the Tow Boat Alex
Mackenzie .
Frequencies of 2118, 4422.5, and 6425 kilocycles have
been autuorized with 75 watts po?/er. The Commission also granted
UlOXG- additional authority to communicate as a ship station with
Coastal Harbor Station WAY.
XXXXXXXXXXX
SWISS DICKER FOR LEAGUE STATION PROGRESSES
Further steps will be taken this week by the Swiss Gov¬
ernment to take over the League of Nations broadcasting station at
Berne,
Under the 1922 convention between the League and Radio
Suisse the latter corporation is nominally the proprietor of the
station. However, all apparatus was set up at the League's ex¬
pense and remain League property.
The same convention also provides for operation of the
station Radio Suisse in normal times but specifies that in
emergencies it would come under the League's direct control.
XXXXXXXXXXX
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e/22/ '69.
NEWLY PAINTED OFFICE WHEN MR. FiSl ALIGHTS
A newly nainted suite of offices (the same as occupied
by the former inoambent undecorated) awaits the official coming^
of James L. I'l^'- . T. V. A’ s general counsel, who will be sworn in
as the new Chairman of the Federal Communi car ions Commission
Frl day , Sep temoe r 1st.
Although apoointed sometime ago Mr. Fly has not yet
visited the Commission. There is naturally considerable appre¬
hension among the personnel about aaiy possible cnanges but
up to now Mr. fly has kept mum on this subject. Also except
in a very general way has not committed himself with regard to
future FCC policies.
XXXXXXXXifX
PROTEST TAX ON TELEVISION SETS
Claiming that the consumer would have to oay double
M. 3. Sleeper, District Sales Manager of the Andrea Radio Corpor¬
ation writes the following protest to Radio To d-iy ;
"There is undoubtedly, justification for the Federal
excise tax on rtidio sound receivers. However, the application of
ihis tax to television receivers is quite another matter.
"Manufa.cturers of television sets are bending every ef¬
fort to bring dovm the aost of the receivers so as to ma.ke them
available to the greatest number of people, and to encourage the
growth of this new industiy. At this time, when prices are nec¬
essarily high, the excise tax puts a serious burden on the buying
public.
"Because of the setup of the exicse tax on radio sets,
the 5 per cent tax paid by the manufacturer costs the consumer,
for example, ^30 on a $600 receiver. In other words, the tax ■.
costs the consumer twice as much as the amount actually paid to
the Federal G-overnment. The reason is this: The manufacturer
figures his selling price,, including excise t-x, is $300. On that
basis he pays the government $15 or 5 per cent of his selling
price Since the jobber must have, ordinarily, a 50 per cent dis¬
count from the list price, that would make the list price $570.
"From this you will see that the cost to the consumer is
not merely the $15 tax received by the G-overnment. The cost of
this tax is actually $30. Experience in tne merchandising prob¬
lems of radio dealers and manufacturers will tell anyone, without
any elaboration on my part, that there is a tremendous difference
Decween a list price of $600 and a list price of $570."
6
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'*Even on the lowest-prlce reciever which we manufacture,
listing pt $189.50, the elimination of the Federal tax would save
the retail purchaser $10. One can see how much it would contrib*-
ute towprd reducing sales resistance if we could offer the same
set at 8 price of vl79.50."
XXXXXXXXXX
INTERIOR DEPARTIJIENT HAS FliEl STUDIOS
There are two studios and a control room, as well a.s a
conference and audition room, artists' lounge, waiting room, and
offices,. all air-conditioned in the up-to-the-minute broadcasting
unit of the Interior Department in Washington The rooms are
apoointed in chromium and leather furniture and fittings.
Modern acoustic treatment of the studios insures their
being acousti^oally isolated from external noises and in addition
"live" enough to render good pickuo. The studios are, as des¬
cribed in Broadcast News , "floating" — the floors of cork tile.
The small studio is designed chiefly for speakers or interviews.
The large production studio is 40 feet long. It has an observa¬
tion gallery Tillich will seat 50 persons. Both studios have double
entrance doors providing a "sound lock" which will keep out ex-
tx^'aneous noises in case it is necessary for someone to enter or
leave during a program. Warning lights are located next to each
door to indicate when that studio is on the air. Similar lights
are also located in each studio indicating "Standby" and "On
The Air". In each studio is a loudspeaker for cueing and talk-back
and auditic n.ing.
The control ro''m is located between the two studios
with large double-glass windows allowiiig easy view into each.
The speech in.put equipment is RCA De Luxe. There is an
operator's console at’ e?ch of the two studio -"indows. Each con¬
sole contains a four position mixer, volume Indicator, microohone
and attenuator switches, and switches for cueing and programs and
auditions. High level mixing is employed; a 41-C and a 41-B pro¬
viding the necessary preamplification. A monitoring loudspeaker
is mounted directly over each console. These speakers and the stu¬
dio speakers are all controlled by interlocking relays and switches
which prevent acoustic feedback. Talkback microohones allow the
program director or the operator to soeak to those in the studios.
The main program amplifier is a 40-D and the main moni¬
toring amplifier is a 94-C. There are also three 82-A monitor¬
ing amplifiers. Switching equioraent is provided for feeding the
output of the program amplifier to one or several telephone lines
for transmission to commercial broadcast stations. Terminating
equinment is provided for twelve remote lines and order wires.
A separate rack mounts four all- wave receivers whose o:.
puts are connected to busses wliich distribute the four programs
7
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8/22/39.
from the receivers, as well as any studio program, to various
points in the Interior Department building. At each of these
points any of the programme may be selected and the volame may be
adjusted to any desired level.
Jacks have been provided for patching where necessary but
the regular program circuits are normalled through. Microphones
are 44-B velocity and 50--^ inductor types. All the racks have
been finished in an attractive gray with chromium strips and fit¬
tings. Meters have illuminated faces. A volume indicator has
been provided for adjusting the program level on the busses. Pro¬
vision has been made for future expansion of the technical facili¬
ties.
XXXXXXXXXX
CUBAIJS APPRECIATE U. S. WEATHER BROADCASTS
Daily broadcasts respecting weather conditions in the
vicinity of the southern portion of the Florida, coast, made by
radio telephone from the Coast G-uard depot at Key West, are greatly
appreciated by the fleet of Cuban fishing boats which operate in
the general vicinity of that coast, according to a letter received
by the superintendent of light houses at Key West from Senor Gab¬
riel Palmer, President, Empresa de Pesca S. A., of Casa Blanca,
Havana, Cuba. Tiie fishermen from the Cuban port operate in a part
of the Gulf of Mexico to which the Key West weather broadcasts are
applicable, yet speak only Spanish. As a mark of interna, tional
goodwill the Coast Guard announcer delivers his messages first in
English and then in Spanish.
xxxxxxxxxxx
AS G0E33ELS SEES BROADCASTING DUTY
Broadcasting has the duty, wherever it may be required,
to start beating drum and fighting from the very beginning Dr.
Goebbels, Minister of Propaganda, deplared in Germany recently.
"Tp help in this is an honourable and political duty,
the Minister concluded. "Broadcasting must stand at its post
to fight a.gainst lies and misrepresentations, and is, next to
the Press, the sharpest weapon in the battle of our people. May
broadcasting always remain so, and may it continue in future to
broadcast the voice of the Fuhrer which awakened the nation, and
to-day calls the whole world br ck to reason.'"
XXXXXXXXX
8
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8/22/39
TRADE NOTES:::
Stations WIDD-MBF, Isle of Dreams Broadcasting Corpor¬
ation, of Miami, seek to install a new transmitter, directional
antenna and an increase in power from 1 to 5 kilowatts.
The Crosley Radio Corporation of Cincinnati has been
granted autnority to operate a 50-watt portable transmitter with
100 feet vertical antenna, on the frequency of 1360 kc in order to
make preliminary field survey of the proposed site of station
No purchase price was revealed but it is said the Cin¬
cinnati Times-Star paid Columbia in the neighborheed of $250,000
for Station WKRC in Cincinnati.
In the ''World Radio Markets" series issued by the Elec¬
trical Division of the Bureau of Foreign and Domestic Commerce,
John H. Payne, Chief, reports on Egypt, Martinique, Palestine, and
G-uatemala, have just been distributed.
Elliott roosevelt, son of President Roosevelt, whose
regular talks over WOR-Mutual three times weekly have been heard
only in the Sa.st and Texas, will be extended coast-tdrcoast Sep¬
tember 2. He is heard on Tuesday, Thursday and Saturda^y at 6:15p.m.
EST, over WOR, New York and 24 other Mutual Stations.
Two million eight hundred and eighty thousand sets were
sold in Germany during the past season, compared with 1,576,430, in
the year before.
The WLW transmitter at Cincinnaiti went off the air four
minutes^, one afternoon, recently, in an odd accident. Accorcij.ng to
Joseph i(^/hitehouse , WLW Engineer, a praying mantis crept into a
12,000-volt vilter condenser in the basement of the transmitter
building at Mason, Ohio, and caused a short circuit. A discharge
pf 220 microfarads of energy from the condenser produced a sound
like a thunderbolt.
XXXXXXXXXXXXXXX
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8/22/59
TO FIGHT BROADCAST RECORD LICENSING
The National Association of Perfoming Artists, through it
general counsel, Maurice J. Speiser, has served notice on the R. C.A
Manufacturing Company, Inc. , that it would "legally resist" the
company's propose.d plan to license its Victor and Bluebeard phono¬
graph records for radio broadcasting purposes.
At the same time the association, headed by Fred UVaring,
whose membership includes Paul Whiteman, A1 Jolson, Lawrence
Tlbbett, Bing Crosby, Rudy Vallee and Jascha Heifetz, warned ind¬
ividual radio stations tha.t the proposed R. C. A. plan had not been
authorized by the artists and that "use of any of these records
without a license duly obtained from us will be entirely at your
own risk. "
The sending of the letters by the association brought to s.
head a controversy that has existed between the performers and the
company since July 26, when Federal Judge Vincent L. Leibell handed
down a decision restraining Station WNEW from unregulated broad¬
casting of R C.A. phonograph records.
In his decision Judge Leibell ruled that the artist making
the record, by his artistic and intellectual performance, acquired
a common law right in the records, which he retained unless it was
Lransf erred by contract. The decision, however, did not give the
individual artist the right to license broadcasts without the per¬
mission of the manufacturer.
After the decision had been handed down, the R. C, A, Manu¬
facturing Company sent a, letter to radio stations announcing its
proposed plan to license all Victor and Bluebird records for broad¬
casting purposes, and saying that a percentage of the license fee
would be given to the artist whose records were used.
xxxxxxxxxxx
U.S. RECORD COKPORA.TION ELECTS OFFICERS
The United States Record Corporation of New York, has
selected the following officers:
Charles M. Heraenway, President; Eli E. Oberstein, Vice-
President; Lowell A. Mayberry, Treasurer; and Mortimer S, Gordon,
Secretary.
The Board of Directors consists of:
^ _ Charles M. Hemenway of Paine-Webber & Co.; Raymond S.
: ruitt, attorney for American Airlines; Sydney Newman, of Boston,
Mass. ; Wesley Simpson, President of Wesley Simpson, Inc. , textile
manufacturers; En E. Oberstein, formerly of R.C.A. Manufacturing
10
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Co. and Colambia Phonograph. Co,; Lowell A. Mayberry, of Palm Beach,
Florida and 3. VP, Quackenbush, President of the Qupckenbush Ware¬
houses, Inc, , Scranton, Pa,
The guiding lights in back of this company, which is t
closely affiliated with the Scranton Record Manufacturing Company,
according to a press statement, are the above men plus:
Allan H. Sturges, Preside it of the Pilgrim Trust Co, of
Boston; William L. Hutcheson, General President of the Carpenters*
Union; Dr, Noble, President of the First National Bank of Scranton,
?a, ; Weston Scranton, President of the Scranton Iron and Steel
Hills; and Louis Oppenheim, President of the Scranton Vivy Goods Co,
The United States Record Corporation, whose address is
1775 Broadway, New York City, is merchandising "Varsity,*' a
record and "Royale," a classical record at 75<2^ to ^1.25, The
initial catalog includes over 700 stands.rds, it wa.s said, and class¬
ical selections. Production and deliveries from the factory at
Scranton are being made at once, the press ste.tement concludes.
XXXXXXXXXX
CBS NEWS SERVICE NAZI- SOVIET TRI.DE PACT SCOOP
"An eight- day scoop in the world of Interna.tional events
wa,s scored by Albert L. Warner, CBS Washington correspondent, when
Germany and Soviet Russia signed the reciprocal tra.de agreement
Sunda.y, August 20, a Columbia press release sets forth." 1;' ’ ' g
"Speaking on Saturdsvy, August 12, in his regular series
''This Week in Washington,’’ heard from 6:30 to 6:45 p.m., Warner
revealed that a cable had been received from Europe which indi¬
cated that the trade agreement was about to be signed, " the CBS
release reads. "He added that this might have the effect of
nullifying the sense of unity which Great Britain and France and
Russia ha.d been showing in the past.
'Warner has been Washington correspondent for CBS since
early this year, coming to Columbia after many years in charge
of the Washington bureau of the New York 'Herald Tribune.' His
weekly series originates in WJSV, Washington. "
xxxxxxxxx
WING, DAYTON, JOINS NBC
Station WING, Dayton, Ohio, will join the National
Broadcasting Company on September 10, 1939, as a. supplementary
outlet, bringing the total number of NBC affiliates on that da,te
to 172_, according to an announcement by the company.
.WING, owned and operated by WSMK, Inc., operates on the
i.380 Kc channel nighttime power of 250 watts Network rate for
WING is $140 per evening hour.
XXXXXXXXX
" Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
I'
ili-Jin..,',!, ‘j’. ' ,1,
LEGAL DEPAh CV-.- o, i
““AUG 2S
II I ^ 1 w „/ .J
TiBl?|10[lll3^|l|2{d|4| 5)4
INDEX TO ISSUE OF AUGUST 25, 1939
I
■^Jneeler To Again Run For Senate. .
MoUosAer Tv'rote Chpplin- s First Re,dio Skit.
ILIA Neu Eork October Meet . . . .
3
Housing Census to Include Radio . 4
Gigli Gets Laugh, on Met Auditions . ... 4
Fatherly Beach Is New World-Wide Site . .... 4
Sees Government Remolded By Ra.dio.
5
Loud Front Porch Ra.dio Brings Cops . . 6
■J.S, Long Wave Stations Heard In Europe . . . 6
Capital Station Sued For ^150,000 Libel . 7 ^
Mysterious Ra.dio Hard Gets 240 Days . 7
Trode Notes . . . . 8
Station WCAI Changed Again; It * s WCAB Now . . 9
NBC Thanks Press For European Cooperation. . . . 9 ^
Claims Damages For Idea . ... ... 9 -
NBC Scores Another Beat On Russian Pact . .10
Crosley Buys Another Baseball Team . . . 10
Organization Of Manufacturers Parts Groups
Canadian Threatened With Libel .
N.Y. Store Uses Television .
No. 1152
11
11
11
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.'J
WHEELER TO AGAIN ELUN FOR SENATE
Wliile not making it clear whether he had his eye on either
the White House or the Vice-Presidential chair Senator Bui’ton K.
Wheeler of Montana in Los Angeles this week in dodging these
embarrassing questions tipped his hand to the extent of acknowl¬
edging that he proposed to run again for the Senate. This is of
interest to the radio industry because Senator Wheeler, whose
terra expires in 1941, as Cha.irman of the Senate Interstate Com¬
merce Committee is the No. 1 Radio Man at the Capitol. Not only
does this committee pass on all radio legislation but it acts
upon the confirmation of every member of the Federal Communica¬
tions Committee.
One of the leaders in the Supreme Court Fight Senator
Wheeler, a Progressive Democrat, clashed with President Roosevelu
out later, things were patched up to the extent that he might
run with Roosevelt on the Vice-Presidential ticket as he did with
•'•.he late Senator Bob LaFollette, of Wisconsin, who sought the
Progressive Presidential election back in 1924. Senator Wheeler,
on the other hand, has re')eat.edly been mentioned as a Presiden¬
tial candida.te for 1940. Having been the tail of one national
'oicket he is considered by many to be strong enough to head the
ticket this time.
l^Theeler) who is now 57 years old, has been in the Sen¬
ate ever since 1923. During the past session Senator Wheeler
was the sponsor of the so-called McNinch bill the object of whicL
was to "purge" the present V-ma.n Communications Commission,
whose members had been fighting among themselves, to a 3-man and
more easily controlled body. Cries of "dictatorship" were raised
and Senator Wheeler, apoarently never enthusiastic over it,
quietly shelved the legislation. He is believed likely not to
revive it next year on his own initiative .
Mr. Wheeler said in Los Angeles that while he o-oposed a
third term for President Roosevelt, he felt tha.t much of the
legislation adopted in the past seven years, such as the WPA,
PWA and aid to farmers, should be retained lest a "radical pa.rty
arise in 1944. "
XXXXXXXXXXX
2
u
8/25/39.
McCOSKER WROTE CHAPLIN'S FIRST RADIO SKIT
Apropos Charles Chaplin, one of the most fpmous stars of
the silent film, blossoming forth in his next picture with a speek-
ing part it is now revealed that the author of the redio skit in •
which "Charley" Chaplin first apneared was none other than Alfred J
hcCosker, now head of Station WOR in New York and President of the
Mutual Broadcasting System.
"I wrote the act,"' Mr. McCosker said when asked about it
by a person who w^s delving into happenings in the early days of
broadcasting . "It consisted of a series of introductory subjects
such as Charlie Chaplin saying, 'I will now play a violin' — '“I
will now play a cornet' — 'I will now play a. bass drum' saxa-
phone — banjo — piano, etc., and concluded his v/himsica.l perform¬
ance by simulating great enthusiasm in saying, ‘by golly, I think
I will play them all together. '
"At the time the act made radio history and Chaplin* s
appearance before the mike continued to be catalogued as a scoop
because he did not again go on the air for a period of five years,
I believe his second appearaxice w.^ s in connection with the Dodge
Bros, program -^hich used 'All America' a.s a studio; the ide^ being
to pick up celebrities at various points throughout the country."
X X X X X X X X X X X
RMA NEW YORK OCTOBER MEET
Meetings of the Ra.dio Manufacturers Association Board
of Directors and probably of the receiving set, tube, and other
divisions now are being planned during ^.lie first or second week
of October in New York City. Because of summer vacations and
other enga.gements, the PJIA Directors' and other Association meet¬
ings, tentatively scheduled in mid-September, have been deferred ‘ .
until early October.
The tr^de practice rules for the radio industry, promul¬
gated by the Federal Trade Commission last month, have developed
widespre'^d interest in ra.cij.o and also other industries, some of
which also have merchandising codes under the Commission's trade
practice procedure, it was said.
Ra.dio trade press commient on the industry's rules gener¬
ally has been favorable. Thus f-r there has been little rea.ction
indicated from manufacturers who are apparently aw^aiting the New
York fa.il meeting of the RMA to consider the new merchondAsing prac'-
tices laid down by the Commission as governing la.w. Sentiment of
manufacturers apparently is slow in cry stalizing, in view of the
Tegal problems and opinions required. Trade Commission officials
report considerable interest of radio dealers in the new rules,
nijimber od companies have sent copies of the rules to their dis¬
tributors.
xxxxxxxxx
- 3 -
8/25/39,
HOUSING CENSUS TO INCLUDE RADIO
New government statistics on radio ownership probably
wJ 11 be secured, through cooperation of the Census and the Radio
Manufacturers Association, National Broadcasters Association and
other industry organizations, although the decennial and general
population census of 1940 will be limited. The WlA has been ad¬
vised that radio ownership data may be secured under a new national
census of housing, authorized by the last Congress with an appropri¬
ation of $8,000,000.
The Federal Housing Census will include "utilities and
equipment" and will be a national, not a sampling census, with full
coverage of the items included. Arrangements ai^ being made by
IMA and NAB to secure as complete radio ownership statistics as
possible in the new census.
XXXXXXXXXXXX
GIGLI GETS LAUGH ON IvffiT AUDITIONS
An amusing trick Beniamino Gigli, famous Italian opera
singer, is said to have played on the Metropolitan Opera Company
last winter is revealed by Variety .
Just prior to his first Ford broadcast the tenor dis¬
guised himself and entered the Metropolitan Auditions of the Air
as a contestant. He sang before a committee composed of an NBC
representative, Pelletier's secretary and John Erskine. The singer
was informed that his voice needed more polishing and that he was
not ready for the Metropolitan.
The aria Gigli chose for his audition was the 'Dai
campi, da.i prati' , from 'Menstofele' , the role in which he made his
debut in the Metropolitan in 1921.
XXXXXXXXXXXX
HATHERLY BEACH IS NEW WORLD-WIDE SITE
The World-Wide Broadcasting Corporation has applied for
a construction permit for its short-wave station from Boston to a
new site known as Hatherly Beach-, near the town of Scituate, Mass,
-he call letters of the World-Wide short-wa.ve station have been
changed from W^XAL to WSLR.
XXXXXXXXXXX
- 4 -
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.. A ~
SEES GOVERMENT REMOLDED BY RADIO
The art of government is being remoLded by the powerful
tool put into its hand by radio broadcasting, Dr. J. H. Dellinger
of the National Bureau of Standards declared in a noteworthy address
au the Benjamin Franklin Institute in Philadelphia. The potential
control of human relations through entirely new possibilities of
mass psychology, he declared, pointing to the relation of this to
amplifier and the loudspeaker.
"Radio is a youniig science", Dr. Dellinger said, in address¬
ing his Philadelphia audience. "It got its start in life by borrow¬
ing heavily from its friends both the small change of Instruments
end techniques and the large bank credits of basic principles and
new discoveries. Has it discharged its early debt, and does it pay
its current bills for services rendered toda-y by its fellow sciences?
"Like man, no science liveth unto itself alone. Radio sci¬
ence makes constant use of the techniques and principles of other
sciences. To illustrate: the understanding and development of
antennaa depend on knowledge of physical optics and the theory of
wave radiation. The evolution of the electron tube employs the
sciences of electrostatics and electrodynamics. Radio devices in
general depend on the principles of alternating currents. Insight
into radio wave propagation comes through study of electrons, photo¬
ionization, and the composition of matter as it exists in the hi^
atmosphere ,
"But the borrowings of radio are far outweighed by the re-
jurns it is able to make ijot only to the sciences, but to the arts
.in d many other branches of human activity. Everyone knows how radio
contributes a useful tool or technique to many of the useful arts
and some of the fine arts. ”
Dr. Dellinger said the elimination of the problems of aud¬
itorium acoustics is remaking the arts of oratory and singing. To
the finest of the arts, music, new vistas are opening through new
types of musical instruments and extensions of ranges and controls,
all provided by radio techniques.
"Time measurement has been made so precise by radio devices
as to reveal an effect of the motion of the moon on the rate of ac¬
curate pendulum clocks and even to discover variations in the rate
of rotation of the earth on its axis. The art of the physician is
notably advanced by radio- frequency devices which nermit treatment
in the very interior of the tissues of the human body. Television
has become a reality through the development of photoelectric and
cathode-ray tubes, " the speaker continued.
"A single radio device, the electron tube, has grown so
great that politicians squabble over it. In recent patent litiga.-
tion, the Attorney General of the United States said this "is the
hej device which is essential to the operation of modern telephone
and telegraph wire networks; to radio transmission and reception;
to sound motion pictures, to the transmission and reception of
images by television or wire photography; to public address systems;
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8/16/39.
to r.iatlieiTuic medical treatment; and to electric power transnis : .1 on.
'iiere is no eabsti u^ite for it, and without it the modern electron-
.’.cs industry ccuLd not funcilon.
"The C. And P. Co. recently published the following state-
nont under the title, ’'The Voice of Stentor’ ;
If you. ?ve.re to make a telephone call arounc*. the ea.itli (as
has been done for experimental purposes) your voice would be ampli-
■*"16 d approximately 1 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 COO , 000 , 000 ,
000 . 000* 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 ,
000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 ,
OCO , 000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , OCC , 000 , coo , 000 coo , 000 ; 000 ,
000 , 000 , 000 , 000 , 000 , 000 , 000 , 000 , time s . '*
"Though you may read ti'iis statement you cun not remotely re-
.•i:.i?:e it, " Dr. Dellinger concluded. ''A billion dollars is such a.
.•ns+ sum as to be quite beyond our comprehension, yet see what a
juny part of this figure a billion is. I know of nothing na. math¬
ematics or physics more impressive."
X -X k X X X X X X X X
LOUD FRONT PORCH RADIO BPINC-S COPS
Philip M. Hamilton, of Silver Spring Md. , likes to sleep
on his front porch vdiile his radio plays full blast, especially at
But neighbor s don * t like it. Yesterd-.y they calledpclic
Officers Frank Lane and Paul Watkins responded.. They crept up and.
turned the music off.
In the quiet that came, Hamilton awoke. He asked where
she music had gone. Someone in the house sa..ld the police had come
and burned the button. Hamilton ca.lled the police to know why his
concert had been stopped. The police retu.r.nsd with a warrant.
Hamilton faces Magistrate Ralph Shure next Tuesdf^.y morn¬
ing in the first case under the month-old night anti-noise law.
The law provides fines up to i?50 .
XX X X X X X X X X
U. S. LONG- WA\^ STATIONS HS-RD IN EUROPE
Sone of our long-Y/ave stations, ncta.bly WOR, Newark,
WT_C, Hertford, WBZ, Boston, and. WCAU, Philad.elphia are reported as
being heard in Europe as far north as Ireland, at this season of the
} ear.
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which rerclied fr>.'m ?. window. ”
T}..e boy told Judt^e Hobart Nemnan that about two years
a>^o while he wa.s in the reap of the radio store, a, note was dropped
fi-um a. window v;hich ashedi
"Do you want to ma.lie some money? If so, yell Yes. "
He said he complied with insti-uctions and found a radio
in the trash. After disposing of this set, he said he handed part
of the money througli a v/indow to "the hand. "
During the tv^o-year period which the thefts occurred,
it w^as said that 57 radios and one vacuum cler;,ner r.'ere stolen.
Jones, a. porter at the store v;as given 20 days on each charge aftei'’
ne pleaded not guilty.
The case of his young accomplice will be heard in Juve.n~
lie Court.
XXXXXXXXXXX
TRADE NOTES
Ra.lph Pnomas, Montauk Highway, Quogue, N. Y. (Station
W2X0) has been granted special temporary authority to operate a
station of 1 kw. power for the purpo&e of cond.ucting experimental
conniunication with aircra.ft NX-i99b4 during proposed flight from
Los Angeles to New York and New York to Paris and return.
A plan for bringing new blood into the artist-management
field will be undertaken by G-eorge Engles, founder of the NBC Art¬
ists' Service. Various d.epartment managers in the NBC will recom¬
mend candidates from within the company for an intensive training
course in the management and sale of artist talent.
All MA members are invited to have representatives at¬
tend the next luncheon meeting of the Eastern Credit Committee on
Wednesday, August 50, at the Hotel New Yorker, New York City.
Baseball fans aJoroad will hp.^’'e a.n opportunity to follow
the World Series, play-by-play tlii.s year when the game broad.casts-
an exclusive Mutual network fea^ture - a.re also a.ired over the facil
ities of Station WIXAL in Boston on 11.79 and. 15.13 megacycles.
XXXXXXXX
- 9 -
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CAPITAL STATION
SUED FOR $150,000 LIBEL
Natie Brown, pugilist, went to lav; to establish once for
all that Tony G-alento really did knock him out when they fought in
Detroit last February 2. Natie asked the court to make the Amer¬
ican Broadcasting Co. , of Washington, D. C. and ';^'ony Wakeman, WOL
sports comnente^tcr, pay him $150,000 for telling the radio s-udi-
ence that he took a "dive."
Natie 's complaint for slander began with a. modesL ac¬
count of his career in the ring, pointing out that in his 233 bouts
he has been stretched on the canvas only five times. Ore of these
unhappy occasions was in the fourth round of his bout with G-alento.
Natie charged that Wakeman took advantage of this inci¬
dent to injure him in his "good name, fame, credit and profession¬
al business" by saying such tnings as "any person who would take a
dive for a bum like Tony Galento should go and drown himsei.f in
the middle of the ocean." Also, Natie comulained, Wakeman accused
him of taking the dive "for a valuable considera tion. ''
The sport commentator did not stop with that, said Nati.e,
but filled the air with "many other false and malicious statements'
about the Galento fight. Natie figured that the damage to his good
name, fame, etc., entitled him to a Judgnent for $75,000 a.nd that
he ought to have $75,000 more in the v;ay of punitive da.mages.
The radio station's point of view was expressed in a
final letter from its attorney, H. Russell Bishop. He said, in
substance, that he couldn’t see where a.nythirig Wakeman had said had
done Natie any harm and the radio company was not going to pay p.i'v
damages.
Wakeman said that he had not uttei’ed the statements at¬
tributed to him by Brovrn’ s suit, and that his editorializing on the
Brown- Galento fight had consisted of quoting from Detroit news¬
papers. He ar'.ded tha.t his script had been "carefully checked" by
WOL officials "in accordance with restrictions put dovm by the Fed¬
eral Communications Commission. "
X X X X X X X X X X X
MYSTERIOUS RADIO HAND GETS 240 DAYS
^ Accused of owning the hand which reached from a Washing¬
ton, D. C. radio store window to accept profits from sa.les of ’
$1,000 worth of stolen radios. Ivory M. Jones, colored, 20, wa-s
sentenced to 240 da.ys in ja.il on 12 petit larceny cha.rges.
A 16-year-old boy, who testified .in Police Court he h. d
.'..ver seen Jones, admitted selling "ouiie a few" ra.dios 'which r *
u-und in the trash behind George's Fndio Co., in northeast Wash.. ''
• on, c-iid turning over part of each sale to "a d^^rk- ski'aned hand
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which rerclied frv.im p. window. ''
Tl.e boy told Judt^e Hob?rt Ne^.mipn thrt p.bout two 3'’eprs
a‘ro while he v-p.s in the ref'-r of the redio store, n. noLe was dropped
fivm a window which ashedi
"Do you want to ma.ke some money? If so, yell Yes."
He said he complied with insti-uctions and found a. radio
in the trash. After disposing of this set, he said he handed part
of the money througii a window to "the hand. "
During the tv^o-year period which the thefts occurred,
it was said that 57 radios and one vacuum cleainer w'ere stolen.
Jones, a porter at the store was given 20 days on each charge aftei'-
ne pleaded not guilty.
The case of his young accomplice will be heard in Juven¬
ile Court.
X X X X X X X X X X X
TRADE NOTES
Ra.lph Thomas, Montauk Highway, Quogue, N. Y. (Station
W2X0) has been granted special temporary authority to operate a
station of 1 kw. power for the purpose of conducting experimental
conrnunication with aircraft NX-19 904 during proposed flight from
Los Angeles to New York and New York to Paris and return.
A plan for bringing new blood into the a.rtist-man^gement
field v.dll be undertaken by G-eorge Engles, founder of the NBC Art¬
ists' Service. Various department managers in the NBC will recom¬
mend candidates from within the company for an intensive training
course in the management and sale of artist talent.
All MA members are invited to have representatives at¬
tend the next luncheon meeting of the Eastern Credit Committee on
Wednesday, August 30, at the Hotel New Yorker, New York City.
Baseball fans abroad will have an opportunity to follow
the World Series, play-by-play this jeer when the game broadcasts-
an exclusive Mutual network fea.ture - a,re also a.ired over the fa oil
ities of Station WIXAL in Boston on 11.79 and 15.13 megacycles.
xxxxxxxx
- 9 ..
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STATION V/CAI CKANGED AOAIN; IT’ 3 ^-.CAB NOW
TliO call i.ctt.ers ji ColumBi aA <? short- wrve s^atj.on
WCaI (fonneriy Wd'/AU) have egain been changed. This time to
WCAB. '
The reason for the change is th^^-t the sound of '''WCAI”
when pronounced in certain foreign languages is toe close to that
of "WCAE, '' letters ali’ead^'' assigned to a sta.tion in a regular
b r 0 a do a s t b 8.n d ,
X X X X X X X X X X X
NBC THANKS PRESS FOR EUROPEAN COOPEPATION
The National Broadcasting Company took a full-page a.cu’er
tiseiuent in the August 26 issue of Editor and Publisher, thanking
press asao ciations and newspapers for their cooperation in covering
the European crisis. The text of the advertisement, signed by
Lenox Lohr, President of the NBC follows:
”To The Fourth Estate.' The NationaJ. Broadcasting Comp¬
any takes this op "ortun-ity, publicly, to express sincere thanks
to The Associated Press, Internr tional News Service and the United
Press. . . to the American Press genera lly . . and particula.rly
to those foreign correspondents whose brilliant eye-witness des¬
criptions and on-the-spot summaries, broadcast over NBC's coast-
to coast Networks have kept their fellow country -men accurately in-
formed about the rapidly shifting crisis overseas.
"With each succeeding day, the press of America has
added fresh laurels to the already high standa.rds of Journalism in
the United States through its im.partial, accurate and swift cover¬
age of events a.broad. By broad.casting news bulletins, interviews
with key statesmen, speeches of government leaders, and interpret¬
ive comments by neo^spaper correspondents, both from at home and
abroad, NBC has sought to m.aintain the highest tradition of the
American System of Broadcasting, "
X X X X X X X X X X X
CLAIMS DAMAGES FOR IDEA
Application will be ma.de in the N.Y. Supreme Court Mon¬
day (28) by Leo Linder for permission to examine Phillips Carlin,
Director of sustaining programs of the National Broadcasting Co. ,
before trie.l, in connection with a. breach of contract suit by
Linder against NBC.
Linder seeks $25,000, claiming breach cf an agreement
unereby NBC agreed to pay him for axi idea submitted in January,
-^'‘08, and later used, according to the complaAnt, in the 'Hall cf
rune Presentations' or 'American Portraits'.
X X X X X X X X X X
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IJBC SCORES ANOTHER BEAT ON K'JSSIAN PACT
The National Broadc-a sting Compa-py, which last yast year
claimed to have relayed the text of the Munich pact to America 46
rrinutes ahead of all radio opposition, scored another 40-minute
beat Monday night when it presented the first trans-Atlantic dis¬
cussion of the repoi'ted Russo-G-erman non-aggression treaty, an NBC
press release states, and continues:
"At 8:20 p.m., EDST, only an hour and a half after
rumors about the new pact began trickling over the cables, William
Hillman, International News Service Correspondent in London, and Mr*
Baidihage, NBC*3 Washington Commentator, were on the air in a two-
v;ay discussion of the treaty.
"Europeans who 'tu’ned in on NBC' s short v/ave programs
Monday night heard details of the proposed Russo-German non¬
aggression pact negotiations about five hours before their own
stations carried the news, as far as officials in the Na/bj.onal
Broadcasting Company's International Division could learn.
"Although NBC carried a trans- Atlantic discussion on the
treaty at 8:20 p.m., EDST, London stations monitored at midnigho
Bale no mention of it while Berlin's comment.'' tors were still talking
about the Russo-Gennan trade pact and nothing more a.t 2:30 a.m.
uOday. The only change in the regular routine of short wave broad¬
casts occurred at Moscow where a four-hour a.nti-Nazi program was
replaced by musical selections. "
Mr. Baukhage flew last Thursdriy on the Dixie Clipper to
join the National Broadcasting Company's foreign correspondents
Corps covering the great E.uropean crisis, These included Fred
Sate in London; Max Jorda,n, central continental representative;
Paul Archinard in Paris, and John Gunther wio is at present cover¬
ing the sma.ll Baltic nations.
XXXXXXXXXXXX
CROSLEY BUYS ANOTHER BASEBALL TEAL!
Passing out of the hands of one radio station owner into
the hands of another, the Birmingham, Alabama. Barons, baseball
team in the Southern League, was sold the past week by Ed Norton,
President of Station WAPI, Biminghara, to the Cincinnati Reds, of
which Powel Crosley, Jr , in chief owner. The close alliance be¬
tween radio and baseball is thus maintained.
Crosley made a visit to Birmingham severa.l weeks ago, a.t
wnich time he became interested in the Birmingham ball club.
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8/25/59
OFOtANIZATICN of manur-cturers parts groups
Eight and possibly ten groups of RI^IA parts manuiaotururs
are being organized by Ohaimian H. E. Osmun of the Assciation'^ s
Parts and Accessory Division for consider? tion of the special prob¬
lems of the different groups. Early meeti.ngs of all. of the grouos
are planned to map out studies and action in connection with the
interests of each group.
The group organization is designed to fill a gap which . '
lias existed, in the opinion of many members, for several years, and
to bring, executives and also other personnel of each group into
closer contact for constructive action on matters of special con-
ceiTi to ea.ch group.
XXXXXXXXX
CANADIAI^^ THRSATElfED WITH LIBEL
Threat of libel action by the Shell Oil Co. against sta¬
tion CKAC, Montreal on account of an attack specifically naming the
company in a. talk sponsored by the Retail Merchants Assn. , has again
brought question of liability of broadcasters into the open.
Shell Gil la.st week agreed, to withdraw charges against
station CKAC a.fter being given free time in which to correct the
impression given by the Retail Merchants, who periodic-lly attack
various large corporation policies as inimical to the interests of
French- Canadians .
Premier Duplessis, who is also Attorney General for the
Province of Quebec, has ruled that radio stations are not respon¬
sible for opinions expressed by time-buyers and has stated that
sponsors only are liable in any damage action arising from a broad,
cast .
X X X X X X X X X X
x\u Y. STORE USES TELEVISION
last week
a fashion
public on
Television as a means of merchandising was demonstrated
at Bloomingda.le Brothers, Inc. , in N. Y. , in a. p')review of
and household apoliance show, which will be open to the
a. regular schedule every day.
Motion picture films prepared by Caravel Studios v/ere
used in part of the demonstration. They showed manikins we^=ring t]
latest styles in dressed and costume .jewelry. It was pointed out
that a. continuous performance was possible through the use of film
ihe household a.pplia.nces were seen operated by members of the sal''
staff. The installation was made by the American Television Co.
XXXXXXXXX
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Heinl Radio Business Letter
2400 OVLIFORNIA STREET
WASHINGTON, D. C.
t _ ^L£u;>L Otr^ARTlViELMT
ills il U ® l£ |!
AUG 3 0 1939 i!
I O, rx, ;
F ^4
INDEX TO ISSUE OF AUGUST 29, 1939
McNinch May Give Secret Report To F. D. R . 2
"Million Dollar Market" Series Started By U. S . 3
Labor Board Orders Election In Pilot Plant .
G. E. Given Largest Peace-Time Radio Order .
Communications Business Profits From Crisis ....
Italy’s Radio University Holds Exams .
Radio Exports Rise And Fall During July .
Trade Notes .
12,600,000 Ra.dio Listeners in Germany .
N. Y. -Cuba Exchange Planned .
Program Service Blamed For Slow Television Sales
NBC Starts Artist Managers' School .
1,000 Job Orders Traced To Radio Program .
NAB Confers With Pronograph Companies . 10
No. 1153
LO tDtD {> COCO GiCrsOl
fl ..TVtiaH
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IvIcIIINCH MY GIVE SECRET REPORT TO F. D. R.
Frank R. McYincIi, vi-hose resignation as Cliairinsn or the
Federal Gommnnications Coimiiission becomes effective this week, is
undei'SLood to be drs fting a report on the FCC foi- the private in¬
formation of President Roosevelt and probably his successor, James
L. ny.
FO.y will take his oath of office on Friday but probably
will not actually begin work at the TTpyj until a^frer Labor Day,
•diile his designation as Chairman of the FCC has not yet been made
ly the President, it is expected to be announced at the Vifhite House
boiore Fly assumes the helm of the Commission.’
Reports were current in the Capital until this week that
YcI'Iinch might issue a blast at his dissenting collea.gucs upon for¬
mally quitting the Commission! ’vas due to make ..is fina.l call
Lo bid his foimer aides goodby early this week!
Apparently, hox-ever, the retiring chairman has been ad¬
vised 01 crdeied to withhold his speech, publicly at least, and to
pour it out instead in a not-to-be-madp-public report to the Pres¬
ident;
The report, it is expected, will conta.in a detailed alibi
a.s to why the "purge" failed, to accomplish the herc.J.ded "house clearU’
ing" of the FCC last fp,ll.' No doubt it will lay much of the blame
on Commissioners T.A.M. Craven and George Henry Payne for their re¬
fusal to go along with the chairman'.
Meanwhile, the radio industry is looking hopeful .y to the
new chainnan for assurances that the Commission vdll settle dowi to
a stable administration of the Communications Act, with more atten-
ti.on being given to the industry's problems than to publicity fan¬
fare for individual comm.issioners !
'Jhile supported by Thomas G. Corcoran end- the ard.ent New
Dealers and although unfamiliar with the more
i*adio administration, Fly is ^^dmittedD.y young
to make an able chaiiTnan, observe.rs Fagree, if
to the grindstone rather than up scenting for
X X X X X X X X X X
intricate questions of
and brilliant enough
he puts his nose down
publicity .
2
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'’i’i/lILIJON DOLLAR MARKET" SERIES STARTED BY U.S.
A new series of mouograpbs entitled "Million Dollar
Electrical Export Markets" crmmences with the Aug. 15 issue of
"Electrical and Radio World Trade News," published by the elec¬
trical Conuiiission of the U.S. Bureau of Foreign and Domegtic
Commerce. More than a score of countries, to which the United
States has sold in excess of 000, 000 worth of electrical equip¬
ment dui’ing one of the years 1936, 1937, and 1938, will be reviewed.
The purpose of these studies is to outline the statis¬
tical and ecommic factors affecting the American Electrical trade
in our most important foreign markets. An account is given of the
electrical products, the export value of w/hich has topoed rhe
!^1Q0,000 mark in any one of the three years. This will indica.te
to the American exporter which classes of merchandise enjoy the
best sales, Srfdj further, the trend of sales rjotentialities of in¬
dividual items in the various foreign fields.
The United Kingdom is the subject of the initial mono¬
graph. A different million-dollar market will oe reviewed in each
subsequent issue of this publication.
"The United Kingdom has erected no tr-de barriers to
hinder the American exporter," the first article states. "On the
contrary, through the medium of the present Anglo-Anerican Trade
agreement, more favorable trade relations h^ve been made possible."
The following table shows the relative values of the
most important clast^es of radio exports (limited to those which
have attained a value of $100,000 or more during any of the three
years shown) :
(Value in Thousands of Dolla.rs)
Radio Receiving Sets
1,474 «
1,159 <
738
Radio Receiving Tubes
355 '
S06 »
140
Receiving Set Components
983 «
1,158 «
857
Transmitters, Speakers and
Other Rec. Set Accessories
89 I
89 t
I
183 1
116
"The major decline has occurred in radio sets and parts,
the largest class of our electrical exoort tr?de,"the article con¬
tinues. "The year 1936 was a, turning-point in the British market.
Following the all-time record volume of U.S. radio exoort sales to
rhe United Kingdom during t-u'’t year, they took a decidedly downward,
course. Several factors still in oper^-^tion brought about this
change. The most important single deterrent has been the action of
the British r^- dio manufacturers, who have ^^dopted a policy which
places the imported product at a decided disa'dvantaige . Then too,
tne type of radio (predominantly midget sizes) which may be sold by
.'umerican manufacturers now appeals less to the British public tli^'-n
^f’ormerly did. There is now a growing tendency to demand a more
t'fective product that will offer much more extensive and better
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broadcast reception than can be obtained vlth the type of sets
which can be currently imported under existing restrictions. ihie
aL'ove shouic not be construed as an Indication of increased demand
lor radios in the United Kingdom. It merely means that those v'ho
a"e In the market for seta are turning from conrapratively cheap
midget sets to the more expensive and more efficient quality prod¬
ucts.
XXXXXXXXXXX
LABOR BOARD ORDEFS ELECTION IN PILOT PLANT
The Labor Relations Board ruled last week that the Pilot
Radio Corpor.'’ tion of New York City, had violated the Wagner Act by
"interfering'* with the self-organization of its employes.
The board said that the corporation imposed "discrimina¬
tory conditions of employment" to encourage membership in the A.F.
of L. Electrical Workers Union and discouraged, membership in
C.I.O.'s rival electrical workers union.
At the same time the board directed an election, on a
date to be set in the future, to give the corporation' s workers an
opportunity to determine whether they want to be represented by the
United ■'^lectiical, Radio and Machine Workers of America (C.I.O.) or
the Radio Division of the International Brotherhood of Electrical
Workers (A.F. of L. ) , or byneither.
The board said that the corporation recognized the A. F.
of L. union as exclusive representative of the employes "completely
ignoring" claims of the C. I. 0, union.
The board also said that the corporation offered its em--
ployes a wage increase and other benefits "on condition that they
would agree to Join the brotherhood. "
XXXXXXXXXX
G. E. GIVEN LARGEST PEACE- TME RADIO ORDER
The largest order for radio equipment in peace-time his¬
tory wa.s placed by the War Department with the General Electric
Company last week. The amount was $8, 678, 852, all for transmittinj
equipment and accessories for the Armj/ Air Corps.
The award v/a s in tv-o contracts, the first being for
equipment for new heavy and lij^t bombardment airplanes and the sec¬
ond for equipment for observation and short range liason airplanes.
XXXXXXXXXX
4
8/29/39
OU?'Ii^/3IGATIOI^S BUSINESS PROFITS FROM CRISTS
As a result of the Europesn crisis, all types of quick
communication mith European nations, the trans-Atlantic tele¬
phone, radio and cables, have carried substantially increased
loads, the communications companies repoi'bed this week, accord-
inc^ to the N.. Y. Tjmes.
The American Telephone and Telegra,ph Company reported
that its five transatlantic telephone circuits were handling far
more than normal volume of traffic. On Friday, it was said, 312
oal].s were handled, an all-time record for a business day.
American Government calls have priority over all other
transatlantic telephone messages, it i''as explained. However,
the company said, its facilities were more than equal to meeting,
the ore sent demand.
Until yesterda.y there was no interruotion in trans-
At?. antic telephone service. The censorship imposed oy the French.
Government, howover, b.roke this record. Only diplomatic calls
are Deing accented by France. So far no other nation has followed
the French lead.
The only other interruptionin service has resulted from
the refusal of some large transatla.ntic liners owned by the pow¬
ers involved in the critsis to accept radio telephone calls from
Ajnerican shore stations. All shore-to-ship calls are being ac¬
cepted subject to delay.
French censorship is having an effect on all forms -oT'
commiunication to that nation Cable and radio companies explai-ned
that as a result, messages to and from France were being del3.yed.
Elsewliere in Europe the ways of communication were open.
The Western Union Compa.ny which owns and operates ten
cables Detween the United States and^ Europe, reoorted a '‘very
large" increase in the volume of press messages and a "substan¬
tial" increase in other types of messages. This company, as well
as the telephone company, reported the ''.volujiie of business higher
than at the time of the Munich crisis a. year ago.
Of the ten Western Union cables eight go via Ireland
to England and thence to the Continent. The other- two go to the
Azores. From there one runs under the North Sea to Germany and
the other to Spain and onto Italy.
The Commercial Cable Compan.y, operators of six trans-
atl.antic cables, reported a "quite substantial" increase in busi¬
ness. Its cables run to England, via Ireland and to the Continent
via the Azores.
XX>GCXXXXXXXXXXX
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, 4 ^
y Radio Communications reported a 40 per cent j.ncreaoe
in i'uaness in the lest tv'o weeks. The jnereas*^; it was said,
WPS in mess-tioe from Rui cpe than in messa^-. s from the
Jnjted States. Mackay Radio reported a, volume increase since
the crisis of aboub 5 per cent.
X X X X X X X X X
ITALY'S R4DTC UNIVERSITY HOLDS EXAiiS
The Itrlia.n Radio University, which was instituted last
November ?dth the object of "spreading the Italian language and
culture throughout the countries of the world by means of broad¬
casting '* held its final examinations recently. The paper was
dictated before the microphone, and the candidates' ansv.^ers had
to be sent by post to the University Direcior. Candidates talk¬
ing part in the course who entered for the examination numbered
26+650 and were divided into fourteen groups, corre soonding to the
principal langua.ges spoken.
The first in each group is to receive a. fortnight's
free travel in Italy, and the next six are to receive a-v^ards of
valuable works on art by well-known writers. Those who achieve
a staisfactory standard of work will be given a certificate, and
if they should desire to visit Ita.ly, will receive, in addition,
a card entitling them to a.dmission to all Italy's art institu¬
tions at half-Tprice.
X X X X X X X X X X
RADIO EXPORTS RISE AND FALL DURINO JULY
Exports of electrica.l equipment from the United States
during July of this yea.r were valued at $9,511,961, a.n increa.se
of v209,456, or 2.3 percent, compared with the June valuation
of 4p9,302,5C5, according to the Electrical Division, Bureau of
Foreign a,rid Domestic Commerce, Deoa.rtment of Commerce.
Although exports of transmitting sets, tubes and o^rts
showed a relatively large increase from $170,562 in June to^
$280,847 in Jyly, all other clas'es of radio apparatus fell to
lo’)!rer^ levels during the month under review. By far the lowest
montnly volume of radio receiving sets was sold, the total am¬
ounting to $618,890 as a,gainst the ■orecedJ.ng month's ‘igure of
$792,729.
, A Shipments of radio receiving tubes declined from $277,
$245,065; of receiving set components from $466,591 to
$430,598; of loud speakers from $73,170 to $69,537; and of other
receiving set accessories from $52,637 dovin to $41,727.
X xxxxx X X X X X }: X X
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HJ '
TRADE NOTES
/
/
Tne name of Haiumerstein , one of the most illustrious of
ihe i^raerlcan theater, was linked with television vidth the announce'
r.ont Friday that Restin'’ Id Hammer stein h'^d joined the ranks of NRC
television" nroducers at Radio City. A member of the thii'd yene'-.n-
tion of the' famous Broadway dynasty founded by Oscar Hammerstein,
the new NBC television producer soon rhjJ. oe assigned to give the
legendary Hammerstein style to some musical pieces to be telecast
this fall over station W2XBS. His theatrical c-reer began off? cial
he says, when he became a sort of "third assistant stage m-^nager’^
arthur HaiimersLein- s Victoria Theater, in Times Square.
.ti
The fol
sho'"s to the air a
grams 1 Chrysler,
Chesebrough Manufa
Gr^'wcrs Exchange.
lovjing CBS sponsors have either returned their
fter the summer hiatus or are presenting new pro-
Ford; Colg”^ te-PaJ.molive-Peet , Proctor Sc G-ambie,
cturing Co., General Foods, and California. Fivit
Jay Hormel, President of George A. Kormel &■ Company, wdll
take the entire cast of his Columbia network program, to Austin, -Minn
in September for a, specia.l broadcast from the Hor.mel factory. He
has hired a private car, leaving Hollywood September 1, carrying •
with it the stars of his "It Happened in Holl3'’\-ood" programs.
James H. Hunter h^s been appointed Vice-President in
Charge of Production of the olumbia Recording Corporation, at
Brldgepoi't , Connecticut, it ha.s been announced by Edv/ard Waller-
stein- President. Mr. ilunter’ s new duties will comprise the super¬
vision of all manufacturing operations entering; into uhe production
of Columbia, Brunswick, and Vocalion records. Duriiig the past four’--
teen j'ears, Mr. Hunter has achieved interna.tional repute in the
field of plastics and electro-chemistry. He has been widely known
not only as consulting engineer in this subj-ct, but also for his
significant contributions in the field, of record research and prod¬
uction during hi.s previous affiliation with the RCA Manufaicturing
Corporation, formerly the Victor Talking Machine Company.
X X X X X X X X X X
7
8/29/59
18,600,000 RADIO LISTEx\^£RS IN lERIiliUJY
'i'ne totp.l number of rpdio listeners in Germany has
increased to 12,591,706 during the first six months of 1938,
according to the Geman Broadcasting Company.
In Juiie JO, 730 listeners jvere added. In the 'I’otal
number, 827,060 pecmle of need^/ means are given sei-vice fi-ee of
chai’ge, the report stated.
XXXXXXXX
N. Y. CUBA EXCHANGE PT,ANI'rED
A license is understood to have been grantea, although
the appropriate decree has nbt yet apreared in the 0fficta.i '
GazetuS; for the establishment of theCuba Transatlantic Radio ■■
ConDoration of a re-braodca sting service for the ura.nsmitUil of
pr./grams fro.m Santiago de Cuba to Near York a-nd vice versa, accord¬
ing to the Arne i'-i can Commercial Attache, H.-^vanav.
It is understood that equipment is being set up for the
two-v.'a.y tra.nsmissi on of program material and that there is a
possibility that similar stat ioins will be established in other
interior points of the Island.
XXXXXXXXXX
TRADE NOTE
The coverage of Station ?/3LR, Boston short-wave out¬
let, is being enlarged through the establishment of one broad¬
casting antenna.e at an improved location, just a few hundred
yards from the shores of the Atlantic Ocean, according to V/altsr
S. Lemmon, President of the World-Wide Broadcasting Foundation.
This "all water" path for the radio waves for maximum
efficiency should give considerably improved reception in all
parts of Europe and ho tin America, Lemmon said. Diamond antennas
of the latest type are being installed to diredt the energy of
YjSLR and iis associates transmitter to various are-s around the
like giant searchli'ght beams. During the present monoh
WSLR studios at the University CJu.b are also being enlarged.
XXXXXXXXXX
8
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8/29/39
PR0GR41-I SERVICE BLAIJED FOR SLOW TELEVISION SALES
Aocoi'ding to the New York Times at the end of four
months of regular telecasting in New York it is estimated that
there are about 500 receiving sets “on the air. “ Failure of the
tele-radios to move in quantities is attributed by Radio Retailing
to Inadequate program service.
Programs too are the life-blood of radio set sales, and
the radio industiv is warned that program consciousness often will
lead the public to buy radios when even gadgets, price and other
features fail as stimulants to sales.
XXXXXXXXXX
NBC STARTS ARTIST MANAGERS SCHOOL
A comprehensive plan for filling in the rapidly- deplet¬
ing ranks in the artist-management field was announced last week
by George Engles, Vice-President of NBC, Managing Director of NBC’s
Artists Service and President of Civic Concerts Service.
According to the plan, NBC will set up an intensive
training course for promising young men now emploj/ed by the Com¬
pany in various capacities. Ten candidates will be selected from
recommendations by department heads and from written question¬
naires submitted by those seeking appointments. All this is in
line with NBC's established policy of providing company personnel
with opportunity for advancement, Mr. Engles pointed out.
He stated that the reason behind the creation of what
amounts to the first school for artist managers and showmen is the
steady depletion in the artist-management ranks. There have been
surprisingly few increases or replacements in the field for more
than ten years, and if this condition persists, Mr. Engles fears
that a serious shortage of artist-managers will develop.
XXX XXX XXX
1,000 JOB ORDERS TRACED TO MDIO PRCGRALI
The National Broadcasting Company, through a special
radio series, has been able to bring unemployed and jobs to¬
gether in many cities, according to an NBC report. Stat ion WRC,
Washington, has been unusually successful in this reject.
During A ril, 1938, ‘Gordon Hlttenmark, of the NBC Staff
in Washington, D. G. , started a morning program planned to assist
unemployed men and women find suitable jobs. The program, broa>.d“-
cast locally by Station WRC in cooperation with the District of
Col^ombla Employment Center, consists of intervlevrs with appli¬
cants for employment who explain their training, experience a.nd
XXXXXXXXXX
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ciUc-1.1.fic,-\tions for ? pprticulrr type of work. Each person Inter--
viewed is selected from the files of the Employment Center.
3y the end of June, J04 men and women h-^-d been inter¬
viewed over Station WRC. During the same period the Ernployraent
Center received more than 1,000 orcers which could be traced
directly to this radio pro.srani. During the month of June the
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ner cent over June, 1938.
X X X X X X X X
NAB CONFERS MTK PHONOGRAPH COMPAIilES
/
After an all-dC'y conference about licenses last ^^'-eek
wibh representatives of th'^ee leading -ohonograph record, companiec,
a special National Association of Broadcasters committee issued
the following statement:
"A committee of the industry met with representatives
of the Columbia Recording Corporation, Deccs Records and the RCA
Manufacturing Company, and discussed at length all phasesof the
question. The RCA Manufacturing Company is the only company
which as yet has formulated its policy and. has sent out a pro¬
posed agreement. The committee requested that the arugments ad¬
vanced by the committee be given thoughtful consideration and that
the effective date for the contract be postponec . The RCA Manu¬
facturing Company agreed to give considera.tion tro this request
and to advise NAB Headquarters of its decision at an early date.
The Columbia Recording Corporation and Decca Records have not as
yet formulated any policy and agreed to notify the NAB as soon e,s
any policy is formulated. A full report iuIj. be made to the Dir¬
ectors and members at the convention in Chicago."
Broadcasters present were John Elmer, WCEM, Baltimore;
John Shepard, 3rd, The Yankee Netv/ork; Alexander Dannenbaum, Jr.,
WDAS, Philadelphis ; Walter Damm, WTTviJ, Milwaukee; Clair McCollough
WGAL, Lancaster; William S. Pote, Wl^rex, Boston, Roger W. Clipp,
WEIL, Philadelphia The NAB was represented b.y Neville Miller a.nd
Edwin M. Spense .
The executive committee met a.ll d-^^y Tuesda.y in New
York, discussing code, copyright and other problems, in nreparin
a report for the Board of Directors which is to meet September 1
in the Palmer House, Chicago. The special copyright convention
T/ill be held in the same hotel September 15.
The executive Committee met with the copyright negoti¬
ating committee Wednesday, and after going over all phases of the
problem asit now stands, directed Sydney Kaye, special counsel,
to present to the Board on September 13 a. plan for creadion of a.
supply of music other than ASCAP numbers. /
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Heinl Radio Business Letter
2400 CALIFOlWIA STREET
WASHINGTON, D. C.
^ l£ y \l/
1339^
I ^
INDEX TO ISSIE OF SEPTEMBER 1, 1939.
Television Seen As Aid In Future Warfare . 2
Only a War Would Determine U.S. Radio Control . 4 '
Court Revises Sys'-em Of Reviewing FCC Appeals . 5
Short-Waves Playing Vital Role In Crisis . . . 6
Reich Adopts Rules To Nationalize Ra.dio . 6
U.S. Ready to Form War-Time Radio Rules . . S'/
Miller Praises Radio News Reporting . 8
Fly Alights Lightly At First Press Conference . 9
Effect Of Outbreak On U. S. Broadcasts Awaited . 10
Air Line Equips Planes With Portables . 11
CBS To Ask Permits For Two New Auditoriums . 12
Radio Traffic Boosted By Crisis . 12
No. 1154
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AS
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'<f
September 1, 1939
TELEVISION SEEN AS AID IN FJTURE WAPJ’ARE
While it is doubtful that television could be put to
extensive prectical use in the event of an immediate European
war, it doubtless will be a valuable military aid in the wars of
the future. American militc-ry experts already are busy’, study¬
ing its possible applications.
No particular attention ha.s been paid by American manu^.-
facturere to date to the military possibilities of television,
but this stage in the development im questionably will be expedited
by any major European conflict.
"Although considerable technical progress is to be ex¬
pected under normal conditions during the next few years, "accord- -
ing to Col. G-. L. Van Deusen, of the U. 3. Signal Corps, "it is
unlikely that any serious attempt will be made to adapt televiaoii
to military use until government contracts are placed with the
manufacturers. "
Taking a glance at the future, Colonel Van Deusen ob¬
served that several military apnlications of television suggest
themselves, among which are the following:
" (1) For observation within the combat zone, to sup¬
plement the reports of military observers and the information con¬
veyed by still and motion pictures. Commanders and staff officers
like other persons, have an instinctive desire to actual'ty see '
events of interest or importance while these events are in prog¬
ress, even though other efficient agencies for recording and com¬
municating the details of the event are availa„ble A television
transmitter mounted in an airplane may enable the commanding
general, while seated at his headquarters, to view troop move¬
ments, details of actual combat and other important features along
the front or within the enemy lines, (2) For adjustment of ar¬
tillery fire, the camera and transmitting equipment being installe
either in an aircraft or in a ground O.P. (3) To aid in the
ra.dio control of robot aircraft, aerial bombs or sea.cra.ft, the '
target or objective being made visible to the controlling station
by television apparatus mounted in the directed craft. (4) For
mass propaganda, or training witnin the zone of the interior. The
educationa.l use now made of motion pictures can be reinforced by
the more intimate appeail to the acUdience which is possible with
television .
" For military' use, as in commercial practice, the tele¬
vision signal may be transmitted over specially* de a gned wire
2
■'i • ■ r £ ■ r
9/1/39
ci'.rcjulty or 'oy radio. By the uae of special conductors, repeaters,
rnd associated equipment on wire D.ines, television trrns’iissi ' n
is possible over greater distances than car be covered over a
•single poino-to-poiirt radio chennol. T'!-ie necessarp'' ecu.ipment for
either wire or radio transmission vdll oe complicated and its utic
in the combat zone will present many problems.
"If a. permaoent record of thie televised information is
desired, it may be recorded on notion-picture film at the reoeiv-
j.ng station.
"The transmission of televised scenes from a military
airplane is possible, although no satisfactory apparatus has been
produced for this purpose up to the present by American raanafactur-
ers. The space and weight limitations on such an installation
should not be serious, once the problem of securing a well-defined
image is solved.
"Until the present frequency band assigned to television
can be materially enlarged, the number of channels available in
any area will be .small. Under present standards (441 scanning
lines) the televised scene is resolved into approximately 260,000
picture elements, each of these elements being scanned 30 times
per second. These standards have been adopted to insure suffi¬
cient detail without objectionable flicker. With single side
band ti-ansraission, it does not seam that a television channel can
be reduced to less than 5 megacycles if interference from adjacent
channels is to be avoided.
"There is no suitable pla.ce for these television chan¬
nels in the ra.dio spectrum except at the ultra high frequency and,
prefera.bly above 40 megacycles. The upper frequency limit prac-
ticaole for television is now around lib megacycles but vdll
undoubtedly be extended with the development of vacuum tubes ca¬
pable of high power output at greater frequencies.
"Any military characteristics formulated in the present
•1.. te of t-elevision development must necessarily be of a general
.i-re. The Allowing characteristics appear desrable a.s a goad
X _ special development!
" (1) The equipment should be as rugged and portable as
our present field radio sets.
" (2) For insta -lation in any type of aircraft or
vehicle the weight and bulk, of the equipment should be within the
limits imposed by the type of transport.
" (3) The power requirements should be such as can be
met by portable self-contained generator units.
" (4) The transmission ra.nge should be sufficient for
the image to be viewed directly by the party served, e.g. , by the
iring unit in the case of artillery adjustment or by the com¬
mander of the tacticad unit for which the airplane or ground sta¬
tion is observin'g.
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(5) The image definition •-'t the receiver should be
Droxi.Tif tely es go d as can be obtained by photographic means
anider the Scime conditions.
(6) Tne equipment should be
stallation and satisfactory oneration by
c.'^pable of prompt in-
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X X X X X X X X X
ONLY A WAR WOULD DETERMINE U.S. lUDIO CONTROL
Nothing short of a World War in v/hich the United States
would become embroiled would put to a severe test the a.pplicatior.
of the "emergency
'*■“ the "emergency" clause of the Communications Act with resoec
to American broadcasting,
ities
according to informed, government auti
^/hile the Federal Communications Commission, the State
Department, the War Department, and. other agencies have considere
the possibility of governmental control of American radio station
during a w-r, authorities agree that the issue will be avoided sc
long as possible'.
The Communications Act gives the President far-reaching
powers in the event of war or even a national em.ergency, with re-
soect to radio broadcasting, but it is considered d-oubtful in
Washington that such authority will be used except as a last re¬
sort.’
The first class of radio stations to feel the hand of
governmental control following the outbreak of actual hostilities
abroad doubtless would be the American short-wF'Ve stations. A
form of Censorship similar to that proposed in the now-suspended
international rniles probably would be invoked to prevent any U.S.
sta.Gion from endangering American neutrality.
As these short-wave broadca.sts reach an international
c il-ience, they are considered -notentially dangerous by iimeric-n
diplomats.
Public pressure on the FCC to crack down on stations
Which ca.rry pro-Hitler or oro-Eritish b.roadcasts a.lready has been
^'elt, and it would be intensified as the European conflict became
..'lore serious. However, ''t present while FCC officials are keepin
more or less check on the activities of American radio stations
there has teen no disposition to curt-il them.
If and when a war does occur, broadcasters unquestion¬
ably will have to watch their step, but they probably will escape
the full force of censorship or punishment so long a.s they use
discretion and avoid taking sides too obviously.
X X X X X X X X X
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9/1/39
COURT REVISES SYSTEM OF REVIEWING FCC APPEALS
A new system for reviewing the acts of the Federal Com¬
munications Commission and other U S. agencies was placed in oper¬
ation Friday by the District Court of Apoeals,
The ne?/ system was designed to bring the practice of the
Court of Appeals into harmony with the system of civil procedure
promulgrted la.st year for all Federal courts.
The court ordered that appeals from FCC decisions be
filed ?:ithin 20 d.«ys after effective date of decisions and gave
the FCC 30 da,ys after an appeal is filed to present the records of
the case. Should the commission fail to include matter believed
by the complaining party to be important, it was pr^ovided that the
party might remedy’’ the omission or request the court to do so.
The court cautioned lawyers to confine FCC appeals to
disputed points, giving as an example the proper procedure in an
apueal involving the financial standing of an applicant for a radio
license. "Matter relating to station interference, or to the type
of da.ily programs," said the court, "woul^ not be essential to the
question involved, and should be omitted.
The court in past opinions has thrust aside ponderous
records and arguments when it found these to be on points not dir¬
ectly at issue before it.
The old rule of sending a "mandate" to the FCC after the
court a.cts in a case will be abolished instead, the FCC will re¬
ceive a. simple certified copy of the court* s opinion and judgment
order.
The genera.l mile for appeals from administrative bodies
ordered such cases placed, on the court's special calendar. The
coi; -. t, acted to preserve the rights of persons who v:ished to inter-
- - in such cases but were not given by law the right to do sc.
-1. u interveners were ordered permitted to ore sent their positions
.b.in 10 days a.fter the filing of the appeal in which they were
x.-ferested.
To save the appellate justices from having to read, com¬
plete records , when cases before them involve only part of a
record, it wa.s provided that disputing parties may designate what
part of a. record shall be printed for study by the court. This
was expected to red.uce the expense of appeals.
XXXXXXXXXX
The Columbia Broadcatsting System has announced that the
closing time has been extended until 2 a.m. for the basic netwe:
and coast ststions. This new policy, ?rhich keeos the network c, -
one hour longer than its previous sign-off time of one a.m., ma..
the latest hour in its history a.t which the network has closed.
It became effective Sunda.y, August 27.
xxxxxxxxxrixxxxxxxx
SHORT-WAVES PLAYING VITAI. ROLE IN CRISIS
A new anti-propaganda force is playing a vital role in
the current European crisis, according to Washington political
observers, and may have a hand in the outcome.
Wliile short-wave broadcasts estab.lished a new record for
.international news transmission in the Czech episode, tnis timo
tliey are believed to be resoonsible for breaking d.ovTn the bars of
Nazi censorshin and thereby influencing the actions of Hitler him¬
self.
Great Britian and France, following the seizure of
Czecho-Slovakia, started directing short-w~ve broadcasts in
C-erman into the Reich auid., while Nazis- forbid Germans to listen
it is doubtful that such a ban was very effectiV’e.
President Roosevelt’s recent peace plea, moreover, was
directed to German listeners, among others, by U.3. short-wave
stations, and is believed to have had an effect of inducing the
note of caution into subsequent proceedings.
Washington observers believe that the bombardment of
news broadcasts from London and Paris and pleas for peace ha\’'e off¬
set to a large degree the effect of the government-controlled Nazi
press and given Germans a. true picture of the international situ¬
ation in place of the one-sided Nazi protrayal.
Reports from American representa.tives in Germany show
Hitler has been unable to check listening in on foreign short-wave
broa-dcasts, or to check the repetition by listeners of what they
her.r, despite severe penalties.
Hitler has used the radio in every way possible and taken
eveiy precaution to make it useful to him and not to othei'^s. He
seized control of the radio even before he muzzled the press.
When Goebbels set up his ministry of propaganda, he got
e^iman radio manufacturers to devise a cheap set along specificai.-
i. ions a.pproved by the government, which subsequently has been fol-
'owed by a still cheaper set. These have a short receiving ra.nge
and no short-wave attachment.
But the number of short-wave sets in use in Germany has
increased in recnet months. Commerce Deoartment records show.
X X X X X X X X^
REICH ADOPTS RULES TO NATIONALIZE RADIO
Full details of the regulations for the nationalization
of the German radio industry were officially published recently.
These regulations are issued by General Fellgiebel, who was :
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9/1/39
recently put in charge of the entire Gerrnrn electricrl communioa.---
tions industry, end are part of the Four fears Plan for ejcorjomio
independence.
The industry is required to form twelve groups of manu¬
facturers, each of which will be permitted jointly to manufacture
the following sets:
A high-efficiency receiver at a medium price (probably a
small supe2>-het.)
A receiver for reception of the local station at high
tonal quality and for wired- wirele ss cervices.
A "highest-ef ficiency *’ set (probably a large super-het. )
A receiver for motor-cars.
Portables and other "highest-efficiency sets may be man
factured only if there is a. direct demand in the Ge'man market or
if they are required for export.
P.A. amplifiers are standardised as 20, 120, and 500
watts” no others may be made.
The regule.tioiis stipulate all receivers must be for A.C.
witii converters, or for A.C /D.C.
Single pa.rts for sets must be chosen from those types
which- are also suitable for national defence. Single or hand
processes must be superseded by mass-manufacture in all cases-.
To prevent the selling of old models by dealers at re¬
duced prices, thus causing them losses, the German radio i.ndustry
has been ordered to continue for a longer period than hitherto
the types it is allowed to produce.
There must be complete and immediate remove.l of all
sour es of man-made interference . On account of the television
■ se all motor-cars must at once fit interference suppressors.
It is ordered that only German materials be used in manu
facLure to eliminate importa.tion cf foreign materials.
Indications are tha.t, aided by the new system of mass-
production, C-ermany -will make a great drive' for cheap exports. Al
rsai^’’ the types of value have b^en reduced from 66 to 23, -Lhe var¬
iety of louds'peaker types avail^^ble from 100 to 12, the number of
different types of resistance from 1,000 to 17.
XXXXXXXXXJvXXXXX
CBS announces that Station XROY, Sacramento, is now
■ a permanent full-time schedule.
xxxxxxxx:c'xxxxx
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I). S. fiEADY TO FORiv! WAR-TIME RADIO. RULES
/ Governmental ageiioies ai’e preoaring to take whatever
seeps may be necessary to keep the Ainerlcan broadcasting system
neutral in event of a general European war and may even take over
frequencies needed for military purposes axid diiect the operauionr
of all stations should the United States be drawn into the con¬
flict .
Jamies Lawrence PlLy admitted at his first press confer¬
ence that he had been consulted ''3n a minor capacity” by other
Government officials in the State, Army, aaid Navy .Departments
who have been studying the question of what to do about radio vh-en
war come s .
Ke declined to predict what course the goverriinental
supervision of America. 's ether f/aves mprj take, but he called
attention to the war emergency powers granted the President by the
Communications Act. Section 606 gives the Chief Executive broad
authority over radio in time of war.
Several proclajuations anticipating pi’ogressive stages in
government control of radio operations have been prepared by mil¬
itary authorities, it is understood, but wall be kept secret until
called for by the President.
Should the United States become embroi.ped in the 'jar or
the danger become critical, authorities predict, the FCC probably
will turn over its administra tion of the broadcasting system to an
emergency war-time board.
Because the milit-ry and naval units do not have as large
a share of the radio waves as they think are necessary in time of
war, many privatel^^- owned stat Ions likely would be called upon to
surrender their frequencies, particularly for coastal and inter¬
ior communicatiens .
X X X X X X X X
MILLER PRAISES RADIO NEWS PEPORTINC-
Praising the public seiwice work of stations and net¬
works in bringing the nation the most comprehensive war-crisis
coverage in histor3/, Neville Miller, President of NAB, congratu-.
lated the Industry in the following statement:
"The broadcasting industry is performing a monumental
public service in this war crisis period. Commercial schedules
have been abandoned at real fi-na,nciai sacrifice in order that the
puolic interest may be served. No other industry'’ can boast such an
unselfish performance. Once avga in American broadcasters are prov¬
ing their stewa.i’dship . Operations have been of a twenty-four hour
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9/1/39
basis. P.adic .sirxff men and \;oraen have stuoh to their posts c>.y
and nigbt. that the American people may be informed of the star,
llini^ mini.'' te-to-minute developments.
''The comprehensive news reports and on-the-spot- -bropd-
casts h-pve undoubtedly gathered the greatest audience in the his¬
tory of radio.
In eveiy home in America, from the White House to the
liiost humble, radios are turned on, and neopD.e are listening and
hoping that the holocaust may yet be averted.
"Through it all, there is a, perceptible growth in public
appreciation of the private and competitive character of the
American System of Broadcasting which is rendering such a superb
service. I congratulate the industry.
"And let me convey the grptitud.e of the industry to the
gentlemen of the press ^tho hPive cooperated so splendidly with us."
X X :: X X X X X x
FLY ALIGHTS LIGHTLY AT FIRST PFFS3 CONFERENCE
James Lawrence Fly, former TVA counsel, took the oath as
Chairman of the Federal Communica.tions Commission Friday and short
ly thereafter held his first press conference.
Adroitly evading controversial questions, he nevertheles
sought to convey the impression that he would ':e neither hasty in
reaching decisions nor dogmatic in enforcing them on the other
Commissi oners .
Wnile rumors a,re afloat at the FCC that T.J. Slowie,
Secretary, is to be replaced, Mr^ Fly insisted tha.t he has no plan
for a "purge" or "housecleaning" such as his predecessor, Frank
R. McNinch, attempted. Each case will be considered on its in¬
dividual merits, he said,
Ij He expec.ts to announce shortly, however, the appointment
,jof a s'lecial assistant to the chairman, a. lai^yer, who --all act as
ijhis individuPul advisor. This is a. new position.
"I hope to do this Job right", he said. "I did not
run for it on any dogmatic platforms nor seek the job on any basie
issues. There are many r>roblems before the co.mraission that deserv
'^bry serious study. "
He declined to comment . or express an opinion on any
of these problems.
Explaining that he was speaking a.s a radio listener
rather the.n as Chairman of the FCC, BIr. Fly commended the radio
networks and broa.dca. sting stations for their "great public service
in covering the European crivsis.
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9/1/39
R?c>ir.in^; Cliair’man AicNinch sc.t r.i.lm during -ohu cOi.-
■'c:’e**ce, r .1 at a previous meeting of the P^’CC he wr-s acccmperr'.ef..
['}’ Benjamin ’'cR-en; one or i.he Ner Deal Aids. I'hcro was some sp- ou-
Nation tnat Coh'ui is ehe man who Air Fly has ashed to act as his
soeclal counsel.
EFFECT OF OUTBREAK ON U.S. BROADCASTS AWAITED
American broadcasters v'ere uncertain this week-erici as to
what effect the outbrecK of the European conflict will, have on
American broadcasts to and from the foreign capitals. Mernw;hile,
however, telephonic com.muni cation between this country'’ and Europe
was cut off.
The American Telephone and Telegraph Company was notified
that the British Postoffice, which operates the British end of the
sorvi'ce, had advised the company's Nev^ York office that it w^ouf.d
accept calls only to the Bank of England, the N.Y Times reported.
Mo reason for the suspension of service was assigned. The A T. A 1.
has a circuit to France, which ww s accenting only official and
banking calls.
Officers of the company pointed out that virtually all
European ca,lls clear through London. Thus the suspension of serv¬
ice, should the British G-overnment so desire, could be complete.
The British exchange is the central point for telephone cal Ls on
the Continent, it was explained, since all calls, except for one
exchange in France, clear through the British ca.pital.
New York offices of various radio and cable comp'mies
serving London were notified that the British G-overn.ment had begun
censorship of all messages. Commercial Cables disclosed tir^t for
several days past French censorship has prohibited the reception
in that country of either commercial or private messages in code
or cipher. Commercial Cables reported that its service was normal
but th' t it would have to submit to the oensorship, thus delaying
transmission.
Radiomarine Corporation reported that all message trafij.o
wp.s norma.1 but that "no code messages .^re acceoted in G-reat Britakn
France auid Poland. " The International Telephone a.nd Telegraoh
Company reported norma.1 cable service.
The ALackay Radio and Telegraoh Company said that its serv
ice was normal on all circuits, but this company does not serve
London. A representa.ti ve of Jiackay said that it had not been noti.
fied of any censorship in Poland. RCA Corarnunicaitions, Ipc ,
said that there had been no interruntlon in its service.
So far the broadcasting systems report that they have not
oeen a,ffected, tbe T im'e s stated. TraLnsoceanic broa.dcasting facili¬
ties of the Na.tional Broadcasting Company and of the Columbia a.nd
liutua.l sys ems are sciieduled for today, but the compa.nies are s’-ic
to have h^d no assurauice that the programs would go on.
10
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Lf. could not plol: ud London during;; its rnid-o.fter-'
noon conirr.Oii*. period and v/as off the air for seventeen minutes ocfcre
Gomtact v-ns re-estrblished vdth its London representative. A
oheck-up on short-v;:- ve channels, hom^ver, indi?''-.ted tl'^.t the sta¬
tions were on vdth suostitute music-^1 programs. A representa¬
tive of Mutual said that there was no indication yet of a cut-off
of service.
It was agreed generally in broadcasting circ3.es, that if
the service was not cut off eventual y, there might be a curta.il--
nent of broa.dcasts from Europe.
Max Jordan, chief of NBC staff in Europe, in a broadc''s"-
from Berlin yesterd-y afternoon, said:
"Alloi'' me to report alarming reports that reached here
from across the borders, '"telephone communication with .^-broad beca.mc
entangled once more. No calls ax-re accepted to London, except these
of the government. One could not get through to Paris, either.
Broadcasting had been stopped from Grea.t Britain to foreign coun¬
tries. ’’
A representa.tive of the National Broadcasting Company
y.ointed out that, i.n the eventof war, if the cables were prevented
from carrying programs and if the British Broadcasting Corporation
and the German broadcasting system were ordered by their govern¬
ments not to carry urograms from London or Paris, that it would nut
an end to American rebroadcasts, so far as London and Berlin xvere
concerned.
In the case of Berlin, it was pointed out, the NBC coop¬
erates with the German broa dca sting system, but all programs en-
a rating from Berlin come by short wave and none by c^'-ble, which is
not the case with England.
xxxxxxxx
JR LINE EQUIPS
PLANES WITH PORTABLES
Eastern Air Lines announced this week that portable
ba ttery-pov;ered radios with airplane wave ma. ne ‘s had been insta.lleo.
on planes of its fleet to bring to oassengers the latest news ser¬
vice bulletins. Reception is reported to be excellent under most
atmospheric conditions.
XXXXXXXXX
DUS TO -GOVEPLU^NT OFFICES IN WASHINGTON BEING CLOSED OVER LABOR
day, MONDAY, SEPTEMBER 4, THERE WILL EE NO ISSUE OF THIS SERVICE
TUESDAY, SEPTEMBER 5.
XXXXXXXXX
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1
9/]./39
CBS TO ASK PERMITS FOR TWO NSW AUTITORim^S
Columbia Broader sting System will ap'-ly for permits to
build two 400-seat a.uditoriums 't Columbia Square, Hollywood, it
v;as announced tnis week. The auditoriums will be built to take
care of the extraordinary demand for tickets for broadcasts, ?rhich
lias taxed the facilities of the present 1,000 seat theat'^i’ be¬
yond canacity. The two i:ew auditoriums will be similar to the
three other Columbia Square buildings both in design, which is
functional and modern, and in color, which is blue and gray with
chromium trimmings.
However, there will be an unusual innovation in the in¬
terior of both, with the monitor rooms anid sponsors’ booths being
located behind the footlights; the la~tter booths built over the
monitor rooms. The building will be one story high, with an ad-
ditiom-1 half- story over a part of it, in which dressing rooms
for the casts and rest rooms will be located.
X X X X X X X X X X
FA.DI0 TRAFFIC BOOSTED BY CRISIS
An increase in traffic communication betmeen the United
States and Europe, as a result of the world crisis, was reported
this week by the Ra.dio Corporation of America. The Radiomarine
Corporation of America alone estimates its traffic has shown a
gain of 20 per cent.
It has been noted, says the N.Y. Times that ships fly in
the fla.gs of G-ermany, France and England are not using their ship-
to-shore transm.itters , so as to avoid Fny indication of thei.r posi
tions -t sea. ’While the messages ^ re going out to these vessels
PS usual, no verification of their reception is given. It ia be¬
lieved, however, that the receivers on shin-board, are nicking up
the bulletins on developments in Europe being sent out by the
communications company.
Not only is a consid.erable increase in re diogr^^m service
reported, but a similar heavy traffic in the transmission of ra.dic
pictures for newsnapers ■''nd the handling of radio programs betwee.n
Eurone and this country over R. C.A. circuits.
XXXXXXXX
DUE TO GOVERNIvENT OFFICES IN WASHINGTON BEING CLOSED OVER L
DAY, MONDAY, SEPTEfiBER 4, THERE WILL BE NO I3STJE OF THIS SERVICE
TUESDAY, SEPTEMBER 5.
X ): X X X X X X X
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X A :: X XXX
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF SEPTEMBER 8,
L j A . .
' ''i !•' ’'■•j I' i '/ i‘-
Ur' lii y IL ii 4' i&
LHJ
A.r.i.
SEP 9 1S39
U- I
P.'L
1939
F. D.R. Decries Censorship As FCC Tackles Problem . 2
Networks Move To Cooperate With Administration . 3
FCC Getting Lots Of Advice On What To Do . 4
McNinch Retained By Justice Department . 5
G. E. Building Frequency Modulation Station . 5
Amateur Broadcasts From Europe "Blacked Out" . 6
Radio To Participate In Business Boom . 7
Broadcasters Confer On War "Coverage" . 7
German Listeners Feel Full Blow Of Censorship . 8
Trade Notes . 9
Swiss Ban Broadcast By League Of Nations . 10
Chicago Bids "Sport" Herrmann Reluctant Farewell . 11
August Network Billings Above 1938 . 12
U. S. Given 14.6^ Of French Imports . .12
Iran Asks Bids On $5,000,000 Radio Contract . 12
No. 1155
^ . a
■
. - -I
F.D. R. DECRIES CENSORSHIP AS FCC TACKLES PROBLEM
Shortly after the White House released a statement
asserting that President Roosevelt will not permit the invoking of
censorship of radio unless the United States goes to war, the
Federal Communications Commission this week tackled the task of
adopting a general policy for stations to follow to insure American
neutrality.
Following an all-day meeting in which the matter was
argued with some fervor, James L. Fly, Chairman of the FCC,
announced that a committee had been set up to study the problem
further and make recommendations to the full Commission.
Besides himself, the Committee comprises Commdr. T. A.M.
Craven and Thad H. Brown.
Chairman Fly stated that he considered the FCC’s problem
two-fold. The first objective, he said, is to prevent broadcasts
that are unneutral in the sense that they are conducted in behalf
of a belligerent or supply war-connected information.
The second and more dangerous problem, the Chairman
added, is how far the Commission can and should go in Interpreting
what programs are "in the public interest".
The Commission is sharply divided on this latter issue,
it is understood, as some members believe that the FCC should
crack down on any station that carries comment by an unneutral
observer. Other members insist that such regulation would amount
to censorship, which is not allowed under the Communications Act.
There were indications both at the FCC and in the White
House statement that amateur stations may be the first to feel the
curbing hand of the Federal Government and that international short¬
wave stations will not be far behind. These stations are consider¬
ed potentially dangerous to American neutrality, it was explained,
because their reception is chiefly foreign.
A statement made by Stephen Early, Mr. Roosevelt’s
secretary, was in reply to a question about the President's warn¬
ing the day before lest the United States find itself the clearing¬
house of propaganda and information work of agents of the belliger¬
ent nations.
Plans exist for the control of communications should
this comtry go to war, Mr. Early a.draitted, but reminded that this
was a time of peace for the United States.
2
9/8/39
He said the Government was keeping a close tab on the
radio to see how the young industry met the problems of American
neutrality in a time of great international stress. The press,
he said, has gone through periods of war and neutrality, but the
radio is a ’’rookie rather than a veteran".
"There is a general feeling", Mr. Early said, "that radio,
because of its youth, is coming into a time In history that is new
to it. If we find that the child has been reared so it is well-
mannered, it will be left to run its own business. If it proves
to be a bad child there will be a disposltio n to teach it some
manners. Certainly there have been no moves in this direction yet. "
A declaration by Mr. Early that the shortwave and inter¬
national broadcast fields should be carefully watched was borne out
by FCC experts who said that the problem of apprehending small radio
sets broadcasting Information about ship or merchandise movements,
for example, would present serious difficulties.. Extensive moni¬
toring of the ether waves, they indicated, would be necessary.
The FCC only a few weeks ago attempted to impose restric¬
tions on the broadcasts of international stations. A rule that
specified that programs must be of a cultural nature, intended to
build up goodwill for the United States, aroused such a storm ot^
protest that it was suspended indefinitely.
XXXXXXXXXX
NETWORKS MOVE TO COOPERATE WITH ADMINISTRATION
Changing their policies of war coverage over night, the
major networks this week moved to cooperate with the neutrality
efforts of the Administration by curtailing war news broadcasts
to avoid what was termed a "war of words".
Broadcasts from European capitals henceforth will be
carried only when the network’s representatives abroad report that
they have ne^^s of transcending Importance to announce. Likewise
news bulletins, unless of extraordinary importance, will be broad¬
cast at regular intervals rather than intermittently during programs.
This new policy was induced by several developments since
the outbreak of the European conflict, it is understood. The first
Was the imposition of a strict military censorship upon broa.dcasts
from the waring capitals. The second was a desire of the American
broadcasters to avoid any suggestion of unneutrality. And a third
was a complaint from listeners aga.inst too intensive reporting of
unimportant developments.
XXXXXXXXX
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FCC GETTING LOTS OF ADVICE ON WHAT TO DO
While the Federal Communications Commission ponders
the ticklish problem of how to keep American radio stations
neutral and at the same time avoid censorship, lots of advice
from persons of varying prominence is pouring into the FCC offices.
This week no less a personage than Elliott Roosevelt,
son of the President and a Texas chain broadcaster, suggested that
the FCC try to control the rebroadcasting of war propaganda from
abroad, while Dean Carl W. Ackerman, of the Columbia University
Graduate School of Journalism, warned the FCC against censorship,
Dorothy Thompson, after being cut off the air by Station
WKW, St. Louis, wrote a blistering column suggesting that the
broadcast of war news, especially news comments from waring
European countries, be curbed in this country.
Neville Miller, President of the National Association
of Broadcasters, disturbed by divergent rumors and Inquiries from
NAB members, conferred with James L. Fly, Chairman of the Commis¬
sion, at some length.
Dean Ackerman’ s telegram to the FCC was prompted by the
suggestions of radio control by Miss Thompson and young Roosevelt.
”I tr^ist”. Dean Ackerman’s telegram said, "that the
Federal Commiinications Commission will take no action which will
in any way interfere with the free flow of information by radio,
newspaper, press associations or otherwise from all parts of the
world to the United States, whether it is propaganda for or by
foreign governments, or whether it is propaganda distributed by
American citizens with foreign viewpoints. Propaganda either
labels itself or is exposed by the truth which free communication
insures.”
He declared that as long as this country was not involved
in the European war, the Interest of every free citizen should be
centered in the complete and unmodified freedom of the instrumen¬
talities of communication. He went on:
’’There may be many points of view expressed on the radio,
and some practices of the radio broadcasting companies or the news¬
papers to which I may be inclined to take vigorous exception;
nevertheless, this is not the time or occasion for any citizen to
set himself up as a dictator of the kind of liberty he approves.
’’The people of this country are not boobs. They have
sound common sense and are able to reach honest American conclusions
after they have listened to or read news dispatches and comments,
considered the facts and applied discriminating judgment to the
facts and opinions as presented by the different sides in this
European war.
”I am in favor of maintaining peace and democracy by
maintaining our liberties. I am unwilling to have either Elliott
Roosevelt or Miss Thompson decide for me what they consider to be
the amount of freedom which may be allotted to me as a citizen.”
XXXXXXXXXX -4
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9/8/39
McNINCH RETAINED BY JUSTICE DEPARTMENT
Attorney General Murphy announced this week that the
Department of Justice has retained Frank McNinch, formerly Chair¬
man of the Federal Communications Commission, as an expert In com¬
munications problems to advise the Department In connection with
the telegraph, telephone and radio complexities Involved In the
Western Union suit and other litigation In the Department*
Mr, McNinch Is expected to submit his confidential
report to President Roosevelt on the Federal Communications
Commission within a few days.
XXXXXXXXX
G. E. BUILDING FREQUENCY MODULATION STATION
Equipment Is now being built for the construction of a
new broadcast station In Schenectady that will operate on the
recently announced frequency modulation system developed by Major
Edwin H. Armstrong, according to an announcement by C. H. Lang,
Manager of Broadcasting of the General Electric Company.
The transmitter for the new station will be located in
the building now housing General Electric's television transmitter
atop the Helderberg Mountain, 12 miles from Schenectady. It Is
expected that the new station will go on the air this Fall, accord¬
ing to Mr. Lang.
General Electric has been conducting frequency modula¬
tion tests for some time on its 150-''^att ultra short-wave station
W2X0Y, located atop the State Office building in Albany. Federal
Communications Commission officials spent two days In Schenectady
and Albany this Spring to witness a demonstration of the new system
of radio broadcasting.
These tests and subsequent ones have shown that at least
96 percent of all natural and man-made static is eliminated in the
new system. Coverage is limited to approximately twice the distance
between the transmitting antenna and the horizon, which, according
to General Electric engineers, should provide good reception for
about 100 miles from the Helderberg transmitter,
XXXXXXXXXX
The average rating of all evening radio shows increased
last Winter from 8.8 percent to 9.3 percent, according to a compre¬
hensive report on radio program audience which the Comprehensive
^alysis of Broadcasting has Just distributed to its subscribers.
The number of evening shows rating 10 percent or higher increased
from thirty-nine to forty- four and the number of daytime programs
rating over 5 percent was almost tv/ice as great as during the
previous Winter.
XXXXXXXXXXXX
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9/8/39
AMATEUR BROADCASTS FROM EUROPE "BLACKED OUT"
Washington’s amateur eavesdroppers have been tuning
their short-wave radio sets to European wavelengths constantly in
the last few days, but so far they have gleaned little that was not
already knov;n.
As soon as the war began, they reported, amateur stations
In all warring countries went off the air. American stations in
the Philippine Islands and at Java, and a few amateurs in the
International area at Tangiers in North Africa, are now the only
contacts between amateurs here and on the other side of the world.
Some messages apparently coming from the G-erman command
and directed to sections of the Army and Navy were picked up by
K. J. Cranford, of Bradbury Heights, Md. , but he would not say what
they were, as all amateurs are sworn to regard such private com¬
munications as confidential. The information was not of sensational
Importance, he said, but of a routine nature.
Although amateurs agree that chances of picking up and
decoding such messages are slight, they pointed out that under
favorable conditions messages from small field transmitters in
Europe theoretically could be received here.
Conditions have not been good in the past weeks, they
said, but they are now improving daily.
One amateur reported that German property in South Africa
is being picketed.
Earl A. Merryraan of 4905 Quarles Street, N.E. reported
he had picked up a conversation between Johannesburg and a Chicago
amateur in which the man frxDm South Africa reported the picketing.
Mr. Merryman said he had made contact with an amateur in
Spain who appeared anxious "to know as much about the European
situation as we do". The Spaniard reported, according to Mr.
Merryman, that scarcely any news of the wa.r and conditions was
available in Spain.
Meam/diile, Roy C. Corderman, emergency co-ordinator for
the American Ra.dio League, called a meeting of local radio amat¬
eurs September 18th in the District Red Cross Chapter Building.
The session will take up problems which might arise in the Washing¬
ton area during the various types of emergencies.
X X X X X X X X
Three Washington girls have sued the Western Union Tele¬
graph Co, in the District for $30,000 damages, claiming that a
cheery birthday message was delivered to a widowed friend to whom
they wired condolences.
XXXXXXXX
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9/8/39
RADIO TO PARTICIPATE IN BUSINESS BOOM
While opinions differ as to the immediate effect of
the European War on advertising in this country, experts agree
that radio will participate in whatever business boom may occur
in the United States.
At present there is a great deal of confusion in both
Industrial and advertising circles, but this is expected to give
way to steadily increasing sales and higher prices as the war
progresses - so long as this country remains neutral.
The radio manufacturing industry is expected to prosper
with expanded sales in the United States and neutral countries.
The market in Europe, however, is uncertain.
New York advertising agency men are quoted by Variety
as predicting an industrial boom in which radio will have its
share after ”a brief period of uncertainty and confusion”.
The New York Times business editors state that national
advertisers are talking of short-term commitments in order to be
ready for any changes in the market.
'•Theoretically, newspapers, spot radio, direct mail and
the weekly magazines would appear likely to benefit. Network radio
will have to undergo some adjustment, as advertisers have started
to complain about their programs being interrupted for news flashes.
Yesterday, however, several networks began to cut down on European
broadcasts, and it is likely that only the most important news
flashes will be interjected into regular broadcasts. Newspaper
advertisers have begun to strive for news headlines tying in with
the war, and it is likely that this type of copy will become more
frequent. ”
XXXXXXXXXX
BROADCASTERS CONFER ON WAR '‘COVERAGE"
Disturbed by military censorship abroad and hints of
governmental control of radio in the United States, American broad¬
casters have been holding conferences in New York this week in an
effort to agree on a general policy of "covering" the war.
The parleys have been attended by David Sarnoff, Presi¬
dent of the Radio Corporation of America; William S. Paley, Presi¬
dent of the Columbia Broadcasting System; Lenox R. Lohr, President
National Broadcasting Company; Alfred J. McCosker, President
of WOR, and a group of other executives. TTie Program Directors of
the key New York stations met yesterday at CBS headquarters.
- 7 -
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Reports coming out of the meetings Indicate that the
officials are in general agreement that American broadcasting
should return to its normal schedules as quickly as possible.
Those opposed to this view contend that radio is confronted with
its first chance to cover a war in the "public Interest, conven¬
ience and necessity", and should do it in "a big way". It \7as
made clear yesterday, however, that this is the opinion of a
minority.
"The majority of officials advocate normal procedure
and in such a policy they see less danger of upsetting neutrality",
according to the New York Times. "Furthermore in urging withdraw¬
al from European microphones, the broadcasters point out that
foreign censors are stripping 'live news' from the radio so that
most of the offerings from overseas are of little Interest.
"The American station owners assert that it is not good
business to pay |10 a minute for commentary from Europe when the
commentator Is permitted to chat only about the moon and the
weather. Foreign governments have restricted all broadcasts to
guard against a commentator innocently dropping information to the
enemy relative to conditions within a city. "
XXXXXXXX
GERMAN LISTENERS FEEL FULL BLOW OF CENSORSHIP
While all radio listeners are affected by the military
censorships invoked by warring European nations, German listeners
are the only ones who are virtually cut off from the worlr or tune
in foreign stations at the peril of their lives.
According to reports circulating in Washington, the
Nazi regime, after announcing that listening to foreign stations
constitutions treason, has placed an almost prohibitive tax on all
radios and confiscated sets capable of tuning in foreign short¬
wave stations.
This Nazi ban has already had an effect on U. S, short-wave
broadcasting.
A decree published in Germany last Saturday fixing pri¬
son terras and the death penalty for those who listen to and repeat
what they hear on foreign shortwave has caused the National Broad-
*^onipany's International Division to suspend indefinitely
the Mail Bat", one of the oldest and most pooular of German short¬
wave programs.
The "Mail Bag", conducted three times each week by John J.
Marsching, ms part of NBC's weekly seven hours of directional beam¬
ing to Germany. The principal part of the total is made up of
I actual news broadcasts.
XXXXXXXXXX ^
- 8 -
I •
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9/8/39
TRADE NOTES
Orville S. McPherson, President and publisher of the
Kansas City Journal has become one of the Vice-Presidents of the
KCMO Broadcasting Company by virtue of acquisition of an inte3>-
est in the company. ”1 have always believed newspaper and radio
were complementary services to the community”, Mr. McPherson said.
"Each has its ovm particular field of operations and are non¬
competitive. ”
The National Broadcasting Company's Television Depart¬
ment is planning an extensive series of interpretive telecasts
of the European War. The NBC television war series, according to
Alfred H. Morton, NBC Vice-President in Charge of Television,
will deal with the inner meaning of the struggle, its economic
background and the significance of its military moves. Mr. Morton
added that television could present such interpretive Information
more comprehensibly than any other means of mass communication.
The New York Philharmonic- Symphony enters its tenth
consecutive year of broadcasting over CBS Sunday, October 15th.
John Barbirolli, young English conductor, returns for his third
season as permanent director of the orchestra. G-uest conductors
this season will be Georges Enesco, Rumanian composer, conductor,
and violinist; Albert Stoessel, American conductor of the Oratorio
Society; Serge Prokoffieff, Russian composer, conductor, and
pianist; and Ernest Schelling, director of the Young People's
Concerts.
Almost four years to the day from its inception, the Radio
Corporation of America' s Magic Key program will take a "breathing
spell" following the final show in the current Summer series on
Monday, September 18th.
American consular reports on the radio markets in the
following countries were issued this week by the U. S. Bureau of
Foreign and Domestic Commerce: El Salvador, Poland (supplement),
British Guiana, Fiji Islands, and British Solomon Islands.
Opposition to radio advertising of alcoholic beverages
was expressed this week by Capt, W. S. Alexander, Administrator of
the Federal Alcohol Administration, in an address before a conven¬
tion of the ^National Alcoholic Beverage Control Association, at
Bretton Woods, N. K. It is wrong in principle, he said, and "in
practice it is piling up mountains of trouble for the short-sight-
6d manufa.cturers who use it. "
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Editor & Publisher last week devoted the whole of its
"Shop Talks at Thirty" to a discussion of the effect of intensive
radio coverage of the war on the newspapers.
101 Columbia stations have designated their own Educa¬
tional Directors as part of a plan for expanding CBS educational
programs, completed by Sterling Fisher, Director of Education for
the network. Three new Regional Directors have been appointed to
coordinate the educational broadcasts of the 101 stations. The
new Directors are; Lloyd G-. de Castillo, Program Director of WEEI,
Boston, for New England; Mrs. Lavinia S. Schwartz, Education Dir¬
ector of WBBM, Chicago, for the Middle West; and Mrs. Frances
Fanner Wilder, KNX, Hollywood, for the Pacific Coast,
Polish was added last week to the crisis news broadcasts
in foreign languages over short- wa.ve stations W2XE and WCAB of
Columbia Broadcasting System. The special announcer on Polish
programs is Jan Drotto jowski. With the addition of Polish, seven
languages are now used on these foreign broadcasts - G-erman, French,
Italian, Spanish, Portuguese and English. Fourteen foreign speak¬
ing announcers are at CBS short-wave microphones during the emer¬
gency.
J. Francis Harris, of Mamaroneck, N.Y. , became a Vice
President of R.C.A. Communications, Inc., in charge of Japan,
Manchukuo and China last week. He has been Manager in Tokyo for
several years and is now on his way back to Japan after a brief
visit in this country. He will make his headquarters in Tokyo, but
the Shanghai office, hitherto independent, will be placed under his
supervision.
XXXXXXXX
SWISS BAN BROADCAST BY LEAGUE OF NATIONS
Although negotiations to transfer the League of Nations
holdings in the Radio of Nations are not yet concluded, the Swiss
Government has banned further League broadcasts or the use of the
station for political messages, according to a Geneva corresoondent
0^ the New York Times.
Secretary General Joseph Avenol, addressing the League
Is-st week, intimated there would be large sc8,le reductions
shortly. More than 100 members are already mobilized and others
hope to find work wdth the Red Cross and similar organizations.
XXXXXXXX
10 -
9/8/39
CHICAGO BIDS “SPORT” HERRMANN RELUCTANT FAREWELL
Although he met his untimely death more than two months
ago, eulogies still continue for ”Sport" Herrmann, of Chicago, who
managed the early radio shows and who was a friend of the radio
industry generally. The final tribute was a memorial card Just
received from Commander E. F. McDonald, Jr., President of Zenith,
in whose company Mr. Herrmann was a Director from the time of Its
organization. The card bore a lifelike picture of "Sport” and
his beloved dog "Brownie". Also the following farewell written by
Commander McDonald:
Yes . . . "Sport" has been called away from this earthly
life.
A taxicab accident In Wisconsin which occurred on July
1st, 1939 took him from us.
YOUR FRIEND AND MY FRIEND ... a man among men . . .
"Sport" still lives in his good deeds.
He made his home in Chicago, but in spirit he was a
true cosmopolite. He had warm friends, not Just acquaint¬
ances, in nearly every part of the world.
His nickname, "Sport", given him early in life, reflected
indeed his love of honest, clean sports of all kinds . . .
yachting, hunting, fishing, athletics . . . these were his
hobbies.
On his letterhead he had inscribed the simple legend
"U. J. Herrmann, Citizen", an expression of his pride in
having been born an American citizen and of having served as
a Commander in his country's naval forces.
"Though amply blessed with this world' s goods . . . the
fruits of his own hard struggles ... he remained a simple
man in life and habits. He measured his own and others*
success not in terms of dollars but by the yardstick of human
kindness and personal qualities.
^ "Sport's" humanity, his understanding nature, his kindly
and helpful advice and counsel, his friendship for and un¬
assuming charity toward those in need; his unswerving integrity
and honesty of purpose in everything he did, will not soon
be forgotten.
Probably no Chicagoan ever received such a tribute as
"Sport" Herrmann did in the Me dinah Clubman . magazine of the
Medinah Club of Chicago, of which he was Treasurer of the Build¬
ing Corporation. His picture was on the front cover, there was a
leading editorial dedicated to him captioned "Goodbye Mr. Chips"
and an obituary "Medinah Mourns Death of Sport Herrmann" extending
over five pages.
XXXXXXXXXX
11 -
r r.
V
AUGUST NETWORK BILLINGS ABOVE 1938
Increases in billings in August over a year before were
reported this week by the three major radio networks. Billings of
the Columbia Broadcasting System were up 64. 2 percent over a year
ago and 1.1 percent over a month before. The latest total was
$2,337,376, against $1,423,865 in August, 1938, and $2,311,953 in
July, 1939.
The National Broadcasting Company recorded an increase
of 12.6 percent over 1938 and 0.9 percent over July, The latest
figure was $3,312,570, against $2,941,099 a year before, and
$3,283,555 a month before.
Mutual was up 24.7 percent over 1938 and 22.2 percent
for the year to date. The August total was $205,410, against
$164,626 a year before.
XXXXXXXX
U.S. GIVEN 14.6^ OF FRENCH IMPORTS
The basis of the French radio tube quotas was establish¬
ed by taking 40 percent of the imports from each country in 1930
and adding to that 60 percent of the imports in 1931, according to
John H. Payne, Chief, Electrical Division, U. S. Bureau of Foreign
and Domestic Commerce. Calculations accordingly indicate that
the United States is entitled to 14.6 percent of the total import
permitted. The published global quota, beginning July 1, 1938,
amounted to 2375.45 quintals, i/diich would accordingly entitle the
United States to 346.8 quintals. Actually during the fiscal year
ending June 30, 1939, the United States was granted 394.75 quintals.
XXXXXXXX
IRAN ASKS BIDS ON $5,000,000 RADIO CONTRACT
According to cabled inf omation, the Iranian Ministry of
Posts and Telegraphs has called for bids on approximately $5,000,000
worth of radio receiving sets, including 1.00,000 crystal sets (200-
400 meters), 200,000 small tube sets (55, to 110 and 200 to 400
meters), sensitivity 100 microvolts at 1 watt output, and 1,000
communications receivers 16 to 120 and 192 to 550 meters with acces¬
sory amplifiers and extension loud-speakers. These are minimum
quantities, with deliveries extending over a period of five years.
Quotations to be c.i.f. Persian Gulf for these and for 50 to 100
percent additional quantities, as well as for replacement tubes and
spare parts. Bidders must agree to equip a repair shop in Teheran,
to become the property of the Iranian Government on the completion
of the contract. A certain number of sets were required by August
18th. Tenders for the principal quantities are to be in by October
4. Sample sets must be submitted.
Specifications (in French) are enroute from Iran a.nd will
he made available at the New York District Office of the Bureau of
Foreign and Domestic Commerce, Room 602, Federal Office Building,
hurch and Vesey Sts. , New Yoric, for inspection by interested firms.
\ •
f
J
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
INDEX TO ISSUE OF SEPTEMBER 12, 1939
Major Networks Adopt Code On War Broadcasts . 2
Jolllffe Sees Television Use If War Continues . 4
WMCA Cited By FCC For Code Message Broadcasts
War Will Speed Radio Progress, Says Dellinger
Great Lakes Radio Study Nearing Completion. . .
Radio Under Public Relations If War Hits U. S.
Publishers* Organ Against Radio Censorship. . .
War Broadcasts, Copyright On NAB Agenda. . .
Caution Urged In Radio War News Broadcasts . 7
British Back Station In Liechtenstein . 9
Trade Notes . 10
A. F. Of L. Rejects C.I.O. Merger Proposal . 11
Spain Urging Widespread Use Of Radio Sets . 11
No. 1156
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MAJOR NETWORKS ADOPT CODE ON WAR BROADCASTS
A self-imposed code designed to keep their war broad¬
casts neutral has been adopted by the National Broadcasting Company,
the Columbia Broadcasting System, and the Mutual Broadcasting
System, effective at once, the Federal Communications Commission
was informed this week.
While general in character, the code is designed to
avoid the broadcasting of propaganda from abroad, biased opinions
from commentators in this country, and to curtail the frequent
"flashes” and ’’bulletins” that broke into programs during the first
few days of the war.
The text of the arrangement was released by Neville
Miller, President of the National Association of Broadcasters,
after a conference with James L. Fly, Chairman of the FCC, and the
other two members of the special committee investigating American
broadcasting in connection with the war.
Others at the parley were Niles Trammell, Executive Vice
President, and Frank M. Russell, Vice President and Manager of the
Washington office, of the National Broadcasting Company; Edward
Klauber, Executive Vice President, and Harry C. Butcher, Vice-
President, and Manager of the Washington office, of the Columbia
Broadcasting System; Alfred J. McCosker, Chairman of the Board,
and William B. Dolph, Manager of WOL, Washington, of the Mutual
Broadcasting System.
Although drawn up particularly for the networks, Mr.
Miller said that the code will be presented to independent broad¬
casters at the NAB convention in Chicago this week.
Principal provisions of the code follow:
"Every effort consistent with the news itself is to be
made to avoid horror, suspense and undue excitement. Particular
effort will be made to avoid suspense in cases where the informa¬
tion causing the suspense is of no particular use to the listener.
Also, we will avoid descriptions of hypothetical horrors, which
have not actually occurred.
"Broadcasters will make every effort to be temperate,
responsible, and mature in selecting the manner in which they make
the facts of war and its attendant circumstances known to the
audience.
"Broadcasters will, at all times, try to distinguish
between fact, official statement, news obtained from responsible
official or unofficial sources, rumor, and matter taken from or
- 2 -
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9/12/39
contained in the foreign press or other publications, so that, by
reporting and Identifying these sources, we can help the radio
audience as much as possible to evaluate the news brought to It.
•’The radio audience should be clearly Informed that the
news from many sources, whether it be press bulletins or direct
broadcasts, is censored and must be appraised in the light of this
censorship.
•'Broadcasters will designate, if they choose, broadcasts
of news and news analysis, either or both, from Europe at such
intervals as they individually deem to be desirable. It is advis¬
able that these broadcasts be by Americans as far as possible, and
that each Individual broadcaster instruct the persons he employs,
either permanently or temporarily, in the general principles set
forth here. Insofar as European broadcasts contain news analysis,
they are to conform to the definition of news analysis hereinafter
set forth.
••Speeches by foreigners from abroad, public proclamations
and statements, and like matter are to be handled by each individu¬
al broadcaster in such manner as he deems best to serve his audience,
but it is essential that fairness to all belligerents be maintained
and that this phase of the operations be carried out in such a way
that the American audience shall be as completely and fairly in¬
formed as possible.
"If broadcasts become available from scenes of battle,
bombed areas, air-raid shelters, refugee camps and so on, broad¬
casters will not deprive the audience of the ability of radio to
give them first-hand information, but will use taste and judgment
to prevent such broadcasts from being unduly harrowing.
"If broadcasters put on propaganda, disseminated by radio
stations or the press of European countries or distributed by these
countries in any other manner, each will be guided by his own news
judgment and endeavor to label precisely the source of the material,
and to do this sufficiently often so that no reasonably careful
listener is likely to be misled, and he will also be governed by
the same rules of fairness in presenting all sides, though not
necessarily in the same broadcast, nor need this judgment be a
quantitative one.
"All the foregoing general principles will, of course,
apply to domestic broadcasts on any phase of the war. All news
broadcasts, whether sponsored or unsponsored, are to remain in the
strictest control of the broadcaster in order that the standards
herein set forth may be maintained. News analysts are at all times
to be confined strictly to explaining and evaluating such fact,
rumor, propaganda., and so on, as are a.vailable. No news analysts
or news broadcaster of any kind is to be allowed to express personal
editorial judgment or to select or omit news with the purpose of
creating any given effect, and no news analyst or other news broad¬
caster is to be allowed to say anything in an effort to influence
action or opinion of others one wa.y or the other. Nothing in this
3
9/12/39
Is Intended to forbid any news broadcaster from attempting to
evaluate the news as It develops, provided he substantiates his
evaluation with facts and attendant circumstances. His basis for
evaluation should, of course, be Impersonal, sincere and honest.
”In order not to keep the public unduly disturbed and
alarmed, each broadcaster, exercising his own news Judgment, will
endeavor to interrupt programs for news bulletins as little as
seems consistent with good operations.
"No propaganda in connection with the war will be allow¬
ed in either the commercial announcements or the context of com¬
mercial programs. Nothing in this shall be Interpreted as barring
straight news or news analysis, as herein have been described,
from commercial programs.
"The safeguards of fairness and program balance now
applied in the handling of speeches on controversial issues will
continue to be applied and, in order to make this effective, every
effort will be made to obtain the text of speeches before they are
scheduled. "
XXXXXXXX
JOLLIFFE SEES TELEVISION USE IF WAR CONTINUES
If the European war lasts more than a few months, as
it now appears that it will, it is highly probable that television
will be brought into use by military authorities on both sides,
according to Dr. C. B. Jolliffe, RCA engineer and former Chief
Engineer of the Federal Communications Commission.
Interviewed in Washington this week, he said that tele¬
vision is sufficiently developed for military use and only awaits
adaptation,
"Television may become the eyes of an army", he said.
"The army commander would have a chance actually to see what was
going on as he planned his strategy. "
XXXXXXXX
Cuban imports of radio sets during July 1939 numbered
1,364 units valued at 23,409 pesos, as compared with 1,900 units
valued at 30,484 pesos, imported during June, and 1,933 sets valu¬
ed at 49,477 pesos, imported during July 1938, according to the
U. S, Commerce Department. Imports from The Netherlands during
July of this year were nil as compared with 30 units valued at 842
pesos imported in June of this year, and 116 sets valued at 1,724
pesos, imported in July of 1938.
XXXXXXXXXX
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9/12/39
WMCA CITED BY FCC FOR CODE MESSAGE BROADCASTS
Station WMCA, New York, on Tuesday was cited by the
Federal Communications Commission to show cause why Its license
should not be revoked for decoding and broadcasting secret mili¬
tary Information transmitted by British and German radio facilities
at the outbreak of the European war.
The order, the first to be Issued by the FCC In a move
to keep American radio stations neutral, cited Section 312(a) of
the Communications Act as a basis for Its drastic action.
Station WIjICA's broadcasts, FCC officials said, consisted
of secret information having to do with German troop movements In
Poland and British naval maneuvers In closing the Mediterranean at
the outbreak of the war. A code expert picked up the radio com¬
munications via a short-wave receiver. WMCA was able to scoop the
press by means of the Information.
The FCC, In its order, pointed out that it had entered
Into an international agreement to take all possible measures to
prohibit and prevent (1) the unauthorized interception of radio
communications not Intended for the general public reception, and
(2) the divulging of the contents, the publication or other use
of the communications without authorization.
Station WMCA was instructed to file a v^rritten statement
on the facts in the case by Friday, September 15th.
XXXXXXXX
WAR WILL SPEED RADIO PROGRESS, SAYS DELLINGER
A prediction that the war would speed radio improvements
was made by Dr. J. H. Dellinger, of the National Bureau of Stand¬
ards, Chairman of a Committee of radio engineering experts which
met at the State Department this week to prepare for United Sta^tes
participation in the session of the International Radio Consulting
Committee, scheduled to meet at Stockholm next June unless war
causes cancellation.
"During the World War, improvements were made in radio
tubes, receiving sets and transmission equipment. When the war
ended in 1918, we were ripe for broadcasting, which began in 1920”,
Dr. Dellinger pointed out, predicting further great advances under
similar impetus.
With the world keyed to wartime apprehension for vessels
in distress, the radio experts discussed - among many highly techni¬
cal matters - the best word or signal for a ship with radio-tele-
pnonic apparatus to use in calling for he Id, corresponding to the
telegraphic SOS.
- 5 -
The question was whether the International term now In
use, "m'aidez” ("help me”) in French, and pronounced "mayday" in
English would be continued as the radlotelephonlc distress call for
ships.
The sub- committee on this question, headed by E. M.
Webster, of the Federal Communications Commission, checked the
question to other nations by making two alternative suggestions in
case they had difficulties necessitating a change from "m'aldez”.
One suggestion was the replacement of the spoken word
''m'aldez” by the sounds corresponding to the English letters SOS,
At that, one engineer spoke up: "The other nations might
think we are trying to compel them to speak English!”
"If we're going to have an English term, why not use the
word 'Help*?" another engineer Inquired, practically.
"Because some people can't say 'Help' - they say 'Elp". "
another man countered, ending the discussion on that particular
point.
XXXXXXXX
OREAT LAKE RADIO STUDY NEARING COMPLETION
The Federal Communications Commission is concluding a
year's investigation of communications facilities on the Great
Lakes to be used as a basis for a proposed agreement with Canada.
Thad H. Brown of the Commission, directing the inquiry,
said the Commission soon would prepare a comprehensive report on
commerce, navigation and the need, if any, for expanded communica~
tions machinery.
Congress, which authorized the survey in 1937, directed
the Commission to report not later than December 31, 1939.
"This special study has as its goal the very motives for
which men have always fought hardest - the guarding of life, the
safety of property",. Commissioner Brown stated.
He said the legislation was intended to "promote the
safety of life and property at sea through the use of wire and
radio communications. "
"Back of this desire", he added, "is the far-flung
effort to make more effective the program of the International
Convention for Safety of Life at Sea, adopted in London in 1999,
to provide compulsory fitting of merchant ships with radio appara¬
tus and the maintenance of radio watches."
Commission members reported that Canadian officials
were cooperating fully with this government toward establishment
of identical communications standards for vessels opera.ting on the
Great Lakes.
XXXXXXXX
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9/12/39
RADIO UNDER PUBLIC RELATIONS IF WAR HITS U.S.
Censorship of radio In this country will be exercised by
a special public relations administration If the United States
goes to war, according to a plan evolved by the War Department and
disclosed this week in Washington.
Details of the operations of the emergency agencies were
not divulged. The public relations administration would be dii>-
ectly under the President.
XXXXXXXXX
PUBLISHERS’ ORGAN AGAINST RADIO CENSORSHIP
Editor & Publisher last week came out editorially
against any form of radio censorship in the following statement:
"President Roosevelt was well advised in disregarding
son Elliott's plea for a rule against broadcasting of forei@i
propaganda. Iliat is now a matter for the individual judgment of
radio operators and they should soon learn from the audiences
whether the re-broadcast of the short-wave handouts is a popular
service.
"At this writing, we think it is well that Americans be
Informed on all national attempts to influence our opinions. To
date, we have not been Impressed by their efficiency. The German,
Polish, and Italian broadcasts, which are out-and-out propaganda,
discount the ability of Americans either to hear other stations or
to read newspapers. The German, especially, has tried clumsily to
undermine American confidence in our press - even to the extent of
quoting from a non-existent American newspaper. Let's assume the
basic intelligence of our citizenry, its belief in our own insti¬
tutions and news service - and let' s have no censorship of any
kind on this side of the water. "
xxxxxxxx
WAR BROADCASTS, COPYRIGHT ON NAB AGENDA
While called particularly to consider music copyright
problems, the special convention of the National Association of
Broadcasters in Chicago on Friday also will take up the matter of
maintaining neutrality in war news broadcasts.
The NAB Directors will meet on Wednesday, preceding the
convention, and the IRNA and independents will meet on Thursday.
All sessions are to be at the Palmer House,
XXXXXXXX
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9/12/39
CAUTION URGED IN RADIO WAR NEWS BROADCASTS
Broadcasters were warned to exercise both caution and
restraint In broadcasting war news either from this country or
foreign capitals In a statement on "radio neutrality" In the
current "NAB Reports", published by the National Association of
Broadcasters.
"Promulgation of the Neutrality Proclamation by Presi¬
dent Roosevelt last Tuesday has quite naturally raised In the minds
of broadcasters the question *What is radio neutrality?*" the NAB
statement said.
"In considering the broad Implications of the Neutrality
Proclamation in the broadcasting field, Headquarter feels that the
caution exercised by broadcasters should go to points even beyond
those covered by the Controversial Public Questions and the News
sections of the new NAB Code,
"Though it is felt every broadcaster has endeavored to
broadcast factual news, free from bias or editorial opinion, even
before the Code was adopted last July, Headquarters would like to
point out that the method and manner in which news is handled dur¬
ing the present situation is being as carefully scrutinized as is
the content of the news broadcast itself.
"While it should not be necessary for any newscaster or
announcer to change his style of delivery, it should be pointed out
that all news broadcasts, especially news 'flashes* interrupting
another program already on the air, should be handled with the
greatest degree of restraint.
"News matter which is obviously sensational, though
thoroughly accredited to a responsible source, should be carefully
checked and confirmed as far as possible before it is broadcast.
Statements in conflict coming from censored belligerent sources
should be paired and notice to the public should be given that all
news from belligerent countries has passed under the blue pencil
of the government censor before becoming available to American
listeners.
"Though President Roosevelt stated that the declared
neutrality of the United States did not deprive the right of the
Individual to his own opinion, broadcasters face a difficult and
complex problem in alloting time to speakers. In general. Head¬
quarters feels that the Public Controversial plank of the new Code
is a safe guidepost for members to follow. While the Code is not
yet in effect (the effective date is to be announced by the NAB
Board at its meeting next week) , it will be recalled that the Code
bars all discussion of public controversial matter from paid time
(except political - during a political campaign) and requires that
time for such discussions shall 'be allotted with due regard to
all the other elements of balanced program schedules and to the
degree of public interest in the questions to be presented.
- 8 -
9/12/39
Broadcasters shall use their best efforts to allot such time with
fairness to all elements in a given controversy. '
”In pointing out the seriousness and complexity of the
problem of radio neutrality, Headquarters would like to quote two
paragraphs from a recent column by Dorothy Thompson published this
week:
"'It would seem essential that while we are considering
means of cushioning this country against the economic shock of
war, and reconsidering whether the existing neutrality legislation
is actually in the best interests of our neutrality, we should
also have a policy adopted regarding propaganda, and particularly
regarding propaganda on the air.
'"The spoken word is provably far more inflammatory than
the written word. The human voice is a more potent conveyor of
emotion than is the printed page; it is less likely to appeal to
reason; it is more capable of being misunderstood; from time im¬
memorial it has been used to sway and control masses, and this pos¬
sibility has been incalculably augmented by the radio and the power
of reaching millions. '
"Headquarters is aware of the delicate problem of station
management and supervision raised by the war period. It is closely
following each development on the Washington front and within the
industry so as to be in a position to advise members when unforeseen
problems arise. A fuller discussion of the matter will be made at
the convention next week. "
xxxxxxxxxx
BRITISH BACK STATION IN LIECHTENSTEIN
Recently a private company, presumably backed by British
capital, has established a broadcasting station in the Principal¬
ity of Liechtenstein under the name of "Liechtenstelnische Rund-
spruch A. G-, ", Vaduz, according to the American Consulate General
at Zurich, Switzerland. This company is at present operating a
small broadcasting station of 1.5 kilowatts on 209.9 meters.
Beginning March 4, 1940, it is expected to operate on 198.7 meters.
In addition to this station, the same company is contem¬
plating the construction of a short wave station beamed on G-reat
Britain and North Merica. This station would carry commercially
sponsored programs similar to those which the long wave station in
the Grand Duchy of Luxemburg now transmits to Great Britain.
xxxxxxxxx
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9/12/39
TRADE NOTES
Three new pieces of television test equipment, a piezo¬
electric calibrator, a 5- inch wide-range oscillograph, and a tele¬
vision alignment oscillator, have been announced by the RCA Manu¬
facturing Company. All three have been carefully designed in
accordance with present-day television receiver development, and
in addition include provision for future television progress,
thus minimizing the possibility of obsolescence. The Instruments
have been designed primarily for servicing RCA Victor television
receivers, but may be adapted readily to other present day sight-
and-sound receivers.
Offices have been opened in the New York Herald Tribune
building for the new radio checking service announced by Burrelle's
Press Clipping Bureau. The Radio Reporter, first of its kind in
the clipping bureau field, aims to perform the same functions in
collecting news .mentions on the air of interest to its clients as
Burrelle's has done for more than 50 years with newspapers and
magazines. Coverage will be world- wide in scope, with trained
newsmen "listening-in" 24 hours a day, it was announced.
The Farnsworth Radio and Television Corporation has com¬
pleted arrangements with the Commercial Credit Company, Baltimore,
for financing of dealers' sales of Farnsborth products.
Friday, September 22nd, will be de Forest Day at the New
York Fair, and the veteran inventor will be there in person, as
the guest of the Fair and of the Veteran Wireless Operators'
Association, of which latter organization he is honorary president.
Members of the Washington Institute of Radio Engineers
Monday night listened to radio signals broadcast from a strato¬
sphere balloon that rose 10 miles in less than an hour. The bal¬
loon carried a 2-pound weather station and a radio transmitter.
The engineers by listening to the broadcast, learned that at
50,000 feet the temperature was 58 degrees below zero and the humid¬
ity was 30 percent.
An increased operating schedule to Europe for General
Electric's international radio station WGEO that will provide
European listeners with three more hours of American programs
daily has been announced by C. H. Lang, Manager of Broadcasting.
Directional antennas will be used, pointed on London, for the
additional service from 3 to 6 P.M.EST. It was also announced
that the G. E. Station KGEI, Treasure, Island, Calif. , will add a
new frequenty to its two already in use. The station will broad¬
cast on 6,190 kilocycles, 48.46 meters, from 9 P.M. to midnight PST.
xxxxxxxxx
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A.F.of L. REJECTS C.I.O. MERGER PROPOSAL
Frank B, Powers, President of the A. F. of L. Commercial
Telegraphers’ Union, this week rejected a proposed merger with the
C.I.O. American Communications Association. The proposal was made
by Mervyn Rathborne of New York, President of the A. C.A., as the
C.T.U, opened its convention in Chicago.
"This C.I.O. outfit spent two years and $100,000 trying
to destroy our union", Mr. Powers said. "Now that they have failed,
they ask us to unite with them. Such tactics are a sample of the
communistic methods employed by the group sponsored by John L. Lewis
Mr. Powers declared that the communication from Mr.
Rathborne would not even be officially received by the convention.
Mr. Rathborne 's letter stated that the only objection to
a merger is whether the resulting union should affiliate with
the C.I.O. or the A. F. of L. He suggested that this question
be settled "democratically" by the memberships of the unions.
Mr. Powers said the C.I.O. union had won most of its
members by closed shop agreements obtained by means of sit-down
strikes, a method, he said, which the commercial telegraphers have
spumed.
Sixty delegates, twenty of them from Canada, represent
members employed by press wire services, brokerage firms, leased
wire operators and radio telegraph companies.
xxxxxxxx
SPAIN URGING WIDESPREAD USE OF RADIO SETS
While the Nazi government of Germany has confiscated all
radio sets other than those that can receive programs and news only
from local stations, in Spain the Franco government has so encour¬
aged the making and transportation of sets that the Hendaye cor¬
respondent of The London Times conjectures that Spain will soon
have more radio fans in proportion to the population than any other
country in Continental Europe. There is no tax on sets and the
import duties have been lowered.
This does not apply to broadcasting apparatus, however,
the possessors of which pay a high license and are under constant
government surveillance. Official information and entertainment
are broadcast from a semi-government organization recently establish
ed on the same lines as the BBC in London.
XXXXXXXXXX
11 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
■-'•'■‘'■--•'■''■■‘in’ C’j . in:. I
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Slip 1 0 1539
! .1!
17
ij
P.M.
INDEX TO ISSUE OF SEPTEMBER 15, 1939
4
WMCA Denies Illegal Broadcast; Explains Error . 2
Pershing Lauds Radio, Press For War News . ...4
NAB Fomally Adopts Code; Talks Copyright . . . 5
FGC Pleased With War News Code Adoption . 6
FCC To Probe Bar On Anti-Coughlin Speech . 6
Labor S-W Station Denied Renewal . T
FCC Amends Rule On Disk Announcements . 8
Local Station Denied Capital Applicant
Crosley Takes On Football Team Too!
Bullock Named G-. E. Unit Ad Manager.
Trade Notes . 10
RCA Traffic Superintendent Dies . 11
"Big Business And Radio" Bares Deals . 11
No. 1157
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WMCA DENIES ILLEGAL BROADCAST; EXPLAINS ERROR
Donald Flamm, President of the Knickerbocker Broadcast¬
ing Company, on Thursday filed a formal answer with the Federal
Communications Commission, denying the charge that Station WMCA
had broadcast decoded military information of the British and
French in violation of an International treaty.
Previously, in an Informal explanation to the press,
he stated that the FCC action resulted from over- zealousness on
the part of the WMCA Promotion Department. All news broadcasts,
he said, came from accredited news agencies, and the station at
no time employed a code expert to pick up the secret military
information for WMCA’ s use.
A hearing is expected to be held by the FCC, but indi¬
cations are that no drastic action will be taken by the Commission
if the facts are proved as related by Mr. Flamm.
William Weisman, Vice-President of the Knickerbocker
Broadcasting Co. , filed the affidavit with the FCC in a.nswer to
the Commission’ s order to show cause why its license should not be
revoked. The affidavit follows, in part:
’’Knickerbocker Broadcasting Company, Inc. (WMCA) neither
directly nor indirectly intercepted or caused the interception of
secret radio communications sent by the governments of Germany and
Great Britain, respectively, or any said governments to govern the
movement of said forces in time of war. Neither has Knickerbocker
Broadcasting Company, Inc. (WMCA) at any time, under any circum-
staices, intercepted any code messages of any government in time of
war or any other times.
”In the course of its daily broadcasting schedule,
Knickerbocker Broadcasting Company, Inc. (WMCA) has broadcast
news dispatches, including those emanating from the governments
of Germany and of Great Britain. However, Knickerbocker Broad¬
casting Company, Inc. , (WMCA) has no news- gathering bureau of its
own and relies entirely for its sources upon accredited news¬
gathering agencies.
”In connection therewith, Knickerbocker Broadcasting
Company, Inc. (WMCA) has a written contract with King Features
Syndicate, Inc. (international News Service DepartraentK By
virtue of said agreement there is installed in the offices of
Knickerbocker Broadcasting Company, Inc. (WMCA) a news ticker to
which is transmitted the regular news service of King Features
- 2 -
9/15/39
Syndicate, Inc. (International News Service Department), Knicker¬
bocker Broadcasting Company, Inc. (TOGA) edits the said news
reports and prepares the same for broadcasting.
"Because of the unusual situation In Europe during the
past few weeks, and of the great interest of the American people
In every phase of news emanating from Europe, Knickerbocker Broad¬
casting Company, Inc. (IMCA) entered into an agreement with the
New York Herald Tribune, by the terms of which the New York Herald
Tribune has furnished Knickerbocker Broadcasting Company, Inc. ,
TVfMCA) , for broadcasting purposes, special news flashes which it
has received from its own direct sources and correspondents in
Europe.
"By virtue of an oral arrangement with the New York
Daily Mirror there is broadcast over the facilities of Station
MCA, once each day for 15 minutes, a news program emanating di]>-
ectly from the editorial rooms of the said New York Dally Mirror.
These broadcasts have always consisted of news items which had
already appeared in that publication.
"I state upon my oath that Knickerbocker Broadcasting
Company, Inc, (WMCA) has not had, nor has it now, any knowledge of
any secret or other code used by the governments of Germany or of
Great Britain, or of any of the departments of either of said
governments.
"By this affidavit I swear that Knickerbocker Broadcast¬
ing Company, Inc. (WMCA) has not broadcast any news item or other
information which it obtained illegally or which Knickerbocker
Broadcasting Company, Inc. (WIJICA) had any reason to believe was
obtained illegally by any other person, firm or corporation. In
fact, all of the news items which were broadcast by Knickerbocker
Broadcasting Company, Inc. (WMCA) have appeared in the daily news¬
papers in the regular course of publication.
"I am aware of the advertisement which appeared in the
Radio . Dally of September 6, 1939, in which is reproduced excerpts
from columns published in New York City newspapers, and in which it
is stated that WMCA had decoded secret orders of the governments
of Germany and Great Britain. Knickerbocker Broadcasting Company,
Inc. (WMCA) does not control, directly or indirectly, in any
manner, either the said publications or any of the writers of the
said columns. Knickerbocker Broadcasting Company, Inc. (WMCA)
used the said items in the advertisement only as an indication of
the fact that WMCA did broadcast the news items in advance of
other radio stations or in advance of their publication in the
daily newspapers in New York City, but not for the purpose of
advertising that WltdCA had in fact intercepted or decoded any of
the secret orders of Germany, Great Britain or any other government."
3
9/15/39
Earlier, Mr. Flamm explained the origin of the Radio
Daily advertisement, thus:
"The placing of an advertisement in a radio trade paper,
using these newspaper clippings, was a promotional stunt execut¬
ed by our Advertising Department, designed to indicate WMCA's
alertness in the presentation of war news. Desirous of protecting
its news sources in the interest of competitive reporting, HUMCA
made no effort to correct erroneous Impressions of its coverage
which were rumored. "
George Ross in The New York World- Tele gram of August 31,
according to the material submitted by HilMCA for The R8.dlo Daily
advertisement, said:
"MCA flashed the British Admiralty orders and the
secret German naval orders before these became public knowledge.
And the story of these exclusives is this: Several weeks ago the
station hired an expert of naval code, who stationed himself near
the short-wave receiver of a local morning newspaper. As secret
orders from shore to ship were flashed from England and Germany,
he quickly decoded them and rushed his findings to the micro¬
phones. "
Attributed to Ben Gross in The New York Daily News,
WMCA's advertisement called attention to the airing of a British
Admiralty code message "ordering the closing of the Mediterranean."
xxxxxxxxxx
PERSHING LAUDS RADIO, PRESS FOR WAR NEWS
General John J. Pershing, in a statement issued in
Washington on his seventy-ninth birthday, praised the radio and
press for its coverage of the European crisis and war developments.
"My information of the military situation at home and
abroad is largely common to the general public, which is, I believe,
about as well informed regarding the daily progress of the tragic
events in Europe as the government officials, thanks to the press
and radio", he said.
Among his visitors at Walter Reed Hospital, where he is
undergoing a periodical check-up, was fla j . Gen. James G. Harbord,
former Chief of Staff under Pershing, now Chairman of the Board
of the Radio Corporation of America.
XXXXXXXXX
4 -
9/15/39
NAB FORMALLY ADOPTS CODE; TALKS COPYRIGHT
Meeting In a special convention in Chicago this week¬
end, the National Association of Broadcasters adopted its code
of self- regulation, drafted early this Summer, and authorized
Neville Miller, President, to appoint a Committee "fully empowe2>-
ed to interpret and enforce the code throughout the industry. "
At the same time it considered the later code relating
to war news broadcasts, already adopted by the networks, and
indicated it would adopt a similar policy.
Discussions were underway as to vdiat the NAB will do
about the music copyright problem.
Beginning October 1st, all member stations will provide
free time for the discussion of controversial public issues,
the Board of Directors of the NAB announced.
Time may be sold for political broadcasts only,
"The political broadcasts excepted", Mr. Miller explain¬
ed, "are any broadcasts in connection with a political campaign
in behalf of or aga.inst the candidacy of a legally qualified
candidate for nomination or election to public office, or in
behalf of or against a public proposal which is subject to ballot.
This exception is made because at certain times the contending
parties want to use and are entitled to use more time than broad¬
casters could possibly afford to give away, "
The policy was adopted, he said, because without it the
radio forum could gravitate almost exclusively to those with the
greater means to buy time. The code, he said, insures that radio
will remain a free and democratic form of public discussion. He
termed it an "outstanding example of voluntary industrial self¬
regulation, conceived and executed in the public interest, "
The code also requires that news broadcasts be factual
and without bias or editorial opinion. It provides that children's
programs be based upon "sound social concepts" and that no one
shall be permitted to use radio to attack another' s race or
religion.
XXXXXXXX
The Catawba Velley Broadcasting Company, Hickory, N.C. ,
was granted a construction permit this week by the Federal
Communications Commission to use 1370 kc. , 100 watts night, 250
watts local sunset.
XXXXXXXXX
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9/15/39
FCC PLEASED WITH WAR NEWS CODE ADOPTION
While refraining from a formal endorsement, members of
the Federal Communications Commission this week made no secret of
their approval of the action taken by the major networks and the
National Association of Broadcasters in adopting a self-imposed
code restricting war news broadcasting.
"I feel very optimistic over the way that the industry
has shouldered its responsibility", James L. Fly, Chairman of
the FCC, commented.
While the special three-man committee, composed of
Chairman Fly and Commissioners T.A.M. Craven and Thad H. Brown,
will continue its study of the relation of the European war to
U. S. radio, indications are that no drastic curbs will be placed
on the broadcasting industry as a whole.
The Chairman is Inclined to proceed cautiously, and,
as Stephen Early, secretary to the President, suggested, let radio
alone so long as it behaves itself. He nees no need at this time
for the promulgation of any iron-clad rules governing news broad¬
casting and comments on the war.
xxxxxxxxx
FCC TO PROBE BAR ON ANTI-COUGHLIN SPEECH
An investigation of the refusal of Station WJR, Detroit,
to broadcast a speech by the Rev. Walton E. Cole, of the First
Unitarian Church, Toledo, 0. , attacking Father Coughlin, will be
undertaken by the Federal Communications Commission, according to
T. J. Slowie, Secretary.
Reverend Cole, in a complaint to the FCC, charged that
WJR was^ refusing to afford both sides of an issue to speak over
its facilities. WJR is the key station in the Coughlin hook-up.
"Insofar as your complaint states WJR is acting as a
vehicle for one-sided propaganda, rather than for free discussion
of controversial subjects, it will be investigated by this Com¬
mission and the incident described considered as it may bear upon
whether WJR is operating in the public interest", Mr. Slowie
replied.
XXXXXXXX
6
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9/15/39
LABOR S-W STATION DENIED RENEWAL
The Federal Communications Commission this week denied
the application of the Chicago Federation of Labor for renewal of
license for international broadcast station W9XAA, and dismissed
without prejudice the application of Radio Service Corporation of
Utah for consent to voluntarily assign the license of Station
W9XAA from the Chicago Federation of Labor to the Radio Service
Corporation of Utah and move the station's location from York
Township, Ill. , to Saltair, Utah.
The Commission's conclusions based upon its proposed
findings included the following;
”The licensee of international broadcast station W9XAA
failed to establish that it was engaged in a program of research
and experimentation contemplated by the Commission's rules govern¬
ing broadcast stations in the international service, in effect
during the period in which the license for this station was out¬
standing.
"International broadcast station W9XAA was not maintain¬
ed and operated in accordance with the Commission' s rules governing
broadcast stations in the international service, in effect during
the period in which the license for this station was outstanding.
"The Chicago Federation of Labor is not technically
qualified to operate international broadcast station W9XAA in
accordance with the rules of the Commission governing broadcast
stations in the international service and has not shown that it
is able and willing to finance the operation of such station.
"The granting of the application for renewal of the
license of international broadcast Station W9XAA will not serve
public interest, convenience or necessity.
"In view of the foregoing conclusions, it is unnecessary
to consider the application for assignment of the license of inter¬
national broadcast station W9XAA from the Chicago Federation of
Labor to the Radio Service Corporation of Utah since the Commis¬
sion' s refusal to renew the license of international broadcast
station W9XAA leaves the Chicago Federation of Labor with no
license to assign to the Radio Service Corporation of Utah, and
the application for consent to assignment of license should, there¬
fore, be dismissed. "
xxxxxxxx
The U. S. Civil Service Commission has announced an open
competitive examination for the Job of air carrier inspector in
the Civil Aeronautics Authorityat ^3,800 a year.
XXXXXXXX
- 7 -
9/15/39
FCC AMENDS RULE ON DISK ANNOUNCEMENTS
The Federal Communications Commission this week amended
Section 3.90 (a) (2) of the Standard Broadcast Rules by deleting
the words ’’together with the name or title of each" and adding
the words "of the complete program" so that the rule will read:
"...(2) An entry briefly describing each program
broadcast, such as ’music’, ’drama’, ’speech’, etc.,
together with the name or title thereof, and the sponsor’s
name with the time of the beginning and ending of the com¬
plete program. If a mechanical record is used the entry
shall show the exact nature thereof such as ’record’,
’transcription’, etc., and the time it is announced as a
mechanical record. If a speech is made by a political
candidate, the name and political affiliations of such
speaker shall be entered. ’’
The Commission’s action was taken following complaint
that the previous rule requiring a log entry of the names of the
particular records used imposes a financial burden, particularly
on local stations. The Commission also stated that a further study
would be made of the rules governing log entries to insure that
they impose no unnecessary burden on any particular group of
stations.
xxxxxxxxx
NAZIS STAGE TELEVISION SHOWS IN LATIN AMERICA
The first television exposition to be held in Chile,
staged this Summer, was held under the auspices of, and conducted
by engineers of the "Institute of Investigation of the German
Mails", an official agency of the German government and all of
the eqi ipment used was of German manufacture, according to the
American Commercial Attache at Santiago.
"The event was given wide publicity in the press and
appeared to be another effective example of German propaganda
in South America", the report stated.
"The exhibition is apparently on a tour of South Ameri¬
can and the some 20 truckloads of equipment were shipped to Chile
from Buenos Aires where it is understood a similar exposition was
held. "
XXXXXXXX
~ 8 -
LOCAL STATION DENIED CAPITAL APPLICANT
The Federal Communications Commission this week denied
the application of Lawrence J. Heller, attorney, for a construc¬
tion permit to establish a new station in Washington, D, C. to
operate on 1310 kc. ,**' with 100 watts night, 250 watts local sun¬
set, unlimited time, and application for a special experimental
authorization to construct and operate a synchronous station in
Washington, to be used in conjunction with the facilities request¬
ed for a broadcast station, with 10 to 100 watts power, unlimited
time. The frequency formerly was used by Station WOL.
'•The Commission's plan of allocation contemplates the
use of local frequencies by stations proposing to serve small
centers of population and the adjacent rural areas", the FCC
explained. "Regional frequencies are set aside to provide
service to large centers of population, such as the Washington,
D. C. metropolitan district, and the contiguous areas. The
assignment requested for a construction permit, is for a station
to operate on a local frequency. The station proposed cannot
serve the large number of people residing within substantial
portions of either the metropolitan district or the District of
Columbia itself. Accordingly, taken by Itself, this application
would have to be denied. "
xxxxxxxxxx
CROSLEY TAKES ON FOOTBALL TEAl/I TOO.'
Powel Crosley, Jr. , owner of Stations WLW and WSAI,
Cincinnati, who manufactures radios and automobiles, etc. , and
is President of the Cincinnati Reds, National League leaders, has
taken on a professional football team to look after in his spare
time.
He has acquired a financial interest in the Cincinnati
Bengals, ^diich made a good record last year in its first season.
Station WSAI will have exclusive right to broadcast games from
Crosley Field.
xxxxxxxxx
BULLOCK NAMED G.E. UNIT AD MANAGER
Boyd W. Bullock, for the last seventeen years associated
with the Publicity Department, and now Assistant Manager of Broad¬
casting, of the General Electric Company at Schenectady, has been
appointed Advertising Manager of the company's Appliance and
Merchandise Department at Bridgeport, Conn., H. L. Andrews, Vice-
President in charge of appliance activities, announced this week.
Since 1933, Mr. Bullock, a native of Evansville, Indiana, has been
Assistant Manager of the Publicity Department. He will direct the
advertising and promotion program for G.E. products sold to cop-
suraers through retail channels and for products of the Plastics
Department at Pittsfield, Mass.
xxxxxxxxxx
9
9/15/39
0 0
TRADE NOTES : ;
Effective Sunday, September 24, Station WKRC will become
the basic outlet for the Mutual Broadcasting System in the Cincin¬
nati area. Operating with 5000 watts day and 1,000 watts night,
on 550 kilocycles, WKRC is under contract of sale to the Cincinnati
Times-Star. subject to approval of transfer by the Federal Com¬
munications Commission. Former owner was the Columbia Broadcasting
System.
Transradio News Service, in a note to station clients
last week, warned them against falling for the scarehead war news
sent out by the other press associations. The note was the most
sizzling blast of criticism that one news collecting agency has
directed against another since rivalry began in furnishing news
for radio.
Eugene Lyons, well knoxni newspaperman, foreign corres¬
pondent, editor and writer is featured as commentator by Station
WMCA^ New York, in a new series of nightly programs which began
this week.
After the reopening of radio telephone service Wednesday
to six more European countries, a continuous flow of transatlantic
conversation passed over the new circuits of the American Tele¬
phone and Telegraph Company to Italy and the Netherlands, accord¬
ing to the New York Times. Telephone service was resumed with
Belgium, Bulgaria, Denmark, Germany, Lithuania and Yugoslavia.
On Tuesday service was reopened with Holland, Hungary
and Switzerland, the New York- Rome circuit halving been opened on
Monday,
A feature of London’s Radiolympia exhibition which closed
a short time ago was the section devoted to television receivers,
according to World- Radio. The keynote of the display, the BBC
organ reported, was “Television to suit all pockets”. The prices
ran as low as 24 pounds, or approximately |lbo.
"No fewer than five sizes have been standardized for
direct vision sets; approximately 5 in. by 4 in., 6 in. by 5 in.,
8 in. by 6 in., 10 in. by 8 in., and 12 in. by 10 in., while a
projected image' receiver gives a picture 18 in. by 14-1 in. ", the
reviwer stated.
xxxxxxxxxx
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9/15/39
RCA TRAFFIC SUPERINTENDENT DIES
Walter E. Wood, Traffic Superintendent of R. C.A. Com¬
munications, Inc., died Thursday at his time in Dumont, N. J. ,
after a nine-month illness. Mr. Wood, a World War veteran, was
53 years old.
Mr. Wood was bom at Shomecliff Camp, near Folkestone,
England, a British military encampment. His late father was a
British Army officer.
In 1919 Mr. Wood was appointed Superintendent at the
Chatham (Mass.) station of the Padio Corporation of America.
Upon the closing of that station in 1922, he became Assistant
Superintendent of the company's Central Radio Office in New York.
He became Superintendent of Traffic for R. C. A. Communications in
1937. He was a naturalized American.
Surviving are his widow, Mrs. Xena Wood, and two sons,
Walter C. and Robert Wood, all of Dumont.
xxxxxxxxxx
"BIG BUSINESS AND RADIO" BARES DEALS
Volume two of Dean Archer's history of radio has just
come off the press, with the title "Big Business and Radio”. For
almost five hundred pages the author uncovers the inside story of
agreement and disagreement among the leading American electrical
and communication companies, giving indisputable proof of his
findings in the form of quotations from actual letters and con¬
tracts. The volume sells for ^4.00 at the American Historical
Society, 80 Eighth Avenue, New York.
"I believe that this book will be the final authority
on the subject", states General Harbord, RCA's Chairman of the
Board. "You have built yourself a monument in this great work. "
"A wealth of detail, research, precision and labor", is the opinion
of another reviewer.
The final chapter of the book is devoted to David
Samoff' s vision of radio's future.
XXXXXXXXXX
- 11
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
2 0 1939
OF SEPTEMBER 19, 1939
Rs.dio To Figure, Not Legislatively, At Extra Session . 2
Transradio Plans Facsimile-Newspaper Chain.
Radio Prevents Recurrence Of ’’Bottle Neck”.
NAB Forms Music Unit To Fight ASCAP Control . . . 4
British Radio To ’’Carry On”, Says BBC Organ . . . 5
Edgar Bill Chairman of Radio Code Committee . 6
Capital Amateurs Take Neutrality Pledge . 7
Trade Notes . . . . . . . . . 8
WLW Distributes War Maps To Aid Listeners... . 9
Berlin Directs S-W Warning To U. S . 9
CBS Lends Programs To Major Armstrong . . . 10
Mutual Celebrates Sixth Year of Operations . 11
No. 1158
INDEX TO ISSUE
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September 19, 1939.
RADIO TO FIGURE, NOT LEGISLATIVELY, AT EXTRA SESSION
While radio will have an important role in covering
the highlights of the extra session of Congress, which begins
Thursday, and doubtless will come in for some debate on the
Senate and House floors from time to time. Administration sources
have not revealed any plans for new legislation affecting broad¬
casters.
The Special Federal Communications Commission Committee
which is studying the effects of the European war on American
radio has come to no final decision, it is understood, but indi¬
cations are that it will not propose any legislation at this
time. At the regular session, beginning in January, however,
the FCC may ask for an increased staff to keep closer check on
radio communications.
Much will depend, of course, upon developments during
the next few weeks, but the Communications Act already gives the
President ajnple powers to meet an emergency if radical changes
in radio control are deemed necessary.
While there are no indications at present that censor¬
ship will be invoked except upon the entrance of the United States
into the war, officials are looking ahead and wondering where the
radio control will be vested in such an eventuality.
Members of the FCC refuse to discuss the matter at
this time, but it is known that some of them feel that the Com¬
mission is best equipped to act as radio's censor althou^ War
Department planners hold that an emergency Military Board should
direct censorship control of both the press and the radio.
When censorship is invoked, as it is bound to be if war
comes, broadcasters hope that they will be given as much freedom
as the press. Whether the Job of policing the stations would be
transferred in part to an emergency or military agency is con¬
jectural. Far-seeing leaders in the radio industry believe they
would fare better in the long run if the Federal Communications
Commission does not do the Job, for experience has shown that
emergency military agencies expdre as a rule when peace returns
but civil authorities are not easily shorn of authority once
obtained.
Even in ■war-time, it is likely, the American listener
will be able to tune in his favorite swing band or comedian,
regardless of how his news may be edited before being broadcast
- 2 -
or published. It is not conceivable, moreover, that Americans
would be deprived, as have the Germans, of the right to tune in
foreign short-wave stations if they desired to do so.
Great Britain may be cited as an example of how Ameri¬
can radio may be expected to act during a war Involving this
country. There the government, while censoring news, is encourag¬
ing the broadcasting of ll^t entertainment. It helps morale,
the English believe.
XXXXXXXXXX
TRANSRADIO PLANS FACSIMILE-NEWSPAPER CHAIN
A newspaper to be started late this Fall or early this
Winter in Hartford, Conn., may be the first in the chain of
facsimile-processed papers planned by Herbert Moore, head of
Transradio Press Service. At the outset the new paper will
receive its news from Transradio by teletype, as there can be no
prefabrication until a sufficient number of papers are signed up
to make the idea economically feasible, Mr. Moore explained.
After the paper has established a suburban and rural circulation,
it plans to use facsimile broadcasting, in conjunction with a
local station, to distribute its papers to subscribers in these
sparsely populated areas, Mr. Moore added.
xxxxxxxxxxx
RADIO PREVENTS RECURRENCE OF "BOTTLE NECK"
Radio has prevented recurrence of the London communica¬
tions "bottleneck” that developed in the World War, the Commerce
Department reported this w^eek.
Though the new European war resulted in a tremendous
increase in volume of cable, radio and telephone traffic between
this country and Europe, existence of direct, high-speed radio
telegraph circles between the United States and over 60 nations
has made possible adequate trans-Atlantic service.
At^ the beginning of the World War, the Department recall¬
ed, London, because of her cable supremacy, was the communications
center of the world. A "bottleneck" therefore developed, greatly
delaying telegraphic communications.
Radio has changed the picture completely, and present
facilities are judged more than adequate to meet the increased war
demands.
Althoth the belligerents have restricted international
telephone service, American telephone concerns have re-established
service yrith Belgium, Denmark, Germany, Lithuania, Bulgaria,
Jugoslavia, The Netherlands, Hungary, Switzerland and Italy, the
Department said.
XXXXXXXXX
2
9/19/39
NAB FORMS MUSIC UNIT TO FIGHT ASCAP CONTROL
A long smouldering resentment against the control of
copyrighted music by the American Society of Authors, Composers,
and Publishers broke into an open attack by the National Associa¬
tion of Broadcasters last week-end at a special convention in
Chicago.
The NAB, preparing to raise what was termed "a war
chest” of $1,500,000, announced it would establish its own supply
of music for radio broadcasting through a nev; corporation to be
known as Broadcast Music, Inc.
The first response of the ASCAP ^/i/as a brief statement
by Gene Buck, President, to the press to the effect that he wonder¬
ed v/here NAB would get its music. Most composers, authors and
publishers, he said, belong to ASCAP. NAB made a similar attempt
to break away several years ago, it was recalled, but subsequently
abandoned the move.
The new NAB project was devised by Sydney M. Kaye,
New York attorney retained by the broadcasters. It provides for
the issuance and sale of stock to the member stations. Neville
Miller, President of NAB, will act as temporary President of
Broadcast Music, Inc. , but executive personnel will be employed.
Broadcasters represented at the Chicago convention
pledged to buy stock in the corporation up to 50 percent of their
payments to ASCAP in 1937. In that year radio paid the copyright
society $3,800,000.
Admitting that ASCAP has substantial control of exist¬
ing music demanded by broadcasters, broadcasters still hope to
obtain an agreement with ASCAP which would look toward payment
only on ASCAP music used, rather than a tax on the station' s
entire income. The objective, NAB declared, is to procure a "per
program" basis of payment, with clearance at the source.
NAB takes the view that the additional catalogs of music
would parallel and act as a partial substitute for the ASCAP
catalog. If necessary, however, the industry would try to get
along on its own music.
The basis on which the $1,500,000 fund would be employed
t-o the convention and approved as proposed. Under
it, $300,000 of the total would be paid by stations for the stock,
the remaining $1,200,000 to be paid for initial "license fees" to
*kere would be 100,000 shares of stock issued
at $1 par value. Of this stock 80,000 shares would be offered
at $5 a share, of which $1 would constitute capital and the remain¬
ing $4 capital surplus.
4
9/19/39
Each broadcaster would be offered that number of
shares which would make the total amount paid for stock equal
to \0% of the broadcasters' 1937 ASCAP fee. To prevent aliena¬
tion of stock, the broadcaster first would have to offer it to
the corporation if he desired to sell.
XXXXXXXX
BRITISH RADIO TO "CARRY ON", SAYS BBC ORGAN
The British Broadcasting Corporation will carry on many
of its normal broadcasting functions throu^out the war as well
as keep the British Empire informed of newsworthy developments,
the Ra.dlo Times , BBC journal, declares.
"Last week on this page we said that broadcasting would
carry on", the Times says. "That promise was based on the know¬
ledge that preparations for any emergency had been made by the
BBC, and that everything was in readiness to make the change from
peacetime broadcasting to broadcasting in time of war. The first
test came on the afternoon of Friday, September 1, when the change¬
over of wavelengths was made. That, as listeners know, was
accomplished as smoothly as even the BBC engineers (who are exact¬
ing in their standards) could desire. During that Friday, broad¬
casting surmounted the difficulties caused by the restriction of
transport and by the black-out. There remained the acid test of
war itself.
"Listeners know the result of that test, too. Broad¬
casting has carried on. From seven in the morning until after
midnight, there is always something on the air. British listeners
can get news, entertainment, lessons for the schoolchildren,
religious services, music - in fact, broadcasting remains one of
the most normal things in an abnormal world.
"^■liat the British listener hears of broadcasting, how¬
ever, is by no means the full output of the BBC. In addition to
the Home Service, which runs for nineteen hours a day (with
further periods in the early morning if there is any important
news) , two other British programs are going out every day. One
is a short-wave service to the whole world, which runs for nearly
twenty-two hours; the other a short-wave service meant primarily
for Europe, aided by the use of the medium wavelength that used
to be known as the medium-wave National - 261.1 metres. Many
listeners in this country have probably picked up these transmis¬
sions by now.
I'These broadcasts, which consist largely of news, are
going o-ut in many different languages. Tliere is a French service
for French Canada, as well as one for France; an Afrikaans service
for South Africa and the Arabic service, which is the one that
has been lea.st affected by the change from peace to wa.r. There
5
9/19/39
are broadcasts in German and Italian, Spanish for Spain and
Spanish for South America, Portuguese for Portugal and Portuguese
for Brazil, and the latest language to be added to the list is
Magyar. Still more are to come .
"In yet another way that is not apparent to the ordinary
listener, the BBC has been busy with a useful* task. Its studios
have been open to American broadcasters speaking from England to
the United States, where interest in the fortunes of Britain dur¬
ing this fateful time is at its height. Night and day, these
broadcasts are going to America, not by means of BBC transmitters,
but from BBC studios. The BBC is not responsible for them, but
it is glad to be able to help the American broadcasters with all
the facilities that it can provide. "
XXXXXXXXX
EDGAR BILL CHAIRMAN OF RADIO CODE COMMITTEE
Preparing to put into effect the National Association
of Broadcasters' Code, Neville Miller, President, this week
appointed Edgar L. Bill, President of lIiIBD, Peoria, Ill. , Chair¬
man of a committee authorized by the Chicago convention to
enforce the rules of conduct. The Code becomes operative October 1.
Ed Kirby, NAB Public Relations Director, will serve as
Committee Secretary. Other members include members of the group
which drafted the self- regulation code last Summer, They are
Lenox R, Lhor, NBC President; Edward Klauber, CBS Executive Vice-
President; T. C. Streibert, WOR-MBS Vice-President; Walter J.
Damm, WTMJ, Milwaukee; Ed Craney, KGIR, Butte, Mont,; Karl C.
Wyler, KTSM, El. Paso, Tex,; Samuel R. Rosenbaum, WFIL, Philadelphia,
Penna. Two additional members will be named later by President
Miller in lieu of Paul W. Morency, WTIC, Hartford, Conn. , and
Herb Hollister, KANS, Wichita, Kans. , who served on the original
code group, but who, as members of the NAB Board, cannot qualify.
TheBoard itself will sit as a sort of "Court of Appeals" over the
Code Compliance Committee.
"The Code is more than an expression of radio policy",
Mr. Miller declared. "It is an outstanding example of voluntary
industrial self- regulation, conceived and executed in the public
interest. "
The Code, adopted at the Atlantic City convention,
requires that radio stations shall provide free time for the dis¬
cussion of controversial public issues in such a way that con¬
flicting^ viewpoints in public matters have a fair and equal
opportunity to be heard. In no event will time be sold for such
purpose, except for political broadcasts.
- 6 -
9/19/39
"The political broadcasts excepted are any broadcasts
In connection with a political campaign in behalf of or against
the candidacy of a legally-qualified candidate for nomination or
election to public office, or in behalf of or against a public
proposal which is subject to ballot. This exception is made
because at certain times the contending parties want to use and
are entitled to use more time than broadcasters could possibly
afford to give away", Mr. Miller said.
This policy governing the discussion of controversial
public issues through radio was adopted, Mr. Miller said, "because
of the natural limitation of radio facilities and of the number
of hours available per day for broadcasting. Without such a
policy, the radio forum could conceivably gravitate almost exclus¬
ively to those with the greater means to purchase time. The NAB
policy insures that radio will remain a free and democratic form
for the fair and many-sided discussion of all public matters. "
The Code further requires that news broadcasts be
factual and presented without bias or editorial opinion. It also
provides that children's programs be based upon "sound social
concepts" and that radio stations continue to cooperate with
educators in the further development of radio as an educational
adjunct. It also provides that no one shall be permitted to use
radio to "convey attacks upon another's race or religion."
While the full Code becomes effective October 1, the
Board ruled that existing commercial contracts shall be respected
for their duration, provided they do not run for more than one
year after October 1, 1939. "New business, competitive with
existing accounts, may be accepted with the same length of com¬
mercial copy as is permitted existing accounts, " The Board dir¬
ected that the new Code Committee "shall immediately make itself
available to resolve doubts of broadcasters as to whether proposed
new business conforms or can be made to conform to the Code."
xxxxxxxxx
CAPITAL AMATEURS TAKE NEUTRALITY PLEDGE
Roy C. Corderraan, Emergency Coordinator for the American
Radio Relay League, and Vice Chairman of the Communication and
Transportation Committee of the District Red Cross, said this week
that Washington amateur radio operators had agreed to special rules
for the conduct of their stations in view of the European war.
Members of the Washington Radio Club, Mr. Corderman said,
had endorsed a policy of refraining from any communications except
those of a strictly amateur character, maintaining an accurate log
of every transmission. They agreed not to communicate with
amateurs in belligerent countries.
XXXXXXXX
7
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-,x
9/19/39
TRADE NOTES
Uberto Neely, member of the WLW musical staff and radio
director of the Cincinnati College of Music, is in general charge
of the Radio Workshop being conducted by that institution this
Fall.
A comprehensive schedule of daily broadcasts especially
designed to bring American listeners complete factua.l coverage of
the European war situation was announced last week by the Columbia
Broadcasting System. Proper balancing of the schedule required
the withdrawal of a number of sponsored and sustaining programs.
The times were decided only after careful study of the best
methods of programming in relation to probable news sources under
conditions created by the war in Europe, CBS officials said.
Tuesday has been adopted as the regular meeting day of
the Federal Communications Commission until further notice. Regu¬
lar broadcast actions will be handled on that day, along with
other routine considerations. Oral arguments will be held on
Thursdays, pursuant to the practice established last year, with
the Motions Docket, presid,ed over by a Commissioner, to be held
Fridays.
In a complaint issued by the Federal Trade Commission,
David H. Fulton, trading as Vendol Company, 1 West Biddle St. ,
Baltimore, was charged with disseminating misleading representa¬
tions in periodical, circular and radio advertisements, concerning
a medicinal preparation designated "Vendol".
G-eorge Crandall, former manager of the concert division
of New York's Federal Music Project, has Joined the CBS Publicity
Department as field representative, according to Louis Ruppel,
Director of Publicity. Mr. Crandall has started a trip which will
take him to principal cities in the East, South, and Middle West
in behalf of CBS sustaining music, education, and drama features.
His itinerary includes all the cities which the New York Phil-
hamonic- Symphony Orchestra will visit on its out-of-town schedule
starting October 28.
XXXXXXXXXXXXXXXX
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WLW DISTRIBUTES WAR MAPS TO AID LISTENERS
Into the mail this week went thousands of copies of an
elaborate WLW war map, detailing European war areas, and distributed
by the station as an aid to both radio listeners and newspaper
readers in following developments in the conflict.
The main portion of the map focuses on Central Europe.
Printed in five colors, it outlines both the Eastern and Western
war fronts, with red swastikas on the Cerman Siegfried Line and
fleur-de-lys emblems on the French Maginot Line. Smaller Polish,
German and French towns all are identified on the map, which
extends northward to picture the Baltic Sea. On the reverse side
is a map of continental Europe, for reference if the Mediterranean
Sea becomes a theater of war.
Expert cartographers were consulted in making the map,
which was drawn with the idea that it would be useful throughout
the conflict. Reference to it by news commentators will make it
possible for listeners to follow much more closely the movements
of troops, and to identify towns bombed, captured, or otherwise
affected.
The first announcement of the map distribution was put
on the air Thursday night, September 7. By Monday morning, orders
for nearly 8,000 had been received, and the daily average now
approximates that amount. A sizable portion of the demand was from
officials of banks, brokerage houses, railroads and manufacturing
concerns.
XXXXXXXXXX
BERLIN DIRECTS S-W WARNING TO U. S.
The Berlin official radio station Monday evening several
times broke into short-wave musical programs to the United States
to warn American listeners to avoid entanglement in European quar¬
rels, to distrust ’’anti-American propaganda" designed to involve the
United States and to refrain from financing another war, the New
York Times reported.
In one of these interruptions a speaker over Stations
and DJD analyzed British propaga.nda methods, as outlined by
Sidney Rigerson in his book, "Propaganda in the Next War". In
another the broadcaster attacked Great Britain' s non-oayment of her
war debt to the United States.
"American listeners", the brop.dcaster exhorted, "wake
np to the un-American propaganda that is being whispered, talked,
shouted to you day after day. It may come through American channels,
out its Sources are not American.
9
9/19/39
"Is it American to wish misery and destruction on
Americans? Is it American to try to entangle America in the Euro¬
pean net?
"Those alien forces that want you for war stop at noth¬
ing. They see to it that your newspapers print false reports that
have no other purpose than to make you feel that was is inevitable.
"Refuse to admit that there is an un-American destiny
for war stronger than the common sense of the American people.
You are free. Stay free.'"
The speaker recalled that "Uncle Sam was called Uncle
Shylock" when the United States sought payment of her war debts
from Britain. These, he contended, are now being discharged by
the American taxpayers, despite Britain' s seizure of wealthy and
productive German colonies.
"There never has been told a stranger story", he added,
"than the story of the way in which Britain has defaulted to the
American taxpayers."
xxxxxxxx
CBS LENDS PROGRAMS TO MJOR ARMSTRONG
Beginning this week, Columbia's evening programs will
be made available to Major Edward H. Armstrong' s 40-kilowatt fre¬
quency modulated experimental station W2XIi,!N, located across the
Hudson from New York City in Alpine, N. J. The station transmits
on a frequency of 42,800 kilocycles, and is said to develop
staticless radio reception.
CBS plans to make extensive tests in the field of engi¬
neering and auditory perspective to determine the scope of
Arastrong' s invention and to see how it can be applied toward
serving the public in the field of radio broadcasting.
Major Armstrong, Professor of Electrical Engineering at
Columbia University, is an outstanding inventor in the radio and
electronic field. He is well-known as the inventor of the super-
hetrodyne circuit which has been universally adopted for radio
receivers.
XXXXXXXXX
10
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9/19/39
MUTUAL CELEBRATES SIXTH YEAR OF OPERATIONS
The Mutual Broadcasting System observed its fifth year
of operations last Friday. The growth of the Mutual network marks
the most rapid expansion in radio history. MBS was formed on
September 15, 1934, by WOR, Newark; WG-N, Chicago; WLW, Cincinnati,
and WXYZ, Detroit. It was officially recognized as America's
third national network when Mutual's programs started on October 2,
1934.
The first interchange of programs with the Canadian
Broadcasting Corporation was effected on June 1, 1935. The
initial transatlantic program was carried over Mutual on its first
anniversary, September 15, 1935.
Mutual grossed $1,000,000 in billings for the 1934-35
fiscal year. For the year 1936, Mutual's billings exceeded
$2,000,000. Total billings for twelve months of 1938 were
$2,920,323, marking the largest year's total in the history of
the network.
President W. E. Macfarlane of Mutual announced on
June 27, 1936 that the network would become affiliated with the
Don Lee network on the Pacific Coast.
The Colonial Network of New England became affiliated
with Mutual on July 1, 1936, with Boston's WAAB as a basic member
station. Other outlets announced their affiliation with Mutual
soon after transcontinental plans were outlined. The Iowa Network
and the Central States Broadcasting System joined in the latter
part of 1936. On January 1, 1937, Mutual's list of affiliates
totaled 38 in the United States and KGMB in Honolulu.
Mut’oal's California affiliate, the Don Lee Network,
became first to conduct daily television demonstrations on the
West Coast.
The newly- formed Texas State Network, formed by Elliott
Roosevelt, affiliated 23 more stations with Mutual on September
15, 1938, swelling the list to 107.
Mutual's facsimile network began operation on March 11,
1939, with WGNj WLW and WOR. WHK joined later.
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF SEPTEMBER 22, 1939
Amateurs Warned; Two Licenses Suspended .
WMCA Hearing Scheduled By FCC .
RCA Loses Primary Radio Contact With Geneva .
Radio Good-Will Medium, Engineers Told By Britisher
U. S. Station Broadcasts Musical Pitch . . .
De Forest Says Radio Is Potent Weapon . .
"Tara" Craven Likes Turkey, Pie; Hates Parsnips,..,.
Atlantic City Paper Protests "Smelly Bulova Deal". .
Reich Plans Visual Set; BBC Quits Television .
Mexican Authorities Hunt Suspected Radio Spy .
Trade Notes . . . . . . . 9
New Radio BoOk Covers Field Thoroughly . ...» . 10
Mo. 1159
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1
AMATEURS WARNED; TWO LICENSES SUSPENDED
America's 60,000 radio amateurs, who are credited with
many heroic services in peacetime, yesterday were warned by the
Federal Communications Commission to obey regulations strictly
because of the international situation.
The occasion for the warning was the disciplining of
two amateurs for violation of FCC rules. The customary punish¬
ment of three months' suspension of licenses was doubled, it was
explained, as an example to other amateurs.
FCC officials indicated that radio amateurs probably
would be the first to feel the hand of censorship in event the
United States goes to war.
The Commission warned that further unauthorized activ¬
ities, even during American neutrality, may result in the curtaiL
ment of amateur operations generally.
Meanwhile, the American Commercial Attache at Ottawa
informed the Commerce Department that amateur stations in Canada,
all of which operate under licenses as amateur experimental
stations issued by the Radio Division of the Department of
Transport, have been closed down "for the present time" and
equipment placed "in an inoperative condition" under an instruc¬
tion issued by the Government. The action was attributed to war
conditions by officials of the Department of Transport. The
order covers "all amateur sending and receiving stations", of
which approximately 3,760 were licensed in Canada.
XXXXXXXX
WMCA HEARING SCHEDULED BY FCC
The Federal Communications Commission this week ordered
a public hearing for next We^iesday in connection with the alleg¬
ed interception and broadcasting of military secrets of Germany and
Great Britain by Radio Station WMCA in New York City.
The Knickerbocker Broadcasting Co., Inc., license of
WMCA, through William Weisman, its Vice-President, last week fil¬
ed a general denial.
2
9/22/39
The Commission stated that the reply appeared to be
incomplete and was not a forthright compliance with original
order for disclosure of all the facts. The Commission also dis¬
closed that it had made its own investigation of the alleged
incident.
The Commission has the power to revoke the license of
the station.
It was learned at the FCC offices that messages to
the British and German fleets were addressed as a broadcast to
all vessels and were not specifically directed to particular
ships. According to the record, the messages were picked up
by a radio receiver in a newspaper office in New York and sent
out over its regular news service, in the course of which WMCA
picked it up and broadcast it.
The Communications Act makes it a criminal offense for
any one to disclose the contents of an addressed message.
It was explained by Commission experts that it has no
jurisdiction over owners of radio receiving sets and that any
disclosure of addressed messages which would be considered a
violation of the Act would have to be referred to the Department
of Justice for action in the courts.
XXXXXXXX
RCA LOSES PRIi'IARY RADIO CONTACT WITH GENEVA
The Federal Communications Commission this week can-
called the authority of the R. C.A. Communications, Inc., to carry
on radio communication with Geneva, Switzerland, on a primary
basis via point-to-point stations WEU, WEF, WKld, WKP, and WQT.
It granted, however, the right to R. C.A. Communications to
communicate with Geneva on a secondary basis for the purpose
of handling addressed program material and communications
incidental thereto.
The Commission on July 12, 1939, issued an order
that the licensee, R. C.A. Communications, Inc., show cause, if
any exists, why its licenses should not be modified by deleting
therefrom authority to communicate on a primary basis with
Geneva, Switzerland, in view of the fact that Geneva, although
authorized as a primary point of communication in said licenses,
is in fact an inactive point of communication.
R. C.A. Communications replied that, although there has
been no direct public radiotelegraph service with Geneva for
several years, that point is active in the conduct of a program
transmission service, and asked that it be authorized as a
secondary point of communication solely for the purpose of
handling addressed programs and communications incidental thereto.
XXXXXXXX
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RADIO C300D WILL MEDIUM, ENGINEERS TOLD BY BRITISHER
While a "war of words" continued over ethereal waves
in Europe, the Institute of Radio Engineers meeting in New York
this week heard Sir George Lee, recently retired Engineer- in-
Chief of the British Post Office, laud transatlantic radio for
fostering good-will.
Sir George, who was awarded a Medal of Honor by the
Institute, for promotion of international radio, spoke from
London to the 300 engineers gathered at the Hotel Pennsylvania.
A second award, the Morris Leibman Memorial Prize, was
presented to Dr. Harold Trap Friis, Research Engineer of the
Bell Telephone Laboratories, for his investigations in radio
transmission, including the development of methods of measuring
signals and noise and the creation of a receiving system for
mitigating selective fading and noise interference. Both pre¬
sentations were made by R. A. Heising, President of the Institute.
Operation of the aerological radio sounding equipment
now in use at some forty sounding stations of the Weather Bureau,
Navy Department and the Coast Guard was demonstrated at the morn¬
ing session by Harry Diamond of the National Bureau of Standards,
Washington.
Data for the more accurate forecasting of weather is
obtained through the daily use of a network of radio sounding
stations than by any previous experiments in weather findings,
according to Mr. Diamond, who prepared his paper in collabora¬
tion with F. W. Dunmore, W. S. Hunman, Jr. , and E. G. Laphara,
all of the Bureau of Standards.
The equipment comprises elements for the measurement
of barometric pressure, temperature and humidity and radio means
for remote indication and recording of the values of these
factors, as the apparatus, weighing less than a kilogram, is
carried aloft and well into the stratosphere by small rubber bal¬
loons.
Dr. Lee de Forest, inventor of the audion tube, who
arrived in New York Tuesday to participate in the celebration
of de Forest Day at the World’ s Fair, reviewed the many appli¬
cations of short-wave therapy, with which he has been experi¬
menting for five years, in the fields of medicine and surgery.
On Wednesday, after a greeting by R. A. Heising, Pres¬
ident, the morning session was devoted to a discussion of trans¬
atlantic and marine radiotelephone communication. F. A. Polking-
horn of the Bell Telephone Laboratories outlined the commercial
operation of overseas circuits and J, F. McDonald of the Radio¬
marine Corpora.tion of America, Inc., read a paper dealing with
two-way telephone equipment providing ship-to-shore and intership
communication for yachts and pleasure craft.
4
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9/28/39
Papers dealing with various technical topics were
read at the afternoon session by J. D, Kraus of Ann Arbor, Mich.
H. A. Brown of the University of Illinois; H. A. Chinn of the
Columbia Broadcasting System; D. K, Gannett of the Bell Tele¬
phone Laboratories; R. M. Morris of the National Broadcasting
Company; G. H. Brown of the R, G.A. Manufacturing Company, and
R. E, Shelby of the National Broadcasting Company.
xxxxxxxxx
U.S. STATION BROADCASTS I^SICAL PITCH
The continuous broadcasting of the standard for musi¬
cal pitch - 440 cycles per second, for A above middle C - has
been inaugurated by the National Bureau of Standards over its
radio station WWV, Beltsville, Md. , the Department of Commerce
announced this week.
Far beyond the needs of even the most exacting of
symphony conductors, variance in the pitch is less than 1 part
in 10,000,000.
Broadcast over a frequency of 5 megacycles per second,
the pitch may be heard 24 hours a day, except for short periods
on certain days in which other Bureau programs are being broad¬
cast on the same radio carrier frequency.
The station call letters (WWV) are announced every ten
minutes both by voice and Morse code, so that persons using the
service may be certain they are listening to the right station.
A description of the broadcasts of standard frequencies
and other services made available by the Bureau, is contained in
letter circular LC565, a copy of which may be obtained upon
application to the Radio Section, National Bureau of Standards,
Washington, D. G.
In addition to the standard musical pitch, these ser¬
vices include standard radio frequencies, standard time inter¬
vals in the form of pulses accurately spaced one second apart,
standard audio frequency of 1,000 cycles per second, and bul¬
letins of infonnation on the ionosphere and radio transmission
conditions.
XXXXXXXXX
5
DE FOREST SAYS RADIO IS POTENT WEAPON
Radio may prove a deciding factor in the war in Europe,
Dr. Lee de Forest, inventor of the audion tube and often called
the "father of radio", declared this week on his arrival in
New York from Chicago to celebrate "de Forest Day" at the
World’s Fair, where a dinner in his honor was to be given
tonight (Friday) by the Veteran Wireless Operators' Association.
"While radio was in use in communications in the World
War, it was not as a weapon", he told the New York Times. "Now
it is beginning to show itself as the most powerful weapon that
could be devised. The length of the war depends upon how early
radio will prove effective; that it will lengthen or shorten
the war, in my opinion, can be counted upon. We have witnessed
since the invasion of Poland every day how it has been used to
disseminate not only upon native populations but neutrals.
Including America, just what the warring powers wish us to know
or to believe.
"We learn that the British and French are bombarding
German ears with the story of their arras in this war, and you
can depend upon it that no threat of the death penalty can stop
every Cerraan from listening to the radio. In my opinion the
radio is going to decide in favor of the powers that are now
fighting Germany. "
During his visit in the East, Dr. de Forest, who for
several years in California has been conducting experiments in
the field of short-wave therapy for use in the medical profes¬
sion, will visit the British and French Embassies in Washington
in the Interests of acqua.inting officials with its benefits as
applicable to field hospitals, espeoially in the treatment of
fractures and infected wounds.
xxxxxxxx
"TAM" CRAVEN LIKES TURKEY, PIE; HATES PARSNIPS
Amid all the serious problems facing the Federal Com¬
munications Commission, Commissioner T.A.M. Craven found time
last week to answer the inquiry of the Washington Post food
editor as to wha.t he likes to eat. The interview wa.s one of a
series on favorite foods of prominent Wa.shington men.
"What do I like to eat? Well, I don’t like parsnips".
Commissioner Craven said.
"That is not news", commented the editor, "for par¬
snips a.re one of the least used of the root crops, although when
properly prepared they get some people's vote.
"But he does like vegetables - potatoes, peas, and even
the unpopula,r turnip, Turkey roast, beef, lamb and ham a.,re his
favorites among meats. And he has a sweet tooth, for he likes
pies, cakes and puddings. Sherry chiffon pie is a dessert that
he likes exceedingly well. This is excellent pie taste "
XXXXXXXX XX
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ATLANTIC CITY PAPER PROTESTS "SMELLY BULOVA DEAL"
While the Federal Communications Commission last week
heard oral arguments on the Arde Bulova request for permission
to buy WPG, Atlantic City, and use its shared wavelength to
give full time to WBIL, New York, the Atlantic City Dally World
protested loudly in front-page editorials addressed to the FCC.
Under the heading "A Dirty Deal", the paper said:
"Frank J. Wideman, counsel for the City of Atlantic
City, in the hearing before the Federal Communications Commis¬
sion yesterday, in Washington, argued that radio station WPG
should be allowed to be sold by Atlantic City to Arde Bulove,
millionaire radio monopolist, because "The City could not afford
the continued losses incurred by operating the ste.tion and need¬
ed available funds for repairing the board-walk. "
"Mr. Wideman is uttering falsehoods.
"The City of Atlantic City is not losing any monies
in the operation of WPG. It does not need the money to ’repair
the Boardwalk. ’
"The whole, smelly 'Bulova deal' is a matter of special
interest and special privilege endeavoring to be served at the
people's expense.
"The city is not losing any monies in its operation of
WPG - as indicated by its true records. By its removal the city
would lose a priceless publicity medium for the resort. In
exchange it would receive a 'one-lung' radio station with one-
twentieth its power and a coverage of 15 miles. In exchange it
would receive a virtual monopoly of the various mediums of public
information by one reactionary group owning morning, evening and
Sunday newspapers, advertising agency and radio station. "
The FCC previously had approved the sale in a prelim¬
inary decision, but withheld final judgment after listening to
oral arguments.
The FCC gave protesting stations until September 21
to file final briefs. The Bulova firm v;as given until September
28 to file reply briefs.
XXXXXXXXX
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REICH PLANS VISUAL SET; BBC QUITS TELEVISION
According to a Berlin correspondent, the Geman tele¬
vision industry has pooled patents and experience for the produc¬
tion of the first receiver to be placed on the market in Germany,
the Commerce Department reported this week. It is not known,
however, whether the war will cause a postponement of the plan.
The price is fixed at 650 marks. The five makers con¬
cerned are Frenseh, A. G. (now an entirely German firm belonging
to Zeiss-Ikon and Bosch, Stuttgart), Telefunken, Radio-Loewe,
Tekade and Lorenz. These will jointly manufacture the sets of
which 5,000 will, it is claimed, be available by December and
another 5,000 will be made the moment these "show signs of sell¬
ing". Television is, at the moment, restricted to Berlin. The
receiving set has a 10 in. by 8 in. screen on the cathode -ray
rube and there have been various savings in valves and other
apparatus to simplify construction. Thus only 11 valves ai^
required to produce full effect, together with 3 separate
rectifier valves. The time-base equipment is said to be novel,
requiring only one valve and a transformer. The total consump¬
tion for television and sound is 150 watts, of which the sound
side takes 45.
Variety reported meanwhile that British television is
on a holiday for the duration of the war. One of the first acts
of the Government was to close Alexandra Palace, the television
headquarters of BBC, Many of the BBC television men, including
Wolfe Murray, were called to the colors as early as September 1,
the article stated.
Gerald Cock, the BBC television head man, has been ser¬
iously ill in London for weeks with streptococci infection of the
jaw and reported near to a nervous breakdov/n. He visited New
York during the Spring.
XXXXXXXXX
MEXICAN AUTHORITIES HUNT SUSPECTED RADIO SPY
Mexican authorities are trying to locate a mysterious,
clandestine wireless sending station, reported to have been
transmitting coded messages to Europe ever since the outbreak
of the war, according to a Mexico City correspondent of the New
York Times . The station is believed to be working for the German
secret service.
It has been esta.blished that the station operates some-
Lomas de Chapultepec, smartest residential section of
the Mexican capital, but attempts to locate it more exactly have
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9/22/39
failed. It Is thou^t it may be a mobile station, taken from
one place to another after each transmission.
Officials are exercising increased vigilance over all
wireless activity in the country. Licenses for amateur trans¬
mitting stations have been withdrawn and the rule that commercial
broadcasters must submit all scripts for approval is more rigor¬
ously enforced.
XXXXXXXXXX
• t f
TRADE NOTES 1 : :
General Electric engineers have developed an oscillo¬
scope for television work. The instrument is designed to meet
the need in this field for an oscilloscope having means for both
horizontal and vertical deflection capable of handling the wide
range of frequencies encountered. It is suitable for the study
of wave shapes and transients, the measurement of modulation,
the adjustment of radio and television transmitters and receivers,
the study of the phase shift in amplifiers and the measurement
of voltage amplitudes. The oscilloscope operates from 110 volts,
60 cycles, and uses a nine- inch cathode ray tube.
World radio reports issued by the Department of Commerce
this week included the following: Nicaragua, Paraguay, Hong Kong,
Tonga, Australia and Honduras.
Coincident with start of the nation’s Fbll school term,
more tha.n 100,000 copies of the teacher's manual and classroom
guide for the eleventh season of "Columbia's American School of
the Air" have been mailed out to educators in every state in the
union. The manuals are to be used in conjunction with "School of
the Air" broadcasts over Columbia network which start Bilonday,
October 9.
J. Francis Harris of Mamaroneck, N. Y. , has just arriv¬
ed in Tokyo , Japan, to take up his new duties as a Vice President
of R. C.A. Communications, Inc., in charge of Japan, Manchukuo,
and China. Mr. Harris, who has been Manager of RCAC in Japan
for several years, received his appointment as Vice President
during a brief visit to the United States. He will continue to
make his headquarters in Tokyo.
XXXXXXXXXX
9
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NEW RADIO BOOK COVERS FIELD THOROUGHLY
Unquestionably the new book, "Big Business and Radio"
by Dean Gleason L. Archer, President of Suffolk University, and
published by the American Historical Society of New York, will
go down with Dean Archer's "History of Rs.dio to 1926" as an out¬
standing library reference volume and as one of the most author¬
itative discussions of the subject. Copies of the book have been
sent to the press with the compliments of Frank E. Mullen, Vice-
President of the Radio Corporation of America.
"This explanation should properly be in the preface, but
some people never read a preface - and this explanation is
important.'" Dean Archer writes in the opening chapter. "Disabuse
your mind at once of any idea that the present volume is a mere
continuation of the History of Ra.dio to 1926. On the contrary,
much of the struggle from which the volume takes its name was
fought and won prior to July, 1926. The bulk of this volume con¬
sists of a story based upon records opened for the first time to
any historian. That so great a conflict within the ranks of
'American Big Business' could have been fought without the know¬
ledge of American journalists, or that the story could have
slumbered for more than a decade without discovery, is little
short of amazing, except for the fact that, generally speaking,
great corporations are reticent and, moreover, do not make their
records available to historians. "
An idea of the wide field covered may be gained by the
contents by chapter the headings of which are:
Behind the Scenes with RCA in 1929; A Prophecy Pigeon-
Holed; A Vain Attempt at Mediation; Hostilities Begin; Compromise,
Arbitrate, or Litigate; Attempts at Compromise; Arbitration Agreed
Upon; The Arbitration of 1924; An Inconclusive Victory for RCA;
Empire Swapping; Progress Toward a National Broadcasting Company;
Radio Group and Telephone Company Make Peace; The National Broad¬
casting Company Arises; Travails of a Rival Radio Network; Radio
and Talking Pictures; Radio Corporation Unified at Last; The
Federal Anti-Trust Litigation; The Consent Decree; Radio and the
Industrial Depression; Radio Broadcasting of Today; Historical
Background of Television; Television and Facsimile; David Sarnoff
Looks Ahead.
The volume is profusely illustrated and contains the
following pictures;
David Sarnoff, General James G. Harbord; George F.
McClelland, Herlin H. Aylesworth, Dr. Walter J. Damrosch,
John F. Royal, Frank E. Mullen, W. A. Winterbottom, Charles J.
Pannill, 0. B. Hanson, Paul W. Kesten, Major J. Andrew White,
Edward Klauber, William S. Paley, Alfred J. McCosker, Major Lenox
R. Lohr, Vladimir K. Zworykin, Philo T. Farnsworth, Franklin
Dunham, Dr. James Rowland Angell, and many others.
xxxxxxxx
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF SEPTEIffiER 26, 1939
Chain-Monopoly Report Nearly Ready For FCC .
Warsaw Station's Operation Upsets Theories .
Payne Working On Report In KVOS Case .
NAB Policy Committee Named By Miller .
Central American Radio G-ains From Pact .
Radio Sales Increasing; Price Rise Starts .
Argentine Mart For Aeronautical Radio Equipment .
Radio Legislation Definitely Taboo This Session .
German Electrical Equipment Exports Tabulated By U.S
Trade Notes . . .
Seebach Named WOR Vice-President .
Chrysler Advances $100,000 For Majestic Loan .
Zenith Quarterly Profit, 1940 Line Announced .
Patents Suggest War-Time Television Uses .
. 2
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September 26, 1939
CHAIN-MONOPOLY REPORT NEARLY READY FOR FCC
Closely guarded from public examination, the Chain-
Monopoly Report of the Federal Communications Commission is being
put into shape for submission to the Special Commission Committee.
FCC officials said that a corps of experts are now nearing com¬
pletion of the first draft of the report and will be ready to
submit it to the Committee within a month.
Final decision on all policy matters, however, will rest
with the full Commission, which has changed somewhat in calibre
and in its attitude toward the broadcasting industry since the
chain-monopoly inquiry was held just a year ago.
The new Chairman, James L. Fly, doubtless will have much
to say about the general policies to be adopted although he had no
part in the investigation which his predecessor, Frank R. McNinch,
launched.
The Commission probably will be divided when the time
comes for adopting regulations governing network broadcasting,
but broadcasters believe that the chains are apt to fare better
now than they would had Mr. McNinch remained as Chairman.
The networks lost a friend on the Special Chain-Monopoly
Committee, however, when Judge Eugene 0. Sykes resigned last Spring
to practice law. His place has been filled by Commissioner
Frederick H. Thompson, a newspaper publisher, who has not shown
as much sympathy toward the broadcasters' point-of- view as did his
predecessor.
Other members of the Committee are Commissioners Thad
Brown and Paul Walker.
Some members of the Commission favor rather rigid restric¬
tions on the networks in their relations with independent affiliat¬
ed stations. They also hold that the networks are earning too large
a share of the profits from chain broadcasting.
The Commission also is divided on the question of whether
or not chain programs should be limited on affiliated stations.
Some hold that local programs should be emphasized more and com¬
plain that network broadcasting has resulted in too much sameness
and standardization in radio entertainment.
2
9/26/39
Other Commissioners believe that the networks are fur¬
nishing a much higher type of radio program than most Independent
stations could afford and that consequently the listeners are
benef Itting.
The presence of Congress in Washington, if the extra
session continues into the regular session, as many observers
believe it will, doubtless will have an Influence in the shaping
of the FCC policies regarding network operations. Whatever the
FCC does, however, is likely to arouse some protests from Capitol
Hill.
XXXXXXXXXXX
WARSAW STATION'S OPERATION UPSETS THEORIES
The continued operation of the Warsaw broadcasting sta¬
tion under heavy bombardment and shell- fire has upset many pre¬
conceived theories on the vulnerability of radio in time of war.
For several weeks the Warsaw station has been the only
source of news from the besieged Polish capital. Occasionally,
it has gone off the air temporarily, and G-erman stations have tried
to blanket its wavelength.
Prior to the war, military experts predicted that radio
transmitters would be the easiest targets of an invader and thus
might be of little value under heavy fire.
XXXXXXXXX
PAYNE WORKING ON REPORT IN KVOS CASE
Several weeks may elapse before Commissioner George
Henry Payne submits his report and recommendation to the Federal
Communications Commission on the controversy which may cost
Station KVOS, Bellingham, Wash. , its broadcasting license.
Commissioner Payne conducted hearings at Bellingham last
month to gather supplemental evidence to be considered in connec¬
tion with an Examiner's report recommending that KVOS be taken off
the air. At issue is whether the station is operating "in the
public interest. "
KVOS is the station which ha^d been involved in litigation
arising over the complaint of Associated Press that news was being
pirated from Washington member newspapers and put on the air in
news programs.
XXXXXXXXXX
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9/26/39
NAB POLICY COmiTTEE NAIiiED BY MILLER
E. M. Kirby, Public Relations Director of the National
Association of Broadcasters, has been named Secretary of that
organization's Policy Committee, it was announced this week by
Neville Miller, President. Edgar Bill of TOBD, Peoria, Ill. , was
named Chairman earlier. The code becomes operative October Ist.
Other Committee members are: Martin Campbell, WFAA,
Dallas; Edward Cargill, TOAZ, Macon, Ga. ; E. B. Craney, KGIR,
Butte, Mont.; Walter J. Dajnm, WTMJ, Milwaukee, Wis; Earl J. Glade,
KSL^ Salt Lake City; Edward Klauber, Columbia Broadcasting System;
Don’searle, KOIL, Omaha; Calvin J. Smith, KFAC, Los Angeles, and
Theodore Streibert, Mutual Broadcasting System.
"Underlying every plank of the Code is a principle of
public policy", Mr. Miller declared. "Radio reaches people of
different creeds, races, educational and age levels simultaneously.
Even though it sweeps to every nook and corner of the nation in a
split second, its facilities are limited as to the number of
channels available for use in this country, and aS to the number
of hours available per day for broadcasting. These are the factors
we bore constantly in mind in framing our new Code", he said.
The Code requires that radio stations shall provide free
time for the discussion of controversial public issues in such a
way that conflicting viewpoints in public matters have a fair and
equal opportunity to be heard. In no event will time be sold for
such purpose, except for political broadcasts.
"The political broadcasts excepted are any broadcasts
in connection with a political campaign in behalf of or against
the candidacy of a legally qualified candida.te for nomination or
election to public office, or in behalf of or against a public
proposal which is subject to ballot. This exception is made because
at certain times the contending parties want to use and are en¬
titled to use more time than broa.dcasters could possibly afford
to give away . "
This policy governing the discussion of controversial
public issues through radio was adopted, Mr. Miller said, "because
should time be sold for the discussion of controversial public
issues and for the propagation of the views of individuals or
groups, a powerful public forum would inevitably gravitate almost
wholly into the hands of those with the greater means to buy it.
The NAB policy insures that radio will remain a free and democratic
forum for the fair and many-sided discussions of all public matters.
The Code further requires tha,t news broadcasts be factual
and. presented witn bias or editorial opinion. It also provides
that children's programs be based upon "sound social concepts"
and that radio stations continue to cooperate with educators in
e further development of radio as an educational adjunct. The
- 4 -
9/26/39
While the full Code becomes effective October 1, the
Board ruled that existing commercial contracts shall be res¬
pected for their duration, provided they do not run for more
than one year after October 1, 1939. "New business, competitive
v:ith existing accounts, may be accepted with the same length of
commercial copy as is permitted existing accounts."
XXXXXXXX
CENTRAL AMERICAN RADIO GAINS FROM PACT
President Roosevelt last week issued his proclamation
of the Regional Radio Convention for Central America, Panama and
the Canal Zone which was signed at the City of Guatemala on
December 8, 1938, by plenipotentiaries of the United States of
America in behalf of the Canal Zone, and by plenipoteniaries of
Costa Rica, El Salvador, Guatemala, Honduras, with a reservation,
Nicaragua and Panama. The Senate ga.ve its consent to the rati¬
fication of the Regional Radio Convention on July 21, 1939, and
the President ratified it on August 11, 1939.
The ratification of Guatemala was deposited \7ith the
Ministry of Fbreign Relations of the Government of Guatemala,
which is the depositary of the Convention and the ratifications,
on May 10, 1939, and the ratification of the United States in
behalf of the Canal Zone was deposited on September 8, 1939.
Pursuant to a provision in the Convention, it will become effect¬
ive, as between the ratifj'-ing Governments, thirty da^^’s after the
deposit of ratifications by two Governments, that is on October 8,
1939.
The regional radio conference held at Guatemala City
November ■24-December 8, 1938, resulted from recommendations made
at the International Radio Conference, Cairo, 1938, and the
regional convention is designed to afford more effective broad¬
casting facilities for the countries of Central America, Panama
and the Canal Zone.
The President also issued his proclamation of the Revi¬
sion of the General Radio Regulations annexed to the International
Telecommunications Convention signed at Jifedrid on December 9, 1932.
and^the Final Protocol to the Revision of the General Radio Regu¬
lations, embracing reservations made by several Governments, which
were signed at the International Radio Conference hold at Cairo,
^Sypt, February 1-April 9, 1938.
The Senate gave its consent to the ratification of the
Revision of theGenere,! Radio Regulations and the Protocol on
uly 21, 1939, a.nd the President ra.tified the instruments on
August 11, 1939. In accordance with Article 7 of the Madrid
International Telecomraunica.tions Convention of December 9, 1932,
he Secreta.ry of State notified the Bureau of the International
5
9/26/39
Telecommunication Union at Bern, Switzerland, of the ratification
of the United States on August 24, 1939, which notice had the
effect of bringing the revised regulations and the protocol into
force with respect to the United States.
Prior to being brought into force with respect to the
United States, the revised regulations, and, with certain excep¬
tions as indicated below, the final protocol, were put into force
with respect to the following countries by notices given by the
Governments of those countries to the Bureau of the International
Telecommunication Union at Bern: Argentina; Australia, Belgium,
including Belgian Congo and Ruanda-Urundi (not including protocol) ;
Bulgaria (not including protocol) ; Czecho- Slovakia (not including
protocol); Danzig; Denmark (not including protocol) ; Estonia;
Germany; G-reat Britain; Hungary, Italy, including Italian East
Africa and Italian Islands in the Aegean; Japan, including Chosen,
Taiwan, Karafuto, Kwantung, and South Sea Islands under mandate;
Leganon; Libya; Morocco; Netherlands, including Netherlands
Indies, Surinam and Curacao; Newfoundland; New Zealand (not includ¬
ing protocol) ; Poland; Portugal; Ramania; Spain, including Span¬
ish colonies and possessions and Spanish Zone of Morocco; Switzer¬
land (not including protocol); Syria; and Yugoslavia.
xxxxxxxxxx
RADIO SALES INCREASING; PRICE RISE STARTS
Radio dealers report a sudden upturn in radio sales,
already high, because of the widespread interest in radio war
news, according to Rs-dio To day .
"Service men, too, were suddenly besieged by those who
wanted repairs made in a hurry", the trade organ states. "Ovmiers
of all-wave sets demanded that these be tuned up to the peak of
performance to get their news direct. Broadcast listeners needed
new tubes and parts to restore disabled sets to operation.
"One manufacturer reports that orders on hand now, will
keep his plant going full blast for the next 30 days, and the back
orders continue to increase.
"Another prominent set manufacturer states that at the
present rate of orders coming in, production won't catch up for
several months.
"A lea,ding parts manufatcturer has been swamped with
orders for replacement parts, and his normal production facilities
cannot keep pace with the rising tide of demand.
"Such has been the immediate effect of the war on the
radio business.
6
9/26/39
''But there are other important echoes of the booming
guns, too.
"Prices have begun to rise on raw materials, particularly
non-ferrous metals, cotton, etc. Suppliers in many cases have
withdrawn quotations on coils, wire, transformers, etc. , working
now on a day-to-day basis. Whether such price increases are
speculative, and reflect the anticipation of future demand, or
rise, it is probable that radio manufacturers' costs will go up,
and may soon have to be reflected in higher retail prices for
radio sets.
"Some leading radio manufacturers have already announced
price increases on certain models, though most express the inten¬
tion of absorbing present increased costs as far as they can, in
the expectation that added volume will reduce other costs and so
pick up some of the advances in raw materials,
"Increases in employment have taken place in radio and
in other industries, beyond the normal seasonal increase, which
in large part reflects the anticipation of broader demands result¬
ing from the war. "
xxxxxxxxxx
ARGENTINE lAABT FOR AERONAUTICAL RADIO EQUIPMENT
The Argentine air transport lines and the Army and Navy
Air Corps offer a fairly good outlet for airways radio equipment,
according to the Department of Commerce. There are in operation
five foreign and one domestic airlines, with all but one employing
direction finders on both aircraft and ground. A large number of
American planes recently acquired by the Army and Navy are also
equipped with direction finders, as well as radio compasses. Only
the compasses were purchased from the United States, the remainder
of the equipment being of German origin. All air transport planes
and most of the recently acquired Army and Navy planes have fixed,
training, or loop antennas, frequently a combination of all three
types.
No radio range beacons have as yet been installed. It
is generally recognized, however, that there is an urgent need for
them, and the hope is held that the Array may definitely decide
shortly to install a range beacon at Paloraar Field, Buenos Aires.
XXXXXXXXXX
7
1
9/26/39
RADIO LEGISLATION DEFINITELY TABOO THIS SESSION
Under the present procedure of the extra session of
Congress, radio legislation will not be considered before January
1st. The Senate this week adopted a resolution to limit its
legislative activity to neutrality, and House leaders are attempt¬
ing to do likewise while taking three-day recesses.
xxxxxxxxx
GERMAN ELECTRICAL EQUIPIjIENT EXPORTS TABULATED BY U. S.
A detailed tabulation of exoorts of electrical equip¬
ment from Germary for the year 1938 which were valued at about
$134,395,000 has just been prepared and made available by John H.
Payne, Chief, Electrical Equipment Division, Department of
Commerce.
The information is designed to inform American manu¬
facturers and exporters of electrical equipment of those countries
which may seek new sources of supply should the present European
conflict continue to restrict exports from Germany.
Two tables are included, one showing total German electri¬
cal equipment exports to all countries of the world and the second
showing a detailed breakdown by commodities and countries. The
latter tabulations is particularly valuable, according to Mr. Payne,
in that it separates German electrical exports under specific items
and shows the value of each such item sold to specific countries.
Commodities separately listed in the tabulation includes
dynamos, electric motors, converters, transformers and choke coils
classified by weight; storage batteries; electrical cable; various
types of lamps; radio, telephone and telegraph apparatus; measur¬
ing, counting and recording instruments, and carbon products.
XXXXXXXXXX
Madame Galli-Curci thinks television will be a boon to
the opera enthusiast. Televised for the first time at the General
Electric exhibit at .the New York World's Fair last week, Madame
Galli-Curci said.*
"It will be wonderful to be able to see and hear opera
while sitting at home in an easy chair and not have to find a
place to park your car — or to get up and leave before the end
of the last act! "
XXXXXXXXXX
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TRADE NOTES
World Radio Market reports on Australia and Syria were
released this week by the U. S. Bureau of Foreign and Domestic
Commerce,
The Canadian Press, cooperative News Association of
Canada's daily newspapers, this week began providing the Canadian
Broadcasting Corporation four 15-minute news bulletins daily for
each of five regions across the Dominions. The bulletins are put
on the air morning, noon, mid-evening and at night.
Vol. 1, No. 1 of "Results from Radio", first of a series
of industry trade studies planned by the NAB Bureau of Radio
Advertising has been sent to all member stations, according to an
announcement by Samuel J. Henry, Jr. , of the Bureau. The initial
trade study, designed as a local sales and promotion aid, is on
the subject of department stores 8.nd deals specifically with the
success of the Rike-Kumler Company, Dayton, Ohio, in sponsoring
a daily 15-minute shopping program over WHIG.
The Federal Trade Commission closed its case against
Try-Mo Radio Company, Inc., 85 Cortlandt St., New York, in which
the respondent was charged with misleading advertising of radio
receiving sets and radio equipment. The respondent on July 84,
1939, agreed to discontinue the unfair practices cha.rged in the
Commission's complaint and agreed to accept and abide by the rules
of fair trade practice for the radio receiving set industry pro¬
mulgated by the Commission July 22, 1939. The case was ordered
closed without prejudice to the right of the Commission to reopen
it and resume prosecution, should future fects so warrant.
NAB has announced the appointment of William R. Cline,
Commercial Manager of WLS Chicago, as Chairman of the Sales
Managers' Committee, succeeding Craig Lawrence, KSO, Des Moines.
An Executive Committee will be appointed from the Sales Managers'
Division to meet regularly and work in cooperation with the Bureau
of Radio Advertising and Headquarters' staff in developing a sales
and promotion program on behalf of all member stations.
Radio G-uide, Inc. , Chicago company dissolved in 1935,
has appealed to the U. S. Board of Tax Appeals from income and
excess profits tax deficiency assessments totaling $213,950.29.
M. L. Annenberg, publisher of the Philadelphia Inquirer, who was
indicted in Chicago last month on charges of income tax evasion,
was named as President of Radio Guide . Other officers listed
were A. W. Krmise, indicted with Annenberg in August, Secretary-
Treasurer, and Joseph E. Hafner, Assistant Secretary.
xxxxxxxxxx
- 9 -
9/86/39
SEEBACH UPMED WOR VICE-PRESIDENT
Julius F. Seebach, Jr. , Director of Program Operations
for Station WOR since 1935, was appointed Vice-President in Charge
of Programs last week, Alfred J. McCosker, President of WOR, has
announced. Mr. Seebach' s new appointment was voted at a regular
meeting of the Board of Directors of WOR.
His career in the broadcasting world embraced a period
of 14 years, beginning in 1925 when he assumed a post as announcer
with WOR, rapidly advancing to manager of evening programs. In
January, 1928, he joined the Columbia Broadcasting System as
Program Production filanager, remaining with that network until 1935
when he resigned his position as director of all program operations
to return to WOR in a similar capacity.
xxxxxxxxxx
CHRYSLER ADVAI>ICES $100,000 FOR IJIAJESTIC LOAN
Walter P. Chrysler, Jr. has made $100,000 available to
the Allied International Investing Corporation for simultaneous
loan to the Majestic Radio and Televison Corporation, for the pur¬
pose of increasing its working capital, according to an announce¬
ment at Mr. Chrysler' s New York office this week.
Mr. Chrysler has received an option to notify the Majestic
Company on or before Oct. 23, 1939, that he wishes to purchase
225,000 shares of its stock, in part payment for which the company
will accept the note evidencing the $100,000 loan to the Allied
Compaq, according to the New York Times. Contingent on the
exercise of this option, Mr. Chrysler has a further option to
purchase, on or before March 31, 1941, a total of 75,000 of
Majestic’s shares, in installments of 15,000 each.
Allied International has an option to purchase 75,000
shares of Majestic, and additional installments of 5,000 for a
total of 30,000 shares, at the same price at which Mr. Chrysler may
acquire the stock. Allied has conditionally agreed to have Mr.
Chrysler substituted as one of the three proxies which presently
control voting rights of 175,000 shares of capital stock of Majestic.
Mr. Chrysler exercises his option to purchase the
285,000 shares. Majestic's Board of Directors will be increased
from six to nine members to permit Mr. Chrysler' s representation
on the Board.
- At ^present the company has 550,000 shares outstanding
an authorized issue of 1,000,000 shares of $l-par common stock.
10
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9/26/39
On May 19, 1939, Allied International and Singer &
Freidlander, Ltd., of London (England), offered 375,000 shares of
Majestic stock at the market, of which 175,000 shares were already
outstanding and owned by the Davega Stores Corporation, which had
optioned them to the underwriters.
Proceeds of the remaining 200,000 shares were used for
payment of notes due the underwriters, reduction of bank loans,
expenses of registration with the SEC, and for additional working
capital, it was announced at the time.
xxxxxxxx
ZENITH QUARTERLY PROFIT, 1940 LINE ANNOUNCED
Zenith Radio Corporation reports a consolidated operat¬
ing profit for the first quarter ended July 31, 1939, of its
current fiscal year, amounting to $29,321.27 after depreciation,
excise taxes and liberal reserves, but before provision for
Federal Income taxes, as per the company’s books, according to
Commander E. F. McDonald, Jr. , President.
The company announced its new 1940 advance line of
receivers in June, for which it received large quantities of
orders, some of which are still unfilled. In the past week the
1940 line of Zenith receivers was shown to distributors at meetings
in Chicago and New York. The completed 1940 line now consists
of regular radio and radio-phonograph combination models ranging
in price from $12.95 to $750.00.
"The preponderance of our orders received at the conven¬
tion last week for higher priced short wave receivers indicate that
the advent of war has brou^t about a new realiza.tion of the
importance of short-wa.ve European reception", Comma.nder McDonald
said. "Through this medium it is possible for the listener to
tune in London, Paris, Moscow, Berlin and Rome and obtain first
hand information on developments. Nev/s and propaganda in English
is being put out daily from 4:30 P.M. until 11:00 P.M. by these
stations and even the actors themselves in the great war drama
that is now being ena.cted are appearing before the microphones.
Zenith announced at its Chicago convention its intention
to continue its policy, first announced last October, not to offer
television sets to the public for sale until it is believed that
television^ ms ready for the public. As confirmation of the com¬
pany s policy and predictions, it wa.s announced at this convention
that the sales of television sets of the industry, from distributors
to dealers, as reported by the Radio Manufacturers' Associa.tion,
for the eight weeks ended September 8th totaled only 22 television
receivers.
XXXXXXXXX
- 11 -
s
9/26/39
PATENTS SUGGEST WAR-TIME TELEVISION USES
What the role of television may be in the present war has
already been indicated in Washington in a number of patents granted
recently to various inventors. Devices based on television prin¬
ciples to detect enemy planes, dirigibles and submarines, which would
permit airplane pilots to pick up images of the terrain while lurking
behind clouds and which would even detect mines have been patented.
Enemy guns hidden behind masonry and embankments would become visible
on television receiving cameras, according to the patents. Television
would pierce darkness, smoke screens and fog to reveal the lurking
enemy.
As one example, John Hays Hammond, Jr. , noted for his in¬
vention of radio-controlled torpedoes which turn around in case they
miss the ship the first time to strike it from the opposite side, has
patented a secret television system (No. 1,910,540). It telecasts
distorted, or '’scrambled”, images, so that, should the enemy pick
up the tele-signals, all it would see on the tele-receiver would be
a distorted blur. With such a system, maps, photographs and other
pictorial intelligence could be telecast without danger of informing
the enemy.
The distortion is accomplished according to a certain law
or code and any one not knowing the law would not receive a true
tele-image, it is explained. Such a system mi^t, for example, be
used with the television navigation system for landing in fog, also
patented (No. 8,062,003) by Mr. Hammond. In this system, to the
pilot of a bomber, for instance, lost in the fog is telecast an
Image in relief of his home landing field. Picked up by the tele¬
receiver on the plane, the pilot has a clear picture of the landing
field.
A dot of light which follows the course of the plane moves
over the image and gives the pilot his exact position over the field
until he lands. With secret television, the enemy television receiv¬
ers, assuming they did not know the scrambling law, could not receive
a true picture of the landing field.
Mr. Hammond states that this television navigation system
could also be used in guiding submarines a.nd boats by presenting on
their television receivers a picture of the ha,rbor.
Hans Hartman of Ifenaco, Manaco received a patent (No. 2,060,-
760) in 1936 for "submarine television”. By lowering a television
camera in a bathysphere down in the sea the crew on deck would see on
a television receiver screen moving objects and sunken boats beneath
the surface. With such an underwater television transmitter, it is
conceivable that submarines and mines would also be made visible.
Spotting dirigibles and enemy airplanes hidden behind smoke
screens and clouds or in fog is proposed in a patent (No. 2,075,808)
Issued to R. A. Fliess of New York City. His tele-detector involves
Shooting a piercing beam of extremely short ra.dio waves into the sky.
lanes and dirigibles reflect these rays back to earth, he asserts,
-icked up by a television receiver they give a visible outline or
image of the craft on the viewing screen. Similarly, metal objects,
0 as guns and tanks hidden behind embankments a,nd masonry, which
e re.ys penetrate, would also become visible by reflection of the
vsraves.
xxxxxxxxx
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF SEPTEMBER 29,
Broadcasters Uneasy After FOG ” Trial" Of MCA . 2
WMCA Officials Admit Nst'^ Broadcast, Deny Illegality . 3
International Rule Suspension Extended . 5
RMA To Discuss War's Effects On Industry . 6
Coast Guard Building Radio Station .
Canada Censors Political Talks In Election
Electrical And Radio Group Meeting October 11 In N.Y.C .
Television Held Impractical For Canada-
Trade Notes . 9
Mid-Summer Radio Employment Shows Gains, . 10
Pacific Cable Rate Hearing Scheduled . 11
Television Spectacles Are Granted Patent . 11
LaGuardia Foils Civil Service On ASCAP . . . 12
No. 1161
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BROADCASTERS UNEASY AFTER FCC "TRIAL" OF WMCA
The manner in which Station WMCA, New York, was placed
on "trial" by the Federal Communications Commission this week
for broadcasting as news what was purported to be secret military
Information of Great Britain and Germany has disturbed other
broadcasters who see in the hearing an ominous portent of what
may happen to other stations should the United States go to war.
Observers also were disappointed in Chainnan James L.
Fly, who up to this time appeared to have a sympathetic understand¬
ing of the industry's problems. His police court manner of lectur¬
ing witnesses and summarily dismissing them aroused a great deal
of off-stage criticism even from otherwise neutral spectators.
That the FCC had failed to prove its case, so far as
illegal broadcasting of "secret" international radio communica¬
tions was concerned, was apparent after a hearing that dragged
through the morning and into the middle of the afternoon on
Wednesday.
Realizing the weakness of that angle of the case,
Chairman Fly, aided by Commissioners Thompson and Payne, harped
at length on the false statements contained in the WMCA advertise¬
ment of its "scoop" although FCC officials admitted that this was
a matter for the Federal Trade Commission rather than the FCC to
be concerned with.
Before the hearing, it was understood, the majority of
the Commission was determined to make an example of WI>ilCA by
revoking its license, but afterwards the Chairman and other mem¬
bers were obviously angry but appeared less sure of themselves.
There were indications that one or more members of the Commission
wlll^ oppose any drastic punishment of WI'ilCA when the matter is
considered in executive session, probably next week.
The inquiry also aroused comment as to why the FCC
artfully evaded bringing the New York Herald Tribune into the
case any more than was necessary to establish the fact that a
_e^ald- Tribune radio operator oicked up the messages broadcast by
a German and an English station.
There was no doubt that the newspaper not only furnished
T to WMCA for the broadcast but subsequently oub-
iished it in its own columns.
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9/29/39
While FCC officials insisted that the Commission has
no Jurisdiction over newspapers or the interception of secret
international communications by receivers, the order to WMCA to
show cause as to why its license should not be revoked stated
that both the international radio treaty and the Communications
Act prohibit the publication of such messages.
The order readinpart as follows:
"Whereas, in order to insure the secrecy of interna¬
tional radio communications, the United States G-overnment has
agreed with other governments, including Germany and G-reat Britain,
to take the necessary measures to prohibit and prevent (a) the
unauthorized interception of radio communications not intended
for the general use of the public; and (b) the divulging of the
contents or of the mere existence, the publication or any use
whatever, without authorization, of such radio communications;
and
"Whereas, Section 605 of the Communications Act of
1934 provides that no person not being authorized by the sender
shall intercept any communication and divulge or publish the
existence, contents, substance, purport, effect, or meaning of
such intercepted communication to any person, and further pro¬
vides that no person having received such intercepted communica¬
tion or having become acquainted with the contents, substance,
purport, effect, or meaning of the same or any part thereof,
knowing that such information was so obtained, shall divulge or
publish the existence, contents, substance, purport, effect, or
meaning of the same or any part thereof, or use the same or any
information therein contained for his own benefit or for the
benefit of another not entitled thereto. "
XXXXXXXX
WMCA OFFICIALS ADMIT NEWS BROADCAST, DEI'IY ILLEGALITY
Donald Flamm, President of the Knickerbocker Broadcast¬
ing Company, licensee of MCA, New York, and other officials of
the station stoutly denied an unlawful activity in broadcasting
German and British naval orders on the eve of the European war
during a four-hour hearing before the Federal Communications Com¬
mission this week.
The information was furnished WiCA, it was testified,
in the regular news bulletins provided by the New York Herald
Tribune under a special "emergency" arrangement from August 25
to September 5,
same time William Wiseman, Vice-President, in¬
sisted that he had complied with the order to show cause in his
answer, which the FCC declared was inadequa.te..
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Chairman James L. Fly, who assumed the role of prose¬
cutor at times, flatly stated that the Commission "feels the
document is incomplete".
Stanley Wolff, chief radio operator of the Herald
Tribune, admitted picking up the naval messages which were broad¬
cast as interruptions to regular press transmission in English.
The German communication, addressed to certain German ships, was
in the German language.
When translated at the newspaper office, it read:
"Upon receipt of this transmission, act upon your special secret
instructions. " It was accompanied by a code message in figures.
The British radio message ordered British merchant ships
in certain European and Asiatic waters to proceed to British
ports. They were forbidden to visit Italian ports and those
already in Italian harbors were ordered to leave.
Mr. Wolff testified that he "picked up" the messages
in the course of regular news broadcasts which were interrupted
for the transmission of the orders, that he understood them to
be original orders" and not a part of the news orogram, and that
he so transmitted them to 1?VI^CA.
Leon Goldstein, WHdCA's special events and news editor,
who received them from Mr. Wolff, said tha.t he understood them to
for which the regular broadcasts were interrupted,
but which were equally "news" for legitimate broadcasting.
belief, he had "checked" on them
^ International News Service, which together with The Daily
constituted the company's regular news sources, augmented
temporarily by The Herald Tribune service.
^ question by Commissioner Craven, Mr. Wolff
messages, were transmitted in telegraphic, but not
by official German and British broadcasting stations
used commonly, but not exclusively, for nevm broadcasts.
WMCA hearing was taken up with the
"Scoop", which rcproduced
from the N&w York Daily News and the New York World-
"scoops" on^the ore— ar
tsritisn and German naval orders. ‘ . c^x
tiseraent ass^ed "full responsibility" for the adver-
that he had neruSd^^i and Ra.dio Daily, but explained
InsistL thJ rather hastily. He and Mr. Goldstein
column! Q+ bhey did not know how George Ross, World-Telesrara
be did not talk with r incorrect information. Mr. Goldstein said
u nop talk with Ben Gross, of the Daily News.
4
9/29/39
Mr. Wiseman, when grilled by Chairman Fly and William J.
Dempsey, FCC counsel, as to why his reply to the Commission's
order was not more detailed, Insisted that he replied as directed
and did not believe the FCC was Interested In "Irrelevant matters"
such as the advertisement.
xxxxxxxx
INTERNATIONAL RULE SUSPENSION EXTENDED
Still deliberating the varied communications problems
related to the European war, the Federal Communications Commis¬
sion this week stated tha.t Its rule governing the programs of
U. S. International stations had been extended further pending
a completion of the broader study.
The rule, which specified that international broad¬
casts should promote American culture and good-will toward the
United States, was suspended In the late Summer following a
hearing at which broadcasters attacked it as a form of censorship.
The following resolution was adopted by the FCC with
regard to the rule:
"Whereas, on May 23, 1939, the Commission adopted
Rule No. 42.03(a) having to do with the conduct of international
broadcast stations, which rule was thereafter suspended pending
further investigation, and
"Whereas, the outbreak of the European wa.r has injected
Into the problem of international broadcast regulations various
additional significant factors, and
"Whereas, on September 6, 1939, this Commission appoint--
ed a committee composed of Chairman Fly, Commissioner Brown and
Commissioner Craven to study the various phases of the communica¬
tions problem in relation to current war conditions, to maintain
contact with the various Government agencies and the industry and
to report to the Commission its recommenda.tions, which committee
has made studies and held various conferences on the problems in
relation to international broadcasting,
"Therefore, be it resolved, that said rule is hereby
further suspended pending the conclusion of said studies and con¬
ferences and subject to the report of said committee recommending
the Commission such further action as it may deem appropriate."
XXX X XXXXXXXX
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9/29/39
FIMA TO DISCUSS WAR'S EFFECTS ON INDUSTRY
Fall meetings of the Radio Manufacturers' Association
October 10 and 11 in New York City at the Hotel Roosevelt, will
largely be devoted to problems and opportunities resulting from
the European war and also national promotion projects, according
to Bond Geddes, Executive Vice-President. Plans to promote sales
of short wave radio, due to the special interest in European
broadcasts, together with the Joint industry promotion of RMA
and the National Association of Broadcasters, and also promotion
projects for RMA amplifier and parts manufacturers will be con¬
sidered. The largest attenda.nce of RMA members during the annual
Fall meetings in years is expected.
Preliminary to the meeting of the BMA Board of Directors
called by President A. S. Wells on Wednesday, October 11, there
will be many RMA committee and group meetings at the Hotel Roose¬
velt on Tuesday, October 10. On October 10 there will be a large
meeting of the RIMA Export Committee, called by Chairman S. T.
Thompson of Chicago, to consider the many foreign trade problems
resulting from the European conflict, including embargoes and
quotas, together with the new trade treaties being negotiated by
this Government with Argentina and Belgium. Also on October 10
plans to stabilize introduction of new tubes will be considered
by the RMA Tube Control Committee of which Dr. W, R. G. Baker of
Bridgeport is Chairman.
Several group meetings of parts and accessory manu¬
facturers also will be held October 10, following recent reorgani¬
zation of the RMA Parts and Accessory Division by Chairman H. S.
Osmun of Milwaukee. Already there has been scheduled meetings
of the Variable Condenser Section and Volume Control Section,
under the respective chairmenship of Samuel Cohen of Elizabeth,
N. J. , and William Nicely of Chicago, and other newly organized
sections of parts manufacturers are arranging additional meetings.
Action will be taken by the RMA Directors October 11
regarding the radio merchandising rules promulgated July 22 by
the Federal Trade Commission. Recommendations with respect to
RilA action will be made by the Association's Fair Trade Practice
Committee of which Commander E. F. McDonald, Jr. , of Chicago, is
Chairman.
Arrangements will be made by the Association's Board
also for procedure before the Treasury Department on October 17
in the hearing arranged by RMA to a^gain urge repeal of the 5 per¬
cent radio excise tax. The Treasury hearing is in charge of a
special RMa committee headed by A. H. Gardner of Buffalo, and
there will be reports to the R^14 Board of many other committees
in development of Association services to member companies and
on many industry problems,
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9/29/39
COAST GUARD BUILDING RADIO STATION
A new ^250,000 radio station, on land once owned by
George Washington, soon will be ready to help the Coast Guard
sharpen its watch on America's land and sea boundaries.
The station, under construction at "The Mayfields", Va. ,
once part of the Mount Vernon estate, will be equipped with a
powerful receiving unit, and six remote control transmitters,
capable of giving the Coast Guard instant communication with points
anywhere in the world; including the 90 other Coast Guard radio
stations, and hundreds of radio-bearing ships and planes.
Each of the transmitters will be in a separate sealed
structure, controlled from the central receiving building 2,500
feet away. The radio plant will also include a testing laboratory
and power supply unit, housed in separate buildings.
The present site of the radio center was sold by George
Washington to his estate manager and distant relative, Lund
Washington, after the Revolutionary War. Nearly 200 acres of the
once-rich farm land are being torn up for the necessary under¬
ground control cable circuits.
XXXXXXXXXX
CANADA CENSORS POLITICAL TALKS IN ELECTION
The general election which Premier Maurice Duple ssis
has called in Quebec for next month on the ground that the auton¬
omy of that Province is menaced by the Federal Government's war
measures, will be subject to censorship and will be the first in
Canada's history to be held under such restrictions, according to
the Ottawa correspondent of the New York Times.
Broadcasting of speeches at political meetings held
during the campaign will not be allowed. Only studio broa,dcasts
will be permitted and texts submitted in advance will be scanned
by the war censors.
The Censorship Board in a statement pointed out that all
radio stations in Canada, were informed on September 22, before it
was known that an election would be held in Quebec, that broad¬
casts from political platforms v/ould not be allowed since it was
mpossible to censor them. The order thus has no special applica¬
tion, it is asserted, to the election in Quebec.
u Duplessis is irked, however, by the restriction,
e declared that it would prevent "free discussion of questions of
vital importance to the electors of the Province. "
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9/29/39
As for the rule requiring studio political broadcasts
to be passed by the censor before delivery, the Premier said
emphatically :
"As Prime Minister of Quebec Province I v/ill submit
no text to the Canadian Broadcasting Corporation. I contend
that the Prime Minister of Quebec has the right to express his
views and those of the Province without having to pass through
Federal authorities. '•
XXXXXXXX
ELECTRICAL AND RADIO GROUP MEETING OCT. 11 IN N.Y.C.
As a feature of the National Foreign Trade Council’s
Annual Convention being held at the Commodore Hotel, New York
City, October 9, 10, and 11, it has been arranged to have
Industrial Group meetings covering various industries on Wednes¬
day morning, October 11.
The Electrical and Radio Group meeting will be presided
over by William E. Knox, Assistant General Manager of the
Westinghouse Electric International Company, who has recently
returned from a world wide trip in behalf of his company. John H.
Payne, Chief of the Electrical Division, Bureau of foreign and
Domestic Commerce, will act as counselor for the meeting.
This is the second year in which these group meetings
have been featured as part of the Foreign Trade Council Conven¬
tion, the meetings last year having proved particularly interest¬
ing and useful.
’’Representatives of any American firms interested in
Electrical or Radio foreign trade will be welcome, whether they
attend the other sessions of the National Foreign Trade Conven¬
tion or not”, the Commerce Department stated. "Questions or
subjects for pertinent discussion at the meeting should be sent
either to Mr. Knox or Mr. Payne as much in advance of the meeting
as possible. ”
XXXXXXXXXX
TELEVISION HELD IMPRACTICAL FOR CANADA
Television development in Canada is definitely in the
experimental stage and its early practical application is dis¬
counted”, the U. S. Commerce Department reports.
"Television presents e difficult geographic problem in
Canada and as yet no concern has been inclined to provide tele¬
vision broadcasts because of the indeterminate nature of techni¬
cal developments and the lack of a concentrated population area
large enough to wa.rrant the installation expense”, the report
states. "Television is not economically feasible in Canada at
present. "
XXXXXXXXXX
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9/29/39
TRADE NOTES
Gene Buck, President, and the Board of Directors of the
American Society of Composers, Authors and Publishers have sent
out Invitations for a '‘Festival of American Music" to be presented
next Tftfeek in Carnegie Hall, New York City, in commemoration of
ASCAP's twenty-fifth anniversary.
A story of the achievements of Powel Crosley, Jr. , of
Cincinnati, is carried in the September 30th issue of the Saturda..y
Evening Post. Titled "The Crosley Touch - and Gol", the article
by Forrest Davis describes Crosley' s varied interests in the
industrial and sports fields.
And Mr. Crosley is receiving congratulations today on
his Cincinnati "Reds" winning the National Baseball League Pennant
for the first time in twenty years.
The State Department will begin negotiations next month
with the Argentine and Belgium Governments on reciprocal trade
treaties, it has been officially announced, and the RI>/[A Export
Committee under Chairman S. T. Thompson will represent the radio
interests involved, especially with Argentina. The RMA is co¬
operating with the Bureau of Foreign and Domestic Commerce in
preparation of radio recommendations and data. American interests
in Buenos Aires also are a^ssisting.
A. MacGillivray, for the last year Assistant Controller
of the RCA Manufacturing Company, has been elected Controller of
the company, according to announcement this week by George K.
Throckmorton, President. Mr. MacGillivray joined the RCA Radiotron
Company in 1930 and in 1935 was transferred to the RCA Manufactur¬
ing Company headquarters at Camden, N. J. , to take charge of tax,
insurance and budget accounting activities.
Bond Geddes, Executive Vice President of RMA, has been
elected a Vice President of the American Trade Association Execu¬
tives, the national organization of over 500 industrial a.nd other
traae associations. Mr. Geddes also is on the Board of Directors
of the national organization and is Vice President of the Washingtoi
Trade Association group.
Although supporters of Father Charles E. Coughlin met
Sunda.y , a.s usua.l, before Station WMCA's headquarters at 1657 Broad¬
way, New York City, the building was not picketed for the first
time since December 19, 1938, a representative of the station
announced this week.
9
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9/29/39
Federal collections last August of the 5 percent radio
excise tax were ^401,738.21, a slight increase over the August
1938 radio taxes of $399,828.47. The large seasonal increases
in excise taxes on mechanical refrigerators continued in August,
when the collections were $1,004,409.97, compared with refriger¬
ator taxes in August 1938 of $418,762.09.
Tony Wakeman, WOL sports commentator, and the American
Broadcasting Co., Washington, owner and operator of WOL, has
asked District Court to dismiss the $150,000 slander suit filed
against them recently by Natie Brovn, Washington heavyweight.
Brown's suit alleges that the sports broadcaster, in a broadcast
the day after the Washington fighter met Tony G-alento in the ring
at Detroit last February, accused Brown of "taking a dive" for
the Nevr Jersey boxer.
Niles Trammell, Executive Vice-President of the National
Broadcasting Company, has announced the appointment of A. E.
Nelson, Sales Manager of the NBC-Blue Network, as Manager of
Stations KPO and KGO, San Francisco, effective October 1st, and
the transfer of Lloyd E. Yoder, Manager of KPO and KGO, to the
managership of Station KOA, Denver, on October 15. Both will
report to William S. Hedges, NBC Vice-President in charge of sta¬
tions, At the same time, Mr. Trammell announced the appointment
of Robert Owen as Assistant Manager of KOA, effective October 15.
xxxxxxxxxxxx
MID- SUMMER RADIO EMPLOYMENT SHOWS GAINS
Large increases last June in radio factoiy employment
and payrolls, without much cha.nge in average weekly a.nd hourly
earnings and hours worked, were detailed in the current June
employment report of the U. S. Bureau of Labor Statistics. Na¬
tionally there was a considerable employment increase last June,
46 of 87 manufacturing industries surveyed reporting employment
increases, and 57 larger payrolls.
Radio factory employment last June increased 12. 6 and
was 33.1 percent above radio employment in June 1938. The June
108.5 compared with the previous May index of
96.4. A supplementary government report stated that in the
monthly turnover rate per 100 radio employees there were layoffs
of only 1,55 per 100 last June and 1.81 the following month of
'July, while the ratio of ne?^ radio eraoloyees hired was 7.87 last
June and 6.51 in July, compared with 7.77 in July 1938.
Ra.dio factory payrolls last June increased 13.2 oercent
ana were 32.9 percent above radio payrolls in June 1938. The June
ex figure on pa.yrolls was 95.2 comoared with the orevious May
index of 84.1. * "
xxxxxxxxxx
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9/29/39
PACIFIC CABLE RATE HEARING SCHEDULED
The Federal Coramunicetlons Commission this week order¬
ed an investigation into the practices of six West Coast telegraph
companies handling transpacific cables.
The Commission alleged that charges for transpacific
messages are lower when sent from Seattle and Los Angeles than
when originating at Portland, Ore. The companies named are the
Mackay Radio and Telegraph Co., of California; R. C.A, Communica¬
tions, Inc.; Commercial Pacific Cable Co.; Globe Wireless, Ltd.;
The Western Union Telegraph Co. ; and The Postal Tele graph- Cable
Company. A hearing has been set for October 30th.
xxxxxxxxxx
TELEVISION SPECTACLES ARE GRANTED PATENT
Albert A. Arnhym of Chicago has obtained a U. S. patent
(No. 2,058,941) fhich offers a pair of television spectacles which
are sensitive to infra-red rays. The patent states: "In protec¬
tion against airplanes in wartime the heated portions of the air¬
plane, such, foi example, as the engine, would emit infra-red rays
through any intervening fog or smoke, or through ordinary dark¬
ness, and said rays would be rendered visible by means of the
present invention.
He also states that airT)lane pilots flying safely above
clouds and wearing such tele- spectacles would be able to see the
terrain oelow through the infra-red rays radiating from the ground.
It has already been renorted that England, France,
Germany and Italy have experimented with aerial television.
Planes equipped with television sets, it is said, have sent pic¬
tures of the clouds through which they are flying to a ground sta¬
tion, while the latter has transmitted to the pilots pictures of
clouds thirty miles ahead.
Aerial television holds the possibility of permitting
artillery men to see exactly where their shells are falling miles
away. A plane carrying a television set might send back to head¬
quarters an actual scene of enemy troop movements and concentra-
tions exactly as they are at the moment. On the screen, officers
of a battleship would see ’"he the r the shells hurled from its guns
^re laiiding on the enemy ships out of ordinar"/ sight beyond the
horizon.
XXX X XXX XX
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LA GUARDIA FOILS CIVIL SERVICE ON ASCAP
Mayor F. H. LaGuardia Intervened in New York Wednesday
to forestall the arrest of Gene Buck, President, and three other
officers of the American Society of Composers, Authors and Pub¬
lishers on warrants Issued In Missoula County, Montana, charging
attempted extortion, attempts to obtain money under false pre¬
tenses and conspiracy, according to the New York Herald Tribune,
The charges emanated from a dispute between ASCAP and some Montana
radio stations over the payment of royalties on broadcast music,
and Mayor LaGuardia, It was said, believed that the whole ques¬
tion was a civil, rather than criminal, one.
New York detectives were about to execute the warrants
in the office of Louis D. Frohlich, ASCAP ’s general counsel, when
they received a telephone call from Summer City Hall. They took
all the papers to the Mayor's office there and a few hours later
Police Commissioner Lewis J. Valentine announced:
"This is all a very technical matter. His Honor, the
Mayor, has checked it and has instructed the Police Department to
confer with the Corporation Counsel before taking further action. "
Mr. Frohlich was one of the other ASCAP officials
accused by the warrants, which were made out last June 19 by
Ward H. Jones, Justice of the Peace of the Township of Hellgate,
Mont., on the complaint of A. J. Mosby, operator of radio station
KJVO, in Missoula County. The other two officers were E, C. Mills,
Chairman of ASCAP 's Administrative Committee, and John Paine,
General Manager,
The warrants also named as defendants Lenox R. Lohr,
President of the National Broadcasting Co. ; William W. Paley,
President of the Columbia Broadcasting System; Niles Trammell and
Edward Klauber, respectively Executive Vice-Presidents of the two
chains; A. L. Ashby, Vice-President and General Counsel, and John
F. Royal, Vice-President in Charge of Programs of NBC; Isaac D.
Levy, a director of Station WCAU, of Philadelphia, and "John Doe".
No attemot was made, however, to execute the warrants
on these officials. NBC announced that the Missoula County author¬
ities had ordered the warrants withheld as far as the NBC offic¬
ials were concerned because NBC has sent the authorities a state¬
ment asserting that the company was not guilty.
A similar statement was sent by CBS, the Herald Tribune
said, but none by ASCAP. So on Sept. 19 Edward T. Dussault,
Missoula County District Attorney, wrote the New York police either
to obtain statements similar to those received from NBC and CBS
from the four ASCAP officials "or incarcerate them under the war¬
rants of arrest that you have. "
Mr. Mills said that he went with Mr. Buck and Mr, Paine
to Mr. Frohlich’ s office not only expecting but wanting to be
arrested. He said that ASCAP wanted to fight the thing out,
rather than accept the alternative of sending a statement to
Missoula County protesting innocence and refusing to waive extra¬
dition, as NBC and CBS had done. He said he just could not under¬
stand why such a statement could be substituted for arrest.
A-sked to unravel the background of the tangled situation,
Mr. Mills said that Mr. Mosby had taken advantage of a new "anti-
ASCAP'* law in Montana to broadcast ASCAP music without paying
royalties. The radio chains were still supplying music to Mr.
Mosby without collecting any money for ASCAP, the composers' copy¬
right pool, but Mr. Mosby feared they were "consoirlng" to cut
off the music supply and demand royalties. This, he said, was
the basis of Mr. Mosby' s "haywire" charges of extortion and
conspiracy.
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Heinl Radio Business Letter
2400 CALIFOIWIA STREET
WASHINGTON, D. C.
^ 0 9—
INDEX TO ISSUE OF OCTOBER 5, 1939
Payne Ruling Seen As Slap At Radio LaT^iyers^
8
Code Cornmittee Considers Coughlin Ban .
Radio Exports Set New Monthly High .
Supreme "Court Ponders Appeal Of WLW .
Educators Critical Of NAB Code Of Ethics .
Two Unlicensed Amateurs Convicted .
Senate Debate Shows Need For Amplifiers .
Educators* Association Back LaGuardia Plea .
WOR Gets Permit For Frequency Modulated Station
Trade Notes . 8
ASCAP Opens Anniversary Music Festival . 9
RCA And Farnsworth Sign Patent Agreement . . . 10
Finch Puts 87,500 Shares On Market . 10
NBC, MBS Win D.M.A.A. Awards . 10
A. P. Directors To Consider Radio Policy . 11
No. 1162
1
(
October 3, 1939.
PAYNE RULING SEEN AS SLAP AT RADIO LAWYERS
Commissioner George Henry Payne, who has been strangely
quiet for the past year, this week let loose a blast that rocked
his erstwhile foes, the radio lawyers, and may cost them an
estimated $100,000 a year.
Delivering a rigid interpretation of a new Federal Cora-
.^untcetions Commission rule regarding interventions, Commissioner
Payne set a precedent, which if followed in subsequent FCC deci¬
sions, will curtail considerably radio litigation before the
Commission. Mr. Payne's decision is expected to be appealed to
the full Commission.
Denying a petition of the Orlando Broadcasting Co., of
Orlando, Fla. , for leave to intervene in a case involving an appli¬
cation for a construction permit to erect another station in
Orlando, Commissioner Payne held that the applicant had not shown
that the case vitally affects its own interests.
"The instant petition to intervene and to enlarge the
issues to include questions other than those specified in the
Notice of Hearing requires an interpretation of the Commission’s
Rule 1.102 which became effective on August 1, 1939", Commissioner
Payne explained. "Because the questions raised by the instant
petition a.re also involved in a number of other petitions now
pending on the motions docket, I feel that it is appropriate to
express in some detail my views concerni.ng the sufficiency of the
instant petition in the light of the Commission's present rule
governing intervention and enlargement of issues.
"The Commission' s rule relating to intervention and
enlargement of issues, reads as follows:
"’Sec. 1.102 Intervention, Petitions for intervention
must set forth the grounds of the proposed intervention, the
position and interest of the petitioner in the proceeding,
the facts on which the petitioner bases his claim that his
intervention will be in the public interest and must be
subscribed or verified in accordance with Sec. 1.122. The
granting of a petition to intervene shall have the effect
of permitting intervention before the Commission but shall
not be considered as any recognition of any legal or equit¬
able right or interest in the proceeding. The granting of
such petition shall not have the effect of changing or
enlarging the issues which shall be those specified in the
Commission's notice of hearing unless on motion the Commis¬
sion shall amend the same. '
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"The underlying purpose of the Commission in adopting
its present rule on intervention was to correct a practice which
had become prevalent under the prior rule of the Commission relat¬
ing to intervention. Under its former rule, the Commission per¬
mitted any person to intervene in a hearing if his petition dis¬
closed 'a substantial Interest in the subject matter’. This
standard was so broad and the Commission' s practice under it was
so loose that intervention in Commission hearings came to be almost
a matter lying in the exclusive discretion of persons seeking to
become parties to Commission proceedings. The experience of the
Commission during the past few years clearly demonstrated that the
participation of parties other than the applicent in broadcast
proceedings in a great many cases resulted in unnecessarily long
delays and expense to both the Commission and applicants without
any compensating public benefit. In many cases the major func¬
tion served by interveners was to impede the progress of the hear¬
ing, increase the size of the record, confuse the issues and
pile up costs to the applicant and to the Commission through the
Introduction of cumulative evidence, unnecessary cross-examination,
dilatory motions, requests for oral argument and other devices
designed to prevent expeditious disposal of Commission business.
"The underlying purpose of the present rule is to limit
participation in proceedings, particularly on broadcast applica¬
tions, to those persons whose participation will be of assistance
to the Commission in carrying out its statutory functions. The
present rule requires a petitioner to set forth not only his
interest in the proceeding but also ’ the facts on which the
petitioner bases his claim that his intervention will be in the
public interest'. The fact that a proposed intervener may have
the right to contest in a court the validity of an order granting
or denying a particular application does not in and of itself mean
that such person is entitled as a matter of right to be made a
party to the proceedings before the Commission on such applica¬
tion. Intervention in proceedings before administrative agencies
like the Federal Communications Commission is ordinarily covered
by statutory provision.
"The Communications Act contains no provisions giving
the right of intervention in proceedings before the Commission
to any person or class of persons, but expressly provides that
the Commission may conduct its proceedings in such manner as will
best conduce to the proper dispatch of business and to the ends
as will best conduce to the proper dispatch of business and to
the ends of justice. 3y the adoption of Rule 1.102 the Commission
in effect has declared that it will conduce to the proper dis¬
patch of business and to the ends of justice if it permits inter¬
vention in a proceeding befo?re it only if the making of a record
in which the facts are fully and completely developed, is facili¬
tated by permitting the requested intervention. It is this theory -
that where^ the public will benefit through aid or assistance
given to the Commission or the applicant by a party- intervener in
a broadcast hearing, such participation should be permitted -
which underlies Rule 1.102."
XXXXXXXXX
- 3 -
10/2/39
CODE COMMITTEE CONSIDERS COUGHLIN BAN
Ticklish issues, chief of which is the Father Coughlin
broadcasts, were being considered by the NAB Code Compliance
Committee in executive session early this week in Washington.
It is the first session of the Committee since the Code became
operative on Monday.
Pressure has been brought to bear on the Committee to
outlaw the commercial broadcasts of the Detroit priest, it is
understood, on the ground that they fall under the NAB Code
ban on the injection of controversial talks in sponsored programs.
As forty odd stations are paid for the programs, how¬
ever, are paid an aggregate of $6,600 a week for the time, an
appeal to the NAB Board of Directors is expected if the Code
Committee tries to limit Father Coughlin to the public forum per¬
iods.
XXXXXXXXXX
RADIO EXPORTS SET NEW MONTHLY HIGH
United States exports of radio transmitting sets, tubes
and parts attained a new monthly high level in August with a total
of $310,585, a relatively good improvement over the July total
of $280,847, according to the Electrical Division, Department of
Commerce. An important gain wa.s also registered by radio receiv¬
ing set sales which advanced from $618,890 in July to $802,154 in
August.
During the same period exports of electrical equipment
generally amounted to $9,223,656, a" decline of $288,305, or
3 percent, from the July total of $9,511,961.
Although August shipments were below those for the
preceding month, they were $479,677, or 5.5 percent, better than
foreign sales during the corresponding month of 1938.
XXXXXXXXXX
SUPFBIiilE COURT P0::DERS APPEAL OF WLW
The final word on whether or not Station WLW, Cincinnal
has a legal right to resume operation with an experimental power
of 500,000 watts awaits a decision of the United States Supreme
Court, which convened this week.
The Crosley Corporation, through Duke M. Patrick,
ashington counsel, filed an appeal for a ^^rit of certiora.ri last
4
V)r
■|
1
10/2/39
week, seeking a review of the decision of the U. S, Court of
Appeals for the District of Columbia, which had sustained the
Federal Communications Commission.
Mr. Patrick contended the lower court erred in dismiss¬
ing its appeal from the FCC decision refusing to renew the 500,000
watt authorization as well as in holding that the license which
WLW sought to have renewed was not a "license” within the meaning
of the Act. This latter contention grew out of the fact that the
super-power authorization was in the nature of a special experi¬
mental grant, rather than a standard form of license.
The highest tribunal may or may not take Jurisdiction.
Lawyers point out that in the majority of petitions for certiorari,
the court refuses to accept them unless a fundamental question of
law, heretofore undecided, is involved.
XXXXXXXXXX
EDUCATORS CRITICAL OF NAB CODE OF ETHICS
As the National Association of Broadcasters began
administering its self-imposed Code of Ethics this week, the
National Committee on Education by Radio released a critical
analysis of the Code in its bi-monthly bulletin "Education by Radio'-'.
Reciting the history of the code movement from the state¬
ment made by David Sarnoff, President of the Radio Corporation of
America, at the chain-monopoly hearing of the Federal Communica¬
tions Commission in December, 1938, the Committee organ cites
comparisons of the proposed Code and the provisions actually
adopted subsequently at Atlantic City.
"The Committee drafted a provision for dealing with
controversial issues which would have eliminated any possibility
of further continuation of such unfadrne ss " , S. Howard Evans,
Secretary, wrote, "Their proposed rule required that time for
such discussion be given rather than sold and that if controver¬
sial issues were discussed on sponsored programs a.t least two
representative and opposing points of view should be presented.
"One practical effect of such provisions was this: when
considered in relation to the recommendations for religious broad¬
casts, they seemed to be forcing Father Coughlin either to change
the character of his recent broadcasts or cease to use radio.
The very fact that such results could be anticipated is an indi¬
cation of the care with whicli the proposed code wa.s drawn. The
meaning of such a document would have been clear. Protest could
have been made about specific provisions in it and changes could
have been effected without destroying the value of the code.
5
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"The code actually adopted by representatives of the
various stations at the National Association of Broadcasters'
convention in Atlantic City is a totally different thing. While
well worded, its meaning is not clear. Its provisions are not
specific. Its objectives seem to be not so much meeting the
social obligations set for radio by Mr. Sarnoff as making the
acceptance of a code ah end in itself. This is said, not as a
criticism of Industrial self regulation, but as a comment on this
particular effort of commercial broadcasters to win public confi¬
dence. Self regulation is to be encouraged, but its objective
must be public service, not industrial public relations."
XXXXXXXXXX
TWO UNLICENSED AMTEURS CONVICTED
The Federal Communications Commission has disclosed
that Egen Stickles and Ho^^^’ard W. Crandall, both of Bradford,
Pennsylvania, have been convicted in the Federal District Court
of Erie, Pennsylvania, on charges of operating an unlicensed
amateur radio station in violation of Section 318 of the Federal
Communications Act. Egen Stickles was also convicted of operat¬
ing the station wdthout a.n operator' s license in violation of
Section 301 of the Act.
Both men pled guilty and were placed on probation for
two years. They were also required to pay the costs of the
trial. The case was prosecuted by the U. S. District Attorney
in Erie on evidence supplied by Inspector Walter Davis, of the
field staff of the Federal Co.mmuni cat ions Commission.
XXXXXXXXXX
SENATE DEBATE SHOWS NEED FOR AIvIPLIFIERS
Spectators who packed the Senate galleries this week to
hear the historic neutrality debate complained that the Senate
cha.mber is not equipped as is the House wdth a modern amplifica¬
tion system.
The words of Senators often were inaudible in the gal¬
leries, even to newspaper correspondents.
^ So far veterans in the Senate have refused to permit
installation of an amplification system on the ground that it
would offend the Senate's traditiona.1 dignity.
X X X X X X X X
6
■ V : ■; ^
10/3/39
EDUCATORS' ASSOCIATION BACK LAGUAxRDIA PLEA
As the Federal Communications Commission denied a re¬
quest of the New York City counsel on behalf of Mayor LaGuardia
to strike two of the issues in the forthcoming hearings on WNYC,
National Association of Educational Broadcasters announced its
support of the New York Mayor* s fight for amendment of FCC rules.
Ma.yor LaGuardia and New York officials will be given a
hearing October 16 on his proposal that non-commercial stations
such as WNYC be permitted to pick up and rebroadcast short-wave
programs,
"It was felt that the granting of the application", the
Educational Broadcasters said, "would pave the way for experi¬
mentation which in time might make possible a network of educa¬
tional broadcasting stations. "
Meanwhile, the New York City Council opened its Fall
season with a row over "freedom of the air", centering about
operations of the municipal broadcasting station.
The issue was raised by the Fusion- Republican-Labor
group after the Democratic majority had tried to end the practice
of broa.dcasting the Council's proceedings over WNYC.
xxxxxxxx
WOR GETS PERMIT FOR FREQUENCY MODULATED STATION
The Federal Communications Commission has given WOR,
New York, permission to construct a new frequency-modulated broad¬
casting station to service the metropolitan area. The new station
will operate with a power of 1000 watts on an ultra-high frequency
channel of 43.3 megacycles under the call letters W2X1, according
to J. R. Poppele, Chief Engineer of WOR.
Employing the Armstrong system of frequency modulation -
a complete departure from the usual methods of radiophone trans¬
mission - this new station's site is to be selected by WOR engi¬
neers within the next few weeks at the conclusion of extensive
field tests.
Developed by Maj. Edward Armstrong at his laboratories
in Alpine, N. J. , the new system is distinguished by its ability
to overcome static and noisy reception, to improve fidelity of
reproduction and to eliminate current problems of inter-station
interference and service coverage.
XXXXXXXX
7
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TRADE NOTES
W.V.B. Van Dyck, Assistant to the President of the
International General Electric Company has been decorated by the
Brazilian Government with the Order of The Southern Cross, the
highest order given by the Brazilian Government to private citi¬
zens. The presentation v^as made by Oscar Correia, Consul-General
of Brazil in New York.
Two Pennsylvania stations - WJAC, Johnstown, and WEBG,
Altoona - became affiliated with the Red Network of the National
Broadcasting Company on October 1, bringing the total of NBC sta¬
tions to 176. WJAC, owned by WJAC, Inc. , operates on a local
channel of 1370 kc. with a pov/er of 250 watts, day and night.
WFBG operates on a local channel of 1310 kc. , with full-time
power of 100 watts. It is owned by the Gable Broadcasting Company.
In a complaint issued by the Federal Trade Commission,
Martin Benjamin Rothman, trading as Esquire Products, 216 North
Clinton St. , Chicago, was charged with using lottery devices in
the sale and distribution of radios, waffle irons, silverware,
coffee tray sets, pencils and griddles. According to the com¬
plaint, the respondent furnished various push cards accompanied
by order blanks, instructions, and other printed matter for use
in the sale and distribution of his merchandise by means of a
lottery scheme. Alleging violation of the Federal Trade Commis¬
sion Act, the complaint granted the respondent 20 days for filing
answer to the cha.rges.
Two more stations joined the Mutual Broadcasting System
with the addition of WEBC and Vv-DSM, servicing both Duluth, Minne¬
sota, and Superior, Wisconsin, effective October 1. WEBC operates
on a. channel of 1290 kilocycles wdth 5000 wa.tts day, 1000 wa.tts
night. WD3M employs 100 wa.tts full-time on a frequency of 1200
kilocycles. The Mutual ta.lly now stands at 123 affiliates.
Twenty- three high schools in New York City ha.ve been
selected by the Board of Education as origination points of the
Friday broadcasts over CBS network during the 1939-40 session of
"Columoia's American School of the Air’*. A twenty- fourth high
school is soon to be selected. The Friday series, entitled ’’This
Living World'* , is presented by CBS in cooperation with the New
York City Board of Education a.nd the National Education Associa.—
tion. Prograjns dealing with history and current events a.re to be
broa.dcast from the auditorium stage of a different high school
each week. An average attendance of 2,500 pupils is expected at
each broa.dcast, so tha.t more tha.n 50,000 students will have an
opportunity to see how the **3chool of the Air’* is produced.
XXXXXXXXXX ^ -8-
VV..
10/3/39
ASCAP OPENS ANNIVERSARY MUSIC FESTIVAL
In celebration of its twenty- fifth birthde.y, the
American Society of Composers, Authors and Publishers began Sunday
night at Carnegie Hall, New York City, a week’s festival of
American music. The festival has a tv/ofold purpose: to honor
American creative artists and to serve a.s an anodyne for those
who are heavy-laden from the war abroad.
Sunday night’s program was the first of eight, all pre¬
sented by ASCAP "with its compliments and deep gratitude to the
whole American people”. The festival is to be a cavalcade of
American tonal art, according to the New York Times music critic,
taking in its stride music that is, in the words of Crene Buck,
President of ASCAP, '’serious and frivolous, sacred and secular,
songs of the soil or works for the symphony”.
The opening program stemmed from light opera and musi¬
cal comedy. The songs and lyrics of every number were written by
members of ASCAP. Dr. Frank J. Black led the orchestra, which
was assisted by a mixed chorus. Occasional solos were sung by
Hollace Sha?/, soprano, and Floyd Sherman, tenor. The evening’s
principal soloist was Jane Froman who was listed in the program
book as a soprano, a word that fails to do Justice to the range
of her voice or the passion of her singing.
It was a program for sentimentalists. Probably the
young jitterbugs would regard tunes like Victor Herbert’s ”Kiss
Me Again” and. ”A Kiss in the Dark”, or Sigmund Romberg’s ’’Indian
Love Call” as being on the "corny” side. But the old codgers
among the sentimentalists could be equally short about what the
young Jitterbugs regard as ”in the groove”, and probably they will
be when swing has its innings later in the week.
There were songs on the program that every American
has heard or had to hear in recent years. Prime favorites like
Cole Porter’s "Night and Day”, George Gershwin’s "Tlie Man I Love”,
Irving Berlin’s "Easter Parade”, Jerome Kern’s "Ole Man River”.
There was a memorial nedly of music by Victor Herbert, found.er
of ASCAP; Rudolf Friml and. George M. Cohan also were honored
with medleys and George Gershwin’s "Porgy and Bess” was reoresent-
ed.
Last night’s program honored the Negro in American
music. There was symphonic music, minstrelsy e.nd a Jam session.
XXXXXXXXX
9
• ■
;
^ *
10/3/39
RCA AJJD FARNSWORTH SION PATENT AGREEMENT
Radio Corporation of America and FarnsTvorth Television
& Piadio Corporation announce that they have entered into patent
license agreements whereby each party has acquired the ri^t to
use the inventions of the other In the fields of television and
in other fields of their respective businesses.
Radio Corporation of America acquired a non-exclusive
license under the patents of the Farnsworth Corporation for tele¬
vision receivers, for television transmitters and other radio and
sound recording and reproducing apparatus. The Farnsworth Cor¬
poration acquired a standard, non-exclusive license for broadcast
and television receivers and electrical phonographs under the
patents of Rs,dio Corporation of America, and also other non¬
exclusive licenses for television and broadcast transmitters and
for its other fields of business. Neither Conporation acquired
any right to grant sub-licenses to third parties under the patents
of the other Coirporation.
XXXXXXXXXX
FINCH PUTS 87,500 SHARES ON MRKET
A registration statement covering 87,500 shares of com-
mon stock of Finch Telecommunications, Inc., was filed last week
with the Securities and Exchange Commission at Washington, it was
announced by W. G.H. Finch, President. Public offering of the
stock is expected to be made by a group of investment dealers
headed by Distributors Group, Inc. , according to Mr. Finch.
Proceeds of the financing are expected to be used by
the company, according to Mr. Finch, for the purchase of additional
machinery, expansion of sales and advertising, for research and
development, and for additional working capital and general cor¬
porate purposes.
X X X X X X X
NBC, MBS WIN D.M.A.A. AWARDS
The National Bros dca, sting Company was presented with
three of tne four citations to radio companies as direct mail
leaders of 1939 by the Direct Hail Advertising Association at its
annual banquet held last Tveek at the Hotel Roosevelt, New York
City.
For the second consecutive year, the Mutual Broadcast-
ing bystem&s Sales Promotion Department was awarded a scroll by
the D.M.A.A. for ^general excellence and results achieved”. The
10
10/3/39
awarding of the scroll to Robert A. Schmid, Sales Promotion
Manager for Mutual, brings the total of Mutual’s sales promotion
awards for 1939 to three.
NBC executives w^hose departments received the citations
for 1939 campaigns were E.P.H. James, NBC Advertising and Sales
Promotion Manager, New York; Emmons C. Carlson, Advertising and
Sales Promotion Manager of NBC stations WMAQ, and WENR, Chicago,
and John H, Dodge, Commercial Manager of NBC stations WMAL and
WRC, Washington, D. C.
Judges were Dr. Kenneth Dameron, Professor of Marketing,
Ohio State University, Chairman; Dr. Paul H. Nystrom, Professor
of Marketing, Columbia University; C. B. Larrabee, Managing
Editor, Printer's Ink; S. H. Giellerup, Vice-President, Marschalk
& Pratt, Inc. , and L. Rohe Walter, Advertising Manager, the Flink-
ote Company, and President of the D.M.A.A.
xxxxxxxxx
A.P. DIRECTORS TO CONSIDER RADIO POLICY
Radio will be a major topic of discussion at the Board
meeting of the Associated Press, to be held in New York October 3
A thorough study and analysis of the results of the action taken
last Spring, when for the first time A.P. news was made available
for broadcasting under commercial sponsorship, will be made by
the Board and certain changes in the present setup may be made.
There are now 19 member newspapers broadcasting AP news
on sponsored programs on their owned or associated stations, pay¬
ing AP an extra assessment amounting to 2b% of the first wire and
general charge elements for the privilege. More than 100 member
papers are paying a b% extra charge to broadcast AP news on a sus¬
taining basis, according to L. P. Hall, AP executive, who said
that many of these publishers had expressed an intention of using
the news commercially as soon as their present contracts v/ith
other news services expire.
XXXXXXXXXX
11
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
(J
L. 1 3 \ •
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OCT 7 1939
IJ' '
A.M.
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F.-'-
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INDEX TO ISSUE OF OCTOBER 6, 1939
Coughlin Ban Seen In NAB Code Definition . 2
WMCA Case Proving A "Hot Potato" For FCC . 4
Communication Facilities Labelled "Contraband" . 5
Educational Programs Lag; Losses Noted . 5
Three More Amateurs Are Convicted . 6
FCC Probes Japanese Use Of G-. E. Wavelengths . 6
National Groups Laud NAB Code . 7
Cuba Closes Amateurs, Considers Ad Rates . 7
French Radio Restrictions Received In U.S . ,.8
NAB Ruling Hit By WJR Executive . 9
Songs For Soldiers Featured In Canada . 9
Trade Notes . 10
ASCAP Files Suits In Montana Fight . 11
Cincinnati Citizens Look At Television . 11
War Boosts Sales Of Radios In U.S . 12
No. 1163
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COUGHLIN BAN SEEN IN NAB CODE DEFINITION
nyhile carefully avoiding the mentioning of names, the
Code Committee of the National Association of Broadcasters this
week left no doubt in the minds of broadcasters that such spon¬
sored controversial programs as Father Coughlin, the Rev. Walton
Cole, and Judge Rutherford must be eliminated by subscribing
stations.
The Committee, holding its first meeting in Washington,
also barred sponsored talks on the neutrality issue but insisted
that ample time be allowed for pro and condiscussion of such
questions on time furnished free of charge by the broadcasters,
NAB officials admitted that complaints against the
broadcasts of Father Coughlin occupied much of the attention of
the Code Committee at its executive sessions.
The Committee, in its formal statement, also cited the
Code’s prohibition against "attacks upon another's race or
religion" ,
Some resignations from the NAB, and possibly an appeal
to the Board of Directors, are expected if the trade association
enforces its Code provisions so as to bar sponsored broadcasts
by Father Coughlin, Judge Rutherford, and others,
Edgar Bill, Chairman of the Code Committee, said its
deliberations "chiefly centered around problems involving the
religious and public controversial sections of the new Code",
"In approaching the public controversial section of the
Code", he added, which bars the sale of time for such discussions,
but which provides that such discussions be placed on the air
without cost, the Committee emphasizes the underlying principles
involved.
"There is a limitation to the number of radio channels
now available for broadcasting in this country.
"There is also a limit as to the number of hours avail¬
able per day for broadcasting. Newspapers may add any number of
extra pages to accommodate their overflow news and a.dvertising
columns. No comparable opportunity exists in the daily schedule
of a radio station, which must adhere to the hands of the clock.
"In the absence of any self-imposed policy to the con¬
trary, it is conceivable that some individuals or groups with
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10/6/39
financial means to do so could buy all the available time neces¬
sary to monopolize, dominate or control the discussion of public
Issues throu^ the radio medium, precludlns a fair opportunity
for an opposition without financial resources to present its
case to the radio audience.
"Such a situation would pervert the function of American
radio as a forum of democracy, and would irreparably shatter the
confidence of the public in the American system of broadcasting.
"In order to assure the American people for all time
that such an intolerable misuse of radio facilities cannot happen,
the Code states that ’Time for the presentation of controversial
issues shall not be sold’.
"The Code does not bar anyone or any group from using
radio. It simply denies the ri^t to buy time, for the reasons
stated.
"Representative spokesmen of groups in the field of
public controversial issues have a perfect right to request time
on the air, from a network or station, in accord with the public
interest therein as outlined in the Code. ‘Broadcasters shall
use their best efforts to allot such time free of charge, with
fairness to all elements in a given controversy. ’
"The handling of public controversial issues by radio
stations is a matter of principle and not one of personalities.
"The Code Compliance Committee realizes that whether a
matter is a public controversial subject or not is one sometimes
difficult to determine, particularly in national and statewide
affairs.
"The Committee feels, therefore, that its duty and
function is that of rendering advisory opinions, and of render¬
ing advisory opinions, and of recommending procedures through
which a sincere and uniform understanding of, and compliance with
the Code, may be achieved.
"Toward such ends, the Committee holds as self-evident
that no determination as to the character or classification of a
proposed program or radio address can be established until an
advance script has been examined by the station management,
"The Committee recommends, therefore, that
(a) Since discussions of controversial public
issues have been eliminated from paid com¬
mercial broadcasts, adequate time for the
presentation of controversial public issues
shall continue to be provided free of charge
by each station or network, in accordance
with the public interest therein.
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10/6/39
'•(b) All such scripts shall be required in
advance, for examination in light of
the Code.
"(c) Under no circumstances will compensation
be accepted by the station or network for
time consumed by the spokesman of a contr-
versial public issue, unless,
"(d) The spokesmen appear on a public forum
type of broadcast regularly presented, in
conformity with the Code, as ’a series of
fair-sided discussions of public issues
and when control of the fairness of the
program rests wholly with the broadcast¬
ing station or network’ . "
xxxxxxxx
WMCA CASE PROVING A "HOT POTATO" FOR FCC
The case of WMCA, New York, which the Federal Communi¬
cations Commission attacked with confidence a few weeks ago,
has become a "hot potato” for the FCC, it was learned this week,
and has the Commission stymied for the time being.
Sharply split over what action should be taken, the FCC
has used the absence of Commissioner Thad Brown to postpone action
for a week or ten days. Commissioner Brown left the middle of
the week to resume hearings on the Great Lakes radio traffic
inquiry.
The reported line-up within the Commission is: Com¬
missioners Frederick Thompson and George Henry Payne are urging
that WJiCA’ s license be revoked. Commdr. T. A.M. Craven and Norman
S. Case think that the evidence does not justify any drastic
punishment though they would be agreeable to a reprimand.
The other three Commissioners appear likely to jump
either way although Paul Walker may not participate as he did
not attend the hearing. Chairman James L, Fly, while harsh in
his conduct of the hearing, is understood to be listening to the
argiMents of members who are opposing revocation.
xxxxxxxxxx
The Federal Communications Commission granted condi¬
tionally this week the application of the Nebraska Broadcasting
Corporation for a new station in Fremont, Neb., to operate on the
frequency 1370 kc. with power of 250 watts day, 100 watts night,
unlimited hours of operation.
xxxxxxxxxx
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10/6/39
COMMUNICATION FACILITIES LABELLED "CONTRABAND"
"All means of communication Lave been listed as "contra¬
band of war" by G-reat Britain, according to information received
by the Commerce Department from the U. S. Embassy in London,
"No official interpretations by the British Government
as to what is comprised under the above classes of goods or as to
the conditions of enforcement of the contraband proclamation have
yet been received", the Commerce Department stated.
XXXXXXXX
EDUCATIONAL PROGRAMS LAG; LOSSES NOTED
American educational radio programs lag considerably
behind those of pre-war Britain, according to T. H. Shelby, of
the University of Texas, who has just completed a two-summer sur¬
vey of radio in education imder a Rockefeller Founda.tion grant.
At the same time the National Association of Educa¬
tional Broadcasters, while admitting setbacks within the last
year, stated that "the progress which many educational stations
made in securing better facilities and in the improvement of
plant and equipment was balanced against three particularly un¬
favorable developments.
"The Ohio School of the Air which was reinstated only
last year had to be dropped because of lack of an appropriation
by the State Legislature. In Florida, Station WRUF was forced to
discontinue broadcasting as a strictly non-commercial station
because the item in the State budget for its maintenance and
operation was vetoed by the Governor after it had been given
approval by the State Legislature. In Wisconsin, the State radio
station was compelled to ask for a postponement on its applica¬
tion to the Federal Communications Commission for a clear channel
because of the failure of the State administration to set aside
the necessary funds. "
Dr. Shelby found that techniques are best in the Eastern
United States with the West in second position and the South and
Southwest on the lowest rung. Carefully prepared programs and
professional radio technicians have raised the Eastern area into
first rank, he believes.
Acknowledging the present meager advantages of the South¬
west, the University of Texas this Fall began a campaign on several
fronts to remedy the deficiencies as far as Texas is concerned.
This institution has created a bureau of research in education by
radio, has built a $20,000 radio studio, and appointed a general
program production director of university radio activity.
XXXXXXXX
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THREE MORE AMATEURS ARE CONVICTED
The Federal Communications Commission announced this
week that Lester B. Bentley, Max Press and Louis D, Welsh, all
of Kokomo, Indiana, have been convicted in the Federal District
Court, at Indianapolis, Indiana, on charges of operating an
unlicensed radio station in the amateur bands in violation of
Section 318 of the Federal Communications Act. All three men
were also convicted of operating the station without operator’s
licenses in violation of Section 301 of the Act.
Indictments were secured against each of the three
defendants. They were arrested and upon arraignment in the
District Court, they all entered pleas of guilty. The Court fined
each defendant $10.
The case was prosecuted by Val Nolan, United States
Attorney for the Southern District of Indiana, on evidence sup¬
plied by Inspector H. T. Gallaher, of the field staff of the
Federal Communications Commission.
xxxxxxxx
FCC PROBES JAPANESE USE OF G.E. WAVELENGTHS
The Federal Communications Commission this week began an
investigation of the reported blanketing of General Electric's
powerful San Francisco station in the Far East by Japanese broad¬
casts.
A press association dispatch from Shanghai stated that a
new series of Japanese broadcasts had been started on the same
wavelength as used by the Treasure Island station at the San
Francisco World* s Fair. The result, the dispatch said, was a com¬
plete blanketing of the United States broadcasts for Oriental
listeners.
"Broadcasts from the Treasure Island station have been
extremely popular throughout the Orient", the dispatch stated.
"Thousands of listeners will be cut off by the activities of the
Japanese station. "
FCC officials said that no report has yet been received
from the Commission’s representative in San Francisco but one is
expected within a few days.
II "If the report is found true", an FCC spokesman said,
representations will be made to the State Department. Japan has
no right to use the wavelengths assigned to General Electric as
they were allocated to the United States by international treaty. "
Japan is a party to the international radio treaties
signed at Madrid in 1932 and at Cairo in 1938.
XXXXXXXX
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NATIONAL GROUPS LAUD NAB CODE
The National Association of Broadcasters this week
released statements from a number of national organizations and
distinguished Americans who have commended and endorsed the new
NAB Code which became effective October 1, and which provides
that controversial public discussions be accorded free time and
barred from ”paid time", and which declares that "radio, which
reaches men of all creeds and races simultaneously, may not be
used to convey attacks upon another’s race or religion".
Prominent among the organizations which issued commenda¬
tory statements are the National Council of Catholic Men, the
Federal Council of the Churches of Christ in America, the American
Civil Liberties Union, the National Council on Ereedom from
Censorship, the National Council of Women, the General Federa¬
tion of Women’s Clubs, the Boys’ Clubs of America, the Association
of National Advertisers, the American Association of Advertising
Agencies, and individuals including William Allen White, George V,
Denny of Town Hall; Lyman Bryson of Columbia University.
xxxxxxxxxx
CUBA CLOSES AMATEURS, CONSIDERS AD RATES
The President of Cuba is reported to have signed a
decree closing all amateur radio and telegraph stations pending
reorganization in accordance with agreements of the Inter American
Radio Conference of December 19, 1937, according to the American
Commercial Attache, at Havana. The amateur stations are to be
closed for a period of 30 days which may be extended to 60 days.
The Cuban Bureau of Ra.dio is reported to have under
consideration a schedule providing for a series of rates to be
charged for time by the various long wave broadcasting stations.
The rates will be set in accordance with the classification of
the various stations on the bases of power, etc. , the report to
the Commerce Department stated.
Press reports state the Bureau of Radio is considering
the closing of 11 short wave stations for not complying with the
agreements of the Inter American Radio Conference or with regu¬
lations of the Department of Communications.
xxxxxxxxx
The Federal Communications Commission this week granted
the application of Civic Broadcasting Corporation, Syracuse, N.Y.
for a new station to operate on 1500 kc. , 100 watts, unlimited
time.
XXXXXXXXX
7
i
10/6/39
m
FRENCH RADIO RESTRICTIONS RECEIVED IN U. S.
War-time restrictions on the operations of radio sta¬
tions in France have been received by the U. S, Conimerce Depart¬
ment. Unlike the Nazis, the French have placed no curb on the
listeners.
Pertinent provisions of the new regulations follow:
"All radio electric broadcasting stations not in keep¬
ing with the needs of national interest are suppressed. The
operation of broadcasting stations maintained is assured by the
State or Governmental services. Their allotment between the
various ministerial departments charged with their operation is
fixed by interministerial decree.
"Private radio electric receiving sets are left, in
principle, at the disposition of their owners under the same
conditions as in time of peace.
"The military authorities are empowered to seize any priv¬
ate receiving sets, which they Judge of utility to suppress in the
Interest of national defense.
"Private broadcasting stations and broadcasting- receiv¬
ing stations passing into the service of the State are requisi¬
tioned. The material of the suppressed radio electric stations is
notified by the municipal authority or the public colonial author¬
ity to the qualified military or maritime authority which will
cause it to be removed, kept under guard or sealed up."
"The service of private radio telephonic communications
is suspended.
"Under reserve of the measures of control defined here¬
after, the service of private radio telegraphic communications
is maintained, except with the enemy countries and to the exclu¬
sion of lines which require the use of radio electric lines or
stations situated in enemy countries. "
"The maintenance of unauthorized radio electric stations,
the establishment of fraudulent radio electric stations, the use
of these stations, the communication to third parties of informa¬
tion received or transmitted by radio telegraph or radio teleohone
of interest to national defense or the security of the state, will
expose the delinquents to seizure of the apparata without prejudice
to the penalties applicable respectively to these facts. "
XXXXXXXXXX
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10/6/39
NAB RULING HIT BY WJR EXECUTIVE
John F. Patt, Vice President of the key station in
the Rev. Charles E. Coughlin’s Sunday afternoon radio network,
Thursday branded the NAB Code ruling on controversial broadcasts
a step ’’in the direction of censorship and abridgement of free
speech”, according to an Associated Press dispatch from Cleveland.
Mr. Patt is Vice President of WJR in Detroit, the origi¬
nating station for the broadcasts, and of affiliated WGAR in
Cleveland.
Mr. Patt asked if the Association contemplated ”that
this provision of the Code would mean that such famous personal¬
ities, commentators and speakers as W. J. Cameron, Dorothy Thomp¬
son, Boake Carter, Lowell Thomas, Edwin C. Hill, H, V. Kaltenbom,
John B. Kennedy, Elmer Davis, Hugh Johnson and many others could
never again express an opinion on a sponsored program?
xxxxxxxx
SONGS FOR SOLDIERS FEATURED IN CANADA
The Canadian Broadcasting Corporation announced this
week that its radio programs henceforth will feature songs that
are liked by soldiers. It also will carry ”on the spot” broad¬
casts from camps and barracks over national networks.
’’Canada’ s national war effort, now gathering momentum
daily, is reflected in different ways in the programs offered by
Canada's national radio”, the Broadcasting Corporation stated.
“First in interest to everyone in the Dominion, is the
welfare of the men who have been first to answer their country’ s
call. In tents and barracks in every Province, these high-spirited
young Canadians are training for the heavy task that they have so
willingly accepted as one of the obligations of citizenship in a
free country.
”Just as an elder generation of Canadians did twenty-
odd years ago, these soldier lads of 1939 are finding an outlet
for their natural exuberance in sing-song and concert party. So
that their relatives and friends, and in fact every home in Canada,
can share and enjoy their infectious high spirits, CBC is making
these sing-songs and concerts a national network feature. The
first was 'The Army Sings’, broadcast fram Halifax to the national
network on September S7. This week, on October 11, from 10:00 to
10:30 P.M.EST, Canadian listeners will hear ’The Navy Sings’, also
broadca,st from Halifax. The troops themselves, as well as the
general public, will be entertained throughout the Fall and Winter
by lively variety shows of the sort that every soldier loves.
"An additional, and particularly interest feature will
be actually ’on-the-spot’ broadcasts from camp and barracks, which
will describe at first hand the daily life of the Canadian soldier
in training, his work and his relaxation. ”
f
1
10/6/39
TRADE NOTES
World Radio Markets series of the Department of Commerce,
released this week, covered Tunisia and Windward Islands,
The Radio Corporation of America reduced its bank loans
by $1,000,000 to $4,000,000 on May 26, a statement to the Secur¬
ities and Exchange Commission showed this week. The loans remain¬
ed at $4,000,000 on August 31.
A. D. Willard, General Manager of Station WJSV, Washing¬
ton, participated in a broadcast Thursday night sponsored by WJSV
and the Washington Post . inaugurating a traffic safety campaign
in which special award tags will be given motorists who perform
unusual acts of courtesy.
Robert A. Simon, pioneer radio writer, annotator and
music critic of The New Yorker magazine, will Join WOR’ s program
department next Monday as Director of Continuities, according to
Julius F. Seebach, Jr., WOR’s Vice President in Charge of Programs,
The Federal Communications Commission announced this
week its proposed findings of fact and conclusions, proposing to
grant the application of WSUI, State University of Iowa, Iowa
City, Iowa, to increase power from 1 KW day and 500 watts night,
to 1 KW night, 5 KW day, unlimited time on 880 kc. , move trans¬
mitter to a new site locally, install new equipment, and employ
a directive antenna both day and night. The application was
granted conditionally and all parties concerned will have opportun
ity to file exceptions within 20 days, and thereafter to request
oral argument on the proposed report and exceptions.
The Columbia Broadcasting System's gross sales for last
month amounted to $2,565,246 and represented a boost of 60.2^
over the billings for September, 1938. The National Broadcasting
Company accounted for $3,315,307 on its two networks, an increase
of 11.3^ over last year. NBC's breakdown figures $2,648,892 for
the red (WEAF) link and $666,415 for the blue (WJZ) network.
xxxxxxxxx
10 -
10/6/39
ASCAP FILES SUITS IN MONTANA FIGHT
American Society of Composers, Authors and Publishers
this week fired its first retaliatory shot against the Montana
broadcaster contingent by filing several infringement suits
against Ed Craney, who operates KGIR, Butte, and A. j. Mosby,
owner of KGVO, Missoula, according to Variety.
Actions involving Mosby were filed with the U. S.
District Court in Mosby 's home town, while the Craney suits were
filed with the Federal Court in Helena.
Complaint against Mosby lists Harms, Inc. , for seven
infringements, Leo Feist, Inc., for five, Santly-Joy-Select, Inc.,
for four, Chappell & Co. for five, Irving Berlin, Inc., for six,
while the batch named in the Craney case consists of five infringe¬
ments of Berlin works, four of Chappell's and nine of Harms'.
Additional complaints, ASCAP announced this week will be filed
against both broadcasters as soon as papers can be prepared in
behalf of many other copyright owners.
XXXXXXXXXX
CINCINNATI CITIZENS LOOK AT TELEVISION
Citizens of Greater Cincinnati had their first peek at
television and technical observers gathered information on their
reactions during a public demonstration held in one of the city's
department stores last week.
The effectiveness of contrast in clothing, and of con¬
tinuous action before the camera, was noted by members of the WLW
special events department in charge of directing entertainment for
the six-day demonstration. Floor shows from Cincinnati night
clubs and entertainers of the WLW staff drew large attendances.
The biggest crowds, however, gathered when members of the Cincinnati
Reds appeared to talk to and be viewed by enthusiastic baseball
fans.
Technical equipment, installed and manned by R. C. A. ,
did not provide actual television broadcasting. Instead, the
iconoscopes, or television cameras, were located on the fourth
floor of the store and connected by coaxial cable with receiving
sets on the ninth.
XXXXXXXXXX
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10/6/39
WAR BOOSTS SALES OF RADIOS IN U. S.
"The European war has apparently stimulated interest
in radio listening, with the result that sharp sales gains were
experienced last month by several manufacturers", according to
the New York Times* business page. "Pilot Radio Corporation has
Jumped from twenty-fifth to second position in total portable
and table model set sales, the company reported; Stewart-Wamer
receiver sales for September were the largest in the company's
history, while the General Electric model being promoted currently
in the Consolidated Edison campaign has sold exceptionally well.
"Eight months ago Pilot decided that its export market
would be seriously threatened and concentrated on portables for
the Summer months and plug-in sets that required no outside
aerials for this Fall and Winter for the domestic trade. News¬
papers and radio broadcasts were used and the response was so
successful that the campaign will be broadened through Austin &
Spector Company, Inc.
" Stewart- Warner radio sales for September increased
317 percent over the like month of 1930. The company has been
running an intensive newspaper campaign in major markets. The
demand for radio-phonograph combinations has been so heavy that
some distributors have already been caught short on these models.
"The General Electric radio, which is being heavily
advertised in New York newspapers, has sold very well, with some
dealers taking two to three times their original quotas. "
XXXXXXXXX
12 -
r r
Heinl Radio Business Letter
Q 2400 CALIFORNIA STREET WASHINGTON, D. C.
■y _
INDEX TO ISSUE OF OCTOBER 10, 1939.
Television At Crucial Stage, FCC Informed . 2
Payne Ruling Hit; Full Hearing Asked . 3
FCC To Get New Press Chief . 5
FTC Closes Case Against New York Firm . 5
Elliott Roosevelt Cites Code, Speaks Anyway . 5
U. S. Radio Project Employs 383, Draws Fan Mail . 6
Map And S-W News Log Issued By Manufacturer . 7
Spies, Spies Everywhere, FC^ Tipsters Say . 7
Civil Liberties Union Defends NAB Code . 8
Trade Notes . 9
Crosley Explains Failure To Carry World Series . .10
Cuban Rpdio Imports Decline In 1939 . 10
LaGua.rdia Lauds ASCAP As Music Week Closes, . 11
Code Ruling Justified, Says Editor . ,11
No. 1164
1
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3
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A W* X
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i
October 10 , 1939
TELEVISION AT CRUCIAL STAGE, FCC INFORMED
The secondary report of a Special Committee of the
Federal Communications Commission investigating television, ex¬
pected to be submitted to the full Commission sometime this month,
is being awaited with keen interest by broadcasters because of the
probable effect it may have on the future course of visual broad¬
casting in the United States.
Television has reached a crucial stage, according to
information reaching the Federal Communications Commission, and
unless some aid is accorded it either by governmental subsidy or
commercial backing its progress may be halted before it is well
begun.
Sales of television receivers have been disappointing,
even in New York City, where visual broadcasting has made the most
advances, the FCC has been informed. Meanwhile, television in
European countries, especially Great Britain, has been shunted
aside by the war.
The special Television Committee of the FCC, which has
been studying the problem for months, is headed by Comdr. T.A.M.
Craven and includes Commissioners Noman S. Case and Thad H. Brown.
Many millions of dollars have been spent by the labor¬
atories and manufacturing companies interested in radio develop¬
ment in bringing the art to its present state. During the past
year it was said that more than half a million dollars has been
used in further experimentation, and unless the industry can
receive some encouragement from the governmental agency the labor¬
atories are about ready to stop. They can't stand the pace of
continually putting out money, with no opportunity to cash in to
any extent.
While the regulatory body is not disposed to throw any
obstacles into the efforts of the developers to obtain some return
on the results so far, it is giving very serious study to the prob¬
lem in an effort to find a way that the project can be encouraged,
at the same time protecting both the rights of the industry and
the public.
In a preliminary report, the Committee headed by
Commissioner Craven held that television wa.s not yet ready for
public reception, predicated largely on the belief the projected
sets might be subjected to mpid obsolescense without any salvage
value. Furthermore, at that time, there was a belief there was
not enough information on which to lay down the urogram for
establishment of stations.
- 2 -
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10/10/39
The early report had the unintended effect of cooling
the public toward efforts of the manufacturers to get their sets
on the market, and the industry is said to have suffered, so much
so in fact that the matter was called to the attention of the staff
of the Commission. The report merely tried to tell the public of
the developments so that it would know what it was buying.
Further development which has come to the attention of
the Commission since the preliminary report is that the matter
of distribution of programs is nearer solution. The first belief
was that it would have to be distributed by chains over the expen¬
sive coaxial cable, but now it is believed the point has been
reached where the programs may be chained by the radio relay;
that is the signals instead of being piped by telephone lines as
the sound programs are now, they will be broadca.st and a chain
station would pick up the signals on a receiver and rebroadcast
them.
XXXXXXXX
PAYNE RULING HIT; FULL HEARING ASKED
Caustically criticizing the ruling of Commissioner
George Henry Payne in the Orlando (Fla.) case, George 0. Sutton,
Washington attorney, asked for a full hearing this week before
the Federal Communications Commission,
Other Washington radio attorneys are watching the case
with interest because of the effect it may have on future legal
practice and the rights of radio stations to intervene in pend¬
ing cases.
After complaining tha.t he had never been notified of
Commissioner' Payne ’ s ruling, Mr. Sutton insisted that the Com¬
missioner* s ruling is not in conformity with the FCC rule, Just
adopted, relating to interventions,
"This petitioner sympathizes with the Clommission in its
many problems", the brief stated, "but it is in no wise guilty
nor responsible for the acts and conditions therein set out. It
is further submitted that if the Commissioner feels that it is
Incumbent to make a public condemnation of the practices which
the Commission has created by its own rules and regulations, all
of which acts and conditions were brought about with its know¬
ledge, consent and approval, and the Commission desires to change
such deplorable conditions, it cannot be blamed upon this petition¬
s'', unless explicit accusations and illustrations are cited,
"Exception is taken to the first paragraph on page 3 of
the decision of Commissioner Payne as contained in mimeograph 36567.
If the purpose of the present rule 1.102, relative to intervention,
is correctly stated in the first sentence of this paragraph, then
the Commission as a matter of law should condemn this rule as
3
10/10/39
being unjust, illegal, arbitrary, and contrary to existing court
decisions on this point, or else first convince the courts that
they should over-rule certain existing decisions relative to such
practice. If the Commission is attempting by this explanation of
the rule, to limit intervention only to those parties who come In
as amicus curiae, then only confusion will result, with resulting
long litigation to correct the Interpretation of the rule. The
Interpretation here given the rule is not in conformity with the
position toJten by the Commission and its counsel in many appeal
cases before the courts. Commission counsel has contended time
and again that it was not bound by strict rules, but that it was
seeking all the relevant facts it could obtain with respect to
the rights and interests of all parties concerned, upon which it
should base a decision. There has been no public notice hereto¬
fore that the Commission has changed its policy in this respect. . .
"The argument that ’the Communications Act contains no
provisions giving the right of intervention in proceedings before
the Commission to any person or class of persons, but expressly
provides that the Commission may conduct its proceedings in such
manner as will best conduce to the proper dispatch of business and
to the ends of Justice', cannot be construed to prevent interven¬
tion in the li^t of Section 4(j) of the Act. Evidently the langu¬
age 'that the Commission may conduct its proceedings in such a
manner as will best conduce to the proper dispatch of business and
to the ends of Justice' is also taken from this section. How can
the third sentence of this section be made compatible with the
last two sentences in the first paragraph on page 3 of the instant
decision, wherein it is stated that only where the public will
benefit through air or assistance given to the Commission by an
applicant or intervener is he entitled to participate in such a
proceeding.
"The third sentence of Section 4(J) states definitely:
'Any party may appear before the Commission and be heard, in per¬
son or by attorney.' The language in other sections of the Act
(402(b)-405) also indicates the intent of Congress that the Com¬
mission shall attempt with its specialized knowledge of the field
to obtain all the necessary facts before trying to reach a legal
conclusion that the granting of a specific application is or is
not in the public interest .
"It is submitted that it is not a wholly unnecessary,
wasteful, and costly procedure for the Commission to hold a public
hearing and permit interested parties to participate therein in
order that their rights may be determined. It is submitted, how¬
ever, that it is a wholly unnecessary and wasteful procedure for
the Commission to ignore the rights of interested parties, hold an
ex parte hearing with respect to the rights of such parties, and
then to cause litigation in the courts to determine whether or
not such interested parties are entitled to participate in the
initial hearings. Again, such a procedure is a return to the
conditions when the Commission undertook, during the early thir¬
ties,^ to grant licenses without a hearing, which in turn abrogated
tne rights of interested parties, and vAiich has been condemned by
the courts.
- 4 ~
10/10/39
"Exception is taken to the first paragraph on page 5 of
the decision of Commissioner Payne in Docket 5698 in that the
procedure therein suggested is wasteful of time and energy both
on the part of the Commission and interested parties. If the
purport of the first sentence in the paragraph is to the effect
that one or more hearings should be held on an application, and
interveners should not be permitted to participate in all proceed¬
ings, then it smacks of Star Chajnber proceedings and defeats the
argument of the Commission with respect to the saving of time and
money, "
XXXXXXXX
FCC TO (ST NEW PRESS CHIEF
G-eorge Gillingham, of the TVA press section, is to
be named shortly as head of the Press Section of the Federal
Communications Commission, it was learned this week.
Chaiman James L. Fly, who was general counsel of TVA,
is said to have asked for Mr. Gillingliam' s transfer.
XXXXXXXX
FTC CLOSES CASE AGAINST xNEW YORK FIRM
The Federal Trade Commission has closed its case against
Harry G. Cisin, trading as Allied Engineering Institute, 98 Park
Place, New York, who was charged with misleading representations
in the sale of radio receiving sets.
The Commission was advised that the respondent had sus¬
pended the manufacture and sale of radio receiving sets and dis¬
continued the practices charged in the complaint. On September 19,
1939, he submitted a statement adopting and agreeing to abide by
the fair trade practice rules for the radio receiving set manu¬
facturing industry promulgated July 22, 1939, in the future conduct
of his radio business.
XXXXXXXXX
ELLIOTT ROOSEVELT CITES CODE, SPEAKS ANYWAY
Elliott Roosevelt Saturday warned he might be cut off
the air, then said in a radio speech from Fort Worth, Texas, he
favored repeal of the a,rms embargo.
The National Association of Broadcasters recently impos'
ed a ban on discussion of controversial questions by commentators
on sponsored programs.
XXXXXXXXXX
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10/10/39
U.S. RADIO PROJECT EMPLOYS 383, DRAWS FAN MAIL
The radio project of the U. S. Office of Education
employs 383 persons, 16 of whom are supervisors, and now sponsors
three educational programs, which have drawn 257,000 fan letters
within the past year, according to a booklet released this week
on "Federal Activities in Education" and published by the National
Education Association.
The radio project, financed by Federal relief funds,
was established in December 1935, the booklet recalls.
"Its twofold objective is: (1) to provide employment
for persons with radio and scrip t~ writing talent who are on
relief, and (2) to discover ways in which radio can be used to
promote education, both for organized instruction and for general
enlightenment", the article states. "The project uses radio
facilities offered free to the Office of Education by commercial
radio corporations for public service programs.
"The project is attempting to demonstrate that an edu¬
cational agency can create and present radio programs of an informa¬
tive and educational character which rival in quality the best
commercial broadcasts. In promoting education by radio the pro¬
ject does two things: it engages in network or exchange broadcast¬
ing, and it gives aid and counsel to schools, colleges, and local
radio stations.
"Series of half-hour programs are produced in cooperation
with broadcasting networks and national organizations. During the
current year (1938-39) three such series have been broadcg.3t,
'Wings for the Martins' is a program about modem thought and
practice in education, particularly as reflected in fajnily life.
'Americans All - Immigrants All' dramatizes the contributions of
many races and nationalities to the growth of the United States.
'The World Is Yours' deals with the advances of science as evi¬
denced in the research and exliibits of the Smithsonian Institution.
"The Educational Ra.dio Script Exchange of the radio pro¬
ject, organized in 1936 to serve as a clearinghouse for radio
scripts and production suggestions, offers scripts free of charge
to high schools, college groups, workshops, and other local radio
groups producing their own programs. The Federal project has also
developed the use of supplementary visual aids designed to help
listeners to understand the programs better, and it has distribut¬
ed many copies of this material. The local development of radio
has also been promoted by the allocation of emergency relief funds
to school and college radio centers. The Office of Education has
helped to establish a short-term radio workshop at New York Univer¬
sity for educ8-tors interested in obtaining radio experience.
- 6 -
,> -I ■ '
i
10/10/39
”The radio project Is carried on under the Commissioner
of Education, and is in immediate charge of a director. It in¬
cludes a script division for writing programs, a production divi¬
sion (now centered in New York City), an audience preparation
division, and a business division,
"The National Broadcasting Company and the Columbia
Broadcasting System and their affiliates cooperate with the Office
of Educe.tlon and contribute funds for the project. Funds have
also been advanced by the Federal Radio Education Committee for
the development of the Script Exchange, by the Rockefeller Founda¬
tion for scripts on local government, by the Smithsonian Institu¬
tion for expenses incurred in preparing a series of scripts, by
New York University for the radio workshop, and by the Committee
on Scientific Aids to Education for recordings. A number of
private educational organizations, such as the Service Bureau for
Intercultural Education and the National Congress of Parents and
Teachers, have cooperated extensively in the production of certain
series of programs, "
xxxxxxxx
MAP AND S-W NEWS LOG ISSUED BY MANUFACTURER
Stromberg- Carl son, radio manufacturer, this week dis¬
tributed copies of a handy booklet entitled 'Hyiap of Europe and
Short-Wave News in English Log.
Besides the clear, colored map of Europe, the folder
lists the news-in-English broadcasts from London, Berlin, Paris,
Rome, and other European capitals in Eastern Standard Time. It
also carries a diagram showing the best times to use different
short-wave bands.
Tips on tuning short-wave sets, a time conversion table,
foreign language news broadcasts beamed on North America, and a
list of NBC, CBS, and liBS stations a.re included in the folder.
xxxxxxxxx
SPIES, SPIES EVERYWHERE, FCC TIPSTERS SAY
Federal Communications Commission mobile monitor sta¬
tions have been kept busy in recent weeks, especially in the
National Capital, checking on reports of illegal short-wave trans¬
missions, often along the favSionable "Embassy Row".
Tipsters, who often mistake some form of electrical
interference in their households, for "outlaw" station operations,
have been unusually active since the European war started, FCC
officials said.
Most of the tips, unless too outlandish, have been
investigated, but no unlicensed stations have been located to
date in Washington.
xxxxxxxx
- 7 -
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10/10/39
CIVIL LIBERTIES UNION DEFENDS NAB CODE
The American Civil Liberties Union this week came to the
defense of the new Code adopted by the National Association of
Broadcasters in a sharp reply to an attack on the Code by John F.
Patt, Vice-President of WJR in Detroit, and WGAR in Cleveland.
"In a telegram to the NAB Code Committee, Mr. ^att
charged that the Code violates freedom of speech and 'goes beyond
self- regulation into the realm of strangulation, stagnation and
censorship'", the statement released by the American Civil
Liberties Union sets forth.
"Replying to Mr. Patt's attack, the Civil Liberties
Union, in a statement signed by Arthur Garfield Hays and Morris L,
Ernst, general counsel, and Quincy Howe, Chairman of the National
Council on Freedom from Censorship, declared:
"'It strikes us as highly improper for the Detroit sta¬
tion at which Father Coughlin's programs originate to criticize
the new NAB Code for denying free speech. Complaint has already
been made to the Federal Communications Commission against that
station for denying opponents of Father Coughlin an opportunity to
reply to him. What Mr. Patt really means is that the profit has
been taken out of free speech since hereafter Father Coughlin or
anybody else under the rules of the new Code cannot purchase time
for the discussion of public issues. This is wholly in the inter¬
est of free speech since it puts everybody on the basis of equal¬
ity and puts people without money on precisely the same footing
as people with it. The new Code corrects a situation so obviously
unfair to free speech as to commend Itself to every reasonable
person. It does away with the justified criticism that public dis¬
cussion has been weighted heavily on the side of those with large
sums to buy time.
"'Father Coughlin's sponsors evidently do not believe
in fair play. They want a "fair advantage" through the purchase
of time. The Civil Liberties Union condemns such an attitude and
commends the enforcement of the Code in the interest of equal
rights for all in the discussion of public issues. ' "
xxxxxxxx
The Commerce Department reports that the Government of
India anticipates purchasing American radio transmitting equipment,
but has no details or indications as to whether the proposed pur¬
chases are to be considerable. Firms with representatives in
British India should suggest attention to this possibility, the
Department advises.
XXXXXXXX
- 8 -
10/10/39
TRADE NOTES
Through the cooperation of the Radio Corporation of
America, the National Broadcasting Company and the RCA Manufactur¬
ing Company, two one-reel sound films, '’Air Waveo" and "Television
produced by Rathe for theatrical distribution, have been made
available to schools, churches and clubs at transportation costs.
The Columbia Broadcasting System, operator of Station
WJSV, Washington, last week paid a $1,000 fee, equivalent to
the cost of domesticating in the State of Virginia in order to
avoid the necessity of defending an appeal to the State Supreme
Court from a decision of the Corporation Commission.
An order entered at Richmond showed that Columbia
planned to move its station to Maryland by May 1, 1940, and had
agreed to pay the $1,000 if the Sta.te would drop its proposed
appeal, to which the Attorney General agreed.
In honor of the 1939 World Series broadcasts, which
the Mutual Broadcasting System handled exclusively, WOR-Mutual‘ s
Engineering Department designed a special microphone, J. R.
Poppele, Chief Engineer of WOR, produced the "Baseball Microphone"
Its base is shaped like a home plate. The standard is a minia¬
ture baseball bat, and the mike itself - a non- directional, wide¬
angled "eight-ball” mike - is enclosed in an enlarged replica of
a baseball.
Columbia Broadcasting System this week announced that
Dr. Lee de Forest, distinguished pioneer in the development of
wireless communication, has accepted membership on the Board of
Gonsulta.nts of "Columbia’ s American School of the Air".
Dr. de Forest will serve as advisor to the air school in fields of
science in general and radio technology in particular. His narnie
brings to 41 the number of prominent educators and scientists who
aid in planning the curriculum and supervising the educational
contents of the ten-year^old "American School of the Air” programs
Neville Miller, President of the ^^'ational Association of
Broadcasters, will be heard over WCR and the coast-to-coast Mutual
Broadcasting System on Saturda.y from 1:30 to 1:45 P.M., EST, when
he addresses the luncheon meeting of the National Conference on
Civil Liberties.
XXXXXXXX
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10/10/39
CROSLEY EXPLAINS FAILURE TO CARRY WORLD SERIES
The following statement was issued late last week by
James D. Shouse, Vice President of the Crosley Corporation in
charge of broadcasting.
•’The Crosley Conporation, operators of WLW and WSAI,
take this opportunity to state their deep regret at being unable
to supply their audiences with play-by-play descriptions of the
World Series games. We consider this to be particularly unfortu¬
nate in view of the fact that for the first time in 20 years,
Cincinnati* s own team was a participant.
"Station WSAI has for many, many seasons brought com¬
plete play-by-play descriptions of all baseball games. However,
permission to carry the World Series broadcasts on WSAI was
denied, even though we offered to make no charge to the Gillette
Company or the Mutual Broadcasting System, who purchased the
exclusive broadcast rights from the Commissioner of Baseball.
WLW was offered the broadcast of the world series, but inasmuch
as the games were sold this year on a commercial basis we did
not desire to break long-term contracts entered into with other
advertisers in order to carry advertising for a World Series
sponsor. WLW also was offered at no cost for the Series games
occurring on days when WLW was available.
"WSAI will resume the broadcasting of baseball games
for the entire season of 1940. In making this announcement we
do not wish to imply any criticism of the arrangements which
were made, but have merely felt that our listeners are entitled
to an explanation of the situation. "
xxxxxxxxx
CUBAN RADIO IMPORTS DECLINE IN 1939
Private compilations show that Cuban imports of radio
sets during the first eight months of 1939 numbered 11,257 units,
with a tota.l value of 209,039 pesos, as compared with 12,897 sets
valued at 306,947 pesos, entered during the corresponding period
of 1938, according to the American Commercial Attache.
Imports from The Netherlands during the first eight
months of this year numbered 1,100 valued at 17,674 pesos, as
compared with 948 units valued at 20,022 pesos, during the cor¬
responding period of last year.
xxxxxxxx
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XXX-
LaGUARDIA LAUDS ASCAP AS MUSIC WEEK CLOSES
Mayor LaCuardia, after participating in the ASCAP con¬
certs at Carnegie Hall, New York, last week lauded the ’’week of
music" which ASCAP sponsored in celebration of its twenty-fifth
anniversary.
After an introduction by former Mayor James J. Walker,
LaGuardia said:
"I think it's great that here in New York we are having
a week of wartime horror. I am glad to say that America is now
repaying our musical debt to Europe in full. "
On Wednesday night the New York Mayor wielded a baton
over the bands of the police, fire, and sanitation departments,
XXXXXXXXXX
CODE RULING JUSTIFIED, SAYS EDITOR
"The new rule laid down by the Code Committee of the
National Association of Broadcasters binding individual stations
to refuse hereafter to sell radio time to 'spokesmen of contro¬
versial public issues' widens the scope of a policy already in
force on the major networks", the Washington Star stated editor¬
ially this week.
"Under the regulations now announced the presentation of
'controversial' matter will be confined to free periods granted to
'representative spokesmen or groups * * * in accord with public
interest, program balance and availability of time', or to the
forum type of program^ which may or may not be commercially spon¬
sored, but where both sides of a question are treated equally.
"The reason for this step, the Committee said, was the
realization that, 'in the absence of any self-imposed policy to
the contrary, it is conceivable that some individuals or groups
with financial means to do so could buy all the available time
necessary to monopolize, dominate or control the discussion of
public issues through the radio medium, precluding a fair opportun¬
ity for an opposition without financial resources to present its
case to the radio audience. '
"More tangible than this cure for a potential evil is the
likelihood that the rule will limit the effective range of some
notable voices whose advocacy of causes tends to exceed the bounds
of polite debate.
"Coming at a time when the arms embargo controversy is
at its height, the new ruling, applying to about 92 percent of
commercial radio, undoubtedly will be the target of attack. Until
and^ unless it is demonstrated, however, that it infringes on a
free and frank discussion of public issues that is unmarked by the
introduction of extraneous factors, it stands a.s a proper exercise
of the right of self- regulation. "
JL . n
'll
■«
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
LaFollette Warns Of Radio Curbs In War Time .
Fly Makes First Call At White House .
Payne Ruling Upheld; Rule To Be Revievjed .
Witnesses Announced For LaG-uardia Hearing .
Lohr Writing Book On Television .
Townsend Plan Period Halted By NAB. . .
"World Wide Listener" Published By S-W Station. .
U. S. Powerless As Germany Blocks Finn Broadcast
Eight Local Stations Given Power Boosts
Television From Theater Balked By Equity . 7
Trade Notes . 8
Women's Committee Hit "Hysterical” Broadcasts . 9
ASCAP Sends 16,000 Regrets To Concert Lovers . 11
Crosley In Hispotal After Fall From Horse . 11
No. 1165
030) CO lO
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LaFOLLETTE WARNS OF RADIO CURBS IN WAR TIME
Arguing against repeal of the arms embargo clause of the
Neutrality Act, Senator LaFollette (Progressive), of Wisconsin,
this week wa-med of strict censorship curbs on radio and the press
If the United States goes to war.
"War kills democracy", he said In the Senate. "Men
cannot speak, think, talk, or write freely. They no longer can
participate freely as free citizens of a free state. They are
subjects. They are objects to be handled by the war machine.
There may be no free radio discussion. Newspapers which speak a
kind word for peace. If they speak It vigorously, may find that
they cannot get the necessary priorities In newsprint and Ink; or
perhaps their reporters, editors, and compositors will all suddenly
be needed In active war service. . . .
"Also, since the last war the President has been given
a number of tremendously far-reaching powers. Under the Federal
Communications Act he has the power. In war or national emergency,
to close any radio station or take It over for the use of the
Government. Under the Merchant Marine Act of 1936 the Maritime
Commission may requisition merchant vessels during any national
emergency declared by the President. Under the section of the
1917 Trading With the Enemy Act, which was amended and Incorporated
In the Emergency Banking Act of March 9, 1923, the President has
very wide powers over the Nation* s fiscal and credit transactions
’during time of war or during any other period of national emer¬
gency declared by the President The proposed Hill-
Sheppard bill, which has not yet been enacted because of the wide¬
spread opposition to It from all over the country, would give the
President virtually dictatorial powers over the Nation* s industrial
life in time of war. "
xxxxxxxxxxx
FLY MAKES FIRST CALL AT WHITE HOUSE
Chairman James L. Fly, of the Federal Communications Com¬
mission, made his first official call on President Roosevelt Frida,y
(today) since his appointment. The conference was first scheduled
for yesterday (Thurs*day) and then postponed.
FCC officials said that the purpose of his call "Is a
secret " .
XXXXXXXXXX
2
10/13/39
PAYNE RULINO UPHELD; RULE TO BE REVIEWED
The Federal Communications Commission this week upheld
unanimously the decision of Commissioner George Henry Payne in an
Interpretation of an FCC rule placing rigid limitations on inter¬
ventions, but at the sajne time it disclosed that the rule Itself
will be re-examined.
The Payne decision was made last week in denying the
Orlando Broadcasting Co., of Orlando, Fla., the right to intervene
in a case involving an application for a new station at Orlando.
The petitioner operates WDBO.
The original action of Commissioner Payne, which did
away with a procedure of long standing in the Commission, led to
a number of petitions asking the FCC to over-rule the decision,
after granting the petitioners oral arguments. The Commission,
however, acted without giving the attorneys an opportunity to
argue their petitions.
As a result, it is probable that attorneys for the
petitioners will take the cases to the Court of Appeals.
An examination of the whole case by the full Commission
disclosed that it apparently was a boomerang, thrown out by those
practicing before the body, which had returned with a heavy blow,
threatening, as it does, to cut down considerably the legal
appearances before the Commission.
However, while ruling that Commissioner Payne had cor¬
rectly Interpreted the rule, it has been decided to re-examine
the new rule with a Committee from the Federal Communications Bar
Association. This group, it was said, not only had approved the
rule in draft form when it was submitted to it for consideration
prior to adoption, but actually had proposed the rule against
which certain members of the Association now are complaining.
Seven other petitions to intervene in as many cases,
it was said, also were overruled at the same time and the Com¬
mission’ s decision affected these same cases. The new regula¬
tion, it was explained, is a move to cut down on the number of
stations which seek to oppose applicants for new stations as well
as for increased facilities. The new rule merely requires that
those who seek to intervene in such cases must set out in their
petitions full statements of claims on which they base their
applications.
The underlying purpose of the Commission in adopting
its new regulation on intervention, it wa.s asserted, was to cor¬
rect the practice which had become prevalent under the prior rule
of the Commission. Under this former rule the Commission per¬
mitted any person to intervene in a hearing if his petition dis-
closed a substantial interest in the subject matter.
3
10/13/39
This standard was held to have been so broad and the
Commission’s practice under it so loose that intervention in
Commission hearings came to be almost a matter lying in the dis¬
cretion of persons seeking to become parties to Commission
proceedings.
Other applications affected adversely by the denial of
the Orlando Broadcasting Company’s petition, are as follows:
Station KMAC, San Antonio, Texas; Station KTSA, San
Antonio, Texas; Station WOAI, San Antonio, Texas; Station WROL,
Knoxville, Tenn. ; Station WNOX, Knoxville, Tenn. ; Station WFLA,
Tampa, Fla., and Station WHDH, Boston, Mass.
xxxxxxxx
WITNESSES ANNOUNCED FOR LA GUARDIA HEARING
The Federal Communications Commission this week
announced the list of appearances scheduled for the hearing
Monday on a petition by Mayor LaGuardia, of New York City, to
amend FCC rules so that municipal stations may rebroadcast short¬
wave programs.
Mayor LaGuardia will be represented by William C.
Chandler, corporation counsel, and Herman J. McCarthy, Assistant
District Attorney.
Others who will participate are;
National Committee on Education by Radio, by S. H.
Evans, Secretary; Westinghouse Electric & Mfg. Co., by G. W.
Law or Horace L. Lohnes, attorneys; National Association of
Broadcasters, by A. W. Bennett, attorney; American Federation of
Musicians, by S. T. Ansell, General Counsel; World-Wide Broad¬
casting Corporation, WRUL, by M. M. Jansky, attorney; National
Broadcasting Company, Inc., by A. L. Ashby, P, J. Hennessey, Jr.,
H. Ladner and J. J. Hurley, attorneys; KUSD, Vermillion, South
Dakota, by R. E. Rawlins, Jr.
xxxxxxxxxx
LOHR WRITING BOOK ON TELEVISION
Lenox R. Lohr, President of the National Broadcasting
Company, is writing a book called ’’Television Broadcasting: Pro¬
duction, Economics, Technique", which McGraw-Hill announces for
Spring publication. The book has been planned as a comprehensive
discussion of the problems which television faces today, both in
its relation to the public and in the coordination of the variono
units of a television broadcasting system as a public service,
avid Sarnoff, President of the Radio Corporation of America,
has contributed a foreword. ^ _
XXXXXXXXXX -C4 -
•> r ^
■ a
10/13/39
TOWNSEND PLAN PERIOD HALTED BY NAB
Sponsored broadcasts on paid time in behalf of the
Townsend Plan would constitute a discussion of a public contro¬
versial issue and therefore would be unacceptable under the terms
of the new NAB Code, the Code Compliance Committee of the
National Association of Broadcasters declared this week.
The Code bars the sale of time for discussions of
public controversial issues, but provides that time shall be
allotted for such purposes free of charge, and "with fairness
to all elements in a given controversy".
The Committee's action was in response to an inquiry
from a member station which had been approached by agents seek¬
ing to purchase radio facilities for the "Townsend Plan Broad¬
casts" .
The agent sought to purchase radio time in 15-minute
units, not earlier than 6:30 P.M., stating that the series of
programs would start about October 15.
It was stated that various Senators, Congressmen,
Dr. Francis E. Townsend and others would speak on the period.
The agent declared that an endeavor would be made, through the
sponsored radio programs, "to establish new clubs, solicit mem¬
bers and sell our book".
In making public its finding, the Committee pointed out
that during political campaigns, adherents of the Townsend Plan
may buy time "in behalf of or in opposition to qualified candi¬
dates for public office", as provided by the law, or may buy
time "in behalf of or in opposition to a public proposal subject
to ballot" as further provided by the new NAB Code.
Meanwhile, it was pointed out tha.t representative spokes¬
men of groups will be given free time to present their viewpoints,
in accord with the public interest, program balance and avail¬
ability of time.
The Committee emphasized again that the Code does not
deny the right of free speech to anyone. It simply denies the
opportunity to buy time and to monopolize the limited radio time
and facilities available, for one-sided discussions of a public
question.
Dr. Francis E. Townsend told the Associated Press
yesterday (October 12) his old age pension plan organization
would "build our own station in Mexico if we are kept off the
air in the United States. "
Dr. Townsend has been informed of action by the National
Association of Broadcasters barring him from paid radio programs
xxxxxxxxx _
- 5 -
10/13/39
"WORLD WIDE LISTENER" PUBLISHED BY S-W STATION
The World Wide Broadcasting Foundation, of Boston,
which produces programs for the educational short-wave station
WRUL, formerly WIXAL, has started publishing a monthly magazine,
"The World Wide Listener", for sale at 20 cents a copy.
The periodical carries the station’ s programs for the
month and timely articles by members of the staff.
Walter S. Lemmon, President and founder, writes in a
foreward of the October issue:
"V/ith this issue of our program magazine we are endeavor¬
ing to preserve in printed foim some of the outstanding thoughts
broadcast over WRUL in recent months. Our Board of Tmstees is
grateful for the evidence of increased support of this new idea
and to the many colleges and universities who are cooperating
toward this purpose. "
xxxxxxxx
U. S. POWERLESS AS CtER!4A1'-IY BLOCKS Fm^ BROADCAST
Government officials were openly peeved but admittedly
powerless this week when G-ermany flatly refused to rebroadcast
to the United States an address by Finnish Foreign Minister
Eljar Erkko, #io wished to reach American listeners.
German radio authorities first agreed to transmit the
broadcast by short-wave s to the National Broadcasting Company in
New York, and then suddenly announced a cancellation on the
ground that Germp.n wartime regulations forbade the transmission.
NBC officials in New York said that the German short¬
wave station was the only one in that vicinity powerful enough
to relay the foreign minister’s speech from Helsingfors, Finland,
to New York.
XXXXXXXX
EIGHT LOCAL STATIONS GIVEN POWER BOOSTS
The following stations were granted Increase in power
to 250 watts unlimited time this week by the Federal Communica¬
tions Commission:
KPAB^ Laredo, Texas; KOCA, Kilgore, Tex.; WEDC, Chicago,
Ill.; KWJB^ Globe, Ariz. ; KOOS, Marshfield, Ore.; WKBB, Dubuque,
la. ; WBRK^ Pittsfield, Mass. ; KWNO Winona, Minn.
X X X X X x’x X
- 6 -
10/13/39
TELEVISION FROM THEATER BALKED BY EQUITY
A scheduled television broadcast of part of Max Gordon’s
new musical show, ’’Very Warm for May", which the National Broad¬
casting Company hoped would be a forerunner of regular television
previews of Broadway shows in rehearsal, was abandoned this week
by Mr, Gordon's office because of Actors Equity's demand for the
equivalent of a full week' s salary for each performer participat¬
ing in the single program, according to the New York Times.
While no formal comment was forthcoming from NBC, the
Times said, that the company's department of television had intend¬
ed to present a series of new Broadway shox'^s in rehearsal in what
would have been the first specific instance of sustained coopera¬
tion between the theatre and television. The shows would gain the
benefit of the promotion, it was said, and NBC would gain good
television programs. Relations between the two industries, which
may possibly become competitors, have occupied the attention of
executives in the show business.
The NBC indicated that it would hold its project in
abeyance until the Broadway producers knew where they stood with
the unions interested in television. Although Actors Equity has
claimed the right to rule television and exercised it in this
instance, the matter is at present a major issue before the
Associated Actors and Artistes of America, A, F. of L. parent of
actor unions.
A jurisdictional row over television started in May
when regular programs were initiated in conjunction with the
World's Fair. The Screen Actors Guild and the American Federation
of Radio Artists, besides Equity, believed they should have a say
in the new entertainment field, at least until it became know^n
exactly what form television might take. As a compromise it was
decided to name a committee to administer television, but no such
Dody has been appointed as yet.
Some union officials were disturbed because Equity did
not notify the A. A. A. A. of the difficulties with the office of
Mr. ^rdon, who besides being a Broadway producer is General Pro¬
duction Director of television for NBC, and argued that such a
stand as Equity' s could conceivably injure an industry not yet
on its feet.
Robert Milford, General Manager for Mr. Gordon, esti¬
mated that if Equity's demand had been met, it would have cost
several thousand dollars, as he intended to use twenty- five per¬
formers, including dancers and singers. He said NBG had been
regularly using Equity members for its various television pro¬
grams without paying any specified fee.
XXXXXXXX
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TRADE NOTES
Coluinbia Broadcasting System has leased the 15~year-
old Ritz Theater, located at 219 West 48th Street, New York City,
as a supplementary playhouse to accommoda.te many of its outstand¬
ing radio programs and their constantly increasing audiences. It
is to be known as CBS Theater No. 4. The Federal Theater Project,
’’Pinocchio" was the last success housed in the Ritz.
How American communications facilities will function
if the United States faces a "national emergency" will be dis¬
cussed by Major General J. 0. Mauborgne, Chief Signal Officer
of the U. S, Array, at 7:45 P M , EST, over the NBC-Red Network.
As of August 1, 1939, the Federal Communications Com¬
mission has revised and renumbered all of its rules and regula¬
tions. Rules numbered 177 and 177.1 have now been renumbered
rules 3.94(a) and 4.10. Rules 1010, 1011, and 1012(c) referred
to in Issue No. 5 in the Commission's Notice of May 5, 1939,
have become Rules 4.41, 4.42 and 4.43. The revised and renumbered
rules include some changes in phraseology but the substance of
these rules is unchanged.
Station WISE^ Asheville, N.C., will become affiliated
with the National Broadcasting Company on Thursday, Oct. 19.
NBC^s 177th station, it is licensed to the Asheville Daily News
to operate full-time on 1370 kc. with a power of 100 watts.
Harold H. Thoms is owner.
WISE will be available as a bonus outlet at no addi¬
tional charge to advertisers using Station WFBC, Greenville, S.G.
^te for WFBC, supplementary to the Red and Blue Networks, is
1120 per evening hour.
World Radio Markets series issued this week by the
Department of Commerce dealt with the Windward Islands, the
Leeward Islands, and the Cape Verde Islands.
XXXXXXXXXX
- 8 -
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10/13/39
WOMEN'S COMMITTEE HIT "HYSTERICAL" BROADCASTS
A movement to curb "hysterical and unsubstantiated"
broadcasts of war news was launched at a luncheon conference of
the Women's National Radio Committee at the St. Regis Hotel,
New York City, this week. Prompted by many protests received by
the committees, representing more than twenty national women's
organizations throughout the country, resolutions were formulated
to devise ways and means of safeguarding news broadcasts from
spreading "hysteria" ajnong listeners, especially by the smaller
stations, according to the New York Times.
The Committee, in drawing up the resolutions, pointed
out that the move was not intended as a blanket indictment of the
broadcasting networks in handling war news, but rather as a yard¬
stick that might guide the commentators a,nd set certain criteria
for broadcasts relating to war and international affairs. The
Committee also plans a "model" news broadcast tha.t will be offer¬
ed for consideration to the troadcasting stations.
"Since radio has become one of the most powerful means
of quickly molding public opinion, it is of vital importance that
the news of the world be carefully edited and presented before it
is heard over the air", Itae . Yolanda Mero-Irion, Chairman of the
Committee said. "We appreciate the earnest efforts that have been
made by the broadcasters to bring immediate and first-hand accounts
of crucial events to the vast radio audience, but with the Europe¬
an war, new problems have arisen vliich are a matter of serious
concern not only to the broadcasting industry, but to the public
and a voluntary conference toward their solution is a necessary
venture. "
Raymond Moley, editor of News Week, scored the hastily-
prepared broadcasts on matters of international importance that
are disseminated over the air and advocated more careful editing
and presentation of news broadcasts. He added that the radio
audience did not desire to hear the opinions of reporters, but
rather "straight" treatment of news.
"Even the better radio commentators editorialize to a
point that is really indefensible", said Mr. Moley. "Nothing is
reported in the newspapers that would terrorize a reader; that
bridge has been crossed long ago in journalism; but when I turn
on the radio, I hear things that are hot and moist and should not
be put on the air. A network in selecting a commentator to express
a viewpoint on one side or the other assumes a tremendous res¬
ponsibility, but the only way out is for the networks to go through
with the responsibility that they have assumed. They are not
doing it.
9
10/13/39
'•We got into the last war fast enough without radio and
we will get into it much faster with radio, If the commentators
continue their snap- judgment opinions. We are fooled every day
by the news we hear on the air. The commentators and the broad¬
casters are not doing the job as well as the public expects it to
be done . "
Will Irwin, author of ’’Propaganda in the News", said
that the trouble with the news broadcasts was that they offered
no time for the announcer or commentator to sift fact from fancy
and reports were frequently not only misleading but appalling.
"Things that you hear over the air that sound appall¬
ing do not sound nearly so appalling when read in print the next
day, even though they may be substantially the same in content",
he said. "For in radio we have to contend with the dramatic
element in the human voice that has the power to terrorize, by
appealing to the emotions. And the emotional quality in the
voice is something that cannot easily be corrected. The war of
the world that was fought in the Jersey marshes with men from
Mars proves that radio has the power to stampede. Ra.dio com¬
mentators should not be allowed to continue frightening us with
snap- judgments. "
Miss Josephine Schain, Chairman of the National Com¬
mittee in the Cause and Cure of War, stated that her observations
indicated that the problem was not as bad as it was painted and
that she had not received as many complaints against radio as the
motion pictures.
"Fundamentally the problem is the same all along the
line and the pictures the yellow press give us are as harrowing
as the situation that prevails on the air and in the pictures",
she said. "The public likes sensational things and it is our
problem, as I see it, to educate the public to teke a broad¬
minded and an intelligent viewpoint and to take such things with
a grain of salt. "
Others who stressed the important factor the Committee
might become in bringing about a more rationa.l and less emotional
handling of current news from a.broad were Mrs. Marion Miller,
member-at-large of the Committee, Miss Lena, Madesin Phillips,
President of the International Federation of Business a.nd Pro¬
fessional Women, and Mrs. D. Leigh Colvin, State President of
the Women’ s Christian Temperance Union.
XXXXXXXXXX
10
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10/13/39
ASCAP SENDS 16,000 REGRETS TO CONCERT LOVERS
The American Society of Authors, Composers, and Pub¬
lishers this week mailed out 16,000 post-cards expressing regret
that there were not enough seats in Carnegie Hall, New York City,
to accommodate the persons requesting tickets for the twenty-
fifth anniversary concerts last week, according to E. C. Mills,
Chaiman of the Administrative Committee.
On Friday night, last week, the demand for tickets was
so great, Mr. Mills said, that an overflow performance was given
at the Seventy-Second Regiment Armory with 10,000 in the hall and
5,000 on the outside listening to loudspeakers.
''The Twenty- fifth Anniversary Festival of American
Music was a huge success", he said. "There has never been any¬
thing like it in the history of American music."
Souvenir programs mailed out by ASCAP contain a fore¬
word by Gene Buck, President, portraits and sketches of famed
American composers, and articles by John G. Paine and Mr. Mills.
xxxxxxxx
CROSLEY IN HOSPITAL AFTER FALL FROM HORSE
Powel Crosley, Jr. , President of the Cincinnati Base¬
ball Club and the Crosley Manufacturing Company, was in a hospit¬
al this week with injuries suffered when he fell from a horse
at his estate, near North Vernon, Ind,
Physicians said an X-Ray examination showed the pro¬
jecting parts of three vertebrae broken and explained that Mr.
Crosley must remain in a cast "at least six weeks, but the injury
will not be peraanent " .
The accident occurred Sunday shortly after the Reds
were defeated in the final World Series game.
xxxxxxxxxx
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Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
’ PG’" 10 1939
INDEX TO ISSUE OF OCTOBER 17. 1939
NAB Has Wildcat By Tail As Code Stirs Station Row.
RMA Submits Television Report To FCC After Meeting
Fly Gathering Data For Communications Merger .
4
2
Radio Qpery Included In Housing Census .
Blackouts Boost British Sales Of Battery Radio Sets
Radio Advertising Strictly Policed, Says NAB .
Gillingham Loaned To FCC For Three Months .
New Invention Records Radio Listening Habits .
Colombian Stations Held To Strict Neutrality .
Two Government Attorneys Join FCC Staff . 9
Cuba Closes Five Stations For Wave Jumping . 9
G. E. To Stay With N.Y. Fair In 1940 . 10
Yankee Net Proposes Two "Static-Less” Stations . 10
New Recording System Developed By RCA-NBC . .12
No. 1166
LO LO CD tN CD CO
rin
A
October 17, 1939
NAB HAS WILDCAT BY TAIL AS CODE STIRS STATION ROW
With the Code ruling prohibiting sponsored broadcasts by
the Rev. Charles E. Coughlin, crusading Detroit priest, the center
of the storm, the National Association of Broadcasters this week
was facing a serious row that threatened to lead to some resigna¬
tions from the trade organization.
While a handful of stations agreed to drop the program
as soon as the NAB Code Committee ruled that it is in conflict
with the ban on commercial presentations of controversial broad¬
casts, the majority of the 44 stations in the Coughlin hook-up
indicated they may defy the NAB.
Meanwhile, an unconfirmed report was circulated that the
Legal Department of the Federal Communications Commission had come
to the aid of the NAB by addressing a letter to Station WJR,
Detroit, key station of the Coughlin hook-up, asking why the sta¬
tion was not complying with the NAB ruling.
The FCC has taken no official part in the row, however,
and the reported letter to Station WJR was not immediately avail¬
able to the press.
Somewhat in contrast and yet likewise disturbing to NAB
officials is the case of Elliott Roosevelt, son of the President
and a Texas broadcaster and commentator, who openly defied the
NAB Code as he expressed his views last week on the neutrality
i s sue .
The NAB dodged the Roosevelt challenge, however, by hold¬
ing that he is subject to network rather than NAB jurisdiction.
The matter consequently was turned over to the Mutual Broadcasting
System, which carries the sponsored program featuring young Roose¬
velt, for action.
No showdown on the Coughlin edict is expected before the
6nd of this month as the majority of station contracts for the
program expire Octgber 29th.
John Shepard, III, President of the Yankee and Colonial
Networks, the latter of which carries the Coughlin broadcast on
17 stations, has intimated he will renew the contracts because of
station commitments.
Meanwhile, FCC officials were chuckling over the plight
of the organized broadcasters as they called attention to the
eagerness with which the NAB set out to regulate the radio
industry following the threat of more stringent Government control
when the chain-monopoly inquiry began a year ago.
XXXXXXXX
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RMA SUBMITS TELEVISION REPORT TO FCG AFTER MEETING
Bond Geddes, Executive Vice President of the Radio Manu¬
facturers* Association, this week presented to the Federal Communi¬
cations Commission a report on engineering aspects of television
progress as prepared by the RMA Engineering Committee.
The action followed a meeting of the RMA Directors in
New York City last week at which it was decided to make a renewed
fight against the 5 percent manufacturers' excise tax on radio
sets. A special attorney will be employed to represent the
Association in hearings before the Treasury and Congressional
Committees.
Mr. Geddes explained that the levy costs the radio
industry $4,650,000 a year, and the RMA believes that radios
should be classed as a necessity rather than a luxury.
A. S. Wells of the We 11s- Gardner Company, President of
the Association, announced the appointment of a new committee to
consult with the Federal Communications Commission on matters of
broad policy. The Committee comprises Commander E. F. McDonald, Jr. ,
of the Zenith Radio Corporation; David Sarnoff, Radio Corporation
of America, and James T. Buckley, Philadelphia Storage Battery
Company.
The Directors voted to continue the joint promotion with
the National Association of Broadcasters through the Christmas
season. It was also recommended that manufacturers continue their
promotion of sets equipped with short-wave bands for direct recep¬
tion of foreign programs.
The Board also adopted a resolution proposed by
Commander McDonald, Chairman of the Fair Trade Practice Committee,
recommending that the trade practice rules promulgated by the
Federal Trade Commission on July 22 be adopted subject to a
"minor reservation". The reservation covered the proper classi¬
fication of detector tubes in radio-set advertising. This will be
taken up with the Commission.
Tne Board took further action aimed at evolving a plan to
stabilize the radio tube situation and to clarify the confusion
created by the large number of new types of tubes being put on the
market. A special tube stabilization committee was appointed,
comprising representatives of set and parts manufacturers and the
Radio Engineering Departments.
Resolutions of regret were sent to Powel Crosley, Jr. ,
President of the Crosley Corporation, who was injured in a fall from
a horse last week, and to B. G. Erskine, Chairman of Hygrade
Sylvania Corp. , because of the death of a son.
XXXXXXXXXX
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10/17/39
FLY GATHERING DATA FOR COMMUNICATIONS MERGER
With, the aim of unifying American communications to
improve national defense, James L. Fly, Chairman of the Federal
Communications Commission, this week, was engaged in gathering data
and holding conferences on the long-advocated proposal to merge
Western Union and the Postal Telegraph Company.
There were hints, however, that Chairman Fly* s call at
the White House last week and some of his other conferences have
not dealt solely with communications problems but with a more
important but mysterious matter.
The communications merger plan is scheduled to be
examined at length by a sub-committee of the Senate Interstate
Commerce Committee early next year. The Committee was organized
last session and is headed by Chairman Wheeler.
There are so many angles to the problem that various
Government departments and bureaus have data which will be requir¬
ed by the Senate Committee to complete its inquiry. Aid of the
executive branch will be needed in the investigation, inasmuch as
the Committee has only $5,000 with which to do the job. Chairman
Fly has conferred with officials of some of the Government
agencies involved, including officials from the Labor Department
from whom data might be sought as to the possible effect of a
merger on unemployment.
Another conference is scheduled at the office of Chair¬
man Fly Wednesday, when it is expected that a definite program
will be formulated, which will include the loan of personnel to
the communication group to collect and coordinate the data for the
Senate Committee.
Mr. Fly said no definite plan for a merger had been
formulated by the Commission, but something may develop out of the
conferences and the data which it is hoped will be available. The
Justice Department has been studying the matter for a long time
and just before the Senate authorized its investigation was work¬
ing on a plan of bringing about a merger through the medium of a
consent decree. However, it is understood this idea has been
dropped for the time being in deference to the program of Senator
Wheeler’s Committee.
xxxxxxxx
World Radio Markets reports on China and Yugoslavia
were released this week by the Electrical Division of the Depart¬
ment of Commerce.
XXXXXXXX
4
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10/17/39
RADIO QUERY INCLUDED IN HOUSING CENSUS
"Does this household have a radio set?'* has been includ¬
ed in the tentative schedule proposed for the U. S Housing Census
which will cover an estimated^ 33,000,000 homes. The housing survey
will be conducted simultaneously with the population census, and
enumeration is to start April 1, 1940.
Although Congress has authorized inclusion of housing
in the general census program, along with a $45,000,000 appropria¬
tion for carrying on its various phases, an individual appropria¬
tion of $8,000,000 is sou^t for the Housing Census itself. An
appropriation of approximately $5,000,000 is to be asked as a
supplemental appropriation in the First Deficiency Appropriation
bill brought before Congress when it convenes in regular session
in January. This amount would cover the cost of field and office
work necessary to gather census data, while the remainder would
be spent in compilation of the results and would extend over a
period to December 31, 1942.
xxxxxxxxx
BLACKOUTS BOOST BRITISH SALES OF BATTERY RADIO SETS
Ever since the European crisis drew to its climax,
British radio and electrical dealers and manufacturers have had
an unprecedented demand for battery and the smaller mains-driven
receivers, and for ARP blue and low- watt lamps, torches, bulbs
and batteries, to comply with the black-out regulations, accord¬
ing to a London report to the U. S. Commerce Department.
"All-dry portable radio receiving sets in particular
have established themselves over-night, and there is no doubt that
these sets have now come to stay", Wireless and Electrical Trade
of London, states. "At present they are being turned out by manu¬
facturers as fast as possible, and the demand exceeds the supply.
"It seems that the production of the necessary all-dry
batteries is at present the limiting factor, but this production
will no doubt catch up with requirements.
"Reports indicate that the call for ordinary battery
receivers with accumulators is equally substantial and the future
call for replacement batteries and for accumulator charging will
be large.
"Dealers have found that the smaller and less expensive
types of mains receivers are in equal demand. Most popular have
been the better-known AC/DC compact models TA^hich sell around the
L5 to L6 mark, but reports indicate that purchasers in very many
instances have not hesitated to replace their old receivers with
high-priced models. "
XX XXXXXXXXX
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10/17/39
IIA.DI0 ADVERTISING STRICTLY POLICED, SAYS NAB
"Radio advertising copy is more strictly and thoroughly
policed than that of any other medium. Moreover, radio, unlike
any other medium, exerts voluntary regulation of advertisers'
claims. "
This was the National Association of Broadcasters'
answer last week to recent attacks on radio advertising made before
the Association of Food and Drug Officials, meeting at their
forty-third annual conference in Hartford, Conn. , the week of
October 1. The Association heard "a recomraenda.tion that radio
advertising of food and drug products be subjected to the same
scrutiny by government officials as that of newspapers." Milton P.
Duffy, Association President, told the meeting: "The extravagant
advertising claims made by manufacturers and producers cannot be
overlooked without serious thought. The detrimental effect of
radio in broadcasting misleading information is in direct viola¬
tion of the Food, Drug and Cosmetic Act. " Dr. George R. Cowgill,
Yale University School of Medicine, commented that "statements
over the radio, it seems have thus far escaped regulation".
The NAB's reply, issued through its Bureau of Radio
Advertising, terms these remarks "unfair and not based on the
facts". A review of the facts reveals that networks furnish the
Federal Trade Commission with scripts of all commercial programs,
while exercising their own voluntary control of advertisers’
claims in advance of broadcast. In addition, all stations supply
a full week’s scripts at quarterly intervals. The NAB also point¬
ed out that its own weekly bulletins to stations carry a full
report of Federal Trade Commission action, including complaints,
"cease and desist" orders and stipulations.
The FTC review of radio advertising copy has been in
effect since July, 1934. The annual report of the Commission for
the fiscal year ending June 30, 1938, states: "In general, the
Commission has received the helpful cooperation of nation-wide and
regional networks, and transcription producers, in addition to
that of some 617 active commercial radio stations, 252 newspaper
publishers, and 408 magazine publishers, and has observed an
interested desire on the part of such broadcasters and publishers
to aid in the elimination of false, misleading, and deceptive
advertising.
"During the fiscal year ended June 30, 1938, the Commis-
sion^ received 490,670 copies of commercial radio broadcast con¬
tinuities, amounting to 1,069,944 pages of typewritten script.
These comprised 677,074 pages of individual station script and
592,870 pages of network script."
The NAB has also put into effect its own Code of Program
Standards. The commercial sections of the Code, designed as a
self- regulatory move on the part of all NAB member stations
6
10/17/39
(comprising 92 percent of commercial broadcasters), sets definite
standards for the character of acceptable advertising and also
against extravagant advertising claims. The networks and many
individual stations, the NAB pointed out, have had similar self¬
regulation for years.
XXXXXXXXXX
OILLINGHAM LOANED TO FCC FOR THREE MONTHS
The Federal Communications Commission announced on
Saturday that G-eorge 0. Gillingham, senior information service
representative and chief of the Washington Information Office of
the Tennessee Valley Authority, had been secured on a loan basis
from that agency for a period of three months to occupy the posi¬
tion of Chief of the Office of Information of the Federal Communi¬
cations Commission.
Mr. Crillingham was formerly associated with the Newark
(N.J.) Star Eagle . Newark Sunday Call and covered North Jersey
for three Philadelphia dailies, l.e., North American, Press and
Evening Bulletin. He also did feature writing for the New York
Sunday World and has had varied experience in magazine work, hav¬
ing contributed articles to Saturday Evening Post, Current History,
Bookman. New Yorker, Esquire, etc. At one time Mr. G-illingham
was Managing Editor of the Pathf Inder magazine and at the same
time edited a department in G-olden Book.
Mr. Gillingham was in the military service from 1918
to 1920 and for a time commanded Company K of the 1st Gas Regi¬
ment. He is a member of the National Press Club and Past Commander
of the National Press Club Post of the American Legion.
The Commission also announced that C. Alphonso Smith,
who was borrowed from the Soil Conservation Service last December
and who has been serving as Acting Director of Information since
April 1, 1939, would remain to assist Mr. Gillingham until
November 1, 1939, when his leave period expires.
XXXXXXXXXX
Hearing on the petition of Mayor F. H. LaGuardia of New
York, in behalf of the municipally-owned WNYC to amend FCC rules
to permit use of ultra- shortwave s for domestic network transmission,
in lieu of wire lines, scheduled for Oct. 16, again has been post¬
poned to Oct. 23. The hearing, postponed several times, is to be
before a committee of three Commissioners.
XXXXXXXX
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NEW INVENTION RECORDS RADIO LISTENING HABITS
A device which automatically records listening habits
of radio orniers has been patented by Robert F. Elder and Louis E.
Woodruff of Belmont, N, Y,
It records on a strip of paper the time and the sta¬
tions listened to throughout the day. These records when collect¬
ed and tabulated would give radio broadcasting stations accurate
information as to what the radio audience likes best on the air.
The recording device comprises a separate unit which
may be plugged into the radio. It includes a clock motor, stylus
and paper tape. When the radio is turned on this automatically
starts the device. Movement of the stylus is controlled by the
tuning dial of the radio.
The patent is assigned to the A. C. Nielson Company of
Chicago.
xxxxxxxxx
COLOMBIAN STATIONS HELD TO STRICT NEUTRALITY
Developments in Europe have led the Colombian Government
to decree that all radio broadcasting stations must observe a strict
neutrality in their programs and transmissions, according to the
American Commercial Attache at Bogota. The use of any language
other than Spanish in broadcasts is prohibited and all stations
broadcasting news reports will exercise care to see that such
reports are held within the bounds of strict impartiality with
respect to the governments and peoples in conflict.
Amateur and experimental stations can only communicate
in Spanish and transmissions must be restricted to experiences
and observations of a personal character related to the science
of radio-electricity.
The transmission of messages in private codes by cable,
radio or telegraph is prohibited. The use of recognized commercial
codes will be permitted but the name of the code used must be indi¬
cated on each message.
All clandestine radio stations will be closed by the
authorities and the owners or operators of such stations will be
subject to the penalties prescribed by law.
XXXXXXXXXX
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TWO GOVERNMENT ATTORNEYS JOIN FCC STAFF
Two new attorneys this week joined the Law Department
of the Federal Communications Commission as aides to William J.
Dempsey, General Counsel.
Robert M, Cooper, Special Assistant to the Attorney
General and FCC liaison in the Department of Justice is principal
attorney, while Benedict Peter Cottone, lavjyer on the staff of
Civil Aeronautics Authority is Senior Attorney.
Mr. Cooper, vho is 31, has specialized in communications
and broadcast matters, however, with such cases as the Western
Union-Postal merger assigned to him. It is expected he will con¬
tinue his departmental studies at the FCC and presumably special¬
ize in litigation ear-marked for Supreme Court consideration.
It is understood he will also participate in the handling of liti¬
gation in connection with pending petitions of the FCC to have
the Supreme Court review decisions of the U. S. Court of Appeals
for the District of Columbia involving fundamental jurisdictional
issue.
Mr. Cottone worked under General Counsel Dempsey and
Assistant General Counsel William C. Koplovitz while they were
with the Federal Power Commission. He was on the special tele¬
phone staff of the FCC under Special Counsel Samuel V. Becker dur¬
ing its A. T, & T. investigation several years ago. Since his
graduation from Yale 'Law School in 1934, he has been employed by
Securities & Exchpjige Commission, Department of Justice, Power
Commission and Civil Aeronautics Authority.
xxxxxxxx
CUBA CLOSES FIVE STATIONS FOR WAl/E JUMPING
The American Commercial Attache at Havana reports that
the Radio Bureau has ordered the closing of five stations in
Havana - CMCG, CIvIBH,CMC, GMCR and CLffiG - because, it is claimed,
these stations have persisted in operating at variable frequencies,
and of increasing their power beyond the amounts assigned to them
by Presidential Decree No. 1942. It is stated that several other
station are likely to be closed for infraction of the regulations
governing frequency assignments.
New regulations governing broadcasting station announcers
also have been decreed. Among the principal provisions of the
decree are that he must be a Cuban citizen of more than 16 years
of age and not have a criminal record; they must be familiar with
the provisions of law a.nd the regulations concerning the responsi¬
bilities of radio announcers; have passed an examination covering
Spanish, grammar, diction and vocailizatlon, interpretation of text,
vocabulary, etc. ; be in possession of a certificate of aptitude
granted by the Department of Communications. Exception is made of
persons in the professions, in positions of standing in social,
political, economic, industrial, cultural and scientific circles,
when these individual are engaged in giving talks in their res¬
pective fidis. Also exempted are members of the Government and
officials of the Diplomatic and Consular corns in Cuba.
XXXXXXXX
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10/17/39
G.E. TO STAY WITH N.Y. FAIR IN 1940
With a record-breaking crowd of General Electric employees
visiting the New York World’s Fair for "General Electric Day" last
week, Gerard Swope, President of the company, announced tha.t G.E.
would "go right along" with the Fair in 1940.
Nearly 30,000 G-E employees and their families visited
the Fair, making both the largest industrial group to see the Fair
from outside the metropolitan area and the biggest meeting ever
held of General Electric workers. Coming from as far as Fort
Wayne, Ind. , and Erie, Pa., the delegation covered 5,000,000 miles,
and about 5,000 of them stayed over for a second day at the Fair.
Governor Herbert H. Lehman and former Governor Alfred
E. Smith, who were on hand for Albany Day, and Mayor Jasper
McLevy of Bridgeport, Conn., joined Mr. Swope in welcoming the
G-E employees at the New York State Amphitheatre, where they were
the guests of the company for Billy Rose's Aquacade, for the big¬
gest theatre party ever held anywhere.
In promising Mr Harvey D. Gibson, Chairman of the Board
of the Fair, that G.E. would be back at the Fair next year with
its Steinmetz Hall man-made lightning show and the "House of
Magic", television and other exhibits, Mr. Swope said:
"We are very well pleased with our exhibit here. More
people ha.ve visited our House of Magic in half the time than visit¬
ed the same exhibit at the Chicago Fair. "
Nearly 7,000,000 people, it is estimated, have visited the
G-E exhibit, while about half that number, by actual count, have
seen the demonstrations in the "House of Magic" and Steinmetz Hall.
Mr. Swope said only minor changes were contemplated in the exhibit
for 1940.
X X X X X X X
YANKEE NET PROPOSES TWO "STATIC-LESS" STATIONS
Two "static-less" or "frequency modulation" broadcasting
stations to operate on the "regular" or commercial basis, one to
cover the New York a.rea and the other to serve New England, have
been made the subject of applications to the Federal Communications
Commission.
If the FCC approves, the transmitters will be built and
operated by the Yankee Network of New England, headed by John
Shepard 3d, on the interference-free principles developed and per¬
fected by Major Edwin H. Armstrong, inventor and Professor of
Electrical Engineering at Columbia University.
10
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10/17/39
For the New York area the "staticless” transmitter will
be a 50, 000- watt outfit situated atop the New Jersey Palisades at
Alpine; for New England it will be on the top of Mount Washington
in New Hampshire, at a power of 5,000 watts. Major Armstrong now
operates a 40,000-watt experimental sending unit at Alpine.
Because it has been demonstrated that ’^static-less” or
Interference-free broadcasts "long since have passed out of the
mere experimental stage", the Yankee Network announcement said,
stations supplying such programs should be authorized for operation
"as regular broadcast stations" and no longer classed as experimental
Therefore the applicant asked the FCC to "amend or change"
its existing rules and regulations” to permit its proposed broad¬
casters to be operated commercially and also to permit other such
stations to be operated in the same way. It was requested that the
applications be designated for public hearing by the FCC with this
aim in view.
Experience over a number of years with experimental sta¬
tions carrying regular staticless programs many hours daily, it
was said, have demonstrated such broadcasting to be "peculiarly
fitted to service the densely populated New York City area" for all
who own or have access to the required new type of receivers.
Sending stations utilized for experimental operation have
reached the "stage of near perfection", and tests have shown "con¬
clusively that a much more superior service can be rendered" in
such areas through "static-less" stations that can be achieved
otherwise, the applications said. Also greater fidelity of program
and reliability will result, it was said, and "no further experi¬
ments whatever are necessary to prove this."
Specifically, the applications asked for a regular broad¬
cast construction permit or license for the transmitters, distin¬
guished from an experimental type of license.
At the elevation of 6,300 feet above sea level, the Mount
Washington station, with only 5,000 watts of power, is expected to
provide "interference-free broadcasts for 1,000,000 people in
Northern New England", Within the area are about 750,000 persons
said to live "beyond the primary service area of any broadcasting
station.
Elevation, tests have demonstrated, endows the station
with great advantages over those more lowly situated. For instance,
5,000 watts atop Mount Washington would be as effective, it was
said, as 50,000 watts at an elevation of 2,000 feet, or as powerful
in effect as a 200,000-watt transmitter only 1,000 feet above the
surrounding terrain.
^ However, the summit of Mount Washington, because of its
severe climatic conditions, is expected to make the proposed
5,000-watt installation a more expensive and formidable job than a
Sbation of many times the power built at lower levels.
11
10/17/39
A 500-watt short-wave transmitter of the regular type,
operated there for the last two years, has demonstrated that
regular or "amplitude-modulation” broadcasting never can cover a
sufficiently large area of Northern New England to warrant its
consideration, even with the use of a power greater than is now
deemed technically or economically possible, the application con¬
tinued. The Armstrong system, on the other hand, is expected to
cover an area within a lOO-mile radius.
If authorized, the projects will be under the supervi¬
sion of Major Armstrong, Professor G-. W Pickard of Boston, and
Paul A. deMars, the Yankee Network's Technical Director.
xxxxxxxx
NEW RECORDING SYSTEM DEVELOPED BY RCA-NBC
A new method of recording and reproducing transcriptions,
known as the RCA-NBC Orthacoustic Recording System, which combines
the finest elements of the recording process was announced last
week by the Electrical Transcription Service of the National Broad¬
casting Company. The new method was developed through the combined
efforts of the engineering laboratories of the RCA Manufacturing
Company and the NBC.
Called one of the most important developments since the
introduction of electrical recording in 1925, the new RCA-NBC
system incorporates new and higher standards of sound recording
from the microphone to the turntable. While the principle differ¬
ence in recordings of old and new types lies in the method of
recording the sound on the record, the new system also provides for
simple adjustments in the reproduction equipment to take advantage
of the finer quality inherent in the new Orthacoustic records.
The RCA-NBC Orthacoustic Recording System owes much to
RCA-NBC* s pioneering in television - in fact, stems from televi¬
sion' s developments in the transmission of sound in the ultra-high
frequencies. While based on principles already known, the new
system may be said to be a crystallization of all improvements made
in recording in the past few years together with new developments
in materials and recording technique.
Essentially the improvements of the new system lie in a
pre-emphasis of the lower and higher frequencies during recording.
The inverse characteristics introduced into the playback equipment
through a compensation filter then cause background noise in the
lower frequencies and scratching in the upper frequencies to drop
out, and minimize distortion in the treble and bass.
The practical results of the successful completion of
this engineering work include: (1) A new high fidelity quality in
reproduction; (2) Elimination of distortion, particularly in high
frequencies; (3) Elimination of surface or background noise;
14) Natural, true reproduction of speech; (5) Greater tone fidel¬
ity in reproduction of music.
XXXXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF OCTOBER 90, 1939.
House Members Rap NAB Ruling On Coughlin . . . 9
Elliott Roosevelt Quits NAB; Miller Explains . 4
U. S. Officials See Television Test Four Miles Up . 6
Cannett Opens Fight On President’s Radio Powers . 8
David Lawrence Raps NAB Code Prohibition . 9
McCrady Opens Office In RCA Washington Division . 10
Miller To Explain Code Over CBS . 10
"Limited Advertising" For Television Studied. . 11
Trade Notes. . . .19
No. 1167
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HOUSE MEMBERS RAP NAB RULING ON COUGHLIN
As member stations began withdrawing from the National
Association of Broadcasters this week in protest against the Code
ruling against controversial issues on sponsored programs (see
Roosevelt story elsewhere in this issue), members of Congress
hinted that they may take a hand in the row as they expressed
disapproval of the NAB action.
Representative Cochran (D. ), of Missouri, condemned
the ruling as it affects the Rev. Charles E. Coughlin, Detroit
radio priest, in a speech on the House floor, and other members
arose to endorse his views.
FCC officials watched the developments with interest,
and there were informal predictions that the controversy will
lead to the introduction of legislation to set aside arbitrarily
periods on all stations for discussion of public issues.
Co chrar^ views , which were not a defense of Father
Coughlin except as to his rights to speak over the air on sponsor¬
ed broadcasts, were endorsed by Representatives Crawford ( R. ) ,
of Michigan, and Kunkel ( R. ) , of Pennsylvania.
Characterizing the NAB ruling "a direct assault upon
one of the most sacred provisions of our Constitution - freedom
of speech”. Representative Cochran said:
"The question as to whether we are in agreement with
those who are able to purchase time on the radio to discuss contro¬
versial public issues is beside the point. I insist we are
treading upon most dangerous ground when free and open discussion
of any question, public or otherwise, is to be denied.
"At the moment this ruling undoubtedly will affect many
outstanding citizens of this country sincere in their belief that
the present neutrality law should not be touched, or, if amended,
the embargo provisions should be retained. Among those who enter¬
tain this view is Father Coughlin, who, with all the vigor at his
command, probably is the leader in the fight against repeal of the
embargo.
"Regardless of whether or not this order was directed
at Father Coughlin, it will affect his broadcasts in some local¬
ities, and his followers will always believe that back of the
decision was a desire to take Father Coughlin off the air.
"Many times I have not agreed with the views of Father
v^oughlin. I do not agree with him on this issue, although many
of my constituents do. I have not hesitated to write Father
'41
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10/20/39
Coughlin when I thought he was in error. True, there are many
others, if the ruling is strictly adhered to, who will be affect-
ed, including many of our leading commentators who are heard daily
over the radio. To deny Fbther Coughlin the use of the radio,
especially at this time, means beyond doubt that the members of
the National Association of Broadcasters will be required to dis¬
continue the broadcasts of every citizen vho desires to discuss
controversial public issues, if the National Association of Broad¬
casters so decide.
•'Now what is a controversial public issue? I would say
every public issue is controversial, because those of us v/ho have
been in public life any length of time know there is a minority
to practically every public issue, which makes it a controversial
issue .
’’Honestly enforced, would not this order deny the use of
the radio to even the candidates for President in 1940? The issues
involved in that campaign are certainly to be controversial, and
they will beyond question be public issues. Likewise, the candi¬
dates for all public offices in 1940 - National, State and local -
must be denied the use of the radio because the issues they
advance will be controversial public issues.
"I commend those in control of broadcasting stations, be
they members of the National Association or not, vho have defied
the ruling and notified the Association they will not abide by
it. Among those who take exception to the ruling is Rev. Father
W. A. Burk, S.J., faculty director of the radio station operated
by the St. Louis University of my home city, St. Louis .
"The decision of the National Association of Broad¬
casters brings back to my mind the action of the Federal Communi¬
cations Commission in issuing regulations last May relating to
the cha.racter of international broadcasts. Shortly thereafter I
introduced a bill which, if enacted into law, would provide no
rule or regulation hereafter issued by the Commission shall have
the effect of limiting broadcasts to service which will reflect
the culture of the United States or promote international good¬
will, understanding, or cooperation.
"Why did I offer such a bill? It was because I felt
then and I feel now it was in effect an attempt to curb freedom
of expression.
"I am pleased to say that regulation or rule of the Com¬
mission was rescinded and a committee appointed to consider the
question.
"When I introduced that bill Rev. Edward Lodge Curran,
President of the Interna.tional Catholic Truth Society, wrote ma
a letter defending the Commission’ s action and desired that I
debate the subject with him.
"At that time President Neville P/Iill^r, of the National
Associa.tion of Broadcasters, the same organization that now seeks
to Impose its will on discontinuing paid contracts for discussing
controversial public issues, condemned the Communications Commlssior
for issuing the regulation. He was quoted in part as saying it
3
10/20/39
was an unsound policy, incompatible with the operation of broad¬
cast stations by private enterprise in a democracy.
"I am reminded of the words of the late Mr. Justice
Holmes in his dissenting opinion, Mr. Justice Brandeis concurring
in the case of United States against Schwimmer, a lady who was
denied naturalization, when he said in part:
"’Some of her answers might excite popular prejudice,
but if there is any principle of the Constitution that more
imperatively calls for attachment than any other it is the
principle of free thought - not free thought for those who
agree with us, but freedom for the thought we hate.’
"Mr. Speaker, I suggest to Mr. Miller and the Associa¬
tion vdiich he represents that they take the same view now that
they took when the Communications Division issued its regulation
and describe their own order ’as an unsound policy, incompatible
with the operation of broadcast stations by private enterprise in
a democracy. ’ "
XXXXXXXXX
ELLIOTT ROOSEVELT QUITS NAB; MILLER EXPLAINS
Elliott Roosevelt, son of the President, this week
announced in Boston that ten Texas radio stations which he oper¬
ates were resigning from the National Association of Broadcasters
because of the imposition of a rule barring expressions of person
al opinion on controversial issues on commercially sponsored pro¬
grams.
At the same time, Neville Miller, President of NAB,
issued a statement suggesting that Mr. Roosevelt nay not under¬
stand the NAB Code thoroughly. He also released correspondence
between NAB and the Mutual Broadcasting System concerning the
Roosevelt neutrality comment which brought about the NAB censure.
Young Roosevelt termed the ruling a "curtailment of
free speech and censorship in its worst form", making this state¬
ment at a press conference prior to a speech before the Boston
Life Underwriters' Association.
The President's son also voiced disapproval of the
Federal Communication Com.mission ' s stewardship of broadcasting
stations, asserting the six-month licenses under which they oper¬
ated made them "not a. busiiiess, but a gamble".
Although expressing disapprova.1 of Father Coughlin, the
radio priest, because of a contention that he "fosters racial
hatred", Mr. Roosevelt said he believed the priest "ha.d a perfect
right to speak".
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On October 7, Mr. Roosevelt publicly stated that he
would violate the NAB Code and would express personal opinions on
public controversial matters on his commercially sponsored news
commentator’s program.
After making inquiry, Mr. Miller on October 13, sent
the following letter to Theodore Streibert, Vice President of
the Mutual Broadcasting System.
"Dear Mr, Streibert: In his sponsored broadcast over
the Mutual Broadcasting System on October 7th, Elliott Roosevelt
publicly announced that on his broadcast of that evening he
would express a personal and editorial opinion about a public
controversial issue and that he realized such expression of per¬
sonal opinion by a news commentator on commercial time was in
violation of the NAB Code. I am of the opinion that Elliott
Roosevelt in his broadcast did violate the Code, and I am there¬
fore bringing the matter to your immediate attention. I shall
appreciate a reply at your earliest convenience. With kindest
regards, I am sincerely yours, Neville Miller. "
Thursda.y of this week Mr, Miller received the follow¬
ing reply from Mr. Streibert:
"Dear Mr. Miller: With reference to your letter of
October 13th, we held a discussion with Elliott Roosevelt yester¬
day and reached an agreement which wa.s v>rholly satisfactory. He
will eliminate from all his commercially sponsored broadcasts
any expression of personal editorial opinion about public contro¬
versial issues. Sincerely yours, T, W. Streibert, "
Mr. Miller expressed regret that Mr. Roosevelt has
seen fit to disregard the Code voluntarily set up by his fellow
broadcasters and resign from the Association.
"His statement charging censorship indicates that per¬
haps he is not fully conversant with the Code and the vital
problems of public policy underlying it", he said. "There can
be no charge of censorship or of the curtailment of fi*ee speech
when all spokesmen are given an equal footing at the radio
rostrum, free of charge.
"This provision of the Code not only insures the widest
possible use of radio for public discussions, but it insures as
well an impartial and fair opportunity to all spokesmen and
groups to use its limited facilities and to be subject to debate
and challenge should such develop. This is the democratic way
of doing things.
"It is significant to observe that those who are
objectirg to the Code and who want to continue to buy time for
discussions of public controversies, have refused to accept
free time offered on programs where another vie^s/point may be
fully presented.
5
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"Rather than barring them from the air, as has been
charged, the Code recognizes their ri^t to speak, but provides
that those holding other views shall not be deprived of the
right to present those views under similar conditions.
"The point raised in Mr. Roosevelt’ s October 7 broad¬
cast, however, Involves the propriety of injecting personal
opinions on a news commentator’ s broadcast.
"The press of this country has always recognized the
necessity of preserving the integrity of its news columns. Per¬
sonal opinions are reserved for the editorial page. The integrity
of radio news is of parallel importance.
"If Mr. Roosevelt wishes to express personal opinions
about public controversial matters on the air, there is nothing
to prevent him from doing so on the time freely given for the
purpose. But, under this Code, no personal opinions can be
presented under the guise of news on any news broadcasts, whether
sponsored or unsponsored,
"The NAB Code is based upon principles, not personal¬
ities. The provisions of the Code shall continue to be admin¬
istered fairly and impersonally. "
XXXXXXXXXX
U.S. OFFICIALS SEE TELEVISION TEST FOUR MILES UP
Government officials and newspaper men witnessed a
demonstration of television transmission from New York City to
an air liner 21, 600 feet above the National Capital this week.
The television images, which were on the whole clear, were car¬
ried 200 miles and received on a standard RCA television receiver.
The demonstration, which marked the twentieth anniver¬
sary of Radio Corporation of America, was staged first for the
benefit of New York newspaper men and then repeated for Washing¬
ton reporters, army officers, and officials of the Federal Com¬
munications Commission, and the Civil Aeronautics Authority.
Arranged jointly by the Radio Corporation of America
and United Air Lines, the fli^t over Washington represented
the first attempt to extend the range of the intractable radio
waves upon which television must depend under allocations of the
Federal Communications Commission.
Because television waves obey exactly the same rules
as light waves, traveling only in straight lines subject to being
blocked off by mountains, the curvature of the earth's surface,
or even intervening buildings, they have up to now been limited
to a range of less than 50 miles, even when broadcast from an
antenna high above the highest New York skyscrapers.
6
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To prove that the range of the television ^^’ave-length
Is far greater than the 50-mile limits within which receiving
of the New York broadcasts so far has been confined, RCA engi¬
neers arranged the novel scientific demonstration over Washington.
Flying over the Nation* s Capital at an altitude of
21,600 feet, engineers of RCA and the National Broadcasting Co.
tuned in Station W2XBS in New York. At the appointed time the
image of Herluf Provensen, NBC announcer, appeared on the screen.
Those of David Sarnoff, President of the Radio Corporation of
America, and W. A. Patterson, President of United Air Lines,
appeared shortly thereafter.
By means of two-\my radio communication, members of the
party making the flight were able to talk with Mr. Sarnoff and
Mr. Patterson in the studio at Radio City. In response to a
request from a photographer in the plane, Mr. Sarnoff held a
post for a picture off the Iconoscope screen of the receiver.
The images, as seen in the plane, were comparable to
those received in the primary service area of the NBC station,
which reaches out fifty miles in all directions from midtown
Manhattan. Frequently, however, they suffered from interference
of other electrical equipment in the plane, including the radio
transmitter and Ignition apparatus for the ship’ s two motors.
Ralph Holmes, RCA engineer, and W.A.R. Brown, NBC engi¬
neer, explained that the Intensity of the signal at 200 miles dis¬
tance from the transmitter was low, and that interference, how¬
ever slight, had serious results in impairing image quality. On
the return trip, approaching New York City, where the signal
became strong, motion picture transmissions and the landing of
the plane itself at North Beach Airport were in sharp focus.
The experiment, employing the transmission equipment of
the National Broadcasting Company, bore out the theory that the
ultra-short wa.ves used in television travel in comparatively
straight lines. In order to receive the telecast over Washington,
D. C. , the United plane was forced to rise above the 16,000-foot
altitude level.
Television engineers had previously established that
the ultra-short wave's utility was over an area roughly limited
by the visual horizon.
The receiver wa.s a standard model now' being sold in New
York. The only change made in it was a slight adjustment in the
automatic volume control to compensate against the whirling pro¬
pellers. These, according to engineers, acted as reflectors,
causing extremely rapid variations in the intensity of the receive
ed signal. The antenna used was a simple dipole type, consisting
of two wires strung under the fusela.ge of the ship. The connec¬
tion to the receiver wa.s made through the fuselage.
XXXXXXXX
- 7 -
1
10/20/39
/y
GANNETT OPENS FIGHT ON PRESIDENT'S RADIO POWERS
Frank Gannett, New York state publisher, as Chairman
of the National Committee to Uphold Constitutional Government
this week launched a crusade against the presidential powers
over radio in time of war or national emergency as set forth in
Section 606(c) of the Communications Act.
In letters addressed to broadcasting stations, news¬
papers, and members of Congress, Mr. Gannett urged that something
be done to counteract what he termed dictatorial powers of the
Chief Executive.
Addressing radio station owners, he said:
"The time has come when radio must deal with an issue
vital to its existence. It must fight for its right ■ of free
speech, for wherever that right has been surrendered, all liberty
sooner or later has been lost. As newspaper publisher as well as
owner of several radio stations, I ask you to look today's facts
in the face and put the enclosed information to the best use you
can devise.
"Whether the President does or does not exercise his
present authority to censor your broadcasts — yes, even to close
or ta.ke over your station, which he has the power to do — the
menace of steadily increasing government control threatens all of
us. The loss of freedom will stifle progress in radio, in every¬
thing.
"Newspapers went through this same experience. Govern¬
ments at first insisted on licensing use of the printing press.
In England, John Wilkes, in America, Peter Zenger went to prison
before freedom of the press was established with constitutional
guarantees. Radio likewise will have to fight for its freedom,
but freedom is worth a,ny price.
"First of all, we must break down with the public the
idea that radio is a creation of government and naturally subject
to government control. Thousands of investors, backing the dreams
of countless inventors, have made radio possible. Compared with
the contributions of private enterprise, government's part in
establishing radio has been insignificant. Government's function
is to allocate wave bands, police their use, not dictate who
shall use them — much as a traffic officer polices the highway,
prevents collisions, not dictating who shall or shall not own a
car.
"Broadcasting stations and the radio industry, as well
as all radio listeners, have a tremendous stake in the issues
raised by the National Committee to uphold Constitutional Govern¬
ment. Included in this material is a summary of the extraordin¬
ary powers in the hands of the President; also a copy of my
letters to editors.
- 8 -
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"A thorough discussion of these facts, followed by
legislative action to assure guarantees of freedom of speech over
the radio, should be of greater immediate interest to radio
listeners than to newspaper readers. You are, therefore, free
to make such use of this material as you see fit, on and after
the release date.
"It will interest me to know what use you make of this
material, either by direct quotation or as basis for radio com¬
ment. Your viewpoints on these questions and suggestions for
furthering this Committee's campaign for freedom of radio will be
most helpful. "
XXXXXXXXXX
DAVID LAWRENCE RAPS NAB CODE PROHIBITION
Using a full page editorial in The United States News
this week, David Lawrence, editor and Washington columnist,
assailed the NAB Code rule against controversial sponsored broad¬
casts on the ground that it was an infringement of the right of
free speech.
"Aside from the doubtful legality of the procedure",
he said, "it is apparent that the owners of radio broadcasting
stations who comprise the NAB have gone from the frying pan into
the fire by their refusal to permit the sale of time on the air
for the discussion of 'controversial' issues."
Comparing the radio to the press, Mr. Lawrence continued:
"The radio business is a form of publishing. It can
be operated like any newspaper company. It is fallacious to say
that any interest or organization would monopolize the air if
permitted to buy time. The NAB cannot expect the public to
believe that the individual stations are incapable of making a
definite division between free time and commercial time, as do
the newspapers, and allocating the paid space for different types
of programs on a first come, first served basis.
"The radio station, like the ne?’-spaper in each single
issue, can limit the amount it will accept from advertisers for
a given evening and yet be above criticism. American newspapers
frequently refuse to accept an excessive quantity of 'political'
paid advertising and announce in advance how much they will
accept. But in the main they are careful not to bar anybody ^o
conforms to the laws of libel and they do not discriminate
between users. "
Asserting that even Congress cannot abridge the Bill of
Rights, the editorial added:
- 9 -
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"What Congress cannot do, no trade association can do.
No group of individuals cpji lawfully set itself up to deprive
any citizen of his civil liberties. Trade associations may
render 'advice’ and may ’recommend’ general principles and
codes of ethics but this is a far cry from establishing rules
interfering with the right of lease or purchase by a law-abiding
citizen of the facilities offered to the public by the members
of such a trade assoc ia-tion engaged in profit-making businesses.
"If there be the power in the NAB to exclude from its
facilities certain purchasers, it could conceivably on any pre¬
text of convenience or necessity exclude others and we would
thus have a new law-making body engaged in restraints of trade
and a monopoly in the sense in which Sherman anti-trust law
decisions ha.ve applied the term .
"The Na.tional Association of Broadcasters fears govern¬
ment regulation of programs, government censorship and socializa¬
tion of radio properties. Its fears may be well grounded. But
men of courage in American history have never accepted temporary
security as the price of surrender of a principle whose abandon¬
ment could eventually come to mean the impairment of any of the
precious civil liberties in our democracy." — "•'
xxxxxxxx
MC GRA.DY OPENS OFFICE IN RCA WASHINGTON DIVISION
Edward R. McGrady, who was the Assistant Secretary of
Labor under the New Deal, is back on his old stamping grounds in
Washington. The trouble shooter of the department, who won a
reputation as a conciliator of industrial disputes, resigned
as Secretary Perkins’ chief aide in 1937 to take charge of labor
relations for the Radio Corporation of America. He has now been
designed as "Washington co-ordinator" of that organization as part
of his vice-presidential duties. He is station in RCA’ s Capital
headquarters adjacent to Stations WRC and WJ^AL.
XXXXXXXX
MILLER TO EXPLAIN CODE OVER CBS
Neville Miller, President of the National Association
of Broadcasters, will discuss the new NAB Code which recently
went into effect in an address over the Columbia Broadcasting
System, Sunday, October 22, lJ35 to 2:00 P . M.
His remarks will largely center around the provision
of the Code which bars the sale of time for the discussion of
controversial public issues, and which retuires that radio sta¬
tions furnish adequate facilities for such discussions, free of
charge ,
XXXXXXXX
- 10 -
10/20/39
"LIMITED ADVERTISING " FOR TELEVISION STUDIED
Concerned over the possibility that television may die
a-borning in this country, the Federal Communications Commission
is considering letting down the bars to some degree against com¬
mercial sponsorship of visual broadcast programs and means of
encouraging construction of television transmission stations.
Radio manufacturing companies which sponsored the debut
of television as a medium of public entertainment early last
Spring have let it be known that unless the FCC came to the rescue
that they will abandon the experiment as too costly.
Sales of television receivers have been disappointing,
the FCC has been informed, even in New York City, where the
National Broadcasting Company presents a daily program! of visual
broadcasting from a station atop the Empire State Building.
The scarcity of television stations and the high cost
of visual receivers are believed by FCC officials to be largely
responsible for the lack of public response. By liberalizing
the station licensing policy and sanctioning a limited amount
of advertising, some FCC officials believe that the infant
industry may be given new life.
To da,te television broadcasting has been restricted
for the most part to New York City, although other cities are
getting irregular tastes of it. However, a dozen applications
for new stations in scattered parts of the country ere pending
before the FCC.
Most of the technical obstacles to television advance¬
ment he-ve now been removed, in the opinion of leading radio
engineers, who this week submitted a comprehensive report on the
subject to the FCC through the Ra.dio I\fe.nufacturers ' Association.
A special committee of the FCC, headed by Commissioner
T.A.M. Craven, is studying the problem of giving the new industry
a boost while at the same time protecting the public against
uneconomical investments in receivers that may become outmoded
quickly.
Despite the fact that there are probably fewer than
1,000 television receivers in New York and only a handful else¬
where in the country, a few big advertisers are said to be will¬
ing to sponsor visual programs in the hope that the audience will
expand rapidly. The chief reason that the pioneers in the tele¬
vision field are unwilling to continue to finance the experiment
without assurance of some return, FCC officials understood, is
that the staging of a visual program is far more elaborate and
consequently more costly than a radio broadcast. It is somewhat
like staging a theatrical performance for one night only.
xxxxxxxx
- 11 -
10/20/39
TRADE NOTES
Dr. Alonzo G-. Grace, Commissioner of Education for
Connecticut, has accepted membership on the board of consultants
of the "American School of the Air", the Columbia Broadcasting
System announced this week.
The City of New York took title this week to the radio
broadcasting to^-rers of Station MCA on the causeway between
Flushing and College Point, Queens, and will alter them immedi¬
ately, to remove the last high aerial obstacle to the runways
of the New York municipal Airport at North Beach.
The Poughkeepsie Broadcasting Corp. , Poughkeepsie, N.Y.,
this week was granted a construction permit by the Federal Com¬
munications Commission for a new station to operate on 1420 kc.
with 250 watts power, unlimited time.
Louis Ruppel, Director of CBS Publicity, and Paul W.
White, Director of the Public Affairs Department, announced
additions to their staffs last week. John Denson, Pat Dolan,
and Ted Weber are the new members of the publicity staff, while
Robert S. Wood has joined the news division of the Public Affairs
Department in an editorial capacity.
The Ne.tional Labor Relations Board has disclosed that
Westinghouse Electric & Manufacturing Co. has agreed to recognize
a G.I.O. union as representative of the 21,500 employees in nine
Westinghouse plants. The agreement, praised by Board Chairman
J. W. Madden as a time and money saver, was entered into by the
company, the Union and the Board on September 9. The settlement
was reached on the first day of a Board hearing on C.I.O. charges
that Westinghouse had engaged in unfair labor practices. Chair¬
man Madden called it "an instance of clean-cut litigation. "
The complaint was filed by CIO’s United Electrical Radio
and Machine Workers' Union.
The National Broadcasting Company, through Max Gordon,
general production director for television, and Thomas Hutchin¬
son, television program manager, have appealed to the Actors
Equity Association Council for sympathy a.nd understanding in the
development of television. Equity recently balked a proposed
series of television programs by demanding the equivalent of a
full week’s salary for each performer participating in a single
television program. The Equity Council agreed to consider next
Tuesday Mr Gordon’s proposals regarding v^ages and working condi¬
tions for television performers.
XXXXXXXXXXX
- 12 -
V
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
P
M - M I
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I' ' s L a ti . jj I
OCT 2 5 193b ^ !
M P
7i?i%iPiU|J^|i|2|»i4i?i£j
(2. <2^ «
INDEX TO ISSUE OF OCTOBER 24, 1939
FCC Holding Hot Political Potato In Racing Probe . 2
Court Upholds FCC In KWTN Case . 3
Boston Lawyer Becomes Aide To Fly . . . 4
Newspaper Station Supports NAB Code . 4
Samoff Sees Television As New Education Aid . 5
Increased Radio Sales Seen In Tax Collections . 6
NAB Head Hits Roosevelt Resignation . 7
Chicago Labor Station G-oes Off The Air . 7
Educators Join N.Y.C. In Plea To Alter FCC Rule . 8
Airing Of Feud Scheduled In Boston Next Month . 9
New Device To Aid Study Of Short-Waves . 10
Londoners Regret Tabu On Television . 10
Trade Notes . 11
British Lure Nazi Listeners By Prisoner List . 12
Editor Says Elliott's Wrong; NAB Right . 12
No. 1168
. > / •
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October 24, 1939
FCC HOLDING HOT POLITICAL POTATO IN RACING PROBE
The Federal Coramunice tions Commission this week is
scheduled to decide whether or not to lend aid to the efforts of
Pennsylvania authorities to obtain ds.ta on the transmission of
race track information by telephone wires in the Moe Annenberg
case.
Much of the recent mysterious activities of Chairman
James L. Fly, including a visit to the White House and trips to
New York with William J. Dempsey, General Counsel, are understood
to have had to do with the Pennsylvania matter.
Former Chairman Frank R. McNinch set a precedent a year
ago when he lent FCC personnel to the Justice Department in a
previous inquiry just prior to the November elections.
At least some members of the Federal Communications Com¬
mission are afraid that the FCC will get into deep political
waters if it takes a hand in the present Pennsylvania inquiry,
Pennsylvania’ s formal request that the FCC aid in get¬
ting the necessary information on the use of wire facilities,
particularly telephones, in the transmission of racing informa¬
tion for gambling purposes, is now before the Commission, and it
is expected to get its second consideration at meeting today.
The Pennsylvania commission wants the FCC to search the
records of the long lines department of the American Telephone &
Telegraph Company and gather there any Information available as to
what lines and what equipment is used in transmitting this data
into Pennsylvania, as well as its source.
The Law Department of the Commission has been studying
the matter and has suggested to members of the Commission that
while the information could be collected without any great expendi¬
ture of Federal funds, it questioned whether the Federal Govern¬
ment should be a party in aiding a State to enforce its criminal
laws. The Law Department made no recommendation.
When the matter was laid before the Commission, several
members sensed that the Federal body might be drawn strongly into
the political scramble in Pennsylvania. This was impressed by
the knowledge that the present Pennsylvania administration is do¬
ing everything possible to wipe out the Annenberg racing informa¬
tion service.
2
rj
10/24/39
While the political angle does not appear on the
records of the Federal body, nevertheless the question has been
seriously raised in discussions by the Commission as to whether
there is any crime involved in the Interstate transmission of
this type of information and whether a Federal agency can right¬
fully collect this information, not primarily for the regulation
of the Federal Communications Act, but for the aiding of a State
in enforcement of its criminal laws.
Aside from the possibility of becoming involved in the
political difficulties in Pennsylvania, it was pointed out that
compliance with the request from officials of the Keystone State
might be the precedent which would serve as a wedge for requests
from other States which want similar investigations.
The Communications Commission is the only agency which
could get this data from the American Telephone & Telegraph Co. ,
it was pointed out, as the State would have no authority to go
outside the State and examine the records of the company.
When the matter was brought before the Commission the
first time, doubt was raised as to the authority of the Commis¬
sion to collect this data for one State agency. The request was
sent back to the Law Department for further study.
xxxxxxxx
COURT UPHOLDS FCC IN KWTN CASE
United States Court of Appea.ls for the District of
Columbia, last week handed down a decision in the case of KWTN
of Watertown, South Dakota, against the Federal Communications
Commission, in which the Court upheld the Commission.
In this case the FCC charged that the station had
operated in violation of the Commission’s rules governing the
technical operation of broadcast stations and the Commission
refused to renew the station's license.
The Court of Appeals in its decision in upholding the
Commission's action stated that "the report, findings, and grounds
of decision are amply substantiated by the evidence contained in
a voluminous record. Appellant does not deny their correctness
but does deny that they provide a proper basis for the Commis¬
sion's decision." The Court's decision says further that "appel¬
lant places considerable stress, also, upon the need for broad¬
casting services in the area served by Station KWTN, and upon the
fact that 'No question was raised upon the record with respect to
the efficiency of the station's present transmitting equipment and
antenna system or the suitability of its site.' These are no
doubt important considerations, to be weighed by the Commission in
making its determination. But other considerations are import¬
ant also, including the willingness and ability of the licensee
i;" Id
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10/24/39
to comply with the law and with the rules and regulations pres¬
cribed by the Commission; in order to guarantee so far as pos¬
sible a wholesome policy in management and operation,
"We think the record in the present case fully justifies
the Commission’s action in refusing to renew the license."
XXXXXXXXX
BOSTON LAWYER BECOMES AIDE TO FLY
Nathan H. David of Nevrton Highlands, Mass. , this week
assumed the duties of Assistant to Chairman James L. Fly, of the
Federal Communications Commission.
Mr. David was born at Somerville, Mass., on August 1,
1913. He was graduated from Yale University in 1934 magna cum
laude and stood fourth in his class when graduated from Harvard
Law School three years later. He served two years on the Board
of the Harvard Law Review, the second being spent as Case Editor,
Since 1937 Mr. David h=^s been associa.ted with the Boston
law firm of Burns and Brandon, (John J. Burns was formerly General
Counsel of the Securities and Exchange Commission) . He assisted
in the preparation of evidence and law in support of New England’s
position in the Southern Governors’ Fa.te Case. He has also
specialized in work involving the Securities Act, the Exchange
Act, and Public Utilities Holding Company Act, the Fair Labor
Standards Act, the Labor Relations Act, and motor vehicles regu¬
lations.
xxxxxxxx
NEWSPAPER STATION SUPPORTS NAB CODE
Station WBAP, of Fort Worth, Texas, did not join other
stations Sunday in the regular broadcast of Governor O’Daniel* s
weekly address.
WBAP, the Star- Telegram’ s station, issued an explanation
as follows;
"The usual talk of Governor O' Daniel ws-S not heard over
this station this morning because the Governor does not desire to
submit advance script of his speech to the station. The regula¬
tions, imposed in the Code of the Natr'-onal Association of Broad¬
casters, of which this station is a member, require that all per¬
sons in the discussion of controversial issues be treated equally.
"The facilities of WBAP, so far as time is concerned,
have been tendered to the Governor without cost to him. They
remain open to him if he desires to use them on the same basis
S'S others. "
xxxxxxxx
- 4 -
> '.e ‘ • \
10/24/39
SARNOFF SEES TELEVISION AS NEW EDUCATION AID
Speaking recently at a New York University ceremony at
Albany, David Sarnoff, President of the Ra.dio Corporation of
America, discussed the various educational services of the
National Broadcasting Company and predicted that television will
provide a new educational aid.
Copies of the address were distributed this week by
Frank E. Mullen, RC>^ Vice President in Charge of Publicity and
Advertising.
“It would be difficult to overestimate its future
significance, or its potential influence on education", Mr.
Sarnoff said.
"In making television receiving sets available to the
residents of this area, a number of competing radio manufactur¬
ers have followed the lead of the RCA, and several makes of
receivers are now on the market. The only programs broadca,st so
far in the New York area have been those of the National Broad¬
casting Company. We hope that before long we may also experience
the stimulus of competition in this wonderfully Interesting field.
NBC television programs are broadcast regularly four days a week,
supplemented by additional pickups of special events on other
days.
“For the presentation of music and of factual news bul¬
letins, sound broadcasting can do a highly satisfactory Job with¬
out any visual aid. Most other program subjects can be presented
more effectively by sight and sound combined than by sound alone,
and there are many subjects suitable for television which are
entirely outside the scope of sound broadcasting.
“Seated before your television receiver you can see
as well as hear your public speaker, comedian, or opera star.
You can attend an exhibit of art while a qualified commentator
discusses it. You can study bugs under a microscope, watch a
parade or a football game, observe experiments in physics and
chemistry, or rntness public events - American history in the mak¬
ing,
“To sit before a receiving set in your living room and
see as well as hear events which are taking place many miles
away is a far cry from Marconi's early exploits. But the American
people have lost their capacity for being surprised. The rapid
pace of industria.l science ha.s ta.ught us to expect miracles as
an everyday occurrence. New products and services are no longer
Judged by their novelty but by their utility.
“The usefulness of broadcasting in educa.tion is now
clearly e sta.blished. It should grow with the years. In it, the
ultimate aims of educators and broadcasters are identical. Both
desire to see American standards of culture and intelligence
ra,ised to higher levels. Both recognize the power of broadcast¬
ing as a means to that end.
5
10/24/39
"These are days when American institutions are the
subject of attack, both abroad and at home. The question is
again being asked, as it was in Lincoln's time, 'whether this
nation or any nation so conceived and so dedicated can long
endure.* I believe it can.
"But the answer lies largely in the use we make of
our freedom; in the ability of our citizens to think for them¬
selves and to govern themselves; in the ability of our self-
controlled industries to render a larger measure of oublic ser¬
vice than is rendered by the state-controlled industries of other
lands,
"Young as it is, radio is proud of its share in help¬
ing to shape that answer. Education of the masses - as well as
of the leaders - is one of the bulwarks of our democracy. Radio
is a mass medium. It reaches both the rich and the poor. It
reaches the leaders, and the led. It reaches the literate, and
those who cannot read. It brings the treasures of education to
all alike. In fact, the richest man in the world cannot buy for
himself what the poorest man gets free by radio.
"In no other nation of the world - even where it is
endowed by the treasuries of the state - has radio achieved so
much in the cause of education and freedom as it has in the United
States. "
xxxxxxxxxx
INCREASED RADIO SALES SEEN IN TAX COLLECTIONS
Substantially increased redio sales this year were indi¬
cated in the September report of the U. S. Bureau of Internal
Revenue on collections of the 5 percent radio excise tax, accord¬
ing to Bond Geddes, Executive Vice-President of the Radio Manu¬
facturers' Association, At the end of September the increase was
82.7 percent above the same nine months' period of last year.
Collections of the 5 percent radio excise tax in September were
$590,350.31, higher by 70 percent over the September 1938 radio
taxes of $345,431.00. Collections of excise taxes on mechanical
refrigerators in September were $637,537.93, against $404,479.27
in September 1938.
For the nine months ending September this year, collec¬
tions of the radio excise tax totaled $3,440,940.12, increased
22.7 percent above the excise taxes collected during the first
nine months of 1938 amounting to $2,804,997.65.
xxxxxxxxx
6
10/24/39
NAB HEAD HITS ROOSEVELT RESIGNATION
Indirectly assailling the resignation of Elliott
Roosevelt from the National Association of Broadcasters, Neville
Miller, NAB President, on Sunday entered a vigorous defense of
the new broadcasters' code, which outlaws the sale of radio time
for "the discussion of controversial public issues".
Speaking from Washington over a Columbia network of
45 stations, Mr, Miller denied that the Code bars opinion from
the air. It merely provides, he said, "that those holding other
views shall not be deprived of the right to present their views
under similar conditions."
Without mentioning Elliott Roosevelt's name, Mr. Miller
hit at the expression of "personal opinions under the guise of
news". He went on to say that "the job of the news broadcasters
in a democracy ends with the presentation of the news as it
happens.
"If one giving a news broadcast wishes to express on
the air his personal opinion about a public controversial matter,
he has an opportunity to do so on time freely allotted for the
discussion of public controversial questions, but his opinion
does not belong on a news broadcast. "
Elliott Roosevelt in a broadcast on October 7 defied the
NAB to stop him from expression his opinion on neutrality issues
in his news comments. Friday, However, after action by the NAB,
the Mutual Broadcasting System announced that he would confonn to
the Code in his network comments. At the same time the President's
eldest son stated that he would resign from the NAB and take
with him ten Texas station members.
The Code restrictions on news commentators also apply
to others who may seek to purchase radio time to discuss contro¬
versial subjects.
Mr. Miller maintained that before the Code was adopted
"there was a danger that, due to the mere possession of money,
various groups might monopolize, dominate or control the discus¬
sion of public issues over the radio, precluding a fair opportun¬
ity for the opposition.
XXXXXXXX
CHICAGO LABOR STATION GOES OFF THE AIR
The Federal Communications Commission this week made
permanent its preliminary order refusing a renewal of license to
the Chicago Federation of Labor' s short-wave station, W9XAA, and
denying permission to transfer the license to the Radio Service
Corporation of Utah.
XXXXXXXX
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EDUCATORS JOIN N.Y.C. IN PLEA TO ALTER FCC RULE
Prominent educators and the operator of an interna¬
tional short-wave educational radio station joined Mayor LaG-uardia
of New York City this week in urging the Federal Communications
Commission to remove its prohibition against the rebroadcasting
of short-wave programs by a long- wave outlet.
Mayor ]LaGuardia explained that New York City wants to
pick up certain programs of Station WBUL, operated by the World
Wide Broadcasting Foundation, for re broadcasting on Station WNYC,
the New York municipally- owned station. He was Joined in his
request by Walter S. Lemmon, President of the World Wide Broad¬
casting Foundation.
Among others who endorsed the change in rules to permit
a wider distribution of educational broadcasts were:
Professor William Y. Elliott of Harvard; Frank Schooley,
Executive Secretary of the National Association of Educational
Broadcasters and Program Director of Station WILL of the Univer¬
sity of Illinois, and S. Howard Evans, Executive Secretary of the
National Committee on Education by Radio.
It was their contention, supported also as a technical
proposition by Mr. Lemmon and by Moris Novik, Director of Station
WNYC, that programs can be picked up and re broadcast as proposed
without affecting adversely the maximum efficiency in operation
of Station WBUL, the protection of which is the object of the
Commission's existing prohibitory ruling.
The rules of the Commission do not now permit regular
stations to rebroadcast the programs of international broadcast
stations located within the United States except where wire lines
are not available to transmit the programs to regular broadcast
stations.
Mayor LaGuardia' s petition for amendment of the rule in
favor of non-commercial stations is regarded as a test case by
which will be determined whether relaxation is possible of the
prohibition to permit the rebroadcasting of special programs from
international stations by non- commercial stations, including those
owned by and operated by municipalities and other government
agencies, universities and other educational institutions and non¬
profit organizations.
It has been the belief and policy of the Commission,
and was contended by Andrew D. Ring, the FCC s Assistant Chief
Engineer, at the hearing, that indications point to the impos¬
sibility of making such rebroadcasts without detracting from the
efficiency of operation of international stations.
Mr. Lemmon, however, argued that, with the development
of the radio art and by the use of improved directional antenna
in his own station, a,nd capable of installation in other stations
8
10/24/39
at an approximate cost of $1,000, such rebroadcasts can, in fact,
be made.
Both agreed that the test is whether or not programs
as broadcast to foreign stations can be clearly heard when picked
up by short-wave over radio sets in this country, and that no
conclusive evidence on this point was at present available.
Mr. Ring conceded the possibility of such clear recep¬
tion here and abroad and under certain conditions, but declared
tha,t an exhaustive survey would be essential to determine the
facts.
Mr. Lemmon presented affirmative telegrams received
from listeners in many parts of this country in response to a
general request broadcast by his station for reports from all
parts of the world on the clarity of reception of its programs.
He conceded that these returns from the United Sta.tes
were not conclusive, but argued that they were indicative.
XXXXXXXXXX
AIRING OF FEUD SCHEDULED IN BOSTON NEXT MONTH
A long smouldering feud between John Shepard, III,
operator of the Yankee Network, and Lawrence Flynn, a former
employee, is scheduled for an airing in Boston on November 8,
when an Examiner of the Federal Communications Commission takes
testimony on the application of Mr. Flynn for a permit to use
WAAB's 1410 kc. wavelength.
The Shepard- Flynn row has been before the Cb.:mission for
more than a year and in the Fall of 1938 caused a minor political
explosion when a hearing was scheduled and later withdrawn on
charges against the Yankee Network head.
Broadcasters are interested in the matter because of
the question involved in the original controversy as to whether a
station owner may conduct a crusade and express editorial opin¬
ions over his radio outlet. Since theSheoard episode, however,
the NAB Code has placed restrictions on the broadcasting.
Mr. Shepard also is at odds with the National Associa,-
tion of Eroa^dcasters regarding enforcement of the Code provision
which would stop the paid broadcasts of the Rev. Charles E.
Coughlin after October 29th on the Colonial Network. Mr. Shepard
was reported, however, to be considering a proposal to give
Father Coughlin the time after the expiration of the present
contract.
XXXXXXXX
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NEW DEVICE TO AID STUDY OF SHORT- WAVES
An invention announced this week by the Bell Telephone
Laboratories is expected to aid the study of disturbances in
short-wave radio transmission.
By enabling astronomers to study the activity of the
solar corona - the flaming halo around the sun - the device will
permit the forecasting of short-wave interference which origi¬
nates in the sun.
The machine was invented by Dr. A. M. Skellett of the
laboratories. It has been successfully tried out in the private
observatory of Dr. G. W. Cook at Wynnewood, Pa.
The new system or machine, named the "coronavlser”,
uses the principles of television, which can discriminate between
steady light and variations. In effect it "scans” a ring around
the sun, discarding the light from the sun itself and throwing
on a cathode ray reproducer only the image of the corona. ’This
was impossible with ordinary apparatus because the main body of
the sun is a. million times brighter than its luminous envelope.
In the actual operation of the system in Dr. Cook's
observatory it was discovered that almost perfect conditions of
cleanliness of reflectors and lenses must prevail to get a true
image. The slightest smudge or grain of dust on the glass plate
supporting the scanning hole unit showed up on the reproducer.
Occasionally tiny specks of brilliant light would float
across the screen, the sources of which were puzzling. They fin¬
ally were traced to wind-blown seeds or specks of dust drifting
across the path of the light reflected from the siderostat mirror
into the eye of the sca,nning system.
The real worth of the corona viser, the Bell Laboratories
said, will not be definitely determined until it has been used
under the clear skies encountered on mountain tops, where the
principal observatories are situated, and where a telescope point¬
ing directly at the sun can be used. At Wynnewood, only a hori¬
zontal mounting was feasible. This, the inventor said, caused
considerably more glare than will be encountered in a vertical
mounting,
xxxxxxxx
LONDONERS REGRET TABU ON TELEVISION
"It has been pointed out to us that nobody said a word
in the Radio Time s about the passing of television", the Radio
Time s , of London, comments. "That is quite true, but so many
things were passing, too, on that ominous week-end at the begin¬
ning of September, that television was at least not singled out
for neglect. As a matter of fact we ourselves, as viewers, miss
television a.s much as anybody could. It seems to us tha.t it
would have been the ideal entertainment for the black-outs -
something to keep you happy that does not mean going out, that
does not cause crowds to collect, and th^^t you can enjoy in a
darkened room. "
XXXXXXXX
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TRADE NOTES
The Federal Trade Commission announces th?t hearings to
take testimony were to be held in the case of the Automatic Ra.dio
Manufacturing Company, Inc., Boston, and others, on Monday,
October 23rd, and Wednesda.y, October 25th, at Philadelphia and
New York respectively. The case involves unauthorized use of
well-known trade names.
The possibilities of radio in advertising and why many
opportunities for increasing sales have been slighted because of
unfamiliarity with a still more or less unexplored technique are
examined in "Ra.dio as aji Advertising Medium", by Warren B. Dygert,
Assistant Professor of Marketing at New York University and
Secretary and Account Executive of F. J. Low Advertising Agency.
The volume is published by the McG-raw-Hill Book Comoany, Inc., at
$3.00
Seasonal increases in radio factory employment, payrolls
and working hours were detailed in the current employment report
for July 1939 of the U. S. Bureau of Labor Statistics. Radio
factory employment last July increased 8.1 percent over the pre¬
ceding month and was 43.7 percent above radio employment in July
1938. The July index figure on radio employment was 117.3 compared
with the June indes of 108.5. A supplementary government report
stated that in the monthly turnover rate per 100 radio employees,
there were layoofs last July of only 1.34 per 100 and 1.35 per
100 in August, while the ratio of new employees hired was 6.51
last July and 8.16 in August, compared with 5.36 in August 1938.
"Americans All - Immigrants All", the U. S. Office of
Education's series of dramatic radio programs devoted to promotion
of racial and religious tolerance, has Just received the Fourth
Annual American Legion Auxiliary P^dio Award. Citations on silver
plaques were presented to Sterling Fisher of the Columbia Broad¬
casting System and to John W. Stude baker, U. S. Commissioner of
Education, praising the series for its "endeavor to present a
cross section of community life through several generations of
America's immigrants". In announcing the award at the Chicago
convention of the auxiliary, Mrs. William H. Corwith, Chairman of
the National Ra.dio Committee, sa.id that "Americans All - Immi¬
grants All" is "a program vhich best inculcates the characteristics
of the American way of life and government. "
WSNY Elmira's new radio station, will be affiliated
with the Mutual Broadcasting System when the station is formally
opened within a few weeks, it was announced this week by J. T.
Calkins, of the Elmira Star- daze tte , Inc., owners of WENY, and by
Fred W^ber, G-eneral Manager of the Mutual Broadcasting System.
The station will operate on 1200 kc . , 250 watts power and unlimit¬
ed time.
XXXXXXXXXX
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BRITISH LURE NAZI LISTENERS BY PRISONER LIST
The British are trying out a new idea to get their
propaganda over in Germany - tempting the Germans to tune in on
a radio broadcast of news items favorable to the allies by sand¬
wiching in the names of German prisoners of war, according to the
Associated Press.
The broadcasts originate in the studios of the British
Broadcasting Corporation. Twenty names are read daily. Ten names
are repeated from yesterday’s list, and ten new ones are added.
The program was beamed toward Germany from powerful
short-wave transmitters in Daventry, England, it was sta.ted. The
actual reading of the names takes only about half a minute; the
rest of the time is given over to the reading of the news items.
xxxxxxxx
EDITOR SAYS ELLIOTT'S WRONG, NAB RIGHT
Following is an editorial which appeared in the Washing¬
ton Post this week:
"The ban which the National Association of Broadcasters
voluntarily imposed upon the sale of time for discussion of contro¬
versial issues has caused Elliott Roosevelt to withdraw from
membership on the ground that the new rule constitutes 'censorship
in its worst form' , Representative Cochran of Missouri has also
characterized the ruling as 'a direct assault upon one of the most
sacred provisions of our Constitution - freedom of speech'.
"These views betray a profound misconception of the nature of
the problem with which the NAB is trying to deal. The new ruling
does not involve any curtailment of constitutionally guaranteed
ri^ts of free speech. Nor is there any element of censorship
apparent in a resolution that simply defines the conditions under
which controversial discussions may be broadcast. Indeed, it can
be argued quite plausibly that greater freedom of discussion is
encouraged by putting the man who cannot pay for radio time on the
same footing as one with money.
"Radio transmission is clearly 'affected with a public inter¬
est'. Hence, it has been subjected to Federal regulation on an
extensive scale. And regulation will unquestionably become more
sweeping as the potentialities of the radio for influencing public
opinion ere better understood. Without restrictive rules and
regulation bedlam would result. Moreover, for the sake of good
taste and the preservation of public morals, a certain amount of
censorship over programs is essential. There is no difference of
opinion on that point; the only question arises as to where to
draw the line in specific cases .
J'There is certainly room for doubt as to the practicability
and desirability of the new policy. But there is no warrant for
assuming tha.t a .man's freedom of speech is invaded because he is
unable to buy time on the air to broadcast his personal opinions
to the world. "
XXXXXXXX
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2400 CALIFORNIA STREET WASIIINGToj^, D. C.
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INDEX TO ISSUE OF OCTOBER 27, 1939
?^'Iortgage Station Control Hit; License Revoked . 2
WMCA Exonerated; Mildly Reproved By FCC . 3
Radio Committee Names Publicity Director....
Capital G-ets High Frequency Station .
War Stresses Value Of Educational Broadcasts
Radio Carries On In China War Zone . 6
Fly Defends NAB Code In Maiden Ra.dio Speech . 7
Bulova Deal Upheld In Final FCC Order . . . 9
Sweeney Says Own Survey Shoves Super-Power Need . 10
/•Celler Offers Blll^ To Curb Defamation On Radio . 11
Trade Notes . |. . 12
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MORTGAGE STATION CONTROL HIT; LICENSE REVOKED
The Federal Communications Commission this week struck
a blow at mortgage control of broadcasting stations as it revok¬
ed the license of a Maryland station and set for hearing the
renewals of two other stations.
The license of Station WSAL, Salisbury, Md. , wa.s revok¬
ed by the FCC and hearings were scheduled on renewal of licenses
of two other stations on the ground that they were controlled by
a Washington radio engineer, Glenn D. Gillett, in violation of
the Communications Act.
Mr. Gillett was said to have obtained control of the
stations by purchasing mortgages on them. He failed, however,
to have the stations transferred legally to him by FCC approval
of the deals.
Simultaneous with the revocation of the WSAL license,
Frank M. Stearns, its operator, filed an application to assign
the permit to the Eastern Shore Broadcasting Co.
The two other stations said by the FCC to be controlled
by Mr. Gillett through mortgage holdings are WEAK, Wilkes Barre,
Penna. , and WQDM, St. Albans, Vt. Both were granted temporary
license renewals pending hearings.
Mr. Stearns wa.s said by the FCC "to have made false
and fraudulent statements" with regard to the station's financing,
equipment and ownership.
The WSAL license revocation is effective November 13,
unless the licensee applies for a hearing, in which case it will
stand suspended until decision of the Commission following such
hearing.
On January 13, 1938, Frank M. Stearns was licensed to
operate station WSAL, daytime hours on 1200 kc., with 250 watts,
the FCC stated.
"He is held to have made false and fraudulent statements
and failed to make full disclosure to the Commission concerning
the financing of station construction, equipment used, and owner¬
ship, management, and control, facts which would have warranted
refusal to grant construction permit and sta.tion license had they
been known to the Commission", it added. "It further appears
that the rights granted under the terms of the license have,
without the Commission's written consent, been transferred.
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10/27/39
assigned or otherwise disposed of by the licensee, in violation
of the Communications Act of 1934, as amended. There is evi¬
dence that G-lenn D. Gillett, mortgagee, has been in actual con¬
trol of the station.
'•G-illett is also in apparent control of Stations WBAX
and WQDM, in violation of Section 310(b) of the Act. License
for WBAX, (1210 kc., 100 watts, unlimited time) is in the name of
John H. Stenger, Jr. That for WQDM (1390 kc. , 1 KW, day) is held
by E. J. Regan and F. Arthur Bostwick. ”
xxxxxxxx
WMCA EXONERATED; MILDLY RER ROVED BY FCC
Station WM.GA, New York, was exonerated of any serious
illegal action in broadcasting military information of British
and G-erman authorities at the outbreak of the European war in an
order issued this week by the Federal Communications Commission.
The order, while removing the threat of license revoca¬
tion, contained a mild reproff of the station management and
stated that the case would be considered in any future examina¬
tion of the licensee.
The decision was unanimous despite the fact that shortly
after the public hearing on September 27 several members of the
Commission were reliably reported to be insistent tha.t WMCA's
license be revoked.
After reciting the circumstances of the broadcast and
the advertisements of "scoops” in trade journals, the FCC said
in its order:
"That the broadcasting of the substance of the messages
described runs counter to the provisions of Sec. 605 of the Com¬
munications Act admits of little doubt. The evidence in this
case shows conclusively that the messages in question were import¬
ant orders of the governments of Germany and Great Britain, res¬
pectively; that they were to govern important ship movements in
anticipation of, and perhaps during war; that they were address¬
ed communications, albeit to multiple addressees; that they were
intercepted without the authority of the senders; and that MCA
knowing that the messages had been obtained by means of inter¬
ception, broadcast the substance thereof from its station. This
conduct of the station must be viewed in the light of the great
international stress then prevailing and of the special duty of
^erican broadcasters, who are licensed for the purpose of serv¬
ing the public interest, to conduct their operations with a
corresponding degree of care.
"While, as has already been pointed out, the specific
statutory prohibition now before us applies generally, a viola¬
tion of it by a holder of a radio broadcast license must command
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10/27/39
our special attention. Especially is this true since there
threads throughout the statute both generally and specifically
the notion that broadcasters perforce of law undertake to serve
the public interest. The legal concept of public interest is
not different in time of crisis although its factual content may
vary from time to time as the public necessarily and properly
shifts the emphasis of its concern from one predominant fact to
another.
"Apart from the broadcasts of the station and the in~
adequate response to the Commission’s order to show cause, the
irresponsible actions of the licensee in connection with the
full-page advertisement quoted above warrant comment. Regardless
of the legality of such advertising as a trade practice it raises
a question as to the character and responsibility of the manage¬
ment in the light of its obligation to operate the station in
the public interest. More than honesty is at stake. The adver¬
tisement creates the possibility that competing broadcast sta¬
tions will be drawn toward the same line of illegal broadcast
activity boasted by this station. The President of the licensee
corporation, Donald Flamra, admitted that the statements the sta¬
tion quoted from the G-eorge Ross column were false and that
although he examined the "layout" of the advertisement, neither
he nor anyone else in his organization made any investigation or
gave consideration to the question as to truth of the representa¬
tions. When asked what disciplinary action had been taken in
this connection Flamm replied merely that he had given directions
that all future advertisements were to be submitted to the
attorney for the station .
"On behalf of the licensee it is recognized that the
broadcasts in question occurred during a period of unusual activ¬
ity in the gathering and dissemination of news of special interest
to the public. Speed in transmitting through the air news
flashes bearing on the European crisis was assumed to be of the
essence of this and other stations' service. The same interna¬
tional stress which made the conduct grave created the urge to
scoop the other stations. As was recognized broadly new and
important problems in connection with radio broadcasting arose
from the war crisis. Under these circumstances the Commission
will assume that these particular broadcasts were provoked by the
occasion and are not necessarily indicative of more widespread
infractions in the course of this station's broadcast activities.
"After consideration of the record and all the attendant
circumstances in this raa.tter, the Commission is of the opinion
that an order of revocation need not be entered at this time. On
the whole, however, grave doubt has been cast upon the licensee's
qualifications to operate its station in a manner consistent with
the public interest. Accordingly the record made in the differ¬
ent phases of this proceeding must be of cumulative weight in
determining the disposition to be made upon any future examina¬
tion into the conduct of this station. "
XXXXXXXXXX
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RADIO COM-MITTEE NAMES PUBLICITY DIRECTOR
John W. Studebaker, United States Commissioner of
Education and Chairman of the Federal P^adio Educational Committee,
has announced the appointment of J. Kenneth Jones as Director of
Information of the Committee.
Mr, Jones comes to the Committee after serving briefly
as Publicity Director of the Community Fund of Chicago. Prior to
that he was on the continuity and production staff of Station WHAS,
Columbia outlet in Louisville, Kentucky, and before his radio ser¬
vice he was Executive Secretary of the National Committee on
Public Education for Crime Control, in New York City.
XXXXXXXXX
CAPITAL GETS HIGH FREQUENCY STATION
The Federal Communica tions Commission this week author¬
ized granting of a construction permit to McNary & Chambers,
Washington, radio engineering firm, for erection in Bethesda, Md. ,
of a radio broadcasting station of the high frequency modulation
type, heralded by radio engineers as the coming instrument of
high fidelity transmission and receiving.
The station will operate on a frequency of 42,600 kilo¬
cycles with 100 watts pov/er. This is in the ultra-high frequency
band. Present home receivers are limited to 1,600 kilocycles.
A report filed with the Commission disclosed the
operators plan to study the nature of the service delivered, us¬
ing frequency modulation receivers installed in homes and build¬
ings throughout Washington and adjacent areas.
XXXXXXXXX
WAR STRESSES VALUE OF EDUCATIONAL BROADCASTS
Recent evacuation of British cities in the face of
European war dangers has emphasized the importance of radio in
the English educational system, the National Committee on Educa¬
tion by Radio points out. ^Hhen the children were moved ou into
the country, they left behind them their libraries, museums,
picture galleries, and motion picture facilities. The most read¬
ily available means of filling this gap is the radio. The city
teacher who had som.e skepticism about the value of radio is now
coming to i^derstand why the rural schools, cut off from educa¬
tional facilities available in cities, have been benefitted
particularly by the broadcasts of the BBC.
XXXXXXXX
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10/27/39
RADIO CARRIES ON IN CHINA WAR ZONE
Shanghai, though in the occupied Japanese area, is
still the center of broadcasting in China, some 40 stations
operating within the foreign concession area, according to a
Consular report to the U. S. Commerce Department.
"Many shifts in the ownership of Chinese stations have
occurred during the past two years", the report states, "while
an increasing number of Japanese stations have been opened. The
Chinese Government SbjOOO-watt short wave stations at Chunking,
which C8jne into operation during 1938, have since February 1939
been broadcasting to important countries of the world. Foreign
owned stations in Shanghai operate from 6 a.m. to as late as
1 a.m., while Chinese operated stations continue their programs
well into the night.
"Programs of Chinese stations consist largely of
Chinese musical pieces, drama, dialog, monologs, news comments,
religious services, health talks, safety talks, and similar sub¬
jects. Some stations feature lessons in English, French and
German, while others broadcast several hours of western music.
Foreign dance music has become popular among Chinese listeners,
and several Chinese stations are now featuring such programs.
"Foreign owned stations in Shanghai broadcast 95 per¬
cent musical programs, consisting mainly of recordings. Musical
selections include classical numbers, dance music, and orchestra
selections. Shanghai, being a very cosmopolitan city, is well
provided with musical programs appealing to the several nation¬
alities. Recorded humorous dialog is used extensively in
sponsored programs.
"Programs of stations in interior cities under Japanese
control are mainly of Chinese appeal, including music, drama,
speeches, news, and propaganda.
"At Shanghai most Chinese stations carry advertisements
or sponsored programs. Ra.tes are highly competitive. The princi¬
pal foreign-o\med stations, XMHA, xmc, XQHB, and XHMO all carry
advertising. There is no fixed scale of rates and confidential
discounts are common. Ra.tes on the Chinese sta.tions a.re very
Irregular. Some of the stations in Japanese occupied areas
operate commercial; others are maintained by the Japanese author¬
ities. "
XXXXXXXXX
„ The Federal Communications Commission entered its
ilnal order denying the application of the Moody Bible Institute
adio Station, Chicago, for a permit to construct a new non-
coramercial educa.tional broadca.st station to opera.te on frequency
^1,000 kc. with power of 100 watts, unlimited time. The order
IS effective November 1, 1939.
XXXXXXXXX
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10/27/39
FLY EEFENDS NAB CODE IN MAIDEN RADIO SPEECH
The self-imposed Code of the National Association of
a’oadcasters was approved in principle last night (Thursday) by
James L. Fly, Chairman of the Federal Communications Commission,
in his first address since he took office. The talk was broad¬
cast by the Columbia Broadcasting System.
While avoiding mention of names. Chairman Fly suggest¬
ed to broadcasters and others that the NAB Code be given a fair
trial and that all members of the trade orga^nization should look
to the ’’over-all benefits” rather than find fault with a rule
which restricts them.
Elliott Roosevelt, son of the President, announced his
resignation from the NAB last week in protest against a Code pro¬
vision barring expression of opinion on controversial issues in
a sponsored broadcast. Other stations have threatened to quit
because of the ban on paid broadcasts by the Rev. Charles E.
Coughlin, Detroit priest, after expiration of present contracts.
”It may be obvious that even self- regulation, voluntar¬
ily imposed, may at times actually regulate”, he said. ”We are
reminded of the boy, who, understanding the problem, meets with
a group and decides upon the rules of the game which shall be
applicable to all concerned. Thereafter, when one of the particu¬
lar rules he.s its impact upon his own conduct, and the boy breaks
up the game, picks up his playthings and goes home, he is hardly
displaying the highest type of sportsmanship.
’’The adoption of the Code and its self- imposition by
the broadcasters is an example of democracy at work. Democracy
can hardly mean either in a game or in a form of Government that
those who have adopted the regulations will abide by them only
so long as they serve their own particular interest. Any set of
regulations, even when self-imposed, is apt at some point along
the line to apply to every particular person v/ho has adopted the
regulation. No one particularly enjoys the regulation the moment
it restricts his own activity; but still, he should be capable
of viewing the over-all benefits which may be derived from a
comprehensive and effective set of rules applicable to all a,like.
’’But control of radio in the public interest is more
serious than any game,
”A ready illustr.ation of the character of the problems
and the necessity of supplementing existing regulation was
demonstrated by conditions at the outbrea.k of the current war.
The crisis precipitated serious problems of completeness, fair-
p^ccurrcy of war news, and of the delineation and proper
Identification of war propaganda,. Broa.dly, the integrity of the
service was^at sta.ke. The problem of neutrality itself was
nvolved. In that instance, representatives of the broad-casting
industry drafted, and, to their credit, most of the broadcasters
7
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adopted, a code of practices concerning war news and comment,
effectively meeting these problems.
"It should be noted that neither this nor the general
code already adopted was the work of the Communications Commis¬
sion. They are none the less important as examples of self¬
regulation consistent with the public interest.
"To return to the provision of the Code voluntarily
adopted last July which has provoked considerable discussion, the
one having to do with the handling of controversial issues. This
article recognizes that a well-balanced program of a radiobroad¬
casting station should include, as part of the station’s public
service, time for the presentation over the air of public ques¬
tions, including questions of a controversial nature. However,
it is provided that time for the presentation of controversial -
issues over the air shall not be sold except for political broad¬
casts. The Code does not prohibit selling time for the discus¬
sion of controversial public issues in the public forum type of
prograjn when such program is regularly presented as a series of
two-sided discussions of public issues.
"It seems to me that here again, the problem is one of
giving the rule a fair opportunity to work. The job of the
broadcaster is to see that the public has opportunity to hear
free debate upon all controversial problems.
"The one limitation in the Code is that time on the air
may not be sold for the presentation of controversial issues. The
Code places the duty on broadcasters to bring both sides of such
issues to the public regardless of the ability of the speakers to
pay for the time. It has been, and we may expect it to continue
to be, the policy of the broadcasting companies to give free time
to the responsible leaders who desire to speak on controversial
issues. And at the same time to provide for the listeners an
equal opportunity to hear the other side.
"The really grave issue is whether or not the right to
speak and to present one-sided arguments on public questions
shall be limited to those who can buy the time. In other words,
shall single individuals or groups of individuals through sheer
economic pov^er be permitted to buy the limited amount of time and
space in these limited channels of expression in order to advocate
in a one-sided manner the views which they themselves desire to
promote. Shall this mode of expression be sold to the highest
bidder? If carried to the logical extreme, how then can the mil¬
lions of the public constituting the radio audience be assured of
receiving the complete and balanced discussions of public issues
which they are entitled to receive. The least freedom exists in
those countries today where only limited groups of powerful
individuals can utilize the radio waveswith absolute freedom.
"It is worthy of repetition that both sides in public
controversies should be hea.rd; that there should be as full and
complete a discussion of public issues as the time and facilities
will permit. In turn, it must follow that no single powerful
8
'T.rv.r
10/87/39
person or group should be able through the exercise of economic
or other power to present only their side of controversial
issues, and through the exercise of the same power exclude the
other side from the radio channels,
'•I have no particular brief for any detailed form of
rule. It may well be that in the light of experience, the rule
need be changed in some particulars, with a view to assuring the
public that it does have full opportunity to hear full, free and
two-wided discussions of all the great issues. Radio as a social
force can only move along the line of giving to the public the
fullest and freest expression of information, comment and opinion
on all the great problems. Under the true system of democracy
it can never be made available exclusively to the limited and
powerful group who will present only their own side of any issue.
"It should be borne in mind that the G-overnment does
not license the radio station itself because it thinks that the
omer has any legal right to be heard. The rea,l reason the sta¬
tion is permitted to operate is because of the service which that
station undertakes to give to all of you - the radio audience.
I repeat, that much is basic. "
Mr. Fly added that the FCC "neither asserts nor seeks
the power to censor" radio programs and that "neither the Congress
nor the Commission undertakes to act as a general lord for the
industry.
XXXXXXXX
BULOVA DEAL UPHELD IN FINAL FCC ORDER
The Federal Communications Commission this week entered
its final order approving the controversial deal of Arde Bulova,
New York watch manufacturer and broadcaster, to close an Atlaaitic
City and a New York City station and operate a new outlet in
New York, Station WBIL.
Following a public hearing at which the Bulova deal
wa.s attacked and defended, the FCC Issued a.n order which upheld
an earlier ruling granting the application of the Greater Broad¬
casting Corporation, of New York, a license to operate a new
station on 1100 kc. , with 5 KW power, unlimited time, in New York.
Station WPG in Atlantic City, N. J. , which now ooerates
on 1100 kc.,^with 5 KW, and shares time f^ith Station WBIL, in New
Yorx City , ^ will cease to operate in Atlantic City. Station WOV,
ew York City, now operating on 1130 kc. , with 1 KW oower, will
a.lso cease operation. The order is effective November 1.
XXXXXXXXXX
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10/27/39
SWEENEY SAYS OWN SURVEY SHOWS SUPER-POWER NEED
A one-man post- card survey contradicts findings of the
Federal Communications Commission and shows the need for superb-
power broadcasting by Stations such as WLW, Cincinnati, to serve
rural areas, Representative Sweeney ( D. ) , of Ohio, said this week
In an extension of remarks in the Congressional Record
Representative Sweeney set forth in detail the results of his
survey.
"Mr. Speaker, after months of work, and I might say
after a great deal of time and effort, I am prepared now to give
the House the result of a postal-card survey I personally made of
the broadcasting situation as it exists today", he said, "I made
this survey in an effort to show that the action of the Federal
Communications Commission in denying dear-channel stations addi¬
tional power to meet the demands of rural listeners was arbitrary,
unwarranted, and capricious.
"You will recall that last May the Federal Communica¬
tions Commission, and after a stormy hearing that lasted several
months, decided - I might say against the weight of all social
and economic evidence - to deny dear-channel stations a power
output in excess of 50 kilowatts. This decision meant that people
living in rural areas in many States of the United States would
be left with poor, and in a very great percent of the instances,
without any satisfactory radio reception. At the time the Commis¬
sion arrived at this strange decision to put aside the public
interest and to administratively legislate for a very small minor¬
ity in the broadcasting field, I criticized this finding and call¬
ed attention of Members of the Congress to this unexplainable act.
At that time I did not ha.ve many facts and figures available
other than the information which was brought out at the hearings.
Because I found such a great deal of interest both in the House
and on the outside in my criticism of the Commission, I decided
to make a survey of my own and see what the situation was at the
present time.
"With this in mind, I sent out 25,000 cards to rural
route box holders in Louisiana, Kentucky, Michigan, Florida,
Virginia, Kansas, Missouri, West Virginia, Alabama, North Caro¬
lina, Mississippi, Ohio, Indiana, and Arkansas asking them to
select the first 4 stations of their choice both in the daytime
and at night, and to also give me their comment on the business
of broadcasting. I got back, to da,te, a 10 percent return on
these cards and the result has been amazing, not only to me but
I am sure it will be likewise amazing and probably very interest¬
ing to the Federal Communica tioris Commission. The survey card
which I sent was almost an exact duplicate of the one sent out by
the Commission in 1935 and again in 1937, and bears out exactly
what I said on the floor of. this House on Tuesday, May 16, 1939,
when I made the statement tha.t rural America stands condemned to
tne ’tongueless silence of the dreamless dusk’. That rural
a.nd suburban America, depend upon and listen to clear-cha.nnel
stations has been demonstrated by the returns of this survey.
This is unquestionably substantiated by the fact that in the
10 -
- .
^:A
10/27/39
14 States mentioned, the dear-channel stations which now have
the greatest amount of power are almost alone in the field of
preference of the rural radio listener. Rural America depends
upon the dear-channel stations and if I am to believe the com¬
ments contained in the cards that I got back, most of this cross
section of the country, not only are anxious, but demand power
that will put them on a par with their metropolitan brothers in
the matter of radio reception,
"In this connection I might add that many of the cards
came back to me with the notation to restore the power of the
Ohio station which was the only one permitted to operate in ex¬
cess of 50 kilowatts for a specified time. The survey demon¬
strates beyond the shadow of a doubt tha.t this station, in its
experimental operation, v-^as able to furnish good radio reception
to the rural areas, a condition that cannot now be approached
since the station was arbitrarily reduced from 500 kilowatts to
50 kilowatts power last March.
"From every section of the country comes the demand
that Congress should take in its o\wri hands the business of per¬
mitting dear-channel stations to operate on power greater than
50 kilowatts. If the Ohio station served the rural listener so
effectively, I cannot see why the Commission does not probe the
question a little further, and should it do this I am sure it
will reach the unalterable conclusion that the only answer to
reception parity in radio is power. If the Commission would
decide to grant licenses to clear-channel stations for power in
excess of 50 kilowatts the answer would be automatic in the
af firmative. "
XXXXXXXX
CELLSR OFFERS BILL TO CURB DEFAivIATION ON RADIO
A bill was introduced in the House by Representative
Celler (D.), of New York, this week to provide criminal and civil
remedies for the defamation of classes of persons, groups, etc.,
either over the air or through the mails.
The legislation provides the right to bring civil
action for damages in the Federal Courts against any person or
persons who use the radio or the mails or the press in trans¬
mitting in interstate or foreign commerce printed or oral defam¬
atory, slanderous or libelous statements concerning any religious,
racial, national, fraternal, industrial, commercial or labor
group.
Similarly, any person or persona who shall by radio or
by press or through the mails, send or transmit, or shall cause
to be sent or transmitted in interstate or foreign commerce,
any written, printed or oral communication wLiich is defamatory
of any religious, racial, national, fraternal, industrial, com¬
mercial, or labor group, shall be liable for imprisonment for a.
term not to exceed one year, or to a fine not to exceed $5,000
or both. In such action, as in the civil action, the defenses
of truth a,nd privilege sha.ll be available.
XXXXXXXXX
- 11 -
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10/27/39
TRADE NOTES
World Rpdio Market releases of the U. S. Department of
Commerce this week Included reports on Chosen, French Ouiana,
Canary Islands, and China.
David Lawrence, editor of the United States News, and
Edgar L. Bill, of the National Association of Broadcasters, are
scheduled to air opposing views on the new NAB ruling on contro¬
versial broadcasts in talks via CBS network Sunday, October 29,
and Sunday, Nov. 5, respectively. (WABC CBS, 1:35 to 2:00 P.M.,
EST, Sunday, Oct. 29, and 1:45 to 2:00 P.M. , EST, Sunday, Nov. 5).
The title of Mr. Lawrence’s address is ’’Freedom for the Thought
We Hate", and is in reply to one made over CBS Sunday, Oct. 22,
by Neville Miller, NAB President. Mr. Bill, President of Station
WIffiD in Peoria, Ill. , and Chairman of the NAB Code Compliance
Committee which promulgated the ruling, has "The Code Means
Fair Play to All" as his topic.
An application to remove its transmitter to Kearney,
N. J., will be filed with the Federal Communications Commission,
it was announced this week by Donald Flamm, President of Station
WMCA. Selection of the wite wa.s made recently following an
agreement with the City of Nev/ York to eliminate the two 300 foot
towers from the Flushing plant held to be a hazard to the new
North Beach airport. Pending approval of the application, WMCA
will continue operation from the present location.
G-. T.C. Fry will become Sales Promotion Manager for
Columbia’s Detroit office, effective November 1, it was announced
by Victor M. Ratner, CBS Director of Sales Promotion. Mr. Fry
comes to Columbia from a post as Assistant Promotion Manager for
Esquire Magazine, and will report directly to Mr. Ratner.
Appointment of a receiver for the Majestic Radio & Tele¬
vision Corporation was asked in Chicago Federal Court yesterda.y
by Attorney Norman Nachman, who said he represented creditors.
Interests closely identified with Majestic Ra.dio & Television
Corporation were responsible for the heavy selling of the com¬
pany' s stock just before trading was suspended Tuesda.y by the
New York Curb Exchange, an investigation by State Attorney
General John J. Bennett, Jr., disclosed, according to an Associated
Press report under the date line of New York, Oct. 25. Temporary
suspension of trading of that company’s stock in the Curb Exchange
was ordered on October 24.
XXXXXXXXXXX
12 -
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21 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF OCTOBER 31, 1939
NAB, Embroiled In Code Row, Summons Directors . 2
Elliott Roosevelt Sees War Over NAB Code . 3
FCC Making Study Of Communications Facilities . 4
Senate May Get Amplifying System . 5
Crosley To Sell Time On New S-W Station . 5
Three Congressmen Cross Words At FCC Hearing . 6
President Lauds Radio In Speech To Forum . 6
Musician Contracts To Be Discussed In New York . 7
Advertisers Told Radio Audience Has Grown. . . 7
David Lawrence Assails NAB Code Over CBS . 8
Two Stations Granted For One City . 10
Broadcast Music Plan Is Completed . . . 10
Trade Notes . 11
Editor Hits Radio In ASCAP Row . 12
KDKA Ready To Open 50 KW. Station . 12
No. 1170
October 31, 1939.
NAB, EMBROILED IN CODE ROW, SUMIJIONS DIRECTORS
With the controversy over the NAB Code ban on paid
broadcasts of controversial topics growing, Directors of the trade
organization will meet in Chicago on Thursday and Friday of this
week in an attempt to mollify critics and avert a wider split
within broadcasting ranks.
While Washington officials of the NAB predicted that
the Directors will reaffim their support of the Code provision,
the Directors will consider at least one proposal to modify the
controversial ban.
With the expiration of most station contracts with the
Rev. Charles E, Coughlin last Sunday, the NAB has been informed
that many of the stations are determined to renew the weekly series
of talks regardless of the consequences.
John Shepard, III, President of the Yankee Network,
T/hose Northeastern stations have formed the backbone of the
Coughlin hookup of 40-odd radio outlets, has taken the lead in
demanding modification and has stated that he will renew the
series even if he has to give the time to Father Coughlin.
So far, NAB officials said, only four formal resigna¬
tions have been received since the Code controversy arose. Three
of these are OTOed by Elliott Foosevelt and his wife, and the
fourth is assiciated with his interests. Young Roosevelt, when he
announced his intention of quitting the NAB, said ten members of
the Texas network would resign as he did.
NAB Directors, while encouraged by the general endorse¬
ment of the Code by James L. Fly, Chairman of the Federal Communi¬
cations Commission, have been disturbed by attacks from other
quarters. Elliott Roosevelt criticized it in a broadcast from
Windsor, Ontario, and David Lawrence, Washington editor, assailed
it in a national hook-up over the week-end. (See stories else¬
where in this issue).
The Committee on Industrial Organization, on the basis
of action taken at the recent national convention, is advising its
member unions to challenge the NAB Code and demand the right to
purchase time for the discussion of controversial issues.
Holding that the Code ban on paid controversial broad¬
casts is an Infringement of free speech, the C.I.O. contends that
the provision can be used to preclude all labor issues. Labor
organizations, its officials insist, should have the right both to
ouy time and demand free time in certain cases if the discussions
are 'in the public interest”.
2
A legal question also hes arisen to bother the NAB
Directors. Mr. Shepard hps made the point that because the Code,
which became effective October 1, sanctions existing contracts up
to a year from that date, Father Coughlin carriers may continue
at least until October 1, 1940, without violating the Code.
Fear that failure to observe the Code provisions might
result in punitive action by the FCC, was expressed in some
industry quarters. Recalcitrant stations, it was thought might
be regarded as vulnerable to attack before the FCC which could
take judicial notice of their purported failure to observe Code
provisions in applications dealing with their facilities or in con¬
nection with license renewals.
At the FCC, however, no basis could be found for such
observations or rumors. While NAB President Neville Miller and
Public Relations Director Ed Kirby have discussed the Code provi¬
sions with members of the FCC, they pointed out they did so simply
to keep key officials informally advised of steps being taken by
the industry to improve operating standards.
XXXXXXXX
ELLIOTT ROOSEVELT SEES V/AR OVER NAB CODE
Elliott Roosevelt, discussing what he called a "great
battle" developing in the radio industry over a recent Code rul¬
ing of the National Association of Broadcasters, said in a broad¬
cast talk Saturday night that in America "today, more than ever,
outspoken free speech should be encouraged". His broadcast came
from Windsor, Ontario, Canada.
Mr. Roosevelt referred to the NAB ruling which forbids
purchase of radio time for discussing "controversial issues",
except under certain conditions, and said;
"Many broadcast station owners are up in arras over its
provisions and claim that it is a flagrant example of censorship
that throttles free speech and is the opening wedge for the Govern¬
ment to step in and take over this job.
"When that occurs, broadcasting in this Nation will become
nothing but a propaganda tool. The Texas State network has ex¬
pressed its disagreement with the Code and has stated any one can
buy time on its facilities to discuss any controversial issue. "
Mr. Roosevelt, who spoke over Windsor Station CKLW, said
that the Rev. Charles E. Coughlin, Royal Oak (Mich. ) priest, was
"welcome" to purchase time on the Texas network. Father Coughlin
of late has been devoting his Sunday radio hour to the neutrality
question as it involves the arms embargo.
"Officers of the Texas radio network have stated that
Father Coughlin is welcome to purchase time to discuss anything he
pleased on our facilities just so long as he observes the Consti¬
tution of the United States, which means that he does not foster
racial or religious hatred or advocate a change in any way of our
form of Government", Mr. Roosevelt said.
YYYYYYYYY
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FCC MAKING STUDY OF COMMUNICATIONS FACILITIES
The Federal Communications Commission is investigating
communications facilities in anticipation of a national emergency,
James L. Fly, Chairman, said this week.
The needs of governmental agencies, especially the armed
services, are being examined in the light of plans for national
defense, Mr, Fly said.
While Mr. Fly denied that the program was being under¬
taken as a direct result of any immediate developments in world
affairs, he said that it was part of the national defense scheme.
He likened it to the work of the War Plans Divisions of the War
and Navy Departments, where new situations constantly are visual¬
ized and plans made to meet them.
The whole program also is being studied in connection
wjth a review of the laws which might be applicable, and if there
are any obstructions found to any plans, with the view, either to
get the legislation ready now for introduction when the emergency
arises, or, insofar as possible, clear the air promptly.
The President is given broad po’^ers over communications
in time of a national emergency, or even to enforce the neutrality
laws. He may take control of stations and amend or issue new
regulations to suit the situation, but, of course, with a provi¬
sion that if the Government does exercise control, there must be
just compensation. While there is authority to take the stations
over for control, or even to close them and remove their apparatus,
there is nothing which would give the Government the right to put
censors in their offices. At this time there is no way in which
the Government can lawfully inspect messages going out of the
country over the radio or cable communications.
The task, under present conditions, would be a gigantic
one, it was pointed out by Chairman Fly, because many of the mes¬
sages are in code and there are about 60,000 such messages every
24 hours in New York City alone. It would take hours, and perhaps
days, it was pointed out, for the experts to break down the codes,
and even when broken down, maybe the users would have shifted to a
new one.
Of coui’se, it was explained, in time of war, codes might
be prohibited to private individuals and firms which would lighten
but not entirely remove the problem, because there are codes us¬
ing even plain language, with even the text reading smoothly, and
these are declared to be the most difficult to break down, because
they are hard to recognize as code.
Efforts are being made to ascertain the needs of all
departments of the Government - this is particularly true so far
as services are concerned - so that a program can be worked out
which would^ immediately become effective if necessary. With this
the Commission is seeking to determine what may be expected of
the communications industries under this system to acquaint them
with the governmental needs.
xxxxxxxx
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10/31/39
SENATE MAY GET AMPLIFYING SYSTEM
A survey of the possibilities of installing an amplifi¬
cation system in the staid United States Senate chamber is being
conducted at the Capitol although officials decline to discuss
it at this stage.
Complaints that visitors in the galleries failed to hear
some of the words of distinguished Senators during the neutrality
debate induced the study, it is understood. The House, equipped
with "mikes", had no such complaints.
The Senate chamber offers more of a practical problem
than the House, however, because Senators talk from their seats
of v;herever they happen to be standing, whereas members of the
House speak from the "well”, or just in front of the Speaker's
desk.
Recalling the ire with which several veteran Senators
greeted the dial telephone, Capitol officials are apprehensive of
the fate of "mikes" if they are placed on every senatorial desk.
XXXXXXXXXX
CROSLEY TO SELL TIME ON NSW S-W STATION
With the completion in November of its new 50,000 watt
international station, Station WLWO, owned by the Crosley Corpora¬
tion, Cincinnati, Ohio, will sell time on the station pursuant to
the new rules governing international broadcasting stations per¬
mitting sponsorship. Formerly known as W8XAL, the station will
begin operation with entirely new equipment and will beam its
signals toward the South American market.
The station management and operation, along with the
pioneering work in time sales, will be under the direction of James
D. Shouse, Crosley Vice-President in Charge of Broadcasting, and
Robert Dunville, General Sales Manager.
The signal will be concentrated along the east coast of
Brazil, Uruguay and Argentina, directed toward such cities as Rio
de Janeiro, Buenos Aires, Montevideo and Sao Paulo. It is esti¬
mated that WLWC will transmit more than 100,000 watts in this di2>-
ection. A rhombic antenna concentrates the station' s full output
in a small beam, making it possible to deliver a signal strength
of more than 600,000 wa.tts at any given point, it was stated.
The station will operate on six frequencies, which will
be chp.nged throughout the day so that the compara.tive signal
strength always rea.ches the east coast of South America. The
frequencies are 6060; 9590; 11,870; 15,270; 17,760, and 21,650 kc.
XXXXXXXX
- 5 -
THREE CONGRESSMEN CROSS WORDS AT FCC HEARING
^ FCC hearing room looked like the House of Representa-
tives chamber ond day last week when three members of Congress
tangled in oral arguments involving pending applications of their
respective constituents.
V developed after Representative Kent
Keller (D. ,111. ) appeared as co-counsel in behalf of the applica-
Postmaster of Herron, Ill., for^a new
cal station there on 1310 kc. The Federal Communications Com-
mission had granted the application last July but vacated it on
motion of KFVS, Cape Girardeau, Mo., and WEBQ, Harrisburg, Ill
appllStions » which had mutually conflicting
^ ^ Washington counsel for Mr. Lyerla,
general reargument and had introduced Representative
counsel for the other two stations, pre-
c!vdl B n Representative ^
d' ^ extolled the virtues of WEBQ,
KFVS Orville Zimmerman (D. ,Mo.), followed suit for
kept* "with! ?^thP brother Congressmen had not
Of d^foSS^wirhouravS!;"
xxxxxxxx
PRESIDENT LAUDS RADIO IN SPEECH TO FORUI^i
Rooqpvpif as a transmitter of ideas was praised by President
Roosevelt last week in an address transmitted from Washin'-^ton to
the Herald-Tribune Forum in New York City. vvasnin^ton to
Conotituuof 0?
the usefulneL^of^tL^forL®"^ greatly increased
criminate nvpr* fho ■» listeners heve learned to dis-
truth ^ the air between the honest advocate who relies on
aSeaUnv to®?he“^ dramatic speaker ^ho ll clever in
ppealing to the passions and prejudices of his listeners.
recent weeks in tL^pret2nt?tioi^n?^* reporting during
the press and the i, ^ international subjects, both in
quets to tS ma lorftv n; ^ bou-
iod of grave anxietw^both^R*^ prtss and the radio. Through a per-
and propaeandp tried to discriminate between fact
Slve their readers anf
has worked so well in chronicle of developments. This
honed for wlshlns for mo^f ^ reporting that one may be par-
If Is a good rSf fn on^ r domestic news: If
good rule in one why is It not a good rule in the other?"
XXXXXXXXXX -6-
10/31/39
MUSICIAN CONTRACTS TO BE DISCUSSED IN NEW YORK
Preliminary negotiations for the revision, extension,
or renewal of contracts bet\'ffeen organized musicians and the broad¬
casters will be discussed this week at a conference between spokes¬
men of the American Federation of Musicians and Independent Radio
Network Affiliates.
With the present contracts expiring on January 17 for
network affiliated stations, the IRNA Board will convene in New
York Wednesday, November 1st, preparatory to its meeting with
AFM the following da.y. Contracts of non-network independent sta¬
tions with AM locals, following closely the terras of the network
affiliate agreement expire in September.
The IRJv’A Executive Committee, after holding its prelim¬
inary session, will meet with the labor experts of the major net¬
works. Under the existing contracts, the networks share in defray¬
ing cost of hiring musicians for stations, based on a stabiliza¬
tion fund through which they contribute to payments made by affil¬
iates.
The IRIJA Executive Committee also will meet with a group
representing National Independent Broadcasters, Inc. , headed by
former Federal Radio Commissioner Harold A. Lafount, on the same
problem. The contract evolved by independent stations differs
only sli^tly from that entered into by the affiliated stations
through IRNA.
xxxxxxxx
ADVERTISERS TOLD RADIO AUDIENCE HAS GROWll
The Association of National Advertisers, who collectively
foot the bill for this country's radio entertainment, were told
that the radio audience has grown since the outbreak of the
European war when they met last week in Hot Springs, Va.
The growth, it was explained, was not due so much to
extra sales of receivers as to the fact that set-owners are listen¬
ing more often to keep abreast of international developments.
At the same time the advertisers were reported as being
worried at the increasing cost of ra.dio talent and the trend
toward unionization in the industry. Neville Miller, President of
the National Association of Broadcasters, addressed the convention
on the work of the trade orga.nization in advertising research.
xxxxxxxxxx
7
10/31/39
DAVID LAWRENCE ASSAILS NAB CODE OVER CBS
As one of the most outspoken critics of the Code of the
National Association of Broadcasters, David Lavrence , distinguished
editor and columnist, took the air Sunday to answer Neville Miller,
President of NAB, and amplify his opinions on the ban on sponsored
broadcasts of controversial topics.
Edgar Bill, Chairman of the Code Compliance Committee of
the NAB, is scheduled for a broadcast next Sunday to answer Mr.
Lawrence. Mr. Bill will be heard from Peoria, Ill.
Some of the highlights of Mr. Lawrence's address follow:
"The NAB says that it will gladly give 'free time' for
the discussion of controversial questions. But how much *free
time'? There we encounter the true censorship difficulty. Occa-
sionally — but not regularly and 'when facilities permit', there
will be ' free time ' . The opportunity to have a regular week-by¬
week program on a controversial subject is, therefore, to be
denied hereafter to any group or organization or citizen. You can
buy time for a series of programs to sell toothpaste, but not to
sell ideas.
"The reason given by the NAB is that it is desired to
prevent the wealthy from hevlng too much time on the air. At first
glance, this sounds plausible. But let us examine the merit of the
contention. In the first place, the NAB permits itself a conspicu¬
ous exception. It will allow the sale of time for political broad¬
casts during campaigns but conveniently forgets to equalize the
financial handicaps of the political party with the lean purse as
against the political party with the fat purse. If unequal finan¬
cial capacity is to be the measure of self-restraint between cam¬
paigns, should it not also be applied at a time when political
parties, well supplied with funds, seek to exploit the people or
that part of the electorate which is sometimes referred to as the
'underprivileged' ?
"Again while we are on the subject of finances, if the
radio station owners are solicitous about financial inequality,
will not some day the question be asked them why they per.mit huge
corporations and big businesses to buy all the time they want to
sell their products while the competing businesses not so fortu¬
nate must face that competition in sales? Was it not Thurman
Arnold, Assista^nt Attorney General of the United States, who rais¬
ed this very issue recently as to the alleged unfairness of large
sized capital in using huge advertising appropriations to keep the
little fellow from successful competition? Have we forgotten
Tugwell doctrine written into some of the codes of the
NRA days whereby advertising v^as to be limited by concerted action
of the code members?
"Clearly vje draw ourselves into the ensnaring web of col-
lt;ctiyism when we start equalizing financial and economic oppor-
t^ities and it is transparently fallacious to say that an organiza¬
tion with an idea to sell — as, for instance, a labor union seek-
ng to buy time to carry on a campaign for better wages for its
members — is not engaged in selling an economic or material thing.
8
10/31/39
"Radio is under no legal or moral obligation whatsoever
to hold the scales even between those who can or cannot afford to
buy time for any lawful purpose. Nor is there such a grave d8.nger
of undue influence in a buy-as-you-please policy as you may have
been led to believe. I can remember political campaigns, for
example, in which one political party paid huge sums for newspaper
advertising while its opponent did not, and instances also where
all the newspapers in a given city backed a particular candidate
and yet neither of these advantages affected theoutcome of the
election even though there was at the time no medium like radio
with which to appeal for votes.
"I do not believe we need fear the people’s capacity to
discriminate between sound and unsound argument irrespective of
the fact that the actual quantity of words may be greater in the
presentation of one side than the other .
"Now it is claimed that if the radio stations sell time
on the air the controversialists will monopolize the air. This
seems to me more of a pretext than a reason because we all know
that a balanced program can be arranged by any station Just as is
the case with the issuance of a newspaper which keeps a general
ratio between the amount of news matter and advertising.
"The radio business is a form of publishing. The radio
station itself can limit the amount it will accept from adverti¬
sers for a given series of programs and yet be above criticism.
American nei^spapers confronted often by mechanical problems at the
last moment of going to press lay aside some paid advertising.
Also there are newspapers which do not accept an excessive quantity
of what is termed political paid advertising and in some instances
none at all is accepted. But, in the main, newspapers are careful
not to bar anybody who conforms to the laws of libel and they do
not discriminate between users nor do they Join with other news¬
papers across the country in a national boycott of particular kinds
of lawful advertising. . .
"The new code adopted by the NAB is confessedly created
to prevent governmental regulation of radio programs. In my
Judgment it will bring on radio regulation by Government faster
than any other single circumstance through the action of aggrieved
parties seeking redress. For history shows that so-called volun¬
tary efforts to exercise police power in an- industry have invar¬
iably resulted in public clamor to have a ’disinterested’ institu¬
tion do the regulating. Usually, Government as the representative
of all the people and the theoretical custodian of their delegated
power, offers itself as the ’disinterested’ institution, .
"What then is the answer? We have evolved the answer
through centuries of time with respect to the press. Let each
owner decide for himself what he shall permit to be published. If
he abuses that privilege, the listener can turn off the radio sta¬
tion and move his dial to another station Just as the reader can
decline to subscribe to a publication he dislikes. Stations which
put on undesirable programs involving bad taste or unfairness in
any respect as a chronic policy lose listeners rapidly and that
means a loss of advertising potentiality .
9
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10/31/39
"Let each and every radio station management be the Judge
of what it shall not carry on its programs and let no group of
ov.Tiers attempt in concert to foist on the American people a form
of censorship of radio. The only censorship should ever toler¬
ate is the censorship imposed by the listeners themselves. For in
any other direction lies the end of precious civil liberties and
the introduction of government control over all mediums of communi¬
cation whether spoken or written.
'•It is not too late for the NAB to modify its course. It
should withdraw from its code those provisions relating to the pur¬
chase of its facilities by public organizations and offer its wares
in a balanced relationship between information, argument and enter¬
tainment which Individual management, exercising good judgment,
can easily achieve. ”
XXXXXXXX
TWO STATIONS GRAIJTSD FOR ONE CITY
The Federal Communications Commission last week entered
its final order granting the application of Saginaw Broadcasting
Company for a new station in Saginaw, Mich., to operate on 1200 kc . ,
100 watts night, 250 watts, local sunset, with specified hours of
operation, and the application of Gross and Shields for a new sta¬
tion in Saginaw to operate on 950 kc. with 500 watts power, daytime
hour. The order is effective November 1, 1939.
The FCC also granted the application of Spartanburg
Advertising Company for a new station in Spartanburg, S. C. , to
operate on 1370 kc. wjith 100 watts at night, 250 watts until
local sunset, unlimited time.
XXXXXXXX
BRO.ADCAST MUSIC PLAN IS COtCPLETED
With its plan of organization completed, the new
$1,500,000 Broadcast Music, Inc., subsidiary of the National
Association of Broadcasters, hopes to begin active operation as
soon as formalities of the organization are cleared through the
Securities and Exchange Commission.
A meeting of the Broadcast Music Board was scheduled
for New York today (Oct. 3l)f*/tlie organization plan was to be
approved in final form. President Neville Miller reported prior
to the meeting that response from the industry has been encourag-
"that pledges made at the special convention on copyright
in Chicago September 15 for the $1,500,000 stock would soon be
+ h expected a series of NAB regional meetings, in
he 17 districts into which the country is divided, will be arrang¬
ed for this purpose.
XXXXXXXX
- 10 -
4^ . t n
10/31/39
TRADE NOTES
The Electrical Division of the U. S. Bureau of Foreign
and Domestic Commerce has an inquiry from a Commercial Attache
for names of manufacturers of pocket radio sets with headphones
for use by foot patrolmen. Firms making such equipment are request¬
ed to communicate with the Division, in order that an up-to-date
list can be prepared.
The Federal Trade Commission has scheduled a hearing
involving the Automatic Radio Manufacturing Company, Inc., Boston,
and others, for Wednesday, November 1, at 10 A.M. , Room 410,
Federal Building, Buffalo, N. Y. Unauthorized use of well-known
trade names is the complaint. Trial examiner, Lewis C. Russell;
Carrel F. Rhodes, Commission attorney.
The Metropolitan Life Ins-urance Company Saturday filed
suit in Federal Court of New York, charging the New Jersey Broad¬
casting Corporation with making defamatory statements in the
Italian language. The insurance company asked for $250,000 damages.
The plaintiff alleged that the radio company, operating through
Station WHOM, made false and derogatory statements in a series of
broadcasts made at intervals between January 1 and August 29. In
the first of these, the complaint asserted, the Metropolitan com¬
pany was accused of distributing pamphlets that reflected on the
character of a man who figured in the broadcasts. The broadcasts
continued despite warnings, it was alleged.
Akron, Ohio, labor leaders said last Saturday night they
had asked the Federal Communications Commission to "take action"
in connection with cancella. tion by Radio Station WJW of a weekly
broadcast contract with the Akron Union Industrial Council (C.I.O.).
S. H. Dalrymple, Council spokesman, asserted the station cited
the new Code of the National Association of Broadcasters banning
"controversial material".
The monthly index of direct-mail volume in the current
printer’s Ink shows an increase of 0. 5 percent over 1938 for
September. Cumulative volume for nine months is 3.6 percent better
than in 1938. The index of radio advertising in September was
up 28.5 percent over 1938, but off 6.1 percent from August. For
nine months the index records an increase of 15. 5 percent over 1938.
XXXXXXXX
11 -
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EDITOR HITS RADIO IN ASCAP ROW
Following are excerpts from a recent editorial appearing
in the Chicago Daily News and subsequently copied and circulated
by American Society of Composers.
"Why are the radio interests so determined to deprive
song writers and song publishers of reasonable recompense for the
products of their creative talents and industry? In some half
dozen states in recent years legislators have been prevailed upon
to enact so-called Santi-raonopoly ' statutes against the American
Society of Composers, Authors and Publishers, more familiarly known
as ASCAP. ASCAP is an unincorporated, voluntary association of
creative artists and publishers formed many years ago to safe¬
guard the rights of its members under federal copyright laws. . . .
"Yet even among broadcasters there seems to be a dawning
realization of the futility of an effort to nullify federal copy¬
right laws througii state legislatures. Perhaps this explains a
movement begun by broadcasters at a recent convention in Chicago.
"Enthusiastically backed by nearly every radio station in
the country, this looks toward the establishment of a radio-con¬
trolled rival for ASCAP. Such an organization would eventually
give radio power to deal dictatorially with a carefully controlled
clique of publishers, composers and authors. Happily, this effort
seems as surely foredoomed as all previous attempts to crush ASCAP.
ASCAP has done more than merely safeguard the economic rights of
its members. It has served to educate them to the nature and
importance of those rights. The only manner in which the new
organization might grow into a real rival for ASCAP would be through
assuring its members greater security and more adequate recompense
for their talents. "
XXXXXXXX
KDKA READY TO OPEN 50 KW. STATION
Westinghouse Station KDKA, Pittsburgh, will go on the air
next Saturday from its new 50,000-watt transmitting station at sub¬
urban Allison Park, 19 years and two days after it broadcast the
world’s first scheduled radio program over a puny 100-watt trans¬
mitter.
In striking contrast to ths.t first fragile, adolescent
equipment vdiich included a wire aerial fastened to a factory
chimney, the new transmitter is equipped with banks of sleek, power¬
ful transformers, streamlined cabinets concealing all radio
apparatus, a sound-proof master control room, and a 718-foot
antenna tower.
Although for the present the new transmitter station
will send out only the standard broadcasts of KDX/^, it is designed
ultimately to assume the broadcasting of short-wave programs over
the Westinghouse international station WPIT (formerly W8XK) , which
is now operating at Saxonburg, and to inaugurate noise- free experi¬
mental short-wave pi'X)grems over a "pickaback" aerial #iich will
perch atop the 718-foot standard broadcast tower. Standard wave
ength broadcasting facilities of the station have been transferred
rom Saxonburg to Allison Park in order to provide more powerful
adio reception for Pittsburgh' s metropolitan area, Walter C. Evans,
■anager of the Radio Division of Westinghouse, explained.
xxxxxxxxxxx
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
raiiEiiiiiwi
I iit NOV 6
INDEX TO ISSUE OF NOVEMBER y, 1939.
New Radio Chain Formed With Elliott Roosevelt . 2
Civil Liberties Executive Defends NAB Code . 3
Public Service Held Basic Fhctor By FCC . 5
New U. S. Educational Program Scheduled . 6
Finch Gets Patent On Color Transmission Device . 7
Telephone Television Commercial In Germany . 7
Radio Telegraph Regulations Streamlined
FCC Watching Amateurs, F. D. R. Says .
Travelers Corporate Transfer Again Denied . 9
Radio May Move To Front Line Trenches . 10
Patent Granted For Pladio-Controlled Bomber . 10
Trade Notes . . . . . 11
Zenith Passes 12,500 Set Daily Output . 12
"City Of Flint” Carried Winchargers, Claim Shows . 12
No. 1171
GO CO
1
1
NEW RADIO CHAIN FOR!;IED WITH ELLIOTT ROOSEVELT
Broadcasters and members of the Federal Communications
Commission were awaiting with keen interest this week complete
details of the organization of a new national network in which
Elliott Roosevelt, son of the President, was reported to have a
major role.
Conflicting versions of the developments at a confer¬
ence in Chicago left officials and broadcasters a bit confused
as early reports that young Roosevelt would hea.d the network were
denied subsequently. The last report was that he would not be a
member of the Board of Directors.
Nevertheless, it appeared that the Texas Radio Network,
which he does head, would be a part of the new network, and the
President's son was quoted by United Press as saying that he is
one of the stockholders.
Officials of the National Association of Broadcasters
were particularly interested in the Chicago activities because of
Elliott Roosevelt’s withdrawal from the NAB on account of the
Code ban on paid controversial broadcasts.
A stormy petrel in the broadcasting industry from the
time of his entry via Hearst Radio, Inc., Elliott Roosevelt
appears detennined to become a dominant figure in the industry^
Meanwhile, FCC officials are looking on in embarrassed silence
although Chairman Jajnes L. Fly, apparently after consultation at
the White House, indirectly criticized him for refusing to abide
by the Code.
The new network took the name of the Transcontinental
Broadcasting System and boasted that it might include as many as
100 stations with key outlets in New York, Chicago and Hollywood.
John T. Adams, of Fort Worth, Vice President of the
Texas Network, which Elliott Roosevelt heads, was elected Presi¬
dent of the organization. This election was interpreted by broad¬
casters that the President's son preferred not to be the nominal
head of the network because of possible embarrassment to his
father but nevertheless would be "the power behind the throne".
William A, Porter, of Washington, a Director a.nd Vice-
President of the chain, said that young Roosevelt had been "active
in organizing the Transcontinental System but would not serve on
the Board of Directors or as an officer".
Previously Roosevelt was quoted as saying that he was
one of seven stockholders engaged in organizing the network.
2
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He said the new chain would operate in competition with
the Columbia Broadcasting System, the National Broadcasting Com¬
pany and the Mutual Network.
The network w?.s Incorporated in Wilmington, Del. , he
added, as the Transcontinental Broadcasting Company, with seven
stockholder-directors were holding their first meeting in Chicago.
The stockholders, he said, were himself, H. J. Brennan of Pitts¬
burgh, John Roberts and Clarence Crosby, both of St. Louis; Jack
Stewart and Thomas Evans, both of Kansas City, and Lester E. Cox,
of Springfield, Mo.
Mr. Roosevelt explained that all the stockholders except
himself were Directors of the new corporation and that he was
represented on the Board by John T. Adams, with whom he was
associated in the Texas Network.
"The Texas Network is a part of the new chain, but I do
not want to give the impression that I am the orga.nizer of the
chain", he stated. "I am, as operator of radio stations, only a
one-hundredth part of it. "
Mr. Roosevelt said the chain would include a few sta¬
tions of 50,000 watt power, but the majority would be of 5,000
watts.
Earlier young Roosevelt wa.s reported to have broken with
the Mutual Broadcasting System, with which his Texas Network is
affiliated and over which he broadcasts his own ' comments, although
the regional's contract was said to have a year and a half more
to run.
XXXXXXXX
CIVIL LIBERTIES EXECUTIVE DEFENDS NAB CODE
While Directors of the National Association of Broad¬
casters were meeting in Chicago to consider developments in the
row over the NAB Code, Quincy Howe, an executive editor of Simon &
Shuster, New York publishers, and Chairman of the National Council
for Freedom from Censorship, an affiliate of the American Civil
Liberties Union, spoke in defense of the Code over an NBC-Red
hookup.
Asserting that neither the union nor the council ever
advocated "complete, unrestricted, absolute freedom of speech",
Mr. Howe said that the NAi? action was the alternative to govern¬
mental censorship and "cannot fail to meet the full approval of
all Americans who dislike censorship".
"Insofar as the Code bears upon the issues of free
speech and censorship", he said, "it is one of the most welcome
developments we have seen in the United States in a long time.
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"Theoretically'', he added, "any private self-regula¬
tion is to be preferred to government regulation since government
regulation is censorship. I can, of course, imagine circum¬
stances under which a government censored radio might be prefer¬
able to self- regulated radio, but those circumstances would arise
only if the radio industry became not only utterly corrupt, but
utterly blind to its own interests. As long as the radio industry
remains as honest and competent as it is today, there can be no
doubt that the present system of self- regulation, especially if
the principles of the present Code are maintained, will be in¬
finitely preferable to a radio industry censored and perhaps
finally controlled by the government.
But censorship is only half the story, and the negative
half at that. The radio industry in the United States - like all
other industries charged with the communication of ideas - cannot
rest content merely because it is not censored. Indeed, the radio
industry - and I think this applies Just as much to other indus¬
tries - cannot continue to prosper, cannot continue to enjoy its
present freedom from censorship, cannot go further along the path
of self-regulation unless it rises to its responsibilities and
opportunities. The new Code of the National Association of Broad¬
casters gives the radio industry exactly such an opportunity.
There are a few minor points that might, I think, be improved and
perhaps they will be in time, but by and large there is no excuse
under the Code why the radio industry cannot contribute even more
than it has in the past to the free exchange of ideas among a free
people.
"Let me be specific. There is one feature of the Code
which has stimulated a lot of controversy and which bears directly
on this question of free speech. It is the provision that no time
shall be sold for the discussion of controversial issues except
for the sale of time to political parties during election cam¬
paigns, There are two reasons for this provision in the Code -
time and money. As I pointed out before, there are only twenty-
four hours in the day. A newspaper can always publish an extra, a
publisher can issue as many books as he pleases, magazines fre¬
quently contain supplements. The radio, on the other hand, works
within the iron framework of twenty-four hours a day - and actually
considerably less than that since some hours are much more popular
with listeners than others. Furthermore, if all this limited
amount of time were for sale, it could all be bought up by anyone
who had the money to do so and who wanted to use that time to set
forth his ideas to the exclusion of all other ideas.
"To prevent such a. state of affairs from arising, the
Code forbids any discussion of controversial issues on paid time
and confines these issues entirely to the time that every station
must grant, under the law, to sustaining programs. Furthermore,
the Code provides that these sustaining programs shall give a fair
hearing to more than one side of all controversial issues. To
call this procedure censorship is to show one's ignorance of what
censorship means. Furthermore, to advocate the sale of time to
discussions of controversial issues is to run the risk of turning
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11/3/39
over all the commercially sponsored programs to those aspects of
controversial subjects that the people with themost money want us
to hear. And if there is one thing worse than government censor¬
ship, it is censorship by a small wealthy class. '•
XXXXXXXX
PUBLIC SERVICE HELD BASIC FACTOR BY FCC
Public service is the basic consideration in licensing
broadcast stations, the Federal Communications Commission declared
this week in adopting its Findings of Fact, Conclusions and Order,
denying without prejudice to the filing of a new application for
appropriate facilities, the application of Wendell Mayes, Joe N.
Weatherby and William J. Lawson, doing business as BroTO County
Broadcasting Co., for authority to construct a new radiobroadcast
station in Brownvjood, Texas, to use the frequency 990 kc., with
power of 1 KW, daytime only.
"The Commission's allocation plan", it explained, "is
not an attempt arbitrarily to limit the broadcasting facilities
of any community. It is a carefully devised plan, based on exper¬
ience, to attain the best and most comprehensive service possible
for the greatest number of listeners.
"The applicant proposes a station to provide regional
service and to be located in a comparatively small community to
serve that community and its trade area. If the application is
granted Commission Rule 3.25(a) precludes a later expansion of
service to include nighttime operations. Under the allocation
plan a community of the size here involved is normally provided
with a local or regional station assignment. Such an assignment
here, if feasible, could provide primary service to Bro^imwood and
to contiguous rural areas both da,y and night. It may be pointed
out that while a local station or a regional station of one kilo¬
watt would not provide a primary signal throughout the trade area,
neither would the assignment here requested serve that entire area.
"It is recognized that under some circumstances it may be
necessary to depart from the allocation plan in order to provide
primary service to some communities. Class I stations are designed
for use in rendering service to large numbers of people over exten¬
sive areas. The record is inadequate here as to the propriety or
need for operation on a channel occuped by Class I stations. The
record fails to show the facts regarding interference of any night¬
time service with the present secondary service of Station WBZ,
Class I station on the frequency requested. The record also lacks
evidence that an assignment is not feasible to a regional frequency
which might offer a possibility of night service at a later date
to the inhabitants of Brownwood and its environs. Applicants pos¬
sibly could have established the feasibility of a station on a
regional frequency. The ultimate and basic criterion of a decision
is neither the desire of the applicant nor the provisions of the
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Commission's allocation plan, but is rather the benefit to the
public to be served and the public generally. If some license is
to be issued, there is no apparent reason why Brownwood should be
deprived of the possibility of local full time service. Such
deprivation would be contrary to the interests of Brownwood. No
factors are shown in the record here which indicate that a depar¬
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interest of the community. On the record, the Commission cannot
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xxxxxxxxxx
NEW U.o. EDUCATIONAL PROGRMl SCHEDULED
Commissioner of Education J. W. Studebaker last week
announced that a new series of dramatized educational radio pro¬
grams showing the part women have played and are playing in every
phase of American life will soon be broadcast under the sponsor¬
ship of the U. S. Office of Education. Broadcasts will feature
lives of "unsung heroines" as well as contributions of famous
women of the Nation.
Titled "Gallant American Women", the half-hour radio
dramas will be heard at 2 5 00 E3T every Tuesday afternoon, begin¬
ning October 31, over the National Broadcasting Company's Blue
Network and affiliated stations. This series will be the twelfth
coast- to-coast network program of the Radio Division, U. S. Office
of Education, and will be based on 5 years' experience of the
Division. The broadcasts will be a continuation of 13 programs
aired this Summer under the name "Women in the Making of America".
"Gallant American Women" will be sponsored by the Office
of Education and the Women's Division of the National Broadcasting
Company, in cooperation with the Work Projects Administration.
Numerous women's groups are contributing to the development of
the series, among them the General Federa.tion of Women' s Clubs,
National Council of Women, American Association of University Women,
National League of Women Voters, Associated Country Women of the
World, American Horae Economics Association, Women's Trade Union
League, and the National Consumer's League.
The first program of the series was entitled "These
Freedoms", and dramatized the roles women have played in the
struggle for freedom of worship, assembly and speech, and other
civil liberties.
XXXXXXXXXX
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11/3/39
FINCH CETS PATENT ON COLOR TRANSMISSION DEVICE
William G. H. Finch, President of Finch Telecommunica¬
tions, Inc, , received a patent last week on his device for
electrical transmission of color picture. Mr. Finch's patent
(No. 2,177,247) explains that when color prints are sent separately
by wire, any misalignment or inaccuracy occurring during trans¬
mission causes color streaks and distortions when they are super¬
imposed to form the final print.
"The color reproductions produced by my present inven¬
tion bear very fine detail, and substantially all traces of streaks
and the scanning lines which make up the picture are toned out so
as to be unnoticeable ," Mr. Finch explains in his patent claim.
"A small three-dimensional effect occurs in the final colored
picture, due to some extent to the superposition of the three
translucent colored prints to form a substantial thickness. The
fine detail of the color facsimile permits enlargement thereof
to a much greater extent as compared to ordinary black- white
facsimiles, since scanning lines and extraneous marks are render¬
ed unnoticeable.
"Newspaper services are enabled by my present invention
to economically transmit to remotely scattered plants of their
organization comic strips, colored advertisements and colored
feature supplements for newspapers, colored copy for magazines,
and for other purposes. The transmission of such pictures may be
readily carried out over a telephone line without physical inter¬
connection thereto, and using conventional black-white facsimile
systems. The three colored prints composing the colored picture
may be received directly upon the sensitive film or may be dir¬
ectly engraved upon printing plates for the presses. "
XXXXXXXXX
TELEPHONE TELEVISION COMMERCIAL IN GERMANY
Several television telephone stations have been installed
in Germany on a more or less commercial basis, according to the
U. S. Bureau of Foreign and Domestic Commerce. In Berlin there
are four such stations and from any of these it is possible to
connect with either of the other three Berlin stations or by long
distance to Leipzig, Nuremberg and Munich, the report stated.
Town calls in Berlin can be made for 0.50 marks (pre¬
war value of mark about (US $0.40), while calls to Leipzig are
3 marks, Berlin to Nuremberg 4.20 marks, and Berlin to Munich
4,80 marks. If the party ca.lled has to be notified to report to
the television telephone station by the post office, there is an
ad^tional charge of 0.40 marks for calls within Berlin, and 0.50,
0.70 and 0.80 marks, respectively, for long distance calls. Hours
of service are from 8 A. M. to 8 P.M. daily.
While this system is still operating on an experimental
basis only, a demonstration was sufficient to prove that wonderful
progress has been made along this line, the American Commercial
Attache at Berlin stated.
XXXXXXXX
- 7 ..
11/3/39
RADIO TELEGRAPH REGULATIONS STREAMLINED
Simplification of rules and regulations governing the
licensing of radio companies handling public messages was
announced by the Federal Communications Commission this week.
Under the new streamlined system of licensing, effective December
1, 1939, less than 100 licenses will be able to take care of the
public service now performed by nearly 500 licensees.
Heretofore, it has been the policy to issue a separate
license for each frequency used in International service and
regard each such license as a separate station. This necessitat¬
ed the issuance of as many as sixty separate licenses for one
transmitting location.
Under the new rules, only one license will be issued
for any given transmitting location of this type of common
carrier. This license will specify all of the frequencies and
transmitters heretofore authorized on a number of licenses, and
will permit communication to any point now designated in out¬
standing licenses.
The new system of licensing will give flexibility of
operation and handling of such messages. The carriers will no
longer be required to submit routine applications which are
necessitated by seasonal changes and vaga.ries of radio-trans¬
mission which occur during the normal license period.
Other changes in the rules include the deletion of
those rules defining primary and secondary communication which
become obsolete under the improved system of licensing, submis¬
sion of a quarterly report of the volume of traffic transmitted
and received from any point of communica tion, and hours of use
of all frequencies.
XXXXXXXX
FCG WATCHING AMATEURS, F.D.R. SAYS
President Roosevelt disclosed this week that he has
discussed with Chairman James L. Fly, of the Federal Communica¬
tions Commission, plans for preventing belligerent nations from
using short-wave radio stations in this country to disseminate
secret information.
The FCC, he told his press conference, is checking
amateur stations to prevent this country being used as a base of
operations by any nation at war. This, he said, is as important
an activity as any other phase of a strict neutrality program.
XXXXXXXXX
— 8 —
;■ ? i.
11/3/59
TRAVELERS CORPORATE TRANSFER AGAIN DENIED
The Travelers Broadcasting Service Corp., of Hartford,
Conn. , was denied this week permission to effect an intercorporate
transfer involving its radio holdings. The action, which was a
reaffirmation of a previous denial, was taken hy the Federal Com¬
munications Commission after a rehearing.
The Travelers Broadcasting Service Corporation and the
Travelers Broadcasting Company had Jointly requested the Commis¬
sion's consent to assignment of license of radiobroadcast station
WTIC, the short-wave stations WIXEH, WIXLU, WIXO, WIXT, from The
Travelers Broadcasting Service Corporation to the Travelers Broad¬
casting Company.
After hearing before an Exajniner and oral argument
before the Commission, on November 1, 1938, the Commission denied
the application. A petition for rehearing was filed requesting
the Commission to set aside its decision and to reconsider and
grant the application on the basis of arguments set forth in the
petition.
Applicants contended that the benefits to be derived
from the transfer are summarized somewhat as follows:
1. All physical properties connected with broadcasting
will be owned by the same company which holds the license.
2. The proposed licensee will have a larger and stronger
capitalization.
3. The proposed licensee will have broader corporate
powers with which to develop the radio art.
Taking up the foregoing in order, the Commission finds:
The first purpose can be accomplished by a simple form
of conveyance to the present licensee.
The second point is not persuasive since the present
licensee will surrender its present cash balance of $100,000 to
the Insurance Comoany as a "liquida.ting dividend". The total
authorized capital stock of the new corporation is the same amount,
as shown by the charter, while the application itself and the
affidavit of C. W. Baker (Treasurer of the companies) attached to
the charter states that only $50,000 in amount is planned to be
issued. Were it to be assumed in any case that the cash position
of the licensee would be improved by the assignment, this again
could be accomplished by a simple arrangement with the present
licensee.
The third point, the need for broader corporate powers
is not readily apparent in the light of the broad experimental
activities of the station heretofore. Assuming this as a major
purpose, however, it can readily be accomplished by an amendment
of the charter of the present licensee.
Chairman Fly and Commissioner Payne did not participate;
Commissioner Craven dissented.
XXXXXXXXX
9
1
RADIO MAY MOVE TO FRONT LINE TRENCHES
Diplomatic negotiations now under way in Paris may
result in the placement of radio commentators at the Maginot Line
alongside the newspaper men, according to the State Department.
Ambassador William C. Bullitt has informed Secretary
Hull that the French Ministry of Information is considering a
proposal that radio be placed on a par with the press in covering
the v/estern front. All indications, he said, are that the request
will be granted.
The only fly in the ointment, it now appears, is that the
western front appears to be quieter than a side street in the
National Capital and may stay that way all Winter.
Harry C. Butcher, CBS Vice-President, originally took
the matter up with Mr. Bullitt via the State Department and author¬
ity was forthcoming for only NBC and CBS to dispatch correspond¬
ents to the front. This was with the understanding that MBS also
would be protected. Secretary Hull, however, pursued the matter
with the result that dispensation is now considered virtually
assured for all three networks.
While details have not yet been forthcoming, it is
hardly expected that actual pickups will be made from the front
but that the network commentators will wire their dispatches to
Paris and London from the Maginot Line.
XXXXXXXX
PATENT GRANTED FOR RADIO-CONTROLLED BOMBER
A remote-control system for guiding airplanes and releas¬
ing their bombs by radio was patented this week in Washington,
The patent was awarded to Joseph B. Walker of Hollywood, and it
reveals that one-third is assigned to Frank Capra, movie producer,
and another third to Sheldon K Johnson, both of Los Angeles County
With the invention, "pilots'* on the ground behind their
own lines could steer the radio-controlled planes by playing on a
"typewriter", and also release its cargo of bombs when it had
reached its objective. A feature of the invention is that garbled
or scrambled radio impulses a.re used to control the craft. By
garbling the impulses, interference by enemy radios is overcome,
according to the inventor.
At the ground station is a radio transmitter. Included
in the transmitter is a bank of keys corresponding to the letters
of the alphabet. By striking various keys different types of
impulses are set up. The impulses go to a radio transmitter. Here
they are garbled and then broadcast. On the radio-controlled
planes is a receiving set. It picks up the garbled impulses, un¬
scrambles them so that the impulse which, for exa.mple, controls
the motor for operating the rudder and ailerons, goes to the motor,
and the impulse for controlling the catch that releases the bombs
goes to the magnet that opens the catch.
XXXXXXXX
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11/3/39
TRADE NOTES
Gross billings for time on the Columbia netrjork — prior
to deductions for agency commissions and time discounts to sponsors
totaled $3,366,654, during October, 1939. The October figure
brings the ten-month cumulative total for 1939 to $27,532,088,
A secret election by employees of the Camden plant of
the RCA Manufacturing Company was ordered this week by the National
Labor Relations Board to determine whether a majority favors the
American Ftederation of Labor or the Congress of Industrial Organi¬
zations as collective bargaining agent. The plant is operating
under a contract with a local of the C.I.O.’s United Electrical
Radio and Machine Workers Union of America, established there
since a violent strike in the Summer of 1936.
The third Byrd Antarctic expedition will not be without
mail from home during its long stay in Little America, for arrange¬
ments have been made whereby General Electric* s powerful short¬
wave transmitter in Schenectady will again send letters and mes¬
sages from friends and relatives, just as was done on the two
previous expeditions to the Antarctic.
This mailbag service to Admiral Byrd and his men will be
inaugurated on Friday night, December 8, by international broadcast
station WGEO, formerly 1(72XAF, operating on 31.48 meters or 9,530
kilocycles, and will continue every two weeks until the expedition
returns. The time will be 11 to 11:45 p.m. , EST, which, because
of the difference in time, will be 4 to 4:45 in the afternoon at
Little America.
Effective January 1, 1940, Station WTMA, Charleston,
S. C. , will become affiliated with the National Broadcasting Co.,
replacing Station WCSC in the same city. WTMA broadcasts with
250 watts power on a frequency of 1210 kc., and is licensed for
unlimited time. It is operated by the Atlantic Coast Broadcasting
Company, owned by Y. W. Scarborough and J. W. Orvin. The sta.tion
will be affiliated with the NBC-Southeastern Group on an EST
schedule .
_ Radio Station WJW, Akron, said this week that a weekly
voice of labor" program r-p s canceled after "authorization" by
the National Association of Broadcasters. Sherman H. Dalrymple,
President of the United F-ubber Workers (C.I.).), on behalf of the
Akron Industrial Council as sponsors of the program, attacked the
cancellation as "an unwarranted and dictatorial invasion of our
rights as citizens" and appealed to the Federal Communications
Commission. The C.I.O. paid WJW $17 for the fifteen-minute program
xxxxxxxx
- 11 -
. \‘ V
11/3/39
ZENITH PASSES 12,500 SET DAILY OUTPUT
Zenith Radio Corporation has passed a production of
12,500 radio receivers per day, according to Coraradr. E. F.
McDonald, Jr., President.
"This is a mass production record which we have been
gradually building up to and has never before been equalled in
the history of radio manufacturing", he said. "October just fin¬
ished represented the largest number of radio receivers ever
shipped by Zenith in a single month. Even with this enormous
production we will be unable to fill our back orders by December
1st. Because of the European situation the interest in and demand
for short-?7a.ve receivers to listen to Eurone direct is increasing
daily. »
XXXXXXXXX
"CITY OF FLINT" CARRIED WINCKARGERS, CLAIM SHOWS
Composition of part of the cargo carried by the "City
of Flint" was disclosed by Commander E. F. McDonald, Jr. , Presi¬
dent of Wincharger Corporation, Sioux City, Iowa, that a claim
for insuracnce on a large consignment of rinchargers to the Irish
Free State had just been received. This claim came in the form
of a cable from Kelly & Shield, Dublin, Irish Free State representa¬
tive .
The winchargers aboard the "City of Flint", which are
electric generators equipped with wind propellers used to make
electricity from the win*d where po^^er lines are not available,
were destined for installation in air raid shelters throughout
the neutral country of Eire, in order to assure a loca.l source of
electric light in case power stations are put out of commission.
This type of illumination is imperative in air raid shelters
because candles, gas, and ooen flame lamps consume valuable oxygen
which is not the case with electricity.
These wind driven electric generators are extensively
used by the United States Forestry Division, the United States
Lighthouse Service, the Indian Service - Department of Interior,
Civilian Conservation Corps and farmers generally in unelectrified
areas where power lines have not penetrated. Their use in air raid
shelter illumina.tion is a new development.
xxxxxxxx
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Heinl Radio Business Letter
2400 C.VLIFORNIA STREET
WASHINGTON, D. C.
“ NOV 3 133
1
... —1, _
A
INDEX TO ISSUE OF NOVEMBER 7, 1939.
Shepard Sticks By NAB; Seven Stations Quit . 2
Radios Named In U. S. -Venezuela Trade Treaty . 3
Musicians Ask Another Boost From Broadcasters . 4
Radio Exports Rise And Fall In September . 5
Radios Among Noiseraakers That Annoy Hotel Guests . 5
WLW Case Loses Last Appeal For Super-Power . 6
World Series Basis For New Monopoly Inquiry . 6
FCC Hearing Room To Be Streamlined . . .7
First "Staticless" Network Planned By Shepard . 8
''Pro-Nazi" Stations Reported Near Border . 9
Radio Amateurs Handle Messages After Va. Snow . 9
Trade Notes . 10
FCC Proposes U. S. Pay Higher Telegraph Tolls . 11
RCA Reports Quarterly Profit Increase . 11
Radio Making Notable Progress In Italy, U. S. Leams . 12
Trustee Appointed For Majestic Cor^Doration . 12
No. 1172
n
i
1
November 7, 1939.
SHEPARD STICKS BY NAB; SEVEN STATIONS QUIT
With John Shepard, III, owner of the Yankee and Colonial
Networks, pledged not to sell radio time to Rev. Charles E.
Coughlin, officials of the National Association of Broadcasters
returned to Washington this week from the Directors meeting in
Chicago more confident of industry support of the Code ban on
sponsored controversial broadcasts.
The NAB issued a statement attributed to Mr. Shepard
stating that he would give time to Father Coughlin but would no
longer sell him the time, thus coming within the provisions of
the Code. As Mr. Shepard's Colonial Network fonns the nucleus
of the Coughlin network, NAB officials felt that the split will
not be as serious as at first feared.
Four more stations, however, resigned because of the
NAB Code. Ralph B. Atlass, of Chicago, withdrew Station WIND,
according to the NAB and G-ene T. Dyer, of Chicago, took out
Stations WCBD and WSBC. A fourth Texas network station also
resigned under Elliott Roosevelt's influence.
Meanwhile, Edgar Bill, Chairman of the Code Maintenance
Committee, came to the defense of the Code in a radio address
made from his home station at Peoria, Ill. The Code, he insisted,
"far from curbing freedom of speech" actually "promotes freedom
of speech". The policy of restricting controversial broadcasts
to sustaining programs, he said, has been tested for several years
on the major networks.
"How does it work?" Mr. Bill, President of WMBD, asked.
"Well, during the recent discussion of the arms embargo repeal,
this network (CBS) gave time for eighteen talks for repeal,
twenty against repeal and three non-partisan. The amount of time
was four hours and thirty-five minutes each, both for and against
repeal and forty minutes for the non-partisan speakers. During
the Supreme Court battle, this network gave time for twenty-one
speakers on each side of the question, or a total of forty-two
speakers. Last Fall this network gave time for a series called
'Political Party Addresses'. Six Democrats and six Republicans
each had periods of free time.
"One of the best examples of this policy is the present
series of discussions of our Code. The facilities of a great net¬
work and its stations were turned over free last Sun(3.a.y at this
time to David Lawrence who spoke against the policies of the very
stations who were carrying his voice. The Code did not censor
Mr. Lawrence nor curbe his freedom of speech. Let me ask whether
2
,
"T ,C:r, -v
11/7/39
David Lawrence ‘ s newspaper, ’The United States News’, has follow¬
ed the example of radio and printed both sides of the Code contro¬
versy. Mr. Lawrence devoted the entire back page of his paper
October 16th to an editorial against the Code. Would he, follow¬
ing radio’s example, give the same page to an editorial in favor
of the Code?
"On our own station here in Peoria, we have followed the
same policy of free time for controversial discussions for about
two years. A good example of how it worked came about during a
jurisdictional labor dispute last Spring when both parties used
equal time to present their cases to the public. A year ago, our
town was divided on the question of Introducing military training
in the high schools. An equal number of speakers for both sides
presented their arguments over our station.
"Far from curbing freedom of speech, we have learned
that this policy promotes freedom of speech. It also brings more
persons to the microphone, whatever their views may be. It gives
the listener a chance to hear both sides of every question and
then puts upon him the responsibility of making up his own mind.
"Some one has said that radio stations cannot afford to
give away time for such purposes and that freedom of speech would
thereby be curbed. Of course, that is not true. "^or years, ra.dio
stations have been giving free time for public service. During
the European crisis of last September, stations all over the
country cleared their commercial program schedules day after day
to broadcast special European news. Does the American public need
to be reminded of the service performed by radio stations during
disasters such as the Ohio Valley and New England floods? Net¬
works and stations have given time freely for the discussions of
such questions as the arms embargo repeal. This network alone,
as I told you, gave almost ten hours on that subject. I have
mentioned only a few instances in which broadcasters found public
service more important than making money. There are many more,
certainly enough to prove that the radio industry can, as a public
service, afford to give rather than sell time for the discussion
of public controversia.1 issues. "
xxxxxxxx
RADIOS NAMED IN U. S. -VEI'JEZUELA TRADE TREATY
Concessions in the importation of American-made radio
equipment are included in the reciprocal trade agreement signed
this week between Venezuela and the United States, according to
the State Department.
The trade pact will become effective December 16th and
is the eleventh of such agreements to be reached between this
country and other American Republics.
XXXXXXXX
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11/7/39
MUSICIANS ASK ANOTHER BOOST FROM BROADCASTERS
Broadcasters, bothered with code and copyright diffi¬
culties, were given something else to worry about late last week
as the American Federation of Musicians informed the Independent
Radio Network Affiliates that it expects a 50 percent increase in
revenue from radio in 1940.
The present contract between the AFIi/I and IRNA will
expire January 17, 1940, Representatives of the two groups held
their first conference in New York last week to open negotiations
for a new agreement.
During the conference, Joseph N. Weber, President of the
AFM and Chairman of its International Executive Board, notified
the broadcasters that the position of the Federation is as follows 5
"(a) In 1937, the Federation required the network
affiliates (including network owned and operated stations but not
including network key stations) to increase their annual expendi¬
ture for staff musicians by an additional sum of Si, 500,000, there¬
by bringing the gross annual expenditure up to not less than
three million dollars. This has been carried out under the plan
of settlement during the two years beginning January 17, 1938.
"Upon the expiration of the present arrangement,
January 17, 1940, the Federation will require thst this annual
expenditure be increased by a further sum of Si, 500,000 per annum,
bringing the gross expenditure of the affiliates as a group for
staff musicians up to the sum of not less than $4,500,000 per
annum.
’’(b) In 1937, the Federation required that the annual
expenditure of the three national networks in all their key sta¬
tions in New York, Chicago and Los Angeles be increased by
$60,000 per annum each for staff musicians and this arrangement
has been carried out in the two years since the effective da.te
of the national plan of settlement, January 17, 1938. The Federa¬
tion will require that this increased expenditure be doubled after
the expiration of the present arrangement on January 17, 1940,
that is, that all of the key stations of the three national net¬
works, in New York, Chicago and Los Angeles, be equivalent to
$120,000 per annum for each station in excess of the amount that
was being spent prior to 1938,
"(c) The Federation will deal separately with the
independent non-af filiated stations and its demands from such sta¬
tions were not communicated to those oarticipating in last w^eek' s
conference, "
The representatives of IRNA and the networks were not
empowered to give the Federa.tion any reply to these demands.
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11/7/39
The Executive Committee of IRNA will promptly communi¬
cate with all affiliates in order to obtain facts and figures
with which to go back to the Federation for further conference
and negotiation.
The Federation notified the IRNA Committee that it
should obtain the necessary responses from the affiliates with
sufficient promptness to enable the Committee to meet again with
the Federation Executive Board on November 20, 1939, the da.te
fixed for the next conference.
XXXXXXXXXX
RADIO EXPORTS RISE AND FALL IN SEPTEMBER
Both increases and decreases were noted in United States
radio equipment exports during September, the Electrical Division
of the Department of Commerce reported this week. Shipments of
transmitting sets, tubes and parts declined considerably from
$310,585 in August to $197,155 during September; a gratifying
increase was registered in radio receiving sets with a new high
level of $1,033,200 compared with the preceding month's total of
$802,154; exports of redio receiving tubes also attained a peak
of $295,120 in September, having improved from the August total
of $258,657; all the remaining radio classes decreased, receiv¬
ing set comoonents from $429,067 to $402,780, loudspeakers from
$47,229 to $31,066 and non-specified receiving set accessories
from $46,622 to $36,325.
Exports of electrical equipment generally continued to
decrease during September when foreign shipments aggregated
$8,625,058, a decline of 6.5 percent, or $598,598, from the
August total of $9,223,656.
The September total was well above the figure of
$7,924,943 recorded during the corresponding month of 1938,
XXXXXXXXXX
RADIOS AMONG NOISEMAKERS THAT ANNOY HOTEL GUESTS
Radios and commercial loudspeaking systems are among
the twenty noisemakers that annoy guests most, according to the
New York City Hotel Association.
The list, based on a survey among member hotels, in¬
cludes: police radio cars, radios in taxis, other radios, phono¬
graphs and a.museraent instruments, loudspeakers or other devices to
attract attention, and mechanicai loudspeakers for advertising.
XXXXXXXX
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11/7/39
WLW CASE LOSES LAST APPEAL FOR SUPER-POWER
Efforts of the Crosley Corporptlon, Cincinnati, Ohio,
to regain its experimental permit for super-power operation by
court order were balked this ^’''eek when the U. S, Supreme Court
refused to review the decision of the Court of Appeals upholding
the action of the Federal Communications Commission.
Since being denied a renewal of its 500 KW license,
the Crosley Corporation has sought to reverse the Commission's
decision through litigation.
XXXXXXXX
WORLD SERIES BASIS FOR NEW MONOPOLY INQUIRY
Although the 1939 baseball season is now history,
the Federal Communications Commission is threatening to delve
into the broadcasting of the world series games and find out why
only the Mutual Broadcasting System carried the broadcasts.
Letters have been sent to broadcast licensees through¬
out the country asking whether they broadcast the World Series
games, whether an opportunity was afforded to them to be broad¬
cast, and, if it was, was any effort made by any person or
organization to prevent them from serving the series to their
listeners.
The information is to be returned to the Commission not
later than November 15th, when the Monopoly Committee will make
a study of the da.ta. If information already in its hands proves
to be true, the group -will reopen the hearings to get sworn
testimony, it wa.s indicated.
This action, it was said, was a direct result of the
Mutual Broadcasting System's obtaining an exclusive contract for
broadcasting the series. Information now before the Monopoly
Committee, it was learned, is that Mutual offered this service
to independent stations as well as affiliates of other chains.
The Committee also is said to be in possession of information
that some stations accepted the offer a.nd even broadcast the
first day's series, but then were threatened with a cancelling
of their chain contracts if they continued, a,nd so desisted.
It is contended in the Commission that such action, if
the subsequent investigation proves this to be true, violates
the public interest requirements of the Commission, because it
prohibits a station from fulfilling a demand for opportunity to
hear an event over the radio. It was pointed out that the World
Series will furnish perhaps, the best test of the right of chains,
through their exclusive contracts, to prevent their affiliates
from serving programs of nation-wide interest, even though fur¬
nished by another facility.
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The letter, which went to all of the stations, asked
the following questions:
"Were the World Series baseball games of October, 1939,
broadcast over your station?
"If such broadcasts were presented over your station,
state (a) the substance of any arrangement or agreement by which
such programs were made available to you, and (b) whether any
attempt w&s made by any person or organization to influence or
persuade you against broadcasting the programs.
"If broadcasts of the World Series were not presented
over your station, state (a) whether the programs were offered to
you, but refused by you because of an agreement with a network
or other organizations; (b) whether you were influenced by other
persons or organizations to refuse the programs, or were pre¬
vented from accepting them, and (c) whether an attempt was made
by you to obtain the programs, and if so, why you were unable to
make arrangements to obtain them. "
As soon as the answers are received by the Commission,
they will be turned over to the legal staff which he.s been work¬
ing on the monopoly investigation. It was indicated that even
if the reports do not bear out previous infomation, if any sta¬
tions appear to have side-stepped the question, their representa¬
tives will be called to Washington a.nd placed under oath. The
questionnaire does not call for sworn replies.
It is expected the investigation will be concluded in
time to be included in the report on monopoly. The inquiry is
to be pressed formrd as soon as the information is in.
xxxxxxxxxx
FCC HEARING ROOM TO BE STREAIiLINED
The makeshift facilities in the hearing room of the
Federal Communications Commission are to be streamlined and dig¬
nified under the direction of Chairman James Lawrence Fly.
Proceedings before the Commission, due to lack of facil¬
ities, have taken on a more or less informal aopearance. The
hearing room has only five desks, which fill one side of the
room. But since there are seven Commissioners, two had to sit
on the sidelines. Spectators I'Tere allowed to crowd around the
tables set aside for the attorneys.
Workmen now are building a semi-circular bench in one
end of the room which will be two steps higher than the floor
of the hearing room. It will be something like the benches used
in courtrooms and irill have individual lights for the Commission¬
ers as well as other facilities. The acoustics of the room also
are to be improved by the placing of sound-proofing material on
the ceiling.
X X X X X X X
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FIRST "STATICLESS" NETWORK PLANNED BY SHEPARD
Establishment of the first network of "staticless"
radio broadcasting is foreseen in the application which has Just
been made by John Shepard, III, President of the Yankee Network,
for perroission to operate two frequency-modulated broadcast sta¬
tions at the summit of Mt. Washington in Neir^ Hampshire and at
Alpine, N. J.
The Yankee Network based its application on the con¬
tention that frequency-modulated radiocasting has long since
passed out of the experimental stage and asked that stations
using this method of transmission be authorized for operation
as regular radiocast stations.
Eighteen stations, nine licensed to be on the air and
nine under construction now, are authorized by the Federal Com¬
munications Commission to use "special" emission or radio fre¬
quency modulation based upon the Armstrong system of staticless
radio.
Those on the air include: Edwdn H. Armstrong at
Alpine, N. J. ; General Electric, Schenectady and Albany; Head of
the Lakes Broadcasting Company, Superior, Wis. ; John V. L. Hogan,
New York; C. M. Jansky, Jr., District of ColiJimbia; WDRC (WIXPW)
Meriden, Conn.; Westinghouse Electric and Manufacturing Company,
Springfield, Ma.ss. , and the Yankee Network, Paxton, Mass.
Stations listed by the FCC as "special, construction
permits only" are Bamberger Broadcasting Service, Newark, N, J. ;
The Journal Company, Milwaukee, Wis. ; National Broadcasting
Company, New York; Stromberg Carlson, Rochester, N. Y. ; Westing-
house Electric and Manufacturing Company, -“oston. Mass.; WHEC,Inc.,
Rochester, N. Y. ; Worcester Telegram Publishing Company, Holden,
Mass.; Travelers Broadcasting Service Corporation, Avon, Conn.;
and McNary & Chambers, Bethesda, Md. The majority of these
transmitters are to be rated at 1 kilowatt.
Parallel with the Yankee Network experiments in frequency
modulation is work being done by the General Electric Comnany in
Schenectady. After having experimented for a year or more with
a station of this type atop the State Office Building in Albany,
the company decided to build a frequency-modulation transmitter
as part of its new television station in the Helderbergs. This
station is expected to be ready for ooeration by the first of
the year.
XXXXXXXX
- 8 -
11/7/39
"PRO-NAZI” STATIONS REPORTED NEAR BORDER
The Federal Communications Commission is Investigating
reports that a group of unlicensed radio stations are operating
in this country near the Mexican border, and are suspected of
communicating with G-erman submarines in the Gulf of Mexico and
Caribbean Sea. The reports are not the first regarding "outlaw"
stations since the European war began. However, none of the
stations have yet been found. FCC officials are skeptical of
their authenticity.
If the complaints are true, these "pirate transmitters"
may be prosecuted as the first radio violators of the neutrality
law. German submarines have been rumored in both Gulf and
Caribbean waters.
The report of radio operations was received as the
Commission prepared to expand its policing of the air waves to
remote sections of the Nation, through establishment of several
mobile monitor stations to check all channels.
These portable radio stations would augment seven now
maintained over the Nation.
xxxxxxxxx
RADIO AMA.TEURS HAI^^DLE MESSAGES AFTER VA. SNOW
Radio amateurs and road workers did yoeraan duty in
the heavy snow-storm which blanketed the Shenandoah and east-
side valleys west of the Blue Ridge the past week-end, according
to an Associated Press report.
The parts they played in relieving emergency condi¬
tions became more apparent as a warming sun began to melt the
snow, which fell 2 feet deep.
The stormi cut the Norfolk & Western's communication
lines into Shenandoah. E. E. Emswiler, Jr., of Roanoke, and
Charles C. Morrison, of Shenandoah, offered their radio services
to the Norfolk & Western's dispatcher, as well as to telegraph
companies.
xxxxxxxx
9
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11/7/39
TRADE NOTES
Appointment of J. M. Greene as Circulation Manager,
and H. M Seville, Jr., as Research Manager of the National
Broadcasting Company, was announced last week by Ken R. Dyke,
NBC Director of National Sales Promotion. Both appointments,
Mr. Dyke stated, are effective immediately.
In his new post, Mr. Greene is charged with network
and station circulation measurements, and their application to
network sales. The post is the first of that nature to be
established by a network. . Mr. Seville will supervise all sales
research and statistical activities for NBC. E P. H. James con¬
tinues as NBC Advertising Manager, in charge of all advertising
and direct mail in the interest of network sales.
World Ra.dio Market series of the Department of Commerce
this week included reports on Portugal, Portuguese Guinea, New
Zealand, Canada (supplement), Panama, and New Zealand (supplement).
The Mutual Broadcasting System's billings for the
month of October, 1939, soared to $428,221, representing an
increase of 23,1 percent over October, 1938, when billings total¬
led $347,771. This marked the eighteenth consecutive month that
Mutual network billings have shown an increase over the corres¬
ponding month of the year before. The 10-month cumulative total
also shov/ed a large gain over a corresponding period in 1938.
The 10-month cumulative for 1939 amounted to $2,685,038, an
increase of 20.8 percent compared with the cumulative total for
corresponding months in 1938, which amounted to $2,222,026.
/
Gross client expenditures for NBC Network facilities
registered another increase in October, up 27.3^ over September
and 11.8^ over the corresponding month in 1938. Total gross
billings last .month $4,219,253 compared with $3,315,307 in Sept¬
ember and $3,773,964 in October, 1958.
Gross client expenditures fbr NBC-Blue Network facilities
in October were $898,125 compared v/ith $666,415 in September, an
increase of 34.8^. For NBC-Red Network facilities, gross client
expenditures in October were $3,321,128 against $2,648,892 during
the previous month, an increase of 25.4^.
For the ten-month period ending October 31, gross client
expenditures for NBC Network facilities totalled $36,729,622
while for the same period in 1938 the total was $33,676,688. The
total for the first ten months of this year represents an increase
of 9.1^ over the corresponding period a year ago.
XXXXXXXX
10
S I
11/7/39
FCC PROPOSES U.S. PAY HIOHER TELEGRAPH TOLLS
The Federal Communications Commission recommended in
a report yesterday (November 6) that the rates paid by the
Federal Government for domestic telegraph messages be increased
from 40 percent of the charges applicable to private commercial
firms to 60 percent of such charges.
The increase would become effective January 1, unless
delayed by challenges filed in the next 20 days, and would
continue in effect for the rest of the fiscal year ending on
June 30, 1940.
The Government is one of the largest, if not the
largest, single customer of the Western Union and Postal Tele¬
graph companies, the Commission said. Official messages handled
by Western Union in 1937 amounted to 5.2 percent of the total
domestic messages handled by that company, while those Government
messages produced only 1.5 percent of the revenue from all the
company's domestic traffic. The Commission found that by reason
of the 60 percent spread between the Government rates and the
commercial rate, together with the narrow spread between the
total revenues from telegraph service and the total cost of such
service, the Government was not paying a proportionate share of
the cost. Minimum charges now effective would not be changed.
Sustaining the petition for an increase filed by the
telegraph companies more than a year ago, namely in May 1938,
the petitions of the Postal Tele graph- Cable Company, the Western
Union Telegraph Company, and Mackay Radio and Telegraph Companies
of California and of Delaware, which were for a change to the
full commercial rate, subsequently amended to a request for any
increase deemed just and proper by the Commission, the Commission
found that the Government is not paying enough for its telegraph
service. * _
XXXXXXXX
RCA REPORTS QUARTERLY PROFIT INCREASE
Radio Corporation of America and subsidiaries, fopthe
quarter ended September 30, reported this week net income of
31,894,224 after charges, equal after preferred stock dividend
requirements, to around 8 cents a share on common stock. This
compared with net income of $1,616,449, or about 6 cents a com¬
mon share in the like 1939 quarter.
XXXXXXXXXX
11
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11/7/39
RADIO MAKING- NOTABLE PROGRESS IN ITALY, U.S. LEARNS
Italy’s radio-manufacturing industry has made notable
progress in the last few years, according to a report to the
Department of Commerce from Assistant American Commercial Attache
N, P. Hooper, Rome.
Production during the current year is estimated in ex¬
cess of 400 million lire ( S20, 000 , 000 ) , a^n increase of 50 million
lire ($2,500,000) as compared with 1938. Of the 1939 total, 180
million lire ($9,000,000) represented receiving sets and the
remainder scientific, educational and industrial radio apparatus.
The manufacture of television sets and apparatus in
Italy has been receiving considerable attention during the cur¬
rent year. While details are not available, it is reported that
a number of interesting television models have been produced.
Italy now has thirty-five broadcasting sta.tions operat¬
ing, of which twelve are short-wave. Official estimates place the
aggregate number of receiving sets in the country at 1,100,000.
Broadcasting in Italy is under the control of a semi-governmental
organization. Owners of receiving sets pay an annual tax of
81 lire (about $4) which permits them to own as many sets as
desired. No commercial advertising is broadcast by Italian radio
stations.
XXXXXXXX
TRUSTEE APPOINTED FOR MAJESTIC CORPORATION
Federal Judge John P. Barnes on Monday, November 6,
in Chicago appointed Claude A. Roth, an attorney, as trustee of
the Majestic Radio and Television Corporation, under Section 10
of the Chandler Act, His bond was set at $50,000. The firm,
which manufactures radio sets, filed a voluntary petition for
reorganization under Section 11 of the Chandler Act on October
24. An attorney for creditors asked for a receiver next da.y.
Counsel for the comoany did not admit insolvency but
agreed to transfer proceedings to Section 10 to avoid litigation
with the Securities and Exchange Comm.ission, which contended the
action should not have been filed under Section 11.
XXXXXXXXX
12 -
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Heinl Radio Business Letter
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4
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INDEX TO ISSUE OF NOVEMBER 10, 1939
FCC To Ask Congress For Seven Mobile Monitors . 2
FCC Grants Poorer Raises For Relay Stations
NBC Signs Sponsor On International Station
Television Net Seen InNBC-G.E. Tie-up....
Schools To Aid In U. S. Education Program. .
National Service Above Local, FCC Decides . 5
FCC Declines To Enter Akron Labor Dispute . 6
McDonald Urged Radio Bomber In 1930 To Navy . 6
Radio’s Role In War Noted By Writers . 7
Cuban Station List Prepared By Commission . . . 9
Radio News Commentators Drawing Big Salaries . 9
Trade Notes . 10
Volume Of Radio Sales Seen Ahead Of 1937 . . . 11
CBS Reports Profit Of $2.05 A Share . 11
No. 1173
to to
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FCC TO ASK CONGRESS FOR SEVEN MOBILE MONITORS
Dete mined to prevent, if possible, the unla^rful use
of any of this country’ s ether waves by belligerents or their
agents, the Federal Communications Commission is prepering to
enlarge its monitoring activities.
An appropriation for the purchase of seven mobile
monitors will be asked of the next Congress so that a closer
check may be made on short-wave stations, especially in the
amateur field.
While the Commission has assurance of whole-hearted
support from the American Radio Relay League in tracking down
any "piracy” on the amateur frequencies, reports of unlawful
operations have increased since the outbreak of the European war.
The Ra.dio Relay League has set up a key network of
150 stations to keep constant watch on the air waves and report
any irregularities. FCC officials are convinced that the 55,000
amateurs as a whole are loyal and trustworthy citizens, but at
the same time they are afraid that unlicensed operators may use
their frequencies.
American amateurs have lost many of their foreign com¬
munications contacts, meanwhile, due to the "blackout” of their
colleagues by governmental edict in practically all European
countries.
Radio engineers differ as to the value of amateur radio
facilities for international communications, but they admit that
they could at least become a nuisance, if not a menace, when in
disloyal hands. The clearness of communication between "ham"
stations depends upon atmospheric conditions and consequently
is not dependable.
FCC officials said that the seven mobile monitors are
not needed solely for tracking down "radio spies" but are wanted
for the peace-time checking of transmissions as x^rell. They were
requested of the last Congress, in fact, but were refused as un¬
necessary at the time.
Chairman James L. Fly has conferred about the matter of
policing the radio waves with President Roosevelt, and it is
understood has his sanction in asking for additional facilities.
The President in a recent press conference commented
that this work is as important as any in keeping the United States
out of war.
XXXXXXXX
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11/11/39
FCC GRANTS POWER RAISES FOR RELAY STATIONS
The Federal Communications Commission this week author¬
ized an increase in the allowable power for relay broadcast sta¬
tions operating on certain frequencies in order to provide more
dependable service.
"Section 4.25(b) of Rules other than Broadcast, was
revised to read as follows;
"'A relay broadcast station assigned frequencies
in Groups D, E, F and G will not be authorized to install ,
equipment or licensed for an output power in excess of
100 watts; provided that before using any frequency in
these groups with a power in excess of 25 watts, tests
shall be made by the licensee to insure that no object¬
ionable interference will result to the service of any
government station, and provided, further, that if the
use of any frequency may cause interference then the
power shall be reduced to 25 watts or another frequency
in the licensed group selected which will not cause
objectionable interference.’"
XXXXXXXX
NBC SIGNS SPONSOR ON INTERNATIONAL STATION
Inauguration of an international commercial short-wave
broadca.sting service by the National Broadcasting Company was
announced this week by President Lenox R. Lohr.
The first sponsor to be signed is the United Fruit
Company, which will present daily quarter-hour evening programs
in Spanish over Stations WRCA and WN3I , These programs are de¬
signed especially to cover the Central American countries in
which the fruit company is extensively interested.
The new service offered by NBC will operate for 16
hours daily. It will cover the 20 Latin American Republics with
programs in Spanish, Portuguese and English beginning at 4:00 P.M, ,
and running until 1:00 A.M. , EST. In addition there will be
made available to advertising sponsors a da.ytime European pro¬
gram service beginning at 9:00 A.M. , and running until 4:00 P.M.,
EST, in English, French, Italian and German.
X X X X X X X
■■
TELEVISION NET SEEN IN NBC-G.E. TIE-UP
A nationwide television network was foreseen this week
when Alfred H. Morton, NBC Vice-President in Charge of Television
announced that the National Broadcasting Company television pro¬
grams would soon be re-telecast over the experimental station of
the General Electric Company near Schenectady.
A radio relay receiver, said Mr. Morton, is now being
installed by G. E. engineers near their television transmitter to
receive NBC programs, telecast in New York City over Station
W2XBS. The distance between the two stations is approximately
130 miles.
”The National Broadcasting Company and the Ra.dio Cor¬
poration of America have long been working on ways and means of
networking their television programs”, said Mr. Morton. "Since
it is our earnest desire to make this new service available to an
ever-increasing number of persons, we consider networking to be
a most important phase of television development.
"For some time past", he continued, "G. E. engineers
have been receiving NBC programs at their experimental station,
located on Helderberg Mountain near Schenectady, about 130 miles
from our transmitter atop the Empire State Building. Technical
progress and observations made are discussed with NBC technicians
and G. E. program experts make frequent visits to our Radio City
studios to follow NBC progress. An informal arrangement between
the National Broadcasting Company and the General Electric
Company provides for continued cooperation in the development of
television. "
XXXXXXXX
SCHOOLS TO AID IN U. S. EDUCATION PROGRAM
The Nation’ s schools and civic and educational agencies
have been invited by U. S. Commissioner of Education John W.
Studebaker to participate in a Nation-wide discussion on health
problems, in connection with six educational radio broadcasts
over a coast-to-coa st network sponsored by the U, S. Office of
Education in cooperation with the U. S, Public Health Service and
the Columbia Broadcasting System.
Beginning November 12, and continuing through five
Sundays, the U. S. Office of Education will broadcast half-hour
programs on conquering our health problems over a network of mare
than 100 stations of the Columbia. Broadcasting System. Broad¬
casts will be the second group of "correlated" educational pro¬
grams on the "Democracy in Action" series, from 2:00 to 2:50 P.M.
EST. Short series of broadcasts on labor, social security, hous-
youth, and other problems will follow. The documented
broadcasts on public health are designed to provide a better
understanding of the service of Government - National, State and
local - in advancing Nationr-wide efforts to protect and promot-e
health.
XXXXXYXYYY
A
NATIONAL SERVICE ABOVE LOCAL, FCC DECIDES
The provision of radio service to the United States on
a national basis, rather than the fulfillment of local needs
alone, is the goal of the Federal Communications Commission in
granting facilities, it was stated in a decision denying an
application for a new station.
Explaining the refusal to grant a construction permit
to the Thumb Broadcasting Co., Brown City, Mich., the FCC said.
"Based on its experience the Commission has formulated
a plan of allocation, which is set out in its Rules and Regula¬
tions, for the assignment of frequencies. By the plan it is
sought to establish a pattern of radio coverage on a truly
national basis. Only in such a manner can the goal of the best
and most comprehensive service possible to the greatest number of
listeners be carried into effect. The plan makes available 93
channels for three classes of standard broadcast stations, each
class of station having a particular function to fulfill. Sta¬
tions of the local classification are designed to serve small
communities or centers of population and the rural areas contigu¬
ous thereto; regional stations are designed to serve larger
centers of population or metropolitan districts and adjacent
rural areas; and clear channel stations are designed to serve
large centers of population and vast rural areas.
"The record in the instant case shows that the poten¬
tial listeners of the proposed station, the inhabitants of Brown
City and its vicinity, now receive very comprehensive daytime
service from existing stations each of which serves all or part
of the area within the service range of the applicant’ s proposed
facilities. These include eleven stations distributed in Michi¬
gan among Detroit, Lapeer, Bay City, Flint, Port Huron, Royal
Oak and East Lansing, with one station in Canada.
"The normal assignment for any station in an area such
as that in which Brown City is located would be a local frequency.
It is not clear what a full exploration of this possibility would
have developed. Certainly, under the allocation plan, the situa¬
tion shown in this record does not justify the granting of a
regional frequency. Nor do the facts of record with regard to
the area involved and the service already being rendered make
out a case for a departure from the plan. "
XXXXXXXX
The American Consulate at Tegacigalpa, reports that an
executive order has established a strict government censorship
of all telephone, telegraph, cable, and radio messages received
from or sent to countries engaged in war in Europe and Asia.
The censorship also covers radio broadcasts by all Honduran sta¬
tions. The order states 'that the censorship was established in
order to aid in maintaining Honduran neutral rights and duties
in connection with the European conflict.
XXXXXXXXX
- 5 -
Of. 31 ./'O;' . . ^ • . .'’'I 0 ! O-.. 'I ^OC:,
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FGC DECLINES TO ENTER AKRON LABOR DISPUTE
The Federal Communications Commission has refused to
take a hand in the Akron labor dispute involving Station WJW
and in so doing has given further aid to the National Associa¬
tion of Broadcasters in the enforcement of their Code.
Replying to a protest from the United Rubber Workers
of America, T. J. Slowle, Secretary of the FCC^ addressed the
following letter to S. H. Dalryraple, President of the Union:
"This will reply to your letter, dated October 28,
1939, in which you protest against the action of
Station WJW in cancelling a contract for broadcast time
with your Council and stating that it would not permit
future broadcasts of ’The Voice of Labor'.
"The adoption of the Code of Ethics by the Nation¬
al Association of Broadcasters does not in any way
alter the duties and responsibilities of licensees of
radiobroadcast stations under existing law and rules
and regulations of the Commission. However, Section
3(h) of the Communications Act of 1934, as amended,
provides that persons engaged in radiobroadcasting
shall not be deemed common carriers, and licensees of
broadcast stations may, therefore, lega.lly refuse to
sell time to any particular individual or organiza¬
tion. In view of this fact, the Commission is without
power under existing legislation to take any action
against Station WJW on the basis of the facts alleged
in your letter. "
XXXXXXXXXX
McDonald urged radio bomber in 1930 to navy
The award of a patent last week to Joseph B. Walker,
of Hollywood, for a remote control system of guiding airplanes
and releasing bombs by radio has recalled that Commander E. F,
McDonald, Jr., President of the Zenith Radio Corporation, Chicago
suggested a similar device to Admiral Willla.m A. Moffett in 1930.
Writing to Admiral Moffett in April, of that year,
Commander McDonald sa.id that Hawk's flight across the country
in a glider had started him thinking about the subject.
"Why not start experimenting with radio control of
gliders?" he asked. They can be towed to a great altitude and
then released and controlled, I believe, more easy by radio than
can a torpedo. The next step naturally being to load the glider
heavily with a high explosive and guide it into a selected target
Admiral Moffett replied that he would "have your sug¬
gestion looked into and studied to see whether it is rracticable
or not. "
11/10/39
RADIO’S ROLE IN WAR NOTED BY WRITERS
The important part radio is playing in the European
war, both in this country and abroad, is noted in a new book,
"America's Chance of Peace", written by Duncan Airman and Blair
Bolles, of Washington, and Just published by Double day, Doran &
Co., Inc., New York City ($1.00).
Discussing the attitude of the United States since the
outbreak of the hostilities, the authors wrote;
"The radio chains, which were unborn during the first
World War, undertook to make 'every effort consistent with the
news itself ... to avoid horror, suspense and undue excite¬
ment' , formally promulgating a radio code of wartime behavior
in demonstration of their incredulity and impartiality. The
National Broadcasting Company, the Columbia Broadcasting System
and the Mutual Broadcasting System sent representatives to
Washington on September 7 to draw up their code with the 'co¬
operation' of the United States government in the guise of the
Federal Communications Commission. They bound themselves in
their war broadcasts not to sa.y 'anything in an effort to in¬
fluence action or opinion of others one way or the other. '
"Before the code's adoption, in the excited last days
of August, wrhen the whole world was wondering whether or when it
was going to be shaken, the radios on occasion fed the popular
passion with propaganda adjectives which, piled high enough,
might have overtopped the Ea.stwall and brought about a break in
the resistance. On the afternoon of September 1, when the war
against Poland vms about ten hours old, H. V. Kaltenborn, speak¬
ing from London for the Columbia system, expressed his views
about Hitler - 'unaccountable, changeable. Irascible, tempera¬
mental'. He recalled that in his speech to the Reichstag making
known the Geiman ' drang nach' Poland, Hitler spoke against
traitors, and then he remarked:
"'Well, isn't it strange that at a time v-hen war begins
the leader who says that he has the Geniian people unanimously
behind him must thus emphasize the traitors within Gemany? And
isn't it also significant that when Germany presents an English
official translation over the radio, it leaves out Hitler' s
mention of the traitors within Germany?'
"This sort of ' ibiter dictum' was forbidden by the code.
"Later in the month of September, Columbia gave two
noteworthy demonstrations of its refusal to be snared by propa¬
ganda.
"To William L. Shirer, the Columbia System' s Berlin
correspondent, the Gemian Foreign Office suggested that he visit
a camp filled with Polish prisoners so that he could describe to
his listeners in America the conditions under which the captured
enemies of Germany were living. Shirer turned down the offer.
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11/10/39
He suspected that he would be shown a model camp made especially
neat and stocked with well-fed prisoners just for the occasion.
"A short while later Mr. Shirer notified his home
office that he had arranged a broadcast from a Berlin tavern
which was a newspapermen's hangout. He said he had received
permission to conduct an ad-lib broadcast for which the corres¬
pondents taking part would not have to observe the usual require¬
ment that they first show their scripts to the G-erman censors.
Columbia, however, turned down the suggestion. The system thought
that the broadcast might create the false impression in the
United States that the correspondents were free to write and say
what they pleased from Berlin.
"Despite their efforts to be impartial, radio networks
have received thousands of letters berating them for putting
'propaganda' on the air. After every news broadcast the tele¬
phones in radio stations begin ringing, bringing calls from
irate listeners determined that America shall not be pushed from
its propaganda resistance."
With regard to the propaganda originating abroad, the
writers stated that "the chief direct propaganda medium in the
second war is the government-controlled radio, which puts Keokuk
in Europe ' s backyard' .
"The European governments seem to stand in the back¬
yard and shout their messages direct from government to citizen
with no middle-man sifter like the correspondent or the commer¬
cial radio announcer", they continued. "The British evoke
Mr. Keokuk' s sympathy by telling him that the men and women in
the Anglo-Saxon homeland are going quietly and grimly about
their duty of saving the British Empire and civilization (it
used to be democracy they were saving until they put the issue
on a broadened basis).
"The British broadcasts stress the old bulldog spirit,
which is reflected also in the 'color' stories sent from London
to the United States by newspaper correspondents after being
passed by the censor - 'the populace has accepted the countless
wrenchings away from normal peacetime life and habits with
admirable good humor and a minimum of grumbling’ , voltes Edward
Angly in the New York Herald Tribune .
"The German government, which could not reach America
except through its diplomatic and consular agents during the
last war, when the British cut the cables, began to address the
United States night after night over the radio when the second
war came.’ The Germans adopted a slightly flattering tone, and
their message was aimed at convincing the United States that her
role was really one of isolation .
"The German propaganda toward America of the second
war has disclosed much greater intelligence than the first war
propaganda. In 1914 and 1915 Ambassador von Bemstorff in
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11/10/39
Washington, a man of great cham and popularity among Americans,
sought to put across the theme of ’Lehrfreiheit ' to the United
States. He did succeed in some part in taking the curse off
the Belgian propaganda of events, but the German Foreign Office
made him accede to heavy-handed power-propaganda schemes, execut¬
ed by dull old Dr. Dernburg and Franz von Papen, the military
attache, whose operations really turned out to be better for
England than the most expensive British propaganda, in the end.
The British, at the first v/ar’ s close, declared officially that
they opened their propaganda campaign in the United States only
to combat the German undertakings. ”
xxxxxxxx
CUBAN STATION LIST PREPARED BY COMMISSION
Cuba has 77 broadcasting stations, 35 of which 'are in
Havana, a tabulation by the Federal Communications Commission
disclosed this week. The listing, together with frequencies,
call letters, and power, is available at the offices of the
FCC.
XXXXXXXX
RADIO NEWS COMMENTATORS DRAWING BIG SALARIES
The European war and public interest in International
developments have put radio news commentators in the big money
along with crooners, swing band leaders, and quiz experts, accord¬
ing to a recent tabulation by Variety.
Weekly income of commentators and newscasters as
"estimated or reported", listed by the amusement journal, follow'
Walter Winchell, $5,000; Edwin C. Hill, $3,500;
Dorothy Thompson, $2,500; Lowell Thomas, $2,250; H. V. Kaltenborn,
$2,000; Gabriel Heat ter, $2,000; Elliott Roosevelt, $1,200;
^ymond Gram Swing, $1,000; Elmer Davis, $1,000; H. R. Baukage,
$850; Fulton Lewis, Jr. , $750; Paul Sullivan, $750; Bob Trout,
$700; Earl Godwin, $650; Graham MacNamee, $500; Drew Pearson-
Robert Allen, each $500.
xxxxxxxxxx
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TRADE NOTES :
4 WCSC, Charleston, 3. c. , has resigned from the National
'Broadcasting Company Blue and Red networks, and will Join the
Columbia Broadcasting System, effective January 1, 1940. The
station is owned by the South Carolina Broadcasting Company.
Operating at 1360 kilocycles with 1,000 watts power day and
night, WCSC Joins Columbia' s Southern Group, bringing the CBS
total to 118 stations in 117 cities.
The Federal Communications Commission this week granted
the application of Orville W. Lyerla, Herrin, Ill. , for a con¬
struction permit authorizing a new ra.diobroadcast station to
operate on the frequency 1310 kc. , with power of 100 watts night,
250 watts to local sunset, unlimited time.
William Winter, Columbia' s news analyst at WBT,
Charlotte, N. C. , has been appointed CBS Regional Educational
Director for the South, Sterling Fisher, Network Director of
Education, has announced. Mr. Winter will supervise the work
of CBS Educational Directors in Southern States and will co¬
operate T?^ith educational leaders in developing Columbia's educa¬
tional program schedule.
The Ftederal Communications Commission this week
adopted its proposed findings, which were entered by the Com¬
mission on June 6, 1939, and entered its final order granting
the application of Thorne Donnelley for a permit to construct a
coastal harbor radio telephone station to be located in the
vicinity of Mackinac Island, Mich. , to operate in the public
service on the frequencies 2550 and 2738 kc. , with power of 400
watts, unlimited time on A3 emission.
The Danish Ministry of Public Works through the Mail
and Telegraph Department has issued an instruction forbidding
amateur radio transmitting. The prohibition has been issued as
a result of the Government's strong desire to keep Denmark
absolutely neutral. The country'’ has about 450 radio amateurs.
They will, as long as the European war lasts, confine their
activities to receiving and to scientific and experimental pur¬
poses not involving transmissions.
XXXXXXXXX
10 -
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11/10/39
VOLUME OF RADIO SALES SEEN AHEAD OF 1937
At tile present rate of unit sales, volurae on radio
sets will not only far exceed 1938 but v/ill surpass the heavy
1937 total, according to estimates in the industry, the New York
Times reported this week on its business page. Because of the
preponderance of the portable and table models, the average unit
price is much smaller than in 1937, however, and dollar volume
may fall below the figure for that year. The extensive promo¬
tions on sets from $23 to approximately $30 are attracting
customers who already have console models but are led to buy the
table models because of the phonograph feature.
XXXXXXXXXX
CBS REPORTS PROFIT OF $2.05 A SHARE
The consolida.ted income statement of the Columbia
Broadcasting System, Inc., and subsidiary companies for the nine
months ended on September 30, issued this week, showed a net
profit of $3,511,224 after expenses, interest, depreciation,
Federal income taxes and other charges.
The profit was equivalent to $2.05 each on the
1,709,723 shares of $2.50 par value stock either outstanding on
September 30, or to be outstanding upon completion of exchange
of old $5 par value stock.
In the corresponding nine months of 1938 Columbia
reported a net profit of $2,606,158, or $1.52 a share.
The results do not reflect operations of the Columbia
Recording Corporation and its subsidiaries, full ownership of
which was acquired this year. The results of the recording
corporation, -mliich on the basis of estimates for the first nine
months of 1939 do not affect materially consolidated profits,
will be included in the consolidated figures at the close of the
current year, it was said.
At a meeting of the Board John J. Burns was elected a
Director. Mr. Burns ?ps formerly Judge of the Superior Court of
Massachusetts, general counsel of the Securities and Exchange
Commission and special counsel of the United States Maritime
Commission.
Directors also voted a cash dividend of 45 cents a
share ^ on the present Class A and Class B stock of $2.50 par value.
The dividend is payable on December 8 to holders of record of
November 24. Including the current payment, divid.ends on each
class of stock will amount to $1.50 a share for 1939, against
$1.25 paid in 1938.
XXXXXXXX
- 11 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF NOVEMBER 14, 1939
Limited Advertising, Safeguards Urged For Television . 2
Administrative Board Created By FCC . 5
McDonald Urges Curb On Commercial Television . 6
Two Classes Of Television Stations Proposed . 9
Court Upholds FCC In El Paso Appeal . 10
Gannett Solicits Donations To Fight Radio Curbs . 11
Radio Censorship Seen In Argentina And Uruguay . 12
No. 1174
11 J/J5
i
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November 14, 1939
LIMITED ADVERTISING, SAFEGUARDS URGED FOR TELEVISION
While insisting that television has not yet emerged
from the experimental stage, the Television Committee of the
Federal Communications Commission this week recommended liberal¬
ization of the rules to set up two classes of visual broadcasting
stations, one of which will be permitted to carry advertising to
help defray the cost of preparing programs.
Explaining that the "amber light" should precede the
"green light" in television development, the Committee, headed
by Commander T.A.M. Craven, asserted that the Commission should
remove all obstacles to progress in the infant industry but at
the same time must safeguard the public from costly over-promotion.
Finally, the FCC Committee, which has been studying the
new art since last Spring, suggested that this might be an oppor¬
tune time for American manufacturers to get a hoothold on future
world trade in television while European countries are occupied
with war.
The report was the second on television, the first
having been submitted last May, It was signed by Commissioners
Craven, Norman S. Case and Thad H. Brown. It was divided in three
parts, but the second and third sections, which deal with present
licensees and applications, were withheld until after the FCC acts
on the general policy set forth in Part 1.
Accompanying the report were an allocation table pre¬
pared by the Engineering Department and proposed new rules govern¬
ing television operations.
While retaining the ban on unrestricted sponsorship of
television programs, the FCC Committee points out "sponsorship is
not prohibited, provided such sponsorship and the program facil¬
ities or funds contributed by sponsors are primarily for the pur¬
pose of experimental program development".
The Committee notes certain television progress since
last May, but feels that a "criacial" stage has been reached. Less
than a thousand television receivers have been sold since that
time, and nearly all of these are in New York City. To date only
seven of the 19 channels available for television have been
developed to the point of initial readiness for technical service
of any character.
Yet the Committee is of the firm conviction that, while
not eager to purchase receivers at this time, "the public does
not desire to be deprived of the opportunity to enjoy the benefits
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of television when it is ready for public service". It is the
Committee’s further opinion that progress henceforth "is dir¬
ectly dependent upon the development of public interest in tele¬
vision as a broadcast service, and that such interest can only
be developed through the broadcast of programs that have a high
public appeal".
Accordingly, the Committee makes specific recommenda¬
tions which embrace:
1. Greater public participation in experimental operation.
2. Construction of more sta.tions by properly qualified
applicants.
3. Elimination of any regulation which Interferes with
proper business economic processes.
4. Adoption of a license policy for television broadcasters.
5. Allocation of the seven lower frequency channels as
follows: 3 channels to metropolitan districts in
excess of 1,000,000 population; 2 channels to areas
of between 50,000 and 1,000,000, and 1 channel for
districts of less than 50,000.
6. Stimulation of technical development on additional
channels now reserved for television.
7. Development of prograjn service in conjunction with
research and experimentation.
8. Establishment of minimum requirements for television
transmitters.
9. Protection of the public, as far as possible, against
loss through obsolescence in receivers.
10. Modification of prohibition against commercialism to
permit sponsorship on experimental programs, under
certain conditions.
Noting the high cost of producing programs for televi¬
sion stations, the Committee said:
"In spite of the convenience afforded by television in
the home, it cannot be assumed safely that the public would be
entirely satisfied with a quality of television program service
inferior to that secured from competitive media, such as motion
pictures, particularly the news reels.
"The Committee hes been informed that the average cost
of the average motion picture production is approximately $300,000,
and that the approximate cost of rendering television programs in
New York City for one week on a 12-hour per week broadcast basis
is $15,000. Thus, if television is to become a real service to
the public, the licensees must be adequately financed and be
assured of an adequate revenue from the service rendered.
"Not only must this huge cost be shared by several
licensees, but also many stations interconnected in a program dis¬
tribution system appear at this time to be necessary before
adequate program service to the public is possible.
"To date no connecting links have been constructed
because there are not enough stations to justify construction of
the interconnecting facilities. Applications for other than tele¬
vision technical research stations have come from only seven
communities of the nation.
3
11/14/39
"The Committee Is likewise of the opinion that a whole¬
sale distribution of receivers at this time is unsound because
it may lead to retardation rather than acceleration of the ulti¬
mate development of television. Public purchase of receivers in
advance of proper television transmission facilities would natur¬
ally create a demand for such transmitters. At the present
stage of development good programs cannot be furnished. The more
logical procedure would be the establishment of transmitting sta¬
tions adequately equipped and organized to render program service
so attractive to the public that it will purchase the most modem
receivers.
"Only three television stations are now carrying on
regularly scheduled broadcast service to the public through
their licensed facilities. Broadcast service of a suitable
standard can only be rendered at a considerable expense and with¬
out any immediate monetary return unless the licensee is engaged
in the manufacture and sale of television transmitters or receiv¬
ers, and even in such cases the return is problematical ....
"The Committee has given careful and sympathetic con¬
sideration to this proposal, particularly from the standpoint of
estimating the extent to which the present restrictions against
commercialization constitute a barrier to orderly progress. The
Committee is of the opinion that at present the claimed advant¬
ages of removing the restrictions against commercialization of
television do not outweigh the potential disadvantages.
"Today there is no circulation to attract any sponsor
to television as a logical media for securing public response.
It appears obvious that before commercialization of television
can become feasible, the service should be ready to sell on some
reasonable basis of circulation value to the sponsor. Since
only a few experimental stations in operation today are rendering
broadcast service to not more than 1000 receivers, there is no
convincing argument that the removal at this time of the ban on
commercialization will affect the development of television in
any positive manner.
"On the other hand, there is grave possibility that
premature commercialization could retard logical development.
There is particular danger that advertising rather than enter¬
tainment or education might easily become a paramount factor in
programs. In addition, premature commercialization may easily
lead to a scramble for television channels by unfitted applicants
who have no real public service concept. It may precipitate many
stations in local markets before any source of good programs is
available. Consequently, it is certain that public reaction to
television service would be adverse.
"The Committee does not believe that immediate commer¬
cialization of television program service would increase the sale
of receivers. On the contrary, it might easily result as a
retardation of the ultimate sale of such receivers on a large
volume basis.
"Furthermore, immediate commercialization threatens to
open the door wide to financial exploitation of the nublic with¬
out any sound basis therefor. And, finally, premature commer¬
cialization might crystallize employment and wage levels before
a new-born art and industry has any opportunity to gain
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11/14/59
sufficient experience to obtain the stability in this phase of
the service which is so essential to employer and employee
alike .
"It may be that the time is fast approaching when
pioneers must receive a return not only on their huge investment
but also must secure remuneration for operating expenses. Con¬
sequently, the Committee feels that program sponsorship by
advertisers is one of the logical means of support for the new
television service to the public when such service is ready.
The Committee recognizes a particular need for keeping the Com¬
mission’s regulations abreast of progress. Therefore, applicants
should be given the opportunity, at any time, of securing changes
in the rules if, as a result of a public hearing, they can demon¬
strate that public interest will be served by such changes.
"■While the Committee does not recommend any radical
change in principle in existing rules relating to commercializa¬
tion, it does suggest a clarification and simplification of
existing rules in this respect.
"It should be made clear that the rules do not consti¬
tute an artificial barrier to the logical development of program
technique, including the development of methods for making tele¬
vision useful as an advertising media conforming to favorable
public reaction. Also it should be apparent that sponsorship is
not prohibited, provided such sponsorship and the program facil¬
ities or funds contributed by sponsors are primarily for the pur¬
pose of experimental program development. The intent of the
rules should be to prevent commercial exploitation of television
as a service to the public prior to demonstrated proof of its
readiness for regular operation in accord with public interest,
convenience or necessity. Other than such alterations, the
Committee is of the opinion that the Commission should not per¬
mit regular commercialization of television at present, but that
instead the Commission should hold itself ready to consider the
problem anew when general development progresses further into
practicalities. "
xxxxxxxx
AMINISTRATIVE BOARD CREATED BY FCC
The Federal Communications Commission has issued an
Administrative Order (No. 2) effective December 1, changing the
routine duties of members of the Commission.
The Order creates a Board to be known as "The Admin¬
istrative Board" to handle the routine functions formerly ie the
hands of individual Commissioners. The Board is composed of the
General Counsel of the Commission, Chief Engineer, Chief Account¬
ant and the Secretary.
XXXXXXXXXX
5
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11/14/39
McDonald urges curb on comijiercial television
Limited commercial television, confined to the New York
metropolitan area, was proposed to the Television Committee of
the Federal Communications Commission this week by Commander
Eugene F. McDonald, Jr., President of Zenith Radio Corporation,
Chicago, just a short while before the release of the Committee’s
report.
At the same time. Commander McDonald, who opposed the
public debut of television last Spring, stated he would oppose
any move toward Government subsidy of the art.
His letter to the Committee follows:
"In your consideration of television and the policies
likely to be most effective in furthering its development, may
I present a viewooint that results from careful study of the
engineering aspects of television as well as from long experience
with broadcasting and radio reception,
"In the United States, the radio industry is the pro¬
duct of private enterprise. We can claim superiority over any
country in the world, because our government did not hamper the
industry by subsidy or control, or by such well-meant participa¬
tion as resulted in holding back radio development abroad.
"First, I wish to pay tribute to the pioneering work
in television of Mr. David Sarnoff and the Radio Corporation of
America. With his knowledge of the great possibilities for the
founding of an important new industry, he courageously invested
not only considerable sums of speculative capital but hij^ per¬
sonal and engineering ability in the pioneering effort to secure
leadership in this new field.
"Great care should be taken by the government at this
time so that no obstacle may exist toward working out feasible
solutions, both technical and economic, of the problems that must
be mastered before television can launch itself in the proper
sphere across the entire country.
"Just what the future role of television is, cannot now
be foreseen for it is still in an early stage of development.
Funda.raental changes in its application and in its technical
aspects may lie ahead. For example, it may be found that tele¬
vision transmitted over telephone wires, with each subscriber pay¬
ing a monthly fee, may be more feasible than its broadcasting
over radio but no method of supporting television operating costs
can be proved till it is tried. In England, television ?ras bring¬
ing sports events into the movie theatre. Such outlets may have
added to self-support for programs. The problem of supporting
television may be partially cared for if it may be found that
television has the ability to introduce into the home, through
the eye, dem.onstrations of new products. Very great resistance
6
r
11/14/39
is encountered by salesmen In entering the home to make suoh
demonstrations, and it may be that television will have unique
advertising value and can partly sustain itself on this feature.
”We must consider, however, that this side of tele¬
vision is still in the experimental stage. It may be wise,
therefore, to confine commercial licensing to areas where enough
receivers are known to exist that results may be observed, as,
for example, the area surrounding New York City with its great
concentration of high income population that can be reached from
a single telecasting center.
’’In any event advertising should be permitted in almost
any reasonable form so that diversified tests can be made to
ascertain the possibility of self-support from any proposed
source.
”If experimentation is confined to a single area that
is known to have all suitable characteristics, such as New York
with its 15,000,000 potential audience within fifty miles of
the Empire State Building television transmitter, it will also
be a comparatively easy matter to alter or even cancel the experi¬
ment, if it is unsuccessful, whereas it might be genuinely dif¬
ficult to correct a nationwide mistake.
"In the press there recently has been discussion of
the possibility of a government subsidy of television. It seems
to me this would have a stifling effect upon television and
would be undesirable from other standpoints. Obviously the
CJovernment cannot finance all comers and it could hardly justify
providing direct or indirect profits to a single entrepreneur.
The government could not, without prejudice to other existing
media of advertising, such as newspapers, magazines, and radio,
subsidize a television development which, in its final outcome,
might compete with self-supporting, existing advertising media
representing private enterprise. This would be true whether the
government permitted advertising at rates below cost or whether
it confined itself to entertainment which is the framework by
which most other advertising is carried to public attention. It
would hardly be fair for government to lend its tax-secured
resources to establish competition with existing advertising
media in this way.
"There is the possibility that television may become a
great avenue of mass communication, a great medium for the dis¬
semination of ideas. If the Government steps in and subsidizes,
it inevitably will be faced with the choice of giving preference
with its subsidies to one or a few of the private organizations
that might contribute acceptable material in adequate volume or
of itself taking control of this new medium of communication and
developing feeder and distribution services which, if success¬
fully developed, would compete and crowd newspaper, magazine,
and radio.
"Fiirtherraore , technical and self-supporting economic
progress may be hampered by government subsidies because of the
rigidity of the inevitable government control. In England, for
example, it has been found there ?/as great interest in the dis¬
tribution of sports events at the local motion picture houses.
There, government regulation, carried over from radio broadcast¬
ing, is reported to have prevented paying substantial sums for
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the right to transmit by television. Hence, sports promoters
were unwilling, without adequate compensation, * to permit dis¬
tribution of their events, fearing that such distribution would
cut off a portion of their paying audience without compensating
income* And the government, with standard practices requiring
nationwide observance, cannot leave to its administrators the
necessary discretion and initiative to handle each case on its
merits with the same effectiveness that numerous private enter¬
prises now handle these matters.
“Finally, the problem of free speech will face tele¬
vision as it develops into a great avenue of mass communication
and supplements the press and radio. In these fields, the Con¬
stitution guarantees the right of free speech. It would not be
possible, if this new field of television were government- sub¬
sidized and government-controlled, to keep government influence
from determining what should be telecast and what should not.
This field of communication, it may be pointed out, is probably
the most dangerous of all in which to take even a few steps
leading toward government control by subsidy.
“It may be that like so many other developments in
pioneering work they who introduced television are ahead of their
time and that today the heavy expenditures required for maintain¬
ing television broadcasting are not warranted. It is reported
that less than 500 sets have been sold to the public in the whole
United States and that 90^ of these are in the Greater New York
area. At $500 each, this would represent a total of only $250,000.
“If that is the case, instead of having the Government
come in and take over telecasting from its commercial backers
and underwrite a development on which they misgauged the market,
it might be better, at cost no greater than that exoended for a
few weeks of telecasting, to buy back all the sets that are out¬
standing so that unfavorable reaction from the public would be
obviated.
search and technical development may make
television commercially self-supporting. That can only be proved
y permitting commercial support of such development. Such proof
must be based on realities and recognize that the new medium may
compete with the press and with radio for the advertising dollar,
or sources of programs and for the privilege of entertaining or
instructing the public. But, until the real possibilities are
Detter known and the other problems have been thought through,
the government should; (a) give the greatest possible freedom
enterarise for experimentation by removing any haraper-
^ become a financial partner by assuming res¬
ponsibility for television’s existence. “
XXXXXXXX
• I ^il^our, since 1931 Director of General
Picture Department, has been appointed Program
-in s new television broadcasting station W2XB
wnich will go into operation the latter part of this year, it has
CharlP^p^^p®^ Manager of the Publicity Department.
npmpH company’s Market Research SpCtion has been
Gilmour in charge of the MotiSn Picture
Dictp^^Po^^' ^ W T. Cook will be in charge of scenarios for both
pictures and television urograms.
X X X X x‘x X X
- 8 -
11/14/39
TWO CLASSES OF TELEVISION STATIONS PROPOSED
Two classes of experimental stations will be establish¬
ed by the Federal Communications Commission if it adopts rules
recommended by the Television Committee.
The two classes of stations as defined in the proposed
rules follow:
Class I and Class II stations:
(a) A licensee of a television broadcast station shall not
make any charge, directly or indirectly, for the transmission of
either aural or visual programs.
Class I Stations;
(b) Class I stations shall operate to conduct research
and experimentation for the development of the television broad¬
cast art in its technical phases but shall not operate for render¬
ing regularly scheduled broadcast service to the public.
( c) Class I stations will not be required to adhere to the
television transmission standards recognized by the Commission
for Class II television stations.
( d) No Class I station shall operate when interference
would be caused by such operation to the regularly scheduled
broadcast service of a Class II station.
Class II Stations;
(e) Class II stations sha.ll operate to render scheduled
television broadcast service for public consumption, and in con¬
nection therewith may carry out experiments with respect to
program technique, determine power and antenna requirements for
satisfactory broadcast service and perform all research and ex¬
perimentation necessary for the advancement of television broad¬
casting as a service to the public.
(f) Class II stations shall operate in accordance with the
television transmission standards (scanning, synchronization, etc.)
which the Commission recognizes for this class of station. The
Commission will recognize a modification in these standards upon
a showing by the applicant proposing the changes that it will be
in the public interest to require all Cla.ss II stations to adopt
the proposed changes.
(g) Class II stat ions shall make all equipment changes
necessary for rendering the external transmitter performance
required by the Commission.
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11/14/39
(h) Class II stations shall maintain a minimum scheduled
program service of five hours per week throughout the license
period. (The Commission may modify this minimum schedule in
accordance with the showing on the merits in individual cases. )
(i) In case of failure of a Class II station to render its
minimum of scheduled program service per week, the license there¬
for will not be renev^ed unless it be shown that the failure of
program service was due to causes beyond the control of the
licensee .
( j) Class II stations may broadcast sponsored programs,
provided such sponsorship and the program facilities or funds
contributed by sponsors are primarily used for experimental
development of television program service. Solicitation, or the
offering on the part of a licensee to anyone, of its licensed
facilities for hire as a regular service to the public or as a
service to sponsors on other than an experimental basis is
prohibited.
XXXXXXXXX
COURT UPHOLDS FCC IN EL PASO APPEAL
A mere showing that the income of an existing station
may be reduced if another station enters its field is not suf¬
ficient to Justify the Federal Communications Commission refus¬
ing to grant the newcomer a' license.
The United States Court of Appeals so ruled this week
in dismissing an appeal brought by the Tri-State Broadcasting
Go., Inc., licensee of Station KTSM of El Paso, Tex., in its
fight to overturn an order granted to Dorrance D. Roderick to
construct a station at El Paso.
The company appealed from a finding of the Federal Com¬
munications Commission which contended that the firm had no right
to appeal from its order, as economic injury, it suffered, is
without legal damage.
XXXXXXXX
A new all-time high month in gross billings since the
station was opened 19 years ago was reached in October by
Westinghouse KDKA, according to S. D. Gregory, General Manager.
During the month billin.s showed an increase of 18^ over October
of 1938. New business booked by KDKA during the month Just clos¬
ed topped the same period of last year by a margin of 63^. Dur¬
ing the thirty day period, time and talent contracts for future
programing hit the sum of ^102,469, an increase of $63,487 over
October of the previous year. The first ten months of 1939 in
this phase of business show an increase of 33^ over the 1938
period of January through October.
XXXXXXXX
‘ i;
L J ’ -
\
GANNETT SOLICITS DONATIONS TO FIGHT RADIO CURBS
Frank Gannett, New York State publisher and Chairman
of the National Committee to Uphold Constitutional Government,
this week loaded the mails with attacks on the Code of the
National Association of Broadcasters and the provision of the
Communications Act which gives the President extraordinary
emergency powers.
At the same time Samuel B. Pettengill, former Republican
representative from Indiana and now Vice Chairman of the Gannett
Committee, let loose a blest against the NAB Code in an address
carried Sunday night by the Columbia Broadcasting System.
A letter and enclosures of Pettengill* s speech and
other data was sent to a million persons, according to the Com¬
mittee’s claim, in every Congressional District, including all
lawyers, physicians, business men, bank presidents, and editors.
’’The National Committee”, wrote Sumner Gerard, Treasurer,
"has a carefully planned program for nation-wide education and
information to bring about, during the next session of Congress,
repeal of the dangerous blank-check powers of the President. "
In an open letter to broadcasting station operators,
Mr. Gannett asked for contributions ranging from ^50 to |l,000
according to the size of the station, and sustaining time for
speakers.
A preliminary study indicates, he wrote, that broadcast
stations should be granted three-year licenses and that the FCC
should have no power to suspend, revoke, or refuse to renew a
license "for an alleged offense in broadcast programs other than
violation of specific prohibitions contained in the Communications
Act”.
"Shall radio have its independent existence assured so
that it can alv/ays give a firm basis for freedom of speech over
the air, regardless of any administration - Republican, New Deal
or Democratic, that may be in power?" he asked.
"Shall a system be allowed to continue which at some'
future date may endanger or even destroy the independence of radio
because of beaucratic caorice or maniuulation for political our-
poses?"
Centering his attack on the NAb Code provision which
bars sponsored controversial broadcasts, Mr. Pettengill said:
"The National Associa,tion of Broadcasters has decided
that the American people need a guardian. They have elected them¬
selves the guardian. They did this without our knowledge or con¬
sent but it is now the fact. You and I are now their wards. It
IS only by their leave that you can now discuss a controversial
11 -
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11/14/39
question over the air waves of America. You can say nothing,
you can hear nothing, except with their majesties' gracious per¬
mission. Papa knows best.
"The Broadcasters' recent Code is a threat against the
free speech of a free people. No law authorized their action.
No Constitution sanctioned it. No election ratified it. They
did what Congress itself does not have the power to do. The
Lords of the Air decided that they would decide what you shall
hear. They decided that you shall not decide what you shall hear.
"As always in cases of this kind their action is sur¬
rounded by sanctimonious reasons why what they are doing to us
is a good thing for us. This is old stuff - as old as Caesar
and the Divine Right of Kings. Abraham Lincoln, man of the people,
knew this game inside and out. Lincoln said, ’Tyrants always
bestride the necks of the people on the claim that it is for the
people ' s good. ' "
XXXXXXXX
RADIO CENSORSHIP SEEN IN AROENTINA AND URUGUAY
Both Argentina and Uruguay are preparing to put all
broadcasting under strict government control, including the
censorship of news, according to the Montevideo correspondent of
the New York Times.
The Uruguayan President last week sent a bill to Congress
to that effect and the Argentine Government on the same day pub¬
lished the recommendations of a Government Commission which spent
a year studying the problem.
The Uruguayan bill establishes the principle that the
atmosphere over the country* s territory is a State domain, and
that strict governmental control to use that domain does not vio¬
late the constitutional guarantees of free speech, free thought
or any other individual liberties any more than those liberties
are violated in the Government's control of the use of its do¬
main in the soil and subsoil. According to this principle the
^tate argues that it has the same right to exercise its sovereign¬
ty by prohibiting and regulating the crossing by airplanes.
Most of the other South American countries already exer¬
cise censorship over radio broadcasting by taking phonographic
recordings of all programs and later fining or closing down the
stations for sending anything the Government disapproves of.
XXXXXXXX
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2400 C.\LIFORNIA STREET VVASIIJNq'gO^Q^.pg
INDEX TO ISSUE OF NOVEMBER 17, 1939
Television Problem Economic R8.ther Than Technical . 2
New Network Due To Start Operating January 1 . 3
Code Controversy Dwindles; Coughlin Still Talks . 4
Stations Cooperate To Improve Service; FCC Approves . 5
Composer Says Radio Aids Music Appreciation . 5
Monopoly Committee Studies Factual Data . 6
Lawyers Rap FCC Procedure Started By McNlnch . 7
Piping Of Television Transmission Forecast . 7
Miller To Make Tour To Raise Copyright Fund .
Civic Interest Held Consideration In Radio G-rants
War-Time Danger To Communications Seen . 9
87,500 Finch Shares Put On Market . 10
Actors Settle Television Dispute Temporarily . 10
Westinghouse To Sell Time On Short-Wave Stations . 11
Free Facsimile Service Planned By Newspaper Chain . * . 11
No. 1175
CD CD
TELEVISION PROBLEM ECONOMIC RATHER THAl'I TECHInIICAL
With the release of the television report of Federal
Communications Commission's Television Committee this week, it
became apparent that the major obstacle to rapid television
development as a public service is the economic rather than a
technical problem.
Until the FCC acts on the three parts of the Committee' s
report and actually grants construction permits for new visual
broadcasting stations, it will be difficult to determine whether
or not the liberalized FCC rules are going to pave the way toward
economic stability for the industry.
Licensees have invested between $12,000,000 and
$15,000,000 to date in promoting television, but it is likely
that they will have to spend millions more before the art makes
any substantial financial return.
Until stations are constructed in scattered sections of
the country, however, networks cannot be established; and until
networks are set up, it is doubtful that the high cost of programs
can be so apportioned as to make television commercially feasible.
Program cost alone in New York City was found to be
$15,000 for a 12“*hour per week service. Yet, the Craven Committee
pointed out, the average cost of producing a motion picture is
$300,000 and hinted that television would have to step up, rather
than cut, its expenditures to compete.
"If television is to become a real public service", the
report added, "the licensees must be adequately financed and be
assured of an adequate revenue from the service rendered. "
A radio station in a small community can be constructed
for about $15,000 and program talent can be obtained for a few
hundred dollars a week. Not so with television. FCC officials
figure that at least $50,000 will be needed for the initial
investment and the cost of staging programs will run many times
that of radio.
The Radio Corporation of America, and its subsidiary.
National Broadcasting Company, have spent between $8,000,000
and $10,000,000 on television without any financial return, and
the Columbia Broadcasting System has invested $1,825,000 and
hasn't started broadcasting yet.
The question of who is going to pay for this highly
expensive art is disturbing both the FCC and the radio manufactur¬
ers who are taking the lead in promoting it. Obviously, the
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Industry hopes that television ultimately will reach the stage,
like radio, where the public foots the bill Indirectly by
patronizing the products advertised.
But advertisers, as a rule, are not so philanthropic as
to be willing to provide entertainment without reasonable assur¬
ance of financial returns. So that until a market of television
receiver owners is available, they are apt to be reluctant in
taking advantage of the liberalized rules of the FCG.
The public, on the other hand, is not likely to stampede
manufacturers with orders for receivers until television stations
and networks are established and regular programs of high caliber
are available.
The cost of television receivers will be cut shortly to
an average of $300 instead of $600, it is understood, as a lure to
prospective buyers. But FGC officials doubt even that price will
bring any volume sales until more stations are operating.
If the FGG follows the recommendations of the Graven
Committee, it will be careful to grant licenses only to appli¬
cants with adequate finances and experienced in public service.
Newspapers, broadcasters, and motion picture companies, if able
to qualify financially, would be considered capable from a public
service point of view, it is understood.
Establi slime nt of national networks, FCG officials
believe, will enable television broadcasters, once audiences are
built up, to present rather elaborate programs from a key sta¬
tion and then transmit them via relay or feeder units or other ^
means to affiliated stations. Whether even these will become
economically profitable remainds to be seen.
xxxxxxxxx
NEW NETWORK DUE TO START OPERATING JANUARY 1
The Transcontinental Broadcasting System, which was
organized in Chicago recently with the aid of Elliott Roosevelt,
is scheduled to begin operations January 1st with the backing
of the Blackett-Sample-Hummert , Inc., advertising agency.
Information as to the number of stations that will be
involved and the financia.l backing of the organization is not
available at this time. Stations are reported to have received
offers to affiliate on a basis of 30 percent of their card rates.
XXXXXXXXX
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11/17/39
CODE CONTROVERSY DWINDLES; COUGHLIN STILL TALKS
While officials of the National Association of Broad¬
casters were congratulating themselves this week that they had
avoided a crisis within the industry over the NAB Code ban on
controversial broadcasts, the Rev. Charles E. Coughlin, Detroit
priest, was still making his weekly radio talks on a substantial
hook-up of stations.
Only a handful of Coughlin’ s 44 stations were pledged
to drop the program although John Shepard, III, President of the
Yankee and Colonial Networks, which forms the nucleus of the
hook-up, had promised the NAB not to make any profit from the
broadcasts.
The Shepard capitulation appeared to Washington observ¬
ers to have helped the NAB little, except as a face-saver, as the
New England network operator has at no time said he would cut the
priest off his stations. Mr. Shepard said he would no longer
accept the broadcasts on an out-and-out commercial basis, but he
said he would take sufficient revenue to defray actual line and
overhead costs and if Fhther Coughlin refused to accept free time
he would turn over to charity the difference between "the payments
to stations and his expenses.
Meanwhile, the NAB looked hopefully to Vatican City for
some action that might force Father Coughlin to stop his radio
blasts. Pope Pius XII, in his encylical to the American Catholic
church, took a slap at Coughlin and gave rise to speculation that
he might take sterner measures if Father Coughlin continued his
ethereal harangues.
"We have learned with no little joy”, wrote the Holy
Father, "that the Marconi radio - marvelous invention and excel¬
lent image of the apostolic faith that embraces all mankind - is
frequently and advantageously put to use in order to insure the
widest possible promulgation of all that concerns the church. We
commend the good accompli she d^ But let those who fulfill this
ministry be careful to adhere to the directives of the teaching
church, even when they explain and promote what pertains to the
social^ problem ; forgetful of personal gain, despising popularity,
impartial, let them speak ‘as from God, before God, in Christ’."
The controversy continued as a subject for editorials,
with the Chi cago Tribune in a lead article raising the question
of "How Free is Ra.dio?"^
’’It is well understood that the broadcasters’ code of
ethics was drawn primarily to keep Father Coughlin off the air",
the editorial said. "And also it is generally understood that
one of Father Coughlin’s offenses, if not his principal offense,
was his violent criticism of Mr. Roosevelt's administration.
His ^intemperate remarks on other subjects, his radical and social
prejudices, presented a hard case for the freedom of speech to
defend. But nevertheless, such hard cases frequently test the
- 4 -
11/17/39
the ability of a people to keep their privileges. If Father
Coughlin had not been so obnoxious to the administration the
broadcasters might not have been so willing to suppress him. "
xxxxxxxx
STATIONS COOPERATE TO IMPROVE SERVICE; FCC APPROVES
An example of public benefit resultant from broadcast
stations working out mutual problems of power allocation was
cited by the Federal Communications this week as it granted
applications of Stations KTUL, WIRE and KLO for increased power
facilities.
The Tulsa Broadcasting Company, Inc. , operating KTUL
at Tulsa, Oklahoma; Indianapolis Broadcasting, Inc. , operating
WIRE at Indianapolis, Indiana, and the Interstate Broadcasting
Corporation, operating KLO at Ogden, Utah, are the stations who
cooperated to improve service in those areas.
The three stations were each operating with 5 kilowatts
day and on« kilowatt at night. Each wanted to increase its night
power to five kilowatts. But they couldn’t do that independently
without interfering with one another. So they got together and
worked out technical details whereby, through the use of direc¬
tional antenna, they will minimize the interference problem and,
at the same time, be able to extend their respective services.
When the joint arrangement was presented to the Com¬
mission it was approved without delay. The case is typical of
mutual effort of other broadcasters who, by using modern engi¬
neering methods, are able to improve broadcast quality and
coverage, the FCC observed.
XXXXXXXX
COLIPOSER SAYS RADIO AIDS MUSIC APPRECIATION
Albert Spalding, American violinist-composer, believes
that radio is increasing music appreciation rather than under¬
mining it, he stated in an interview while appearing for a concert
in Washington this week. He said the radio is increasing music
appreciation, just as the printing press brought about the democ¬
ratization of literature.
"I have no doubt, that when the first printing press
was set up, there was a great outcry from the long-hairs about
the vulgarizations of the arts”, he said.
XXXXXXXXXX
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11/17/39
MONOPOLY COMMITTEE STUDIES FACTUAL DATA
The Federal Communications Commission’s Monopoly Com¬
mittee is preparing to start consideration of the problems of
chain broadcasting as adduced during more than six months of
public hearings. The factual report on which the staff of the
Commission has been working for months, it was said, will be com¬
pleted, and will be submitted to the Committee, This report will
not contain any recommendations, but will merely lay before the
Committee the staff’s conclusions as to what the evidence has
indicated.
This reoort will not contain any reference to the
investigation ordered by the Committee into the broadcasting of
the World Series baseball games. It was said that this will be a
matter of supplementary investigation and report after all of the
radio stations have answered the questionnaire which was sent out
by the Commission and the returns on which are to be in the hands
of the Commission by closing hours next Wednesday.
This inquiry will bring up the question of exclusive
contracts of chain stations. There is a view in some sections of
the Commission that the exclusive contracts prevent radio broad¬
cast licensees from performing their duty to the public in serving
their particular communities when they contract to sell their time
to the chains, and it is contended that the baseball broadcasts
will serve to bring out this point.
There is little doubt that the Committee will have con¬
siderable to say along this line and this is based on the trend
of questions during the course of the inquiry and the subsequent
action in calling for the information about the baseball broadcasts.
There is a view in the Commission that as the frequen¬
cies used by broadcasting stations vest in the Government and are
loaned to the broadcasters for specified periods to service their
communities, that in granting or selling time to the chains they
are not carrying out the contract involved in the grant of the
license. On the other hand, it was pointed out thet there is a
view that the chains permit the stations to serve the public inter¬
est because they provide programs for the smaller communities
which the stations in these areas could not provide alone, because
of the lack of talent in the areas they serve and the great ex¬
pense that would be involved in bringing it in.
The action of the Committee is being awaited with a
great deal of interest in the industry, which expects recommenda¬
tions of some changes in the system. However, the Committee’s
report will have to come before the full Commission before any
action is taken, either in changing the rules of the Commission
or recommendations for legislation either is found needed or
desirable.
XXXXXXXX
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11/17/39
LAWYERS RAP FGG PROGEDURE STARTED BY McNINGH
Caustic criticism of the system of conducting prelimin¬
ary hearings that was introduced by former Chairman Frank R.
McNinch of the Federal Communications Commission was voiced this
week by Washington radio attorneys at an informal discussion in
the U. S. Chamber of Commerce.
Constituting one of the sessions of the Washington
Institute of Administrative Law, a division of the American Bar
Association, the attorneys picked many flaws in the present FCC
procedure, charging it with retarding cases and irregular legal
practices.
Louis G-. Caldwell, Duke Patrick, and R. A. Van Orsdel
were among the chief speakers.
One speaker told the story of a designated examiner
who, while hearing an attorney, interjected the comment, "Objec¬
tion sustained".
"Who objected?" asked the amazed lawyer.
"I did", replied the examiner.
Mr, McNinch abolished the Examining Division of the
FCC in connection with his famed "purge" and apparently to get
rid of the Chief Examiner, Davis G. Arnold, whom he could not
otherwise dismiss.
xxxxxxxxx
PIPING OF TELEVISION TRANSMISSION FORECAST
Television networks may be nothing more than water
pipes, Kenneth Jarvis, consulting engineer of Winnetka, Ill. ,
told members of the Institute of Ra.dio Engineers at Rochester,
N. Y. , this week.
Experiments with a mile-long pipe, three-quarters of an
inch in diameter and filled with xmter have •proved it to be more
efficient than a telephone line for transmission, Mr. Jarvis said.
"A way has been found of keeping the electrical waves
within the pipe which can be bent to go around comers or over
hills", he explained. "The system is much cheaper than the
coaxial cable which is the only system of network transmission
now available. "
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11/17/39
MILLER TO MAKE TOUR TO RAISE COPYRIGHT FUND
Neville Miller, President of the National Association
of Broadcasters, will make a whirlwind trip around the country,
beginning next month, in an effort to raise $1,500,000 from
broadcasters to establish a supply of music for the NAB and thus
free the industry from dependence upon the American Society of
Authors, Composers and Publishers.
Carrying on their anti-ASCAP fight, NAB officials felt
more confident this week because of support from NBC and CBS as
expressed in a statement Included in the registration statement
filed by Broadcast Music, Inc. , the NAB agency, with the Secu]>-
ities and Exchange Commission.
The networks said they would approve the principle of
copyright clearance at the source "when an economically and
legally feasible method of so clearing can be devised which is
not unduly burdensome to the said networks in comparison with
their present method of operation and payment. "
xxxxxxxx
CIVIC INTEREST HELD CONSIDERATION IN RADIO GRANTS
The words "public necessity" in the Communications Act
"are not to be construed narrowly, but rather as calling for the
most widespread and effective broadcast service", declared the
Federal Communications Commission in granting application of
F. W. Meyer for construction permit for a new broadcast station
in Denver, Colorado.
The Commission explains:
"Nothing in the Communications Act, our Rules and
Regulations or our policy requires a finding of a defin¬
ite need to support the grant of an application. Cases
where such a finding of need is not made are, however,
to be distinguished from situations in which a real lack
of broadcast service is made clear. ... In the latter
class of oases the Commission will give due considera¬
tion to this fact. The 'public interest, convenience or
necessity' which the statute provides as the basis for a
grant, cannot be construed as a mandate that actual nec¬
essity for the particular facilities must be shown.
Neither the disjunctive form nor the public convenience
as an independent factor is to be entirely ignored. In¬
deed the words 'public necessity' in the Act are not to
be construed narrowly, but rather as calling for the most
widespread and effective broadcast service possible."
- 8 -
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Opposition to granting the application argued that no
public need is shown for additional broadcast facilities in
Danver. All of the stations operating full time in that city
are affiliated with the national chains. Thus the hours during
which these stations may reach the greatest number of listeners
are not available for local broadcasting. Local governmental,
educational, civic, charitable, and co.mraunity organizations thus
lack an effective means of reaching the radio public in the
vicinity.
The Meyer station proposes to operate on 1310 kilo¬
cycles with power of 100 watts at night and 250 watts until local
sunset, unlimited time.
The application vjas denied originally on May 18, 1939.
Subsequently, the applicant filed a petition for rehearing, which
was granted and the case was reargued November 9th last. Under
all the circumstances and evidence presented, the Commission Con¬
cludes that "public interest, convenience and necessity" will be
served by granting the application.
XXXXXXXXXX
WAR-TIME DAlvIGER TO GOmUNICATIONS SEEN
If hostilities in Europe are begun on a major scale,
one of the first and biggest objectives is expected to be an
attack on communications, the ramifications of which might extend
to the cutting of trans-oceanic cables and sabotage of radio
telegraph stations in this country which communicate with Europe,
Rear Admiral Luke McNamee, U. S.N. retired, a former chief of the
Office of Naval Intelligence, told the Federal Communications
Commission last week.
Admiral McNamee, as President of the Ifeckay Ra.dio &
Telegraph Co. , testified at a hearing before Commissioner Fred¬
erick I. Thompson in an effort to convince the Commission his
company should be allowed to retain frequencies for radio com¬
munication between Madrid, Paris and Berlin.
Warning that the real wa.r has not yet broken out.
Admiral McNamee pointed out that radio was in its infancy during
the World War and that the central powers were not interested then
in cutting the cables because they were using them. Now, he testi¬
fied, they are using radio as an efficient means of direct com¬
munication and it may well be made the subject of attack.
The retired officer argued that it was most important
that this Government allow all available radio frequencies to
remain operative, even though the licensees were not able to use
them because of inability to make contracts with the stations
abroad. He explained that Mackay was negotiating with agencies
in the three European points concerned and that for the Federal
Communications Commission to withdraw the licenses might well be
taken by the governments of France, Spain and Berlin as an evi¬
dence that this Government did not want to increase its direct
communication with them. He said retention by Ma.ckay of the
frequencies in question would bolster the preparedness of the
country, explaining that to remove them would leave "our radio
eggs in one basket. "
XXXXXXXX
- 9 -
11/17/39
87,500 FINCH SHARES PUT ON MARKET
Distributors Croup, Inc. , of New York City, offered
this week to the public 87,500 shares of Finch Telecommunications,
Inc., common stock at $5 a share. The proceeds are to be used by
the company for the purchase and installation of additional mach¬
inery, expansion of sales and advertising, for research and
development and for additional working capital and general cor¬
porate purposes. The corporation' s capitalization consists of
276,100 authorized shares of common stock, of which 231,100 shares
will be outstanding upon completion of the present financing.
Fbcsiraile communication, according to the prospectus,
is the transmission over radio, telephone or wire circuits of
any material which can be recorded on paper, such as writings or
printing, drawing, charts, maps and photographs, an exact copy
or facsimile being reproduced and recorded by the receiving
apparatus .
Finch Telecommunications, Inc., incorporated in 1935,
is engaged principally in developing, manufacturing and selling,
and of licensing others to manufacture, use and sell, apparatus
and equipment for facsimile communication under patents owned by
the company.
William d. H. Finch, President of the company, has been
Identified with developments in facsimile communication since the
World War, when he was engaged in developing systems for remote
artillery fire control.
XXXXXXXX
ACTORS SETTLE TELEVISION DISPUTE TEIviPORARILY
The controversy over television jurisdiction has been
settled temporarily. Actors Equity Association apparently losing
its sole control of the field, the New York Times reoorted this
week.
A committee of fifteen emoowered to negotiate contracts
for six months has been recruited from Equity, the American
Federation of Radio Artists and the Screen Actors G-uild, which
are branches of the Associated Actors and Artists of America.
A sub-committee concisting of George Heller of A. F. R.A. ,
Walter N. Greaza of Equity and Stephen Kent of S.A. G. , will
assume active management of the jurisdiction.
XXXXXXXX
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11/17/39
WESTINGHOUSE TO SELL TIIJE ON SHORT-WAVE STATIONS
Following the lead of Crosley Corporation and the National
Broadcasting Company, the Westinghouse Electric & Manufacturing
Co. , announced this week that its international stations, WRIT,
Pittsburgh, and WBOS, Boston, are now available to advertisers.
The change from experimental classification to commer¬
cial status for short wave broadcasting results from a recent
ruling of the Federal Communications Commission.
''Thousands of letters received at WRIT over the long
period of years attest public appreciation of a service which
Westinghouse inaugurated in the early years of radio", said
Walter Evans, manager of the company's Radio Division. "Negotia¬
tions are already under way with several advertisers who are
interested in programs reaching a foreign audience established
over a period of 16 years. "
Mr. Evans announced that F. P. Nelson will be in active
charge of programming and promotion of sales for the two inter¬
national stations, with headquarters at the company's Radio
Division in Baltimore. Mr. Nelson has been associated with the
Advertising Department of the Chicago Tribune , the National Broad¬
casting Company at Chicago and more recently with the Radio Depart¬
ment of Blackett, Sample & Huraraert.
XXXXXXXXX
FREE FACSIMILE SERVICE PLANNED BY NEWSPAPER CHAIN
Guy C. Hajnilton, Vice President and General Manager of
the McClatchy Newspapers, whose subsidiary broadcasting company
has sent a facsimile newspaper into hundreds of California homes
since last February as an experiment, believes that this field of
radio "is a service to the public that the newspaper, by training
and experience in the dissemination of news, is best fitted to give".
Interviewed in New York last week during a business trip,
Mr. Hamilton told Editor & Publisher that the McClatchy newspapers
ere prepared to give the public facsimile nev'spapers without charge
next year should technica.l developments place a sufficient number
of receivers in the areas served by the Sacramento Bee. Fresno Bee,
and Modesto Bee.
"We a.re not in radio or facsimile trying to make a pro¬
fit", he emphasized. "Our only interest is the promotion of our
newspapers, and the resulting prestige and good will that can be
built up.
"Facsimile is a service we can easily give because we
are in the business of disseminating news and if it is demon¬
strated by this experiment that the public is interested enough to
buy the recorders, we will continue to give the service to the
public without charge."
XXXXXXXX
- 11 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
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INDEX TO ISSUE OF NOVEMBER 21, 1959
Congressional Fight Over Rp.dio Code Expected . 2
Independents Plan Permanent Organization . 3
’’Radio Christmas” Urged By NAB And RMA . 4
FCC Upheld In Regional Power Case . 5
Newspapers Warned To Cet Hold In Television . 6
Super-Power Stations Operate In Mexico . 7
Broadcast Station Total Passes 800 Mark . 7
Engineer Can Now Tune In Caboose .
British Broadcast To Own Troops In France
Trade Notes . 9
Market Quota>.tions Short-Waved To Far East . 11
State Holds Network Subject To Damage Suit . 11
Cuban Imports Of Radio Decline In 1939 . 11
No. 1176
00 00
November 21, 1939.
CONGRESSIONAL FIGHT OVER RADIO CODE EXPECTED
Although the broadcasting industry itself apparently
has become reconciled to the NAB Code ban on sponsorship of
controversial radio talks, Washington observers believe that the
issue will pop up again with renewed vigor when Congress convenes
With the National Committee to Uphold Constitutional
Government taking the lead in a demand for Congressional amend¬
ment of the Communications Act, a general row over threats of
radio censorship, either from the Government or the industry may
be expected.
The Code was the subject of an open forum discussion
Sunda.y over the Mutual Broadcasting System with General Hugh
Johnson, Morris Ernst, liberal lawyer, Ed Kirby, of the National
Association of Broadcasters, and Martin Codel, of Broadcasting
Magazine . participating.
NAB officials this week distributed copies of a syndi¬
cated column by Joseph Alsop and Robert Kintner, of Washington,
on the significance of Pope Pius' reprimand of the Rev. Charles
E. Coughlin, Detroit radio priest.
The columnists said that the new development might
save the NAB Code "from the difficulties in which Coughlinite
opposition is involving it".
"If the radio industry's self- regulatory effort
should fail, however, it must also be remembered that the Federal
Communications Commission can step in", they write. "Cliairman
James L. Fly is known to believe that radio propagandists must
be dealt with somehow, and it is understood that, if the Code
breaks down, the FCC will consider transforming the Code rules
into binding Commission regulations.
"Many suppose (wrongly) that the FCC is foreclosed
from effective action because the President's son, Elliott Roose¬
velt, is strongly against the Code. He has even denounced it on
the air, in a long passage Interpolated into one of his regular
broadcasts of news comment after the script had been approved by
the unsuspecting Mutual Broadcasting System.
"Actually, however. Chairman Fly has discussed the
President's son with the President himself. The President has
told Fly, on several occasions, that he need pay no attention to
young Roosevelt, and, if anything, his views carry less weight
at the FCC than those of other station managers of equivalent
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Importance. Furthermore, the President heartily favors the
NAB Code which his son has attacked. Altogether, the chances
appear to he good for settling the question of air propagand¬
ists once and for all, and in the rather near future. ”
Editor & Publisher in a follow-up discussion of the
issues involved commented:
“The code is well-intentioned. It was aimed to stop
the abuse of the public’s air by people like Father Coughlin
and his opponents by giving the individual station owner a
strong line of retreat - ’Sorry, gentlemen, I'd like to accom¬
modate you, but our code doesn't permit it.'
"Station owners, like the rest of us, favor free
speech in principle but cry out when it is used to promote ends
they regard as hateful. Many of them welcomed the opportunity
to deny the air to programs far more objectionable than the rows
between Father Cou^lin and the professional spokesmen for Jewry
but, despite all the 'practical' arguments for their viewpoint
we believe that association censorship is a fundamental and a
grievous mistake. We haven’t heard the last of it."
xxxxxxxxxxxx
INDEPENDENTS IPLM PEFJJIANEMT ORGANIZATION
With a membership of some 50 local independent sta¬
tions enrolled as members for a six-month period, National
Independent Broadcasters is moving forward toward establishment
of a permanent organization to look after the welfare of non¬
network affiliated stations, according to Harold A, Lafount,
former Radio Commissioner, and President of the organization.
Mr. Lafount said the independent organization is being
incorporated, but until that is accomplished nothing will be
done in the way of establishing offices with full-time help.
While preliminary thought has been given to retention of a paid
executive for NIB, he indicated this move probably was months
away.
Because of the present status, there is little immediate
likelihood of selection of a paid executive head for the Associa¬
tion. Mention previously had been made of James W. Baldwin,
former Managing Director of the NAB, for that post. So far as
could be ascertained, no commitment of any kind has been made and
the field was described as "wide open".
The post of Secretary-Treasurer of NIB at present is
being held temporarily by Lloyd Thomas, KGFW, Kearney, Neb.
Edward A. Allen, WLVA, Lynchburg, fomier NIB president, is Vice-
President of the organization. A scale of dues for independent
stations ranging from ^3 to $15 per month was set upon reorgani¬
zation of NIB at a special convention held in Chicago Sept. 15,
coincident with the NAB special copyright convention,
XXXXXXXXX
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11/21/39
"RADIO CHRISTMAS" URGED BY NAB AND RMA
A new promotion campaign to replace old radio sets
with new ones and to increase listening is being sponsored
jointly by the National Association of Broadcasters and the
Radio Manufacturers* Association. It is called "Radio Christmas"
Stations will encourage owners of old receivers to
turn them into a headquarters in each community for recondition¬
ing and distribution among underprivileged families. NAB also
has suggested that stations ask local electric utility companies
to insert in December advertising and in a staffer in monthly
billings a plug for new or additional radio sets in each family
as well as promotion of early morning and late evening programs.
It was pointed out that increased listening during these periods
would materially increase the current load and result in increas¬
ed return to the utility.
Under the "Radio Christmas" plan, as outlined by the
NAB, the stations, local servicemen and parts jobbers would co¬
operate in the collection and repair of the old sets, assisted
by set distributors, welfare organizations and local newspapers.
An outline of the suggested plan as sent to NAB members, follows:
(a) Broadcast first announcement of "Radio Christmas"
about Nov. 26, requesting listeners wishing to contribute an old
radio set to telephone a central number.
(b) Names received via telephone distributed among
servicemen, with proximity to serviceman's location as guide.
(c) Servicemen pick up sets from donors in person,
thus gaining the contact with set owners they desire, at the
same time collecting listening data valuable to broadcasters.
( d) Sets then picked up from various servicemen's
stores and delivered to central location for repairs - either neiArs
paper or jobber trucks to do this as part of their contribution.
(e) Establish repair headquarters in a prominent
location, i.e., a vacant store building, identifying the loca¬
tion with signs and posters.
( f) Leave arrangement for handling of repair work to
discretion of servicemen, explaining that a tried and proved way
is for servicemen to volunteer so ma.ny hours per da.y for repair¬
ing the sets. Then the chairman of the group can arrange work
in relays to insure activity at headquarters both afternoon and
evening.
( g) Among the sets received a majority probably will
be beyond repair, but many parts can be used to repair the
better sets "donated, thus making the parts jobbers' contribu¬
tion of new parts relatively small.
4
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(h) As sets are repaired stack them where they can
be seen by the public. Complete all repair work by Dec. 20 at
the latest, and immediately afterward have the organization
which is to distribute the sets pick them up and start deliveries.
xxxxxxxxxx
FCC UPHELD IN REGIONAL POWER CASE
The Court of Appeals of the District of Columbia last
week dismissed the case of WLAC, Nashville. This was an appeal
from a decision of the Federal Communications Commission of
May, 1938. The Commission denied rehearing to WLAC on its
granting of an application of WMEX for a construction permit to
operate on 1470 kilocycles, 5000 watts, unlimited time using a
directional antenna. WLAC appealed because of the alleged fail¬
ure of the Commission to make findings with respect to inter¬
ference WMEX would cause to WLAC. WLAC operates on 1470 kilo¬
cycles, 5000 watts, day and night.
This is a companion case to the Yankee Network case
rendered by the Court, and arose out of the same proceeding.
In its conclusions in this case the Court said:
"We have said that if the Commission's prior consider¬
ation of a previously filed and copending application - where
request has been made for Joint consideration - has ’ seriously
prejudiced* an application we would have a case in which we might
say that the latter applicant has an appealable interest as a
person aggrieved. However, we cannot say, under the circum¬
stances of the present appeal, that appellant has been prejudic¬
ed as a matter of law. The Commission's rule, penmitting a Joint
hearing of pending applications, is certainly a reasonable one.
As appellant, full-handed with knowledge of the situation, failed
to request such a Joint hearing, he is in no position to demand -
and we have no power to require - that the Commission suspend
its normal functions and reopen its proceedings in order to deter¬
mine the large questions which he seeks now to have determined.
For, indeed, large and important questions will be involved in
determining whether the Commission* s Rule 119 should be amended
and kilocycles frequency 1470 reallocated for clear channel pur¬
poses; whether the classification of Station WLAC should be
changed from a regional to a clear channel station; whether
Station WLAC should be required to install directional antenna;
whether Station KGA should be permitted to change its frequency
from 1470 to 950 kilocycles; whether or not - and if so to what
extent - the Commission should integrate into its rules the
'Standards of Good Engineering practice* or provisions of the
Havana Treaty.
"So long as the Commission complies with the mandate
of the statute it has, and should have, wide discretion in deter¬
mining questions both of public policy and of procedural policy,
- 5 -
11/21/39
and in making and applying appropriate rules therefor. It is
not the function of this Court to direct the Commission as to
the routine of its administrative procedure, so long as it con¬
forms to the law. No violation of law is revealed by the
record or shown by appellant.
XXXXXXXXX
NEWSPAPERS WARNED TO GET HOLD IN TELEVISION
Newspaper publishers were warned last week not to be
caught "flat-footed" by the commercialization of television, as
they were by radio, in an editorial of Editor & Publisher on
the Craven Committee report.
"if television reaches the stage where combined
sound-and- sight programs can be broadcast on a scale comparable
to that of the present top-flight programs, considerable dis¬
location of present advertising methods can be expected", the
editorial said. "There may be a repetition of the scramble from
other media to the brilliant newcomer, with a probable result
that two, or at most three, programs will dominate the air to
the complete shut-out of all contemporary offerings. That has
been noted in commercial broadcasting, and we believe that it
constitutes a definite limit on the expansion of broadcasting as
a major advertising medium.
"But commercial exploitation of television will come,
beyond doubt, and its arrival will not be marked by new advertis¬
ing appropriations, but by diversion of funds from other media.
Immediacy will be the natural appeal, which will make sound broad¬
casting and daily newspapers the principal objects of competi¬
tion, With years of forewarning, newspaper should not be caught
flat-footed as they were by the radio craze - and we don’t
believe they will be. "
The Washington Post this week in an editoria,! on the
Craven report, expressed gratification that limited sponsorship
is to be permitted but suggested that more commercialization
might be desirable.
"It does not appear that mere restraints are adequate
to protect the public interest in television", the Post said.
"A previous report to the FCC pointed out that ’television tech¬
nology stands at approximately the same point on its road of
development as did the automobile business immediately prior to
the advent of mass production’. Receiving sets are expensive.
Equipment purchased now may soon be obsolete. Yet if commercial
programs continue to be forbidden and if very little equipment is
sold, the industry may be arrested before its possibilities can
be reasonably ascertained.
6
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"In drawing the analogy between television and the
infant automobile industry the investigators failed to note that
it was the public demand for automobiles that brought about mass
production and made subsequent improvements possible. A com¬
parable development in television may be expected only if it is
permitted to sell its services to the public,
"The high cost of automobiles and radio receiving sets,
when they were first offered to the public, did not prevent im¬
provement of those inventions and gradual reduction of costs.
Perhaps the FCC has been too much concerned over the protection
of individuals inclined to purchase television sets and too little
concerned over the transition of this invention from the experi¬
mental to the commercial stage. In any event, it is encouraging
to see the Craven committee taking a more progressive view. "
xxxxxxxxx
SUPER-POWER STATIONS OPERATE IN MEXICO
Three super-power broadcasting stations are operating
in Mexico and none in Canada, according to a list of stations in
both countries just released by the Federal Communications Com¬
mission.
The Mexican stations which exceed in power any of the
50,000 outlets in the United States are; XERA, Villa Acuna,
which is authorized to use 250,000 watts but actually operates
with 180,000; XEW, Mexico City. 100,000 watts; and XEAW, Reynosa,
100 , 000 watts. ' — —
Mexico has 104 licjanaed stations-, four of which are
temporarily suspended, while Canada has 85, the highest power
being 50,000 watts.
xxxxxxxx
BROADCAST STATION TOTAL PASSES 800 MARK
There were 809 licensed broadcasting stations in the
United States of of November 1st.
During October, the Federal Communications Commission
issued operating licenses to eight stations. The Commission
granted eleven permits for the construction of new stations and
cancelled two construction pennits which it had previously grant-
ed.
XXXXXXXX
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11/21/39
ENGINEER GAN NOW TUNE IN CABOOSE
A two-way radio communication system has been install¬
ed by the Bessemer & Lake Erie Railroad on one of its long,
rumbling freight trains.
This new equipment will enable the engineer and con¬
ductor to talk back and forth between the cab and caboose while
low-frequency radio waves carry their voices through the steel
rails. Even though hundreds of car wheels may be grinding and
thumping along, the voice reproduction is said to be sharp and
clear.
The system is based upon research extending over
several years, particularly with respect to an experimental
set still in use on one of the Bessemer & Lake Erie freights.
So far the railroad, a United States Steel subsidiary, is believ¬
ed to be the only carrier making use of such an innovation, but
company engineers think it is ’’worth all it costs".
Aside from increasing safety, the communication system
was believed to lower operating costs through reduction in lost
time. On a 125-car freight such as the B. & L. E. often runs,
it's quite a problem for the engineer and conductor to go into
a huddle on some question of operation. That's because trains
of that length are slightly more than a mile from engine to
caboose. The carrier wave communication system ends all such
tiXDuble.
When the conductor wants the engineer to stop a train
equipped with the system, he simply presses a button and speaks
into a microphone and almost at the same instant a loud-speaker
booms out above the engineer' s head. Then when the engineer
wants to reply, he presses a button in the cab likewise. To
listen, he merely lets go of the button which normally is set
for receiving.
xxxxxxxxx
BRITISH BROADCAST TO OWN TROOPS IN FRANCE
A daily broadcast especially for the British troops in
France was introduced into the British Broadcasting Company's
Horae Service programs recently. It consists of a short sum.mary
of the day's programs, and has been designed in the hope that
it will enable troops using battery-operated receiving sets to
save current by selecting only those program items that aopeal
to them.
xxxxxxxx
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11/21/39
• • • • •
: : : TRADE NOTES : :
* • # t •
• • • • •
W. A. Winterbottom, of R. C.A. Communications, Inc.,
and Frank C. Page, of International Telephone & Telegraph Co. ,
were appointed on the Telegraph Committee of the New York
Merchants’ Association last week. Other members of the Committee
are Henry Meyer, C. W. Hopkins, C. 0. Pancake, C. E. Thompson,
D. F. Webster, J. C. Wellever, and J. T. Wilson.
Sterling Fisher, Columbia’s Director of Education,
has called a conference of Columbia's Eastern educational
representatives for December 1, at Columbia’s headquarters in
New York. The conference will discuss future educational
plans for the Netv/ork. The entire group will be guests of Mr.
Fisher at lunch and dinner, and will watch a performance of
the "This Living World" portion of the American School of the
Air, held at one of New York’s high schools. Mr. Fisher, who
previously had held a similar conference with Columbia’s mid-
West educational directors at Chicago, plans to confer with
Columbia's regional educational leaders throughout the country,
in a series of conferences.
Effective January 1, 1940, Station WSPD, at Toledo, 0. ,
will become a basic Red Network station of the National Broad¬
casting Company. WSPD has heretofore been optional with
advertisers using the Blue and Red networks of NBC.
Paul Dullzell, Executive Secretary of Actors Equity
Association, fomally denied Saturday that his union had sur¬
rendered sole control over television performers. He insisted
that the Committee named to prepare contracts which would be
good for six months had only the power of consultation and not
of administration. Besides Equity officials the Committee con¬
sists of representatives of the American Federation of Radio
Artists and the Screen Actors G-uild, which had been at odds
with the stage union over the jurisdiction.
Station KOWH, Omaha, Neb., has become affiliated with
the National Broadcasting Company as a supplementary outlet
available to advertisers purchasing the facilities of the NBC
basic Blue Network. KOWH is the 179th NBC affiliate.
Station WALR, Zanesville, 0., will change its call
letters to WHIZ as of Sunday, Nov. 19, and became a supplement¬
ary ^affiliat of the NBC Blue and Red Networks - the 180th NBC
affiliate. OY/ned and operated by the WALR Broadcasting Corp. ,
the station is a 100-watter, operating on a frequency of 1210
kilocycles.
9
11/21/39
To assist in extending NBC commercial international
service to Latin-American and European countries, L. P. Yandell,
executive of the Ra.dio Corporation of America, has been assign¬
ed temporarily to the National Broadcasting Company, accord¬
ing to Niles Trammell, NBC Executive Vice President. Mr.
Yandell will be in charge of all commercial activities in con¬
nection with the NBC short-wave broadcasting.
Promotions in both Columbia Artists, Inc. , and Columbia
Management of California, Inc., have been announced, effective
immediately. Herbert I. Rosenthal, General Manager of Columbia
Artists, has been appointed Executive Vice-President of that
organization. I. S, Becker, Business Manager, has been made
Vice-President, retaining his present activities. Murry Brophy
has been given the position of Executive Vice-President of
Columbia Management of California. He has been Managing Dir¬
ector. Rudolph Polk has become Vice-President. The positions
in both organizations are newly created.
Rubey Cowan, formerly associated with the NBC Artists
Service, and more recently with Paramount Pictures at their
West Coast studios, will return to the staff of the NBC
Artists Service effective December 1st, according to George
Engles, NBC Vice-President and Managing Director of the Artists
Service. Mr. Cowan will handle vaudeville, motion picture and
television bookings in his new post.
Radio Wire Television Corp. of America has announced
that John E. Otterson, President, has disposed of his interest
in the company and is no longer connected with the management.
A. W. Pletman, Vice-President, has taken over managerial control
of all the company’s affairs effective immediately.
Private James J. Kelley, who more than any other man
was responsible for the Washington police radio system, has ap¬
plied for retirement.
Designer and builder of WPDW, the Washington police
radio, Mr. Kelley was termed "one of the best radio men in the
country" by Inspector L. I. H. Edwards, Assistant Superintendent
of Police, who said he saved the District $100,000 by his know¬
ledge and ingenuity. He also arranged for two-way radio communi¬
cation with Maryland police.
xxxxxxxxxx
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11/21/39
MARKET QUOTATIONS SHORT- WAVED TO FAR EAST
For the first time in history, New York Stock Exchange
quotations and those of leading commodity exchanges are being
broadcasft daily by short-wave to the Far East.
In stock exchanges in the Orient, including those at
Manila, Shanghai and Hong Kong, American and British business
men have installed special receiving equipment to hear the lat¬
est reports from Wall Street. And since the start of the broad¬
casts, trade in American securities and commodities in the Orient
has shown a decided increase.
The broadcasts were arranged by the new General Electric
international broadcasting station KGEI, on Treasure Island in
San Francisco Bay. This station, the sole short-wave broadcast¬
ing station west of the Mississippi, is the only United States
station whose programs are regularly received in Asia.
xxxxxxxx
STATE HOLDS NETWORK SUBJECT TO DAMGE SUIT
The Washington State Supreme Court held Saturday at
Olympia that the Columbia Broadcasting Company was dealing in
interstate commerce and could be sued in the State of Washington.
In a 4 to 1 opinion, the high court denied a writ of prohibition
by which the company sought release from King County Superior
Court on Jurisdictional grounds.
The action started when the Waldo Hospital Association
filed suit seeking to recover da.mages for an allegedly defama¬
tory broadcast originating at the St. Louis affiliated station
and broadcast over Seattle Station KIRKO.
xxxxxxxxxx
CUBAN IMPORTS OF RADIO DECLINE IN 1939
Cuban imports of radio sets during the first nine
months of 1939 numbered 13,669 units, with a total value of
257,310 pesos, as compared with 15,067 sets, valued at 361,672
pesos, entered during the corresponding period of 1938, accord¬
ing to the American Commercia.l Attache at Havana.
Imports of Netherlands sets during the first nine
months of this year numbered 1,981 valued at 31,462 pesos, as
compared with 1,674 units V8.1ued at 34,070 pesos, during the
corresponding period of last year.
xxxxxxxxx
11
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
5-^
INDEX TO ISSUE OF NOVEMBER 24, 1939
War Outbreak Fails To Halt U. S. Radio Exports . 2
C.P. Licensee Threatened With Recall By FCC . 3
FTC Closes Case Against Three Radio Firms
RMA Directors To Consider Xnas Radio Promotion...
Radio Stations Watched On Race Track Reports .
S-W Listening Growing In Mexico .
Stricter Control Of Temporary Authorizations Seen
Stuttering On Air Hit By Speech Teacher .
Radio Laison Council Organized In New England..,.
Community Listening Encouraged In Germany
Trade Notes . 9
Radio Has Loud Voice, Weak Heart, Says Editor . 10
Change In Big Ra.dio Ad Budgets Forecast. . 11
No. 1177
lOLO <£) £>- 00 00
WAR OUTBREAK FAILS TO HALT U.S. RADIO EXPORTS
Despite the outbreak of the European war, United States
radio exports continued to climb in September and actually set a
new high mark for receiving set sales abroad, according to a com¬
pilation by th*e Electrical Division of the Bureau of Foreign and
Domestic Commerce.
The receiving set exports valued at $1,033,200 establish¬
ed an all-time high, while total radio exports, amounting to
$1,995,646, were the largest of any month during 1939. Radio
exports for the nine months ending with September, totalled
$15,368,091, only slightly below those for the corresponding per¬
iod in 1938.
Brazil was the largest purchaser of American radio equip¬
ment, valued at $140,581. Mexico and the Union of South Africa
were the next most important markets, receiving shipments valued
at $96,941 and $91,404, respectively. G-reat Britain imported
$89,980 worth of American-made products, while other important out¬
lets for this class of merchandise were found in Colombia, British
India, Venezuela, Philippine Islands, Chile and Peru. Shipments
to these markets varied at between $33,000 and $67,000.
G-reat Britain, Canada, Argentina, and Brazil were the
foremost purchasers of radio receiving tubes; shipments to these
nations being valued at $45,426, $38,130, $37,136, and $35,917,
re spective ly .
Whe war caused great dislocations in foreign radio
markets, the Radio Manufacturers' Association noted. The September
Government report showed a "zero'* for radio exports to Germany,
usually small, together with great decreases (from the preceding
month) in American radio exports to Belgium, France, Netherlands,
Norway, Sweden, and also Canada., Turkey, and the Philippine
Islands. Large increases during September were shown in radio
exports to United Kingdom, Ireland, Portugal, Switzerland, Greece,
and the Latin American countries, especially Mexico, Cuba, Brazil,
Venezuela, Guatemala, Nicaragua, and Panama, and also increased
exports to British India and the Union of South Africa. The
usually small exports to Soviet Russia were noraal. No September
shipments to Spain were recorded.
Receiving set exports for the nine months ending last
September totaled $7,140,609 compared with $6,914,979 for the nine
months ending September 1938. Set exports last September number¬
ed 52,897 valued at $1,033,200, against 41,218 sets valued at
$802,154 in August and compared with 37,385 sets valued at
$876,691 in September, 1938.
2 -
11/24/39
Radio tubes exported during the nine months ending
September 1939 were valued at $2,139,808 compared with $2,030,943
during the nine months ending September 1938. Tube exports last
September numbered 746,109 valued at $295,120, compared with
exports of 719,781 tubes valued at $258,657 during the preced¬
ing month of August, and with September 1938 exports of 474,716
tubes valued at $198,402.
Radio parts and accessory exports during the nine
months ended last September totaled $3,843,652 compared with
$4,785,200 during the comparative nine months of 1938. Parts
and accessory exports last September totaled $439,105 against
$484,203 in September 1938.
Loud speaker exports were valued at $448,225 during the
nine months ended September 1939, against $510,520 during the
comparative nine months of 1938. Loud speaker exports last
September numbered 22,645 valued at $31,066, compared with
31,529 valued at $47,437 in September 1938.
XXXXXXXXX
C.P. LICENSEE THREATENED WITH RECALL BY FCC
The Federal Communications Commission for the first
time this week directed the recipient of a radio broadcasting
station construction permit to show cause why the authority
should not be recalled. The ground given by the Commission was
that the concern involved, the Kentucky Broadcasting Co. , is not
financially qualified to construct and operate the proposed sta¬
tion in the public interest
The issue was raised when the Kentucky company peti¬
tioned the Commission for a rehearing in the case of the North-
side Broadcasting Corp. , of New Albany, Ind. , which had been
granted a permit for increased facilities. The Northside sta¬
tion already is on the air.
The Kentucky corporation told the Commission the grant
to the other company "would result in such severe loss of operat¬
ing revenue to the petitioner's proposed station as to impair the
service which it could render", and added: "It would destroy the
ability of the Kentucky Broadcasting Corp. to render proper ser¬
vice in the public interest. "
"Since the petitioner's station is not yet constructed,
much less operating", the Commission said in its opinion, "and
petitioner is not a licensee under the act, and is not engaged in
the operation of a broadcast station, it is difficult to see how
proof of the allegations could constitute proper grounds for a
denial of Northside' s application. At the most, such allegations
cast serious doubts upon the petitioner's financial qualifica¬
tions to construct and operate its proposed station. "
XXXXXXXXXX
- 3 -
11/24/39
FTC CLOSES CASE AGAINST THREE RADIO FIRMS
The Federal Trade Commission has closed its case in
which International Radio Corporation, 559 Williams St., Ann
Arbor, Mich.; Wieboldt Stores, Inc., 106 South Ashland Blvd, ,
Chicago, and Davega-City Radio, Inc., 76 Ninth Ave . , New York,
were charged with misrepresentation in the sale of radio sets.
The three respondent companies have agreed to discon¬
tinue the unfair practices charged in the complaint and to
accept and abide by the rules of fair trade practice for the
radio receiving set manufacturing industry as promulgated by
the Commission July 22, 1939.
The case was closed without prejudice to the Commis¬
sion’s right to reopen it, should future acts so warrant.
XXXXXXXX
RMA DIRECTORS TO CONSIDER XMAS RADIO PROMOTION
Industry plans for 1940, including radio sales promo¬
tion, and results of the closing year, will be discussed by
the Board of Directors of the Radio Manufacturers’ Association,
Wednesday, December 6, in Chicago. Among the 1940 sales promo¬
tion projects to be considered will be short-wave radio, which
has been greatly stimulated by the war, and a joint national
promotion of the National Association of Broadcasters and the BMA.
The latter includes the national "Radio Christmas" promotion
for which details have been sent by the NAB to all of its member
stations and in which a large number of local broadcasters, in
addition to all networks, have agreed to participate, beginning
early in December. (See story in Nov. 21 issue) Many local
utility companies also are cooperating in the rs.dio promotion by
inserting enclosures in their December bills to customers call¬
ing attention to specific programs in suggesting the purchase of
new and additional radios for Christmas.
In short-wave promotion, there has been a large increase
in the weekly RI^A programs of short-wave broadcast stations and
further stimulated by the sponsored programs now permitted on
American short-wave stations.
The Board will also make arrangements for the Sixteenth
Annual Convention to be held in Chicago in the Spring. They will
likewise receive reports on technical advances in the art, includ¬
ing television, facsimile, and frequency modulation. There will
be a meeting of the Association’ s Export Committee in Chicago
the day before the Director’s meeting, Tuesday, December 5th.
XXXXXXXXXX
4
11/24/39
RADIO STATIONS WATCHED ON RACE TRACK REPORTS
The Justice Department is studying the effects of radio
broadcasts of race track results on inter-state gambling, it was
learned this week, as a follow-up of its campaign which brought
the closing of the Annenberg wire service.
Attorney General Frank Murphy stated that the "whole
subject is under study" after newspapers pointed out that many
gamblers, especially in the District of Columbia, were getting all
of their information from radio stations.
xxxxxxxx
S-W LISTENING GROWING IN IIEXIGO
Short wave is becoming more popular every day in Mexico
due in part to the fact that United States stations and European
ones^have, during the past year, increased their broadcasts in
the Spanish language, according to the U. S, Trade Commissioner
at Mexico City. Short-wave programs from the United States are
popular and their reception is good. Other western and European
stations are heard regularly and are popular. Progressive improve¬
ment in Mexican broadcasting stations and other transmitters have
improved reception and eliminated interference.
"Reception on the 49-meter band is not very good", the
report to the Commerce Department said, "because there are too
many stations operating on this frequency. There are not as many
stations operating on the 31-meter band a.nd, therefore, the recep¬
tion is better than on the 49-meter band. Reception on the 25-
meter band is the best. Reception on the 19-me*ter band is good
at mid-day and during the early evening, on the 16-meter band
good during the early morning end at noon time, and on the 13-
meter band good during the very early hours of the morning. There
have been no developments on the tropical bands. It is believed
that there are not more than 12 or 15 ultra short-wave radios
throughout the entire country. "
XXXXXXXXX
The Federa.l Communications Commission this week adopted
a final order granting the application of WJDilS, Inc., for con¬
struction permit to erect a new radiobroadca st station in Ashland,
Wis. , to operate on 1370 kilocycles with power of 100 watts, un¬
limited time, subject to certain conditions.
XXXXXXXXX
5
r
11/24/39
STRICTER CONTROL OF TEMPORARY AUTHORIZATIONS SEEN
The Federal Communications Commission this vjeek sent
out notices to broadcast licensees that it will enforce more
strictly henceforth the FCC rules regarding temporary authoriza¬
tions.
Loose practices by individual Commissioners in grant¬
ing temporary extensions for fulltime operation to stations
licensed for only limited time will be stopped, it was said.
A precedent established several months ago when WDGY, Minneapolis,
was granted authority to operate fulltime on 1180 kc. resulted in
pressure from Congressional and other sources for similar grants
to stations in other areas.
At a special meeting the t^’CC decided to adhere strictly
to its rules against such grants unless based on special programs
of outstanding public merit. It w^as pointed out that extensions
currently granted have been for one month periods covering all
program renditions rather than those of special interest.
In its notice to licensees, the FCC said:
'*The attention of all licensees of standa.rd broadcast
stations is called to the provisions of Section 1.365 of the
Rules of Practice and Procedure. This section governs the filing
and action on requests for special temporary authorizations. Two
provisions are particularly called to the attention of these
licensees. These provisions are briefly summarized as follows:
'*1, Requests must be made 10 days prior to the time of
desired operation. In special cases where the request
could not be made on time, a full explanation must be
made in the request as a basis for acceptance.
"2. The requests must be limited to temporary periods for
the transmission of programs or events which are not
re current.
"All requests for special temporary authorizations will
be considered strictly under all other provisions of Section
1.365, as well as the two provisions outlined above. Requests
for operation not in accordance with this section will not be
granted.
"The provision requiring that the request be made 10
days prior to the desired time of operation means that events
which are known 10 days in advance, such as the broadcast of elec¬
tion returns, addresses by prominent citizens, sports events,
etc. , must be filed 10 days before the event. In such cases a
request for acceptance upon the basis that arrangements for the
broadcast were not made 10 days prior to the event cannot be
accepted. However, requests for operation in connection with an
emergency or play-off of a sports event tie or championship
6
i
11/24/39
which could not have been foreseen, would constitute a basis
for requesting an exception to the requirement for filing 10
days in advance.
"Requests must be limited to temporary periods for
transmission of programs which are not recurrent. This means,
for example, that a program concerning a community chest drive,
the dedication of a public building, an address by a prominent
citizen, a sports event, etc. , may be considered, provided that
only the actual time required for such operation is involved.
Additional time for holding the audience or for the convenience
of the licensee is not in order. Requests to carry programs
which are recurrent and extend over considerable time, particu¬
larly beyond a definite 30-4ay interval, cannot be considered
as proper basis for a request for temporary opera.tion. Requests
for such operation should be made by "formal application in
accordance with the rules governing the same.
"Any licensee making a request for a temporary author¬
ization should read carefully and must comply fully with all
provisions of Section 1.365. Such procedure is essential to
avoid unnecessary expense and delay in the handling of
request, "
xxxxxxxx
STUTTERING ON AIR HIT BY SPEECH TEACHER
Censuring the use of stuttering speech as comedy in
broadcasting. Dr, James Sonnett Greene, founder and director of
the National Hospital for Speech Disorders, New York City, has
appealed to the program directors of 170 radio stations affili¬
ated with major networks to halt the practice, asserting that it
not only was unfair to those with speech defects, but also caused
children to imitate stuttering and possibly acquire a permanent
disorder.
In a letter to the program directors. Dr. Greene said:
"For many years we have been carrying on a crusade
against depicting the stutterer in a ’humorous' or ridiculous
role. However, we quite often hear the unfortunate stutterer
used for comedy relief on the air. His handicap is just as real
and just as serious as that of the person who has lost his sight
or hearing. Yet no one thinks of deriding those who are physi¬
cally disabled. ”
XXXXXXXXX
7
11/24/39
' RADIO LAISON COUNCIL ORGANIZED IN NEW ENGLAInID
The Radio Council of Western Massachusetts, a new
venture in cooperation between the listening public and the radio
industry, has been organized in Springfield, Massachusetts. Its
membership is drawn from various sources, including women’ s clubs,
education, men's civic organizations, churches, social agencies,
and the radio industry. It attempts to voice the opinion of a
representative section of the general public.
The avowed purposes of the organization, as stated in
its charter, are as follows: (l) to provide a medium whereby
persons and organizations interested in radio programs may con¬
fer; (2) to develop mutual cooperation between radio stations
and the general public; and (3) to consider the effectiveness and
desirability of local and network programs, and to encourage types
of broadcasts best suited to the community.
xxxxxxxxxx
C0I£IUNITY listening encouraged in GERI.IAI'JY
Public address systems have been carried farther and
are used more extensively in Germany than in any other country,
the Commerce Department reports. The main rea.sons for this
development are seemingly the great emphasis placed on the spoken
word as the most efficient means of propaganda; the desire of
having a complete network of public address systems as the fast¬
est means of communication for anti air raid instructions j to
provide workers with musical entertainment during breakfast and
lunch time; and last, but not least. Government regulations
concerning the installation of community receivers and the policy
of the radio industry to supply them at very low cost.
Every large factory and office building is required to
have a room for community reception and often loudspeakers are
so arranged that employees do not need to leave their working
premises for listening-in.
The enormous output of community receivers - over
1,500,000 units in 1938-39 - illustrates the wide spread use of
public address systems but also of central receivers. It should
not be overlooked that in most cases these community receivers are
connected with several loudspeakers installed in various premises
or at points of vantage in mass meetings.
XXXXXXXX
8
/. rr
. I \ ' ■ ■ ' ■ . ■
11/24/39
TRADE NOTES ; :
Substantial seasonal increases in radio factory employ¬
ment, payrolls and working hours, together with the upturn in
national industrial employment, were cited in the current employ¬
ment report for August, 1939, of the U. S. Bureau of Labor
Statistics.
Radio factory employment last August increased 4.8 per¬
cent over last July and was 38.3 percent above radio employment in
August, 1938. The comparative indexes of the U. 3. Bureau of
Labor Statistics have been changed to conform to the 1937 Census
of Manufactures, and the August radio employment index on the old
series basis was 123 percent, compared with the July index of
117.3, while the new August index was 135.9. A supplementary
government report stated tha.t the percentage of radio employees
laid off last August was 2.98 per 100, while the September per¬
centage of layoffs was .86 per 100, compared with 1.27 per 100
in Septffliber 1938. The ratio of new radio employees hired last
August was 8.16 per 100, and there followed in September an un¬
usually large increase of 16.50 per hundred, compared with 7.67
percent in September, 1938.
The Federal Communications Commission this week adopted
a final order granting the application of Vincennes Newspapers,
Inc. , for a construction permit to erect a new radiobroadcast
station in Vincennes, Indiana, to operate on the frequency 1420
kilocycles with 100 watts power, unlimited time.
World Radio Market reports of the Bureau of Foreign and
Domestic Commerce released this week covered the following:
Flinch. Oceania, Cuba (supplement), Algeria, Bolivia, Mexico,
Gibraltar, Burma, and Germany.
New York socialites are planning a Television Ball on
the night of December 15 in the G-rand Ballroom of the Waldorf-
Astoria for the benefit of the Goddard Neighborhood Center at
599 First Avenue.
The Ball Committee has arranged with the National Broad¬
casting Company for the telecast of the ball itself and three
preliminary programs. With television as the theme of the ball,
the special entertairjnent progjram will be telecast and guests at
the party will be able to see the program as intercepted from the
air on receivers installed in the ballroom for the occasion.
XXXXXXXX
9
'V
11/24/39
RA.DIO HAS LOUD VOICE, WEAK HEART, SAYS EDITOR
Further criticism of the NAB Code ban on sponsored
controversial talks came last week in an editorial published in
the Washington Times Herald, which said as follows, in part:
'•We've been doing some more investigating of the code
of ethics clamped down on the radio industry October 1 by the
National Association of Broadcasters and the further we go into
the matter the greater grows our contempt.
"The central theme of the code is a project to keep
down the broadcasting of programs which may cause public contro¬
versy.
"A very nice piece of window dressing has been install¬
ed to make it appear that the broadcasters are not trying to dodge
their responsibilities but are eager to be fair to everybody.
The NAB says they are not forbidden to give away time for contro¬
versial programs. They Just aren't allowed to sell it.
"All the flossy chatter they can think up concerning
free speech and equal debate can't conceal the catch in this.
"Radio stations, like newspapers, grocery stores and
peanut peddlers, ha.ve to make a profit if they are going to stay
in business. The station managers naturally sell all their time
if they can. If they have a dull hour when not enough people
are listening to make it worth while for an advertiser to sponsor
a program, they are glad to have somebody fill in and save them
the cost of paying for sustaining talent.
"But in the hours when lots of people are likely to be
tuned in, they sell to the highest bidder, naturally.
"The radio industry, if it lets the NAB ride it with
this 'no controversy' saddle, is taking a big chance on getting
ridden straight into the corral of G-overnment ownership. Which
would be a catastrophe for all of us.
"Something a lot of broadcasters ere inclined to over¬
look is the fact that they operate their stations only by public
sufferance. The Government grants them a license, tax free, to
maintain the very profitable and entertaining institution we call
radio. And what the Government gives free it can take back.
"Every radio broadcasting license is granted on the
premise that the holder will serve public interest, necessity and
convenience. When he fails that test he isn't worthy to have the
license any longer.
"And one of the elements of serving the public interest
is giving rein to public discussion of public issues. We don't
hold any particular brief for John L. Lewis, Father Coughlin,
Elliott Roosevelt, ex- Congressman Pettingill, or anybody else in¬
sofar as the line of controversy he wants to stir up on the radio
is concerned.
f- ;
11/24/39
"But we do have a deep conviction that these gents
ought to be allowed to pay the radio stations and get their
controversial chatter out over the airwaves just as freely as
the food companies shove their gelatine and coffee by courtesy
of Charlie McCarthy and Jack Benny.
"Radio has the most powerful voice the world has ever
known. It can reach the minds and heart of people up in the sky,
speeding along the roads, at sea and under the earth. It has a
duty to let those people in on whatever is controversial as well
as whatever is the latest Broadway wisecrack.
"And it better develop a heart as strong as its voice
is loud, or it is headed for the muffler. "
XXXXXXXX
CHANGE IN BIG RADIO AD BUDGETS FORECAST
The intense scrutiny that advertisers and agencies
are beginning to give to all media may bring about important
changes in 1940 expenditures, according to agency executives,
the New York Times reported this week. "Although there is dis¬
agreement on this point, some executives hold that there is a
definite tendency to question heavy exoenditures on radio and to
wonder whether equal sums spent in publication advertising might
not be more than profitable.
"Just as advertisers disliked the forced combinations
in newspapers, so do some of them object to having to pay for cer¬
tain stations in basic networks, covering territories in which
they have a poor distribution. This objection has caused many
of them to turn to spot broadce sting, accounting in part for the
sharp rise in that medium this year. But the anxiety of many
stations to become affiliated with chans may in turn hamper spot
programs.
"Criticisms of media by advertisers, however, are not
confined to radio. The rate differential between local and
national advertising in newspapers is still a sore spot. As far
as magazines are concerned, the chief reason apparently why lin¬
age does not increase at a greater rate is that advertisers dis¬
like the time lag between approval of ads and publication in
monthly magazines, under present unsettled conditions, it was said. "
XXXXXXXX
11
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2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF NOVEMBER 28, 1939
FCC Explains How Its Staff Polices The Ether . 2
FCC Preparing To Act On Craven Television Report . 4
Attitude Of FCC Toward Press Ownership Changed. .. . . . 6
Amateur Rules Amended, Effective December 1 . 7
Camden Puts Municipal Station On Block . . . 7
Canada Raises Fees On Private Radio Stations . 8
Trade Notes . 9
Better Radio Trade With Peru Seen Because Of War . 10
Almonte Again NBC Night Host . 11
RCA Declares Dividends For Quarter . . . 11
Radio Industry Sponsors Charity Dinner . 11
No. 1178
w
November 28, 1939.
EXPLAINS HOW ITS STAFF POLICES THE ETHER
The Federal Communications Commission this week explain¬
ed how its field staff polices the ether, in a press release
describing the various activities of its monitoring stations and
inspectors.
In administering and enforcing laws, regulations, and
international treaties pertaining to radio, the FCC depends largely
upon its field staff, the review pointed out. The ether waves
are, in effect, patrolled by 26 offices located strategically
throughout the United States and its possessions, augmented by
seven monitoring stations — at Atlanta, Baltimore, Boston, G-rand
Island, Nebr. ; Great Lakes, Ill.; San Pedro, Cal., and Portland,
Ore.
The monitoring stations, in general, do not participate
in the investigation of "pirate ' or other unlicensed stations
other than to report and record their signals as proof of opera¬
tion. This task is performed mainly by inspectors.
The 115 inspectors in the Field Division are radio engi¬
neers and, in addition, are capable radio operators, many having
had previous experience in maritime, aviation, and other communi¬
cations services. They are familiar with the procedure employed
by authorized stations, including the military, and this assists
them in uncovering illicit operations. Inspectors are selected
through Civil Service competitive examination.
Besides investigating unlicensed stations, these experts
inspect all classes of radio stations — broadcast, police, ship
(domestic and foreign), amateur, aviation, and television; examine
radio operators for various classes of licenses; monitor radio
transmission for adherence to frequency, quality of emission and
compliance with prescribed procedure; and investigate complaints
of interference to radio reception.
The Federal Communications Act specifically prohibits
the transmission of information concerning lotteries and other
similar schemes. Licenses have been revoked for using obscene and
indecent language on the air. Certain announcements are required
of broadcasting stations, including identification. The law pro¬
hibits the transmission of false distress signals and the rebroad¬
casting of certain programs, except with authority of the originat¬
ing station. A certain radio station was reprimanded recently
for intercepting, decoding, and broadcasting secret radio communi¬
cations of the British and German governments, in violation of the
Federal Communications Act and treaty obligations. Also, there
2
11/28/39
is definite provision in the Act requiring regulation by the
Commission "for the purpose of the national defense".
Though highly technical to the layman, the apparatus
and technique employed by inspectors are well known to radio
engineers. Advantage is taken of certain factors such as the dir¬
ective properties of antennas, attenuation of field intensity
with increased distance from the transmitting antenna and skip
distance phenomena. When taking radio direction finder bearing,
allowance is made for reflections from standing waves on wires,
coastline effect, fading and polarization of waves.
In many cases of unlicensed operation in the broadcast
band from 550 to 1600 kilocycles the inspector gains his inforroa-
tion on the basis of complaints of broadcast listeners, particu¬
larly the ardent DX’ers, who are constantly striving to identify
foreign stations and are quick to note appearance of a strange
station in the band.
Frequently, an unlicensed station operating in the
amateur bands first comes to the attention of an inspector when
investigating a complaint of interference in the home of a broad¬
cast listener by recognizing the interference as originating from
key clicks in a telegraph transmitter even though the frequency of
operation may be in a band raariy kilocycles removed from the broad¬
cast band. Field offices also receive tips from the monitoring
stations concerning the operation of illegal stations.
At each radio district headquarters, inspection cars
are provided, one at least of which is equipped with an all-wave
communication receiver which may be operated, if necessary, from
the car's 6-volt battery while the car is in motion. Under cer¬
tain conditions, it may be necessary to watch a station for a
particular length of time. These receivers are constructed so
that they may be removed from the car and operated from a 110-
volt AC power supply available in a residence, tourist cabin or
such other place that might be chosen by an inspector as a base
of operation.
The mobile units are equipped with special antennas to
help mn down unlicensed stations. The mobile equipment is also
used to transport examination equipment to various points in the
United States where applicants for operator licenses are examined.
In addition, technical equipment necessary for inspection of radio
stations is so transported.
At certain field offices, mobile field strength measur¬
ing equipment is provided. This equipment is used primarily to
determine the efficiency of broadcast station antennas. From
the data accumulated. Commission engineers can ascertain whether
a station is making legal use of its facilities. The actual
coverage or service to the public from a technical standpoint is
determined from these field intensity surveys.
3
11/28/39
The first determinations made by an inspector on the
track of an unlicensed station are the call letters employed by
the station as well as the station or stations called, the type
of emission, frequency or frequency band used for transmission,
time and duration of operation, nature of the communication, and
whether in plain text or code (if a telegraph station, character¬
istics of the opera,tor's "fist") and any other peculiarities.
In cases of this kind a milliarameter requiring but a
small current for full scale deflection is fitted with a crystal
rectifier which in turn is connected to a wire concealed in the
trouser leg of the inspector, or in a loop circuit made in the
form of a vest worn by the inspector. A device of this kind is
easily concealed and the meter can be easily held in the hand or
pocket of the investigator as he proceeds from floor to floor,
or door to door, observing at what point the highest deflection
of the meter occurs.
Resourcefulness, keen power of observation, and patience
on the part of investigators have been of invaluable aid in the
locating of transmitters, as for example, observing that a certain
light circuit on a back porch was nearly resonant and became
incandescent each time the key of the transmitter was do
XXXXXXXXX
FGC PREPARING TO ACT ON CRAVEN TELEVISION REPORT
The Federal Communications Commission was engaged this
week in close study and discussion of the second television report
submitted two weeks ago by the Special Committee headed by Coramdr.
T.A.M. Craven, and general approval was expected.
The industry is pressing for Commission action on the
report, and the FCC is anxious to settle the prxDblera involved, in
order that the manufacturers may get a clear picture of just where
they stand.
Members of the Commission have been besieged during the
past week by representatives of various branches of the industry
pleading for and against the report. Not all of the industry is
convinced that television is ready for the public, and some have
urged the Commission not to give its approval of this phase of
communications at this time, in the belief that it will hurt the
industry later.
On the other hand, in other branches of the industry,
it was said at the Commission’s offices, there is a belief that
the art has reached such a stage where it should be presented to
the public, not only to get public reaction, but also to give those
who have spent millions in experiments an opportunity to capital¬
ize, at least to some extent, on their expenditures.
4
11/28/39
The right to sell program time on a commercial basis is
what is being sought by one group in the industry, as this is the
only way in which any income may be expected to provide funds with
which to continue experiments without continually delving into
capital and earnings from other branches of the industry, it was
asserted. However, the Committee, which has made a thorough study
of the whole problem covering a period of many months, has recom¬
mended against this commercialization, but has made provision in
its proposed new rules accompanying the report providing for
sponsored programs.
But the restriction is that any funds contributed by
the sponsors must be used primarily for the purpose of experi¬
mental program development. The intent of the rules should be,
it was explained, to prevent commercial exploitation of television
as a service to the public prior to demonstrated proof of its
readiness for regular operation in accord with public interest,
convenience and necessity.
As a matter of fact, programming for television broad¬
casts is one of the serious problems which has confronted the
Committee. Such broadcasts will require an entirely new and most
expensive technique, and members of the body believe that, if
sponsors are available, their contributions at this time should be
devoted to experiments with programs to find out just what part
television is to play in the broadcast spectrum. When experimenta
tion passes through this stage, then, the Committee informed the
Commission, the body should be ready to consider a commercializa¬
tion plan.
It is the belief of those who have studied the problem
that further progress does not rest on experimentation with the
technical phases, but rather on the development of public inter¬
est in it as a broadcast service. This is borne out not only by
the fact that television has not gained the public acclaims expect
ed of it in New York where, it was said, there are less than a
thousand receivers, but on the public reaction to it in England
and France.
While representations have been made to the Commission
that failure to give television a boost by providing commercial¬
ization may end progress at this time, members of the Commission
are inclined not to take this too seriously, since the industry^^
is by no means unanimous on this point.
XXXXXXXX
A visitor from Chile interested in radios is expected
in this country November 21, 1939, for a visit of one month. He
will visit New York City only. His name and address while here
can be obtained from the Bureau of Foreign and Domestic Commerce
through its District or Cooperative Offices. A World Trade
Directory Report is available.
XXXXXXXX
- 5 -
11/28/39
ATTITUDE OF FCC TOWARD PRESS OWNERSHIP CHANGED
Concrete evidence that tiie Federal Coininunications Corn-
mission has altered its attitude toward newspaper ownership of
radio stations since the days of former Chairman Frank R. McNinch
has been accumulating in recent weeks.
All present indications are that the FCC now intends
to act upon applications from newspapers on the same basis as
MM?® from other applicants without prejudice. Previously, under
McNinch s domination, the FCC had been inclined to be hostile
toward press ownership of radio stations, especially where there
was danger that the newspaper might have a mononoly on news dis¬
semination in any community.
The most recent decision, announced last week,
favor of the Vincennes Newspapers, Inc., Vincennes, Ind.
applicant was granted a permit to constrmict a station at
for operation on 1420 kc. with 100 watts power, unlimited
was in
The
Vincennes
time .
Samuel M. Emison, as intervener, raised objections to
the early proceedings and cited the fact that the applicant was
a newspaper syndicate that was not locally owned. The FCC reject¬
ed these fla.tly in its final report.
failure of the Commission to
finding that the president of the anplicant and the
company, Central Newspapers, Inc., in which he has a major-
Ity stock interest, »not only does not reside in Vincennes but
and^also^t'o t there, being there probably twice a year»,
d also to the failure of the Commission to find that none of the
Lon reSde", f Directors of the oontrolilnrco?poS!
on reside in Vincennes or are familiar with the needs of that
a, ,
In its brief in support of its exceotions, the inter-
brvLl'pfp^V^^^ Section 310(b) of the Communications Act would
{n I ^ a grant of this application because of a provision
bPtLp entered into on October 1, 1930,
thi q ^ + trustee under the indenture. Under
of thp ^ conveyed in trust all of the properties
ed Lnd "P^Pe^ty, real, personal and mix-
om or shaM W«^N therein, which the Company may now
aonnii-p i hereafter own or which the Company may hereafter
criDtion°pna^°h^^ entitled to acquire of whatsoever kind and des¬
cription and wheresoever situated".
effppt o-p be assumed that this provision may have the legal
Lsued tn trust any station license which may bf
tSse which this section is designed to prohibit are
ance of b^ppSoL. construction, operation, or mainten-
roadcast facilities or control of the operations of a
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station by the transferee or any person other than the person who
has been authorized by the Commission for such purposes. Neither
the foregoing provision nor any other provision in the indenture
would have this effect except in the event of default on the bonds.
The Commission cannot assume that such default is a likely con¬
tingency in the fact of its findings with respect to the appli¬
cant's present financial condition. Aside from the question of
the probability of the occurrence of default, however, the pre¬
sence of this contingency is no legal basis for the denial of the
present application since it cannot be assumed that anyone other
than the applicant will or may control the operations of the pro¬
posed station without prior Commission assent or approval pur¬
suant to Section 310(b) of the Act, nor will the grant of this
application imply any determination to this effect by the Commis¬
sion.
"For the same reasons, the foregoing provision does not
render the applicant legally unqualified on the theory that it
is not the real party in interest herein. Such a contention
would lead to the result that either the trustee or the holders
of the bonds, or both, are the real parties in interest. Since
it is apparent that under this provision the construction, opera¬
tion and maintenance of the station and control of its operations
would not be in the trustee or bondholders, such a contention is
clearly untenable."
xxxxxxxxx
AI^ATEUR RULES AIVENDED, EFFECTIVE DECEMBER 1
The Federal Communications Commission this week announc¬
ed amendments in the rules allocating frequencies to amateur sta¬
tions to conform with changes in the spectrum necessitated by the
permanent allocation of frequencies above 30,000 kc. The changes
will become effective December 1st.
xxxxxxxx
CAMDEN PUTS MUNICIPAL STATION ON BLOCK
Mayor G-eorge E, Brunner announced last week the city
of Camden, N.J. would dispose of its radio station, WCAM, to any
one who makes a suitable offer. The station has lost money for
the last two years, the Mayor said, because the Federal Communi¬
cations Commission, under threat of revoking the license, requir¬
ed the city to operate it instead of renting it.
XXXXXXXXXX
7
i
11/28/39
CANADA RAISES FEES ON PRIVATE RADIO STATIONS
A substantial increase in the government license fees
payable by private commercial broadcasting stations in Canada has
been put into effect recently, according to the American Commercial
Attache at Ottawa. The license for such stations under the radio
regulations issued by the Department of Transoort heretofore was
$50 per fiscal year ending March 31. The new schedule provides
a minimum fee of $50 for a station of 100 watts or less operating
in a service radius with a population of less than 25,000. The
fees for a 100 watt station range up to $500 per fiscal year, this
rate applicable when the service radius exceeds 500,000 persons,
H:’oadcasting stations with a wattage power between 250
and 1,000 watts will pay annual license fees ranging from $100 to
$700, depending upon the population of the area served; stations
powered with equipment for 5,000 to 10,000 will pay fees from $500
to $4,000. Stations of 15,000 watts covering a service radius of
less than 500,000 people will pay $3,000 and if the service radius
covers more than 500,000 people the fee will be $4,000. Stations
with a power of 20,000 to 25,000 watts will pay $5,000 in service
areas covering less than half a million persons, and $7,000 in more
populous areas. Stations powered with 50,000 watts for which the
service radius is defined as 100 miles will pay a license fee of
$8,000 if the service radius contains a population of less than
1,000,000 persons and a fee of $10,000 in more populous districts.
Annual fees for stations powered in excess of 50,000 watts (none
such operate in Canada at present) will be determined by Order in
Council.
It is anticipated that the new schedule of fees operative
in the fiscal year beginning April 1, 1940, will produce an annual
revenue of approximately $26,000 in contrast to $4,250 which
accrued under the flay $50 rate operative in the fiscal year ended
March 31, 1939.
Minor changes in the radio regulations provided in the
same Order in Council exempt private radio receiving stations using
a crystal receiver from the annual license fee of $2.50 collected
on each private receiver utilizing vacuum tube circuits. Further,
the receiver license fee is waived in the case of special com¬
mercial stations employed by public utilities and manufacturers of
electrical apparatus for the sole pumose of investigating induct¬
ive interference. The fee for a broadcasting station operated on
a non-commercial basis by universities is established at $50 annually.
Radio dealers heretofore required to obtain assurance
from a purchaser of a receiving set that a private receiving sta¬
tion license had been secured are no longer under such obligation.
In the future, vendors of radio receiving sets shall inform the
Radio Branch of the Depa.rtment of Transport the names and addresses
of individuals who purchase a radio receiving set.
XXXXXXXX
~ 8 -
11/28/39
TRADE NOTES :
The Federal Communications Commission this week granted
permission for Station WiAL, The Evening Star station, leased to
the National Broadcasting Company, to construct a new transmitter
on a site northwest of Washington and to increase its maximum
power tenfold. Directional antennae will be used with the greater
power, 5000 watts. The station transmitter now operates daytime
with 500 watts and at night with 250 watts.
The New York Employing Printers’ Association, Inc.,
announced last week that the three major promotional releases of
the Mutual Sales Promotion Department had each won a special award
of merit in its Fifth Annual Exhibition of Printing. The Mutual
pieces selected were: "Some Think Them Sacred", "The G-uinea Pig
Goes to To?m", and "How Big Is A Rubber Band?"
The Electrical Division, Bureau of Foreign and Domestic
Commerce, has received a copy of tender and specifications cover¬
ing one long wave marine radio beacon transmitter to be purchased
by the Post and Telegraph Department of the New Zealand Government,
delivery to be made at Wellington, New Zealand. Closing date for
bids is January 23, 1940. Interested firms may obtain a copy of
the tender and specifications on a loan basis upon request to the
Electrical Division or any of the Bureau's District or Cooperative
Offices.
The Dallas (Tex.) Morning News and radio station WFAA
have resumed daily facsimile broadcasts over their transmitter
W5XGR, for the first time since the close of the State Fair of
Texas on Oct. 22, and will continue them without interruption,
providing a dally newspaper service by radio. The first edition
contained United Press news, cartoons, comics and pictures. Gene
Wallis is editor of the facsimile edition. The radio edition will
go on the air each day, including Sunday, between 2 P.M. and 4:30
P.M. Some receivers are on display at business houses in downtown
Dallas. The receivers, through timing devices, begin operating and
shut off automatically.
When WROK^ Rockford., Ill. , becomes an affiliate of the
Mutual network on December 1, the newcomer brings Mutual's nation¬
wide tally to 123 stations. WROK will operate on 1410 kilocycles
with 1000 watts day, 500 watts night. ^
9
Elliott Roosevelt announced Sunday night, according to
an A.P. report from New York, that the Transcontinental Broad¬
casting System would go on the air New Year's Day with a nation¬
wide network of more than 100 stations. Roosevelt, President of
the new chain, said the Board of Directors included John T. Adams,
General Manager of the Texas State Network, President; William A.
Porter, Washington lawyer, Vice President, and H. V. Brennan,
owner of two Pittsburgh (Pa. ) stations. Treasurer.
Wilfred S. Floberts, who recently rejoined the National
Broadcasting Company after a six months leave of absence during
which he was under contract to Paramount Pictures, has replaced
William S. Rainey as Manager of the NBC Production Division, John
S. Royal, Vice President in Charge of Programs, announced last week.
Mr. Rainey, who has been with the company since December, 1927,
has resigned to join the Tran s-Araeri can Broadcasting and Tele¬
vision CoriDoration as a program executive.
xxxxxxxxxx
BETTER RADIO TRADE WITH PERU SEEN BECAUSE OF WAR
American electrical equipment, including radios, prob¬
ably will find a greatly improved market in Peru as a result of
the European war, according to an analysis of Araerican-Peruvian
trade by Bernard I, Feig, of the Electrical Division, Bureau of
Foreign and Domestic Commerce.
Radio receiving sets and refrigerators heretofore have
constituted the largest trading items in electrical equipment,
the report points out. Ra.dio set sales for the years 1936, 1937,
and 1938 were $315,000, $298,000 and $156,000 respectively.
"The serious decline of 50 percent in United States
radio receiving set sales to Peru between 1936 and 1938 may be
attributed to a number of factors", Mr. Feig said. "Extremely
vigorous sales campaigns based on over-liberal credit terms result¬
ed in a saturated market condition which in turn put a damper on
radio sales. In addition, European competitors, chiefly the Dutch
Philips and several German manufacturers, increased their sales
efforts and succeeded in winning over some of the business which
was formerly dominated by Americans. To further add to the prob¬
lems confronting American radio exporters, the depreciated currency
and shortage of dollar exchange have also operated to limit impor¬
tations of American merchandise.
"A more immediate reason for more favorable American-
Peruvian trade prospects may be found in the prevailing European
war. Several of the countries now directly involved and a number
of those indirectly hampered by military and naval operations have
heretofore supplied an important share of Peru's electrical needs,
and have been responsible for America' s declining participation in
the Peruvian electrical trade. Now that many of them can no long¬
er render efficient service nor give this market the same vigorous
attention as previously, it may be expected that Peruvian import¬
ers will necessarily turn to the United States for many of the
electrical supplies formerly purchased from Europe.
XXXXXXXXXX 10
i
tJj
w
11/28/39
ALMONTE AGAIN NBC NIGHT HOST
John de Jara Almonte, Assistant to the President of the
National Broadcasting Company, has been transferred from the
World’s Fair, where he was in charge of the RCA exhibit, to the
New York office of the networks. Mr. Almonte will act as official
host of NBC in the evening and will represent the President,
Executive Vice President and Vice President in Charge of Sales.
XXXXXXXX ^
RCA DECLARES DIVIDENDS FOR QUARTER
Following the meeting of the Board of Directors of the
Radio Corporation of America last week, David Sarnoff, President
of the company, announced that the following dividends had been
declared:
On the outstanding shares of $3.50 Cumulative Convertible
First Preferred stock, 87-1/2/ per share, for the period
from October 1, 1939, to December 31, 1939, payable in
cash on December 21, 1939, to the holders of record of
such stock at the close of business December 4, 1939.
On the outstanding shares of ”B" Preferred stock, $1.25
per share, for the period from October 1, 1939, to
December 31, 1939, payable in cash on December 21, 1939,
to the holders of record of such stock at the close of
business December 4, 1939.
On the outstanding shares of Common stock, 20/ per share,
payable in cash on January 16, 1940, to the holders of
record on such stock at the close of business Dec. 8, 1929.
XXXXXXXX
RADIO INDUSTRY SPONSORS CHARITY DINNER
The third week of the 1939 merged appeal of the New York
and Brooklyn Federation of Jewish Charities was ushered in last
Sunday night with a dinner in the Hotel Waldorf-Astoria attended
by 1,200 representatives of the radio, music, refrigeration and
allied industries.
The dinner was the eleventh annual affair sponsored by
the radio industry and was part of the campaign to raise funds for
the 116 affiliated hospitals, orphan asylums, family service agen¬
cies, community centers and other welfare agencies serving Greater
New York. The tickets to the dinner wer $100 a couple.
Among the guests at the dinner were David Sarnoff, James
Skinner, Elmer Cunningham, A. Atwater Kent, Powel Crosley, Jr.,
Larry Grubb, George Throckmoor, George Mason, Arthur Murray,
Benjamin Abrams, E. G. Bigler, F. M. Merrick, Charles Wilson,
Westley M. Angle, I. Goldberg, Frank Hiter and H. M. Stein.
XXXXXXXX
11 -
I
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Fly Against Commercialization Of Television . 2
New York Station G-iven Three-Letter Call . 3
FTC Denies 'PMA Request On Tube Rule . 4
Wire Merger Bill Being Prepared By FCC . 5
Nine Million Set Sales Forecast For 1939 . 6
N.Y.C. Police May Carry Hidden "Mike" . 6
RCA Shows FCC Portable Television Pick-Up . 7
"SSSS" Hasn’t Displaced "SOS", Says FCC . ..7
Listener Booklets Aid Educational Broadcasts . 8
British Industiy Caught With Television Stock . 9
Trade Notes . 10
RCA Tests Sales Of Price-Cut Television Sets . 11
Westinghouse Adds To Baltimore Radio Plant . 11
No. 1179
■i!
FLY AGAINST GOMl/ERCIALIZATION OF TELEVISION
Ohairman James L. Fly this week told newspaper men
that he thought television has not developed to a stage where it
can be placed on an outright commercial basis as the Federal
Communications Commission discussed the Craven report at several
conference s.
Indicating that the full Commission will approve the
major recommendations of the Special Committee, Chairman Fly said;
"We will act expeditiously^ There are no sharp issues
involved, and we have no desire to retard development or keep the
Industry guessing. "
Mr. Fly said he thought there are "serious dangers" to
"barging ahead" in the commercial field of television, but he
expressed no objections to the experimental program sponsorship
suggested by the Committee as an aid to experimenters.
"There is still ample room for development in television",
he commented. "Those of you who saw examples of television at the
New York World's Fair will agree with me that it still has some
way to go, "
The FCC Chairman cautioned the reporters, however,
against pessimism regarding the new industry.
"Great progress has been made", he said, "and progress
will continue to be made. But to put television on a broad com¬
mercial scale at this time is to ignore the facts, "
Chairman Fly then proceeded to explain that any substan¬
tial change in television transmission would make obsolete all
present receivers at a loss to the public. He said a television
set cannot be compared to an old automobile or an old radio
receiver. They can be used until they wear out, but a television
set might be made useless overnight by technical developments in
transmission.
Public hearings doubtless will be held before any final
regulations governing television are adopted by the Commission,
Mr. Fly said. Ample opportunity will be given all interested
parties to state their case.
Asked whether the FCC had considered proposing any
cross-licensing of television patents in order to spur the industry
forward, Mr. Fly said such a matter is bound to come up in a
consideration of the broad problems involved. He did not amplify
this statement.
2
12/1/39
Mr. Fly also disclosed that the Commission is not
through with its examination of the ownership and management of
stations, some of which already have led to revocation of licenses
"I think the Commission can afford to give more atten¬
tion to ownership of stations”, he said. "We have the duty of
seeing to it that responsible people are protecting public inter¬
ests in broadcasting. ”
xxxxxxxxx
NEW YORK STATION GIVEN THREE-LETTER CALL
On request of the New York Broadcasting Corporation,
the Federal Communications Commission this week assigned call
letters WOV to the new broadcast station to be constructed by
that corporation in New York City, to operate on the frequency
of 1100 kilocycles, with power of 5 kilowatts, unlimited time.
The new station will supplant three existing broadcast
stations, namely, WOV and WBIL, New York City, and WPG, Atlantic
City.
It has been the practice of the Commission not to
assign three-letter calls to broadcast stations except in cases
where "good will" has attached to the use of such existing call
letters, as in the case of WOV. This is beca.use conservation of
three-letter calls for land stations, such as communicate with
ships and planes, is implied in International Telecommunications
Convention of Madrid, 1*932. This convention makes no provision
for assignments of call letters to broadcast stations. As a
result, some foreign stations do not use call letters. There is
no provision in the Communications Act relating to assignment of
call letters in this country apart from blanket authority to the
Commission to do so.
While the Commission issues four-letter calls to new
broadcast stations as a general rule, it has not yet been neces¬
sary to replace three-letter calls previously assigned broadcast
stations in order to make these calls available to land stations.
Consequently, the good-will value of existing three-letter broad¬
cast calls is considered as cases present.
Eighty-four broadcast stations
identification calls.
XXXXXXXX
still retain three-letter
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12/1/39
FTC DENIES RMA REQUEST ON TUBE RULE
The Federal Tre.de Commission announced to the industry
this week that it has denied the request presented by the Radio
Manufacturers* Association for modification of the provisions of
paragraph (k) of Rule 3, Group I, of the Trade Practice Rules
promulgated July 22, 1939, for the Radio Receiving Set Manufactur¬
ing Industry.
In a letter to the FMA, the FTC said:
"Reference is made to your letters of October 19 and 23,
1939, and to the request presented by your Association for modifi¬
cation of the provisions of paragraph (k) of Rule 3, Group I, of
the Trade Practice Rules promulgated by the Commission on July 22,
1939, in respect to radio receiving sets, parts and accessories.
"Representatives of your Association conferred in the
matter with Commission representatives on November 2, at which
conference they requested specifically that such provisions of
the mles be modified by striking out the following words from
the first sentence of such paragraph (k), namely, 'in the detec¬
tion, amplification and reception of radio signals*, also that
the last sentence of the note appended to such paragraph be
deleted, such sentence being as follows:
"'References to rectifier tubes, and to tubes, devices
or accessories which do not serve as signal amplify¬
ing or detecting tubes or heterodyne oscillator tubes,
should be such as to clearly avoid misunderstanding
or deception of purchasers. '
"Careful attention has been given to the matter, and
you are advised that upon full consideration the Commission has
denied such request for modification of the rule.
"In this connection it is stated that the provisions of
the rule relate to matters involving the sale and distribution of
commodities in interstate commerce and are directed toward protec¬
tion of the purchasing public and fair competition from deception
and misrepresentation in respect to tubes.
"The Federal Trade Commission Act, administered by the
Commission, prohibits as illegal such methods of competition and
acts or practices in interstate commerce which are unfair or
deceptive, and directs the Commission to proceed, where necessary
in the public interest, against persons, partnerships or corpora¬
tions using such unfair or deceptive methods, acts or practices.
These provisions of law are of general applicability and it is an
essential requirement tliet the rule shall in no wise appear to
sanction practices or advertising methods which may be found to
fall within such statutory inhibitions. It does not appear that
the rule if modified as requested would be in harmony with such
legal principles. "
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12/1/39
In respect to the matters Involved, the provisions of
paragraph (k) of Rule 3, Group I, read as follows:
"RULE 3 - Specific Types of Advertisements or Representa¬
tions among Those Prohibited :
It is an unfair trade practice for any member of the
industry to use, or cause to be used, any of the following des¬
cribed types of advertisements or representations:
w Advertisements or representations stating, purporting or
implying that any radio receiving set so advertised or represented
contains a certain number of tubes or is of a certain tube capac¬
ity when one or more of such tubes in the set are dummy or fake
tubes, or are tubes which perform no useful function, or are tubes
which do not perform or were not placed in the set to perform the
recognized and customary function of a radio receiving set tube
in the detection, amplification and reception of radio signals.
(NOTE: In order to avoid and prevent deceptive or mislead¬
ing tendencies or results, so-called "ballast tubes", dial
or other lamps used for illumination, so-called plug-in
resistors, and other accessories or devices not serving
the recognized and customary function of a radio receiving
set tube, are not to be included as tubes in advertisements
or representations of a radio receiving set which describe
or refer to the set as having a certain number of tubes
or as being of a specified tube capacity. References to
rectifier tubes, and to tubes, devices or accessories which
do not serve as signal amplifying or detecting tubes or
heterodyne oscillator tubes, should be such as to clearly
avoid misunderstanding or deception of purchasers. ) "
xxxxxxxxxx
WIRE MERGER BILL BEING PREPAPED BY EGG
The Federal Gommunications Commission is preparing the
draft of a proposed bill for merger of the Western Union and
Postal Telegraph Cos. , Chairman James L. Fly of the FCC said this
week at a press conference. The measure will be sent in about
ten days to Chairman Wheeler of the Senate Interstate Commerce
Subcommittee, which is to investigate the merger problem.
A Commission group, headed by Mr. Fly, has been working
for some weeks in collecting data, on the telegraph companies, and
this information, together with the proposed bill, will be ready
for submission to the Wheeler Committee within 10 days.
The proposed measure is expected to be one which has
the endorsement of the administration, as Senator ^Iheeler has
indicated he would consider only a measure which has been approved
by the executive branch of the Government.
XXXXXXXX
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12/1/39
NINE MILLION SET SALES FORECAST FOR 1939
The year 1939 will set a new record in the production
and sale of radio receiving sets, in the opinion of 0. H. Caldwell,
editor of Radio Today and former Federal Radio Commissioner.
Answering an inquiry from Victor M. Ratner, of Columbia Broad¬
casting System, Mr. Caldwell wrote’
’’Answering your inquiry, this year, 1939, will see the
largest unit production of radio sets in all the history of radio.
’’Nine million new radios will be sold by American manu¬
facturers during 1939.
"This will bring up to 45,200,000 the number of radios
in use by American listeners.
"From the beginning of broadcasting I have annually
compiled the production statistics of radio, and base the above
advance estimate on the fact that all reports so far this year
show sales to be up 26 percent ahead of 1938 when total set
sales were 7,100,000 (7,100,000 x 126^ = 9,000,000 sets for
1939) .
"Since our dealer reports show that only 50 percent of
any year's sales are replacements, the remaining one-half of 1939
domestic sales (8,400,000) can be assigned as becoming new
"listening posts", making 45,200,000 total such listening posts
(homes, autos, portables, business places, etc.) in use as 1940
opens.
"It is even more significant that the unit value of the
radios sold this year is steadily going up. The dollar value of
the radios sold this year (1939) is running 30 percent to 35 per¬
cent ahead of a year ago, showing that the purchasing public is
again demanding quality receivers to listen adequately to the
magnificent musical and dramatic broadcasts now on the air. "
xxxxxxxx
N.Y.C. POLICE MAY CARRY HIDDEN "MIKE"
New York City’s Police Department is conducting extensive
experiments on the possibility of having policemen carrying an
i^detecta.ble portable radio transmitter that can be used in gather¬
ing evidence, Commissioner Lewis J. Valentine has disclosed. He
declared that there now were two such portable transmitters in
use for experimental purposes. He said that with the microphone
hidden under a person's vest, the instrument could pick up and
broadcast an ordinarily spoken message 200 feet.
XXXXXXXX
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RCA SHOWS FCG PORTABLE TELEVISION PICK-UP
The first demonstration of a new type of portable out¬
door television pickup equipment was to be made for Federal
Communications Commission officials today (Friday).
The Radio Corporation of America laboratories sent the
new equipment to Washington. The transmitting apparatus was set
up on the south side of Pennsylvania Avenue at Thirteenth Street,
N.W. , and the receiver in one of the offices of the FCC.
The new equipment replaces the old 10~ton trucks which
heretofore were necessary to transport the heavy mechanism.
According to RCA officials in Washington for the demonstration,
the new type is one-tenth of the weight of the material formerly
used and is one-sixth as costly.
XXXXXXXXX
"SSSS" HASN'T DISPLACED "SOS", SAYS FCC
News dispatches from the war zone report that "SSSS"
is rivaling "SOS” as the marine radio operators call of distress.
If this is fact, the former is not internationally recognized as
is the "SOS" signal in the International Morse Code, according to
the Federal Communications Commission.
In any event the "SSSS" does not officially mean "Sub¬
marine Sighted" or any other particular words beginning with "S".
The explanation is that the dot-dot-dot four times repeated
( . ), representing these letters, has a character¬
istic swing and through common understanding and usage identifies
the nature of the distress case.
"SOS" does not mean literally "Save Our Souls", or "Save
Our Ship" as is sometimes claimed, any more than the previous
international distress call "GQD" meant "Come Quick Danger", the
FCC pointed out. All such calls are based on the speed and clar¬
ity with which they can be transm.itted.
There was no special wireless call for sea emergency
prior to the turn of the century, according to Federal Communica¬
tions Commission records. About that time the Marconi Interna¬
tional Marine Communication Company, Ltd., began equipping ships
for radiotelegraph communication. In doing so it adopted "CQ",
which had been in use in wire telegraph as a "general call" for
many years, as a precedence signal for any ship desiring to com¬
municate with another ship or shore station.
The need for a common distress call was recognized at
the preliminary International Radio Conference held at Berlin in
1903. Here the Italian delegation suggested that in emergency a
ship should send at intervals the signal "SSSDDD". No action was
taken at this conference.
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12/1/39
In 19C4 the British Marconi Company instructed its
ship radio stations to substitute “CD" for "CQ”. Subsequently,
the "D" was inserted in the old "CQ” call. At the 1906 Interna¬
tional Radio Conference at Berlin, however, "SOS" was fomally
adopted. This combination was the outgrowth of "S0E"(... - .)
which had been used by German ships but which was somewhat unsat¬
isfactory because the final dot was easily obliterated by inter¬
ference.
Even so, "CQD" was so firmly established with some
operators that its use was continued for some years thereafter.
A notable example was its employment in summoning aid for the
steamship "Republic" in 1909. "CQD" finally passed from the sea
calls when the international radio conferences continued to
approve "SOS".
XXXXXXXX
LISTENER BOOKLETS AID EDUCATIONAL BROADCASTS
Pioneering along a new frontier, the U. S^ Office of._
Education announces the inauguration of a plan to combine the
advantages of radio and print for the advancement of education.
The program which takes at least 3,000,000 listeners to
the Smithsonian Institution every Sunday afternoon now provides
a handbook to help radio visitors remember what they have "seen"
and heard by radio, "THE WORLD IS YOURS" radio series will be
parralleled by "THE WORLD IS YOURS" weekly illustrated bulletins.
U. S. Commissioner of Education J, W. Studebaker today
announced the beginning of the publication plan by the U. S. Office
of Education, Smithsonian Institution, the National Broadcasting
Company, and Columbia. University Press. "THE WORLD IS YOURS" is
heard every Sunday afternoon from 4:30 to 5:00 P.M., EST, over
nearly 80 stations of the National Broadcasting Company's Red
Network.
Inauguratit.n of the new radio-print plan has been prompt¬
ed by the persistent demand from listeners, more than 400,000 of
whom have requested supplementary material to the radio programs;
and by recent research findings which indicate that the learning
rate of radio plus print can be greater than the learning rate
obtainable by using either radio or print alone.
The new booklets, designed to promote the self-education
of radio listeners, contain popularly written scientific articles
prepared under the direction of the Smithsonian curators, explan¬
atory charts, graphs, and other Illustrations, reprints from the
scripts, as well as suggestions for additional reading. W. P.
True, Editor of the Smithsonian Institution, supervises the pre¬
paration of the aids.
XXXXXXXXXX
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12/1/39
BRITISH INDUSTRY CAUGHT WITH TELEVISION STOCK
With the cessation of television transmission in London
at the outbreak of the European war, British retail des.lers have
been caught with an unsaleable stock of television receivers
valued at approximately L250,000 or $1,250,000, according to the
Wireless & Electrical Trader.
The trade organ stated that Sir Noel Ashbridge had cited
three reasons for discontinuance of the visual broadcasting ser¬
vice. They were: (a) interests of national security, (b) to
relieve engineers needed to maintain a 24-hour sound service, and
(c) the high cost of the service in relation to the comparatively
small number of viewers.
Setting forth the results of a survey conducted among
retailers, the Trader commented:
”(1) Dealers were asked to indicate the retail value
of television sets they had in stock at the time of filling up
the- fora (that is, early in October). The lowest return was L20,
and the highest L716 17s. (from a radio dealer and not a depart¬
mental store, it may be remarked). In total, the 113 dealers who
gave information had stocks amounting to L14,364 14s.
’’There is no reason to suppose that the figures in The
Trader* s possession do not strike a fair average, and if that is
so it follows that the 2,000 dealers who have been handling tele¬
vision had on their hands immediately after the outbreak of war
some 15254,230 worth of television sets - dead stock until the
service is re-started. It is likely that stocks in the hands of
manufacturers are still greater.
”(2) Dealers were next asked to state the retail value
of sets they already had out on uncompleted hire purchase. The
total for 113 dealers was L10,690 7s.
’’This would make the total for 2,000 dealers something
in the neighborhood of isl89,200.
”(4) The fourth point was an equally difficult one to
answer: number of general complaints about lack of television
service. In this case the figures quoted varied enoraously; many
left blanks; and others indicated ’Numerous’, ’Lots’, ’Dozens’,
*Very many’, ’From all’, and so on. Several dealers added foot¬
notes to their questionnaire forms to say definitely that they
could sell television sets if a service were available, and a
number specially emphasized the fact that the black-out made such
a home entertainment as television more desirable than ever.
”(5) In dealing with the fifth point, it was possible
to be more definite with figures, for dealers were asked to esti¬
mate the number of sets they would have sold between September 1,
1939, and August 31, 1940, if war had not broken out. The total
9
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indicated by 113 dealers was 3,577, so that 2,000 dealers in the
television service area might have sold 63,310 televisors in the
current year.
''In other words, the retail side of the industry alone
has at this raomend a dead stock of some L250,000 worth (at retail
prices) of television sets, and is losing the sale of a possible
60,000 televisors during the current season. "
XXXXXXXXXX
• • •
: : TRADE NOTES :
• • •
t • •
The Federal Communications Commission granted the appli¬
cation of M. C. Reece for a construction permit to erect a new
station in Phoenix, Ariz. , to operate on the frequency 1200 kc. ,
with power of 100 watts night, 250 watts until local sunset, un¬
limited time.
Benson K. Pratt, who has been publicizing the Blue Net¬
work, has resigned from the Press Department of the National Broad¬
casting Company, as of Dec. 2, to become Publicity Director for
District Attorney Thomas E. Dewey's campaign for the Republican
nomination for the presidency. Art Donegan, who has been handling
trade news for NEC, succeeds him.
A new company has applied for a construction permit
for a new radio station at Salisbury, Md. , the Federal Communica¬
tions Commission has announced. The company, Delmarva Broadcast¬
ing, seeks to operate on 1,500 kilocycles, with power of 250
watts, unlimited time. Paul E, Watson, Salisbury banker, is
president of the company; William H. Morton, vice president, and
Robert N. Rogers, secretary-treasurer.
The FCC recently instituted a license revocation proceed¬
ing against Station WSAL at Salisbury, alleging that Frank M.
Stearns, the licensee, made false statements concerning the owner¬
ship, management and control of the station.
Station WOLS, at Florence, S. C. , will become affili¬
ated with the National Broadcasting Company on December 25, accord¬
ing to Niles Trammell, NBC Executive Vice-President, and wall be
available as a bonus outlet to advertisers using Station WIS in
the NBC southeastern group. WOLS is operated by 0. Lee Stone on
a frequency of 1200 kilocycles, daytime, and 100 watts power. It
will be NBC's 181st affiliate.
XXXXXXXXX
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12/1/39
RCA TESTS SALES OF PRICE-CUT TELEVISION SETS
In a test to determine whether sharply r educed prices
on television sets will bring in sufficient business to assure
quantity production and lower costs, the RCA Manufacturing Company
has just completed a two-months’ campaign in Newburgh, Poughkeepsie
and Middletown, in which more than 100 sets were sold, according
to the New York Times.
’’In discussing the campaign, officials of the company
emphasized the point that no decision as yet has been reached on
whether prices will be reduced", the Times said. "The results of
the drive will be thoroughly analyzed and discussed with metropol¬
itan distributors and dealers before any final decision is made.
Trade discounts and various other practices have to come under
scrutiny before the company reaches any decision on prices, it
was said.
"Newspapers were used to advertise the sets, although
copy carried no prices. The $600 sets were reduced to $395, the
$450 sets to $295 and similar reductions were made in the cheaper
models. The public showed a particularly good response to the
cheaper models, particularly around the $200 range.
"While the company made no official comment on the test,
it is regarded by others in the field as showing that the public
will purchase sets if they are priced at levels considered by con¬
sumers to be reasonable. The area covered, Newburgh, Middletown,
Poughkeepsie and surrounding territory, represents about one-
thirtieth of the pupulation of the metropolitan district.
"The fact that the Newbur^ public in two months bought
100 sets as against sales of only 1,000 in the entire New York
area since May indicates very graphically that prices have been
one of the chief factors in the slow sales, according to observers.
"Another reason is the quality and quantity of the pro¬
grams. National Broadcasting Company has been striving to improve
the quality of its telecasts and Columbia Broadcasting System is
now expected to get under way with programs around Feb. 1.
"Although no assurance of lower prices on television sets
has been given yet, the general impression in the trade is that
sets will be reduced for 1940. The industry is still conserva¬
tive about sharp sales gains next year but expects that volume
will be substantially larger than it was this year. "
xxxxxxxx
WESTINGHOUSE ADDS TO BALTIMORE RADIO PLAI'^T
Construction work has begun on an $80,000 addition to
the manufacturing plant of the Redio Division of the Westinghouse
Electric and Manufacturing Company, Baltimore, it was announced
this week, by Walter Evans, Manager of the division. The struct¬
ure will add 42,000 square feet, doubling the manufacturing space
and providing additional receiving and shipping facilities. It
is expected to be ready for use by January Ist.
XXXXXXXXXXXX
- 11 -
i
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
Non- Commercial Stations Must Hug The Waves . 2
NAB To Let States Decide Political Rules . 3
Independent Stations Hit Push-Button Receivers . . . 4
FCC Sees "Vest Pocket" Television Test . *5
New Station G-rant Puts Total At 55 For Year . 6
Addis Ababa To Broadcast To U. S. In January . 6
NAB Appoints Attorney And Engineer . .7
FCC Wants $50,000 For Investigating Unit . 7
WMCA Is New York Key Of New Network . 8
Linguists Listen To War Propaganda At BBC . 8
Radio Billings Rise On NBC And CBS . 9
Trade Notes . 10
Zenith Sets All-Time Production Record . 11
Frequency Modulation Transmitters Offered By G-. E . 11
Cuba Radio Purchases Not Affected By War . ...12
No. 1180
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NON-COMIERGIAL STATIONS MUST HUG THE WAVES
The Federal Communications Commission this week sent
out notices to all licensees of relay, international, high fre¬
quency, non-commercial educational, facsimile, television and
developmental broadcast stations that they must henceforth
adhere closely to their assigned frequencies.
Calling attention to a rule that became effective
September 15th last, the FCC said that each of the non-standa.rd
stations, except relay, shall operate continuously a frequency
monitor having an accuracy sufficient to determine that the
operating frequency is within one-half of the allowed tolerance.
Any station not now having the required monitor, the
FCC said, '* shall not operate until such monitor is obtained and
placed in operation".
A frequency monitor is defined as a device which will
indicate automatically whether or not the operating frequency
is within the allowed tolerance, as contrasted with "frequency
meters" which require a certain amount of manipulation by a
skilled person. A frequency monitor is required and a frequency
meter is not acceptable, the FCC said.
"Frequency monitors designed for amplitude modulation
may be used in conjunction with stations employing frequency
modulation, it being understood that these monitors will only
give an indication of the center frequency on no modulation",
the notice added.
"The frequency monitors used in compliance with this
rule by all broadcast stations other than stand?,rd broadcast
are ordinarily calibrated at the laboratory of the manufacturer.
However, the maintenance of the constancy of calibration is the
responsibility of the licensee. The licensees of all stations
shall be prepared to demonstrete to a representative of the
Commission that the frequency monitor has the required accuracy.
"Licensees operating two or more stations at the same
location coming within the purview of Section 4.1 (formerly
40.01) may operate one frequency monitor if arrangements are made
to switch the monitor from one transmitter to another by a simple
operation and no adjustments are required on each frequency.
"Relay broadcast stations shall provide the necessary
means for determining that the frequency of the station is within
the allowed tolerance. The frequency measuring equipment used in
compliance with this rule may be located at the relay station, at
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a central location or the receiving location. If the monitor is
located at a distance from the station, provision shall be made
to check the frequency in accorda.nce with Section 4.2(d). The
equipment used to determine that the frequency at a station is
within the allowed tolerance may be either a frequency monitor
or a frequency meter (heterodyne frequency meter or equivalent).
If commercial types of frequency monitors are used it may be
necessary to use a radio frequency amplifier in order to provide
sufficient signal to operate the device. Frequency meters, if
used, shall be capa.ble of required accuracy and shall be capable
of being maintained in calibration by comparison with the signals
of WWV or standard broadcast stations. "
xxxxxxxxxxx
NAB TO LET STATES DECIDE POLITICAL RULES
Because of the varied practices of the States governing
political campaigns, the Code Compliance Committee of the
National Association of Broadcasters has decided to let the
member stations in the respective States determine the policies
with regard to broadcasts.
A resolution, adopted at a meeting of the Committee in
Washington last week, states:
"In view of the fact that different laws or practices
govern the conduct of elections in the different States and local
communities, it is the recommendation of the Code Compliance
Committee that the broadcasting stations in the different States
should be called into meeting by State Chairmen or through the
efforts of District Directors, where no State organization
exists, and request them, after a study of their respective
State and local laws, to determine:
"(a) When does an individual become a legally qualified
candidate for public office and qualify for the sale
of time under "the Code, or.
"(b) Determine the date for the opening of a campaign for
election of public officials, or for the discussion
of public proposals which are subject to ballot. "
XXXXXXXX
Keith Kiggins, Director of the Blue Network of the
National Broadcasting Company, ha.s been named Chairman of the.
Radio Committee for the Department of New York of the American
Legion,
XXXXXXXX
3
INDEPENDENT STATIONS HIT PUSH-BUTTON P^GEIVERS
An appeal to the Radio Manufacturers' Association and
several set manufacturers to discontinue the production of push¬
button and restricted receiving sets was made last week by Harold
A. Lafount, former Federal Radio Commissioner, upon behalf of
organized independent radio stations.
As President of the National Independent Broadcasters,
Inc. , Mr. Dafount said that many independent low-powered sta¬
tions in the larger cities may be forced out of business by the
present trend in set manufacturing.
To supplant the four push-button receivers, which
are usually adjusted to network or high-powered stations, Mr.
Lafount asked that manufacturers get together in an effort to
produce at least ten push-button sets for larger cities, and
that the sale of the other units be discontinued. He offered
the cooperation of the local stations, possibly through sales
aids for the manufacturers.
"It is my sincere belief", Mr. Lafount stated, "that
if many of these four and five push-button receiving sets are
sold in cities that have 10 or more broadcasting stations, many
of the smaller local independent stations will soon be forced
out of business. I therefore, respectfully urge that you build
receiving sets with at least ten push-buttons and that you dis¬
continue the sale of sets with less push-buttons in the larger
cities.
"I am sure that if you will place on the market in
these larger cities receiving sets capable of reproducing the
programs broadcast by the smaller local stations - in other
words, sets that will without discrimination provide equality of
reception and tuning convenience, the local stations will cooper¬
ate with you in their distribution and sale. "
For competitive reasons, the NIB President stated,
many set manufacturers are offering small Inexpensive sets cap¬
able of receiving and reproducing programs broadcast by high-
power chain or clear channel stations. Frequently, he said, the
first stage of amplification is omitted, along with other refine¬
ments "which render these sets incapable of receiving and repro¬
ducing" low-powered stations without static or other interfer¬
ence. The sale of hundreds of thousands of these sets, he
declared, has been very detrimental to the local broadcaster and
in many large cities where noise level is high "is directly res¬
ponsible for the partial loss of his listening audience". Thus,
he asserted, the listener desiring to hear the local station
without interference "must purchase a high-priced receiving set".
Citing the push-button set as adding to the locals'
problem, Mr. Lafount declared that in a city like New York, the
sets usually are adjusted or tuned to chain or high-powered
stations. "The other 15 or 20 broadcasting stations must depend
Upon the listener to use the manual control", he declared.
XXXXXXXX
4 -
12/5/39
FCG SEES "VEST POCKET" TELEVISION TEST
New "vest pocket" television field equipment, so light
and compact that a complete basic unit may be carried in the back
of an automobile, will be delivered to the National Broadcasting
Company this week, according to Alfred H. Jiorton, NBC Vice-
President in Charge of Television.
The new apparatus, demonstrated under practical operat¬
ing conditions for the first time Frida.y before members of the
Federal Communications Commission in Washington, E). C. , was
developed by the RCA Laboratories at Camden, New Jersey. Among
those who witnessed the test of NBC's equipment were James L.
Fly, FCC Chairman, and Commissioners T.A M. Craven, Thad H.
Brown and Norman S. Case of the "'’elevision Committee.
With the new equipment, said Mr. Morton in his announce¬
ment, NBC’s television field crews will be freed of limitations
imposed by the necessity of finding parking space at the scene
of pick-up for the large motor trucks that carry NBC’ s present
mobile station. Entertainment such as stage shows of Broadway
will lie within easy range of the stream-lined unit. Mr. Morton
added that the new units will not go into immediate service, but
go through a test period to determine service potentialities in
the New York City area.
To facilitate transportation, engineers have assembled
the various components in small carrying cases.
A complete one-camera assembly, according to Mr.
Morton, requires only four of these cases, in addition to camera
and connecting cables, the total weight being less than 275 pounds.
Striking innovations include a new radio transmitter
for use on wavelengths of one meter and less, the shortest yet
employed in practical television work, and a "fading" feature.
NBC’s engineers also will be able to utilize ordinary 110- volt
power supplies. Apparatus for keeping two or more cameras in
absolute synchronization, thus eliminating the cause of "slipping
frames", is a part of the RCA development. A newly designed
antenna of the "wedge" type focuses the broadcast energy into
practically a searchlight beam, to be directed at the main NBC
transmitter in midtown Manhattan.
The basis one-camera unit may be converted into a two-
camera assembly by the addition of camera and four cases, bring¬
ing the total weight to less than 550 pounds. A third camera
may be added by bringing three more cases into the equipment
line, making the weight 862 pounds, exclusive of connecting
cables. The radio relay transmitter with its associated power
supply equipment weighs 250 pounds. With 500 feet of cable to
serve the assembly, the entire three-camera unit will weigh only
about 1200 pounds. NBC’s present two-camera field unit, mount¬
ed permanently in two large motor trucks, has a total weight of
ten tons.
5
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The new ultra-short vrave relay transmitter, according
to the RCA designers, will go far in removing the relayed image
from the influence of man-made sources of interference. These
sources, notably elevator contactors, diathermy equipment and
automobile ignitions systems, have been particularly troublesome
at times.
XXXXXXXXX
NEW STATION GRANT PUTS TOTAL AT 55 FOR YEAR
The granting of a construction permit to M. C. Reese,
of Phoenix, Ariz. , to erect a new radio station for operation
on 1200 kc. with 100-250 watts power, unlimited time, brought
the total new stations authorized by the Federal Communications
Commission this year to 55.
Meanwhile, the Commission is continuing to authorize
pOYi^er increases in accorda.nce with reclassification rules made
effective August 1. A dozen regional stations were given power
boosts to 5,000 watts last week.
Five stations on 1350 kc . were increased horizontally,
along with two on 630 kc . , plus individual increases on other
channels. Stations granted construction permits for the 5 kw,
night power are t
WI\ilAL Washington (now operating with 500 watts day,
250 watts nighi) ; WSPD Toledo; KLZ Denver; WIP, Philadelphia;
WPRO, Providence; WPRO’ Providence ; ’WTAQ, Green Bay; KSCJ,
Sioux City, la.; KGB, San Diego; WDRC, Hartford; WSAI , Cincinnati.
Granted license modifications for 5,000 watts, full-time were
KFPY^ Spokane, and KGIR, Butte.
xxxxxxxx
ADDIS ABADA TO BROADCAST TO U.S. IN JANUARY
The Italian short-wave station at Addis Ababa ?;ill
transmit a special program to North America on January 21,
according to Alberto Garabelli, New York representative of the
Italian Broadcasting Co., E.I.A. R.
The opening this Fall of a new '^Imperial Ra dio Center" ,
just outside Rome, now transmits "The American Hour" and other
short-wave programs to the United States and other parts of the
world, the correspondent said.
The new plant, he said, "may be held as the strongest
and most perfectioned short-wave broadcasting center in the
world". It consists of elglit short-wave transmitters located
in three buildings. More than a dozen different frequencies are
used daily.
By means of a new arrangement the Italian Radio Center
is able to broadcast simultaneously on two or three waves to the
same locality, thus giving the listener a choice cf the best
frequency.
YYYYYYYY
NAB APPOINTS ATTOMEY AND ENGINEER
With the appointment of Russell P. Place as counsel,
and. Lynne C. Smeby as full time Director of Engineering, the
National Association of Broadcasters has about completed its pro¬
gram of expansion as outlined in the reorganization plan.
Recently the Bureau of Radio Advertising was establish¬
ed to promote the use of radio advertising. It is headed by
Sam Henry, Jr. , former Sales Promotion Manager of World Broad¬
casting Company To carry on a year ’round institutional type
of promotion, Arthur Stringer, former promotional consultant,
was added to the staff after the Atlantic City convention.
Headquarters is also fomulating plans for increased
activity of the Research Department during the coming year. As
being drawn the work will include some fundamental studies
designed to fix the advantages of research as a tool in station
management. A committee is to be appointed to work with Paul
Peter, Director of Research.
The projected year’ s work include plans for meeting
media competition in the develooment of facts through research.
Ways and means for the development of needed information for
the Bureau of Radio Advertising, public relations, labor relations
and the executive office of the Association are to be established.
In addition to a consulting Research Committee, it is
planned to appoint a research representative in each district to
assist the Director of Research and the Research Committee,
xxxxxxxx
FCC WANTS $50,000 FOR INVESTIGATING UNIT
If Congress appropriates a requested $50,000 next ses¬
sion, the Federal Communications Commission will establish a new
Investigation Division which will report on the qualification
of new station applicants as well as inquire into operations of
existing stations.
Included in budgetary estimates given the Budget Bureau,
it is understood the new division would operate initially from
Washington headquarters but perhaps eventually decentralize with
trained investigators assigned to each of the 26 field offices of
the Commission. A dozen or 15 expert investigators is said to be
contemplated.
The proposed Investigation Division, which presumably
would report to the FCC rather than to any existing departments,
would operate on behalf of all FCC functions, including broad¬
casting, te3.ephone and telegraph, though its primary duties would
- 7
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12/5/39
be in the broadcast field. The innovation, it is felt, would
work hand in hand with the recently instituted intervention
policy, differing from past practices in that the Commission it¬
self would seek to develop adverse matter rather than depend upon
intervenor testimony to produce it.
xxxxxxxx
WMCA IS NEW YORK KEY OF NEW NETWORK
Station WIv^CA, Nem^ York, will be the New York outlet
of the new Transcontinental Broadcasting System, which will begin
operations January 1, with stations in all major markets, accord¬
ing to advance predictions. The new netxTOrk was organized in
Chicago recently with Elliott Roosevelt taking a leading role
though no office.
While the full list of stations affiliated with TBS
will not be made public until all arrangements have been com¬
pleted, official announcement has been made of these major out¬
lets: WIiJCA New York; WJJD and WIND Chicago; KFWB, Hollywood;
KYA, San Fr^.ncisco; KQV, Pittsburgh; ’ KXOK St. Louis; KCMO,
Kansas City; WIJIEX, Boston, WDG-Y Minneapolis, and North Central
Broadcasting Network, comprising stations in Northern Michigan,
Wisconsin, Minnesota, North and South Dakota, and the 23-station
Texas State Network. It was also reported that KSCJ^ Sioux City,
WCBM Baltimore, and KSAL Salina, Kan. , had practically complet¬
ed negotiations. ’
George Podeyn, New York manager for the Texas State
Network, has been appointed General Manager of TBS. As Mr. Adams
is still General Manager of TSN, and Mr. Roosevelt President of
that regional chain, it is expected that its operations may be
merged with those of TBS.
XXXXXXXX
LINGUISTS LISTEN TO WAR PROPAGA.NDA AT BBC
Every day since the war began, forty expert linguists,
severa.1 women among them, have sat at receiving-sets installed
in secret centres somewhere in England, and listened to news and
propaganda from broadcasting stations in all parts of the world,
according to the British Broadcasting Corporation. Da.y and night,
working in. three shifts a day for seven days a week, these expert
listeners "w^atch" transmissions that might contain information
of value to the British Government.
To the BBC, which, in association with the Ministry of
Information, has organized and operates this unique information
service, the work is known as "monitoring” and the listeners as
8
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12/5/39
monitors. Apart from important speeches by foreign statesmen,
the monitors listen to about 150 news bulletins - representing
about 250,000 words - every twenty- four hours.
After the material has been taken down and translated
by the monitors, it passes to an editorial staff, the members
of which, chosen for their knowledge of international affairs
and political judgment, write a summary of the broadcasts. Sum¬
maries, stencilled immediately they have been prepared, are issu¬
ed twice each day - in the morning and afternoon - and are often
as many as 30,000 words in length. They are immediately dis¬
patched to some twenty-five Government agencies and all the
Departments directly engaged in the prosecution of the war.
Information of special urgency is telephoned to the Departments
known to be interested.
Teleprinters and dispatch riders, as well as the tele¬
phone, link the listening posts, deliberately spread over a
number of points, with the collection and dispatch centre. High
speed and accuracy are essential, and the monitors have the
assistance of recording machines as well as a corps of shorthand
writers. On an average, ten monitors and five sub-editors,
together with shorthand-typists and the engineering staff res¬
ponsible for the means of reception, are on duty in each shift,
the peak number of staff at work being reached at about midnight.
Both headphones and loudspeakers are used for listening.
In addition to all the principal European countries and
the United States of America, places as far distant from Britain
as Japan and Chile are among the countries to which the monitors
regularly listen, and the languages in which they work range from
the Scandinavian tongues to Arabic and Ukrainian.
Organized on the outbreak of war, the service swiftly
proved to be of great value to the Government, and is proving
more and more useful as time goes on. Necessarily, the work of
organization was a complicated matter. Receiving points had to
be established, methods of rapid communication installed, and
staff recruited. Not only first-class linguistic ability was
asked of the monitors: they had to be physically able to meet the
demands of nightwork that involved unrelieved hours of listening -
often to atmospheric-marred transmission.
XXXXXXXXX
RADIO BILLINGS RISE ON NBC AND CBS
Billings of the National Broadcasting Company in
November increased 8. 6 percent from 1938 and those of the
Columbia Broadcasting System rose 40.9 percent. NBC volume was
$4,234,984, against $3,898,918 in November, 1938. The latest
figure represented a gain of 0.4 percent from the October figure,
which was $4,219,253. Columbia’s latest total was $3,456,323,
against $2,453,410 for November, 1938. The total was up 2.7
percent from the previous month's figure of $3,366,654.
XXXXXXXXX
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: TRADE NOTES
Hulbert Taft, Jr. , son of Hulbert Taft, Sr. , President
of the Cincinnati Times Star Co. , has been named Manager of
Station WKRC, acquired recently by the Time s-Star. Sale of the
station by the Columbia B.roadcasting System was approved last
week by the Federal Communications Commission.
Harry L. Sommerer, formerly assistant to Fobert Shannon,
Executive Vice President of the RCA Manufacturing Company, has
been appointed Manager of Manufacturing of the company's plant.
Mr. Sommerer will have supervision of the company's plants at
Camden and Harrison, N. J. , Hollywood and Indianapolis, with
headquarters in Camden.
The G-eneral Electric Company will put strong advertis¬
ing support in the coming months behind a special offer of a
seven-tube console receiver and a standard G-E record player for
$65.95 with another raddo in exchange. The offer is a feature of
an advertising and promotional campaign scheduled for the Winter.
The set has two reception bands, is equipped for television
sound and has six touch- tuning keys, and the player has an approx¬
imate retail value of $10. A new series of advertisements has
been prepared for use in newspapers by small, intermediate and
key dealers.
U.S. Attorney
/William J. Campbell of Chicago is conducting an investi¬
gation to determine if horse race results are being broadcast
illegally by radio stations. He is especially Interested to know
whether or not radio companies are trying to replace the book¬
maker's wire service of M. L. Annenberg's Nationwide News Service,
which Mr. Annenberg recently dissolved. He is also seeking an
opinion from the Federal Communications Commission as to whether
or not the Commission's regulations ban use of radio for trans¬
mitting race results. ^ —
Six hundred Westchester County (N.Y. ) clubwomen attena-
ing a forum at the New Rochelle Woman's Club voted unanimously
last week to urge radio chains to broadcast fewer love dramas,
described as an "insult to intelligent women", and provide more
programs dealing with horaemaking and child training. The vote
came after Mrs. Ida Bailey Allen, home economist, had informed
the women that out of 378 broadcasting hours each week by the
three major networks, only 45 minutes were devoted to problems
of the home. Mrs. Allen said she had conferred with radio
officials and program sponsors and had been informed that "ArB’^ri-
can women are not interested in hearing about homemaking. "
XXXXXXXXX
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12/5/39
ZENITH SETS ALL-TIME PRODUCTION RECORD
Zenith Rp.dio Corporation reports a consolidated opera¬
ting profit for the first six months ended October 31, 1939, of
its current fiscal year, amounting to $377,696 after depreciation,
excise taxes and liberal reserves, but before provision for
Federal income taxes, as per the company's books, according to
Hugh Robertson, Executive Vice-President and Treasurer.
"The Company's regular 1940 line of home receivers
was announced and shipment started the middle of September", he
said, "The unprecedented spurt in radio demand had not been
fully anticipated but delivery difficulties with material sup¬
pliers were overcome and an all-time high record for production
and shipment of receivers during a single month wa-s attained in
October. This record rate of production and shipment was main¬
tained during the month of November and will continue until the
present backlog of orders for December and January delivery are
filled.
"Statistics on delivery of Zenith receivers by distri¬
butors to dealers indicate that the 1940 models are moving to
the public at an unparalleled rate for this period and the manage¬
ment confidently expects that shipments for the fiscal year will -
be the largest in the company's history both in units and dollar
volume.
"There has been a steadily increasing demand for auto
radios from automobile manufacturers with whom the company has
contracts. Daily shipments of these receivers have been main¬
tained at an all-time high and releases being received from time
to time for future delivery indicate the present rate of produc¬
tion and shipment will be maintained well into the Spring months. "
xxxxxxxx
FREQUENCY MODULATION TRANSMITTERS OFFTFED BY O.E.
After more than three years of intensive research.
General Electric has made available frequency modulation trans¬
mitters in five ratings. This new departure In radio is character^
ized by exceptional high fidelity, freedom fx'’om distortion, nearly
complete freedom from interference - either man-made or natural •*
better coverage of the primary service area, and reduced operating
costs.
Based on the system developed by Major E. H. Armstrong,
the new General Electric transmitters add several exclusive
features including simplified circuit design, fewer tubes, greatly
reduced power consumption, and accessibility to all parts without
disassembly. With this equipment distortions are reduced to less
than 1-1 percent from 30 to 7500 cycles and less than three per
cent to 15,000 cycles. The transmitters are available in ratings
of 250 watts and 1, 3, 10 and 50 kw.
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Standard broadcast receivers are unable to receive
programs transmitted on the new system, and General Electric
recently announced regular production of a full line of sets to
receive the frequency-modulation programs.
XXXXXXXX
CUBA RADIO PURCHASES NOT AFFECTED BY WAR
Cuba's purchases of American radio equipment, which
dropped about 50 percent in 1938, are not likely "to be increased
by reason of the European war es United States firms already
dominate the market, according to the Department of Commerce.
The only hope for restoration of the trade, an analysis shows,
is that Cuban purchasing power will be raised by recovery of
the island's sugar industry.
Bernard I. Feig, of the Electrical Division, Bureau of
Foreign and Domestic Cornrierce, in a review of American electri¬
cal trade with Cubas, has this to say of the radio market:
"After experiencing several years of excellent demand,
radio equipment, which constitutes the chief item in the Cuban-
American electrical trade, suffered a severe setback in 1938.
The serious reduction of approximately 50 percent in Cuban im¬
ports of radio apparatus was accounted for by the decline in pur¬
chasing power and also by the heavy carry-over of radio stocks
from 1937 when excessive optimism led to overstocking. Another
factor, although currently of minor importance, has been the
increasing activity of the Dutch Philips concern which has been
gradually improving its position in the Cuban market at the
expense of American producers. The importance of this factor
would be greatly magnified if the preferential treatment accord¬
ed American products were ever lessened or suspended. At present,
however, the radio market is strongly dominated by American
producers .
"Cuban industry has looked to the European war situa¬
tion for alleviation of many of its difficulties, but no material
relief has thus far been forthcoming in the form of anticipated
war orders.
"Unlike many other Latin American countries, Cuba does
not hold forth promise of increased trade wich American electri¬
cal manufacturers because of the current war. Since American
electrical producers already control more than 90 percent of the
Cuban market, the amount of trade that Cuba might find necessary
to divert from belligerent or other handicapped European nations
would necessarily be relatively small and unimportant.
"Upon final analysis, American electrical exporters can
only hope for the recovery of the Cuban sugar industry, the cure-
all that would probably eliminate many of the prevailing ob¬
stacles in the path of renewed demand for American electrical
equipment.
xxxxxxxxx
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, O. Q.
INDEX TO ISSUE OF DECEMBER 8, 1939
FCC Reorganization Not To Be Pressed Next Session . 2
FTC Curbs Claims Of Television School . 3
U. S. S-W Radio Free, But Hampered By Difficulties . 4
Did George Henry See Them First? . . . 6
FCC Delegates To Chile Conference Named . 6
Lower Program Costs Seen In RCA Television Pich-Up . 7
Coughlin Uncurbed By NAB Radio Code .
FCC Survey Of Amateur Radio Service Proposed
Trade Notes . 10
Teletype Service Involved In Wire Merger Plan . 11
Government Wire Pates Raised By FCC . 12
Radio Chief Amusement Of Children, Says Prof . 12
No. 1191
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FCC EEORGMIZATION NOT TO BE PRESSED iJEXT SESSION
The Administration has scuttled the McNinch proposal
to abolish the Fed.eral Communications Commission and. substitute
a three-man agency with the Chairman clothed, with dictatorial
powers, it was reported this week on Capitol Kill.
Congressional leaders, it is said, will make no attempt
to revive the legislation introduced last session upon suggestion
of President Roosevelt.
Internal dissension which marked the regime of the
former Chairman, Frank R, McNinch, has disappeared since James L.
Fly took office, it was pointed out, and so the need for the
reorganization has been eliminated. The FCC, in fact, has been
calmer and more united in its policies than at any time in recent
years.
The fact that 1940 is an election year doubtless enters
into the decision.
President Roosevelt early this year wrote letters to the
Chairmen of Senate and House Committees handling radio legislation
and suggested a complete reorganization of the FCC and a rewrit¬
ing of the Communications Act.
Subsequently, Chairman Wheeler, of the Senate Inter¬
state Commerce Committee, introduced a bill oroviding for a three-
man Board in place of the seven-man FCC. It had been drafted
under direction of McNinch and with the purpose of ridding the
Commission of dissenting members.
The dissenters were Commissioners T.A.M. Craven and
George Henry Payne, who had refused to suoport the FCC ''purge "
a year ago. Thomas G. Corcoran, New Deal brain truster, was
understood to be behind the move to punish the Commissioners.
Such a storm of protest was raised both within the radio
industry and political circles that Administration leaders soon
pigeon-holed the legislation and never went so far as to schedule
hearings.
Senator White ( R. ) , of Maine, countered the Wheeler-
McNinch bill with a measure to enlarge the Commission to 11 members.
Cries of "dictatorship" and "government censorship"
were raised so loudly that the House Appropriations Committee held
up the FCC appropriation until a fe'w days before the end of the
fiscal year. Increases asked by the Chairman to expand the staff
were denied.
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12/8/39
Demands for a Congressional investigation of the FCC
have not died down, however, despite the present calm within the
Commission. Representative Wigglesworth (R. ), of Massachusetts,
one of the chief Capitol Hill critics of the FCC, said he will
again press for enactment of one of the several resolutions call¬
ing for a House probe.
Democratic leaders, however, said there is little likeli¬
hood of such an inquiry being ordered unless new dissension breaks
out within the Commission.
xxxxxxxx
FTC CURBS CLAIMS OF TELEVISION SCHOOL
Midland Television, Inc. , Kansas City, Mo. , conducting
residence and correspondence courses in radio, television and air¬
line radio operation, entered into a stipulation with the Federal
Trade Commission to discontinue misleading representations.
In its advertising matter, according to the stipulation,
the respondent comoration published composite illustrations of
the Kansas City Power and Li^t Building, in which the school
occupies several of the upper floors, and the KMBC broadcasting
tower, so arranged in some instances as to create the illusion
that the buildings are contiguous to each other, when in fact they
are some five miles apart; and letterheads featured a similar
picture with the conspicuously printed corporate name "Midland
Television, Inc. "
This illustrated matter was misleading insofar as it
tended to convey the impression to prospective pupils that the
entire building was occupied by the respondent corporation and
that the tower belonged to the school, according to the stipula¬
tion.
The respondent corporation agreed to cease making such
representations and to discontinue disseminating advertising
matter which tends to convey the impression that students are
virtually assured of employment upon completing their radio work
at the school. The respondent also stipulated that it would
desist from the representation that any person connected with the
school's "technical staff" is a "member of the Institute of Radio
Engineers", when such is not a fact, and from representing that
the sole purpose of "Midland Training" is to help students make
more money.
XXXXXXXX
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U.S. S-W RADIO FREE, BUT HAMPERED BY DIFFICULTIES
Some of the difficulties of international broadcasting
by U. S. stations to Latin American countries were discussed by
Guy C. Hickok, Director of Short-Wave Broadcasting for the
National Broadcasting Company, this week at a conference on inter
American affairs at George Washington University, Washington.
Mr. Hickok prefaced his remarks with the observation
that American radio is free to broadcast the truth as it sees
it and is not hampered by censorship as are European stations in
countries at war.
"The struggle in Europe has reached a pitch of bitter¬
ness in which not one of the nations locked in conflict can
afford to broadcast honestly, if it would. In this bitter battle
of the air waves, American short-wave broadcasters are not in¬
volved. Aloof from the melee, they can still tell the nations
to the south the truth, or all of the truth they can discover. .
"But to really reach the ears of the greatest numbers
of our neighbors to the south, short-wave broadcasters must do
more than merely increase the distances at which American pro¬
grams can be heard. They must 'process' American programs before
Latin-Americans or Ibero Americans will accept them.
"We like to tell ourselves that English is becoming a
universal language; but we know that it is not a universal
language now.
"Ask a typewriter manufacturer. He will tell you soon
enough that to sell American typewriters in Brazil he must pro¬
vide them vjith Portuguese keyboards; and to sell them in the rest
of the Americas he must give them Spanish keyboards.
"He would not get far if he insisted on shipping to the
other Americas only machines with standard American keys.
"In radio, as in typev/riters. North America is compet¬
ing in Latin America against other nations v/hich will, and which
do, modify the product they use at home to adapt it to the export
market.
"No American exporter would print his promotion or
advertising matter for Latin America in English. Everyone inter¬
ested in increasing commercial relations with Latin America knows
that he must use the languages of his markets; and he must use
these languages as well or better than any foreign competitor
uses them; as well as the educated class of the population uses
them.
"Therefore North American radio, to be really effective
in the other Americas, must
1: Broadcast in their own languages, perfectly spoken.
2: Broadcast programs adapted to their tastes, their sus¬
ceptibilities, their customs.
3: Time its programs to the convenience of its audiences.
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12/8/39
4: Key its programs in a tone which will wear away, little
by little, antipathies and suspicions which have
grov’n up - not totally without cause against us.
''North Americans must do this if they wish to be heard.
For the listener by a gesture so slight thet a fly would not be
disturbed, tunes out to another station.
"None of us here need be told that the languages of the
republics to the south of us are Spanish and Portuguese. But per¬
haps some of us do need to be told that the Portuguese of Brazil
is not that of Lisbon any more than the English of Kansas is the
English of Oxford.
"And as for Spanish, the language of none of the nine¬
teen Spanish- speaking republics is the language of Castille, They
all speak Spanish it is true, but that does not mean that any
kind of Spanish broadcast by short-wave from North America is
acceptable to all of them; on the contrary.
"The Spanish of at least four of the Spanish republics
has gro\im and evolved until many of the other republics do not
care for it; and these four regional or national types of Spanish
are not for the North American broadcaster to use if he hopes to
make friends all the way from the Rio Grande to Terra del Fuego.
He must find speakers who use what, for want of a better name, is
called ‘neutral Spanish', v/hich, though it may not be loved, is at
least accepted by all Spanish- speaking peoples.
"The language problem solved the North American broad¬
casters must solve the no less important problem of program pre¬
ferences, one that presents itself every minute of every hour the
station is on the air. And the only practical way to solve it is
to have the broadcasting done by men and women who have grown up
under, or who have lived for many years under, the influence of
the cultures to which they are trying to appeal .
"News happens to be one radio offering in which North
America excels over all other countries. We have the most com¬
plete, the most rapid, the most truthful and impartial news gather¬
ing organizations in the world. We are now the only great country
which can put such a service on the air without first having to
strain it through a war-time censorship. A news service, swiftly
delivered, objectively written and edited, accurately translated
and well spoken in the languages of the listeners, and done with¬
out propaganda coloring, is perhaps the most valuable offering
North American short wave stations can make to Latin America or to
any other part of the world. "
xxxxxxxx
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DID GEORGE HENRY SEE THEM FIRST?
A humorous mixup, one good for a real laugh in the
radio industry, at the National Press Club dinner to President
Roosevelt last night (Thursday) was the accidental seating of
Commissioner George Henry Payne, of the FCC, next to Martin Codel,
publisher of Broadcasting Magazine , and just across the table
from Sol Taishoff, editor of that magazine. Had these men
actually had to sit together, it might have been very embarrassing
because a year or so ago Commissioner Payne sued Codel and
Taishoff and Broadcasting for $100,000 libel, and while the suit
was settled out of court, it is not to be imagined that these
gentlemen would be the most congenial companions.
Embarrassment, however, was saved either by Mr. Payne
not being able to attend the dinner or, according to one guess
made, arriving first and seeing who his seat-raeates were, found
himself a place at another table. Anyway, Mr. Payne's place was
vacant. Some think there might have had to be a riot call for
some of the Secret Service men, police, plain clothesmen and
firemen in attenda.nce on President Roosevelt which, by the way,
was the heaviest guard ever to be accorded to a President in
the history of the Press Club.
Another amusing incident to the radio industry was
when Lew Lehr, of "monkeys is the kwasiest peoples" fame told
about a Geraan refugee landing in this country speaking a side¬
splitting gibberish nobody could understand. Nevertheless to
encourage the fellow. Lehr said to him, "Where in the world did
you learn such good English?" "From the American short-wave
broadcasts" was the reply.
Gene Buck, President of A3GAP, was in charge of the
entertainment and among the out-of-town guests was Alfred J.
McCosker, President of the Mutual Broadcasting System.
XXXXXXXX ''
FCC DELEGATES TO CHILE CONFERENCE NAI.CD
The Federal Communications Commission has designated
Chief Engineer E. K. Jett and Gerald C. Gross, Chief of the Inter¬
national Section, to represent the Commission at the Inter-American
Ra.dio Conference to be held in Santiago, Chile, beginning January
17, 1940.
XXXXXXXX
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12/8/39
LOWER PROGRAM COSTS SEEN IN RCA TELEVISION PICK-UP
Members of the Federal Communications Commission are
showing interest in the possibilities of cheaper television pro¬
grams and its effect on television transmission development in
the United States after witnessing the RCA-NBC demonstration in
Washington last v/eek.
Developed by RCA engineers, the field pick-up equipment
is intended for use in picking up pictures of events taking place
outside television studios for transmission back to the station
for visual broadcasting.
As summarized by RCA, the equipment has the following
advantage s :
''Enables television stations to tap interesting and timely
program events.
"Helps reduce high cost of television programming.
"Provides pictures comparable in definition with those pro¬
duced by standard station apparatus.
"The cost of the new P'CA apparatus is about one- sixth of
the cost of the present mobile television equipment carried in two
large vans. The new units can be transported in a station wagon
or light delivery truck.
"The power consumed by the new equioraent is about one-fifth
of that used by the previous apparatus. This enables power con¬
nections to be obtained more readily in the field.
"The weight of the new equipment is about one- tenth of that
of the former mobile apparatus.
"The power of the new transmitter is considerably less than
the unit which has been used in New York for field pickups of
television, but it operates on a wave length of about one meter
and may be used with small but highly efficient antennas which
multiply the effective power several times.
"On these wavelengths, electrical disturbances are not a
serious factor nor is static produced by lightning.
"The reduced cost of the new apparatus should put it well
within reach of television stations in locations other than New
York and should encourage the development of program service in
other cities. It costs less than a medium power broadcast trans¬
mitter.
"The apparatus may be used with one to three cameras to pre¬
sent varying points of view or to alternate scenes.
"Television audiences in New York and Los Angeles will soon
have an opportunity to see pictures produced over sets of this
new equipment. "
XXXXXXXXXX
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12/8/39
COUGHLIN UNCURBED BY NAB RADIO CODE
As noted a fortnight ago in the Heinl News Letter,
the Rev. Charles E. Coughlin, Detroit radio priest, has not
been restricted in his broadcasting activities despite the NAB
code and the great to-do made over the "capitulation” of John
Shepard and the Yankee Network.
The Detroit correspondent of Variety reports that Father
Coughlin still has 47 of his 49 stations and is not threatened
with the immediate loss of any others. Stations which failed to
renew contracts are WGBI^ of Scranton, Pa., and WTMJ, of Milwaukee
Meanwhile, the NAB has lost seven members because of
the Code and apparently is willing to let the Coughlin matter
rest for the time being with no punishments to be inflicted on
stations who took advantage of legal loopholes to evade the Code.
XXXXXXXX
FCC SURVEY OF AIvlATEUP RADIO SERVICE PROPOSED
Additional information which will permit the Federal
Communications Commission to meet any amateur problems which may
arise in connection with neutrality and national defense and
other emergencies, as well as with normal regulation, is the
basts of a survey proposed by the Commission.
In striking contrast to the 2,137 amateurs in the United
States at the outbreak of the World War of 1914, there are now
53,500 licensed amateur operators and the same number of amateur
stations. This includes about 300 amateurs in Hawaii, 200 in
Alaska, 50 in Puerto Rico, and a scattered few in American Samoa,
Wake Island, and Guam.
The Commission receives more than 100 amateur applica¬
tions a day. About one- third of these are for new licenses for
operators and stations. The license term of amateurs is three
years. As in the case of other licensees, amateurs must be
citizens. About 7,500 amateurs are members of the Naval Communi¬
cation Reserve and Army Amateur Radio System and use their sta¬
tions at regular periods for training pur^DOses.
It is estimated that probably not more than 15,000
amateurs are active in the United States during any month of the
year.
The majority of licensed amateur stations use radio¬
telegraphy exclusively and are entitled to use all of the amateur
frequencies. The "phone" amateurs are allocated the shared use
of certain amateur frequencies within the general bands assigned
to the amateur service. The only radio-telegraphic code per-
- 8 -
12/6/39
mitted amateurs is the International Morse Code. All amateurs
have passed a test of their ability to transmit and receive mes¬
sages in this standa.rd code at the rate of at least 10 words a
minute. Present examinations have raised this requirement to
13 words a minute.
Under the provisions of the Cairo radio regulations
and the Inter- American radiocommunication agreement, the only
countries which have authorized amateurs to engage in third-party
international communication are, in addition to the United States,
Chile, Peru and Canada. Because of the war, Canada and several
other countries have closed amateur stations for the duration of
the war. All countries which permit amateur radio restrict such
service to communication between the operators themselves.
At the present time, amateurs in this country are per¬
mitted to operate portable-mobile stations without separate lic¬
ense. Portable stations can be moved about from place to place
but must not be operated while in motion. Portable-mobile sta¬
tions are those which may conveniently be transferred to or from
a mobile unit or from one unit to another, and ordinarily operate
while the mobile unit is in motion.
Monitoring stations of the Commission - which are
located in Boston, Baltimore, Atlanta, Grand Island (Nebr. ) ,
Great h^kes (ill.), Portland (Ore.), and San Pedro (Calif.), -
observe the amateur band.s daily. In addition, field Inspectors
listen to amateur operation. The amateurs, for their part, have
established their own neutrality patrol during the period of the
present emergency.
This Government has long recognized the necessity of
providing for the development of amateur radio, and has encourag¬
ed the use of such stations in many important fields of communi¬
cation. Their wide distribution not only creates a most important
resource in connection with regional disasters, but also contri¬
butes a great body of experiments, making contributions to the
radio art and serving as a valuable reserve for the national
de fense.
xxxxxxxx
World radio market reports recently Issued by the
Department of Commerce include: Cuba, Turkey, Nigeria, Mexico,
Algeria, French Oceania, Burma, New Zealand (supplement), and
Panama.
XX XXXXXXXX
- 9 -
,1
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12/8/39
TRADE NOTES : : :
Negotiations are in progress with several major uni¬
versities of the nation with a view to the adoption of CBS edu¬
cational broadcasts as accredited work to supplement classroom
study, according to Sterling Fisher, Columbia^ s Director of Educa¬
tion. Mr, Fisher told of the negotiations at a meeting in New
York City of the educational directors of Columbia's Eastern sta¬
tions - a session also attended by representatives from Southern
and Mid- We stern stations.
The Mutual network's cumulative billings for the 11
months of 1939 totaled $3,012,083, representing an increase of
16.6 percent over a similar period in 1938 when the figures total¬
ed $2,582,955. Billings for November, 1939, added up to $327,045.
November, 1938, came to $360,929, indicating a decrease of 10.4
percent .
Herbert Ell is ton of the Christian Science Monitor has
been added to the Columbia European staff as corresnondent on
the Russo-Finnish Front, In Helsinki when the war broke out
November 30, Elliston was immediately assigned to bring American
listeners eye-witness details of the war. His broadcast on
December 2 was the first account of the war from the Finnish
capital by a radio staff correspondent.
Several members of Capital society were startled to
receive in the mail this week a large, typewritten piece of pa.per
which looked like a summons to court. However, on closer exami¬
nation, the missive turned out to be an amusing invitation from
Louis G-. Caldwell, radio attorney, who had couched it in legal
language to a party on Sunday, December 17, in honor of Philip J.
Hennessey, Jr. , newly elected President of the Federal Communica¬
tions Bar Association, and Mrs. Hennessey.
"In the Matter of Philio J. Hennessey, jr. , et uxor, "
reads the invitation, "you are ordered to show up at 200 Cleveland
Avenue from 5 P.B/i. until the second hour after sunset. Purpose:
To explore Mr. Hennessey's lega^., technical and other qualifica¬
tions for his special temporary experimental modification of
status. Social and economic factors: cocktails and/or tea. "
Hailed as a masterpiece of radio anthology by educators
and experts in redio - they have had an opportunity to study its
text prior to publication - Max Wylie's "Best Broadcasts of 1938-
39" is to be placed on sale, Monday, Dec. 18. (Whittlesey House,
$3.50), The volume covers outstanding radio broadcasts which
were heard in America between Jan. 1, 1938, and July 1, 1939.
XXXXXXXX
- 10 -
1
12/8/39
TELETYPE SERVICE INVOLVED IN WIRE MERGER PLAN
The coming report of the Federal Communications Commis¬
sion recommendation of the unification of the Western Union and
the Postal Telegraph companies will prooose in addition that the
new concern be permitted to tahe over the leased wire and tele¬
type services of the American Telephone and Telegraph Company so
as to bolster the revenues of the consolidated organization, accord¬
ing to the New York Times' financial page.
"The Commission’s report to Congress, expected within the
next week or ten days, will for the first time inject the national
defense factor into the long-standing argument for merging the
two major telegraph companies", the Time s said, "Such is the
degree of obsolescence in equioment of both companies as to con¬
stitute a threat to national security in time of war, according to
a resume of the report.
"It is the Commission’ s conclusion, after an extended
investigation, that the financial disorganization of the two com¬
panies due to lack of business, is sufficient to warrant its rec¬
ommendation that Congress authorize their consolida.tion. To this
has now been added the imoortant factor of national defense,
"Ylewed from the standpoint of wartime requirements,
the Commission finds, the combined facilities of both companies is
considerably below par, notwithstanding the relatively superior
equipment of the Western Union which undertook an extensive
replacement program in 1929.
"It is the Commission’ s thought that both revenue and
equipment deficiencies of the two companies can easily be rem¬
edied through a consolidation of the two properties and the turn¬
ing over to the unified company under lease the so-called leased
wire and TWX or teletype facilities of the A. T. & T. Consider¬
ed ’the cream of the telegraph business' these two services
would produce more than enough revenues to place the new company
on a sound financial footing, in the Commission’s opinion.
"It is the understanding of some Commission officials,
moreover, that the A. T. & T. would have no serious objection to
the surrender of its leased wire and TWX facilities to the new
telegraph company provided lease terms satisfactory to the former
organization can be arrived at. Officials anticipate no insurmount¬
able obstacles to such an arrangement.
"The A. T. & T. offered to lease its teletype service to
the Western Union after perfecting it, but the offer was rejected
on the ground that the lease terms v/ere too high, it is under¬
stood. For the A. T. & T. it is said, however, that the proposed
terms were computed to cover the expense of developing the tele¬
type device and some reduction of the original figure now would
be expected. "
XXXXXXXX
- 11 -
■f--:
12/8/59
GOVERNIjENT wire rates raised by fcc
The Federal Coraniunications Commission this ?reek order¬
ed, effective January 1 next, Government rates on official
domestic telegraph messages increased from the present 40 percent
of the charges applicable to commercial communications to 60 per¬
cent of such charges.
The new rates, subject to the same minimum charges
as are now effective, will continue in effect until June 50,1940.
In all other respects the charges, terms, and conditions as pro¬
vided in Commission Order No. 41 and extended by Commission Order
No. 58 remain unchanged.
This final action on the Commission's proposal of
November 5 last, is tased on petitions by the Western Union
Telegraph Company, Postal Telegraph- Cable Company, Mackay Radio
and Telegraph Co., Inc., of Delaware, and Mackay Radio and Tele¬
graph Co. , of California, for increased Government rates. The
time for filing exceptions exi^ired November 27. No exceptions
were filed by any of the parties to the proceeding.
XXXXXXXXX
RADIO CHIEF AIE3EMENT OF CHILDREN, SAYS PROF.
Instead of playing "cops and robbers'^ and other kid
games in their spare time, youngsters of today are planting
themselves beside a radio, according to Dr. John P. McKay,
Principal of a suburban St. Louis School. He said a survey show¬
ed 11-year-old children spend about one-half as much time listen¬
ing to the radio each week as they spend in school, the Associated
Press reported. And 85 percent of the programs they hear haven't
been prepared for them.
They like dramas with plenty of action, variety shows,
including comedy, music and drama and audience-participation
programs - all types which also are favorites with adults.
Dr. McKay based his conclusions from the answers given
by 1,909 sixth-grade pupils in record books which they kept them¬
selves. Ninety-one radio programs were listed and children were
asked to jot dovm the broadcasts heard over a two-week period.
The boys liked crime stories best while the girls preferred a
drama featuring a Hollywood star. The children tuned in programs
planned for them only 17 percent of the time. The first of the
so-called children's serials ranked ninth.
An average of 14 hours a week was spent by the children
at the radio, with almost twice as much time being given to listen¬
ing from Monday through Thursday as over the week-end. One-fifth
of the youngsters had their own radio sets.
Dr. McKay said he believed that radio is a leading, if
not the major, leisure-time activity of children.
XXXXXXXXXX
- 12 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
"TIP'M '■ A, |sii5.
LEGAL DEPARTMENT _
© i li [g u » E in"
' "“DEC 13 1939^
w ^ „
: ’ r'L V Li « I '•>(, A « A -i
ISSUE OF DECEMBER 12
1939
Mild House Inquiry Seen During Budget Hearing, . . . . . 2
BBC Hires First Woman Radio Announcer . 5
Radio War News Coverage Praised By Sarnoff . ,3
RCA Says Waves Needed As U. S. Defense Measure . 4
Radio Celebs Dine In State . 5
Dutch Colony Bans Use Of Radio Ne^vs . 5
Zenith Designed Raalway Radio System In 1926 . . . 6
BBC Likes New Signal Better Than Music . 7
Trade Notes . 8
CIO Leader Hits FCC; Views Differ On Wire Merger . 9
England Not To Give Up Electrical Trade During War . 10
FCC "Eminently Fair", WLW Executive Says . 11
RCA To Reduce Tubes To 36 . * . 12
Press Must Check Radio Propaganda, Says Writer . IS
No. 1192
1
. ^
J
December 12, 1959
MILD HOUSE INQUIRY SEEN DURINO BUDOET HEARING
The Federal Communications Commission on Wednesds.y of
this week will go before a Sub- Committee of the House Appropria¬
tions Committee for its annual grilling as to its past year’s
record.
Ostensibly, the Inquiry is for the purpose of deter¬
mining how much money the FCC needs to operate for the next
fiscal year, but it has been the custom for several years to put
the Commissioners, especially the Chairman, on the grill with
regard to matters only indirectly connected with expenditures.
This year the inquiry is expected to be comparatively
mild, however, because of the change within the Commission since
the resignation of former Chairman Frank R. McMinch. The present
harmony within the Commission appears to have silenced FCC
critics even on Capitol Hill.
Republican members of the Sub- Committee , particularly
Representatives Wiggle sworth, of Massachusetts, and Dirksen, of
Illinois, are prepared to cross-examine Chairman James L. Fly and
perhaos other members of the Conmiission, but it is doubtful that
their attitude will be as severe as it was last year when McNinch
was in the midst of an FCC ’’purge".
The FCC is asking for a.dditional funds this year to
finance expanded activities, and Commissioners are afraid that the
general national economy move may block the appropriations.
The FCC encountered the first disappointment along this
line this week when the Budget Bureau cut out of the Commission's
estimates q request for $329,000 to set up a staff for stricter
regulation of the telephone industry. Officials of the FCC are
afraid tha.t the Budget Bureau’s action, unless reversed by
Congress, may result in another year’s delay in effecting some of
the reforms recommended in the telephone report.
Officials are pondering the latest act of the Budget
Bureau in rejecting the current request, in the fact of the fact
that the President toward the end of the last session of Congress
approved a request of the Communications body for a similar amount.
However, Congress did not provide it, although that body is said
to be fully cognizant with the lack of regulation, not only as a
result of its own investigation, which resulted in including
regulatory provisions in the Communications Act, but was again
fully informed in the Commission’s report on its investigation,
which it conducted for Congress at a cost of more than a million
dollars.
2
The Coraraission informed Congress that it has become
apparent as a result of the telephone investigation that the
issues involved in the regulation of interstate telephone rates
are broad and intricate, and that highly organized effort will
be essential to any adequate or effective permanent regulatory
procedure. It was asserted that efficient machinery for the
gathering, digesting and presentation of all necessary facts must
be devised and brought into continuous operation, and a carefully
developed administration must be set up in order to perform these
specialized functions.
Without the necessary funds to carry out the mandates
of its organic act, the Commission’s functions so far as telephone
regulation is concerned, is largely that of providing a place where
its tariffs may be filed. Although the small force which it uses
for this ourpose is able to detect inconsistencies in tariffs from
time to time, and has made efforts to regula.te same, the force
is not large enough for the necessary research whereby the tariffs
and their background may be thoroughly examined, to determine the
fairness of the various charges.
xxxxxxxx
BBC HI FES FIRST WOf.IAN F.4DI0 ANNOUNCER
Elizabeth Cowell, former television announcer, has
returned to the British Broadcasting Corporation, by arrangement
with the Air Ministry, as the first regular woman announcer in
the British Home Service programs.
"Elizabeth Cowell fully deserves the honor of breaking
into this hitherto forbidden ground", says the Radio Times. "Her
television announcing, of course, established her claim, and
television announcing is in many ways a harder Job. There was in
the early days the constant apprehension that something would go
wrong, and all through a program the announcer would have to be
ready to leap into the breach if it did. "
xxxxxxxxx
RADIO WAR NEWS COVERAOE PRAISED BY SARI'TOFF
David Sarnoff, President of the Fj^dio Corporation of
America, who attended the G-ridiron Club dinner in Washington last
Saturday night, said the radio has done a good Job in covering the
war.
"I think the radio has done a standout Job in present¬
ing facts about the European crisis and the war to American
listeners", he said. "I think it has lived up to its best tradi¬
tions of freedom of speech and equal opportunity for all to be
heard. I think the radio has had an important part in making the
American people the best informed people in the world, Americans
know more about what's going on in Europe today than the Europeans."
XXX xxxxxxx
- 3 -
I
J
^ 1
I
RCA SAYS WAVES NEEDED AS U. S. DEFENSE MEASURE
Retenti(II)n of radio point-to-point telegraph frequencies
by licensees who have held them for a period of years without
making commercial use of them is most important in the national
defense, Ma j . Gen. James G. Harbord, former head of the service
of supply in the American Expeditionary Force and Chairman of the
Board of the Radio Corporation of America, told the Federal Com¬
munications Commission last week.
General Harbord testified RCA radio stations had been
located with national defense in mind, and that it was for that
purpose that he was originally selected to supervise the RCA
program.
At the same time, the Commission was informed by
William A. Winterbottom, Vice-President in charge of R. C.A.
Communications, Inc. , that British domination has prevented his
corporation from gaining a contact point in Australia for use of
the frequencies allocated to the organization in 1931. The hear¬
ing was before Commissioner Frederick I. Thompson on the matter
of renewal of licenses for the three frequencies for use in
point-to-point telegraph between the United States and Australia.
At present, it was said, there is no direct communica¬
tion between the United States and Melbourne and Sydney. Messages
to and from this countiy to Australia have to go by way of
Montreal or British Columbia. As a consequence they are subject
to all the delays involved in relays and to scrutiny during per¬
iods of conflict.
Soon after the licenses were granted to R. C.A. Communi¬
cations, the American corporation entered into a contract with
the Consolidated Wireless of Australia, Ltd. , for contact stations
at Sydney and Melbourne . The service was not established, how¬
ever, because about a month after the contract was signed, a
new Committee was formed, which set up a communications policy
for the Empire.
The general purpose of this was to direct traffic over
British systems. But it appears that within a short time steps
will be taken which will permit the Australian company to estab¬
lish contact with the American stations.
It was pointed out that if the frequencies were with¬
drawn from the company now, the impression would be gained that
the United States was turning its back on its nationals in the
matter of communications.
Col. Manton Davis, Vice-President in Charge of the Legal
Division of R. C.A. , told the Commission he had been authorized
by the Secretary of State to inform, it the State Department was
deeply interested in this service. He suggested that it might
serve a useful purpose if the Commission before acting on the
matter would contact the State Department.
4
RADIO CELEBS DINE IN STATE
Two of the major national political dinners of the
year, held within a few days of each other - the Oridiron and the
National Press Club - brought many notables to Washington last
week. President Roosevelt attended both dinners.
Among those identified with the radio industry at the
Gridiron Dinner were :
E. F. McDonald, Jr., President, Zenith Radio Coroora-
tion; David Sarnoff, President, Radio ConDora.tion of America;
Commissioners, Thad H. BroTj'-n and T.A.M. Craven, Federal Communi¬
cations Commission; Edward Klauber, Vice-President, Golumbia
Broadcasting System; Gene Buck, President, American Society of
Composers; Harry C. Butcher, Vice-President, Columbia Broadcast¬
ing System, Washington; Senator Burton K. Wheeler, of Montana;
and Edgar Morris, Zenith distributor, Washington.
Radio was reoresented at the Press Club Dinner by
Alfred J. McCosker, President, Mutual Broadcasting System; Louis
Ruppel, of New York, in charge of press relations for the Columbia
Broadcasting System; Frank M Russell, Vice-President, National
Broadcasting Comoany, Washington; Oswald F. Schuette, short-wave
coordinator for the Radio Corooration of America; Paul M. Segal,
radio counselor; Kurt Sell, German Broadcasting Company; Sol
Taishoff, editor, Broadcasting magazine; Kenneth Berkeley,
Washington Manager of NBC; Gene Buck, President, American Society
of Composers; Martin Codel, publisher. Broadcasting magazine;
Earl Godwin, radio commentator; F. P. Guthrie, Washington Manager,
R. C.A. Communications, Inc.; and Ben S. Fisher, radio counselor.
xxxxxxxxx
DUTCH COLONY BANS USE OF RADIO NEWS
A recently published "Radio Publication Ordinance" pro¬
hibits the publication in the Netherlands Indies of radio news
without the permission of the Director of the Depa.rtraent of
Traffic and Communications, according to the America.n Trade Com¬
missioner at Batavia, Java. The object of the ordinance is to
prevent the spread of news, received via radio, which might be
injurious to the national interest and the order and peace of
the Netherlands Indies. Under these regulations, only news
agencies - in the present case only the Aneta qualifies to the
prescribed terms - v.rhich can adequately guarantee an expert and
critical treatment of the news, are given permission to distribute
radio news to others for publication by the latter. Publicists,
publishers of periodical and others who are equipped to regularly
receive and expertly process radio news may also be granted per¬
mits to publish such news in their own publications. Permission
to relay foreign radio news is given only to holders of broad¬
casting permits.
XXXXXXXX
- 5 -
12/29/39
ZENITH DESIGNED RAILWAY RADIO SYSTEM IN 1926
News reports of the installation of a two-way radio
communication system between the engineer's cab and the caboose
recalls to Cornmdr. Eugene F. McDonald, Jr. , President of the
Zenith Radio Corporation, that Zenith designed a similar outfit as
early as 1926.
The development was described by Henry C. Forbes, for¬
merly of the Zenith Corporation, in the October, 1927, issue of
"Proceedings of the Institute of Radio Engineers".
Explaining the workings of the system, Mr. Forbes wrote:
"Duplicate two-way telephonic transmitter- receivers
were mounted (for the purposes of demonstration) in an iron box
30 in. long, 6 in. deep, and 10 in. high, the receiving apoara-
tus occuoying a left-hand compartment and the oscillator cir¬
cuits a right-hand compartment, with the modulator, speech
amplifier and switching relay circuits in the center. A simple
regenerative receiving circuit was employed having a detector and
three stages of audio-f requency amplification. A power tube was
used in the third stage. A single tuning control, with fixed
regeneration is thereby possible, and has been found adequate.
"The transmitter employed two tubes of 50-watt rated
plate dissipation, one as oscillator and the other as modulator,
with a 7-|-watt tube as a speech amplifier. Power for the plate
circuits of the transmitting tubes was obtained from an Electric
Specialty Company dynamotor of 200- watt capacity mounted in a
totally enclosed frame, and provided with ball bearings. This
dynamotor starts and stops very quickly. The dynamotor is driven
by a twelve-volt Exide storage battery of the heavy-duty vehicle
type, althou^ the system is readily adaptable to any battery
voltage. Power for lighting all filaments is obtained directly
from this same battery. "
"In practice, the receiving sets are left in operation
at all times when the train is under way, a switch being provid.ed
for the purpose. When communication is desired, the button on
the handle of the microphone is pressed, thereby actuating the
relays which make the necessary switching connections for operat¬
ing the transmitter. The button is released to restore the
receiver to operation. The switching, including the starting of
the dynamotor, takes only about one second, and very ranid two-
way conversation is possible.
"The functioning of the aoparatus is indicated to the
operator by the flashing of colored pilot lights. One light
indicates that the receiver is in operation. A second flashes
when the 'talk' button is pressed, and indicates that the trans¬
mitter is ready for operation. A third pilot light is onerated
directly from the antenna current, and the flashing of this
light indicates to the operator that the transmitter is function-
6
12/12/39
ing properly. This third light also flickers with the modulation,
giving a direct indication that modulation is taking place. The
meters shown in the photographs are not to be used on peraanent
apparatus.
"A signaling system has also been provided which may be
used to attract the attention of the crew at either end of the
train. This signal is operated by pressing a second • signal’
button which is mounted either on the microphone handle or on the
set proper, and, when operated, produces a shrill note of about
800 cycles in the loudspeaker at the opposite end of the train.
This frequency was selected for this purpose after some experi¬
ment, and is readily discernible in the locomotive through the
noises encountered in running. This signal may also be used to
pass code signals in case of failure of the telephonic system.
’’Special microphones were used in order to avoid the
introduction of the terrific road noises into the communicating
system. An aircraft type of anti-noise microphone, originally
developed for war service, was found to be very satisfactory.”
"With the application of radio communication to rail¬
road freight service comes also the application of a similar ser¬
vice to passenger train operation, not only for the purpose of
train handling, but also for the purpose of intercommunication
between trains, and between a train and a way-station. A further
application which has been given some consideration is that to
large freight yards where one towerman controls all of the loco¬
motives working in a yard perhaps five miles in length. Much
time is now lost because o*f the lack of prompt communication
between the tower and the individual locomotives. ”
xxxxxxxx
BBC LIKES NEW SIG-NAL BETTER THAN mSIC
"Our more ingenious readers might like to consider an
alternative to the BBC interval signal", the British Broadcasting
Corporation comments. "A well-knovm wireless Journalist in India
has been drawing attention to it. He does not like the 'tlck-tock
and says that it reminds him of a firing party taking a prisoner
out to be shot. The present metronome signal is rea.lly a rever¬
sion to an old practice; and was re-introduced because the sound
of Bow Bells was inclined to be too loud for listening in certain
quarters where it is a serious offence to listen to a foreign
station. One difficulty in devising a really good Interval signal
is that music is not distinct enough and mere noise might be mis¬
taken for distortion. "
XXXXXXXXX
7
J 03
12/12/39
tra.de notes : :
The Federal Communications Commission this week issued
a new list of all radio stations in the emergency service in the
United States. This includes municipal and State police, inter¬
zone police, marine, fire, zone police, special emergency, and
forestry stations.
''The Magic of Radio Transmission" is the title of a
booklet just issued by the Columbia Broadcasting System. In
simple language it explains the technique and methods of broa.d-
casting, both on long and short waves.
Radio promotion activities by the San Francisco
Chronicle and San Francisco News are confined to a few special
events and are not to be construed as heralding the return of
radio columns to San Francisco newspapers, it stated last
week in Editor & Publisher.
Commissioner G-eorge Henry Payne is the author of an
article entitled "Theodore Roosevelt, Fox Hunter" in the December
issue of the Long Island Forum.
For the third time since it established a nation-wide
competition four years ago. Variety magazine has chosen WLW as
the recipient of one of its Showmanship Awards, James D. Shouse,
Vice-President of the Crosley Corporation in Charge of Broadcast¬
ing, was informed this week. In a telegram to Mr. Shouse, Variety
editors said that WLW had been selected for the award in the
field of national exploitation. In 1936 and 1938, WLW received
the awrard in the division of program-originating stations.
The Variety Showmanship Awards are considered the fore¬
most of their type in the radio industry. A bronze plaque,
emblematic of the award, vd-ll be presented to WLW,
The Office of the American Commercial Attache, Caracas,
reports it is estimated that over ^500,000 worth of radio receiv¬
ers were imported into Venezuela during 1938, and of this more
than 75 percent came from the United States. The market at this
time is principally for the larger table models and console
models. Practically all receivers sold are the so-called "all¬
wave" models. Short wave reception is good, and almost all radio
users demand sets with tuning in the higher frequencies, as well
as in the 250-550 meter band.
XXXXXXXXX
- 8 -
I
' fl
: 5:
A.
i
12/12/39
CIO LEADER HITS FCC; VIEWS DIFFER ON WIRE MERGER
The Federal Communications Commission last week was
charged with ignoring the rights of labor in perfecting plans to
ask Congress to authorize the merger of Western Union and the
Postal Telegraph Company as rumors were circulated that the mem¬
bers of the FCC are not in entire accord on the proposition,
A lengthy forecast in the New York Times of what the
FCC report will contain was called "premature" by an FCC official,
who pointed out that the Commission had just received a copy of
the findings of its investigating staff and had reached no decision.
Joseph Selly, Vice President of the CIO American Communi¬
cations Association, assailed the FCC in a statement based on the
Nev^ York Times* report ( see December 8 issue of Heinl Letter) .
Mr. Selly said that the FCC was concealing plans to per¬
mit the discharge of "thousands of workers" without really investi¬
gating the labor situation involved, and is hiding this alleged
attitude behind the assertion that one of the chief obstacles
to be overcome in the merger is a jurisdictional dispute between
the C.I.O. and the American Federation of Labor with regard to
which workers are to be employed.
"The main question is not what union, A. F. of L. or
C.I.O. , shall have jurisdiction over the workers in the merged
company", Mr, Selly asserted. "The main question is whether the
companies should be permitted to merge at the ex>:)ense of their
employees or ?rhether a merger should mean better and more secure
jobs for these employees.
"The American Communications Association (C.I.O.) has
taken a very clear position on this question. We believe, on the
basis of our intimate knowledge and evidence of conditions in the
industry, that any merged comoany which would give efficient ser¬
vice to the public, meet the needs of the national defense and pro¬
vide really national telegraph service, would require the services
of all those presently employed and many more besides. We believe
that any merged company which eliminated the bad working condi¬
tions now prevailing in Western Union would require many more
employees in order to provide adequate service.
"This position was set forth in the hearings on Senate
Resolution 95, which provided for an investigation of the tele¬
graph industry. Our organization actively supported S. R. 95
because we believed that an investigation of the facts by a
governmental agency would support our contentions.
"But the Federal Communications Commission has not
bothered to investigate the facts before it blithely proposes to
eliminate the jobs of thousands of workers. The FCC held meetings
with the A. C.A. on its proposed merger plan after it had completed
- 9 -
12/12/29
Its plan instead of before. The FCC representatives at a recent
meeting with a committee of our union members told us that they
were merely 'crystal gazing* as far as labor was concerned. Yet
the FCC in the public press claims to have carefully studied this
matter. This claim is fraudulent.
"The attempts of the FCC to present the labor side of
the merger as a jurisdictional dispute are merely a blind to
cover up its own ignorance on the whole question of labor in the
communications industry, despite the fact that it is the regulatory
agency involved. "
XXXXXXXXXX
ENGLAND NOT TO GIVE UP ELECTRICAL TRADE DURING WAR
The U. S. Bureau of Foreign & Domestic Commerce,
Electrical Division, last week published an article taken from
"The Electrical Review" of London, with the observation that it
"indicates England does not intend to relinquish the export
trade built up in Latin America or other countries and will do
all possible to maintain exports as well as to cultivate export
trade formerly enjoyed by Germiany."
The "Electrical Review" article follows, in part:
"Modern warfare demands for its successful prosecution
the concentration of the whole of the resources of a nation upon
that one aim. But this does not mean that the production of
munitions of war is the sole consideration. A country like Grea^t
Britain has to ensure continuance of essential supplies from over¬
seas, and while payment for these can be made in several ways,
one of the most important is by the counterbalancing of imports
by exports as far as possible. This need is accentuated by the
difficulties of providing the 'invisible' exports (shipping, ser¬
vices, etc.) which help to square the account in peacetime.
"The stoppage of German electrical exports to a number
of imoortant markets should not merely be allowed to bring advant¬
age to neutrals. The United States naturally hopes to capture a
large share of former German trade, particularly in Latin America
and there is no reason why she should not. But the large volume
of our imoorts from South America demands that we should export as
much as we can to these countries.
"The im-oortance of maintaining export trade is fully
recognized by the Government. In a recent memorandum to trade
organizations, the President of the Board of Trade said that it
was essential in the national interest that traders should be
encouraged to maintain and increase their exi:)ort trade to the
greatest extent, consistent with vital war needs, and the
Government was anxious to assist them in every possible way.
10
"The obtaining of the necessary supplies of materials
is naturally the principal obstacle to production at the moment.
A substantial proportion of materials used in electrical manu¬
facturing has to be imported, but apart from this much of these
materials is of the kind required for munitions of war .
"It will be seen, therefore, that provided the supplies
of materials can be maintained, and so far as war demands permiit,
there is ample scope for holding on to much of our electrical
export trade. That trade, built up so laboriously during the past
twenty years, must not be allowed to go by default. We are not
shutting our eyes to the extremely severe handicaps which have to
be surmounted, but we have sufficient faith in the inherent
strength of our electrical manufacturing industry to feel sure of
the preservation of a substantial proportion of the trade with
the assurance that the G-overnment will abide by its declared
intention to foster and encourage export business. "
xxxxxxxxxx
FCC "EMINENTLY FAIR", WLW EXECUTIVE SAYS
James D. Shouse, Vice-President of the Crosley Corpora¬
tion in charge of broadcasting and General Manager of WLW for the
first time made public reference to the Federal Communications
Commission last week, when he addressed 500 members of the Cincin¬
nati Electrical Association.
"As most of you know, v/e at WLW have had in some respects
more than our share of contact with this Commission", Mr. Shouse
said. "Yet I would like to assure you that while our adherence to
the policy of high power as the best means of improving service to
small town and rural people seems currently to be at variance with
the philosophy of the present Commission, we regard this divergence
of views as an honest difference of opinion.
"We have found the Commission", he added, "in our many
dealings with them, to be eminently fair and sincerely attempting
to keep American broadcasting progressive and honest in its
assumption of the obligation it incurs while operating on facil¬
ities supplied to it by the people of this country for the use and
enjoyment of all Americans."
Mr. Shouse noted that radio is often accused by dis¬
gruntled critics of being subservient to pressure from Washington
or Wall Street or any other group in particular disfavor with a
considerable group.
"But", he said, "nothing could be further from the
truth. Broadcasters have made mistakes, they make mistakes now,
and I have no doubt but that in the future they will make mis¬
takes, but I think it is extremely unlikely that these mistakes
will include, at any time on the part of any thinking broadcaster,
any foundation for the charge that radio broadcasting as we have
it in the United States is the tool of any group or is influenced
by any power other than the best judgment and the conscientious
thou^t of the broadcasters themselves. "
11
J
12/12/39
Freedom of the air is the fundamental principle of the
American system of broadcasting, Mr, Shouse pointed out, "Nobody
controls radio programs and nobody censors them except to conform
with good taste and public interest. The result is that in the
entertainment and educational end of radio there is a free and
untrammeled expression of opinion and unlimited scope for ideas, "
XXXXXXXXXXX
RGA TO REDUCE TUBES TO 36
Reduction in the number of receiving tubes in the radio
industry from 453 to a total of 36 types, which perform virtually
all basic tube functions is the aim of a new program of the RCA
Rs.dio Tube Division, it was announced last week, A survey under
the supervision of L, W, Teegarden, RCA Tube and Parts Sales
Manager, has revealed that although 453 different types are pro¬
duced by the industry, 90 percent of all sales are centered in
only 90 tube types, for which only 20 basic functions exist.
Taking the initial step in the direction of tube stand¬
ardization, Henry C. Bonflg, Commercial Vice-President of the RCA
Manufacturing Company, announced that all new RCA Victor radio
receivers and Victrolas now contemplated for future production will
be designed to include the radio tube types on the "preference"
list of thirty-six basic types. It was pointed out that standard¬
ization would not only help tube and radio manufacturers but
wholesalers, dealers and service men as well.
xxxxxxxxxx
PRESS MUST CHECK RADIO PROPAGANDA, SAYS WRITER
The short-wave broadcasts of propaganda from abroad
have saddled the American press with a new and serious duty,
according to B. E, Lucas, author of a daily column, "We’re Listen¬
ing" in the Chicago Times, and veteran correspondent.
Writing in the December 9th issue of Editor & Publisher,
Mr. Lucas said he had become convinced from listening daily to
these broadcasts that "our newspapers have to be - for the dura¬
tion of the war at least - the watchdog of radio.
"To consider the radio merely a competitor in the busi¬
ness of news dispensation is no longer possible. Long before the
war started radio had become, to put it mildly, a force laying
foundations for the molding of public opinion. The government
shortwave stations Lon don- Da ven try, Paris-Mondial, and Berlin-
Zeesen are the outspoken proof for this.
"It is these millions of Americans on which foreign
radio propaganda is focused. They form the nucleus on which for¬
eign propaganda is working with all its might to mold foundations
for coming national and international events. And how many of
these listeners conform with the outpourings of the people who run
England, France and Germany, also Italy, Spain and Russia, becomes
instantly evident if one listens to the letter box editors of the
foreign stations . It would be ridiculous to assume that
American shortwave listeners fall for foreign propaganda 100^. "
XXXXXXXX -12-
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
0
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I uU DEC 16 1939^' ■
I'-. iS ' “4
INDEX TO ISSUE OF DECEMBER 15, 1939
FCC Disturbed At Reports Of Mexican Wave Shifts . 2
Radio Protection For G-reat Lakes And Inland Waters Urged . 3
FCC Field Office Established At Cleveland . 5
Disk Designation Requirements Contested . 6
FCC Far Ahead Of New Deal In "Alphabet Soup" . 7
Retirement Of Brown Rumored But Unconfirmed . 9
Labor Relations Unit Of FCC To Be Considered . 9
Trade Notes . 10
Frequency Modulation Report Being Studied . 11
No. 1193
''1
i>'9
FCC DISTURBED AT REPORTS OF MEXICAN WAVE SHIFTS
The Federal Communications Commission and the State
Department are disturbed at authoritative reports that the
Mexican (Government is preparing to allow high-powered border sta¬
tions to squat on clear channels assigned to the United States.
The border stations, which have been a source of fric¬
tion between the United States and Mexico for several years, are
operated by two Americans, who encountered difficulties with
United States redio regulatory agencies and moved inot Mexico.
They still direct their broadcasts, however, at United States
listeners.
According to reports current in the Capital, Station
XERA, at Villa Acuna, operated by John R. Brinkley, and XENT, of
Neuvo Laredo, operated by Norman T. Baker, are to be transferred
from shared Canadian wavelengths to American clear channels.
XERA uses 180,000 watts and has authority to operate with 850,000
watts, whereas XENT broadcasts with 50,000 watts and has authority
to use 150,000 watts.
Four channels used by 50, 000- watt stations in the United
States are being studied by Mexican officials, FCC officials are
informed, with the idea of selecting two of them for the border
stations' use. They are 710 kc, channel occupied by WOR^ Newark;
720 kc. used by WON, Chicago; 750 kc. , WJR, Detroit; and 1170 kc . ,
WCAU, Philadelphia.
XENT now shares 910 kc. with CFB, of Montreal, while
XERA operates on 840 kc. along with CBL^ Toronto.
The State Department and the FCC are still waiting for
Mexico to ratify the Havana Treaty, which was designed to place
relations between the United States and Mexico in radio matters
on an amicable basis.
Officials are afraid that the new plan of Mexico, if
carried out, will bring about another rift similar to that which
existed between the two countries in radio matters several years
ago.
The FCC also has been advised of the reallocation of
15 Cuban stations to eliminate interference with the United States
CMQ,, Havana, has shifted from 780 kc. to 690 kc. , used by CFPffi,
Toronto, in the principal move.
The immediate result of the CMQ, shift was to relieve WMC
Memphis, WTAR Norfolk and WEAN, Providence, all on 780 kc., from
interference ^hich has troubled them for approximately a year.
XXXXXXXXX
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12/15/39
RADIO PROTECTION FOR GREAT LAKES AND INLAND WATERS URGED
Present radio communication facilities of shipping on
the Great Lakes and coastal waters do not adequately protect life
and property, Commissioner Thad H. Brown reported to the Federal
Communications Commission this week in recommending legislation
and other regulation to insure better safeguards.
For ships on the Great Lakes, a uniform system of radio¬
telephony is proposed. This would be established by formal agree¬
ment between the United States and Canada, supplemented by legis¬
lation of the respective countries, to take effect for the 1942
navigation season.
For vessels using the bays, sounds, and other seaboard
waters of the United States, an optional use of radiotelephony or
radio telegraphy is recommended, effective January 1, 1942.
This is the gist of an exhaustive "special study of the
radio requirements necessary or desirable for safety purposes of
ships navigating the great Lakes and the inland waters of the
United States” ordered by Congress on May 20, 1937, in amending
the Communications Act of 1934 for the purpose of promoting sefety
of life and property at sea through the use of wire and radio com¬
munication.
The Federal Communications Commission, on May 26, 1937,
designated Commissioner Brov>.mi to conduct the study, with the aid
of a special staff of selected technicians.
The FCC as a whole must now consider the report and
transmit "recommendations and reasons therefor" to the Congress
not later than December 31st.
"The present system of radiotelegraph communication is not
sufficient for the adequate protection of Great Lakes shipping
because of the limited number of vessels subject to compulsory
installation and the short season of operation of those vessels",
the report says in its conclusions. It points out that "a very
large part of the merchant marine of the United States is engaged
in the navigation of the Great Lakes".
"The Great Lakes area is visited by frequent storms
because of geographical location and distance from mountains and
other protective land masses", comments the report. Because of
ice conditions the season of interlake navigation is restricted
to about eight months of the year. From 1923 to 1937 there were
1570 navigation casualties on these lakes involving American
vessels, in which 326 lives were lost and property da.mage amounted
to nearly |30, 000,000. Most of the vessels concerned were not
equipped with radio. In instances where vessels were so equipned
there was little or no loss of life. Captains of American cargo
vessels on the lakes testified to the usefulness of radio facil¬
ities in facilitating safe na.vlgation. "
3
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The United States, on July 7, 1936, ratified the Inter¬
national Convention for Safety of Life at Sea (drafted at London
in 1929), but radio requirements for vessels engaged on interna¬
tional voyages have not been interpreted to apply to the Great
Lakes. The Governments of the United States and Canada have con¬
firmed this interpretation by enacting legislation with respect
to the lakes without regard to the convention. However, radio
requirements of both countries are not uniform. Congress seems
desirous of correcting this situation for, in the report which
accompanied the bill directing the present inquiry, it was said:
’’In this situation, it is earnestly hoped and expected
that the State Department will in the near future reach an agree¬
ment with the Canadian Government for the utilization of radio
to its fullest extent as a safety factor for shipping on the Great
Lakes so that the ships of both countries will be placed on a basis
of equality in this respect and will receive assistance from the
ships of each other as on the high seas. ”
Specific recommendations in the report include:
"1. A system of radio communication for safety purpose
should be required by law for designated classes of vessels navi¬
gated on the Great Lakes.
”2. The system should be uniform in all fundamental respects
for vessels navigated on the Great Lakes regardless of national
re gi s try .
"3. The method of communication to be employed for safety
purposes should be radiotelephony.
”4. The Great Lakes are the territorial mters of the United
States and Canada, respectively, therefore it is believed that the
desired uniform system of radiotelephone communication for safety
purposes can best be established by formal agreement between the
Governments of the United States and the Dominion of Canada, sup¬
plemented by legislation of the respective countries.
"5. It is suggested that the formal agreement be negotiated
by the Department of State of the United States and the appropri¬
ate Government body of the Dominion of Canada. However, it is the
belief of representatives of the Federal Communications Commission
and of the Department of Transport of the Dominion of Canada that
a more satisfactory result could be obtained from a technical
standpoint if another year of experience and experiment with radio¬
telephony could be obtained before the conclusion of such an agree¬
ment. It is further the belief of these representatives, and it
is recommended, that agreements be negotiated and that supplementary
legislation be drafted with a view of placing the radio require¬
ments in effect beginning with the 1942 season of navigation on the
Great Lakes. "
4
12/15/39
Other recommendations specify the classes of vessels
which should be subject to requirements as to radio apparatus
and the maintenance of radio watches, provide forfeiture against
a vessel for violation, and would authorize the Federal Communi¬
cations Commission to administer the provisions of such an inter¬
national agreement in its application to Great Lakes shipping under
the American Flag.
In the case of shipping on bays and sounds, the same
report makes these recommendations i
”1. Radiocommunication facilities for safety purposes should
be required by statute for designated classes of vessels of United
States registry navigated on bays and sounds of the United States.
"2. The method of radiocomraunication, whether radio telegraphy
or ravdiotelephony , should be optional for all bay and sound vessels
compulsorily equipped by reason of such statute. ”
After specifying types of passenger vessels subject to
radio installation and discussing radio requirements, the report
says that any such vessel should for safety purposes carry at
least one qualified operator and that a continuous watch should
be maintained whether by a qualified operator or by an approved
type of automatic receiving apparatus. Likewise, thses supple¬
mental recommendations provide forfeiture for violation and propose
legislation to give the Federal Communications Commission authority
to approve, inspect and otherwise regulate such marine radio equip¬
ment.
xxxxxxxxx
FCC FIELD OFFICE ESTABLISHED AT CLEVELAND
Establishment of a permanent field office at Cleveland,
Ohio, effective January 1, was ordered this week by the Federal
Communications Commission. It will be located in quarters used for
the Commission's Great Lakes and Inland Waters Survey, now com¬
pleted. This office will be a sub-office of the main district
headquarters office at Detroit, and will be manned by one inspector
and an assistant to be transferred there.
The Cleveland office is made necessary by the fact that
in the past fiscal year inspectors from the Detroit office, besides
making regular inspections of broadcast, police, aeronautical, and
other radio stations in the Cleveland area, made regular trips to
Cleveland to examine 734 applicants for radio operator licenses.
XXXXXXXXX
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12/15/39
DISK DESIGNATION REQUIREMENTS CONTESTED
Elimination from the regulations of the Federal Communi¬
cations Commission of its requirement that transcribed and record¬
ed programs be announced as such was sought in a petition filed
this week by Gerald King, President of the Radio Transcription
Producers' Association of Hollywood, Inc. In the event the Com¬
mission does not look favorably on elimination of such announcements,
the petition asks that they be required only at the end of the
program.
Mr. King, through Attorney Ben S. Fisher, asks that the
Commission give serious attention to this problem during its con¬
sideration of the report of its Monopoly Committee. The Commission
was informed that the section of the regulations which require
announcement of the fact that a radio broadcasting station is us¬
ing a transcription at the beginning of such a program and during
each 15-minute interval has grown obsolete and is of no value to
the listening public and should be eliminated.
The petition contends that the public is interested only
in the substance and quality of the program broadcast and whether
it comes from a transcription made by live talent or by means of
mechanical devices such as a transmitter and wire line of live
talent, makes no difference to the listening public.
It was added that the more recent perfection of mechani¬
cal transcriptions tended to make the quality of both types of
programs similar and the effect upon the listening public would
be almost indistinguishable.
The public, the oetition continued, has the privilege
of listening to the program of its choice and whether it be live
talent or transcriotions, thelatter should not be penalized
by reason of the fact that the broadcasting station has chosen
this type of program as being superior to live talent.
The regulation regarding transcribed programs, it was
said, has been in effect since the days of the old Federal Radio
Commission. It was adopted on the premise that it was misrepre¬
sentation without informing the public.
However, it was pointed out some stations with live tal¬
ent programs available, are unable to put them on the air at the
time they come over the chains, and therefore record them for
reproduction later in the day.
There is a probability that the Commission's Monopoly
Committee will have something to say about the matter in its report
to the Commission, The fact-finding report ha<,s been completed and
was delivered to the Committee early this week. It is to be con¬
sidered immediately. The Committee gave considerable attention to
the matter of transcription broadcasting during the public hear¬
ings which covered a period of more than six months.
XXXXXXXX
- 6 -
12/15/59
FCC FAR AHEAD OF NEW DEAL IN "ALPHABET SOUP"
The Federal Communications Commission now has approxi¬
mately 65,000 active radio call letter assignments outstanding,
exclusive of G-overnment stations, according to a report issued
this week.
In round figures, this includes some 800 standard broad¬
cast call letters; 600 broadcast other than standard; 400 experi¬
mental; 3800 ship radio; 1800 aviation radio; 1100 police radio;
250 forestry radio; 54,000 amateur radio; 300 coastal radio; 800
fixed radio, and the rest miscellaneous.
Licensing of both radio stations and operators is now
according to a definite plan. This is in contrast to the early
days of radio when there was little or no system.
At the turn of the century it became apparent tha.t vdre-
less stations should have certain designated letters in order to
avoid confusion. The Berlin international radio convention of
1906 oroposed such a system, effective in 1908. This convention
was not ratified by the United States until 1912, consequently the
procedure of assigning call letters was not followed in this
country until after that time.
Under the international system, the first letter or the
first two letters of the call signals Indicates the nationality of
the station. Ratification of the Berlin convention gave the United
States use of three letters N, K and W. Hence the present
domestic assignment of combinations beginning with those letters.
These are allocated by the Federal Communications Commission as
follows :
Call letters beginning with N are reserved for the ex¬
clusive use of the United States Navy and the United States Coast
Guard.
Call letters beginning with K are assigned to stations
located west of the Mississippi River and in the territories of
the United States.
Call letters beginning with W are assigned to stations
east of the Mississippi River.
Call letters beginning with ^ followed by various com¬
binations of three letters are reserved for aircraft radio sta¬
tions.
Any existing call letter assignment not in accordance
with this policy is due to the fact that the station was licensed
before the allocation plan was adopted.
7
1
12/15/39
Prior to radio regulation, wireless stations used what¬
ever call letters struck their fancy, the FCC report pointed out.
Thus, a commercial station at Point Judith, Rhode Island, used
?J , and one in New York City adopted Enactment of the pioneer
Radio Act in 1910 reassigned calls and did away with duplication.
During the infancy of radio practically all land sta¬
tions were on the coast and all communication was between ship-to-
shore stations. As inland stations developed, the Mississippi
River was made the dividing line of K and W calls. KDKA, at East
Pittsburgh, Pa. , is one of the early broadcast stations which
were assigned the K letter before the present system was put into
e ff ect .
Most of the early call letter assignments were for three
letters. About the time the United States entered the World War
this combination had become exhausted, making it necessary to add
another letter. The International Radio Conference in 1927 allocat¬
ed the remaining combination beginning with i® and to the
United States. Four-letter calls under this convention are assign¬
ed to ships and fixed stations in domestic point-to-point service
and five-letter calls are given to radio equipped aircraft.
All classes of experimental stations are assigned calls
with the initial letter K for outside stations and W for those
within the continental limits of the United States, followed by a
number designating the radio district, followed by the letter X to
denote experimental, followed by a group of not more than two
letters.
When broadcasting first gained pooularity, the idea of
assigning call letters that would have special significance reach¬
ed its climax in picking KOP for a Detroit Police Department sta¬
tion. This brought a deluge of requests for call letters embody¬
ing the initials of places, names, or slogans. Thus there still
is WRC , meaning Washington station of the Radio Corooration. WG-N
was assigned the "World's Greatest Newspaper” ( Chicago Tribune) ;
WCCO, to Washburn Crosby Company, and WACO to Waco, Texas. WMll ,
Fairmont, West Virginia, bears the initials of Senator Matthew M.
i'Jeely of the.t State and WJJD was initialed for James J. Davis,
head of the Loyal Order of Moose and now Senator from Pennsylvania.
Miami Beach, Florida, couldn't get all the letters in its name but
was appeased with WIOD meaning "Wonderful Isle of Dreams".
Some call letters used toda.y have been Inherited from
stations which made headlines through tragedy. KGB, now assigned
to a station at San Diego, was formerly used by the steamship
D. H. LUCKENBACH sunk by a submarine off the coast of France in
1917. KOB . at Albuquerque, New Mexico, was assigned to the steam¬
ship PRINCESS until she broke in two on "gockaimy Shoals, New York.
Radio played an important role in the rescue of the 106 persons on
board.
- 8 -
12/15/39
Using four letters, there are nearly 50,000 possible
call-letter combinations. This is not sufficient to take care of
amateur radio stations, which greatly exceed all others in number,
so a special system of call assignments had to be worked out for
the seif- sty led "hams".
Result: about 100,000 letter permutations have been
used in amateur calls. Hundreds are assigned weekly in new, re¬
newed, or modified licenses. The plan adopted for amateurs is
governed partly by treaty, partly by statute, and partly by regu¬
lation.
Treaty limits an amateur call to not more than two let¬
ters plus one digit plus not more than three letters, and assigns
initial letters to indicate nationality. Statute authorizes the
Federal Communications Com.raission to designa.te and publish calls.
Regulations give preference to assignment in regular order rather
than on a request basis. The digit in amateur calls indicates
location in one of the nine amateur call areas now in operation.
xxxxxxxxxx -
RETIRElffiMT OF BROWN RUMORED BUT UNCONFIRMED
The imminent retirement of Thad H. Brown from the Federal
Communications Commission was rumored this week but brought neither
confirmation nor denial from the Commissioner. The story is that
Mr. Browm would practice law in Washington and Ohio.
One of the reports went so far as to suggest that Carl I.
Wheat, special counsel of the FC^ in the telephone inve stiga.tion,
has been chosen as Mr. Brown’s successor.
XXXXXXXX
LABOR RELATIONS UNIT OF FCC TO BE CONSIDERED
The Federal Communications Commission will study in the
near future a suggestion that a labor relations unit be set up
within the FCC to keep abreast of labor conditions in the com¬
munications industry. Chairman James L. Fly has indicated.
The Chairmian said some thought has been given to the
matter, but it has not been taken up formally by the Commission.
Such a unit, it is understood, would be concerned principally
with labor oroblems in the telephone and telegraph fields, but
might concern itself with broadca.stiiig labor troubles as well.
XXXXXXXXX
9
1
’■S’;'
.1
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i.i ■ •
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12/15/39
TRA.de notes :
The Federal Gorainunications Commission this week granted
authority to the Atlanta Journal Company to sell Station WSB,
Atlanta, to James M. Cox, Ohio and Florida, publisher, and one¬
time presidential candidate. The sale price was $1,826,125, and
in addition Mr. Cox agreed to purchase outstanding preferred stock
for $117,560.
Austin E. Joscelyn, who has been Eastern Sales Manager
of the Radio Sales Division of the Columbia Broadcasting System
for two years, has been appointed manager of Station WBT, Char¬
lotte, N. C. , owned and operated by Columbia. Mr. Joscelyn suc¬
ceeds Lincoln Dellar, who has resigned to become Manager of
Station KSFO Columbia’ s affiliate in San Francisco. Howard
Meighan, a member of the Ba.dio Sales sales staff, for five years,
becomes Eastern Sales Manager in Mr, Joscelyn’ s place. The appoint¬
ments were announced by Mefford R. Runyon, Vice-President of CBS.
Clarence W. Farrier, television coordinator of the
National Broadcasting Co. , this week addressed 50 members of the
American Society of Agricultural Engineers, Washington Section,
on "Recent Developments in Television".
A contract- signing ceremony at Griffith Stadium this
week revealed that Arch McDonald will return to Washington to
resume his broadcasting role for the Nats’ 1940 games both at home
and on the road. This ended long negotiations between McDonald,
President Clark Griffith, of the Washington Club, and A. D.
Willard, Jr. , General Manager of Station WJSV, which owns the radio
privileges of the Nats' games.
McDonald, highest-paid baseball announcer in the United
States last season when he initiated the broadcasting of the
Yankees’ and Giants' home games in New York, was elated at the
outcome of the negotiations.
The Portorican American Broadcasting Co., of Ponce,
Puerto Pjlco, was granted a construction permit this week by the
Federal Communications Commission to operate on 1340 kc. , with
1 KW power, unlimited time.
Station KOH, Reno, Nevada, will become affiliated with
the National Broadcasting Com.Dany effective Jan. 1, as a supple¬
mentary outlet available to network advertisers using either the
Pacific Coast Blue or Red Network, according to William S. Hedges,
NBC Vice-President in charge of Sta.tions Department. KOH is owned
by The Bee, Inc. , of the McClatchy Newspapers, and operates on
10
i.
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j
t
. ’ i-'
12/15/39
a frequency of 1380 kc. , with a power of 500 watts. Addition of
KOH will bring the number of NBC affiliates as of Jan. 1, to 181
stations.
The net income of R.C.A. Communications, Inc., for the
ten months of 1939, ending October 31, was ^959,395 as compared
with ^292,902 for the corresponding period in 1938, it was dis¬
closed this week. The comparative statement follows:
October gross
Net income
Ten months* gross
Net income
1939
^742,488
234, 404
5,276,002
959,395
1938
^457, 404
55,779
4,342,938
292,902
From Leonard Lyons’ ”The New Yorker" column:
"Saturday Night, in Washington, Jim Farley saw '^rank
McHale, campaign manager for Paul V. McNutt, conferring with Louis
Ruppel, the former editor of the Chicago Times , who now is
Publicity Director for the Columbia Broadcasting System . . .
"Just one bit of practical advice", Farley told McHale. "Don't
hang out with Ruppel" . . . "Why not?" asked McNutt's manager . . .
"Because", explained Farley, "he can't get you any delegates."
xxxxxxxxxx
FREQUENCY MODULATION REPORT BEING STUDIED
Use of frequency modulation in radio broadcasts in place
of the amplitude modulation now used in standard broadcast sta¬
tions is being studied by the Federal Communications Commission.
In view of the fact that its adoption will completely change the
present radio broadcast transmitting systems, it is expected that
the Commission will consider the matter at some length before acting.
Adoption of this plan for use by broadcast stations, it
was said, requires a complete change of transmitters and would
make all standard- wave receiving sets obsolete. This would mean a
heavy expense on the listening public. It was indicated at the
Commission's offices that if the plan is approved for licensing
purposes that the changes would have to be gradual.
The matter was laid before the Commission in a report by
its Chief Engineer, Lieut. E. K. Jett, which went into detailed
description of the two systems. Technical radiomen familiar with
the proposed system, which uses ultra-high frequencies in the radio
spectrum, say that it may eliminate static. Receivers in the center
of electrical storms do not register static, it was said. The
transmitting aooaratus, it was said, is cheaoer to construct, as
well as cheaper to operate, and occupies considerably less space
than the present apparatus used in broadcasting.
xxxxxxxx
- 11 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Investigation Unit Possible In FCC Budget . 2
Progress Noted In Radio Weather Forecasting . 3
General Electric Applies For Television Permit.,
NAB Code Subject Of Newspaper Forum Debate .
Five New Stations Raises Total To 812 .
Revocation Hearing Opened By FCC .
European Program Exchange Continues Despite War
FCC Kidded At Radio Lawyers’ Christmas Party.
Formula For Children’ s Programs Approved .
A. T. & T. Employees Protest Wire Merger Plan
British Get Radio Scripts From Western Front,
Mother Hears Son Broadcast Graf Spee Sinking . 9
Trade Notes . * . 10
RCA, G. E. And Westinghouse Sign Agreement . 11
WOR Special Features Increase 23^ In Year 1939 . 11
No. 1194
lO lO J> coco
December 19, 1939
INVESTIOATION UNIT POSSIBLE IN FCC BUDGET
Creation of an investigation division within the Federal
Communications Commission, which would examine the qualifications
of applicants for new radio stations, was seen this week if Con¬
gress approves a Budget Bureau recommenda.tion of $2,100,000 for
the FCC in the fiscal year 1940-41.
FCC officials appeared before the House Appropriations
Sub-Committee last week in executive session and explained the
need for the investigation unit.
The Commission asked the Bureau of Budget for $3,115,000
for the new fiscal year but was allowed only $2,100,000, which is
$300,000 more than the current appropriation. Of the $300,000,
additional $150,000 will be for personnel and the other $150,000
for modernizing its monitoring system.
Additional funds may be asked of Congress for the FCC
under the Special National Defense Appropriation which President
Roosevelt will submit to Congress shortly after it convenes, it
is understood.
Included in this budget may be estimates for mobile
monitoring units to be used in checking short-wave operations.
It has been suggested that these mobile monitors would be a safe¬
guard against unlawful operations of short-wave stations, either
licensed or unlicensed.
The Investigation Division, if set up, would include a
dozen or fifteen experts, and would cost about $50,000 a year, it
is estimated.
As has been indicated, the Investigation Division would
be used primarily to inquire into the qualifications of new station
applicants as well as to pursue other Inquiries specifically assign--
ed by the Commission. Need for preliminary study of prospective
station licensees has been repeatedly emphasized not only to assure
the Commission of first-hand information regarding prerequisites
but also to prevent hearings on such applications when it might be
learned beforehand that the applicant is autom.atically disqualified.
Such matters as citizenship, lack of financial responsibility and
character of background, are included.
Chairman James L. Fly has already taken cognizance of the
plight of broadcasters forced to defend themselves against irre¬
sponsible applicants, declaring he hoped to devise means of correct¬
ing this situation.
XXXXXXXXX
- 2 -
12/19/39
PROGRESS NOTED IN RADIO WEATHER FORECASTING
Recently, a significant advance has taken place in
weather forecasting, based on the routine collection of upper-air
data to heights of 15-|- miles by means of radio soundings, accord¬
ing to the Bureau of Standards. This method, developed at the
Bureau, has supplanted the use of airplanes carrying calibrated
recording instruments for securing upper-air data.
’’The radio- sonde system”, a report in the Technical News
Bulletin , explained, "employs an instrument carried aloft on a
small unmanned balloon, and ground- station receiving and recording
equipment. The balloon instrument, or radio sonde, comprises
elements for measuring barometric pressure, air temperature, and
humidity; a radio transmitter and power supply; and means for
impressing on the radio transmitter modulating frequencies which
have predetermined relationships to the values of the factors
measured. At the ground station, the frequencies of the received
signals are measured and recorded automatically, thereby providing
a plot of temperature and humidity against pressure.
"A year’s experimental use of the system during 1938-39
at 12 stations by the Navy Department, Weather Bureau, and Coast
Guard provided data which exceeded both in regularity and accuracy
the observations previously obtained by the airplane soundings.
During the present fiscal year, the service is being expanded to
include 30 land and 5 shipboard stations. One of the features of
the experience with the radio-sonde system has been the excellent
operation obtained by the shipboard stations.
"An improved form of the radio sonde has been introduc¬
ed at three of the stations and is to be used soon at six more
stations. The essential improvement consists of the incorporation
of a new device for measuring relative humidity, which utilizes
the phenomenon of variation in conductivity of a hygroscopic salt
when exposed to different relative humidities. In its operation
as a resistor - the value of which varies with relative humidity -
it parallels the temperature element used in the radio sonde, which
functions as a resistor varying in accordance with the ambient
temperature. The two measuring resistors and two fixed reference
resistors are switched into the modulating oscillator of the
radio sonde by a switch responding to changes in the ambient
pressure. The modulating frequency is thereby controlled to pro¬
vide measurements of pressure, temperature, and humidity.
XXXXXXXXXX
3
12/19/39
GENERAL ELECTRIC APPLIES FOR TELEVISION PERMIT
General Electric Co. , Schenectady, last week applied
for a construction permit for a new television broadcasting sta¬
tion to be located at New Scotland, N. Y. , for operation on
156000-162000 kc. , with 10 watts power, unlimited time.
The international short-wave station, WRUL, operated by
World Wide Broadcasting Corp. , Boston, asked for authority to
increase its power from 20 to 50 KW.
xxxxxxxx
NAB CODE SUBJECT OF NEWSPAPER FORUM DEBATE
A full page of contrary opinions on the Code of the
National Association of Broadcasters was carried by the Washington
Post Sunday in its weekly "American Forum" feature.
The lead articles were given to Neville Miller, Presi¬
dent of NAB, who defended the Code, and to Elliott Roosevelt, who
criticized it. Others who wrote in its behalf are Roger Baldwin,
Director of the American Civil Liberties Union, and Norman Thomas,
Chairroan of the Socialist Party of America. Siding with young
Roosevelt were Frank E. Gannett, publisher, and Morris Ernst,
liberal lawyer and writer,
xxxxxxxxxx
FIVE NEW STATIONS RAISES TOTAL TO 812
The Federal Com.municatlons Commission issued operating
licenses to five stations during the month of November. One oper¬
ating station was deleted and four construction permits were issued
for the construction of new stations.
There are now 755 standard broadcast stations operating
and 57 under construction; bringing the total to 812.
XXXXXXXX
Willi Falke was sentenced to four years in the peniten¬
tiary last v/eek for listening to a foreign radio broadcast in
Berlin, according to the Associated Press. The court ruled that
"it is dishonorable for a German to listen to lying foreign broad¬
casts which form the main weapon against Germany".
XXXXXXXXXX
4
‘
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12/19/39
REVOCATION HEARING OPENED BY FCC
The Federal Communications Commission this week was
holding a hearing on revocation proceedings against W3AL, Salis¬
bury, Md. , based on charges of purported le.ck of financial res¬
ponsibility and transfer of license without authority. The licensee
is Frank M. Stearns. G-lenn D. Gillett, consulting engineer, also
was named a party, in view of financial interest in the station.
A hearing on the renewal of license of WBAX, Wilkes-
Barre, Pa. , was ordered for Jan. 16 under a tentative calenda.r.
The station license is held by John H. Stenger, Jr. , but litigation
developed over ownership and operation of the outlet. The hearing
was ordered on the matter of control, with Mr. G-illett also a party.
xxxxxxxx
EUROPEAN PROGRAM EXCHANGE CONTINUES DESPITE WAR
A striking example of how international broadcasting
remains undeterred by wartime difficulties was given by a concert
from Italy that British listeners heard recently. Arrangements
had been made months before for the relaying in BBC transmissions
of the Italian program, but, on the assumption that the new condi¬
tions would prevent the broadcast's taking place, a concert by
the BBC Salon Orchestra was planned as a substitute. While the
orchestra was in the studio, waiting for the flick of the red
light, there was a sudden 'phone call from the control room to say
that the Italian engineers had come through to test the lines, and
to confirm that Britain was waiting to take their program as planned
Since then, programs originating in European countries
have been - and are being - frequently heard by listeners to BBC
broadcasts. In recent weeks, concerts from, for example, Turkey,
Holland, Finland, and Switzerland, and several programs from Paris,
have been relayed. Similarly, countries in Europe continue to
relay programs originating in BBC studios.
Many of the broadcasts already heard were arranged
before the war through the International Broadcasting Union at
Geneva, that from Finland being taken by Germany as i>^ell as by
Great Britain.
XXXXXXXXX
5
12/19/39
FCC KIDDED AT RADIO LAWYERS* CHRISTMAS PARTY
There were some hearty laughs at the expense of the
members of the Federal Communications Commission, who, generally
speaking, are inclined to take themselves pretty seriously, at a
Christmas party given by Louis G. Caldwell, foraer president of
the Federal Communications Commission Bar Association, in honor of
Philip J. Hennessey, Jr. , newly elected president of that Associa¬
tion, and Mrs. Hennessey. For several years now, these radio
lawyers in their clever skits at annual dinners, have caused many
a Commissioner to feel probably as does President Roosevelt some¬
times, when the boys make it particularly warm for him at the
Gridiron.
Even as the guests entered the Caldwell home, they
realized they were in for a pretty hilarious time when they saw
a large sign over the door of the room where the men checked
their hats and coats, which read; ” Inter-Venenors” , while over
the doorway into the room where the ladies left their wraps was
a placard reading ’’Inter-Venuses”.
Downstairs most every room was labeled. One had a sign,
'•Hearing Room ~ Intervenors Not Allowed (for Long)". "Persons
Adversely Affected — This Way" was a sign pointing from the Hear¬
ing Room to the Bar Room. Other inscriptions noted were: "Please
Reflect International Culture and Good Will (This Rule Temporarily
Suspended By FCC)"; "No Controversies On Important Matters"; and
"This House is a Closed Shop Under the NAB Code".
There was a witness book which every guest had to sign
and a bound volume containing the guests' acceptances, which was
presented to Mr. and Mrs. Hennessey. In accepting, at least two
of those invited said that they were enclosing 14 copies of their
acceptance, thus complying with the FCC extra copies rule.
There were three past presidents of the organization
present - first president, Mr. Caldwell, formerly Chief Counsel
of the Commission and now attorney for Station WGN, of Chicago,
and others; Duke M. Patrick, and Frank J. Roberson.
In presenting the illuminated crown of the presidency
to Mr. Hennessey, Mr. Roberson remarked, "I hope you have better
luck with the Commission than I did".
The proceedings were interrupted by the shrieking of
police sirens, which proved to be the broadcast, presumably, of a
riot occasioned by the pleading of the Federal Comrauncations Com¬
mission Bar Association, and the election of Mr. Hennessey. This
broadcast, which was made to order by NBC^ under the direction of
Mr. Bellar of Mr. Caldvrell's law firm, proved to be a regular
Orson Welles, "Martian" thriller.
6
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12/19/39
Among those at the party, many accompanied by their
wives, were Federal Communications Commissioners Paul A. Walker
and T.A.M. Craven; Congressman Clarence F. Lea, of California,
Chairaan of the House Interstate Commerce Committee; Senator
Wallace White, of Maine, of the Senate Commerce Committee; Frank
M. Russell, Vice-President of the National Broadcasting Company;
Kenneth H. Berkeley, Manager of the NBC in Washington; Ted Shawn,
of the NBC; Paul Porter, counsel of Columbia; William J. Dempsey,
Chief Counsel of the FCC; former FCC Commissioner Judge E. 0.
Sykes; Thomas P. Littlepage, Jr., ra.dio counsellor; Jouett Shouse;
Donald Richberg; Marriner S. Eccles, of the Federal Reserve Board;
Justin Miller and Harold M. Stephens, Associate Justices of the
D. C, Court of Appeals; Justice Bolitha J. Laws of the U. S.
District Court, and Martin Codel, publisher of Broadcasting Bfega-
zine. There were also present numerous members of the G-ridiron
Club and their wives.
FORMULA FOR CHILDREN’S PROGRAMS APPROVED
An eight-point formula was prescribed for children's
radio programs this week at a luncheon meeting at the Town Hall
Club of members of the Radio Council on Children’ s Programs and
representatives of the National Association of Broadcasters and
major networks, Including the National, Columbia and Mutual systems.
The formula, which was approved by the broadcasting of¬
ficials, provides that children's programs be entertaining, be
dramatic with reasonable suspense, possess high artistic quality
and integrity, express correct English and diction, appeal to the
child' s sense of humor, be within the scope of the child’ s imagi¬
nation, stress human relations for cooperative living and inter-
cultural understanding and appreciation.
Mrs. Harold V. Milligan, Radio Chairman of the General
Federation of Women's Clubs and head of the Council, cited the
eight points as attributes Juvenile radio entertainment should
have in order to be included in the recommended lists that the
Council will distribute to affiliated organizations.
It also was reported that the Broadcasters Association
intends to include the eight-point formula in its code of self¬
regulation, the New York Times reported.
The Council, which has national headquarters at 45 Rocke¬
feller Plaza, was formed "to bring about better children’ s ra.dio
programs", Mrs. Nathaniel Singer, Radio Chairman of the United
Parents’ Association and National Vice-Chairman of the Council, is
Executive Secretary in charge of activities. Five organizations
compose the Council: the General Federation of Women’s Clubs,
the American Library Association, the United Parents’ Association,
the New England Council of Women and Junior Programs, Inc.
X X X X X X X
_ 7 -
12/19/39
A. T. & T. EMPLOYEES PROTEST WIRE I®:RGER PLAN
An organization of employees of the American Telephone
and Telegraph Co. , announced this week in New York City that it
would protest to the Federa.1 Communications Commission against
any unification of the Western Union and Postal Telegraph companies
which would affect the A. T. & T.
The memorandum of the Federation of Long Lines Telephone
Workers, to be filed with the FCC, objected to the FCC’ s reported
plan to recommend a merger of the telegraph companies which would
permit the new concern to take over the leased wire and teletype¬
writer exchange services of the A. T. & T. , "so as to bolster "the
revenues of the consolida.ted organization".
Opposition to such a plan, the organization said, was
based on the possibility of "damage to a large number of employees
in our organiza.tion which might very well result therefrom through
furloughs, layoffs, discharges or otherwise". The Federation
claims a membership of 8,500.
XXXXXXXXX
BRITISH GET RADIO SCRIPTS FROM WESTERN FRONT
Much of the war news broadcast by the British Broadcast¬
ing Corporation and heard via short-wave in this country, is
obtained directly from the front-line of the western front, accord¬
ing to the BBC.
Describing how its observers "get the story", the BBC
submits the following account:
A machine-gun post in the French front-line was the
studio; a BBC observer the artist. The control- room was a camou¬
flaged car, drawn up in a tree-shaded position 200 feet behind the
post. About eighty- five feet away was the enemy' s front line. . .
Peering through the gun embrasure, the BBC observer,
microphone in hand, described what he could see; back in the car,
an engineer ensured that the description was satisfactorily record¬
ed. The enemy may well have ?/atched him p.t work.
But all was quiet in the German lines that day, and so,
in due time, a graphic sound-picture of life on the edge of No
Man' s Land was heard by listeners to BBC programs.
The occasion was typicsl of how the BBC' s observers on
the Western Front - Richard Dimbleby, David Howard, and the record¬
ing engineer, H.F.L, Sarney - "get the story".
8
12/19/39
Already the saloon car that carries the recording equip¬
ment has travelled thousands of miles in the search after "actual¬
ity", and the results have given to listeners not only vivid
impressions of da.ily life in and behind the lines, but unique
assurances of the welfare, cheerfulness, and determined enthus¬
iasm of the men who are "out there".
Officially accredited as war correspondents, we^^ring
uniform and ranking as officers, Dimbleby, Howarth, and Sarney
are based in a hotel in a French town behind the lines. (The BBC
observer with the R. A. F. in France - C.J.J. Gardner - is stationed
elsewhere . )
An attic that is at once a recording studio, office,
sitting-room, and a bedroom for their batman is their headquarters;
on a baize- topped table is a microphone; there is a mattress on
the floor and a couple of armchairs, a sideboard, and a radiograjn
against the walls. Through the window runs the cable that con¬
nects the microphone to the recording car in the garage below.
"We use the room", said Dimbleby, in an interview, "as a
studio for recording the commentaries linking the actuality
accounts, and for modifying the records in accordance with the
censor’s requirements."
Scrips are made of all recorded material and of the link¬
ing commentaries for submission to the censors. The records are
"sub-edited" as corrections on the scripts may demand, then the
censors are invited to the studio in the attic to hear and check
the final recordings. On each passed disc an officer records a
few v/ords signifying approval.
Then the records are ready for despatch. While Dimbleby
and his colleagues sleep, the discs are flovjn to England, and less
than twenty-four hours after their original cutting, are available
for broadcasting.
XXXXXXXX
MOTHER HEARS SON BROADCAST GRAF SPEE SINKING
A Washington woman had a double thrill Sunday when she
heard the radio description of the sinking of the German pocket-
battleship, Admiral Gra.f Spee, off Montevideo. The woman is Mrs.
Jane Bowen, Director of the Alva Belmont House, headquarters of
the National Woman’s Party. The announcer who delivered a rapid-
fire eye-witness story of the sinking is her son, James, wrhose
voice she had not heard in four years.
Just as James, who is 43, was asking National Broadcast¬
ing Company headquarters in New York to communicate vath his mother
so that she would know he wa.s to broadcast what was expected to be
the Graf Spee's da.sh through the Allied cordon, the battleship
exploded a.nd he was immediately connected in with the regular hook¬
up. NBC notified Mrs. Bowen by phone.
XXXXXXXX
- 9 -
12/19/39
TRADE NOTES :
Powel Crosley, Jr. , President of the Crosley Corporation,
of Cincinnati, has been appointed to a colonelcy by Covernor
John E. Miles of New Mexico. He will serve as aide-de-camp on
the G-overnor’ s staff.
Consolida.ted Edison, advertising in the New York Times
last week, pointed out that one cent’s worth of electricity "will
bring you three hours and six minutes of radio entertainment from
your G. E. radio-phonograph."
One of the busiest spots around Washington is the site
of WJSV’s new 50 ,000-x’^att transmitting plant at Wb.ea.ton, Md. , just
north of Kensington. Workmen from a dozen trades swarm over the
SY;anky, ultra-modern building. Already the three 340-foot antenna
towers have altered the complexion of the countryside. When the
plant is completed about February 1st, a new sightseeing spot
becomes available, an old familiar landmark near Alexandria will
pass (the existing 10,000-watt transmitter on Memorial Boulevard).
Frederick L. Redefer, Executive Secretary of the Pro¬
gressive Education Association, has been added to the Board of
Consultants of "Columbia’s American School of the Air", according
to Sterling Fisher, CBS Director of Education. Other officials
of the Association on the Board are Miss Margaret Harrison, the
organization’s radio consultant, and Miss Alive V. Keliher.
A Wireless Telegraph Board has been established in South
Africa, according to the American Commercial Attache at Johannes¬
burg. Its functions will be to consider all matters relating to
radio, to coordinate Government policy in respect of radio, and
generally to assist the Postmaster-General in exercising the con¬
trol vested in him. The new Board will be presided over by the
Director-General of Signals. The telegraph regulations have now
been amended by the addition of a provision that in all matters
relating to radio within the Union, the Postmaster- General shall
be guided by the recommendations of the Wireless Telegraph Board.
No license shall be issued under the Radio Act of 1926 without the
recoramenda.tion of the Board.
XXX XXXXXXXX
10 -
1
12/19/39
RCA, G-.E. AND WESTINGHOUSE SIGN AGREEMENT
Announcenent that the Radio Corporation of America has
entered into new license agreements with the General Electric
Company and Westinghouse Electric & Manufacturing Company was
made this week by officers of the three companies. The new agree¬
ment is supplemental to license agreements which have been in
effect between the companies since 1932.
Expanding research and engineering activities of the
several companies, providing new horizons of application of radio
and electronic devices, make the new arrangement desirable, it was
stated. Under the new licenses for the United States and most
foreign countries, RCA will be enabled to put the results of its
research to broader uses in both radio and other industries employ
ing electronic devices. In general, RCA has acquired from General
Electric and Westinghouse the right to sell, and to grant licenses
to others for the sale of, most types of radio tubes for all uses,
and has also acquired the right to sell associated apparatus for
many uses.
Under the agreement, General Electric and Westinghouse
acquire from RCA the right to sell equipment, including tubes,
for many radio applications, such as broadcasting transmitters,
television and facsimile apparatus, and airport equipment.
The new agreement widens the scope of activities of the
three companies by giving to each a broader market for its pro¬
ducts and services, a joint statement said.
XXXXXXXX
WOR SPECIAL FEATURES INCREASE 23^ IN YEAR 1939
The stroke of midnight marking the New Year 1940 will
bring to a close a year marked by an Increase of 23^ in Special
Features, spot news, talks and sports broadcasts heard over WOR,
New York City, during the past twelve months. It also will mark
the fifth anniversary of the Special Features Division, begun in
1935 by G. W. Johnstone, Director of Public Relations and Special
Features.
More than 1005 spot news, talk and special feature pro¬
grams will have been heard over WOR by January 1 in contrast to
?20 heard over WOR in 1938. Five hundred and twenty-tm^o were broa
cast in 1937. Of the 1939 total of 1005, more than 637 were
originated by the WOR Special Features Division. The WOR origi¬
nations do not include a large number of European originations by
Mutual which were handled in one form or another by the WOR staff.
For example, the scores of European broadcasts technically booked
and accounted for by the Mutual Broadcasting System during the
war crisis and ensuing months were in a large part supervised, dir
acted and routed by WOR Special Featuresmen, assisted by members
of the Program Department.
XXXXXXXX
- 11
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2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF DECEMBER 22, 1939
Studebaker Holds Cooperation Vital In Report To FCC . 2
Broadening Of Ra.dio Census Requested .
Experimental Authorization Effective Date Changed
FCC To Study High Frequency Aural Broadcasting. . .
BMA Schedules Convention In Chicago . . .
Dempsey Asks Court To Clarify FCC Power .
Trade Notes . 10
Television Stations Share Channel After Clash . 12
Television Set Sales 750 On West Coast . 12
No. 1195
to o -vj <75 cr>
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4
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STUDEBAKER HOLDS COOPERA.TION VITAL IN REPORT TO FCC
Broadcasters and educators must work together for the
preservation of democracy if the American system of radio is to
survive, Dr. John W. Studebaker, U. S. Commissioner of Education
and Chairman of the Federal Re.dio Education Committee, told the
FCC in a lengthy report on the Committee's activities late this
week.
"There is, and there can be, no basic conflict between
the educators and broadcasters within the proper concept of the
Americen way", he said.
"Broadcasters enjoy the privileges of broadcasting only
because the American people are abidingly devoted to the perpetua¬
tion of a system of life under which the individual may enjoy the
fullest freedom as a concomitant of his actions in the commonweal.
The American system of education is the strongest bulwark for the
continuation and perpetuation of that system in this country today
Therefore it is a mutual necessity that broadcasters and educators
shall work together for the solution of the problems of education
through radio in the truly democratic manner represented by the
Federal Radio Education Committee."
In a preface to the report, Dr. Studebaker said;
"I hope that I shall not be considered too naive if I
introduce this report with the simple statement of a fact which
is well known to everyone in radio and, now, to a generous portion
of the American public:
"Among the several possible approaches to broadcasting
the American approach and the British or European approach offer
sharp contrast. Each reflects the basic philosonhy of the nation
using it.
"A statement which is equally true, but not so well known,
is that thousands of earnest men and women are at work throughout
America today evolving, within the structure of the American plan
of broadcasting, the American system of education through radio.
"It is at once the responsibility and the privilege of
the Federal Radio Education Gomm.ittee to share in guiding this
development.
"The development itself may be observed to be taking
place in two fundamental divisions;
2
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"1. A significant ferment is taking place all over the
country, launched and kept alive by enthusiastic educa¬
tors and idealistic broadcasters who see, in radio,
infinite potentialities for education and public ser¬
vice. This ferment is taking the form principally of
experimentation — in the classroom — the studio —
the university radio workshop — the library, and the
home. Here pioneers are approaching, and in many cases
solving, practical problems of production.
”2. As a concomitant of this extended experimental activ¬
ity a second and equally important development may be
observed. This development adheres more rigidly to
the scientific formula of the collection of data, the
classification of data, and the interpretation of
data. Its object is to provide the necessary formal
structure which will be essential to the eventual
creation of a basic and comprehensive plan for the
accomplishment of sound education through radio.
"The federal Padio Education Committee, representing the
joint cooperative effort of broadcasters and educators, not only
is interested in every phase of both of these significant develoo-
ments; it is actively participating in both of them. "
After citing the work of the Committee, with especial
emphasis on the educational radio script exchange and the newer
department of information, the Commissioner of Education said in
his conclusions:
"The discovery of radio and its mushroom growth have
seemed to present no problem which could not be accommodated
within the basic American philosophy. Admittedly the air belonged
to the people. Admittedly, also, it was not the American way for
government to establish a monopoly for the development and use of
this newly discovered natural resource. It belonged to the people
it should be developed and regulated by the people, in the public
interest.
"Broadcasters represent that small group of body politic
which has sought and found self-expression through the development
and administration of radio. According to their lights they have
administered this public trust in the public interest, and there
is no principle in the American philosophy which forbids that they
should receive rewards of the kind which accrue to other citizens
who find opportunities for self-expression through other commer¬
cial or industrial channels. This is basic and undeniable if we
are to adhere to the American system of living.
"The maintenance of this system — a system of freedom
of expression which demands free communication, is more closely
identified with the responsibility of maintaining the American
system of freedom in education than with any other force in our
scheme of living. Public educa.tion is supported and controlled bv
the public; yet education must make possible freedom to learn if
3
12/22/39
democracy is to be nurtured and developed. Radio, by its nature,
must be regulated by the Government, but radio must provide free¬
dom of communication if it, as a powerful instrument of influence,
is to strengthen and not stifle the processes of democracy.
"In the kindergarten, the elementary school, the second¬
ary school, the college, the university — from the rostrum, the
forum platform, and at the table around which a discussion group
may gather, educators are today, and for years have been uphold¬
ing and inculcating an appreciation of the American way of life
and especially of the basic necessity of freedom to learn. In do¬
ing so they have increased the understanding of the need for a
system of broadcasting free from the compulsions of censorship.
’’We ha.ve indicated that broadcasters administer a public
trust — free to derive profit from that administration if they
choose, but enjoined to operate in the public interest; to assume
responsibility which is always a concomitant of privilege. All
through the American system these two factors will be found ranged
side by side — privilege, and responsibility — noblesse oblige .
’’Now it so happens that radio, as an industry, differs
from other enterprises in our economic structure. Viewed com¬
mercially, radio is an advertising medium. Its purpose is to sell
merchandise. If that were all there is to it the problem would be
very simple. But that is emphatically not all there is to it.’
The impact of the spoken word upon the radio listener — to take
a very simple example — achieves education of some kind in some
degree. It helps to formulate attitudes and opinions — conditions
action.
"In radio, under the recently adopted Code of the National
Association of Broadcasters, only 10 percent of the available time
in a commercial program of 60 minutes may be devoted to telling the
story of the product being sold. There is no suggestion of arbi--
trary control of the industry here, but merely reasonable assurance
that no actual abuse of the public confidence will result during
those portions of the broadcast hours devoted to commercial pro¬
grams. Broadcasters have assumed the responsibility themselves of
providing this assurance.
"From the standpoint of public service the department of
sponsored programs, under the American system, may be considered
the ^commercial side'. As we have indicated, broadcasters them¬
selves have undertaken to Impose certain safeguards through adher¬
ence to a code of ethics to prevent abuse of the public confidence.
We turn, then, to the noncommercial side of broadcasting — the
public- service side.
"In making this transition a word may be said about what
educational or public-service broad.casting is or should be. At
the outset it should be understood that considerably more clari¬
fication will be needed before this department of radio can be
accurately defined. Arbitrary definitions can, of course, be
imposed. We mi^t assume, for instance, that any program aimed at
4 -
12/22/39
achieving education, as that ?7ord is popularly understood, is an
educational program, and that other programs fall beyond the pale.
Such a definition, however, obviously would be inadequate. A
program sponsored by a toothpaste manufacturer, for instance,
might promote oral hygiene and thus exert an influence toward com¬
mendable objectives of public health, yet its basic purpose would
be the sale of toothpaste, and hence educators generally would pro¬
hibit the use of the program in the classroom because of the
advertising features involved. Neither can we throw the gates
wide open and assume that any nonsponsored program aired by a sta¬
tion is, ipso facto, a public service or educational prograjn. We
all know that stations air a tremendous amount of trivial material
during these nonsponsored hours. To consider such material in any
terms save those of public entertainment would lead to false con¬
clusions. We are faced then with the necessity for pointint out
that perhaps one of the most important resnonsibilitie s which the
Federal Ra.dio Education Committee may ultimately be able to dis¬
charge will be that of formulating a standard for the classifica¬
tion of programs. But we are fully cognizant of the limitations
of present definitions. Recognizing these limitations we come to
the purpose of and the need for the Federal Radio Education Com¬
mittee. How far should the broadcaster go in the matter of educa¬
tion? What are the limits of his responsibility? What activities
of an educational nature should he undertake? What should he try
to teach — and how?
"As this report is written we cannot offer all of the
answers to these and other equally basic questions. But we are
steadily moving toward solutions, and the Federal Radio Education
Committee, representing the cooperative effort and will of broad¬
casters and educators toward true public service, is a. very proper
vehicle for seeking answers to these questions which must eventually
be satisfactorily answered .
"Further — it is mutually essential that this agency of
cooperation shall be preserved, to guard and to guide the evolution
of the American system of education through ra.dio. No one should
make the mistake of considering this matter of small importance or
of a temporary nature. As I have said, the educational implication
of radio is intrinsic. It is not something which either broad¬
casters or educators may accept or reject as they please. It
exists, and it will continue to exist so long as a single program
is aired over a single station for a single listener. This force,
then — reac3y to our hand and filled with promise of public ser¬
vice and constructive accomplishment — this force must be con¬
served in the public interest. Not only must it be conserved, but
that conservation must be accomplished in the American way. "
xxxxxxxx
5
12/22/39
BROADENING OF RADIO CENSUS REQUESTED
The Radio Manufacturers’ Association and the National
Association of Broadcasters have joined several government offices
in a request to the Census Bureau to develop statistics in the
proposed federal housing census next year on multiple radios in
American homes, including short-wave receivers. Formal requests
to Director W. L. Austin of the Census Bureau for inclusion of
these features in the special housing census have been made.
Instead of the present tentative question in the housing
census questionnaire, ”Is there a radio in this dwelling?", the
RMA and others interested have requested the Census Bureau to sub¬
stitute the question; "How many usable radio sets are in this
dwelling unit?" The Census Bureau also was asked, in view of the
great social significance attending the reception of foreign broad¬
casts, to add another question as follows: "Is a radio set in
this dvjelling unit usable for listening directly to international
short wave broadcasts?" This would apply to direct radio recep¬
tion from Asia, Africa, Europe, or South America.
Broadening of the housing census on radio was agreed
upon at a conference in the office of John H. Payne, Chief of the
Electrical and Radio Division of the Bureau of Foreign and Domestic
Commerce, on December 13. The conference agreed unanimously on
the proposed extension of the housing census and included repre¬
sentatives of the National Association of Broadcasters, Department
of State, Bureau of Foreign and Domestic Commerce, Federal Communi¬
cations Commission, U. S. Office of Education, and the Federal
Radio E(3_ucation Committee. The RI\iA was represented by Bond Geddes,
Executive Vice President; Robert R. Kane, of Camden, N.J., and
Meade Brunet, of Harrison, N. J.
xxxxxxxx
EXPERIMENTAL AUTHORIZATION EFFECTIVE DATE CHANGED
The effective date of application of paragraph 3(b) of
Section 3.32 of the Rules Governing Standard Broadcast Stations,
insofar as it pertains to existing experimental stations, has been
postponed from January 1, 1940, to May 1, 1940, by the Federal
Communications Commission.
This particular provision reads:
"In case a special experimental authorization permits
additional hours of operation, no licensee shall transmit any com¬
mercial or sponsored program or make any commercial announcements
during such time of operation. In case of other additional facil¬
ities, no additional charge shall be made by reason of transmis¬
sion with such facilities. "
X X X X X X
- 6 -
I'
%
X
12/22/39
FCC TO STUDY HIGH FREQUENCY AURAL BROADCASTING
Because of the growing interest in frequency modulation
and filing of applications to begin regular broadcast service as
distinguished from experimental service on frequencies above
25,000 kilocycles, the Federal Communications Commission announc¬
ed this week that it will inquire fully into the possibilities of
this system of modulation as well as amplitude modulation for
aural broadcasting. An informal engineering hearing will be held
before the full Commission beginning at 10 A.M. February 28,1940.
Pending the outcome of this hearing, it was decided to
grant the following classes of applications:
(a) Applications for permission to carry out programs of
fundamental research not authorized in the past and which show
satisfactory promise of being able to contribute substantially
toward the development of aural broadcasting service, and
(b) Applications filed by existing licensees to experiment
with aural broadcasting on frequencies above 25,000 kilocycles,
provided the request to operate additional stations involves a
program of experimentation directly related to the existing sta¬
tion.
About 20 applications are pending action by the Commis¬
sion for new stations desiring to use frequency modulation. There
are now 34 amplitude modulated stations and 20 frequency modulated
stations authorized by the Commission.
Before a permanent policy can be established with res¬
pect to either or both systems of modulation ,on frequencies above
25,000 kilocycles for regular broadcasting service, studies and
investigations must be made regarding the relative values of the
two systems, the patent situation, the frequency needs of all
radio services, and whether amplitude or frequency modulation, or
both systems, should be recognized for other services as well as
broadcasting. It is also necessary to consider the possible future
effect that broadcasting on ultra high frequencies may ultimately
have upon standa.rd broadcasting in the band 550 to 1600 kilocycles.
The frequency bands above approximately 25,000 kilo¬
cycles are sometimes referred to as “very high frequencies”,
"ultra high frequencies", or "ultra short waves". These frequen¬
cies possess relatively short distance characteristics as compared
with the lower frequency bands. The signals are subject to rather
wide diurnal and seasonal variations in signal strength at dis¬
tances beyond the horizon; therefore, as a practical matter, these
frequencies may be said to be useful for broadcast service up to
about 100 miles only.
Maj. E. H. Armstrong, Professor of Electrical Engineer
ing at Columbia University, apoeared as a witness in behalf of
frequency modulation at the Federal Communications Commission
- 7 -
12/22/59
engineering hearing in June, 1936. On the basis of testimony
of experts who testified at this hearing, and after studies had
been made jointly by the Commission's Engineering Department and
the Interdepartment Radio Advisory Committee, the Commission and
the President adopted permanent allocations above 25,000 kilo¬
cycles for the various government and non- government radio services.
Amplitude modulation has long been used as the standa.rd
system for transmitting speech and music by radio. It is the
only system of modulation which is used by the existing services
operating on conventional frequencies, i.e., below 25,000 kilo¬
cycles.
The claimed chief advantages of the two methods are
set forth briefly as follows:
Amplitude Modulation
1. Amplitude modulation utilizes a much narrower band
of frequencies, i.e., about one-fifth of the frequency band
required for wide band frequency modulated signals of equal
fidelity.
2. Amplitude modulation may be used on all frequencies
throughout the radio spectrum, whereas frequency modulation has
proven useful only in the very high frequency bands.
5. Amplitude modulation is the only system which has
been used successfully for television on the frequencies allocat¬
ed by the Commission for television service.
Frequenc.y Modulation
1. Frequency modulation possesses characteristics
whereby it is possible to reduce the effects of all kinds of dis¬
turbances including atmospheric static, electrical noises, and
background signal interference.
2. A frequency modulated broadcast station employing
low power will provide greater service than a similar station using
amplitude modulation. However, if the power of the two stations
is substantially increased the percentage increase in service area
of the frequency modulated signal will be materially reduced.
3. A frequency modulated receiver will accept only the
strongest signal or noise as the case may be when the ratio of the
desired to undesired signal strength is approximately 2 to 1. In
the case of amplitude modulation, the ratio must be at least 20 to
1 for good broadcast service. Consequently, it is possible to
operate frequency modulated stations at relatively close geograph¬
ical locations without interference.
4. Frequency modulation has definite advantages over
amplitude modulation in operating the low power services such as
forestry, police, aircraft, etc. In such cases, each system is
under the control of one licensee who can plan for the purchase,
installation and operation of the entire transmitting and receiv¬
ing system.
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RMA SCHEDULES CONVENTION IN CHICAGO
The Sixteenth Annual Convention of the Radio Manufactur¬
ers' Association and National Radio Parts Show will be held at
the Stevens Hotel in Chicago, June 11-14, inclusive, 1940, Bond
Geddes, Executive- Vice-President announced this week. The RMA
Convention, membership meetings, and annual industry banquet will
be held Tuesday and Wednesday, June 11 and 12. The National Radio
Parts Show, again under the joint sponsorship of RMA and the Sales
Managers Clubs, will be held in the Exhibition Hall of the Stevens
Hotel from noon, Tuesday, June 11, until 10 P.M. Friday, June 14.
Paul V. Galvin, of Chicago, is Chairman of the RMA Convention Com¬
mittee, and Ken Hathaway continues as the Manager of the Parts Show.
The annual all-radio industry banquet will be held Wednesday even¬
ing, June 12 and the industry golf tournament is scheduled for
Thursday, June 13.
xxxxxxxx
DEI^PSEY ASKS COURT TO CLARIFY FCC POWER
Whether the refusal of the Federal Communications Commis¬
sion to grant a license to a radio station is reviewable by the
courts remains an unsettled question, so counsel for the Commission
have asked for a reargument of four cases decided against it in the
most recent decision.
William J. Dempsey, General Counsel, has petitioned the
United States Court of Appeals for the District of Columbia to take
up these cases before its entire bench. The court, Mr. Dempsey
points out, twice ha.s decided the issue - once in favor of the Com¬
mission and once against it. The cases involved the Columbia
Broadcasting System of California, Inc., the Associated Broadcast¬
ers, the Voice of Alabama, Inc., and the Alabama Polytechnic Insti¬
tute .
In urging the appellate tribunal to listen to a reargu¬
ment of the four cases, Mr. Dempsey explains that Chief Justic
Groner dissented in the earlier cases, which were decided in favor
of the Commission, and in a later case he and one other Justice, in
a 2-to-l decision, held against the Commission.
In the latest decision, it is pointed out. Chief Justice
Groner, adhering to the view in his previous dissenting opinion,
and Associate Justice Miller held that an appeal could be taken to
the courts when the Commission denied an application for assignment
of a radio station license.
Five members of the court have held that there is no
appeal in such a case. The five were former Chief Justice Martin
and Associate Justices Robb, Van Orsdel, Gitz and Stephens. Only
two Justices have taken the position that an appeal could be taken,
the Commissions ' s lavyer cited, while three members of the present
court - Associate Justices Edgerton, Vinson and Rutledge - never
have passed on the question. Mr Dempsey said that in view of these
differences in Judicial opinion, involving present and former mem¬
bers of the Court of Appeals, the right of the Commission to grant
or refuse transfer of control over stations was shrouded in mystery.
" XXXXXXXX
Q ..
12/22/39
TRA.de notes : ; :
» • •
M. H. Aylesworth, former President of the National
Broadcasting Company, has resigned as publisher of the New York
World- Telegram. He is returning to his public relations practice
as well as the practice of law. It is reported that he proposes
to gather a select number of accounts for private consultation ?/ork
on public relations matters, and rumors are that RCA-NBC will be
among the first to retain him in that capacity.
Among the honorary pall-bearers at the funeral of
Representative Sirovich { D. ) , of New York, in New York City this
week were David Sarnoff, Donald Flamm, and G-ene Buck.
The European war has developed such increased public in¬
terest in foreign short-wave broadcasting that many additional
American newspapers have subscribed to the weekly service of the
Radio Manufacturers’ Association detailing foreign short-wave
features. The RIM service to newspapers has increased 71 percent
since hostilities broke out in Europe and there are now 268 Ameri¬
can newsoapers receiving the RMA ?;eekly programs of short wave
broadcasts. The RMA short-wave programs are furnished without
charge to the press and are now used by most leading daily news¬
papers.
The Federal Communications Commission this week granted
an amended application of Station WEEI^ the Columbia Broadcasting
System, Inc., Boston, Mass., for a construction permit to employ
present daytime directional antenna pattern for both day and night¬
time operation and increase night power from 1 KW to 5 KW^ on 590
kc., unlimited time.
Spanish importation of radios is virtually prohibited by
its exchange control regulations, according to advices from the
Anerican Commercial Attache of the Department of Commerce at San
Sebastian. No import permits covering radio equipment have been
granted by the Spanish authorities since the cessation of hostil¬
ities, a.lthough a few barter deals are reported of nominal size
from Germany and The Netherlands.
The Federal Communications Commission this week tenta¬
tively granted the application of the Times Dispatch Radio Cor¬
poration (WRTD) , Richmond, Va. , for a construction permit to
change the operating assignment of the station from 1500 kilo¬
cycles, 100 watts power, unlimited time, to 590 kilocycles, with
power of 1 kilowatt, unlimited time, using a directional antenna
at night.
10
r
12/22/59
The Federal Communications Commission announced this
week that from this date (December 20), through December 30, 1939,
it will entertain on 48 hours' notice and may grant, through the
usual officials, applications for individually designated pro¬
grams of a religious, ceremonial, or other nature having to do with
the celebra.tion of Christmas and the New Year.
In Marienau, near Danzig, five members of one family
have been imprisoned for listening to and spreading foreign radio
broadcasts, according to the New York Times. Johannes Jakobsen
was sentenced to two and a half years' imprisonment and his wife
Marta, who spread reports in the village, received a similar sen¬
tence. Each of Jakobsen' s three young brothers were sentenced to a
year and a half. The family was deprived of all citizenship rights
for five years.
In Berlin a large number of persons have been sentenced
for the same crime, which carries a maximum penalty of death. The
press continues to warn all who insist on listening to foreign
broadcasts of the dangers not only to the State but also to them¬
selves.
The Federal Trade Commission has closed its case against
Parke r-Mc Coro ry Manufacturing Co. , 2609 Walnut St. , Kansas City,
Mo. , manufacturer and distributor of radio sets and parts and
mechanical devices, it a.ppearing that the respondent company has
agreed to discontinue the misleading repre senta.tions alleged and
to abide by the rules of fair trade practice for the radio receiv¬
ing set manufacturing industry, promulgated by the Commission
July 22, 1939. The case v/as closed without prejudice to the Com¬
mission' s right to reopen it and resume prosecution, should future
facts so warrant.
The Ffederal Communications Commission this week granted
the applications of The Bee, Inc., (KOH) , Reno, Nevada., and
McClatchy Broadcasting Co. (KERN), Bakersfield, Calif., for con¬
struction permits, KOH to move its transmitter locally, install
new equipment and change operating assignment from 1380 kilocycles
with power of 500 watts, unlimited time, to 630 kilocycles with
power of 1 KW, unlimited time, using directional antenna at night;
and KERN to change frequency from 1370 to 1380 kilocycles, increase
power from 100 watts to 1 KW, change transmitter site and install
new equipment.
XXXXXXXXXXX
NOTE: DUE TO THE GOVERiNIiENT OFFICES BEING CLOSED OVER
THE ENTIRE Vi^EK-END, THERE WILL BE NO ISSUE OF THIS SERVICE ON
TUESDAY, DECEMBER 26, 1939.
xxxxxxxxxx
- 11 -
12/22/39
TELEVISION STATIONS SHARE CHAN^IEL AFTER CLASH
Collision of television signals between a Philadelphia
station and a New York station, the first since the birth of the
infant science, resulted in a tentative agreement to share time
between Station W3XE, operated by the Philco Radio & Television
Corp., of Philadelphia, and Station W2XAX of New York, operated by
the Columbia Broadcasting System, it was disclosed this week.
The agreement blasted the currently popular scientific
theoiy that television broadcasting is limited to the horizon, giv¬
ing rise to a wider scope in television research.
Interference was first noted on television receivers in
the Philadelphia area when both the audible and visible programs of
both stations were mutually disturbed beyond recognition, Philco
protested that its regular television service to the Philadelphia
area and its thirteen-year accumulation of television research
material, a field in which it has been a pioneer, was beint inter¬
fered with whenever Columbia's television station took the air.
Engineers and members of the Philco television audience
both noted the clash and extensive field tests by Philco research
workers verified the collision of the television signals.
The agreement, the first time- sharing arrangement in
television's short history, was necessitated by the fact that both
stations operate on the same frequency band — channel number two
(50 to 5 6 megacycles). Both stations are licensed for experimental
television broadcasting by the Federal Communications Commission.
Effective at once, Philco will transmit television pro¬
grams between midnight and noon daily, and on Wednesday, Eriday
and Sunday evenings after 6 P.M. The Columbia station will confine
its television broadcasts to all other times.
Philco has already petitioned the Federal Communications
Commission to change its proposed allocation of television channels
so as to give Channel Number 2 to Philadelphia since New York City
has been assigned to Channel Number 1. The petition was filed witb
the FCC in Washington on December 16.
xxxxxxxxxx
TELEVISION SET SALES 750 ON WEST COAST
Sales of television sets in the Los Angeles area, which
now enjoys daily programs, have amounted to about 750 in the short
time that television has been available there, according to the
New York Tim.es business review. Telecasts cover a rac.ius of about
30 miles and are on a six- day schedule. Motion pictures are used
every day and live talent three times a week. Including the New
York figure, television set sales have now amounted to about 2,000.
the Time s estimated.
XXXXXXXXXX
- 12 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
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IiroEX TO ISSUE OF DBCEMBE^i?^, ^39
FTC Notes Continued Improvement in Radio Ads . . 2
Television Hearing Set for January 15 . . . 4
Ui S. Foreign Service Communications Discussed . 5
WRC-W/IAL Win Variety Annual Award . . . 7
No New Safety Laws Needed, Says Fly . . 7
War Coverage Highlight of Year for Networks . 8
Hunt for ^1,000 to he Res^uraed hy FCC . 9
Trade Notes . . . . . . 10
1939 Radio’s Greatest Year, Says Sarnoff . 11
G.E. Official Says Boost in Radio Sales in 1940 . 12
No, 1196
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December 29, 1939
FTC NOTES CONTINUED IMPROVEMENT IN RADIO ADS
The Federal Trade Commission in its annual report released
this week notes a steady improvement in radio advertising, as well
as newspaper and periodical advertising, and predicts continued
progress as a result of the corrective activities of the commis¬
sion’s radio and periodical division.
"The commission believes that its work in this field con¬
tributed substantially to the improvement that has been evident
in recent years in the character of all advertising generally",
the report seid, "and tha.t with the increased facilities and per¬
sonnel provided by the newly created division, together with a
gradual increase in the extent of its survey over the advertising
field, such gains as ha.vc been made will not only be maintained
but continually increased. "
Reviewing its examination of radio advertising during the
year, the FTC said:
"The Commission, in its systematic review of advertising
copy broadcast over the radio, issues cp.lls to individual radio
stations, generally at the rate of four times yearly for each
station. However, the frequency of calls to individual broad¬
casters is varied from time to time, dependent principally upon
transmittal power, the service radius or area of specific stations,
and the advertising record of certain types of stations, as dis¬
closed in analyses of previous advertising reviews.
"National and regional networks respond on a continuous
weekly basis, submitting copies of commercial continuities for
all programs wherein linked hook-ups are used involving two or
more affiliated or member stations.
"Producers of electrical transcription recordings submit
monthly returns of typed copies of the commercial portions of all
recordings produced by them for radio broadcast. This material is
supplemented by periodical reports from individual stations list¬
ing the programs of recorded commercial transcriptions and other
essential data.
"The combined radio material received furnishes representa¬
tive and specific informa.tion on the character of current broad¬
cast advertising which is proving of great value in the efforts
to prevent false and misleading representations.
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12/29/39
"Dnrtng the fiscal year ended June 30, 1939, the Commission
received 626,293 copies of commercial radio broadcast continuities,
amounting to 1,3^,^S pages of typewritten script. These com¬
prised 260, 90S pages of individual station script and 523,5^0
pages of network script.
"The staff read and marked' 6^3, 796 commercial radio broad¬
cast continuities, amounting to 1,3B^,353 pages of typewritten
script. These comprised 492,5^0 pages of network script and
291,213 pages of individual station script. An average of 4,539
pages of radio script were read each working day. From this
material 29,143 commercial broadcasts vrere marked for further
study as containing representations that might be false or mis¬
leading. The 29,143 questioned commorcia.l continuities provided
current specimens for chock with existing advertising cases as to
their compliance with actions, stipulations, and orders of the
Commission, in addition to forming the bases for prospective cases
which may not have previously been set aside for investigation.
"In general, the Commission has received the helpful co¬
operation of Nation-v;ide and regional networks, and transcription
producers, in addition to that of some 6I6 active commercial radio
stations, 457 nev^spaper publishers, and 533 publishers of magazines
and farm journals, and has observed an interested desire on the
part of such broadcasters and publishers to aid in the elimination
of false, misleading, and deceptive advertising.
"Drug preparations, cosmetics, health devices, and contri¬
vances and food products accounted for 62.7 percent of the adver¬
tised articles given legal review during the fiscal year.
"In the item of drug preparations, vj'hich comprised 42,4 per¬
cent of the advertised products, a substantial proportion of the
related advertising contained flagrant misrepresentations or rep¬
resentations which disclosed possible injurious results to the
public and for that reason x-^erc given preferred attention.
"Many requests ha.vc been received from radio stations,
advertisers, and advertising agencies for advice and information
concerning certain advertisers a.nd their products. The Commission
cannot give the information requested in many cases either beca.use
the matter may be under investigation or it is not fully advised
of all the facts and cannot render opinions therein; and, in any
case, it is not the Commission policy to ps.ss on the merits of
products advertised. It treats as confidential all proceedings
prior to acceptance of a stipulation or issuance of a complaint.
After a stipulation has been accepted and approved, or a complaint
issued, the facts concerning such proceedings are for the public
record and available to anyone who may request them.
"During the fiscal year ended June 30, 1939> the Commission,
through its Ra.diro and Periodical Division, sent questionnaires to
advertisers in 679 cases and to advertising agencies in 44 cases,
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negotiated 230 stipulations accepted and approved by the Commission
for discontinuance of misleading representations, and settled or“
closed by its various methods of procedure 39^ such cases. In 26
cases the issuance of complaint was recommended, 12 for failure to
stipulate and 2 without giving the advertiser an opportunity to
stipulate because of gross deception or danger to the public in¬
volved in the practice. In 15 cases previously settled by stipula¬
tion complaints were recommended for violation of the terms of
those stipulations.
In 135 cases the division recommended filing the assembled
data and closing the cases without prejudice to the right of the
Commission to reopen them at any time the facts warranted. Four
cases were closed because the Post Office Department had issued
fraud orders against the advertisers and 11 because the Post Office
Department had accepted affidavits of discontinuance of business
from the parties concerned. Others were closed because, prior to
the Commission’s contact, the advertisers had discontinued ad¬
vertising or soiling without intent to resume, and others because
the advertisers wore able to Justify their claims.”
xxxxxxxx
TELEVISION HEAPINO SET FOR JANUARY 15
With members of the Federal Communications Commission still
uncertain as to the wisdom of allowing even partial commercializa¬
tion of television transmission, a public hearing has been scheduled
for January I5.
A clarification of the proposed rule to permit commercial
sponsorship of television programs, as adopted by the coimnission
before recessing for the Christmas holidays, v:ill be the principal
subject of the hearing.
The first draft of the recommendations of the television
committee was somewhat vague as to the application of the limited
commercialization provision. The new version is clearer and reads
as follows:
"(a) No charges cither direct or indirect sha.ll bo made for
either the production or transmission of either aural or visual
programs by Class I television stations;
"(b) No charges cither direct or indirect shall be made
for the transmission of either aural or visuo,l programs by Class
II television stations; however, Class II television broadcast
stations may make chcorges to' cover cost of program production, in¬
cluding advertising material, which programs may be transmitted
as an experimental program service but vjithout cha.rge for such
transmission;
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12/29/39
''(c) Quarterly reports shall be made to the Commission by
Class II television broadcast stations of the chartes and costs as
well as of other pertinent information which may be of assistance
to the Commission in evaluating the economic feasibility of tele¬
vision broadcasting as a regular service to the public on a com¬
mercial basis.
"(d) The offering by any person of the facilities of any
television broadcast sta.tion on a regular commercial basis is pro¬
hibited. The limited commercialization permitted under subsection
(b) above shall not take precedence over the experimental service,
but shall in fa.ct bo subordinated to it."
Another move to plug loopholes v;as a stiffening of the rule
prohibiting 'solicitation* of business. Neither type of operator
would be allowed to ’offer’ his facilities to advertisers ’on a
regular commercial basis.’ Under the rule 'the limited commerciali
zatibn . . . shall not take precedence over the experimental ser¬
vice, but shall in fact be subordinated to it.’ Meaning that the
FCC still considers visual broadcasting permits are intended to
benefit the public before the experimenters.
Otherwise, the l0.test version of the proposed rules co¬
incides with the draft published Nov. I5.
xxxxxxxx
U. S. FOREI&N SERVICE COMMUNICATIONS DISCUSSED
One of the most interesting chapters in the outstanding new
book "Inside the Department of State" by Bertram D. Hulen, is de¬
voted to foreign service communications. State Department offi¬
cials are never very talkative on any subject and would be about
as quick to tollyou just how they used the radio telephone and
cable in emergencies as a G-man would be to explain to you the
intricate workings of or when he used his revolver.
Thus communications in our foreign affa.irs, as discussed by
Mr. Hulen, who for years has covered the State Department for the
New York Times, and knows the place inside out, reveal many things
heretofore noT known.
Mr. Hulen states that the commercial radio is a distinct
advantage to the Department of State as a channel of information
when it broadcasts the speech of the head of a foreign government
announcing his position in a matter of grave concern to the United
States. Work stops in the Department when that happens. Officials
gather around radio sets in various offices while the Secretary of
State, surrounded by Assistant Secretaries of State, and other aide
whom he has invited to his office, is among the most attentive
listener.
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12/29/39
"Yet the transatlantic telephone has been used much less in
diplomacy than might be supposed since Secretary S-tinison employed
it", Mr. Hulen writes. "^Then he was to speak with the Embassies
in London or Paris, he would summon a dozen or more departmental
officials and experts to his office and have them listen in with
head telephone receivers. If a question arose that he could not
readily answer, he would find the information among some one of
his group of specialists. Sometimes, calling up these Embassies
direct, was to the annoyance of a distinguished Ambassador who,
because of the difference in time between Washington and Paris,
was routed out of bed in his night-shirt."
According to Mr. Hulen, Secretary Stimson was the greatest
user of the overseas telephone. Secretary Hull has used the over¬
seas telephone relatively little except during a crisis to receive
instant factual reports from Ambassadors in the principal capitals
Mr, Hulen told of an exciting incident when the American
Legation was in imminent danger of being overrun by the panic-
stricken native mob in its headlong rush from Addis Ababa before
the approach of Italian troops in May, 1936- The Legation was in¬
sufficiently manned to withstand the horde beating at the gates of
the compound, even though Cornelius Van H. Engert, the Minister
Resident, had armed his little staff and they had taken position
to stand off the natives. It was obvious that the effort would
soon fail unless reinforcements arrived. The one chance lay with
the strong force of guard at the British Lege.tion three miles
away. Yet telephone lines had been cut and a runner could not
have made the distance and survived.
In the emergency Engert turned to the short-wave radio
equipment that had been sent to him from Washington in charge of
Navy expert to maintain contact with the United Sta.tes if com¬
mercial communications failed. The British had no such equipment
so he could not send a message direct. But Engert was resourceful
He sent his appeal for reinforcements by short-wave to the United
States wireless station at Cavite in the Philippines. It was im-
media.tely relayed to Wa,shington for transmission to London. The
British G-overnment proijptly forwarded it to Cairo from whence it
was sent to the British Legation at Addis Ababa. An hour and a
half after Engert sent his appeal, troops from the British Lege.-
tion drove up to the compound in trucks Just in the nick of time.
"Inside the Department of State" is published by Whittlesey
House, McGraw-Hill Book Company, 330 West 42nd Street, New York,
and the price is |3«00.
XXXXXXXX
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12/29/39
l/VRC-WML WIN VARIETY ANNUAL AWARD
Santa Claus arrived early at WRC and VJKAL, Washington, this
December and dropped a prize package. It was addressed to General
Manager Kenneth H. Berkeley from Bob Landry, radio editor of
Variety Magazine, and contained the news that the two stations
Jointly had won the national 1939 showmanship award for stations
operated by networks. It was the seventh annual showmanship survey
conducted by Variety.
A day or so after Christmas forme.! presentation of the award
was made, and Warren Francis, Washington Representative of Variety,
handed to Mr. Berkeley the bronze shomanship plaque that is now
hanging in the WRC-WMAL reception room. During the award ceremonies
which were broadcast by both stations Mr. Francis said:
"As the whole trade knows, the plaque for the best network-
managed station went to WRC-VJMAL. You people were measured and
found to be awake, alert, on your toes. YqU had shov/n ability to
build programs and to develop talent. You ha.d proved you could at¬
tract listeners and interest advertisers. You had achieved a de¬
sirable balance between commercialism and public service. You had
blended entertainment, charitable work, and education. You ha.d
crea.tcd a distinct personality. In recognition of your accomplish¬
ments, I am very happy to present to you this showmanship plaque,
tangible evidence that you and your staff in the past year turned
in the best performa.nce in your particular field.’'
In receiving the plaque Mr. Berkeley said: The v7ork a.nd
spirit of every member of the staff has made this citation possible.
We are indeed gnat if ied that our efforts to bring our listeners a
well-rounded radio service have been recognized and honored by
Variety Magazine . . . However one may define radio showmanship,
we ieel that to attain it is to work your hardest to inform and
please your listeners. We value this av/ard very highly. It in¬
spires us to strive all the harder to bring our V7ashington radio
friends the best possible radio service year in and year out. We
shall certainly continue all our efforts to that end. ”
XXXXXXXX
NO NEW SAFETY LAWS NEEDED, SAYS FLY
Apart from proposals made in its "special study of the radio - -
requirements necessary or desirable for sa.fcty purposes of ships
naviga.ting the Grca.t Lakes and inland waters of the United States",
which v/as made at the request of Congress, the Fodera.1 Communica.-
tions Commission will not recommend additional legislation for the
promotion of safety of life and property through wire and radio
aids. This W8.s made known this xv’-eck in a letter to Congress,
pursuant to provisions of the Communications Act, from Chairman
James Lawrence Fly.
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12/29/39
In an accompanying communication, Chairman Fly reported
that further time is needed to study the G-reat Lakes and inland
waters report, hut expects to file the same with Congress by April
15. He explained that 316? pages of record and 3^1 technical ex¬
hibits were assembled by the small technical staff available to
make the survey under Commissioner Thad H. Brown, and that the
Commission as a whole is still studying the resultant 621-page
report xvith exhibits which was filed with it on December I5.
xxxxxxxx
VTAR COVEBAGE HIGHLIGHT OF YEAR FOR NETV/ORKS
Special short-wave pick-ups of news and comments on the
European wah were the highlights of an active year for the three
major networks in 1939*
The Columbia network had the biggest “show" in its history
in 1939* Programs devoted to nat tonal and world affairs during
the yea.r, as a result, totaled 5^669 — or more than 1,3^1 hours
of broadcast time. In 1932> former peak year, CBS had 2,006 pro¬
grams, or ^32 hours devoted to news and world affairs.
This year, 927 of "the broadcasts originated in nerve centers
of the Old World, the vast majority of them coming after announce¬
ment of the Berlin-Moscow non-aggression pact burst upon a startled
world in mid-August.
The many days tha.t Columbia stayed on the air on a 24-hour
basis during the crisis, plus the fact that ever since then the
network has opened an hour earlier and closed an hour later, added
almost 4,000 hours of broadcasting time' for the j^’ear as compared
v;ith 1932* The’ flares for 1939 B.re 10,392 hours for 31j4^9 broad¬
casts; for 1932, 6,662 hours and 19,074 broadcasts.
Inauguration of an international commercial short wave
broadcasting service, installation of a steerable antenna v;hich can
be focused on either Buenos Aires or Rio de Janeiro by throx’^ing a
switch, and increase of program service below the Equator by three
and a half hours daily were outstanding accomplishments of the
National Broadcasting Company's international division during 1939*
The new service offered by NBC operates sixteen hours daily
over WRCA and WNBI. It is designed primarily to cover the 20 Latin
American republics with programs in Spanish, Portuguese and English,
beginning at 12:00 Noon, and running until 1:00 a.m., EST. In ad¬
dition there will be made available to advertising sponsors a day¬
time European program service beginning at 9l00 a.m., and running
until 4:00 p.m., in English, French, Italian and German. These com¬
mercial programs V7ill be supplemented by the usual extensive schediiLe
of sustaining broadcasts.
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12/29/39
The year 1939 was marked by an increase of 23 percent in
special features, spot nev/s, talks and sports broadcasts heard
over WOR, key station of the Muturl Broadcasting System. It
also will m.ark the fifth anniversary of the special feature
division, begun in 1935 by G, W. Johnstone, director of public
relations and special features.
More than 1005 spot news, talk and special features
programs will have been heard over WOR by January first in
contrast to 720 heard over WOR in ].933. Five hundred and
twenty-two were broadcast in 1937. Of the 1939 total of
1005, more than 637 were originated by the V/OR special
feature division. The WOR originations do not include a
large number of European originations by Mutual which were
handled in one form or another by the WOR staff.
XXX X X. X X X
HUNT FOR 1,000 TO BE RESUMED BY FOG
The Federal Communications Commission on January 3 will
renew its search for a bundle of ten $1,000 bills which every¬
body concerned admits existed but everybody denies owning.
Bank records introduced at a hearing have proved the
existence of the money -- it was deposited in a trust fund
created for construction of WSAL at Salisbury, Md.
But of three men immediately concerned, two deny ever
having even seen the money. They are James Gum, Washington
radio attorney, and Frank Stearns, in whose name the station
was licensed.
The third man, Glen Gillette, Washington radio engineer,
has testified the money -- in crisp bills -- v/as handed to him by
Mr. Gum for deposit in a trust fund in Mr. Gillette’s name.
Mr. Gillette also has testified Mr, Gum later got the
money back after deduction of $1,500 Mr. G’om owed Mr. Gillette
and a note signed by Mr. Stearns was substituted. It was then,
Mr. Gillette has testified, that he decided to finance the station
himself in return for a $25,000 chattel mortgage.
X X X X X 1^, X X
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12/29/39
TRADE NOTES
The invitations for the wedding of Miss Grace Lucille Carr,
daughter of Mrs. Arthur Carr, to Mr. Gail Gray Geddes of Montclair,
N. J., have been issued. The wedding will take place January 12,
19^0, S p.m., at St. Alban's Church, Dr. Charles T. Warner offi¬
ciating. Mr. Geddes is the son of Bond P. Geddes, executive vice
president of the Radio Manufacturers Association, and Mrs. Geddes,
of Chevy Chase, Md. Miss Carr attended National Cathedral School
for Girls and vms graduated from Meredith College, Raleigh, N. C.
Mr. Geddes was graduated from Dartmouth College and received his
master of commercial science from the Amos Tuck School of Adminis¬
tration and Finance. He is a member of the Sigma Nu social
fraternity and Phi Beta Kappa honor8.ry fraternity.
Sam Lubcr, trading as Dearborn Sa.les Company, 7II South
Dearborn St., Chicago, has been ordered by the Federal Trade Com¬
mission to cease and desist from use of lottery methods in the
sale and distribution of merchandise to ultimate consumers. The
company, selling and distributing radios, coffee sets, and other
mercha.ndise, also distributed to the purchasing public devices
commonly knovm as pull cards, with certain literature, instructions
and order blanks through which merchandise was to be sold to ulti¬
mate purcha.sers by means of lottery methods.
George S. Do Sousa, tressurer, has been elected vice
president end treasurer of the Radio Corporation of America. Mr.
De Sousa ha.s been treasurer of RCA since its formation in 1919,
p.nd prior thereto was an officer of the Marconi Wireless Telegraph
Company of America, the predecessor company to RCA.
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12/29/39
1939 RADIO'S GREATEST YEAR, SAYS SARNOFF
According to David Sarnoff, president of the Radio Ccrporation
of America, "Radio in 1939 has had its greatest year".
"More than 9,000,000 radio receivers have been sold. More
radio sets are in use in the United States than in all the rest
of the world combined. With 45,000,000 receivers in American
homes and automobiles, radio has become an integral part of our
national life.
"The first public service of television programs, adding
sight to sound, wp.s introduced in the United States in 1939, by
RCA's broadcasting service, the National Broadcasting Company.
It marked the triumph of many years of ra,dio research and tech¬
nological advance. It represents a pioneering effort of the first
magnitude. Those who predicted that the introduction of television
would retard radio progress have been poor prophets of the year's
amazing results in sound receiver sales.
"American-owned radio communica.tion services, vital to our
national defense, have maintained direct contacts with all nations,
belligerent and neutral. In 1914 these radio services were non¬
existent, and our communications were at the mercy of the countries
which controlled the cables. Toda,y' direct radio circuits connect
the United States with 51 countries, and no intermediate censor¬
ship is possible. Our radio communication facilities guarantee
the freedom of our communication lanes for the flow of inter¬
national messages and in the interests of American trade.
"More than 750 broadcasters, operating either locally or in
conjunction with national and regional networks, sold more time
over their facilities to sponsors, than they did in any previous
year since broadcasting began. This furnishes the economic base
for our free American system of broadcasting.
"The war, and its threat to the neutrality of the Western
Hemisphere, put the American system of free and private enterprise
in radio to the acid test. America.!! broadcasting met that test,
American radio told the truth to its listeners a.t home and through¬
out the world. Its short-wave broadcasts were almost the world's
only free, factual, and uncensored sources of radio news.
"Employment has risen in the entire radio industry, and the
Industry is paying hi^er wages to workers, musicians, artists and'
performers. It is estimated tha,t radio gives employment to
400,000 people in the United States, with an annual payroll in
excess of $500,000,000.
"Looking ahead, I believe that 194o will be a year of even
greater importance tha.n the year just ending. Two factors alone
should Insure a year of eager and unflagging public interest in
broadcasting. One is the international situa.tion. The other is
the presidential nominations and election in the United States.
no'
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12/29/39
"In all history, no other industry ever crammed so much
amazing progress into one 20-year span. But the far-reaching de¬
velopments, which are now the subject of investigation and experi¬
ment in the radio research laboratories, already indicate that
the progress of the next tv/o decades will surpass the achievements
of the last tvra — in the birth of new miracles of radio science,
and in the building of new highways of public service." _ _
^ xxxxxxxx
G. E. OFFICIAL SEES BOOST IN RA.DIO SALES IN 19^0
The broadcast receiver business should show considerable
improvement next year, due to the European war and the presidential
election, in the opinion of Dr. W. R. G, Ba.ker, of the radio and
television department of General Electric Co.
"Unless something occurs to impair seriously consumer pur¬
chasing power, the broadcast receiver business should show an im¬
proved trend in 19^0 duo to the European situation, plus the usual
increase in consumer interest in a presidential year," ho said.
"An Increase in the number of television transmitters, program im¬
provement, and perhaps a decrease in the list prices of television
receivers may stimulate the television field. The increased scope
of operations for transmitters and tubes, in addition to continued
governmental activities forecasts an improvement for those product
lines in 194-0."
Reviewing the past year. Dr. Baker said: "During 1939 con¬
sumer purchases of radio receivers were seriously affected by two
factors. The first - the introduction of television service in New
York City - resulted in depressing the entire national market. Con¬
sumer reaction to the great amount of publicity on television, plus
the opening of the New York station, made it difficult to convert
the potential purchaser of a radio receiver into an immediate buyer.
"To offset this condition, the public has been offered, in
1939, the greatest dollar value in the history of the industry. In
addition, the consumer was gradually educated, not only in the
limitations of the existing television service, but also as to the
near future possibilities of television on a national basis.
"Television is still an engineering achievement and a com-
merical enigma. The actual sales of television receivers have been
extremely limited. Many reasons have been advanced and all are un¬
doubtedly correct to a degree. Some of the causes advanced for the
negligible consumer acceptance so far as purchases are concerned,
are the limited program hours, the type and qua.lity of programs, the
list prices of receivers, and the relatively short trade discounts
as compared to radio.
"Nevertheless, and in spite of the limited sales, it is the
general opinion that the New York experiment has demonstrated that
television service can be rendered over the area originally esti¬
mated, and that given acceptable programs, such service provides real
entertainment value and opens up new educational possibilities.
i?
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