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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
C O N F I D E N T I A L — Not for Publication
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INDEX TO ISSUE OF JANUARY 5, 1937.
Television Not Reedy For Public, FCC Says In Report . 2
1937 Radio Revenue Seen Exceeding Record Of 1936 . 4
CBS Bid On WOAI Withdrawn As Examiner Disapproves . 5
Payne Doubts Constitutionality Of Ban On Publishers . 6
Engineers To Submit Preliminary Report To ^CC . 7
Trade-Mark Ruling Recognizes Similarity Of Sounds
Edmunds, Former Radio Executive, Dies .
Arnold Lauds Radio Advertising In Publishers’ Organ . 9
FDR Congratulates MBS On Extension . 9
Industry Notes . * . 10
Soap Makers Now Leading Network Sponsors . 11
D. C. Firm Charged With Misusing ^CA Name . .12
NAB Sales Division To Hold Two-Day Meeting . 12
No. 993
co co
January 5, 1937.
TELEVISION NOT READY FOR PUBLIC, FCC SAYS IN REPOFT
Although progress has been made in the technical
development of television during the past fiscal year, it is
still not ready for public service on a national scale, accord¬
ing to the Engineering Department of the Federal Communications
Commission.
This opinion, along with a commendary appraisal of
facsimile transmission and a prediction that the ractio bands
will continue to be crowded despite anticipated expansions, was
contained in the FCC*s annual report submitted to Congress on
Tuesday, January 5th.
The appraisal of television, however, is somewhat out
of date in view of developments in recent months as it was made
as of June 30, 1936, the end of the fiscal year.
"While the technique of television has progressed during
the past year, it seemed generally the consensus of opinion
that television is not yet ready for public service on a national
scale.
"There are numerous obstacles to be overcome and much
technical development is required before television can be
established on a sound national scale. Nevertheless, the rate
of progress is rapid and the energies of the laboratories of the
country are being concentrated on the technical development of
television. "
The FCC Engineering Department indirectly recommended
that the Commission move cautiously in making allocations and
leave the way open for changes as technical progress continues.
Reciting the record of the hearing held by the FCC in
mid- June, the Engineering Department saia:
"The evidence snowed the necessity for making tenta¬
tive allocations in order to avoid the pitfalls of premature
intrenchment resulting from huge expenditures for experimental
apparatus, developing into future obstacles of a practical
nature when the time becomes opportune for permanent allocation.
"It was also indicated that even though the useful radio
spectrum in the next few years will be seven times as extensive
as that of today, there would not be made available such addi¬
tional multiplica tion of channels, and that with the advent of
new services such as television and other new uses for radio,
the Commission would continue to be confronted with a dearth cf
radio facilities in the face of a large demand therefor.
2
1/5/37
*i The rapid progress being made in the development of
facsimile communication, both in the transmission of photo¬
graphs and in the transmission of printed matter by radio and
wire, has reached a stage which commands attention. Facsimile
transmission and reception has the possibility of affecting con¬
siderably the method of conducting record communications in
the future. While the future economic problems and benefits
presented by facsimile are not yet clearly understood, it
appears that the potentialities of this new service are of suf¬
ficient importance to require close attention to the results
of experimentation and evolution in commercial operation,
"The inauguration of field tests of the coaxial cable
system between New York and Philadelphia is a forwa.rd step in
the technique of communications. The results of these tests
should be viewed with interest because of the potentialities
involved in the application of this type of cable to the service
of the public in the future. If the coaxial cable system should
prove to be practical, it may bring about economic results of
possible benefit to the public. The Commission’s policy in this
respect is to give full consideration to this technological trend-
and its social and economic consequences. "
The ^CC Legal Deoartm^nt reported that "while the
past fiscal year has been characterized by an increase in the
number of complaints received with regard to the program service
of broadcast stations, the majority of the investigations con¬
ducted pursuant to such complaints resulted in informal adjust¬
ment thereof.
"In only 11 instances did the investigations, conduct¬
ed as a result of the complaints, or renorts from the Commis¬
sion's field offices, require formal action, these being con¬
cerned with stations that broadcast lottery programs, object¬
ionable medical programs, stock-selling schemes, and commercial
fortune-telling programs.
"Final Commission decision has been rendered with
respect to five of the aforementioned 11 cases, one resulting
in the failure to renew the license of a station and its con¬
sequent deletion. "
The report recites the various new rules invoked by
the FCC during the year, studies conducted, ana the effect of
the repeal of the quota amendment.
The greater portion of the 131-page document, however,
is devoted to statistical data concerning carriers engaged in
wire or radio communications and the companies controlling them.
xxxxxxxx
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1937 RADIO REVENUE SEEN EXCEEDING RECORD OF 1936
Although broadcast advertising revenue reached an
estimated $114,400,000 in 1936, indications are that this record
will be surpassed in 1937, according to Dr. Herman S. Hettinger,
Assistant Professor of Marketing, University of Pennsylvania,
and now associated temporarily with the Federal Communications
Commission.
Writing in Broadcasting, Dr. Hettinger said, in part:
"A continued growth of broadcast advertising volume
may be expected during the coming year. Though complete informa¬
tion is yet to become available, it seems that radio advertising
in 1936 experienced s gain of no less than 19$ over the previous
year. Assuming growth in 1937 at even half that rate, a total
volume in the neighborhood of $125,000,000 may be expected.
Volume here is stated on the basis of the one-time rate con¬
ventionally employed by media for this purpose.
’’The preceding prediction is made on the basis of an
estimated total volume for 1936 of $114,400,000. This estimate
is based upon data for the first ten months of the year, and
also contains an upward readjustment of NAB local broadcast
advertising volume, the necessity of which was revealed in the
recent Bureau of Census report on the radio broadcasting indus¬
try. It should be noted that the readjustment is based upon
incomplete da.ta and represents merely a tentative estimate.
However, it is the best possible at the present time and at
least presents a better picture of total broadcast advertising
and of the relative importance of various portions of the medium
than otherwise could be secured.
"Estimated broadcast
1936 (gross time sales) on the
is as follows:
National Networks
Regional Networks
National Non-Network
Local
advertising volume for 1935 and
basis of readjusted local volume
1935
$50,087, 686
1,110,739
17,000,000
27,000,000
1936
$59,000,000
1,400,000
23,000,000
31,000,000
$95,678,425 $114,400,000
"Of even greater interest are the probable developments
with regard to various portions of the medium. National network
advertising will continue to gain, though the rate at which it
will do so depends upon a. number of highly speculative factors.
"National network volume was the first to recover from
the set-back which radio advertising received in 1932 and 1933
as a result of the depression. Network advertising experienced a
gain of 35.3$ in 1934 over 1933, ana of 17.4$ in 1935 over the
preceding year. The increase for the year just closed will
4
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1/5/37
probably be between 15$ and. 18$. It should be noted that a por¬
tion of this evenly maintained rate in the ppst two years has
been the result of the entrance of the Mutual Broadcasting
System into the national network field. Had this not occurred,
the tendency toward a slower rate of increase would have been
more pronounced. "
XXXXXXXX
CBS BID ON WOAI WITHDRAWN AS EXAMINER DISAPPROVES
Consummation of probably the second largest broadca str¬
ing station deal was blocked last week and the deal called off,
temporarily at least, after a Federal Communications Commission
Examiner had recommended against approval of the sale of WOAI,
San Antonio, to the Columbia Broadcasting System for $825,000.
CBS has little choice after Examiner P. W. Seward had
filed his report only a few days before the purchase contract
was due to expire on December 31. The FCC Broadcast Division
was out of session for the holidays and did not resume its meet¬
ings until today, Tuesday, January 5th.
Station WOAI, a 50,000 watt outlet, is now an NBC affil¬
iate. Under the proposed shake-up, KTSA, San Antonio, and KNOW,
Austin, both owned by Hearst Radio, Inc., were scheduled to join
NBC, as WOAI went to CBS,
The adverse Examiner's report, which raised a grave
question as to the property rights of broadcasting stations,
was unexpected in view of the FCC's former approval of the pur-
cnase of KNX, Los Angeles, by CBS for the record price of
$1,300,000.
Examiner Seward recommended denial on the ground that
it would violate two sections of the existing law. He held it
would "amount to the recognition of an assertion of ownership
and sale of radio facilities" and also that it would violate the
public interest clause.
In a 25-page report, the Examiner delved deeply into
precedents established in other cases and into radio law. "All
of the acts of Congress and the decisions of the Court", he said,
"negative the idea that a licensee of a radio broadcast station
should ever be permitted to place a value on the license, fre¬
quency or channel or be permitted to traffick in radio facil¬
ities or to assert or exercise 'ownership1 thereof." He said
that it appeared certain that if Congress had intended to permit
the "barter, sale, trafficking in radio broadcast licenses,
frequency, or channels, it would have fixed a standard for the
guidance of this Commission in arriving at a proper value. "
XXXXXXXX
- 5 -
1/5/37
PAYNE DOUBTS CONSTITUTIONALITY OF BAN ON PUBLISHERS
While pointing to the inherent dangers of newspaper
control of the radio, Federal Coramunlca t ions Commissioner George
Henry Payne doubts that a law restricting publishers from gobbl¬
ing up broadcasting stations would be constitutional.
Speaking before the American Association of Teachers
of Journalism at St. Louis, Commissioner Payne denied that radio
constitutes a challenge to journalism.
"The idea that radio challenges journalism is not
based on a knowledge of history or of the evolution of political,
economic or even of technical ideas", he said. "Journalism is
the safeguard of democracy even when journalism is prejudiced.
It is an institution. Radio is but an instrument.
"Radio will affect the profits that come from advertis¬
ing as aviation will affect the profits of carriers on the
ground who have hitherto enjoyed a monopoly of transportation,
"The basis of the objection to newspapers owning
broadcast stations is the belief on the part of many legisla¬
tors that radio should be a check on the newspapers and not
under their control. It is pointed out that if 85 percent of
the papers in the country are opposed to one candidate, the only
protection he has against unfair play is the fact that he can go
to the people over the air.
"It is this critical attitude that has given encourage¬
ment to those who are opoosea to newspapers owning ra.dio stations.
The number of those who hold this view has greatly grown in the
last six months. As we of the Federal Communica tions Commission
have never had to meet the situation, the problem has remained
in the realm of general discussion. Personally, I do not see
how you are going to frame a constitutional law that will bar the
owner of a newsoaper from operating a broadcast station if you
allow manufa.cturers of this article or that to do so.
"Up to date, however, I have not heard of anyone
seriously attempting to draft such a law, although one disting¬
uished legislator believes that such a law could be upheld as
constitutional - as was the law prohibiting the railroads from
owning the coal mines. When that bill is drafted, the debate
will be bitter and illuminating.
"After the recent election we heard much discussion
along the line that radio had superseded journalism as an
influence with the people. It is difficult to conceive such an
idea or the basis for such a belief. By the very means of *
its existence it is impossible for radio broadcasting to rise to
the heights of the journalistic accomplishment in this country
in the last 150 years. You might just as well say that radio
6
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1/5/37
had succeeded to books and that hereafter people will no longer
read, they will just listen, and accept the almost inevitable
corollary that in the course of time they will stop thinking
and do nothing but talk*
"Radio as a means of instant communication with all
sections of the world will develop* As a means of transmitting
news and even views it will > we nope, help to bind the people
of the world together in the onward march toward happiness*
progress and peace. But the motive power that will furnish
the ideas transmitted through the air to the millions of the
human race will be the genius that developed both democracy and
journalism in this country and that will ever be the spiritual
force of an unselfish Fourth Estate. "
XXXXXXXX
ENGINEERS TO SUBMIT PRELIMINARY REPORT TO FCC
A preliminary report based on findings of the Engineer¬
ing Department from a study of evidence submitted at the October
broadcast band hearing will be submitted this week to the Broad¬
cast Division of the federal Communications Commission. Its
contents are not immediately available.
From usually well informed sources, however, it
appeared that the Engineering Department would recommend
removal of the 50 KW maximum power limitation on clear channel
stations, and a reduction in the number of clear channels to
28 or 29.
The question of super-power allocations for establish¬
ing more stations like WLW, Cincinnati, was left to the FCC to
decide as a matter of policy, it is understood, on the ground
that social and economic factors outweigh technical considera¬
tions in power grants beyond 50 KW.
Classification of broadcasting stations into six
groups also is understood to be one of the recommendations
expected.
Meanwhile, it was learned that Dr. Herman S. Hettinger,
Assistant Professor of Marketing, University of Pennsylvania,
has been hired by the Engineering Department to summarize cer¬
tain of the economic data produced by the October hearings.
Consequently, it is believed tha.t a remored proposal
that an "economic section" to pass upon market and social factoi s
in broadcast allocations will not be made until Dr. Hettinger’s
study is completed, if at all.
XXXXXXXXX
- 7 -
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1/5/37
TRADE MARK RULING- RECOGNIZES SIMILARITY OF SOUNDS
Recognizing the widespread, use of radio as an advertis¬
ing medium, the U. S. Court of Customs and Patent Appeals in
Washington has ruled out a trade-mark application on the ground
that it resembled a registered trade-mark in sound although
not in spelling.
Reversing the Commissioner of Patents in the case of
Marion Lambert, Inc. vs. Edward J. O'Connor, the court ruled
that the latter could not be given a registration of the mark
"V00" for a depilatory, because it resembled too closely the
mark "DEW", a deodorant, held by the Lambert corporation.
"Similarity in the sound of the names under which
goods are sold is becoming a more imoortant consideration in
the decision of cases of this kind as the effective advertise¬
ment of goods becomes increasingly dependent upon radio facil¬
ities" said the opinion. Judge Finis J. Garrett was the only
member of the five-judge court to dissent. The decision was
handed down by Judge Oscar E. Bland.
XXXXXXXX
FORMER RADIO EXECUTIVE, DIES
Ralph Edmuncts, publicity director of the Metropolitan
Opera House in New York many years ago and later business
manager of the Philadelphia Philharmonic Orchestra, died last
Saturday in the French Hospital, New York City.
He was an Englishman by birth, but had lived in the
country for many years. In 1904 he left the Metropolitan to
manage the Henry W. Savage English "Parsifal" company, return¬
ing to his old position later. His last season with the
Metropolitan was that of 1909-10.
He was with the Philadelphia Orchestra during the war
years, and until 1929 he had been manager of Station WRC of the
National Broadcasting Company here in Washington.
Surviving are his widow, Mrs. 'Rose Marie de Foix
Edmunds, and two daughters, Mrs. Eleanor E. Oliphant and Miss
Rose Marie de Foix Edmunds.
XXXXXXXX
- 8 -
ARNOLD LAUDS RADIO ADVERTISING IN PUBLISHERS' ORGAN
Writing the first of his weekly articles on radio in
Editor & Publisher, Frank A. Arnold, former radio executive
and advertising man, has this to say of radio advertising at
the end of a brief historical review of broadcasting:
"It is not the purpose of this article to elaborate
on the commercial side of broadcasting other than to call
attention to the fact that radio ores^nts to the advertiser
the realization of his dream long unfulfilled, that some method
might be devised whereby his product could be brought directly
to the attention of the family circle. What could be more
ideal than a medium of communication which would lay down the
sponsored program inside the home and under circumstances
where the beauty of the program itself assured the advertiser
a courteous reception of his message? The develooment of the
commercial side of broadcasting was approached with great care
and with some apprehension and this contains material for a
story of its own. Suffice it to say in dollar terms that in
1927 the revenues from broadcast advertising were less than
$1,000,000. Progressively, by leaps and bounds, this has
increased until the total figures for 1936, when finally
assembled, will undoubtedly show cash revenuefrom all forms
of broadcast advertising, both net-work and local, in excess
of $103,000,000.
"Lacking at the start serious consideration by either
the advertiser or his agency, ridiculed by many as a new¬
fangled music-box, tolerated by other advertising media as of
not enough importance to be classed as a competitor; in spite
or all this there has been developed a strong, healty, progres¬
sive and altogether worthwhile medium - Radio, the Fourth
Dimension of Advertising. "
xxxxxxxx
FDR CONGRATULATES MBS ON EXTENSION
President Roosevelt and Commissioner Anning S. Prall
extended congratulations to the Mutual Broadcasting System on
its coast- to-coast expansion when the Mutual Network inaugurated
nationwide service last week. The official messages opened the
dedicatory program welcoming the Don Lee network of California
and the Iowa and Central States networks, as they joined Mutual.
Alfred J, McCosker, Chairman of the Board of Mutual
and President of WOR, and W. E. Macfarlane, President of Mutual,
formally accepted President Roosevelt's and Commissioner Prall ’ s
greetings.
Mr. McCosker, in welcoming the Don Lee group to Mutual
emphasized the increased opportunity for public service and on
behalf of the Board of Directors and staff of Mutual accepted
"that responsibility as a mandate. "
XXXXXXXXX
- 9 ..
1/5/37
INDUSTRY NOTES
The National Labor delations Board on December 31st
ruled against the Mackay Radio & Telegraph Co. in connection
with its Portland, Ore. , labor trouble and ordered Mackay to
reinstate four employees with pay. The Mackay Company was
ordered not to discriminate against any members of the American
Radio Telegraphists Associations in regard to rehiring or any
other conditions of employment.
An appointment to the job of Chief of the Electrical
Division, U. 3. Bureau of Foreign and Domestic Commerce, is
expected momentarily. Three candidates are being considered
seriously. Andrew W. Cruse left the post on December 15th to
become Assistant Chief Engineer of the Federal Communications
Commission.
Analyzing the first two years of the Cuban- American
reciprocal trade agreement, the State Deoartment in a press
release for last Sunday cited "radio apparatus" as among the
industrial products receiving tariff benefits.
The Broadcast Division of the Federal Communications
Commission has granted the petition of Central Newspapers, Inc.
to reconsider its action of December 15, 1936, in designating
for hearing the application of tne Indianapolis Broadcasting
Inc. , Station WIRE, Indianapolis, Ina. , to transfer control of
WIRE to Central Newspapers, Inc. , and directed that said appli¬
cation be dismissed from the hearing docket and granted (Com¬
missioner Case dissenting). It was further directed that an
order be entered accordingly and forwarded to all interested
parties.
Thomas P. Littlepage, Sr., radio counsellor, has been
appointed Chairman of the Transportation Committee of the
Roosevelt Inauguration by Rear Admiral Cary Grayson, Chairman
of the Inaugural Committee.
The Federal Trade Commission has ordered C. G. Hyre,
of Morgantown, W. Va. , trading as The Pepsotalis Co. , to cease
and desist from unfair trade representations in the sale of
"Pepsotalis", a medicinal preparation advertised by means of
radio broadcasts.
10
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Ted Rogers, radio editor of the New York World-Telegram ,
has started making personal tests of new all-wave and short-wave
radio receivers and reporting his findings to readers of his
column. He undertook the survey, he said, because of numerous
inquiries from readers as to what short-wave set he would recom¬
mend.
The Westinghouse Electric and Manufacturing Company
for November had a net profit of 81,226,192 after all charges
ana taxes, including provision for undistributed profits taxes.
This brought the average net income for the November quarter to
Si , 299 , 100 monthly. It entitled eraoloyees to an increase of
12 percent in December wages or salaries under the company’ s
wage and salary plan introduced in May.
Libel suits seeking damages of Sl00,000 each have
been filed in District Court at Des Moines against the Iowa
Broadcasting Co. and the Central Broadcasting Co. by Harold M,
Cooper, of Marshalltown, la. , former Chairman of the Iowa State
Liquor Commission* Joined as defendants were TOT, Cedar Rapids;
Verne Marshall, editor of the Cedar Rapids Gazette, 1936
Pulitzer prize winner for meritorious public service; and the
Gazette Co.
Marshall, the Gazette Co. and radio station WHO, Des
Moines, were also named in the Central Broadcasting petition.
Both suits grew out of speeches made by Marshall over
WHO and WMT, Oct. 25 and Oct. 29, and published in the Gazette.
The suits allege damages for malicious defamation of character.
XXXXXXXX
SOAP MAKERS NOW LEADING NETWORK SPONSORS
With Fels Naptha due to go completely network (CBS)
Jan. 13, the coming year will probably find the soap industry
accounting for a gross income in time of over $6,000,000 to NBC
and Columbia, according to Variety. Steady increase in accounts
and expenditures from the soap business over the past five yea? s
reflects one of the more arresting success stories which broad¬
casting has to tell. It is estimated that the manufacturers in
this classification will have spent around $7,000,000 for net¬
work and spot programs, exclusive of talent, during 1936.
XXXXXXXX
11
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1/5/37
D. C. FIRM CHARGED WITH MISUSING RCA NAME
Unfair trade representations in the sale of radio
receiving sets, radio tubes, and supplies, are alleged in a
Federal Trade Commission complaint issued against Sun Ra.dio
Service & Supply Corporation, 938 F Street, N. W. , Washington,
D. C.
Advertising its products as "Newest F. C. A. Licensed
Automatic Featuring the New Metal Tube", the respondent company,
through its representations, is alleged to have deceived buyers
into believing that its products were those of the ^adio Cor¬
poration of America and its subsidiaries, and that its glass
tubes were metal tubes in which the technical elements were
sealed in a vacuum of steel, when these were not the facts.
The complaint points out that the Radio Corporation
of America has built up valuable good-will in the letters
"R. C.A. " as applied to its products, particularly to its radio
receiving sets, radio tubes and supplies, ana that the use of
those initials is understood by the public to signify products
manufactured by that corporation and its subsidiaries.
XXXXXXXX
NAB SALES DIVISION TO HOLD TWO-DAY MEETING
The first national meeting of the Sales Managers’
Division of the NAB will be held in the Hotel Sherman, Chicago,
January 18,19.
Climaxing a series of regional meetings held by
branches of the Division, the national sessions cover a wide
range of subjects relating to sales policies of stations, rates,
discounts, merchandising and other business practices. Among
the speakers are C, W. Myers, NAB , president ; R. J. Barrett, Jr.,
Blackett-Sample-Huramert , Inc., Chicago; T. F. Flanagan, president,
Penn Tobacco Co. , and James W. Baldwin, NAB Managing Director.
Approximately 100 station executives are expected to
attend the session. The meetings will be open only to members
of the Sales Managers' Division or other station representatives
with qualified credentials.
XXXXXXXX
12
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NATIONAL BROADCASTING COMPACT ,
GENERAL LIBRARY
HeINL RAM©K®LUSiMBiSSyoJKy^TTER
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
I 1
/
INDEX TO ISSUE OF JANUARY 8, 1987.
/
20 Zone, Inter- Zone Police Stations Now Authorized..
Copyright Issue Revival Seen As Duffy Bill Reappears
RECEIVED
JAN 1 1 1933
l. Randall,
2
2
Payne Strongly Mentioned As Cruse Successor . 8
Three New Stations Authorized By FCC . 3
Gene Is Now "Mizpah - Pa"! . 4
Radio Still Trails Films In Yearly Salaries Paid . 4
38 New Stations Authorized By FCC Last Fiscal Year . 5
Drys Charged With Using Bootlet Station; Bill Hits Ads . 5
Zeh Socks Television, . , . 7
BBC Reports Small Profit For Calendar Year 1936.. . 7
F.D.R. Runs Tenth In Radio Popularity Poll . 8
World Demand For Radio Facilities Crowds Spectrum . 8
Double Radio Censorship Prevails In Holland . 9
Notes . 10
Copeland Revives; Reintroduces Food-Drug Bill. . 11
General C.C.I.R. Meeting Scheduled Jan. 21 . 11
NBC Builds Ultra-Modern Antennas For Foreign Broadcasts.,. . 12
Popularity Of Radio Growing In Mexico, U.S. Agent Finds . 12
No. 994
20 ZONE, INTER-ZONE POLICE STATIONS NOW AUTHORIZED
The Federal Comraunica tions Commission disclosed this
week that 20 zone and inter-zone radiotelegraph police stations
have been authorized as the result of an allocation of frequen¬
cies to the service last September.
Bringing police agencies of cities and States into
closer coordination in the pursuit of criminals, the 20 stations
constitute the beginning of what eventually may become a nation¬
wide network with the key station at the Justice Department's
Bureau of Investigation.
The zone stations are those which are authorized to
communicate with other oolice stations within their respective
States, while the inter-zone stations may exchange information
with adjoining States, as well as with cities in the State in
which the inter-zone outlet is located.
Practically all of the licensees so far have permits
to operate both zone and inter-zone transmitters. Among the
cities which have obtained the new police radio facilities is
Leavenworth, Kans. , where the Federal prison is located.
Others are: Atlanta, 3uffalo, Detroit, Houston,
State Department of Public Safety at Indianapolis, Kansas City,
Mo., Louisville, Mempnis, New Orleans, State Highway Patrol at
Columbus, 0., St. Louis, Cleveland, Grand Rapids, Mich., City
of Indianapolis, State of Minnesota at Redwood Falls, State
Highway Patrol at Jefferson City, Mo. , Richmond, Ind. , and
Tulsa, Okla.
XXXXXXXX
COPYRIGHT ISSUE REVIVAL SEEN AS DUFFY BILL REAPPEARS
Revival of the copyright issue that stirred up acrim¬
onious debates between members of the 74th Congress is in prospect.
Senator Duffy (D. ) , of Wisconsin, reintroduced his bill,
favored by the broadcasting industry, with slight changes, and
authors of other copyright bills are expected to resubmit their
measures momentarily.
XXXXXXXX XX
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1/8/37
PAYNE STRONGLY MENTIONED AS CRUSE SUCCESSOR
Although officials of the Commerce Department declar¬
ed that the appointment as yet had not been made, there was
every indication that John G. Payne, formerly with the Westing-
house Company, had the Inside track as successor to Andrew W.
Cruse as Chief of the Electrical Division of the Bureau of
Foreign and Domestic Commerce. In picking someone to succeed
Mr. Cruse, who resigned last month to become an Assistant
Engineer of the Federal Communications Commission, Assistant
Secretary of Commerce, Ernest G. Draper, asked various inter¬
ested industrial organizations, such as the National Electrical
Manufacturers' Association, the Radio Manufacturers' Association,
the Edison Electric Institute, and the National Association of
Broadcasters, to make recommendations as to the new man. It
is understood that most of these organizations have agreed
upon Mr. Payne.
It was said at the Commerce Department that Mr. Payne
"was about 49 or 50 years old, a business man with a technical
background and one who would have a practical approach to the
problems of the Electrical Division. "
Mr. Payne was reported to have served the Westing-
house Company as a foreign representative and to have made
export surveys for that concern. The position of Chief of the
Electrical Division of the Bureau of Foreign and Domestic
Commerce pays $5,800 a year.
XXXXXXXXXX
THREE NEW STATIONS AUTHORIZED BY FCC
The Federal Communications Commission this week granted
construction permits for the establishment of three new broad¬
casting stations. They are:
Free A. Baxter, Superior, Wis. , 1200 kc. , 100 watts,
unlimited time; Tulare-Kings Counties Radio Associates, Visalia,
Cal., 1190 kc. , 2500 watts, daytime; Eastern States Broadcasting
Corp. , Bridgeton, N, J. , 1210 kc. , 100 watts, daytime.
McNary & Chambers, of College Park, Md. , were grant¬
ed a permit for a new experimental station on 1060 kc. , 100
watts, for the purpose of experimenting with synchronizing a
booster broadcast station without the use of wire lines,
XXXXXXXXX
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GENE IS NOW "MIZPAH - PA".'
Commander E. F. McDonald, Jr. , President of the Zenith
Radio Corporation of Chicago, and Mrs. McDonald are receiving
the congratulations of the radio industry upon the birth of a
daughter. Of the happy event, the Chicago Herald- Examiner has
the following to say:
"One of the nicest cabins on 'Mizpah' , the Eugene
McDonalds1 yacht, is being turned into a nursery for the little
daughter born Saturday at Henrotin Hospital to the 'Mizpah’ s'
'skipper' and his pretty young wife.
"The little girl, who hasn't been given a name yet,
will spend the Winter 'on land' with her proud and happy
parents in their Lake Shore Drive apartment, but as soon as
'Mizpah' is out of dry dock, she will take her rightful place
as the real commander of the largest and most palatial yacht on
the Great Lakes.
"Until this Winter the McDonalns have made their home
aboard the yacht since their marriage several years ago, and
if there's anything to the theory of 'like father, like
daughter'. Miss McDonald will be more at home on the water than
on dry land. "
XXXXXXXXX
RADIO STILL TRAILS FILMS IN YEARLY SALARIES PAID
Despite the payment of large weekly salaries to big-
name entertainers for a few months of broadcasting, radio talent
is still behind the motion picture stars in the volume and
extent of salaries received over a 12-raonth period. This was
apparent in the lists of salaries made public this week by the
House Ways and Means Committee upon receipt of a report from
the Treasury Department.
Radio could produce no name that carried earnings as
much as the $480,833 listed by Mae West. In fact, the prepon¬
derant majority of entertainers who reported salaries of more
than $50,000 came from the films and stage.
The business of broa.dca sting produced one high-salaried
executive, William S. Paley, President of the Columbia Broad¬
casting System, who drew $169,097 in 1935, which was almost
double the $96,000 earned by Owen D. Young, Chairman of the
Board of General Electric. Edward Klauber, Vice-President of
CBS, got $50,269.
Maj. Edward J. Bowes, listed as Executive Director of
Edmar Enterprises, Inc., drew $135,642, and for similar posi¬
tion in the Tyro Productions, Inc., $114,357.
4
•; .
O
1/8/37
Some of the outstanding radio entertainers and their
earnings were:
George Burns and Gracie Allen, $92,000; Joe Penner,
$100,000 stage and $69,500, radio; Sigmund Romberg, the composer,
got $65,905 from radio; Rudy Vallee, $166,348; Paul Whiteman,
$242,372; Walter Winchell, radio, $77,500; A1 Jolson, $78,200;
and Victor Young, $58,701.
XXXXXXXXX
38 NEW STATIONS AUTHORIZED BY FCG LAST FISCAL YEAR
The Federal Communications Commission authorized 38
new broadcasting stations and deleted five existing stations
in the fiscal year ending June 30, 1936, its report to Congress
this week disclosed.
Out of 3,567 applications of various sorts for
improved facilities, 3,407 were granted by the FCC. These com¬
prised construction permits, licenses, modifications of con¬
struction permits and licenses, consent to voluntary assignments
of construction permits, extension of licenses, installation
of automatic frequency control equipment, special authoriza¬
tions, emergency authorizations, consent to transfer control
of corporations, and permits to locate, maintain or use studio
or apparatus for production of programs to be transmitted to
foreign stations.
There were less licensed stations in operation at the
close of the fiscal year 1936 than at the end of the fiscal
year 1927, the report shows, although the former number has
been increased since last June.
The total number of stations licensed or under con¬
struction on June 30, 1936, was 656 as against 681 in the cor¬
responding period of 1927.
XXXXXXXX
DRYS CHARGED WITH USING BOOTLEG STATION; BILL HITS ADS
A complaint that ’’organized drys" of the United States
are using a ’’bootleg" broadcasting station on the Mexican border
to disseminate propaganda in this country was filed with the
Federal Communications Commission as a bill was filed in Congress
to bar liquor advertising from the air.
The complaint came from C. D. Cecil, secretary of
the National Institute of Manufacturers and Distributors, Inc. ,
while the bill was introduced by Representative Culkin ( F. ) ,
5
A A
1/8/37
of New York. It was referred to the House Committee on Inter¬
state and Foreign Commerce.
The complaint specifically asks investigation of an
announcement by Miss Ethel Hubler, editor and publisher of "The
National Voice", of Los Angeles, Calif., of "dry" broadcasts
from Del Rio, Texas, by means of Station XERA, which is located
in Villa Acuna, Mexico, "and over approximately 60 other sta¬
tions in 30 different States. " The XERA station is operated by
Dr. John R. Brinkley, whose station, KFBB at Milford, Kans. ,
was closed by the Federal Radio Commission about six years ago
after a public hearing on charges that its broadcasts were
"inimical to public health and welfare" and the nature of its
programs conflicted with the law prohibiting the broadcasting
of "profane, obscene, or indecent" utterances.
The complaint made by the National Institute of Manu¬
facturers and Distributors, Inc. , which is an organization of
industrialists opoosed to Prohibition, contends that the broad¬
cast as announced by the "dry" publication, indicates violation
of United States Law. It quotes Miss Hublerfs statement that
her broadcast will emanate from Del Rio, Texas, and be trans¬
mitted by Station XERA, and declares:
"This announcement would indicate violation of the
Federal Communications Act of 1934 (Public Law No. 416). The
radio broadcasting station named XERA, is located on foreign
soil, at Villa Acuna, Mexico, and the Communications Act of
1934 specifically prohibits transmission of programs from the
United States to foreign stations which can be heard in the
United States.
"Further, this announcement by The National Voice
suggests that this foreign station, XERA, one of the so-called
'bootleg' stations along the Rio Grande, which, seriously
interfere with the operation of stations in the United States
licensed by your Commission, has been made an integral part of
a broadcasting chain in this country which includes 60 stations
in 30 States. "
The complaint also cites that the action of the
Federal Radio Commission in closing the station operated by
Brinkley in Kansas, was upheld by the United States District
Court of Appeals for the District of Columbia in a decision
which quoted the Biblical injunction: "By their fruits ye shall
know them. "
XXXXXXXX
6
j. . ; ^
1/8/37
ZEH SOCKS TELEVISION
Writing in the January issue of All-Wave Radio
magazine, Jah Bouck says:
"After a few rounds, television never even came out
of the corner.
"As in several past occasions, it is quite possible
that for some years to come television's most important corner
will be on the stock market. "
XXXXXXXXX
BBC REPORTS SMALL PROFIT FOR CALENDAR YEAR 1936
The British Broadcasting Corporation, which is barred
by law from broadcasting advertisements of sponsored programs,
earned a net profit of 324,161 British pounds in the calendar
year 1936, according to a BBC press release.
Every owner of a radio receiving set in Great Britain
must pay a license fee of ten shillings a year, which is col¬
lected by the British Post Office. Under the terms of the new
agreement, which became effective January 1st, the BBC will
get approximately six shillings and tenpence from each license
fee.
As there are 7,897,518 licensed receivers now in use,
the BBC estimates its 1937 income at more than L2, 500,000.
Last year its revenue, including income from publications, was
L2, 472, 572 pounds.
Expenditures were divided as follows:
Programs :
Artists, Speakers, etc.
Permanent Orchestras
Performing Rights, Copyright
Fees, and News Royalties
Program Staff Salaries
Miscellaneous
Engineering
Maintenance of Premises
Administration
Contribution to Staff Pension
Scheme and Benevolent Fund
Governors' Fees
Depreciation and Renewal of
plant and premises
Provision for Income Tax
h h
401 , 380
201,080
187,361
227,200
93,551 1,110,572
386,529
182,560
118, 898
37,537
5,207
187,000
120,108
2,148,411
324,161
L2, 472, 572
Balance
XXXXXXXX
- 7 -
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1/8/ 3 V
F.D.R. RUNS TENTH IN RADIO POPULARITY POLL
President Roosevelt, who didn't even choose to run,
outfinished such sars as "Amos 'n' Andy", Nino Martini and
Lawrence Tibbett in a national poll of radio popularity conducted
by Motion Picture Dally.
The President wasn’t the leader of this all-American
open radio artists selection, made by more than 400 radio writers
but he finished well up in the money: tenth, in fact.
While the President’s radio popularity with the radio
writers didn't measure up to his political popularity with the
people last November, it probably was greater than his popularity
with the political writers before the election.
Those who finished ahead of the President in the open
group were, in order, Jack Benny, Fred Allen, Rudy Vallee, Helen
Hayes, Eddie Cantor, Bob Burns, Bing Crosby, Fred Astaire and
Jessica Dragonette.
XXXXXXXX
WORLD DEMAND FOR RADIO FACILITIES CROWDS SPECTRUM
The problem of finding space for new radio facilities
is becoming increasingly acute, the Engineering Department of
the Federal Communications Commission stated in its report to
Congress this week.
"During the past year many new assignments were made
to stations in all parts of the world, and the problem of find¬
ing adequate space in the needed portions of the spectrum for
the United States was more difficult than at any time before",
the report stated.
"To show the tremendously rapid growth in the use of
radio frequencies during the last few years, a comparison with
the original international frequency list established by the
Berne Bureau in December 1928 is illuminating. In the original
list of December, 1928, a total of approximately 1,700 stations
were listed. Five years later the number of stations was approxi
mately 17,000, or a 10-fold increase. A rough check of the
latest list dated March, 1936, shows a total of 25,000 stations.
These figures are for stations at fixed locations and do not
include ship, aircraft, amateur, and portable stations.
"Thus it is obvious that the difficulties of fulfilling
the radio phase of the requirement of the Communications Act of
1934 for the establishment and maintenance of a rapid efficient
world-wide wire and radio communication service with adequate
facilities at reasonable charges for the public and for the pur-
8
1/8/37
pose of the national defense are becoming increasingly diffi¬
cult by reason of the lack of space in the useful radio spectrum
Detailed studies of an engineering nature are being made of the
existing facilities both wire and radio, and the advantages and
disadvantages of 'direct communication' versus 'indirect com¬
munication' are being thoroughly investigated, as well as techni
cal improvements leading to increasing the availability of space
in the 5 ether' . ,f
XXXXXXXXX
DOUBLE RADIO CENSORSHIP PREVAILS IN HOLLAND
One of the difficulties with which the Dutchman who
broadcasts a "talk", especially if that talk is topical or one
on religion or politics, is confronted is the fact that his
words are subject to the double censorship of the society which
engages him (or allows him to use its time) and of the Govern¬
ment censor, according to World Radio.
This "preventive censorship", as it is called, is
regarded, according to a correspondent in Holland, as irksome
both in its mere existence and in the manner in which it is
applied. Even the most topical of such talks must be submitted,
with eight typed copies, to the Radio Central Control Commis¬
sion three days before being broadcast, the only exceptions
being the scanty news supplied by the official Press Bureau and
descriptions, made at the time, of sporting and other public
events.
The broadcasting societies and their speakers point
out that this method makes the "topical" talks nearly a week
old before they are heard by the public and thus places the
radio reporter at a great disadvantage with the press, which,
one of such speakers points out in the weekly organ of the
N.C.R.V., "can always report and comment in the evening editions
upon what has happened the same day. 11
XXXXXXXX
Renewal of the license of WHBC, Canton, 0., and the
granting of authority to transfer the license from Edward P.
Graham to the Ohio Broadcasting Co. , and modification of the
station's construction permit, were recommended to the Federal
Communications Commission this week by Examiner Melvin H.
Dalberg.
XXXXXXXX
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1/8/37
NOTES
Among the members newly appointed to the President's
Inaugural Finance Committee in Washington are Harry Butcher,
Vice President of the Columbia Broadcasting System; Vincent
Callahan, Assistant to the Vice-President of National Broadcast¬
ing Company, and Frank M. Russell, Vice-President of NBC. John
Littlepage, radio counsellor, has been appointed Vice-Chairman
of the Committee.
J. E. Smith, President of the National Radio Institute,
Washington, and E. R. Haas, Vice-President, are listed as receiv¬
ing salaries of $20,000 each in the Treasury salary reports made
public by the House Ways and Means Committee.
A "Reuter" message states that a powerful ultra-short'
wave television station is now being built in Moscow. The new
station will have an aerial nearly 490 ft. high to insure recep
tion of pictures within a radius of 30 to 40 miles. Transmis¬
sions are expected to commence during next Summer.
The much-postponed hearing on the Brooklyn cases was
postponed again by the Federal Communications Commission until
March 18, 1937.
Issuance of a permit for construction of a new broad¬
casting station at Sweetwater, Texas, to operate on 1310 kc. ,
with 100 watts power, daytime, was recommended to the Federal
Communications Commission this week by Examiner H. Hyde,
Andrew G. Haley, Federal Communications Commission
attorney for the last year assigned to Telegraph Division legal
work, has been reassigned to the Broadcast Division under
Assistant General Counsel George B. Porter, and will be detail¬
ed to hearing work.
The British Broadcasting Corporation, a government
monopoly, has announced that Lieut. Col. R. S. H. Stafford,
recently appointed to its staff, was engaged in preparations
"for action to be adopted in event of war. " The announcement said
his work is being carried on in conjunction with several govern¬
ment departments, as part of a "long range plan" to utilize radio
facilities in a national emergency,
XXXXXXXX
10
1/8/37
COPELAND REVIVES? REINTRODUCES FOOD-DRUG BILL
Of interest to broadcasters is the Copeland Pure Food
and Drug Bill which was reintroduced this week in the Senate by
its author in somewhat changed form.
Senator Copeland's program and also a measure which
is backed by Representative Chapman, of Kentucky, now both pro¬
pose to give control of advertising of the products to the Food
and Drug Administration. The bill which passed the House last
June gave this authority to the Federal Trade Commission. ""he
Senate bill reposed the control in the ^ood and Drug Administra¬
tion. This clash was one of the chief reasons the bill died in
conference between the two Houses.
The term "advertisement" is newly defined in the Cope¬
land bill. It now "means all representations of fact or opinion
disseminated in any manner, or by any means, other than by the
labeling, for the purpose of inducing, directly or indirectly,
the purchase of food, drugs, devices or cosmetics."
Senator Copeland explained, in a statement, the treat¬
ment of advertising under the revised bill, and alluded to the
controversy over which agency should exercise control.
"The controversial subject of control of advertising
has been met by providing for the prohibition of false advertis¬
ing by injunction", the New York Senator said. "The bill also
states differently the offense of false advertisement. Previous
bills have defined false advertisements as those which are 'false
or misleading in any particular. '
"That definition has occasioned no end of controversy -
some of it quite meritorious - on the ground that when applied
to the unlimited field of advertising it was too elastic and
encompassed things far beyond the purposes of the bill. Also it
would lend itself to unnecessary and unjustified governmental
interference, and impose upon the government a job far beyond the
government's financial and personnel capacities to enforce."
XXXXXXXXXX
GENERAL C.C.I.R. MEETING SCHEDULED JAN. 21
A general meeting of the Committees preparing for the
Fourth Meeting of the C.G.!.15. will be held in the offices of
the Federal Communications Commission, Room 1413, New Post
Office Building, Washington, D. C. on January 21, 1937 at 10 A.M.
At this meeting consideration will be given the United States con
tribution as centralizing administration on Question 4, "Separa¬
tion in kilocycles per second to be maintained between two broad¬
casting stations", and certain additional material to be sub¬
mitted on Question 1, "Principles in the study and development
of receiver selectivity curves. "
XXXXXXXXXXX
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1/8/37
NBC BUILDS ULTRA-MODERN ANTENNAS FOR FOREIGN BROADCASTS
Two new and elaborate directional-beam antennas, under
construction for several weeks at NBC’s short-wave transmitting
station, W3XAL, Bound Brook, N. J. , are rapidly nearing comple¬
tion and one of them, for South and Central America, is expected
to be placed in operation on January 15. The other directive
antenna, for transmissions to Europe, will be ready for use cn
or about February 20.
In addition to the directional-beam antennas, NBC is
building new and improved non-direc tional systems for service to
points other than South America and Europe. All of the new
equipment occupies approximately twenty-five of the fifty-five
acres belonging to WJZ, key station of the NBC-Blue Network at
Bcund Brook.
The addition of the directional-beam antennas will
insure much finer service and reception of NBC programs in those
countries upon which the force of the wave beam is directed.
XXXXXXXXXX
POPULARITY OF RADIO GROWING IN MEXICO, U.S. AGENT FINDS
Interest in radio in Mexico has shown a progressive
increase in recent years, according to a report to the Commerce
Department from the American Commercial Attache at Mexico City.
Imports of receiving sets and parts into the Mexican
market during the year 1936 are expected to exceed 6,000,000
pesos ( Si, 600 ,000) . Approximately 99 percent of these imoorts
originate in the United States, the report points out. While
some American manufacturers ship fully assembled radios to Mexico,
most prefer to ship chassis, cabinet and loud speaker for local
assembling.
It is estimated that at the present time there are
250,000 radio receiving sets in use throughout Mexico, approxi¬
mately 120,000 of which are in Federal District. Approximately
5 percent of the total represents battery sets. The great major¬
ity of the sets in use in the Republic are capable of receiving
local programs only, although the popularity of all-wave sets
is growing and there is an increasing interest evident in recep¬
tion of United States programs.
There are 90 broadcasting stations in Mexico, according
to latest reports, of which 75 are commercial stations, 2 cultural
stations, and 11 official stations. According to law a license
to operate a commercial station in Mexico is granted only to
Mexicans or societies or corporations organized under the laws of
Mexico. Licenses for the operation of cultural stations may be
extended to either a Mexican or a foreigner, according to the
report.
XXXXXXXXX
- 12 -
Heinl Rad ioatBmsinbssg Letter
2400 CALIFORNIA STREET
GENERAL LIBRrtr</WASHINGT0N D c
30 ROCKEFELLER. PLAZA, NEW YORK, N, Y.
C O N F I D E N T 1 A L — Not for Publication
1 tS .
H i" 0 t * v h lj
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jhN ‘^3
WAY T'iC. L. KAi 'i l/aLL
INDEX TO ISSUE OF JANUARY 12, 1937.
CP For 1,000-Watt Capital Station Recommended For Dill . 2
Wheeler Asks FCC Views On Newspaper Curbs . 4
Payne Renews Attack On Washington's "Radio Lobby" . 5
WLW Broadcasts Held Valuable By FCC . 6
U. S. Long-Wave Stations Are Heard In Great Britain . 7
FCC Engineering Report Held Up For Revisions . ..7
Famous Publisher Keeps Up With Radio Procession . . . 8
Farnsworth Television Broadcasts To Begin Soon . 8
Bar Group Urges Ban On Court Broadcasts . 9
Six Problems Stand In Way Of Television's Debut In U. S . 9
Two Radio Dealers Sign FTC Stipulations . 10
Industry Notes . 11
Rockefeller Fellowship Granted For Radio Study . 12
Schwank Heads New RCA Manufacturing Division . 12
Ex-Aide To Lohr Will Head NBC Television . 12
No. 995
€
January 12, 1937,
CP FOR 1,000-WATT CAPITAL STATION RECOMMENDED FOR DILL
Former Senator Clarence C. Dill, who now practices law
in Washington, this week cleared the first hurdle in the race
for a new broadcasting station in the National Capital. Examiner
John P. Bramhall recommended to the Federal Communications Commis¬
sion that his application for a construction permit to operate a
station on 1390 kc. , with 1 KW power, unlimited hours, be granted.
Four other applicants are seeking broadcasting facil¬
ities in Washington although only three have filed applications.
They are Eugene Meyer, publisher of the Washington Post; the
Continental Radio Co. , subsidiary of the Scripps-Howara News¬
papers, which publish the Washington Daily News ; Hearst Faaio,
Inc. , which is associated with the Washington Herald and Times;
and William Dolph, who was in charge of radio relations for the
Democratic National Committee during the recent presidential
campaign.
Hearst has been trying to buy Station WMAL, in Washing¬
ton, while the other applicants are seeking new stations.
The granting of the Dill application, it is believed,
would close the door against the other applicants for the time or
until other frequencies are made available for broadca sting.
Examiner Bramhall points out at the beginning of his
report that while former Senator Dill "has had no experience in
the actual operation of a radio station" that he was co-author of
the Radio Act of 1927 and was socnsor of other important radio
legislation while a member of the Senate and on the Interstate
Commerce Committee.
"In 1934, as Chairman of the Interstate Commerce Com¬
mittee of the Senate, he helped to prepare the measures which
afterwards became known as Communications Act of 1934", the report
states. "His interest in radio, however, was not limited to the
legislative phase of that subject but he traveled extensively
both in America and Europe investigating the operation of radio
and particularly the type and character of programs. This gave
him a wide perspective upon the subject of radio. He now desires
to give the listening public the benefit of his experience and
study of radio by engaging in the operation of a broadcast sta¬
tion featuring programs not now received in the area proposed to
be served and by contributing something to the radio art.
"Applicant gave in his application filed with the
Commission the following estimate with respect to the cost of
the station.* Transmitter, $12,000; studio, $2,000; land and
2
....
1/12/37
towers, $10,000. At the hearing he revised this estimate by-
increasing it $5,000. He also gave as cash set aside for sta¬
tion construction should this application be granted, $30,000.
This sura, however, has been increased to $35,000 cash in bank
for station construction and is immediately available.
’’Applicant expects to employ an experienced progres¬
sive staff should this application be granted, consisting of a
station manager, program director, engineers, announcers, con¬
tinuity writers, reporters, a sales force, talent and such other
assistance as may be necessary to properly operate the station.
Applicant also expects to participate actively in the manage¬
ment and operation of the station, having in mind the develop¬
ment of new departures from the present day programs. At the
present time there are no new ideas and few, if any, recent
advancements in the matter of radio programs or their presenta¬
tion as now received by the listening public in Washington.
"Washington has a vast array of talent for program
material in radio work, much of which is already trained for
broadcasting. In the musical world the talent ranges from
sacred and classical to popular music, both vocal and instru¬
mental. Washington has a very large number of musical academ¬
ies and musical instructors thus affording a wide field of
talent that may be developed for radio broadcast service. This
is aside from a large number of artists in this work who are
already trained and available.
"Program material in Washington, according to testi¬
mony, is not limited to the field of music but, because of the
fact that Washington is the capital of the nation, many people
with rare ability are attracted to the city. The field of
science and fine and apolied arts are available as program
material for a radio station. Little or no attention has here¬
tofore been paid to this particular type of program in this
area. Applicant also proposes personally to arrange for
lectures by men from foreign fields, particularly diplomats
respecting their country, its government, and the habits and
industries of their people. This type of program is intended
for the public schools of the district. Applicant has already
contacted the heads of the schools of the district with refer¬
ence to radio programs and was advised that the schools are
well equipped for the reception of radio programs but up to
date programs of the character that are adaptable to the school
room have been few. It is also proposed that a special program
be rendered daily during sessions of Congress keeping the public
advised as to the progress of the measures before Congress with
suitable comments on pending legislation.
"It is also proposed by the applicant in this program
to give time to a religious organization which has heretofore
never appeared on the air, the Adventist Church. This sect
conducts one of the largest sanatariums in this section of the
country and will be in a position to render excellent programs
both on the subject of religion and health. "
3
t;
\
v
1/12/37
The Examiner admits that four stations are located
at less than the recommended separation from the assignment
requested by Mr. Dill. They are: WHK, Cleveland, on 1390 he.;
KLRA, Little Rock, 1390 kc. ; WCBM, Baltimore, 1370 kc. ; and
KQV, Pittsburgh, 1380 kc.
He comes to the conclusion that no interference will
occur by reason of this congestion in the daytime but that
some trouble may be expected at night.
The applicant proposes to install a directional
antenna at the transmitter plant in Bethesda, Md. , and to equip
studios in Washington.
XXXXXXXX
WHEELER ASKS FCC VIEWS ON NEWSPAPER CURBS
Apparently proceeding with his proposal to draft
legislation aimed at curbing newspaper control of broadcasting
stations, Senator Wheeler, of Montana, Chairman of the Senate
Committee on Interstate Commerce, has addressed two letters
in the name of the Committee to Anning 3. Prall, Cha.irman of
the Federal Communications Commission. The letters ask informa¬
tion concerning the ownership and control of broadcasting chains
and the number of newspapers owning and operating stations.
The Senator asked also for an opinion by FCC counsel
"on the question as to whether or not the Commission has the
authority, at the present time, to deny an application of a
newspaper for radio facilities on the ground that it is against
public policy. "
He further asked that FCC counsel inform his Committee
"whether, if the Commission has not such authority at the pre¬
sent time, legislation could be passed denying the right of
newspapers to acquire them in the future, and requiring all
newspapers within a reasonable time to divest themselves of the
ownership and control of such radio stations. "
XXXXXXXXXX
In November, the National Broadcasting Company picked
up broadcasts from 26 foreign countries - from Poland to the
Honduras, from Austria to Chile, ^atvia to Salvador, In all,
foreign broadcasts during the month consumed 12 hours and 36
minutes - just tripling the time devoted to such programs in
November of last year (1935),
XXXXXXXXXX
4
-\
i V
X
1/12/37
PAYNE RENEWS ATTACK ON WASHINGTON’S "RADIO LOBBY"
Renewing his attack on what he terras "Washington's
radio lobby", Commissioner George Henry Payne this week in an
address at Harvard University asserted that absorption of
"short-wave facilities which belong to the United States
government" would constitute "a public scandal redolent of the
Teapot Dome* "
The Commissioner said that he has documentary evi¬
dence to prove the charge that this "lobby" is attempting to
take away from the government the five short-wave frequencies
set aside for the Pan American station but never utilized.
Recalling an address he made a year ago at Syracuse
University, Payne said that "certain unscrupulous and misguid¬
ed captains of industry were attempting to block the entire
project, even though they recognized its great importance from
a national standpoint, merely because at some later date it
might be looked upon as the entering wedge for the government
operation of all broadcasting."
He recalled that an executive order had been issued
by the President allocating the short-wave frequencies for the
Pan American station, that the Berne Bureau had been notified,
and that an engineering survey had been made. There the pro¬
ject apparently has ended.
"I am sorry to say this morning that my fears were
fully justified", the Commissioner said, "and that not only
have these same interests continued to block the development
of this essentially American project, but actually within the
last few months a vicious attempt has been made to take over
from the Government these precious five frequencies which were
allocated for this service by Executive Order of the President,
to take them over for commercial operation on the spacious plea
that since little progress had been made in the development of
this project by the Government itself, it is now necessary for
private interests to operate stations on the frequencies, in
order to protect the use of these frequencies for the United
States as a whole.
"It is hardly necessary for me to point out to you
that the very people who are urging this are the ones who have
been opposing the project all along, and who, until the present,
have effectively succeeded in sabotaging it.
"I have complete documentary evidence to support all
this, including the names of the persons and the organizations
involved. I hope that it will not be necessary to wash all
this dirty linen in public, and I am refraining from saying any
more at this time, because I know that steps are being taken in
the very highest administration circles to clear away all this
barrage of interference and start immediately operation of the
5
project. I mentioned it, however, to point out the dangers to
our American system of Government of the sort of insidious back¬
door lobbying of the type which led to such scandals as Teapot
Dome .
"Unless constructive steos are taken by the industry
itself to clean up some of the flagrant violations of public
confidence and support, Congress itself will be obliged to take
an active hand in the matter.
"One of the first steps in the development of a
national policy, particularly a policy dealing with our foreign
friends, is the construction of a national broadcasting station
owned and controlled solely by the United States. Every other
nation in the world has such a station.
"Every other nation in the world is prepared to defend
itself over the air from the attack of foreign or unfriendly
agencies.
"Every other nation in th.e world is prepared to see
that the world understands its point of view - and yet this
nation, where the greatest development of radio has taken place,
is absolutely without control over the commercial interests
within its own borders and outside of its borders is at the
mercy of every propagandizing nation.
"We ought to have a station through which the Presi¬
dent of the United States could speak to the world, particularly
at this time of world unrest and stress."
XXXXXXXX
WLW BROADCASTS HELD VALUABLE BY FCC
The experimental operation of the country's most
powerful radio station is providing the FCC Engineering Depart¬
ment with valuable technical information, the Commission says
in its annual report.
"As a result of the continued operation of Station
WLW, Cincinnati, Ohio, on 700 kilocycles, with special experi¬
mental authority to operate with a power output of 500 kilo¬
watts during regular broadcast hours", the FCC says", consider¬
able additional information concerning the effectiveness of this
high power in serving the rural listener and the listener locat¬
ed in small urban centers remote from other broadcast service
has been obtained. The use of a directional antenna at night
to prevent interference to CFRB has been continued, and the
effect upon the service rendered by the station appears to be
slight.
"The results of the postcard questionnaire section of
the allocation survey made by the Commission indicated that the
first choice of the listeners in 15 States was WLW. In addi¬
tion, ’WLW was the second choice of listeners in 6 mere States. "
XXXXXXXX -6-
1/12/37
U. S. LONG- WAVE STATIONS ARE HEARD IN GREAT BRITAIN
American long-wave broadcasting stations are heard
with "good volume, nearly every night", according to a corres¬
pondent of Wo rid- Radio, BBC journal, who notes at the same time
that reception from this hemisphere isn’t as good this Winter
as last, probably because of increased sun spot activity.
"However, the listener who happens to be up after mid¬
night can switch on the receiver with a reasonable chance of
striking a gooa-night for American stations", he adds.
"Each of the four principal United States' networks
includes a station heard with good volume in Great Britain.
Probably the loudest and most reliable are: WCAU, Philadelphia
(CBS), 256.3 m. ; WTIC, Hartford, Connecticut (NBC Red Network),
288.3 m. ; WBZ-WBZA, Boston and Springfield, Massachusetts (NBC,
Blue), 302.8 m. ; and WOR, Newark, New Jersey (Mutual Broadcast¬
ing System), 422.3 m. At times, WBZ-WBZA suffers severe inter¬
ference from LR4, Buenos Aires, and WJZ, New York City, 394.5 m. ,
may be found to be a clearer if weaker NBC (Blue) outlet*
"Other high-powered stations easy to receive include:
WPG, Atlantic City, New Jersey (CBS), 272.6 m. ; WBT , Charlotte,
North Carolina (CBS), 277.6 m. ; WHAM, Rochester, New York (NBC,
Blue), 260.7 m.; WABC, New York City (CBS), 348.6 m. ; and WEAF,
New York City (NBC, Red) , 454.3 m. WPG broadcasts a high per¬
centage of non-network programs, and WBT, to a smaller extent,
does likewise.
"Several transmitters rated at only 500 watts or 1 KW
are receivable almost as regularly as the more powerful sta¬
tions. The following are some of them: WNAC, Boston, Massa¬
chusetts, 243.8 ra. , belongs to the CBS chain, in addition to
being the key station of the Yankee Network, a group of New
England stations, which, it is reported, WTIC joins when not
transmitting NBC programs. Another Boston CBS outlet is WAAB,
212.6 m. This station is also a member of the Colonial Network,
a New England chain affiliated to the Mutual Broadcasting
System. ”
XXXXXXXXXX
FCC ENGINEERING REPORT HELD UP FOR REVISIONS
The preliminary report of the Engineering Department
of the Federal Communications Commission, based on the broadcast
hearing held last October, has been held up for revision, it
was stated at the FCC offices this week.
The report, which was expected to be submitted to the
Commission promptly upon its return from the Christmas vaca¬
tion, is expected to contain recommendations as to super-power
stations, clear channels, and reclassification of stations.
XXXXXXXX
- 7 -
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1/12/37
FAMOUS PUBLISHER KEEPS UP WITH RADIO PROCESSION
The increase in power of WHIO, of Dayton, and the
installation of the latest 5000 watt RCA transmitter is further
evidence of how former Governor James M. Cox, of Dayton, Ohio,
ana once Democratic presidential candiaate, publisher of the
Da.vton Daily News and the Springfield News and Sun, is success¬
fully applying radio to the newspaper business.
Associated with Governor Cox is his son, James M.
Cox, Jr. They were the first station to broadcast the proceed¬
ings in a traffic court, which program is still on the air; the
county, sectional and State basket-ball tournaments; the Dayton
Ducks' ball games; the circuses which appeared there (both
sponsored and with pack transmitter, interviewed side-show
attractions); the first to describe major holiday and convention
parades; the Soap Box Derby, which originated in Dayton; the
Cincinnati Reds Baseball games, which were relayed to WPAY; The
Dayton Speedway dirt track races; and other important civic
events.
To boost the opening of the Tarzan of the Apes series
on the station, they gave a Tarzan movie preview which attracted
15,000 children - and two squads of police to keen order.
XXXXXXXX
FARNSWORTH TELEVISION BROADCASTS TO BEGIN SOON
Television for reception by engineers and amateur
experimenters in the Philadelphia area is to be put on the air
within two weeks by the Farnsworth Television Corporation.
From a new studio and transmitter atop the highest
part of Chestnut Hill, six miles from the center of Philadelphia
an attempt will be made to cover the city with image waves of
441-line definition, according to George Everson, representative
of the organization. The site was chosen to ascertain if it is
easier to supply an urban area with images from a suburban sta¬
tion, rather than with a transmitter atop a high city building.
The wave length will be about 4.70 meters (62.75 megacycles),
and the power 4 kilowatts.
Telepictures comprising 2,500,000 cycles will be relay
ed over a coaxial cable from the studio to the transmitter, a
distance of two city blocks.
XXXXXXXX
8
1/12/37
BAR GROUP URGES BAN ON COURT BROADCASTS
Asserting that the nation's courts have been subject¬
ed to "increasing public censure for indecorum in the conduct
of their sessions", the Judicial Section of the American Bar
Association, headed by Chief Justice Carl Weygandt of the Ohio
Supreme Court, recommended at a Columbus, 0,, meeting last week:
"That no court permit its sessions to be interrupted
by broadcasting or by taking photographs or moving pictures."
XXXXXXXX
SIX PROBLEMS STAND IN WAY OF TELEVISION'S DEBUT IN U.S.
Six problems remain to be solved before television
may enter the American home, according to Albert F. Murray,
Chief Television Engineer for the Philco Radio &. Television
Corporation, Philadelphia.
The problems are:
1. The next major step to be taken by the active workers
in the field will be the conversion of transmitters to radiate
441-line signals in accordance with the recent adopted Radio
Manufacturers' Association's television standards.
2. Technical standards for television transmission will
have to be approved by the Federal Communications Commission,
so that any receiver will receive from any transmitter within
range .
3. The present limited range of television, averaging about
twenty-five miles, will have to be increased. Key cities, such
as New York, San Francisco, Philadelphia, Washington and Boston,
will have television first.
4. Before we have commercial television the government
will have to issue commercial licenses suitable for television -
that is, in the 42-90 megacycle band.
5. A source of programs must be developed. In putting on
a short sketch by television more is required in the way of
costumes, rehearsals and stage properties than for any other
known entertainment field. Actors can no longer read their
scripts. Both appearance and voice are necessary for the tele¬
vision star. The problem of giving the American people television
programs 365 days a year assumes staggering proportions, as far
as personal energy and finances are concerned.
6. Deduction of cost of television receivers. Home rec¬
eivers which will produce pictures of a quality equal to home
movies, but smaller in size, probably will cost more than any of
us care to pay. In England there is no great rush to buy tele¬
vision receivers now selling for from $500 to $600.
XXXXXXXX
- 9 -
1/12/37
TWO RADIO DEALERS SIGN FTC STIPULATIONS
Two Washington, D. C. retail radio dealers have enter¬
ed into stipulations with the Federal Trade Commission to dis¬
continue unfair trade representations in the sale of their
products. The principal practice barred under the stipulations
is the use of certain well known trade names in the radio manu¬
facturing industry to designate products not made by the com¬
panies represented by such names.
Henry I. Scott, 1716 Pennsylvania Ave. , N.W. , trading
as Gordon’s Radio Shop, in his stimulation, agrees to stop
using as a trade name or brand for his products, the word
"Majestic", either alone or in connection with "International"
or other words so as to imply that these articles are made by
Majestic Radio and Television Corporation of Illinois, successor
to Grigsby- Grunow Co., of Chicago, original manufacturer of
"Majestic" sets.
Scott also agrees not to use the word "Victor" alone
or in conjunction with "International" so as to imply that the
products so designated are made by RCA Victor Co. , Victor
Division of the RCA Manufacturing Co. , when such is not a fact.
Metropolitan Radio Co., Inc., 940 F St., N.W. , will
also cease a similar use of the designations "Majestic" and
"General Electric", and also of the word "Sparta", or any other
colorable imitation of the word "Spartan", alone or in conjunc¬
tion with "Junior Universal", or with other words, so as to imply
that sets so branded are made by The Sparks- Withington Co. of
Ohio, when this is not a fact.
The sets so designated by each dealer were not the
products of the well-known companies named, according to the
stipulation.
The Metropolitan Radio Co. , Inc. , will also cease use
in advertising of the word "metal" to describe radio tubes so as
to imply that they are those products which have become known to
the trade and purchasing public as "metal" tubes in which the
technical elements are sealed in a vacuum in steel and in which
the metal functions instead of glass, when such is not a fact.
XXXXXXXXX
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1/12/37
INDUSTRY NOTES
WOR, New York, will ODen a Chicago office February
1st, to handle time sales for the station in the Chicago area
and Middle West, according t c announcement by Alfred J. McCosker,
President of the station.
P. J. Barrett, Jr. , who has had wide experience in
sales, advertising and radio work, will be in charge of the
Chicago office which will be located in the Tribune Tower. Mr.
Barrett, who attended the University of Illinois, has been radio
buyer for Blackett-Sample-Hummert , Inc.
A suit for $25,000 and an injunction was filed last
week in Federal Court, New York, by Time, Inc., publishers of
Time magazine and the monthly motion picture, ’’The March of
Time", against "The Voice of Time", 1 Park Place, New York City,
a radio broadcast enterprise, charging trade-mark infringement
and unfair trade practices.
Taking fullest advantage of the advertising possibil¬
ities, Station WON, of Chicago, now carries a half-tone of the
beautiful new Chicago Tribune broadcasting station on the envel¬
opes of all letters written by the station.
Studios and offices of radio station WOL, Washington
affiliate of the Mutual Broadcasting Co, last week were moved to
new quarters at 1726 K Street, N. W.
Misrepresentation of the effectiveness of a medicinal
preparation called "Zo-^o-Lo" is alleged in a Federal Trade
Commission complaint issued against Zo-Ro-Lo, Inc. of Ada, Ohio.
The respondent was the user of radio advertising.
A favorable report on the application of A. Frank
Katzentine, of Miami Beach, Fla. , for a construction permit to
erect and operate a broadcasting station on 1500 kc. , with 100
watts power, unlimited time, was filed with the Federal Communi¬
cations Commission this week by Examiner John P. Bramhall.
xxxxxxxxxx
11
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ROCKEFELLER FELLOWSHIP GRANTED FOR RADIO STUDY
A fellowship for observation and training in network
procedure at the National Broadcasting Company studios in Radio
City, New York, has been granted to Allen Miller, head of the
University Broadcasting Council of Chicago, by the General Educa¬
tion Board, a Rockefeller Foundation.
The fellowship, which becomes effective on January 15th,
was granted under an extension of the successful arrangement by
which university students and representatives of university
broadcasting stations were assigned by the General Education
Board to the National Broadcasting Company for study last Fall.
This study included a month's work at an NBC branch station and
five months' work in NBC's Radio City studios.
XXXXXXXX
SCHWANK HEADS NEW RCA MANUFACTURING DIVISION
Mr. J. L. Schwank, for more than 20 years with Atwater
Kent, is now head of the Engineering Products and International
Divisions of the RCA Manufacturing Co. , Inc. , at Camden.
Mr. Schwank began his career with the Philadelphia
Electric Company, and remained there fourteen years, seven of
which were spent as Chief Test Officer in the laboratory, and
an additional seven in the operating engineering department.
In addition to being an engineer, Mr. Schwank studied
law and was admitted to the Patent Bar.
XXXXXXXX
EX-AIDE TO LOHR WILL HEAD NBC TELEVISION
C. W. Farrier, architect and engineer, prominent among
those putting over the Chicago World's Fair and at present in an
important post in the TVA, with headquarters in Nashville, has
been appointed by David Sarnoff to take full charge of NBC tele¬
vision, according to a report from Chicago. When with the Chicago
Fair, he held the title of assistant to Lenox Lohr, in charge of
special events.
Mr. Farrier will resign the TVA post January 16th,. with
his new appointment taking effect January 25th, the report stated.
XXXXXXXXX
12
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national broadcasting company,
Heinl Radiq
2400 CALIFORNIA STREET
Better
WASHINGTON, D. C.
C O N F I D E N T I A L — Not for Publication
vtu
JAN 16 1222
WA/ni£ L. RANDALL
INDEX TO ISSUE OF JANUARY 15, 1937
FCC Engineering Report Urges
Modernization,
No Radical Changes.. 2
Copeland Reintroduces Bill Controlling Radio At Sea . 7
Connery Demands Broad Radio And FCC Investigation . 8
FCC Asks $350,000 To Continue Telephone Inquiry . .8
Radio Administration Seen Returning To Commerce Department . 9
Frank Arnold Heads RCA Institutes' Technical Press . 9
Payne Succeeds Cruse In Commerce Department Post . 10
Network Billings Near $60,000,000 For Last Year . 10
Westinghouse Stations Form New Corporation . 10
New Station For Richmond, Va. , Is Authorized . 11
La Guardi a Seeks Non-Commercial Network . . . 11
Zenith Votes 50 Cents A Share For Third Quarter.. . 12
Competition Intense In Cuban Radio Market . 12
No. 996
FCC ENGINEERING REPORT URGES MODERNIZATION, NO RADICAL CHANGES
Establishment of six classes of broadcasting stations,
retention of at least 25 clear channels for exclusive use of high
power stations, a minimum power of 50 KW for clear channel out¬
lets, and general modernization of Federal Communications Commis¬
sion engineering regulations are proposed in a voluminous report
submitted to the Commission this week, by its Engineering Depart¬
ment.
Based on the October broadcast band hearings, the
"preliminary” report suggests no radical shake-uo in the present
broadcasting system. On some of the more controversial issues,
such as the advisability of setting up more super-power stations
like WLW, Cincinnati, the department asks for further instructions
in view of the economic factors involved.
In its recommended classification of stations, the FCC
engineers make provision for higher power all along the line but
leave the Commission free to act in each individual case by sug¬
gesting a wide range in power for each class of transmitters.
The report has not been acted upon by either the Broad¬
cast Division or the full Commission. A supplementary report will
be submitted shortly covering the economic and social factors in¬
volved in the allocation of broadcasting frequencies, T.A. M.
Craven, Chief Engineer, stated in the preliminary report.
Commander Craven asked the Commission not to make any
final decisions before seeing the supplementary report.
The general conclusions of the FCC engineers, together
with a summary of their recommendations, follow:
"In general, based upon the evidence given at the hear¬
ing, the Engineering Department is of the opinion that from an
engineering standpoint the existing system of allocation of fre¬
quencies within the broadcast band 550-1600 kc. which was inaugu¬
rated in 1928, is sound, particularly with reference to the
fundamental 10 kc separation between channels and the use of both
clear channels and shared channels to render service to the
nation. However, in view of the information which has been
accumulated since 1928, and in view of technical improvements as
well as an increasing demand for better facilities, there is need
for an improvement in the engineering features of the structure
as well as in some of the standards of engineering practice which
have been followed hitherto.
2
1/15/37
"In making this report the Engineering Department
desires to make clear the fact that we have not endeavored to
determine who should or should not be the licensees of radio sta¬
tions, because this is primarily a matter of policy which the
Commission will decide for Itself. Our thought on this subject
of allocation has been prompted primarily from the standpoint o^
sound engineering, and to this end we have made it our mission to
ascertain how to make the best technical use of the very limited
radio spectrum between 550-1600 kc so that the entire public may
receive the maximum service both of transmission a.nd reception,
regardless of who may be the licensees of the various transmit¬
ting stations. In other words, we have felt that if the basic
allocation engineering within this limited spectrum were such as
to make possible the greatest number of stations properly dis¬
tributed geographically, and each capable of rendering technically
a good service to the public, there would be made available in
all sections of the country the maximum possible fa.cilities for
the Commission to license or to continue to license whomever it
feels should and could operate stations. "
"Following is a summary of the Engineering Department's
conclusions, recommendations and requests for instructions with
respect to the broadcast band 550-1600 kc :
"(1) We believe that while the engineering principles
of the allocation structure of 1926 are basically sound, techni¬
cal progress, operating practice and the accumulation of new
data since 1928 indicate conclusively that modifications are
needed and that improvements can be made which, from a technical
standpoint, will result in better broadcasting service to the
public. We recommend that these modifications be made by revis¬
ing the existing rules, regulations and standards of good engineer
ing practice.
"The Engineering Department's proposals for modification
would not change the 10 kc separation between channels, nor would
it change fundamentally the conception as to the use of both
clear channels and shared channels to render service to the nation
In the latter respect the recommendations tend toward the modifi¬
cation of the number of frequencies made available to each class
of station.
"(2) As to the general procedure for making modification
of the allocation structure, we believe and recommend that the
Commission should continue its existing policy of evolution and
experimentation through voluntary action of applicants rather than
by enforced costly radical changes. The reasonableness of the
details of any of the new rules and regulations could well be the
subject of formal hearings after due notice is given of the
effective date of the new rules. Applicants desiring to take
advantage of the improvements made possible by the new rules
might have their applications granted or designated for hearing,
depending upon the facts in each individual case. In any event,
the present prescribed legal procedure of the federal Communica¬
tions Commission could be maintained.
- 3 -
1/15/37
"(3) We recommend that the new rules be inherently flexible
so as to permit practical adaptation of sound engineering to
individual cases in accord with economic and social needs.
"(4) We suggest for consideration by the Commission the use
of ultra high frequencies to assist in the solution of the ecuca-
tional broadcast problem.
"(5) We recommend six classes of broadcast stations in the
band 550-1600 kc with powers as outlined in the following. The
exact definitions will be submitted later by the Law and Engineer-
ing Departments, provided
the general policies
herein
are approved
Class Comparison
Purpose
Night
Power 1/
A Similar to clear
channel stations
To include remote
rural coverage
Not less than
50 kw
B 2/Similar to clear
channel stations
except other sta¬
tions use channel
so as to protect
secondary coverage
dominant station.
To include rural
coverage
10 to
50 kw
C Similar to high
power regional
stations
Large metropolitan
district coverage
as well as limited
rural coverage.
5 to
50 kw
D Similar to reg¬
ional stations
Metropolitan dis
trict coverage.
1 to
5 kw
E Similar to exist¬
ing regional sta¬
tions separated
by relatively
short distances
City coverage
. 5 to
1 kw
F Similar to local
Stations
■ City or town
coverage
0.1 to
0.25 kw
1/ The power for each station of a class is to be determined
individually upon showing of need and proper consideration of
channel conditions with respect to interference.
2/ The class of stations which will use the same channel as Class
B stations and protect the latter's secondary coverage, are in
general Class D or Class E stations, located at sufficient
distance from Class B stations to enable proper service to be
rendered in accordance with the standards of good engineering
practice. It may be possible in some instances to permit
Class C stations to use Class B stati-on channels.
4
•’V
1/15/37
"(6) We request the Broadcast Division to designate which
frequencies should be assigned to each class of station. In this
connection we are ready to submit a separate memorandum setting
forth the conditions existing on each frequency. This separate
memorandum will assist the Division in designating frequencies
to be assigned each class of station. We recommend that the
following number of channels be assigned to the various classes
of stations in the band 550-1500 kc. :
Class ^Number of channels
A Not less than 25
B Approximately 5
C » 14
D " 30
E " 10
F " 6
Total 90
*The foregoing numbers exclude the frequencies now assigned exclu¬
sively to Canada,
"With reference to the band 1510-1600 kc. , we suggest that
the Commission has three courses of action open to it, depending
upon which policy the Commission desires to follow:
"1. To assign all 10 channels in the band 1510 to 1600 kc. to
Class F stations. In our opinion, while this provides the
maximum number of stations, it does not in all cases provide
a facility which will enable service to be rendered to all
of an area requiring service.
"2. To assign all 10 channels to Class D stations. This would
permit only a few of the cities which do not now have a sta¬
tion to secure facilities. It would, however, in the rela¬
tively few individual cases afford a facility capable of per¬
forming an adequate service to a large community,
"3. To distribute the 10 channels to Class D, E and F stations.
This would enable a large number of cities to be served and
at the same time permit a degree of flexibility in utilizing
facilities in a manner which may be required in individual
cases. A division such as 3 channels to Class D, 4 channels
to Class E and 3 channels to Class F might be suitable, or
else 3 channels to Class D and 7 channels to Class E, in
which the power range may be more suitable for individual
areas, would be an effective engineering solution to the
problem. Instructions in this matter are requested.
"(7) We recommend that when the Commission is satisfied a
frequency assigned to one class of station has been utilized to
the fullest and proper extent by stations of such class, that
stations of another class be permitted to use the said frequency,
provided the latter does not cause objectionable interference,
5
I - ;
1/15/37
either to the good coverage of any station regularly licensed
on the frequency or jeopardize the specified use of the channel,
and provided further that the new stations shall be able to
render service consistent with the standards of good engineering
practice.
" (8) We recommend that when licensing new stations, or when
increasing the power of an existing station of any class on a
channel assigned to such class, due regard should be given to the
standards of good engineering practice, particularly with refer¬
ence to the interference that may be caused within the good ser¬
vice areas of other stations of the same class on the channel in
question.
"(9) We recommend that the band 1510-1600 kc be opened for
Class D, E or F stations, depending upon the policy to be deter¬
mined by the Commission with respect to the number of additional
stations and the type of service they should render.
"(10) We recommend that all stations except Class A operate
simultaneously on shared channels at night, and whenever pract¬
icable, use methods to increase service and reduce interference.
"(11) We believe that two 50 kw stations separated by great
distances and operating simultaneously at night on the same channel ,
are capable of rendering a service to a limited area, particularly
if directional antennas are used. However, we do not recommend
the universal duplication of all existing clear channel stations
located on the coasts. We have recommended the retention of at
least 25 clear channels permanently, and caution in duplicating
other such channels, pending a North American arrangement.
"(12) We believe that directional antennas are feasible, but
we recommend the careful and studied application of these antennas
in individual instances.
"(13) We recommend against the general application of
synchronization, but suggest it can be applied in certain inst¬
ances to assist in increasing coverage of low powered stations.
"(14) While we believe that powers in excess of 50 kw on
clear channels are technically sound and are in accord with scien¬
tific progress, we recognize that social and economic factors
involved in the use of 500 kw may outweigh in importance engineer¬
ing considerations, and request instructions from the Division as
to its desires with respect to regulations on the question of
super-power. We feel that, in the matter of super-power, the
Commission should give full consideration to our reoort summariz¬
ing the economic testimony in the October 5 hearing prior to mak¬
ing a decision,
"(15) We feel that there is a need for increased signal inten¬
sity and have recommended that in general power increases are
required to better the service to the public. However, we recommend
that the regulations in this respect be sufficiently flexible to
6
1/15/37
permit the Commission to judge each individual case upon its
merits, particularly as to the needs and economic and social
circumstances.
” (16) We believe that from an ideal standpoint the "bloc"
system of allocation to classes of stations may reduce the dis¬
advantages of a disparity in power between stations on adjacent
frequencies, but because of practical considerations, we do not
recommend a radical change in allocation to accomplish this
scientific ideal.
"17) We recommend against the establishment of standards of
receiver selectivity and fidelity, but instead we recommend in¬
corporation in the standards of good engineering practice the
basis of receiver performance which is utilized in arriving at
necessary ratios between desired and undesired signals to avoid
objectionable interference.
"(18) We suggest the paramount importance of economic and
social factors in the determination of the distribution of facil¬
ities to licensees in any section of the country, and state that
a separate report will be submitted giving in detail a summary
of the evidence presented at the October 5 hearing. We hope the
Commission will consider this summary of evidence before making
final decisions.
"(19) We recommend against changing the existing require¬
ments with respect to frequency stability, modulation, harmonics
and power determination.
"(20) We suggest proceeding in an evolutionary manner toward
the improvements in the broadcast band 550-1600 kc without en¬
deavoring to await developments in other bands of frequencies,
because we feel that the public needs the possible technical
improvements in the existing broadcast service*
"(21) We recommend that the present empirical standards be
revised and issued in the form of "standards of good engineering
practice" and used as a guide in administration and in testimony
when no better evidence is available. "
XXXXXXXXXX
COPELAND REINTRODUCES BILL CONTROLLING RADIO AT SEA
A bill to amend the Communications Act of 1934 for the
purpose of promoting safety of life and property at sea through
the use of wire and radio communications and to make more effect¬
ive the International Convention for the Safety of Life at Sea,
1929, was reintroduced this week by Senator Copeland (D. ), of New
York.
XXXXXXXXXX
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1/15/37
CONNERY DEMANDS BROAD RADIO AND FCC INVESTIGATION
A broad inquiry into charges of "irregularities” and
"monopoly" in the broadcasting industry and its administration by
the Federal Communications Commission was demanded this week by
Representative Connery (D.), of Massachusetts, in a House Resolu¬
tion (No. 61).
Mr. Connery maae a similar demand last year, but his
resolution was successfully pigeon-holed by the House Rules
Committee, of which Representative O'Connor, of New York, a
former colleague of Anning S. Prall, Chairman of the Federal
Communications Commission, is Chairman.
The Massachusetts member, an ardent labor spokesman,
proposed that the inquiry be made by seven members of the House,
to be named by the Speaker, and suggested in a supplemental state¬
ment that he be appointed Chairman.
The House Rules Committee is expected to try to fore¬
stall the inquiry again this year. Its success will depend upon
the pressure that is brought to bear by friends and foes of the
FCC and the broadcasting industry.
The Connery resolution in a preamble states "there is
reason to believe that contrary to the intent and spirit, as well
as the language of the laws in force, a monopoly exists in radio
broadcasting"; that "certain types of programs . . . are allegedly
indecent"; and "it is contrary to public policy ... to allow
any private groups to traffic in property reserved to and for the
people. "
The Special Committee would be "authorized and directed
to inquire into and investigate the allegations and charges that
have been or may be made relative to irregularities in or pertain¬
ing to the monopoly which exists in radio and the activities and
functions carried on under the Communications Act of 1934 and all
matters pertaining to radio and radio broa dca sting. "
XXXXXXXXXX
FCC ASKS $350,000 TO CONTINUE TELEPHONE INQUIRY
For the purpose of continuing the inquiry into the
American Telephone & Telegraph Company, the Federal Communications
Commission this week asked of Congress through the Budget Bureau,
$350,000 in a supplemental appropriation.
The FCC explained that of the $300,000 appropriated in
the first Deficiency Act of 1936, $335,000 has been obligated,
leaving a balance of $65,000.
XXXXXXXXXX
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1/15/37
RADIO ADMINISTRATION SEEN RETURNING- TO COMMERCE DEPARTMENT
Return of the administration of radio and other forms
of communications to the Commerce Department, which nurtured it
in its infancy, was forecast this week as one of the ultimate
results of the President's plan for reorganization of the execu¬
tive departments.
While the plan is facing considerable opposition in
Congress and may be altered before being adopted, it now provides
for the abolition of all independent commissions.
The Federal Communications Commission consequently
would disappear as such and itsfunctions would be absorbed by
the Commerce Department. It is not unlikely, however, that most
of the personnel and some of the Commissioners would be retained
in the transfer.
The reorganization plan proposed that the duties of
independent commissions be divided. One section would handle
all administrative and licensing details, while the other sec¬
tion would constitute a Board of Review and would comprise the
present Commissioners.
XXXXXXXXX
FRANK ARNOLD HEADS RCA INSTITUTE'S TECHNICAL PRESS
The appointment of Frank A. Arnold, prominent for
many years in broadcasting circles, as Managing Director of the
RCA Institutes' Technical Press, was announced this week by
Charles J. Pannill, President of the ^CA Institutes.
Mr. Arnold's work in the broadcasting field began in
1926, when he became Director of Development for the newly-
formed National Broadcasting Company. In this position, he
became one of the most widely known executives in radio broad¬
casting and was responsible for the formation of many NBC poli¬
cies which since have become part of the enormous advertiser
and listener structure of that company. He is the author of
many books and brochures on radio advertising and analysis of
public response to programs.
In his new work, Mr. Arnold will direct publication
of the RCA Review, a quarterly journal of radio progress, which
numbers among its subscribers leading radio, sound and optical
engineers in more than 70 countries. The RCA Institutes Technical
Press, a department of RCA Institutes, Inc. , the oldest radio
technical school in the United States, also publishes books and
other data dealing with television and many related electronics
subjects. The new director comes to this work from the Institute
of Public delations, Inc. , of which he has been Vice-President
for the past year.
XXXXXXXXX
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1/15/37
PAYNE SUCCEEDS CRUSE IN COMMERCE DEPARTMENT POST
As predicted last week in the Heinl News Letter,
John H. Payne, formerly with Westinghouse Company, this week
was appointed Chief of the Electrical Division, U. S. Bureau of
Foreign and Domestic Commerce. He succeeds Andrew W. Cruse,
who transferred to the Federal Communications Commission as
Assistant Chief Engineer.
Mr. Payne had the endorsement of several trade organ¬
izations, including the Radio Manufacturers' Association.
XXXXXXXXX
NETWORK BILLINGS NEAR $60,000,000 FOR LAST YEAR
Representing an increase of 19.1 percent over 1935's
gross revenue, time sales by the three major networks - NBC,
CBS and Mutual - amounted to $59,679,671 in 1936, constituting
the largest income of networks they have yet enjoyed. Their
returns in 1935 were $50,079,838.
Of the 1936 total $34,523,950 was billed on NBC-Red
and Blue networks; $23,168,148 on CBS, and $1,987,573 on Mutual.
Included in the 1936 billings is about $2,000,000 spent by
political parties during the presidential campaign.
CBS reported its 1936 figures as 31.4# greater than
1935; NBC is up 10.8#, and Mutual reports the largest percentage
increase over 1935, 53.7#. A breakdown of the NBC networks
reveals that the Red had yearly receipts of $22,645,527 and the
Blue $11,878,423.
XXXXXXXX
WESTINGHOUSE STATIONS FORM NEW CORPORATION
Formation of the Westinghouse Radio Stations, Inc. ,
by the Westinghouse Electric and Manufacturing Company was dis¬
closed this week in a statement filed with the Securities and
Exchange Commission. Westinghouse introduced radio broadcasting
as it is known tody in 1920, through KDKA, the first one to
operate on a daily schedule.
The new company is expected to play a part in the
operation of the Westinghouse chain, which consists of four
stations, including KDKA. The statement related that Westing¬
house bought all the outstanding capital stock of the Main Auto
SuDply Company of Indiana on August 1st and that the name was
changed to Westinghouse Radio Stations, Inc., two days later.
XXXXXXXXX
- 10 -
1/15/37
NEW STATION FOR RICHMOND, VA. , IS AUTHORIZED
Reversing Examiner John P. Bramhall, the Federal Com¬
munications Commission this week granted a construction permit
to the Times-Dispatch Co. , Pichmond, Va. , newspaper publisher,
for a new broadcasting station to operate on 1500 kc. , with 100
watts power, unlimited hours. The order is effective February 2nd.
The Commission at the same time denied a permit to the
Century Broadcasting Co. , of Richmond, and authorized WMBG,
Richmond, to move its transmitter, install new equipment, and
transfer from 1210 to 1350 kc. , increase oower to 500 watts,
and hours to unlimited.
XXXXXXXXXX
LA CUARDIA SEEKS NON- COMMERCIAL NETWORK
New York’s Mayor La Guardia hopes to link the country’s
non-commercial radio stations into a new broadcasting chain,
with the municipal station WNYC as one of the links.
He outlined the plan this week at the annual meeting
and luncheon of the Municipal Art Committee in the Rainbow Grill,
Rockefeller Center, according to the New York Times. As yet, he
explained, there are not many non- commercial radio stations in
the country, but enough exist to form the nucleus of a system
devoted to educational and cultural activities.
Inter-station communication would be accomplished by
short wave, the Mayor explained, pointing out that technically
this method was now practicable. The stumbling block in realiz¬
ing the plan, however, has been a ruling of the Federal Communica¬
tions Commission, which he hopes will be changed, he added.
"During the Harvard Tercentenary we tried to rebroadcast
over WNYC one of the programs sent to the Municipal Station from
Harvard by short wave, but were prevented by the Federal Communi¬
cations Commission. This body ruled that where a telephone line
was available for interstation communication, short-wave could not
be utilized. Such a ruling is as absurd as insisting that where
railway lines run between two cities, travelers may not use air¬
planes. "
Mr. La Guardia pointed out that WNYC's facilities woulc:
soon be much improved when a new broadcasting plant in Greenpoint
was put in operation. This has been erected with PWA funds.
XXXXXXXXXX
11 -
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1/15/37
ZENITH VOTES 50 CENTS A SHARE FOR THIRD QUARTER
Directors of the Zenith Radio Corporation, Chicago,
this week voted a dividend of 50 cents a share for the third
quarter of the fiscal year, which ends January 31st, according
to Commander E. F. McDonald, President.
Zenith sales for this y<=ar are running 100 percent above
last year, he said, which was the company's biggest profit year.
The Chicago company will move February 15th into its
new plant at Dickens and Sustin Avenues, Commander McDonald
said, but auto set production will continue in present quarters.
XXXXXXXXX
COMPETITION INTENSE IN CUBAN RADIO MARKET
The extent of the competition in radio receiving set
market of Cuba is indicated in a report to the Commerce Depart¬
ment from the American Commercial Attache at Habana,
During the month of November, the report shows, no
less than 32 different makes of radios were included in the
import returns. The only non-American make of any consequence
now sold in the Cuban market is the Dutch radio, "Philips."
According to private compilations from ships' manifests,
imports of radio receiving sets into Habana during November
amounted to 3,414 units, valued at $84,198, compared with 3,436
units, valued at $98,903, in October, and 3,419 units, valued
at $90,303 in November, 1935, the report states.
Local distributors throughout Cuba express the view
that the outlook for sales of radio sets during the coming season
is very favorable, according to the report.
XXXXXXXX
The Federal Communications Bar Association this week
recommended establishment of a Motions Court by the Federal
Communications Commission's Broadcast Division to assist in
maturing cases for hearing.
XXXXXXXX
12 -
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GENERAL LIBRARY
CONFIDENTIAL — Not for Publication
u_ i v L iJ
E;, JAN 20 1333
Wayne l. Randall
INDEX TO ISSUE OF JANUARY 19, 1937.
Celler To Sponsor Bill For U. S. Short-Wave Station . 2
Culkin's Dry Bill Includes Wines And Beer . 3
General Increase In Broadcasting Power Is Expected . 4
SEC Informed Of Negro Network Project . 5
Finch Upheld By Appeals Board On Facsimile . 6
CBS Inaugurating Latin-American Service . .6
Scott Reintroduces Bills For Public Time On Radio . 7
Radio "Divining Rod" Demonstrated In Radio City..... . 7
Educational Group Calls Radio Parley Successful . 8
New Magazine To Print News That Can't Be Aired . 8
Radio Teletypes Replacing Wires On Air Lanes . 9
Broadcasting Files Answer To Payne Libel Suit . .10
Fitch Named Business Manager Of NE Program Department . .10
Radio Notables Enjoy Alfalfa Frolic . 11
Media Records Enters Radio Advertising Field . 11
Union Head Held In Attack On Radio Operator . 12
South Africa Offers Good Radio Market . 12
No. 997
January 19, 1937
CELLER TO SPONSOR BILL FOR U. S. SHORT-WAVE STATION
A Government- owned Pan American short-wave station,
which has been in the offing for several years, appeared a step
nearer reality this week as Representative Celler (D.), of New
York, disclosed that he will introduce a bill to establish it.
Congressman Celler apparently has become interested
in the project through George Henry Payne, the Federal Communi¬
cations Commissioner, who only a fortnight ago reiterated a
charge that a ’’Washington radio lobby” is attempting to take
away from the Federal Government the five short-wave frequencies
allocated for the station.
In an address at Harvard University, Commissioner
Payne recalled that an Executive Order had been issued by the
President allocating five short-wave frequencies for the Pan
American station, that the Berne Bureau had been notified, and
that an engineering survey had been made. There the matter had
stopped for more than a year. He further charged that certain
commercial interests have been responsible for blocking the pro¬
ject and were now trying to get possession of the frequencies.
The five frequencies which were set aside for the sta¬
tion following the Pan American conference in Montevideo in 1932
are: 6120, 9550, 11730, 15130 ana 21500 kc.
Columbia Broadcasting System's W2XE, New York, uses
6120 kc. on a "loan" from the Navy.
Representative Celler' s proposal, which is said to
have the endorsement of administration officials, calls for the
construction of a short-wave transmitter in or near Washington
at a cost of approximately $750,000. Some $50,000 would be
appropriated yearly for the maintenance of the station and the
preparation of programs.
Sponsors of the station have indicated they will appeal
for support of the project on two grounds: viz., that the broad¬
casts will seek to Improve further the goodwill between the Latin
Americas and the United States, just revived by President Roose¬
velt's South American tour; ana that the station will be able to
offset foreign propaganda from European short-wave transmitters
now directing programs to South and Central America,
2
1/19/37
The Pan American station project, moreover, is in
line with the move of the National Broadcasting Company and
the Columbia Broadcasting System to transmit programs especially
to Latin America.
Only a few months ago the Commerce Department criti¬
cized the American short-wave stations for, in effect, ignoring
the South American market and permitting European short-wave
stations to get the jump on this country.
A report from the U. S. Trade Commissioner at Buenos
Aires stated that European short-wave broadcasts were being
heard in South America better than American stations. At
least five European stations, the reoort said, were heard regu¬
larly by South Americans.
Since then both NBC and CBS have inaugurated new ser¬
vices designed for South and Central America.
Broadcasters are disturbed, however, by the possibil¬
ity that establishment of a government-owned Pan American sta¬
tion may open the way for additional government-owned stations,
possibly in the long waves.
The Office of Education, it is pointed out, is becom¬
ing increasingly interested in the educational uses of radio
and will be equipped with a modern studio in the new Interior
Department Building.
The Educational Radio Project, sponsored by the Office
of Education with WPA funds, now has four educational programs
going out on commercial stations.
XXXXXXXX
CULKIN'S DRY BILL INCLUDES WINES AND BEER
Representative Culkin(D.), of New York, introduced a
bill this week to bar the radio advertising of not only liquor
but beer and wine as well. The bill reads, in part:
"No persons shall broadcast by means of any radio
station ... or permit any advertising or information concern¬
ing any alcoholic beverage, whether beer, ale, wine, gin,
whiskey, brandy or by any other name."
The penalty provided is a fine of from $500 to $1,000
and imprisonment of from three months to a year for each day’s
offense.
XXXXXXXX
3
1/19/37
GENERAL INCREASE IN BROADCASTING POWER IS EXPECTED
A general upward trend in power of broadcasting sta¬
tions is expected to result from the recommendations of the
Engineering Department of the federal Communica tions Commission
last week. The question of whether more "super-power” outlets
with 500 kw. , now used only by WLW, Cincinnati, will have to
be decided by the Commission on the basis of economic rather
than technical factors.
Commander T.A.M. Craven, Chief Engineer, in discussing
the power question said:
"In general, the trend of all engineering testimony
was toward higher power for all classes of stations. It was
clearly indicated that in general the existing empirical stand¬
ards of the Engineering Department with reference to signal
intensities required for good service should be used as a mini¬
mum and that in many instances there is needed a higher order
of signal intensity to overcome the noise level in cities and
the noise level in rural areas, particularly during the Summer
and in the southern sections of the country.
"The only way to secure increased signal intensity is
by increase in radiated power. However, it should be clearly
understood that if the power of all stations were increased
generally, the interference which now exists would remain exactly
the same insofar as the distance from each station is concerned,
and there would be no increase in good service areas free from
interference at night unless means were taken to avoid such
interference.
"In the opinion of the Engineering Department, and in
view of modern technical developments, it would seem desirable
that if power were to be increased at various stations, an
attempt should be made from the standpoint of interference to
secure an additional improvement in service to the oublic over
and above increased signal intensity within existing interfer¬
ence boundaries. This, of course, could not be accomDlished in
all cases, but in each individual case advantage might be taken
of practical opportunities which might exist to secure the ser¬
vice of increased signal intensity which might benefit the local
listeners and at the same time create less interference to
listeners of a distant station.
"The greatest controversy and difference of opinion
existed with respect to power greater than 50 kw. However,
with but one exception, all engineers who testified admitted
that where side channel interference was not a factor, powers
on clear channels in excess of 50 kw. would be a technical
advance and would result in an increased signal intensity to
remote areas. . It is also clear to the Engineering Department
that from a technical standpoint any power less than 50 kw. on
4
1/19/37
a clear channel is a wasteful use of such frequency on the
North American Continent.
"Judging from the testimony, the Engineering Depart¬
ment is of the opinion that social and economic factors involv¬
ed in powers in excess of 50 kw. are of paramount importance
and in our opinion may outweight engineering considerations in
the final determination of this subject by the Commission.
"The Engineering Department is of the opinion that
if the Commission accepts the doctrine of clear channel sta¬
tions, all such stations should employ sufficient power to
justify the use of a single channel at night by only one sta¬
tion and that this power should not be less than 50 kw.
"In connection with this question of super power,
we are preparing a separate report giving a detailed analysis
of the voluminous testimony in the record with respect to the
economic phases involving costs, earnings and other facts which
may be of assistance to the Commission in its final determina¬
tion of increases in power. We feel that these facts are
important and that the Commission should await its final
decision pending the completion of this summary of the evidence. "
XXXXXXXXXX
SEC INFORMED OF NEGRO NETWORK PROJECT
Construction and operation of a network of stations
soliciting Negro listeners is prooosed by the Gold Star Padio
& Television Corp. , 412A, Massachusetts Avenue, Boston. It
has notified the Securities & Exchange Commission of its inten¬
tion to issue stock to finance the project.
The SEC application states that the company is
chartered to engage in a general radio and television business.
It was incorporated Sept. 28, 1936, in Massachusetts, with
Charles Henry Davis, Jr. , 538 Tremont St. , Boston, President
and Director.
Five stations are planned, using directive antenna,
in New York, Chicago, Philadelphia, New Orleans and Los
Angeles, each to cost $100,000, including $55,000 reserve for
one year's operation, the application states. The stock issue
would consist of 99,795 shares of Class A common stock with
$5 par to be offered at $6.25. Of this $1.25 per share will
cover expenses of the fiscal director, it is stated,
XXXXXXXX
FINCH UPHELD BY APPEALS BOARD ON FACSIMILE
An attempt by Maurice Artzt to block reissue of a
basic patent on radio facsimile to William G. H. Finch, Presi¬
dent of Telecommunications, Inc. , New York City, has been
defeated by a patent office Board of appeals ruling which
holds the Finch apparatus involves features not embraced in
disclosures previously made and that he is therefore entitled
to a patent.
Radio Corporation of America is the party in inter¬
est in the interference made against Finch, Artzt having assign¬
ed his right to RCA after he applied for a facsimile patent in
1931. Finch was granted his patent in 1934 and later asked
reissuance on the basis of amplified claims.
The effect of this decision is to safeguard Finch’s
patent facsimile patent unless a new appeal is successfully
prosecuted before the U. S. Court of Customs and Patent Appeals.
If the Patent Office is not reversed, Finch will be
placed in a position to collect royalties from all users of the
method described in his application. This does not mean, how¬
ever, that patents cannot be issued for other facsimile appara¬
tus but none can be granted for types which employ any of the
more than 47 claims proved by Finch.
Mr. Finch announced this week that he has been granted
two important additional patents for improvements on his radio
facsimile receiving system. They cover local energization for
picture recording controllable by the facsimile signals and
also a method whereby a transmitted picture may be etched dir¬
ectly upon a zinc plate by the recording stylus, thus eliminat¬
ing the photographic steps at the receiving end. From these
plates newspaper mats can be made or the plates themselves may
be used for newspaper reproduction, the patent states.
XXXXXXXX
CBS INAUGURATING LATIN- AMERICAN SERVICE
The Columbia Breadcasting System is preparing to
inaugurate a series of specially prepared short-wave broad¬
casts to Central and South America from a new 10 kw directional
antenna station W2XE, Wayne, N. J. The time will be from 6
to 10 P.M. , EST, on a directional transmission and an additional
hour on non- directional.
The CBS Program Department has been instructed to line
up all available Latin American talent. Programs will probably
consist of news commentaries, musical talent, etc. Several of
CBS' sustaining shows have heretofore been short-waved through
but there was no set schedule. The policy will be regular in
schedule.
The National Broadcasting Company already has start¬
ed a short-wave progra.m service to Lat in- America .
XXXXXXXXX
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SCOTT REINTRODUCES BILLS FOR PUBLIC TIME ON RADIO
Bills seeking to compel broadcasting stations to
set aside regular periods for "uncensored" public forums and
educational purposes and to keep records of requests for time
were reintroduced in the House this week by Representative
Scott (D.), of California.
The major measure, which would amend Section 315 of
the Communications Act, specifies that the time so allocated
be "at desirable times of the day and evening" and be used
"for uncensored discussion on a non-profit basis of public,
social, political, and economic problems, and for educational
purposes. "
As in political addresses, the station would be
required further to grant equal time for speakers who hold
contrary views.
XXXXXXXX
RADIO "DIVINING ROD" DEMONSTRATED IN RADIO CITY
A radio "divining rod", which locates hidden metal
objects in the earth and measures the depth of pipes and cables
without the use of electrical connections, was demonstrated
last week in the outdoor garden of Horticultural Hall, on the
eleventh floor of the RCA Building, Rockefeller Center, New
York City.
Despite the large number of metal beams and girders
inside the walls and floors of the building, a newspaper
representative who donned the earphones and carried the "div¬
ining rod", easily located a metal chest buried a foot under
the surface of the earch in one of the outdoor gardens. It
was explained that the proximity of large masses of metel in
the building complicated the location of a single smaller
metal object.
Notwithstanding the handicap, the newspaper man, who
was ignorant of the location of the object, easily found the
spot by the maximum sound heard in the earphones. Then the
head gardener dug up the chest, which was filled with old
coins and metal checks.
The device, known technically as the "M- scope", or
"metal-scope" is the invention of Dr. Gerhart R. Fisher,
Director of the Fisher Research Laboratories, Palo Alto, Cal.
The "M-scope" consists of two boxes, each about
fifteen inches square and three inches thick. In one box is
a small radio transmitter generating very short waves. The
other box operates as a receiver.
XXXXXXXX
1/19/37
EDUCATIONAL GROUP CALLS RADIO PARLEY SUCCESSFUL
The first National Conference on Educational Broad¬
casting, held in Washington, D. C. , December 10-12, was
definitely successful as an overview of current practises in
educational broadcasting1’ , Education by Radio, a bulletin of
the National Committee on Education by Radio, declares in its
January issue. "It reflected what seems to be a general
approbation of the present system of broadcasting, but intro¬
duced enough criticism to indicate that room for much improve¬
ment still exists. It avoided, in accordance with the wishes
of the eighteen sponsoring organizations, any attempt to pass
resolutions or to agree upon conclusions. It moved with a
smoothness which reflected great credit upon its managers.
"The general sessions, taken as a whole, contributed
little towards a solution of the problems which sooner or later
must be faced in broadcasting. This suggests that whether
another conference is to grow out of the recent one or is
called nde nouveau' at some future time more emphasis might well
be placed on analyzing specifically the remaining problems. In
this connection it might be suggested that the fruitfulness of
such a conference could be enhanced by applying the recognized
forum procedure and allowing the immediate and direct question¬
ing of speakers. "
XXXXXXXXX
NEW MAGAZINE TO PRINT NEWS THAT CAN'T BE AIRED
A new magazine, The Commentator, will enter the pocket
size edition field with its appearance on the news-stands
January 20th. Edited by Lowell Thomas, war correspondent and
radio commentator, this new publication will accept no advertis¬
ing, will sell for twenty-five cents per copy, and is to be
published monthly.
Differing from many magazines in the pocket-size
field, The Commentator will not reprint excerpts or literary
passages from other publications, but with Lowell Thomas' associ
ates in the field of American commentators, it will produce high
lights of vital news facts that cannot be divulged over the air.
Editorial associates of Lowell Thomas are: John B.
Kennedy, author, editor, and commentator of note, advisory
editor,
H. V. Kaltenborn, whose name is known to millions of
radio listeners ana magazine readers and others.
XXXXXXXX
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1/19/37
RADIO TELETYPES REPLACING WIPES ON AIR LANES
Substitution of radio teletype machines in place of
the leased wire system now in effect, seems likely for the
Bureau of Commerce’s extended communica tion system in the near
future. After nearly two years of successful experiment, a
test installation is being made on the new Washington to Nash¬
ville airway.
The impending change would mean that weather condi¬
tions and probably Department of Agriculture market reports
and Weather Bureau detailed reports would be transmitted through¬
out the country by radio teletype. At present the Bureau of
Air Commerce has leased wires covering the continental United
States carrying regular aviation weather reports.
Developed by W. E. Jackson, Chief of the Radio Devel¬
opment Section and J. C. Hromada, Bureau radio engineer, the
new teletypes have already proved their utility on an experi¬
mental basis. Last October the system was demonstrated at
Silver Hill, Md. , where since the machines have been operating
in communication with a station at Baltimore.
The installation of the equipment on the Washington
to Nashville airway was decided upon by Bureau officials in
October, following the Silver Hill demonstration. Cost of
installation will be approximately &200,000„ The oroject is
expected to pay for itself within three years by savings on
toll charges for leased wires.
If the experiment proves financially sound, air
experts predict it will mean an end to the present system of
leased wires, with a considerable saving to the Bureau.
In transmitting a message by radio teletypewriter,
the operator types his dispatch on a regular tele-typewriter
machiner similar to those used for land wire circuits. As he
strikes a letter, the machine completes a series of contacts
which set up electrical impulses transmitted over the air as
code dots and spaces. The radio receiver at the other end of
the circuit translates the radio impulses back into letters,
the message being printed the same as in wire teletypewriting
machines.
The system provides for rapid transmitting, the radio
impulses traveling with the speed of light. Moreover, the wave¬
length used is of such high frequency that ordinary static has
no effect on transmitting and receiving. According to Bureau
officials, only a bolt of lightning, striking very near a trans¬
mitting or receiving station, would interrupt communica tions.
Even then, according to officials, the interruption will only be
momentary,
XXXXXXXXXX
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1/19/37
BROADCASTING FILES ANSWER TO PAYNE LIBEL SUIT
Contending that the statements of fact made in its
editorial were true and the expressions of comment were fair
and made in good faith, Broadcasting last week filed in the
District Court of the United States for the District of
Columbia, its answer to the $100,000 libel suit of George H.
Payne, Reoublican member of the Telegraph Division of the
Federal Communications Commission. Mr. Payne had charged
damage to his ’’good name, fame and credit" by virtue of the
editorial titled "Strange Interlude" published in the October
15th issue of Broadca sting.
The answer was filed by William E. Leahy and Paul M.
Segal, Washington attorneys, in behalf of Broadcasting Publica¬
tions, Inc., Martin Codel, publisher, ana Sol maishoff, editor,
who were named as defendants. The plaintiff, in his suit filed
December 7th, asked $50,000 as compensatory damages and $50,000
as punitive damages through attorney Ellsworth C. Alvord.
The answer categorically denied contentions of injury
to the Commissioner. The major contentions were summed up as
follows: "The statements of fact contined in the said article
complained of in the declaration were true, and the expressions
of comment and criticism therein upon the said facts were fair
comment on, and criticism of, matters of great public interest,
and concern made in good faith and without malice."
The Payne suit recalls a remark attributed to a
henchman of the late Senator Penrose, of Pennsylvania, to the
effect, "Don't never sue nobody for libel because they might
prove it on you. "
XXXXXXXXX
FITCH NAMED BUSINESS MANAGER OF NBC PROGRAM DEPARTMENT
C. W. Fitch, Manager of Personnel for the National
Broadcasting Company since last September, has been appointed
Business Manager of the NBC Program Department. Mr. Fitch
already has assumed his new duties, which consist of handling
the personnel, budgets and all problems connected with the
administration of the Program Department. At present, he is
spending several days with each division of the department to
acquaint himself with their various activities.
Before joining NBC, Mr. Fitch resigned as Assistant
Director of the Housing Division of the Public Works Administra¬
tion, a post he took in 1935. From 1930 to 1935, he was
associated with A Century of Progress in Chicago as Director
of Exhibits and assistant to the General Manager, Major Lenox
Lohr, now President of NBC.
XXXXXXXXX
10 -
1/19/37
RADIO NOTABLES ENJOY ALFALFA FRLOIC
Leaders in the radio industry were among those who
enjoyed the Twenty-Fourth Annual Dinner of the Alfalfa Club in
Washington, D. C. last Saturday night. As usual, Gene Buck,
President of the American Society of Composers, and Vice-Presi¬
dent of the Alfalfa Club, was in charge of the vaudeville part
of the program and brought with him a number of well-known
entertainers from New York.
The radio industry was represented by the following:
Thad H. Brown, Federal Communications Commissioner;
Louis G. Caldwell, former General Counsel, Federal Radio Com¬
mission; Harry C. Butcher, Vice-President, Columbia Broadcasting
System, Washington; Norman S. Case, Federal Communications Com¬
missioner; Lewis M. Crosley, Crosley Radio Corporation, Cincinnati
Walter Damm, Station WTMJ ; Ewin L. Davis, Federal Trade Commis¬
sioner; Col. Manton Davis, Radio Corporation of America; Charles
K. Field, New York City; Donald Flamm, President, WMCA, New York
City; John W. Guider, radio counselor, Washington; William S.
Hedges, Crosley Radio Corporation, Cincinnati; Thomas P. Little-
page, Sr., radio counselor and former past President of the
Alfalfa Club, John M. Littlepage, Thomas P. Littlepage, Jr.
ana James Littlepage, Washington; Anning S. Prall, Chairman,
Federal Communications Commission; John B. Reynolds, Acting
Secretary, Federal Communications Commission; Frank M. Russell,
Vice-President, National Broadcasting Company , Washington; Kurt
Sell, German Broadcasting Company; former Senator James E.
Watson, of Indiana; Judge E. 0. aykes, Federal Communications
Commissioner; Senator Wallace H. White, of Maine; and Frank
Wozencraft, Radio Corporation of America,
XXXXXXXXXX
MEDIA RECORDS ENTERS RADIO ADVERTISING FIELD
Media Records, Inc. , who measures space used by
individual advertisers in the nation's newspapers, started
January 1st to expand the service to include complete reports
on radio advertising as well as general magazines, farm papers
and trade publications.
C. E. Rock, President of Media Records, and formerly
with Gillette Safety Razor Co. , Boston, before he organized
Media Records in 1927, asked stations to submit data on their
accounts, stating that the service "will supply a great deal of
vital information about radio to the station owners and those
charged with the responsibility of the sale of radio advertising. "
He said he has received assurance from leaders in the
industry that the information will be forthcoming from stations,
XXXXXXXX
- 11 -
1/19/37
UNION HEAD HELD IN ATTACK ON RADIO OPERATOR
Hoyt S. Haddock, retiring President of the American
Radio Telegraphists Association, was arrested last week and taken
to Rockland County, N.Y. , where the authorities are investigat¬
ing an attack on Raymond Wolf, 28 years old, radio operator of
the Munson liner "Western World", in his home at Storing Valley,
N. Y. , on Thursday night last. The attack was attributed to
striking ship radio operators.
Mr. Haddock was arrested at the Custom House in New
York City and a warrant was served on him charging second degree
assault. Mr. Haddock was released on &1,000 bail after pleading
not guilty before Judge Finkel stein of Spring Valley. He was
held for the action of the grand jury. District Attorney George
V. Dorsey said, however, he did not believe Mr. Haddock was
involved in the case and that the telegraphists' leader probably
was mistaken for someone else*
None of the principals in the assault could identify
Mr. Haddock, the prosecutor aaid. He was held in bail chiefly
so his fingerprints might be compared with those found on lamps
and furniture in the Wofl home. ^he police said three men
beat Mr. Wolf into insensibility ana bound his mother and his
sister with electric corns snatched from electric lamps.
XXXXXXXXXX
SOUTH AFRICA OFFERS GOOD RADIO MARKET
South Africa offers a very good radio market, although
it is highly competitive, according to a U. S. consular report
to the Department of Commerce. The European population of the
country is very small and only amounts to approximately two
million persons. There are a great number of radio receivers
already being sold there and the market is more or less flooded
with makes. It is estimated, however, that more than three-
fourths of the sales are made by a half-dozen American makes and
the Dutch Philips, which carry replacement parts and operate
service stations in all of the larger towns.
In order to enter this field successfully, it would be
necessary to have an outstanding set selling at a very low figure
or to do a considerable amount of advertising in order to bring
the sets to the attention of the buying public.
XXXXXXXX
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NATIONAL BROADCASTING COMPANY, In
SENCRAs. LIBRARY
Heinl Radio Business^wter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
RtC6.IV ED
JAN 1337
WAYNE L RANDALL
INDEX TO ISSUE OF JANUARY 22, 1937.
11 Fan” Mail Swamps U. S. Radio Educational Office . 2
Influence Of Sun On Static Still Puzzle To FCC Engineers . 3
President Has World Audience For Second Inaugural. . 4
Tyson To Head College, Quits Radio Council Post . 5
Statistics Of Radio Business Tersely Tabled . .6
Ships Closely Inspected For Radio Act Violations . 7
Canada Developing Museum Of Recordings . 8
Radio "Hams" Still Perform Yeoman Service, Says FCC . .9
Belgian Congo Natives Discard Drums For Radios . 10
Therapeutic Machines Offer Threat To Television . 10
Educational Programs 40^ Of Total On Moscow Stations . 11
RCA Testing Television With New FCC Standards . 12
Dun & Bradstreet Says Radio Climb Will Continue . 12
No. 998
January 23, 1937.
"FAN" MAIL SWAMPS U. S. RADIO EDUCATIONAL OFFICE
"Fan!1 mail for the five weekly coast-to-coast educa¬
tional programs is setting new records for responses to that
type of broadcasts, according to the U. S. Office of Education,
wnich sponsors the Educational Radio Project.
More than 15,000 letters a week are pouring into the
offices of the Federal agency, officials report, and the volume
of mail increases weekly.
"The World is Yours", a Sunday morning presentation
sponsored jointly by the Office of Education and the Smithsonian
Institution over the NBC-Red network, is the most popular of the
five programs. But "Answer Me This" is running it a close second
in mail response.
The other three programs are "Treasures Next Door",
"Education in the News", and "Have You Heard?"
Supplementing the usual "fan letter" method of judging
the popularity of "The World Is Yours", the Office of Education
has sent out thousands of comprehensive questionnaires to
listeners who have sent in fan letters. The questionnaires
ask the listener rs age, occupation, number listening to the pro¬
gram in his home, if the program is discussed later and comments
and criticism about reception and material.
To date, tens of thousands of these reports have been
returned. Others are arriving at a rate of more than one
thousand per day. Besides showing definitely that "The World Is
Yours" is one of radio rs top programs in the entertainment field,
the questionnaires also attest to its vital educational value,
its sponsors assert.
Listeners in all walks of life, of all ages and from
every section of the country, as well as from several foreign
nations, are returning the reports. It has been found, through
an analysis of the questionnaires received thus far, that an
average of three persons listen to the programs with each of the
answering fans; that the programs are discussed in detail after
each broadcast; that advance material, which is sent to more
than 52,000 families each week, is used as a supplementary
aid during the progra.ms; that this material usually is kept for
future reference, and that the programs are fitted to all types
of listeners.
2
1/22/37
The Office of Education plans to make a more complete
analysis of the reports when all tnose sent out have been return¬
ed. This will be made with a view to learning the age groups
most vitally interested in the program; the sections in which
the largest percentage of listeners live; the occupations of
those most interested in the broadcasts, and a thorough study
of suggestions made in the listeners' criticism.
This final analysis, the Office of Education believes,
will give the most detailed check of the listening public ever
obtained by the producer of a radio broadcast.
XXXXXXXXXXXX
INFLUENCE OF SUN ON STATIC STILL PUZZLE TO FCC ENGINEERS
The engineers of the Federal Communications Commission
are still unable to explain fully the influence of the sun on
broadcast reception. And the recent broadcast band hearing,
though it offered much technical evidence on many aspects of
radio transmission, didn't contribute anything on this major
cause of static.
Commdr. T. A. M. Craven, Chief Engineer, in his report
to the FCC said:
"No new evidence was given with respect to the exist¬
ing known facts concerning the Heaviside layer and sunspot
cycle. It is impossible at this time to give rigid assumptions
concerning this subject, because insufficient data have been
collected.
"However, the Engineering Department recommends that
the Technical Information Section continue to accumulate data
from other sources with reference to this subject, and that the
Commission encourage research on the part of institutions, lead¬
ing to the accumulation of greater knowledge concerning the
Heaviside layer and the sunspot cycle. This study, of course,
has been in progress at various commercial, educational and
governmental institutions and laboratories in this country and
abroad. "
XXXXXXXXXXX
Denial of an application by MAS, Springfield, Mass. ,
to shift its frequency from 1420 kc. to 560 kc. and increase
its power to 1,000 watts was recommended this week to the
Federal Communications Commission by Examiner Melvin H. Dalberg.
XXXXXXXXXX
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1/22/37
PRESIDENT HAS WORLD AUDIENCE FOR SECOND INAUGURAL
Although the crowd on Capitol Plaza for President
Roosevelt’s inauguration was disappointingly small on account
of the inclement weather, his radio audience was probably the
largest in his four years of talking directly to the Nation's
voters over the air.
Short-wave transmitting stations carried the Chief
Executive's words around the globe, and reception was, in most
instances, excellent, according to press reports, whether in
Shanghai or Paris.
At least a dozen countries were tuned in on the
inaugural broadcast, which occupied most of the day, and some
300 American stations carried the program to every nook and
corner of these United States.
Countries to which the program was directed through
the short-wave facilities of the Columbia Broadcasting System
and the National Broadcasting Company, Included France, Holland,
England, Switzerland, Italy, Belgium, Austria, Latvia, Czecho¬
slovakia, Brazil, Peru, Argentina and Uraguay.
Americans at London, ^aris and Honolulu were brought
to the microphone to comment on their reaction to the inaugural
speech, as heard over the radio. There was in addition an NBC
broadcast from the liner "Rex", in which several passengers
told of hearing the program at sea, off the Azores.
Another broadcast was from the ancestral home of the
Roosevelts in Oud Vossemeer on the Isle of Tholen in Holland.
In this ancient Zeeland village, an announcer "escorted" listen¬
ers to the town hall and to the Roosevelt ancestral homestead,
where Renville T. Emmett, American Minister to the Netherlands,
spoke briefly.
Through W3XAL, short-wave station at Bound Brook, N.J.,
special broadcasts at various times were given in English, French,
Italian, Spanish and German. Highlights of the Washington pro¬
gram were relayed to London at 11:50 A.M. by Felix Greene,
representative of the British Broadcasting Corporation, as a
prelude to the inaugural address.
Max Jordan, European representative of the NBC, spoke
over W3XAL shortly after noon for listeners in France, Spain
and Italy. Kurt Sell, of the Reichs Rune funk Gesellschaft ,
Berlin, summarized the inauguration for German listeners between
1 and 1:30 P.M. TheCBS commentator for France was Percy Winner,
Paris newspaper representative, while Jorg Leal, La tin- American
commentator, relayed the description southward for countries
beyond the Caribbean.
Other short-wave transmitters carrying the program to
foreign lands included Stations W2XE at Wayne, N. J. ; W3XAU at
Philadelphia; W8xk, Pittsburgh, and W2XAF, Schenectady.
XXXXXXXXXXX
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1/22/37
TYSON TO HEAD COLLEGE, QUITS RADIO COUNCIL POST
Dr. Levering Tyson, of New York, who has been Director
of the National Advisory Council on Radio in Education since
1930, will quit the radio educational field shortly to become
President of Muhlenberg College at Allentown, Pa. He ends his
duties as Director of the National Advisory Council about July 1
Dr. Tyson, who is 48 years old, has gained wide exper¬
ience in educational affairs. He organized the home study
department as one of the extension activities of Columbia
University in 1919-1920. Invited to attend the original confer¬
ence resulting in the establishment of the American Association
for Adult Education, he was retained by that organization in
1929 to make a stuay of the possibilities of radio in education
on behalf of the Association and the Carnegie Corporation of
New York.
Out of this study developed the National Advisory
Council on Radio in Education, for which he was selected asthe
first director, a position he has held ever since. In 1930
it was announced that through the cooperation of John D. Rocke¬
feller, Jr. and the Carnegie Corporation, funds for the basic
extension of the council and its maintenance for a. period of
threeyears were assured. Dr. P. A. Millikan of the California
Institute of Technology was elected the first president.
Mr. Tyson is a member of the Federal Radio Education
Committee and is Chairman of the Radio Subcommittee of the
American Committee of the Institute for Intellectual Cooperation
of the League of Nations; also Chairman of the Broadcasting
Committee of the World Association for Adult Education.
In 1931, he was Chairman of the International Confer¬
ence in Educational Broadcasting at Vienna. Last Summer he
travelled through Europe, attending radio meetings in Edinburgh,
Oxford, Geneva and Rome.
Always an advocate of the American broadcasting
system as against the government-controlled methods in vogue in
Europe, Dr. Tyson, nevertheless, has advocated adjustments in
the American system to make it best serve the general needs of
listeners. In this sense he has always been a friendly critic
of radio in this country.
XXXXXXXXX
A new broadcasting station for Port Huron, Mich. , was
recommended to the Federal Communications Commission this week
by Examiner John P. 3ramhe.il . The applicant, the Port Huron
Broadcasting Co. , asked for a permit to operate on 1370 kc. ,
with 250 watts daytime.
XXXXXXXXX
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1/22/37
STATISTICS OF RADIO BUSINESS TERSELY TABLED
Following Is a terse outline of the radio industry,
which now has a flow of 1851,000,000 yearly, as compiled by
Radio Today :
Uncle Sam’s Annual Bill For Radio
Sale of time by broadcasters, 1936
Talent costs, 1936
Electricity, batteries, etc. to
operate 33,000,000 receivers
8,000,000 radio sets sold in 1936
46,000,000 replacement tubes
Radio parts, supplies, etc.
Servicing radio sets
$114,000 ,000
36 , 000,000
150,000,000
440,000,000
31,000,000
45,000,000
75,000,000
U. S. Public paid for radios in 1936 $891,000,000
Radio Sets In Use
U. S. homes with radios
Extra and " second" sets in
above homes
Automobile radios in use
Jan, 1, 1936
22,869,000
3,000,000
3,000,000
Jan. 1, 1937
24,500,000
4,000,000
4,500,000
Total radio sets in use, U. S. 28,869,000
33,000,000 •
Total homes with autos
Total residence telephones
Total homes with electricity
Total homes in U.S.
Population U. S.
17,650,000
11,000,000
21,030,000
31,000,000
128,000,000
18,000,000
11,500,000
21,800,000
31,471,000
128, 853,000
Roll-Call Of Radio Industry
Manufacturers of radio receivers 144
Manufacturers of radio tubes 13
Manufacturers of radio parts 620
Manufacturers of test equipment 55
Manufacturers of broadcast and amateur equip. 110
Manufacturers of sound equipment 95
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1/22/37
Radio Set And Tube Sales
Totpl radio sets sold during 1936
Radio sets exported
Automobile radios
Home radios sold in U.S.
Home sets sold as replacements
Home sets sold to homes pre¬
viously without radios
Home radios sold as extra sets
Battery sets
Tube replacements
Tubes, initial equipment
Total tubes sold 1936
Parts, supplies, etc.
Number
Retail Value
8,000,000
$440,000,000
650,000
—
1, 700,000
85,000,000
5,650,000
310,000,000
3, 900,000
215,000,000
1,750,000
96,000,000
1,000,000
55,000,000
800 , 000
40,000,000
46,000,000
50,000,000
31,000,000
96,000,000
70,000,000
—
45,000,000
XXXXXXXXX
SHIPS CLOSELY INSPECTED FOR RADIO ACT VIOLATIONS
During the past fiscal year there were 13,578 clear¬
ances from U. S. ports of American and foreign ships which are
required to carry radio apparatus, the Federal Communications
Commission reports. During the same period 6,337 inspections
were made of the radio installations on these vessels which
revealed 151 cases of violation of the law. In 145 of these
cases the masters were served with official penalty notices.
Corrective action was taken, however, prior to departure from
port. In addition, 192 discrepancy notices were served on the
licensees of these vessels for failure to comply with the
provisions of interna tional treaty or regulations of the Com¬
mission.
On ships voluntarily equipped with radio apparatus
3,108 inspections were made. Of this number 658 cases revealed
defects and required the radio licensees to take corrective
action.
There were 1,701 detailed inspections made of ship
radio installations to determine if they met the license
requirements as to frequency of operation, frequency stability,
decrement, etc.
XXXXXXXX
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CANADA DEVELOPING MUSEUM OF RECORDINGS
The Canadian Broadcasting System is rapidly develop¬
ing a valuable museum of radio recordings that may well be of
inestimable value to posterity. The recordings, most of which
are of overseas broadcasts, are made at the CBC short-wave
receiving station in Ottawa by means of the Blattnerphone
equipment.
The invention of the Blattnerphone has made possible
recordings of radio programs of any length and these recordings,
which are not subject to the influence of time, atmospheric
or physical conditions, can be used as often as required,
according to the CBC.
Up to that time there had been recorded and placed
in the archives important permanent recordings, among them
being the Christmas message of His late Majesty, King GeorgeV,
to the Empire in 1934; the opening of the 17th Parliament of
Canada; the funeral services of Sir Arthur Currie; proceedings
in connection with the Economic Conference in London in 1933;
the Jubilee celebrations of 1935; the wedding of Their Royal
Highnesses the Duke and Duchess of Kent in 1934; and the
launching of the R. M.S. M Queen Mary" in 1934.
Recently there were added the farewell address to
the Empire of the former King Edward VIII and the proclamation
ceremonies of the ascension to the throne of King George VI.
The Blattnerphone, for example, uses steel tape as
the recording medium and this tape, which is mounted on cast
aluminum spools, is a mile and a half in length, three thous¬
andths of an inch thick and a little over a tenth of an inch
in width, and is capable of accepting programs of about half
an hour’s duration. It is interesting to note that a recording
made by this machine is reproduceable with exactly the same
clarity as at the time of the actual broadcast and that it is
not subject to deterioration in any way. A recording made by
the Blattnerphone may be kept indefinitely or "wiped out. "
When a tape is thus cleared it may be used again.
Another advantage which this system of recording
offers is that long programs can be condensed, the CBC states.
For example, the proceedings in connection with the opening of
Parliament in 1935 resulted in a complete recording an hour and
a half in length. Since, however, the event occurred during
the afternoon, it was possible to eliminate unnecessary parts
by re-recording, thus making it suitable for reproduction over
the national radio network later that night. Only pauses in
the ceremony were deleted and nothing of value was lost for
the listener.
XXXXXXXX
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1/22/37
RADIO "HAMS” STILL PERFORM YEOMAN SERVICE, SAYS FCC
The array of radio pioneers, popularly known as "hams",
is still performing valuable oublic service although its period
of contribution to the technical develonment of wireless trans¬
mission apparently has ended.
Discussing this group of licensees in its report to
Congress, the FCC said:
"On June 30, 1936, there were approximately 46,850
amateur stations licensed by the Commission. Of this number
many are affiliated with the Naval Communications Reserve and
the Array Amateur Reserve system. A large number of these sta¬
tions, as well as others not associated with the Army and Navy,
continue to cooperate with the American Red Cross in times of
emergency, providing communication between headquarters and
areas affected by storms, floods, earthquakes, and similar
catastrophes when other means of communication fail.
"During the past year amateur stations rendered val¬
uable service to the public. Beginning early in July, 1935, with
the flood in the Finger Lakes region of New York State, and con¬
tinuing through the severe sleet and snow storms of the past
Winter, the amateurs furnished in many cases the sole means of
communication between the stricken areas and outside aid. Their
services to the public during the disastrous floods of this
Spring, which affected 14 States and isolated 20 large cities,
were outstanding.
"Many amateur stations participated in the Navy Day
competition held on October 28, 1935, when a message from the
Secretary of the Navy to all amateurs was transmitted from the
naval radio stations at Arlington, Va., and San Francisco, Cal.
"On November 11, 1935, the Chief Signal Officer of
the United States Army transmitted a message to members of the
Army Amateur Reserve system. These yearly events stimulate
interest, encourage accuracy in receiving, and enable amateurs
to test their skill and proficiency in the International Morse
Code.
"Continuing the Commission’s policy to encourage
technical developments and operating proficiency in the amateur
service, a number of rules respecting this service were revised
during the past year. The technical and engineering require¬
ments were increased with respect to the equipment used by
amateurs, and on June 2, 1936, the Commission increased the code
speed requirement from 10 to 13 words per minute.
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1/22/37
"The Commission has been requested to allocate addi¬
tional frequencies for radiotelephony in the 3,500-4,000 kilo¬
cycle amateur band in order to relieve some of the congestion
existing in this frequency band due to the large number of
amateur radiotelephone stations in operation. The Commission
finds, however, many amateurs oppose any change being made in
the present amateur frequency allocation. In order that all
interested parties may be given an opportunity to present their
views, a public hearing was set for October 20, 1936. "
XXXXXXXX
BELGIAN CONGO NATIVES DISCARD DRUMS FOR RADIOS
When the natives of the Belgian Congo lay aside their
hollow log drums and native musical instruments and tune in the
white man’s jazz and symphonies, most of them do so with the
aid of American radios.
American radio receiving sets in the Belgian Congo
constitute 75 percent of the total and of the nine different
makes of radios on sale there, seven are of American manufacture,
according to a report from the American Consul there, made pub¬
lic by the Commerce Department.
Although the white colony in the Belgian Congo numbers
only about 20,000, the market for radios is very active and
last November there were 1,421 receiving sets registered, at
least 1,200 of them having been imported since July 1st.
XXXXXXXXX
THERAPEUTIC MACHINES OFFER THREAT TO TELEVISION
The increasing use of electrical therapeutic machines
on the part of hospitals and physicians, as well as the general
public, has created a new type of interference to radio com¬
munications, according to the Federal Communications Commission's
Engineering Department.
Discussing this type of interference in the FCC
report to Congress, T.A. M. Craven, Chief Engineer, says:
"It was ascertained that the use of a diathermy
machine in this country could interrupt an international radio
communication service. Further, preliminary investigation indi¬
cates that interference caused by this type of machine may
affect seriously the value of television broadcasting. In addi¬
tion to this type of interference, the interference caused by
the ignition system of an automobile may have a serious effect
10
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1/22/37
upon the usefulness of the new portion of the radio frequency
spectrum above 30,000 kc. which is now being developed. Pre¬
liminary investigations inaugurated by this Commission indicate
that the problem is soluble, if the cooperation of the manu¬
facturers of therapeutic machines, the manufacturers of radio,
and the automobile industry can be obtained. However, at this
time the Commission’s investigation of this phase of radio
interference is not completed. "
XXXXXXXXXX
EDUCATIONAL PROGRAMS 40 % OF TOTAL ON MOSCOW STATIONS
Approximately 40 percent of the hours of broadcasting
on Moscow stations during 1936 were devoted to programs of an
educational nature, according to a report to the Commerce Deuart-
raent from Loy W, Henderson, U. S. Charge d’ Affaires at the Fussian
capital.
American networks devote about 25 percent of their time
to educational broadcasts.
With the exception of a small number of amateur trans¬
mitters, all broadcasting and radio transmission stations in the
Soviet Union are owned and operated by State organizations. The
maintenance and management of the technical equipment of general
broadcasting stations are in the hands of the People’s Commis¬
sariat for Communication of the U. S.S.R., while the broadcasting
is controlled and supervised by the All-Union Radio Committee,
which is attached to the Soviet of Peoole ' s Commissars of the
U.S.S.R.
The All-Union Radio Committee is a central body which
carries out the radio broaaca sting programs of the main sta¬
tions in Moscow and supervises the activities of seventy local
committees in different parts of the Soviet Union.
"The operations of the All-Union Fadio Committee and
of the local radio committees proceed in accordance with plans,
the broad outlines of which are made in advance for periods of
considerable length", Mr. Henderson reported.
"Advertising in the sense in which that term is
usually understood is not broadcast by Soviet radio stations.
Such advertising as is broadcast is in the nature of informa¬
tive bulletins advising the listeners as to the places where
certain goods may be purchased, where certain services will be
performed, and so forth, and is for the benefit of the prospect¬
ive purchaser rather than for the benefit of the seller.
"Foreign business firms have not, apparently, at any
time advertised over the Soviet radio broadcasting system. It
is believed, moreover, that advertising over the Soviet radio
would not, in view of the Soviet Government monopoly of foreign
trade and other factors of merchandising peculiar to the Soviet
union, achieve the purposes for which intended since such
factors would seem to obviate the necessity for that type of
advertising. "
XX XXXXXXXX
- 11 -
cr
1/22/37
RCA TESTING TELEVISION WITH NEW FCC STANDARDS
The first tests of high definition television using
the new standards which have been recommended by the radio
industry to the Federal Communications Commission are now being
conducted by engineers of the Radio Corporation of America and
the National Broadcasting Company.
Images scanned by the RCA iconoscope, the pick-up
tube, at the rate of 441 lines per frame have been transmitted
from the NBC experimental station in the Empire State Tower
and successfully received by selected number of experimental
television receivers in the homes of ^CA-NBC engineers and
technicians.
"Pictures of 441 line definition are much clearer
than those of 343 lines, the definition employed in previous
tests from the Empire State", said Lenox Lohr, President of NBC.
"Another significant advance has been made in our work of tele¬
vision development. As we proceed in this fascinating adventure
of bringing radio sight to distant eyes, it is encouraging to
be able to report this substantial progress. "
"The development of television service", said Mr.
Lohr, "promises to be orderly and evolutionary in character and
is a tribute to the radio industry which has enjoyed public
favor on a scale that is most encouraging to its future. The
public may purchase present day radio receiving sets with con¬
fidence as to their continuing serviceability. Television
receiving sets cannot precede a television program service of
satisfactory quality, which will be available at the beginning
only in sharply restricted metropolitan areas following the
eventual solution of technical, economic and program problems."
X X X X X X X X
DUN & BRADSTREET SAYS RADIO CLIMB WILL CONTINUE
Radio production, sales and broadcasting set new high
records in 1936, and further advancement is expected in 1937,
according to a report by Dun and Bradstreet.
Wage increases, expanding employment and rising auto¬
mobile production were listed as factors likely to continue the
prosperous condition of the industry this year. It was also
stated that replacement sales may reach a new peak through
improvements and new home construction.
More than 1,400,000 new homes were sunplled with sets
in 1936, bringing the total to nearly 25,000,000, it was report¬
ed. A new high in national advertising during the Summer was
noted as contributing to gross time sales for the year, esti¬
mated at more than $1,000,000. Production ranged from 2o to 25
percent higher than 1935, the report said.
XXXXXXXXXX
- 12 -
. IIMU UUIVirAlH, INC,
GENERAL LIBRARY
HEINL RADIOKESusT^ESSY°lLfe¥TER
2400 CALIFORNIA STREET WASHINGTON, D. C.
C O N F I D E N T I A L — Not for Publication
„ j._ _ L j ,, ^ , _ JL
INDEX TO ISSUE CF JANUARY 26, 1937.
Crosley Cincinnati Loss Heavy; Main Plant Saved . 2
RMA Denounces Public Exhibits Of Radio Receivers . 3
WHAS, Louisville) Does Heroic Service .
Miniature Radio Tube Found Of Medical Value. . .
Radio Exports Set Mark; Wages Show Small Gain.
Ford Protests Spot Ads Adjacent To Own Program
Radio Stations Direct Relief In Flood Areas . 7
FTC Cracks Down On "Me rmola" Advertising . 8
U. S. Radio Sets Popular In Liberia Market . 9
RCA Adds Brazil To Commercial Nets Carrying Opera . 9
Industry Notes . 10
Zenith Employees Present Plaque To Management . 11
NBC Expancts South American Short Wave Service . 12
Bendix Forms Radio Equipment Corporation.. . 12
No. 999.
lO iO to to
January 26, 1937
CROSLEY CINCINNATI LOSS HEAVY; MAIN PLANT SAVED
Although preliminary estimates are to the effect that
the Crosley Radio Corporation fire loss during the flood at
Cincinnati Monday night may be in the millions, luckily the main
plant escaped disaster and will reouen as soon as recession of
flood waters and restoration of power facilities permit.
The company's refrigerator cabinet assembly factory
was destroyed, a telegram said, but orders will be filled in
increasing production at a similar plant at Connersville , Ohio.
The following telegram was received today (Tuesday)
by the Heinl News Service from Bill Bailey, press representative
of the Crosley Corporation?
"Your wire just reached me due to heavy traffic
and temporary setup. Two buildings of Crosley Radio
Corporation destroyed in fire that swept four square
blocks. Building K, the main warehouse, and Building
L, refrigerator unit, destroyed. Total fire loss
based on buildings two million, half of which was suf¬
fered by Crosley.
"Have been unable to contact Lewis Crosley for
definite amount but apparently the loss will mount
less over a million due to large number of radios
and refrigerators in warehouse. Main plant which
houses studios undamaged except for broken windows
despite fact fire raged on three sides of the plant. "
The operation of Station WLW, whose transmitter is
at Mason, Ohio, a short distance north of Cincinnati, was
apparently unaffected by the flood as it could be heard broad¬
casting flood relief messages.
XXXXXXXXXX
Television and facsimile transmission by radio will
be nearly ready to pop in 1937, bearing problems that call for
the best thought the newspaper industry can give them, says
Editor & Publisher editorially.
XXXXXXXXXX
- 2 -
RMA DENOUNCES PUBLIC EXHIBITS OF RADIO RECEIVERS
The Board of Directors of the Radio Manufacturers'
Association this week advised RMA members that it is opposed to
public exhibitions of radio receiving sets by set manufacturers
or distributors, according to Bond Geddes, Executive Vice-Presi¬
dent.
At the same time Mr. Gedaes aisclosed that the RMA
Directors had indorsed a Radio Parts Manufacturers' National
Trace Show to be held at the Stevens Hotel, Chicago, June 10-13,
and a similar show in New York, October 1-3.
"Exhibition of receiving sets in trade shows and
public shows, by set manufacturers or distributors, is not help¬
ful to business and is not approved, accoraing to a show policy
determined unanimously by the RMA Board of Directors at its
recent meeting in Chicago", Mr. Gedaes said. "RMA set manu¬
facturers are being requested to refrain from such exhibitions
and also to request their distributors not to participate in
such shows.
"The RMA Board aborted formal resolutions following
a questionnaire of set manufacturers by the Association, with
unanimous sentiment in ooposition to such exhibition of receiv¬
ing sets.
"The R MA resolutions follow:
"Whereas this Board has given careful considera¬
tion to the advantages and disadvantages of exhibiting
receiving sets in trade shows and public shows, and
"Whereas receiving set manufacturers of this
Association were ca.nvassed by questionnaire on such
advantages and disadvantages, and
"Whereas answers to such questionnaire by receiv¬
ing set manufacturers clearly manifest the opinion
that the disadvantages and the expense of such exhibi¬
tions do not warrant the manufacturer of receiving sets
to exhibit at such shows or to support them financially
directly or indirectly ana that exhibiting thereat
deters rather than promotes the sale of receiving sets,
"Resolved, That this Board considers the exhibition
by manufacturers of receiving sets as detrimental to the
industry and therefore condemns the practice and strongly
recommends to its receiving set manufacturers not to
exhibit or to suoport financially, directly or indir¬
ectly, any trade or public snows;
"Resolved, That the manufacturers of receiving sets
be requested to urge upon their distributors not to
participate in such shows. "
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Formal endorsement of the radio parts shows by the
RMA was given at the same meeting of the Directors in Chicago,
and it was also arranged to hold the annual RMA Membership meet¬
ings and convention at the Stevens Hotel on June 8-9, immed¬
iately preceding the June parts and accessory trade show. Dur*-
ing the June show the annual convention and meetings of the Sales
Managers Clubs and the Institute of Radio Service Men also will
be held. Ken Hathaway, President of the Institute of 'Radio
Service Men, is Managing Director of the shows.
Details of the arrangements for conducting the shows
are given in the following announcement:
"The Radio Parts Manufacturers National Trade Show has
been incorporated as a corooration, not for profit, to sponsor,
promote, and conduct national exhibitions of (1) replacement
parts, test and laboratory equipment for the service man; (2)
public address equipment; end (3) amateur and short wave equip¬
ment. The formation of the above mentioned corporation was
agreed upon at a meeting of representatives of the Sales Managers
Clubs and the Parts Division of FMA at a meeting held in Chicago
on November 16, 1936; and the first meeting of the Board of
Directors of the Corporation was held in New York City,
December 16, 1936.
"The Show Corporation is the result of more than six
months of negotiation, during which time the leaders of the
industry were endeavoring to effect an arrangement that would
be all-inclusive as to representation and scope. The By-laws,
as adopted at the December 16 meeting, require that two of the
members of the Board of Directors shall represent companies
that are members of RMA and two shall represent companies that
are members of the Sales Managers Club. The Directors hold
office for one year ana are elected at the annual meeting of
the member-exhibitors held during the Chicago National Trade
Show.
"The Board of Directors as now constituted consists of
A. A. Berara, Arthur Moss, S. N. Shure , and Fred D. Williams.
Messrs. Moss and Williams represent RMA; Berard and Shure repre¬
sent the Sales Managers Clubs.
"The officers are Mr. Shure, President; Mr. Berard,
Vice-President, and Mr. Moss, Secretary-Treasurer."
xxxxxxxxxx
A broadcasting station with a power of 100 KW is con¬
templated for Tunis, according to M. Guillon, the Resident-
General, the cost of the transmitter being paid by the French
Government and that of the installation by the dependency.
M. Guillon indicated that the expense could be covered by the
receipts from wireless taxation and from publicity.
xxxxxxxxx
- 4 -
1/26/37
WHAS, LOUISVILLE, DOES HEROIC SERVICE
Plainly heard over the entire eastern part of the
United States, much praise was reported for the splendid floo;;
relief work done by Station WHAS, operated by the Louisville
Courier- Journal. Apparently this station abandoned all com¬
mercial programs and aevoted its entire time to emergency bul¬
letins in connection with the flood.
Evidently the station was never off the air and
handled appeals of the most thrilling character, such as rescue
boats being overturned, and other messages equally urgent, at
all hours of the day and night. At times, however, the station
sounded weak as if operating on battery power when the city's
electric supply went out.
Official broadcasts from the Governor of Kentucky,
the Mayor and the Chief of Police at Louisville cleared through
WHAS, which was also a part of an emergency network of sta¬
tions of which Nashville, Indianapolis and other cities nearby
seemed to be a part.
Approximately 100 officers and 800 enlisted men in
the Naval Communication Reserve were operating 200 radio sta¬
tions in connection with rescue and relief work in the flooded
areas. In several areas the stations, operating on batteries,
took over the communication work of regular stations paralyzed
by the failure of electric current.
The nine control stations are located at Pittsburgh,
Wheeling, W. Va. , Huntington, Norfolk, Chicago, Akron, Cincinnati,
Louisville and Centralia, Ill*
XXXXXXXXX
MINIATURE RADIO TUBE FOUND OF MEDICAL VALUE
The world's tiniest radio vacuum tubes, producing wave
lengths one centimeter long, or about a third of an inch, have
proved efficient in tests and may be of medical value, according
to Professor G. W. Potapenko, at Pasadena, California.
The physicist, who, with Dr. C. Y. Men, developed the
tubes, pointed out to students and scientists at the California
Institute of Technology that wave lengths of about one meter
have been used for some time in medical therapy.
"Waves of about one Centimeter previously could be gen¬
erated only by using s.park oscillators or magnetrons", said Prof¬
essor Potapenko, "But waves generated by spark oscillators are
not constant in energy and those produced by magnetrons are not
constant in length. Recent tests show waves produced by our
tiny tubes are constant both in energy and length, which we
hope will make them highly valuable in biology, medicine and
perhaps chemistry. "
XXXXXXXXXX
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1/26/37
RADIO EXPORTS SET MARK; WAGES SHOW SMALL GAIN
All monthly records for radio exports were broken last
October with a total exportation of S3, 246, 129, according to the
report of the U. S. Bureau of Foreign ana Domestic Commerce,
which showed an increase of 19.6 percent over exports of
$2,714,113 in October, 1935. The exports of receiving sets end
also parts and accessories was the largest in any month on
record. The previous record in radio exports was established in
November, 1935, with a total of $2,892,778, but the radio exports
last November were slightly under this previous peak, totaling
$2,587,819.
Radio factory employment last October increased only
.9 percent over September, according to the current U. S. Bureau
of Labor Statistics report, and October employment was 5.4 per¬
cent less than that during October 1935.
October showed an increase of 10.5 percent in radio
factory payrolls over the previous month of September, 1936.
The October payrolls, however, were only .2 over those of October,
1935*
Average weekly earnings during October of radio factory
employees were reported at $21.55, an increase of 9.5 percent
over September, 1936, and 5.8 percent over weekly earnings during
October, 1935. The October national average of all manufacturing
industries was $23.46, while the national average of all durable
goods manufacturing establishments was $26.45.
XXXXXXXX
FORD PROTESTS SPOT ADS ADJACENT TO OWN PROGRAM
The Ford Motor Company has registered an official pro¬
test with the Columbia Broadcasting System and with the National
Broadcasting Company against the practice of injecting commercial
announcements during the chain break immediately preceding or
following its radio programs, according to Newsdom. Both broad¬
casting systems took the protest under advisement but declined
comment.
’’The practice of slipping in extraneous commercial
spots, we feel, is unfair to the sponsor and to the public", the
protest read in part. "We have received numberous complaints
substantiating this, and believe the time has arrived for broad¬
casting companies to take cognizance of this situation. "
The statement "offers no objection to spots or commer¬
cials used in connection with sustaining programs, provided they
do not immediately follow a sponsored program. "
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1/26/37
The complaint was based on the thesis that the sponsor
of a unit of radio time - 15 minutes, 30 minutes, or an hour - is
entitled to the undivided attention of the audience from chain
break to chain break.
As a matter of consistency, the Ford company announces
that it would discontinue all of its own spot chain-break announce
ments. Ford maintains three shows on the air: one over WABC
Sundays from 9 to 10 p.m. ; another over the same station Tuesdays
from 9 to 9:30 p.m., and the third over WJZ Fridays from 9 to
9:30 p.m.
XXXXXXXXXXX
RADIO STATIONS DIRECT RELIEF IN FLOOD AREAS
"Radio broadcasting played a tremendous role yesterday
in the battle of the Ohio and Mississippi Valleys against the
worst flood in their history", the New York Times reported Jan. 26.
"The dramatic 'calling all boats, calling all boats'
was a constant appeal for help throughout the day from the power¬
ful transmitters of Stations WHAS and WAVE at Louisville, WLW and
WKRC at Cincinnati and an unprecedented emergency network of
Columbia and NBC cooperating stations.
"The broadcasters remained continuously on the air to
link police and relief headquarters and rescuers. Boats and
patrol cars throughout the great valleys were equippedto pick up
appeals relayed in behalf of those cut off by the climbing waters.
"Even when its power was shut off temporarily, the crew
of WHAS, Louisville, continued to relay its messages to cooperat¬
ing stations which included CBS stations linked through WBBM,
Chicago; and the transmitters of WSM, Nashville; and WFRM,
Indianapolis.
"Radio was called into play be Mayor Neville Miller
of Louisville to appeal to three other cities for emergency fire
apparatus. A new fire had been reported in a distant section of
the city just before the Mayor's appeal was read over WEAF's net¬
work. Knoxville, Chattanooga and Pittsburgh were called upon.
Of the first two, at least two companies of fire apparatus were
requested. Pittsburgh was urged to send the equipment already
offered, with the advice that to send it by way of Knoxville
would avoid the worst of the flooded areas.
"Falling electric power and extraordinary technical
difficulties were overcome in maintaining radio in service of
the local, State and Federal relief agencies.
"Appeals for succor and the story of devastation and
heroism kept the Cincinnati and Louisville stations and many
others in an emergency hook-up from early morning throughout the
day and night. Intermittent switches brought news of the disaster
to a nation-wide audience.
"When police radio equipment at Portsmouth, Ohio, was
crippled early yesterday, the NBC mobile unit at WTAM, Cleveland,
supplied police broadcasting service. Alvin McMahan and Frank E.
7
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Whittam, engineers, operated the short wave unit most of the
morning, maintaining communication in the flood area with State
police and Portsmouth Scout cars.
"Station WAVE, the NBC outlet at Louisville, was able
to resume broadcasting yesterday morning after a generator that
had been sent by plane from Chicago was put into service.
"WLW placed its broadcasting facilities at the disposal
of relief agencies. The plea was made that no calls be put
through regarding information concerning damage to life and pro¬
perty, but listeners were assured that all people in the Cincinnati
area would be properly cared for through the speedy work of mobil¬
ization.
"WSAI , the NBC outlet of WJZ * s network in Cincinnati,
had been without power since Sunday night. Then it was damaged
by fire, the National Broadcasting Company reported,
"Other broadcasts were heard from Pittsburgh, through
KDKA; Portsmouth, Ohio, via the Mobile unit of WTAM; from Coving¬
ton, Ky. , over WCKY and from Chicago. "
XXXXXXXXXX
FTC CRACKS DOWN ON "MARMOLA" ADVERTISING
Raladam Company, of Detroit, has been ordered by the
Federal Trade Commission to cease and desist from certain mis¬
representations in the sale of its produce "Marmola", advertised
as a weight-reducing preparation. Such misrepresentations are
held to constitute an unfair method of competition in violation
of Section 5 of the Federal Trade Commission Act. Broadcasting
stations which have carried "Marmola" programs have previously
been called to task by the Federal Communications Commission.
Containing as its active ingredient desiccated thyroid
maae from the thyroid glands of certain food animals, Marmola is
said to have been advertised in a manner implying that thyroid
deficiency is a common cause of excess fat, that thyroid should
be taken for reducing, that "Marmola is for the average case",
provides "the right way to reduce", and that "this modern method
of reduction is now used by doctors the world over. "
Findings in the case, based on distinguished medicpl and
scientific opinion, are that only a. small proportion of cases of
over-weight result from thyroid deficiency; that in many cases
the respondent company's product cannot be safely used, and in
any case should be taken only on the advice of a physician.
The order to cease and desist prohibits certain mis¬
representations concerning Marmola and its thyroid ingredient and
also directs the Raladam Company to discontinue representing that
it makes a full and complete disclosure of the properties and
effects of Marmola unless and until it does in fact make such
disclosures.
XXXXXXXXXX
- 8 -
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1/26/37
U. S. RADIO SETS POPULAR IN LIBERIA MARKET
"No radio equipment is manufactured in Liberia and
all requirements of receiving sets and accessories are filled by
imports from abroad, imports being about equally divided between
European countries and the United States", the U. S. Bureau of
Foreign and Domestic Commerce reports. "The demand is for table
models of receiving sets of both electric and battery power,
equipped with aeroplane dials marked with names of stations.
Price preference ranges from about $24 to $72. American sets
continue to be popular.
"As a rule radio sets are not kept in stock, being
imported on individual order. At present, however, it is report-
ed that there are 14 receiving sets in stock in Monrovia. The
market at best is small and appears to be well exploited by
exclusive agents of 3 well-known American makes of sets and
tubes. At the clase of September last year there were approxi¬
mately 130 private receiving sets in all of Liberia.
"There is no local standard or short-wave broadcasting,
but all American, as well as other short-wave programs are heard
here so far as weather permits. There are no relay systems."
XXXXXXXX
RCA ADDS BRAZIL TO COMMERCIAL NETS CARRYING OPERA
Radiobras at Rio de Janeiro, Brazil, last week began
broadcasting the regular Saturday matinee performances of the
Metropolitan Opera Company in New York, heard in this country
over networks, under the sponsorship of the Radio Corporation of
America.
Radiobras is the second major South American broad¬
casting company to inaugurate a series of commercially sponsored
raaio programs from the United States in less than a month.
Announcement that Radio Splendid at Buenos Aires, Argentina,
would broadcast the Metrooolitan Opera was made January 7th.
Thus, South America's two largest nations are receiving the first
series of commercial programs ever sent from this country to a
foreign nation other "than Canada,
The opera programs are transmitted to Radiobras and
Radio Splendid, by arrangement from New York over a commercial
short-wave channel of P.C.A. Communications, Inc. Announcements
and commercial credits, in Portuguese by Radiobras and in Spanish
by Ppdio Splendid are added to the broadcasts at Rio de Janeiro
and at Buenos Aires.
XXXXXXXXX
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INDUSTRY NOTES
The National Broadcasting Company’s lease of Station
WMAL has recently been extended for three years, it was announced
by Major Lenox R. Lohr, President. The existing lease, which
covered a five-year period, will expire December 31st of this
year. Major Lohr completed negotiations for extention of the
lease with the M.A. Leese Radio Corp. , owners of WMAL.
New Jersey’s Alcoholic 3everage Control Commissioner
last week held that liquor advertising on the radio was undesir¬
able because it could not be kept out of the homes.
Asked if a Phillipsburg liquor distributor could
legally sponsor a contest on the radio with a case of beer as
the prize, Commissioner D. Frederick Burnett said there was no
rule against it, but one would be promulgated if the practice of
holding such contests were started.
Charges of participating in an assault upon a ship's
radio operator, filed against Hoyt Haddock, President of the
American Radio Telegraphers Union in New York, have been dismiss¬
ed, District Attorney George Dorsey said at Spring Valley, N.Y. ,
last week. The Rockland County District Attorney obtained the
order releasing Haddock last week at the home of Police Judge
Robert Finkelstein, two days before a scheduled hearing.
Three other union members are still awaiting a grand
jury hearing on a charge of assaulting Robert Wolfe, Munson Line
radio operator, in his home after binding his sister and mother.
A fourth man is being sought.
"With the Federal excise tax figures for 1936 showing
an increase of 51 percent over 1935, when radio set sales numbered
6,000,000 sets, it becomes increasingly apparent that 1936 was
at least an 8,000,000 set year, although basic license-bureau
figures for the final quarter are not yet available", according
to Radio To day .
"At 8,000,000 sets, 1936 in unit production is thus
82 percent ahead of America’s business-peak year of 1929, when
unit radio production was 4,400,000 sets. Measured in dollar
volume, owing to the lower unit prices in 1936, 1936 radio
volume is 25 percent below the $600,000,000 retail peak of 1929."
An order to cease and desist has been entered by the
Federal Trade Commission against F. L, McWethy, 329 Michigan Ave.,
Marshall, Mich. , prohibiting him from representing in advertis¬
ing matter or in radio broadcasts that "McWethy' s Home Treatment",
which he sells in interstate commerce, is an effective remedy or
a cure for bladder, prostatic, kidney or bowel troubles, and
that it reaches all of the underlying causes of such ailments.
XXXXXXXXX
- 10 -
1/26/37
ZENITH EMPLOYEES PRESENT PLAQUE TO MANAGEMENT
When, next February, the Zenith Radio Corporation of
Chicago, moves into its mammoth new plant, recently acquired,
the entrance hall will contain an impressive bronze plaque. The
plaque was presented Christmas Eve to Commander E. F. McDonald, Jr. ,
President of the Company, and to the other officials, by the
entire boay of Zenith employees as an expression of loyalty to
the organization.
On the surface of the bronze, measuring two and a
half feet by nineteen inches, are engraved the following words:
"To the Directors and Officers of the Zenith
Radio Corporation --- We believe in your wisdom and
fairness - We assure you of our loyalty and effort -
We are proud of this partnership - "
In accepting the plaque for the Company, Commander
McDonald told the employees:
"Nothing could have made my Christmas happier, nor
more complete, than the sentiment that was expressed by all of
you in the lovely bronze plaque with which I was surprised
Christmas Eve.
"I wish to express to you not only my appreciation,
but the appreciation of the Officers and Directors of Zenith for
the wonderful thought that the bronze represents. You have made
the Officers, the Directors and me particularly happy with the
last sentence wherein you say, 'We are proud of the partnership'.
That word 8 partnership' means much to us and it is our intention
to make it even more a partnership as the years go on. "
Over the wording described, the plaque contains symbolic
illustrations showing on the one side, executive and office per¬
sonnel, and on the other side, figures representing men and women
of the various manufacturing departments, advancing into the fore¬
ground toward a central motive, a symbolization of a Zenith radio
cabinet. Before this central design, the two leading features
stand hand-in-hand, pledging cooperation and loyalty to one
another.
XXXXXXXX
The Turkish Government will shortly let contracts for
the construction of two new radio broadcasting stations, to be
located at or near Ankara. It is understood that one of these
stations will be a 60,000 or 70,000 watt long of medium wave
broadcasting station, and the other will be a 10,000-watt short
wave transmitter.
XXXXXXXX XX
11
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NBC EXPANDS SOUTH AMERICAN SHORT WAVE SERVICE
With the launching of a new weekly program of Broadway
comment on Tuesday, January 26th, the National Broadcasting Comoapy
will have programs produced especially for reception on South and
Central America on the air seven days a week over its short-wave
transmitter, W3XAL, at Bound Brook, N. J.
Francesco J. Ariza, a native of Mexico, who has lived
many years in New York, will be the commentator. He is a magazine
writer and editor. His talks will be filled with up-to-the-minute
information about the new Broadway shows, human interest angles
about the actors and others who take part in the ga.y life along
New York's white way.
Dan Russell, Spanish- speaking announcer, will round out
the program with a brief summary of news about inter-American
events. Russell and Charles Carvajal, Spanish-speaking production
man, are in charge of NBC's South American broadcasts, arranging
and producing all of the programs.
The addition of the Tuesday night feature brings the
South American schedule up to seven days a week, with half-hour
broadcasts on week days and a full hour broadcast on Sundays.
Special entertainment features, supplemented by brief news reports,
are presented during the week.
XXXXXXXXXX
BENDIX FORMS RADIO EQUIPMENT CORPORATION
Vincent Bendix, manufacturer of airplane parts and equip¬
ment, last week in New York announced the organization of the
Bendix Radio Corp. , with himself as president, and he described
it as "the largest organization of its kind in the world. tr
The company, absorbing Radio Research Co. , Inc. , of
Washington, Radio Products Co., of Dayton, Ohio, the William P.
Hillyard Co. , and the Jenkins and Adair Co. , of Chicago, will
specialize in a directional radio compass for private and trans¬
port planes.
XXXXXXXXX
Anti-trust suits brought by the General Talking Pictures
Corporation and the Duovac Radio Corporation against the American
Telephone and Telegraph Company and the Western Electric Company
were dismissed last week by Federal Judge John P. Nields, in
Wilmington, Del.
XXXXXXXXXX
12
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NA I lUlMAL bn UADI, Ac 1 IMG COMPANY, iNr
GENERAL LIBRARY
Heinl Radio?
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
Mi 3 0 1337
VV A V N E L . i'i A i s D ALL
INDEX TO ISSUE OF JANUARY 29, 1937
Signal Officer Ponders Place Of Radio In Next War..... . 2
Three New Stations Authorized 3y FCC . 4
Mrs. Janet van Loon Joins U. S. Radio Script Staff . 5
Gen. Harbord Is N.Y. Red Cross Flood Director . 5
20 Stations Experiment With Television In U.S . 6
"RCA Review" Covers Varied Phases Of Radio Progress . ....7
FCC General Counsel Lauds Works Of Stations In Flood . 7
Approval Of WJR-WGAR Deal Recommended By Examiner . . . 8
Two University Stations Proposed In California Bill . 8
Blackett-Sample-Hummert , Inc., Leads Agency Spenders . 9
BBC Television Received 60 Miles Away . 9
Amateurs Restricted During Flood Emergency . 9
Editorial Praises Role Of Radio In Flood.... . 10
Washington Dealer Barred From Using "RCA" . 10
Says Television Hasn't Improved Benchley Humor - Yet. . 11
WBZ, Boston, Applies For 500 KW . . . 12
KRGV Pays Dividend Of $7.50 A Share . IS
Two Indiana Stations To Join NBC . 12
No. 1000
SIGNAL OFFICER PONDERS PLACE OF RADIO IN NEXT WAR
The role of radio communication in the next greet
war has no lesser personality than Ma j . Gen. J. B. Allison,
Chief Signal Officer, wondering.
Writing in the current "Signal Corps Bulletin" on the
topic, "Has the Mary too Much Radio?", General Allison admits
many of the weaknesses of radio on the field of battle but also
points out that for many communication services "it's radio or
nothing".
He concludes that only another war can prove the
value of much of the new radio equipment which the Army is add¬
ing constantly.
"In some quarters the growth of our radio organiza¬
tion is viewed with apprehension", he said. "It is true that
the number of different types of sets, the total number of sets
and the number of men assigned to operate them have all con¬
tinued to increase.
"It is a truism to say that we are living in a mar¬
velous age. It is trite to mention that radio has had an amaz¬
ing evolution from the crude, heavy, power-consuming sets of a
former period to the finished, light, efficient equipment which
we have today. The Army has also greatly changed during this
period. It has become more and more complex with each passing
year and its means of transport has continued to speed up.
"Our changing Army is constantly finding new needs
for radio; and radio itself is ever improving its ability to
serve these new needs while serving the old needs better than
before. Because of these things, our radio organization which
filled the bill in 1916 was ancient history in 1926, and in
turn our 1926 set-up would look like the horse and buggy days
now. We just cannot imagine the GHQ Air Force, the Mechanized
Brigade or the first Cavalry Division without modern radio. Nor
could the commanders of these organizations hope to coordinate
the action of their commands without it.
"When I am asked the question ’•Has the Army too much
radio?', I know the questioner believes the proper answer to be
'yes', and I assume he has seme definite phase of the problem in
his mind. The questioner usually has in mind one or more of
five different phases of the problem, such as:
"Question - Radio is slow, unreliable, subject to
enemy jamming, intercept and goniometric location. It does not
2
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1/29/37
compare in reliability or usefulness with the wire telephone or
telegraph. Why not therefore soft pedal the former and con¬
centrate on the latter?
"Answer - The premise is correct and well recognized.
Units which can hope in active operations to keep up wire com¬
munications, plan to do so. With them, radio is merely a con¬
tingent or auxiliary means to be resorted to when their respect¬
ive wire systems have failed or before they are put in. The
main effort of the communication troops of such units is
naturally toward the upkeep of their wire systems. On the
other hand, air-air and air-ground communications and those
within mechanized and horse cavalry must obviously depend upon
radio for long distance and immediate action communications.
With them, radio has priority. They recognize its disadvantages
but they realize it is radio or nothing. I am happy to say that
radio is giving them satisfactory service. That they will have
much more serious difficulty with radio when in contact with
the enemy than in peacetime maneuvers, no one doubts. The
effectiveness of radio for the next war, like that of air
operations, can obviously never be proven until the opposing
forces are in contact. Meanwhile, against such a test, we
are striving to put into the field the best equioment in the
world and a radio organization capable of handling it effectively.
"Question - Because of its complexity of equipment,
because of its lack of secrecy and because of its wide frequency
channel, should not radiotelephony be curbed and should not
Army field radio sets be built for radiotelegraph operation
only?
"Answer - After considering all sides of the radio¬
telephone problem, I continue to view its use with distrust
because of its lack of secrecy and its wide frequency channel.
Pending results of teqts of radio secrecy and collection of
further information on use of frequency channels, I believe it
wise for the using arms to fully investigate the tactical pos¬
sibilities of voice transmission. But they must be prepared to
use the telephone with the serious restrictions which will have
to be imposed.
"Question - A war strength field army under present
alio wances will have about 2,000 radio sets in more than 327
separate nets. So many nets cannot operate on the available
frequencies without mutual interference. This being so, why
not take much of this equipment away from the troops now bur¬
dened with it and leave only those sets which can all operate
at the same time? This would avoid some of the confusion we
now experience in radio operation and would save men for the
firing line. Moreover, the money which is now spent on this
surplus radio equipment could be utilized for other things
which we sorely need.
3
1/29/3?
"Answer - Before answering this question we shall
ask and answer a question of our own, 'Who are the troops pre¬
sumed to be burdened with radio equipment which they cannot
use?' Obviously not the Air Corps, Cavalry or mechanized troops
There are left then, the Infantry, Field Artillery, Anti-air¬
craft Artillery, and Signal Corps. These troops are apparently
assumed to be so burdened. But are they in fact? It is true
that the former, more speedy group will require the lion's
share of the limited frequencies and that there may be too
few channels left over to permit all nets of the latter group
to operate simultaneously. However, before we make this a
positive statement and say there definitely will be too few
channels, we must know the character of operations in which we
shall be engaged. If these operations will be similar to those
on the 'Western front' in 1918 then there is no question about
it; there will be too few channels to go around and some modifi¬
cation will have to be made in the normal organization of our
radio nets.
"But many strategists find it difficult to visualize
operations on the North American Continent similar to the trench
warfare stalemate of the 'Western front. ' They picture swift-
moving thrusts by forces operating with strategic coordination
but with considerable tactical independence and with wide inter¬
vals between adjacent forces. The main ideas are strategic
speed, surprise and fast moving drives against vital points. If
the operation of a force is blocked it will not necessarily
dig in and organize for a head-on attack against a prepared posi
tion. Rather will it seek to withdraw and to move with speed
to strike a telling blow elsewhere. It will abandon its
strategic mobility only as a last resort. If this be the likely
character of our future operations, we shall need all our radio
nets and shall be able to operate them simultaneously. Inci¬
dentally, it would be quite impracticable to maintain wire com¬
munications for operations of this character. "
XXXXXXXXXX
THREE NEW STATIONS AUTHORIZED BY FCC
Three new broadcasting stations were authorized this
week by the Federal Communications Commission. They are:
Gulf Coast Broadcasting Corp. , Corpus Christi, Tex.,
on 1330 kc. , with 250 watts nighttime and 500 watts daytime,
unlimited hours; C. A. Rowley, Ashtabula, Ohio, 940 kc. , 250
watts, daytime; Southwest Broadcasting Corp., La Junta, Colo.,
1370 kc. , 100 watts, unlimited time.
X X X X X X X X
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1/29/37
MRS. JANET VAN LOON JOINS U.3. RADIO SCRIPT STAFF
Secretary of the Interior Harold L. Ickes this week
announced the appointment of Mrs. Janet van Loon to the script
department of the Educational Radio Project of the Office of
Education. Mrs. van Loon, the daughter-in-law of Hendrik
Willem van Loon, noted writer and commentator for the National
Broadcasting Company, will write a series of radio scriots on
the functions of municipal government.
The first series will be written about some community,
as yet to be announced, near New York City, and will be produced
over a local radio station. This series will be written wholly
on an experimental basis and will be used as the model for
another series of programs to be offered to local broadcasting
units all over the country by the Radio Script Exchange of the
Office of Education in cooperation with the Public Administra¬
tion Clearing House of Chicago.
Mrs. van Loon, a resident of Dorset, Vermont, is con¬
sidered an expert in the script-writing field and is well-known
in both stage and radio circles. Recently she wrote and produc¬
ed a radio series for children over a National Broadcasting
Company network.
Mrs. van Loon's appointment augments a staff of
established script-writers already employed by the Educational
Radio Script Exchange. The Exchange started last Summer when a
series of six scripts called, "Interview With the Past" was
offered to local radio stations, schools, CCC camps, colleges,
civic organizations and other broadcasting units interested in
educational broadcasting. The success of the Exchange was
instantaneous. More than 400 groups asked for the series.
The Office of Education decided to enlarge the
Exchange, so 53 other scrips, which have been listed in a cata¬
logue, have been made available to more than 5,000 educational
and broadcasting organizations throughout the United States and
Canada.
XXXXXXXXX
GEN. HARBORD IS N.Y. RED CROSS FLOOD DIRECTOR
Gen. J. G. Harbord, Chairmen of the Board, Radio
Corporation of America, is in charge of the raising of New York
City’s $1,500,000 flood relief quota for the American Red
Cross.
XXXXXXXXX
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1/29/37
20 STATIONS EXPERIMENT WITH TELEVISION IN U. S.
Although television is still on an experimental basis
in the United States, twenty stations are licensed by the
Federal Communications Commission, an up-to-date list issued
this week discloses.
The National Broadcasting Company and the Radio Cor¬
poration of America hold a half-dozen of these licenses, three
each, and four of them are in the hands of educational institu¬
tions.
W9XAK
W9XG
W9XK
The complete list follows:
2000 - 2100 kilocycles for rural service
Kansas State College of Agriculture Manhattan, Kans.
& Applied Science
Purdue University West Lafayette,
Indiana
University of Iowa Iowa City, la.
42000 - 56000, 60000 - 86000 kilocycles
W2XAX
W6XA0
W3XPF
W9XAL
W1XG
W9XD
W2XBS
W2XBT
W2XF
W3XE
W2XDR
W3XAD*
W3XEP
wioxx
Columbia Broadcasting System, Inc,
Don Lee Broadcasting System
Farnsworth Television, Inc.
( Construction Permit)
First National Television, Inc.
General Television Corp.
The Journal Company
National Broadcasting Co. , Inc.
t» ii it
Philco Radio & Television Corp.
Radio Pictures, Inc.
RCA Manufacturing Co. , Inc.
RCA " '»
RCA " "
(See also at foot of page)
* Licensed to operate on 124000-130000 kc,
New York, N. Y.
Los Angeles, Cal.
Philadelphia, Pa
Kansas City, Mo.
Boston, Mass.
Milwaukee, Wis,
New York, N. Y.
Portable
New York, N. Y.
Philadelphia, Pa
Long Island City
Portable
Camden, N. J.
Portable
only
XXXXXXXXXXXX
Add to 42000-56000, 60000-86000 kc.
W8XAN Sparks-Withington Co.
W9XUI University of Iowa
W9XAT Dr. George W. Young
XXXXXXXXXXXX
Jackson, Mich.
Iowa City, la.
Portable
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1/29/37
"RCA REVIEW" COVERS VARIED PHASES OF RADIO PROGRESS
Articles of interest to the laymen, as well as the
technician, appear in the January issue of "RCA Review", a
quarterly journal of radio progress, Just off the ^CA Insti¬
tutes Technical Press.
David Sarnoff, President of the Radio Corporation of
America, writes an informative history of "Three Decades of
Radio", while two engineers, George McElrath and G. 0. Milne,
describe what went on "behind the scenes" at two NBC broad¬
casts during the NBC Tenth Anniversary celebration in November.
Mr. technical articles on television, automatic
alarms, reproducing equipment for motion picture theatres,
and ultra-high frequency propagation are included for the more
advanced readers.
Charles J. Pannill, ^resident of RCA Institutes, Inc. ,
is Chairman of the Board of Editors, which includes, among
others, the following:
Dr. Alfred N. Goldsmith, FCA consulting engineer;
0. B. Hanson, NBC Chief Engineer; Charles W. Horn, Director of
Research for NBC; Dr. Charles 3. Jolliffe, RCA engineer and
former FCC Chief Engineer; and Frank E. Mullen, Manager of the
Department of Information, RCA.
XXXXXXXXXXX
FCC GENERAL COUNSEL LAUDS WORKS OF STATIONS IN FLOOD
Hampson Gary, General Counsel of the Federal Communi¬
cations Commission, this week highly praised the "valiant and
effective services" that are being rendered by broadcasters in
the flood areas in a luncheon address in Washington.
He said that hundreds of the 45,000 amateur radio
operators licensed by the Commission are volunteering their
services day and night for relief work.
In discussing the rules of procedure for the guidance
of lawyers practicing before the Commission, Mr. Gary said the
agency is aware of the inadequacy of its present rules, but is
"earnestly desirous to render maximum usefulness. " As science
keeps forging ahead, he said, lawyers should keep pace by prov¬
iding "safeguards for the common gooo.. "
Because the radio, the telephone and the telegraph
have made all nations close neighbors, he predicted that the
communications industry would "become more and more a mighty
force in preserving the peace of the world. "
XXXXXXXXX
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APPROVAL OF WJR- WGAR DEAL RECOMMENDED BY EXAMINER
The transfer of all of the outstanding stock of WG-AR
Broadcasting Co. , Cleveland, 0. , to WJR, the Goodwill Station,
of Detroit, was approved this week by Examiner Ralph L. Walker
and recommended to the Federal Communications Commission for
confirmation.
Last September WJR submitted to each of the stock¬
holders of WGAR an offer to exchange shares of stock of the
former for shares of stock in the latter on the basis of 20
shares of WJR for one WGAR share.
wIt appears from the record", Examiner Walker stated,
"that the pending application may be granted within the purview
of Section 310 of the Communications Act of 1934; that the group
of stockholders who now control the WGAR Broadcasting Co. also
control the proposed transferee, WJR, the Goodwill Station; and
that public interest will be served by consenting to the proposed
transfer of control in that the services of the engineering,
program, and other departments of WJR, the larger station, will
be more readily available to WGAR. "
Mr. Walker’s report stated that figures submitted show¬
ed the book value of WGAR stock to be $168.99 per share and that
of WJR stock $6.95. It pointed out, however, that last September
WJR increased its capital stock from $150,000 to $1,000,000 and
declared a stock dividend of 1200 per cent, thus increasing the
number of shares from 10,000 to 130,000.
XXXXXXXXX
TWO UNIVERSITY STATIONS PROPOSED IN CALIFORNIA BILL
A bill proposing the construction of two broadcasting
stations by the University of California has been introduced in
the State Legislature.
The measure calls for an appropriation of $50,000 to
erect two 50,000 watt transmitters, one at Berkeley and the other
at Los Angeles, on the campuses of the two branches of the
University. Concerning the proposed activities of the stations,
the bill states:
"The operation of said stations shell be under the
supervision and control of the extension division of the Univer¬
sity. The division shell prepare and broadcast a curriculum of
education beneficial to those citizens who are unable to partake
of the benefits afforded by actual attendance at a university.
The division shall arrange to broadcast, directly or by remote
control from various cities of the State, public debates and dis¬
cussions on matters of vital interest to the people of the
State of California. They may also arrange for the broadcast of
such other matters and programs as they shall deem to be of
educational or cultural value, "
XXXXXXXXXX - 8 -
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1/29/37
BLACKETT- SAMPLE-HUMMEFT , INC., LEADS AGENCY SPENDERS
Blackett-Sample-Hummert , Inc. , last year again led
the agency field as the largest buyer of radio time and replac¬
ed J. Walter Thompson as the leader in handling business for
both the National Broadcasting Company and the Columbia Broad¬
casting System, according to figures disclosed this week in
New York.
The total time sales handled by Blackett-Sample-
Hummert in 1936 amounted to $8,022,429, of which $4,048,579
went to NBC, $1,963,086 to CBS, $200,683 to Mutual, and
$1,810,081 for national soot advertising.
Lord & Thomas stepped into second place as the larg¬
est buyer of time on the two major networks with J. Walter
Thompson third. Batten, Barton, Durstine & Osborn led the list
of agencies serving CBS.
XXXXXXXXXX
BBC TELEVISION RECEIVED 60 MILES AWAY
"The invitation of the BBC to viewers to cooperate
in the development of television has met with a cordial response'
the British Broadcasting Corporation reports. "Many valuable
suggestions have been made. A Brighton viewer states that he
receives the television programs perfectly on his receiver. As
Brighton is about sixty miles from Alexandra Palace, this repre¬
sents a substantial increase in the area of reception which has
hitherto been considered to be about twenty- five miles. "
XXXXXXXX
AMATEURS RESTRICTED DURING FLOOD EMERGENCY
Because the Federal Communications Commission has been
advised that the only contact with many flooded areas is by
amateur radio, and since it is of vital importance that communi¬
cations with flooded areas be handled expeditiously, it has
issued the following order to all amateur licensees:
"It is ordered that no transmissions exceot those
relating to relief work or other emergencies be made within any
of the authorized amateur bands below 4000 kilocycles until
the Commission determines that the present emergency no longer
exists. "
XXXXXXXX
9
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1/29/37
EDITORIAL PRAISES ROLE OF RADIO IN FLOOD
"The practical utility of wireless communication has
been demonstrated many times and in many different ways, but
never more notably than this week when the stricken Ohio Valley
dramatized its plight to the world over the ether", the Evening
Star, Washington, D. C. , said this week in an editorial.. "Pro¬
bably millions 'listened in' while towns in the flooded areas
told the story of their experience with mid-Winter disaster.
The tale was harrowing, yet fascinating. It brought the tragedy
of thousands of families into the homes of their neighbors every¬
where .
"But the broadcasts from Louisville, Cincinnati,
Memphis, etc. were not mere news programs. Instead they were
exchanges of information, advice and help. They were put on
the air for the service of the populations of the inundated
territories and with little regard for the entertainment value
they might have for bystanders in parts of the country not
affected directly.. Perhaps it is not too much to say that the
victims of the flood were organized for mutual aid by the radio
networks. The morale of the people certainly was strengthened
by the messages dispatched to them through the air. Coincident-
ally, the Nation at large was educated in the meaning of their
predicament.
Of course, the appeal of the Red Cross for funds to
meet the demands of the emergency was repeated again and again..
It was natural that it should be so, but it likewise was inspir¬
ing. Many Americans must have rejoiced in the knowledge that
an efficient agency is available to grapple with the problem
instantly. To render the labors of its representatives easy
must be the duty now of all who are not dead to pity for their
afflicted countrymen. Money is a small thing to give, com¬
paratively, but it is wanted in quantities and 'The Star' counts
it a privilege to endorse the pleas for coluntary contributions.
For once nothing requires to be added to the petition for assist¬
ance. Radio at its best has done the work with credit to itself
and its patrons throughout the land. "
XXXXXXXXX
WASHINGTON DEALER BARRED FROM USING "RCA"
Sun Radio Service & Suoply Corporation, 936 F Street,
N,W, j Washington, D. C. , has been ordered by the Federal Trade
Commission to discontinue representing through use of the letters
"RCA", or by any other means, that the radio receiving sets and
radio tubes and supplies it sells are manufactured by the Radio
Corporation of America or any of its subsidiaries.
10 -
1/29/37
The order to cease and desist also prohibits the
respondent corporation from advertising that its radio tubes
are "new metal tubes", unless they are the products known to
the trade and purchasing public as metal tubes in which the
technical elements are sealed in a vacuum in steel.
Findings are that the Radio Corporation of America
has built up and enjoys a valuable goodwill in the letters "FCA,:
as applied to its products, and that the respondent corpora¬
tion's practices constitute unfair competition in violation of
Section 5 of the Federal Trade Commission Act.
XXXXXXXXX
SAYS TELEVISION HASN'T IMPROVED BENCHLEY HUMOR - YET
A writer in Esquire thus records his impressions of
the RCA television demonstration for the press:
"We were in on the birth of television, or one of its
labor pains. The little fellow only weighs about 3 a pounas and
will doubtless have to be put in an incubator. Like all such
infants, he wasn't much to look at and you couldn't tell whether
he will take after his papa or mama. We sat in the R.C.A.
building watching an 8 x 14 inch picture, which was being enact¬
ed a few floors below us, sent down to the Empire State Building
and then broadcast on short waves.
"It was all very marvelous, when you thought about it,
but so is the telephone and electric light. The point is, the
best entertainment afforded was Bob Benchley in a variation of
a speech he has been making for twenty years. Moral - science
can't produce humor or improve on Benchley, Time will help."
XXXXXXXXXX
A new 100-watt broadcasting station for Greenville,
Texas, was recommended to the Federal Communications this week
by Examiner George H. Hill. The Examiner advised that the
application of the Hunt Broadcasting Association for a permit to
operate on 1200 kc. , daytime, be granted.
Denial of an application for a. new station at Albany,
Ga., and renewal of the license of WGPC, Albany, were recommended
to the FCC this week by Examiner Melvin H. Dalberg.
XXXXXXXXXX
11 -
1/29/37
WBZ, BOSTON, APPLIES FOR 500 KW
Application for an increase in power from 50,000 to
500,000 watts for WBZ, Boston, pioneer radio station of New
England, has been filed by the owner, Westinghouse Electric
Company, with the Federal Communications Commission. WBZ is
the Boston outlet of the NBC-Blue Network.
In addition to the application for increased power,
WBZ's plans include the removal of the transmitting station at
Millis, Mass., to Provincetown, Mass., on the eastern tip of
Cape Cod, and the erection of a new directive antenna. The
new antenna will center the full force of the power behind the
wave on the New England States.
XXXXXXXX
KRGV PAYS DIVIDEND OF $7.50 A SHARE
Evidence of better times and good management in suc¬
cessfully bringing it through the depression period, is that
Station KRGV, at Weslaco, Texas, has just paid an annual divi¬
dend of $7.50 a share. M. S. Niles is President of KRGV, which
serves the Rio Grande Valley.
XXXXXXXXXX
TWO INDIANA STATIONS TO JOIN NBC
Two more stations, WGBF, at Evansville, Ind. , and WBOW
at Terre Haute, Ind., will become affiliated with the National
Broadcasting Company as optional outlets on either the NBC-Red
or the NBC-Blue Network on Monday, February 1st. Their addition
brings the total number of stations under contract with NBC to
116.
Established in 1923, WGBF is owned by Evansville on the
Air, Inc., and is managed by Clarence Leich. The station opera : -s
on a frequency of 630 kilocycles with a power of 500 watts.
WBOw at Terre Haute operates on a frequency of 1310
kilocycles with a power of 250 watts in the day and 100 watts at
night. It was established in 1926 and is owned by Banks of
Wabash, Inc. William Behrman is the manager,
XXXXXXXX
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GENERAL^ -
Business Letter
NEW YORK n, V,
WASHINGTON, D. C.
INDEX TO ISSUE OF FEBRUARY 2, 1937.
Wigglesworth Assails FCC And "Radio Monopoly" In House . 2
Excise Taxes $6,500,000 On Radios, Phonographs . 5
Television Research Planned By Japan Broadcasting Company . 5
30 Frequencies Now Assigned In International Band . 6
House Bill Seeks To Bar Press Ownership Of Stations . 7
Scripps-Howard Radio Expansion Under Aylesworth Seen . 8
Foreign Holdings Of Brazilian Radio Stations Barred. . 9
Prall Lauds Role Of Radio In Flood Relief . . . 10
Radio News Writers Form An Association, . 11
Press Association Praises Work Of Radio Station . 12
Philco Engineer Outlines Plans For 1937 . ,...12
No. 1001
February 2, 1937.
WIGGLESWORTH ASSAILS FCC AND "RADIO MONOPOLY" IN HOUSE
Citing testimony by members of the Federal Communica¬
tions Commission before the House Sub-Committee on Independent
Offices Appropriations, Representa tive Wigglesworth ( R. ) , of
Massachusetts, on Monday demanded a "thorough investigation" of
radio and its administration on the floor of the House.
Representative Wigglesworth, who is a member of the
Sub-Committee, made a similar demand last year. His cry of
"monopoly" comes this session on the heels of a resolution call'
ing for an inquiry by Representative Connery (D. ), of Massa¬
chusetts.
The Republican charged that "testimony given to your
Committee by the Communications Commission indicates that today
we are in sight of a virtual monopoly of the air by the big
broadcasting companies of this country, with all the possibil¬
ities, for capitalizing that monopoly into earnings and profits
to the detriment of the American people with which we are all
familiar in other fields.
"I further submit that the record clearly indicates,
in the absence of further exDlanation, that the Federal Communica¬
tions Commission has failed to exercise the regulatory functions
contemplated in this connection by the Federal Communications
Act", he said.
"Under the Communications Act, Congress undertook
specifically to provide against the evils of monopoly by requir¬
ing that station licenses should not be issued for periods in
excess of three years. As a matter of policy the maximum period
is limited to six months. At the end of six months every licensee
is required to make application for renewal. Renewal is author¬
ized by law only if proved to be in the public interest.
"I call your attention especially to Section 301 and
310B of the Act. Under Section 301 the Act specifically sets
forth its purpose, and, among other things I quote 'to maintain
the control of the United States over all channels of interstate
and for radio transmission and to provide for the use of such
channels, but not the ownership thereof, by persons for limited
periods of time under licenses granted by Federal authority, 1
"Under Section 310b, it is provided and I quote that
’the station licenses acquire the frequencies used by the licen ee
and the rights therein granted shall not be transferred, assigned
or in any manner, voluntarily disposed of - unless the
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2/2/57
Commission shall after securing full Information decide; that
said transfer is ih the public interest and shall give its con*-
sent in writing.
"It is perfectly clear that it was intended to elimi¬
nate the evils of monopoly as well as those inherent in traffick¬
ing in Federal licenses. Nevertheless, the record indicates that
under the policies pursued by the Communications Commission virtual
monopoly is at hand, the renewal of licenses has become largely
perfunctory and the transfer of licenses has been approved upon
terms which, in the absence of further explanation, appear to be
without Justification.
"The three big broadcasting companies. National,
Columbia and Mutual have acquired so many broadcasting stations
and licenses that today it appears that to all intents and pur¬
poses they control all of the 40 clear channel frequencies as
well as other highly desirable frequencies and stations. How
nearly complete the control - monopoly - must be is suggested by
a recent statement by a former member of the Federal Radio Com¬
mission to the efect that the ’Big 3' use in their stations 97 %
of all the full time broadcasting power authorized by the Com¬
munications Commission. I understand, moreover, that no inde¬
pendent full time station is licensed to operate at night with a
power of more than 1000 watts, in contrast to the 165 or more
stations controlled or operated by the ’Big 3’ many of which sta¬
tions are said to have power of fifty thousand watts, and, one
of them having 500,000 watts.
"The record indicates that the renewal of licenses have
become largely a formality. The record also indicates that the
Commission has approved the transfer of licenses on terms which
appear to be contrary to public interest and to the intent of the
law.
"Let me call your particular attention to tables fur¬
nished by the Communications Commission purporting to show a
record of all transfers and leases of licenses approved by the
Commission since its organization. Instance, after instance
appears where the Commission has given its approval to transfer
of a licensed broadcasting station for a consideration far in
excess of the replacement cost of the station transferred. Other
instances will be found where the Commission has approved of a
transfer in the form of a lease for periods in excess of the
original license.
"The time will not permit detailed analysis. Among
other approved sales, you will find the following, the replace¬
ment value of the station transferred being given in the first
column, the consideration paid for station in the second column:
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2/2/37
Replacement Value
$ 217,000.00
13,500.00
14,000.00
65,000.00
14,000.00
75,000.00
20,000.00
29,000.00
17,000.00
29,000.00
58,000.00
85,000.00
8,000.00
Consideration Value
$1,250,000.00
28,500.00
65,000.00
110,000.00
50,000. 00
170,000.00
80,000.00
60,000. 00
105,000.00
91,000.00
104,000.00
239.000. 00
27,000.00
"You will also find among the leases referred to a
lease of a station with replacement value of less than $500,000
leased for an annual rental of $219,000 for a period of eight
years. Also, a lease for a period of ten years with an option
of renewal for another ten years, and, in still another instance
a lease of a station apparently for a period of 99 years. I
am advised that the lessor in a number of instances obtains
under the terms of the lease not only a fixed rental but, in
addition a substantial percentage of profits realized by any
increase in rates of the station leased.
"If the Federal Communications Commission can justify
these transactions, I hope it will do so. I know, Mr. Chairman,
it is unnecessary to emphasize the dangers inherent in traffick¬
ing in Federal licenses. The practice opens the door to all the
scandals of the past in other fields, scandals which the Com¬
munications Act was intended to eliminate. In the absence of
further explanation it is difficult to believe that transfers
approved by the Commission have been in the public interest and
within the terms of the Communications Act.
"Here is an industry whose very existence depends
upon the grant of a Government franchise for which it pays noth¬
ing. Here are conditions imposed by Congress upon the grant in(
of franchises with a view to eliminating the evils of monopoly
and the trafficking in licenses, yet, because of the policy
pursued by the Broadcast Division of the Communications Commis¬
sion, we find, upon the record the existence of a virtual
monopoly and what seems to beunjustified trafficking in licenses
to the detriment of the American people.
XXXXXXXXXXX
Denial of the application of WCAP, Asbury Park, N. J. ,
for an increase in power from 500 watts to 1 KW on 1S80 kc.
was recommended to the Federal Communications Commission this
week by Examiner Robert L. Irwin.
xxxxxxxxxxxx
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EXCISE TAXES TOP $6,600,000 ON RADIOS, PHONOGRAPHS
Total Treasury collections for 1936 of the Federal
5 percent excise tax on radio and phonograph apparatus reached
the unprecedented figure of $6,514,898.45, an increase of 46.9
percent over collections of 1935, and, of course, without inclu¬
sion of substantial 2 percent automotive- radio taxes, Bond
Geddes, Executive Vice-President of the Radio Manufacturers'
Association, declared this week.
The official report of the December 1936 radio tax
collections, showed a total of $906,358.41, an increase of 24.2
percent over radio taxes of $730,002.69 in December, 1935. The
December taxes on mechanical refrigerators totaled $319,439,34
against $176,984.52 in December, 1935.
Since the excise tax law became operative June 20, 1932,
the Industry has paid total radio taxes of $18,253,299.61,
exclusive of additional automotive taxes.
XXXXXXXX
TELEVISION RESEARCH PLANNED BY JAPAN BROADCASTING COMPANY
Television is a subject of considerable discussion in
Japan at the present time, according to a report to the Depart¬
ment of Commerce from Assistant Trade Commissioner C. H.
Boehringer, Tokyo.
The Japan Broadcasting Corporation is constructing a
laboratory for television research near Tokyo which will be
completed next March. It is reported that the Corporation has
allotted 500,000 yen ($1,500,000) for such activities during the
current year.
According to local reports, Professor Takayanagi >
premier researcher in Japan, has been successful in 90 percent cf
his experiments with a daylight television- receiver to replace
the present fluorescent-light type now in use and that he
expects to complete his development by March.
The Japan Broadcasting Corporation is planning to
initiate a campaign to arouse public interest in television
throughout the country. When the Olympic Games are held in
Tokyo in 1940, the Corporation expects to be in a position to
transmit television pictures to points within a radius of 12
miles from the capital, according to the report.
XXXXXXXXX
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2/2/57
50 FREQUENCIES NOW ASSIGNED IN INTERNATIONAL BAND
Thirty frequencies are now allocated in the interna¬
tional broadcast band of the United States, according to a
tabulation released this week by the Federal Communications
Commission. There are less than half that many stations, how¬
ever, as some of the outlets have two or more waves.
Columbia Broadcasting System holds five of the fre¬
quencies, and all are used by W2XE, Wayne, N. J. , while the
National Broadcasting Company has four and two stations, W3XAL,
Bound Brook, N. J. , and W9XF, Downer's Grove, Ill.
The complete list by frequencies follows:
Frequency
Call Letters
Licensee
Location
6040
W1XAL
World Wide Broadcasting
Corp.
Boston, Mass.
6040
W4XB
Isle of Dreams Bdcstg.
Corp.
Miami Beach, Fla.
6060
W3XAU
WCAU Broadcasting Co.
Newtown Square,
6060
W8XAL
The Crosley Radio Coro.
•L 8. •
Mason, Ohio
6080
#9XAA
Chicago Fed. of Labor
Chicago, Ill.
6100
W3XAL
National Bdcsting Co.
Bound Brock , N. J.
6100
W9XF
" Downer's Grove, Ill
6120
W2XE
Columbia Broadcasting
System, Inc.
Wayne, N.J.
6140
W8XK
Westinghouse Elec. &
Mfg. Co.
Nr. Saxonburg,
Pa.
9530
W2XAF
General Electric Co.
Schenectady ,N. Y.
9570
W8XK
Westinghouse Elec. &
Mfg. Co,
Nr. Saxonburg,
Pa.
9570
W1XK
it
Millis, Mass.
9590
W8XAL
Crosley Radio Corp.
Mason, Ohio
9590
W3XAU
WCAU Broadcasting Co. Newtown Square, ?:
11790
W1XAL
World Wide Bdcstg. Corp.
Boston, Mass,,
11830
W2XE
Columbia Broadcasting
System, Inc.
Wayne, N. J.
11830
W9XAA
Chicago ^ed. of Labor
Chicago, Ill.
11870
W8XK
Westinghouse Elec. &
Mfg. Co.
Nr. Saxonburg,
Pa.
15210
W8XK
if
15250
W1XAL
World Wide Bdcstg, Corp.
Boston, Mass.
15270
W2XE
Columbia Broadcasting
System, Inc.
Wayne, N. J.
15330
W2XAD
General Electric Co.
Schenectady ,N. Y.
17760
W2XE
Columbia Broadcasting
System, Inc.
Wayne, N. J.
17780
W8XK
Westinghouse Elec. &
Mfg. Co.
Nr. Saxonburg,
Pa.
6
.
2/2/37
Freauenc.v
Call Letters
Licensee
Location
17780
W3XAL
National Broadcasting Co.
Bound Brook,
N. J.
17780
W9XAA
Chicago Fed. of Labor
Chicago, Ill.
17780
W9XF
National Broadcasting Co.
Downer's Grove,
Ill
21460
W1XAL
World Wide Bdcstg. Corp.
Boston, Mass.
21520
W2XE
Columbia Broadcasting
System, Inc.
Wayne, N.J.
21540
W8XK
XXX
Westinghouse Elec. &
Mfg. Co.
XXXXXXXXX
Near Saxonburg,
Pa.
HOUSE BILL SEEKS TO BAH PRESS OWNERSHIP OF STATIONS
While Senator Wheeler (D. ), of Montana, was awaiting
a reply to his questionnaire to the Federal Communications
Commission regarding newspaper control of radio stations,
Representative Wearin (D.), of Oklahoma, introduced a bill in
the House to prohibit newspaper ownership or operation of
broadcasting stations.
The measure would amend the Communications Act by
adding a new provision "to prohibit unified and monopolistic
control of broadcasting facilities and planted publications".
The section would declare it to be "against the public interest
to permit the creation or the continuance of monopoly in the
distribution of general information, news and editorial comment
thereon, through any combination resulting in unified control
of newspapers, magazines or other printed oublication, with
radio broadcasting. "
All inclusive in content, the bill states that after
its effective date, it would be unlawful for any licensee to
any extent, directly or indirectly, in its own person or through
an agent, holding corooration, affiliated corporation, subsid¬
iary corporation, by stock ownership in a corooration, or other¬
wise, to be owned, partially owned, managed or controlled by
any person who owns, partially owns, manages, controls, directs
or publishes any newspaper, magazine or other printed publica¬
tion circulated or distributed to any extent "within the area
or zone served by the broadcasting station allotted to such
licensee. "
It would be unlawful for a similarly described indiv¬
idual or corporation to own or partially own any newspaper or
magazine, provided that the prohibition would not apply or be
enforced against any licensee until the termination of the
existing license "but shall apply and be enforced against such
present licensee immediately upon termination and without any
extension of the existing term of such licensee. "
XXXXXXXX
- 7 -
2/2/37
SCRIPPS-HOWARD RADIO EXPANSION UNDER AYLESWORTH SEEN
The Scripps-Howard newspaper syndicate is expected
to expand greatly its radio activities when Merlin H. Aylesworth,
former President of the National Broadcasting System, joins its
management staff on March 1st.
Announcement that Mr. Aylesworth will leave his post
as head of Radio-Keith-Orpheum and Join the newspaper enter¬
prise was made on Monday by Scripps-Howard officials in San
Diego, California. No mention was made of what Mr. Aylesworth' s
duties will be, but broadcasters predicted that they will be
concerned with radio primarily.
Scripps-Howard has organized the Continental Radio
Company, which owns and operates four stations already and is
seeking more before the Federal Communications Commission. One
of the applications is for a broadcasting outlet in Washington.
Because of Mr. Aylesworth' s background in the broad¬
casting field and his contacts, both with Federal administrative
officials and advertising sponsors, he is looked upon in the
industry as an ideal man to develop the Scripps-Howard radio
subsidiary.
Scripps-Howard, which has fought William Randolph
Hearst in the newspaper field for some years, is also trying to
keep pace with Hearst Radio, Inc., in broadcasting.
An announcement of Mr. Aylesworth' s affiliation with
the Scripps-Howard newspapers said:
"Mr. Aylesworth achieved an enviable reputation as
Chairman of the Public Service Commission in his native State
of Colorado before being affiliated with the National Electric
interests where he attracted the attention of Owen D. Young, who
was largely responsible for his being called upon to organize
and establish the National Broadcasting Company. "
The announcement added that he was instrumental in the
negotiations with Atlas Corporation which resulted in its pur¬
chase of one-half of the Radio Corporation' s holding In Radio-
Keith-Orpheum Corporation and its option in the remaining half.
During the period of Mr. Aylesworth' s connection with
RKO, It was declared, the company has oassed from heavy operating
losses to substantial operating profits, as reflected by the
figures for 1936.
David Sarnoff, President of the Radio Corporation of
America, commented on Mr. Aylesworth* s resignation from RKO as
follows:
- 8 -
2/2/37
'*Mr. Aylesworth had advised me some time ago of his
wish to be relieved of his duties with RKO when a plan for
reorganization of that company had been developed and submitted.
That step having been taken, Mr. Aylesworth informed me of the
invitation extended to him by the Scripps-Howard newspapers to
join their organization.
’’During the past ten years Hr. Aylesworth has made
significant contributions to the field of radio broadcasting,
which he ably served during its pioneering period. He has also
served the motion pictures and theatre field with distinction.
”1 congratulate Mr. Aylesworth on his new association
and congratulate the Scripps-Howard organization on their
selection of a man who brings to his new position great exper¬
ience and untiring energy. "
The Scripps-Howard newspapers own four broadcasting
stations - WCPO, Cincinnati Post; WMC-WNBR, Memphis Commercial
Appeal; WNOX, Knoxville News-Sentinel.
XXXXXXXXXX
FOREIGN HOLDINGS OF BRAZILIAN RADIO STATIONS BARRED
Foreign interests are prohibited from owning or oper¬
ating radio broadcasting stations in Brazil in regulations just
submitted for approval to the Minister of Transportation and
Public Works by the Federal Technical Radio Commission, accord¬
ing to a report to the Commerce Department from Trade Commis¬
sioner J. Winsor Ives, Rio de Janeiro.
Other provisions, it is pointed out, limit further
the proportion of time which can be devoted to advertising and
commercial announcements, and heavy penalties are to be imposed
on stations found guilty of deviating from the frequency
channels allotted to them.
The Federal Technical ^adio Commission, the report
shows, is composed of representatives from the Ministry of
Transportation and Public Works and the Army and Navy. The
complete text of the proposed regulations has not yet been made
public.
XXXXXXXXX
An_ application for authority to transfer KALB,
Alexandria) ^a. , from 1420 kc. to 1210 kc. , and increase hours
of operation from daytime to unlimited was approved, conditional
upon compliance with Rule 131, in a report filed with the
Federal Communications Commission this week by Examiner John
P. Brarahal.
XXXXXXXXXX
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2/2/37
PRALL LAUDS ROLE OF RADIO IN FLOOD RELIEF
"Radio - both short wave and broadcasting - has done
a maganificent job in connection with these disastrous floods",
Anning S. -^rall, Chairman of the Federal Communications Commis¬
sion, declared last Sunday in an address over the NBC-Blue
Network.
"As Chairman of the Federal Communications Commission,
I fully realize that the telephone and the telegraph lines have
played their parts in this emergency and have played them well,
but I humbly salute radio for its tremendous contribution in
this hour of need.
"In some instances telephone and telegraph wires and
central offices and exchanges were completely inundated, and
other means of communication had to be employed. Much of this
communication was by radio, the latest principal arrival to the
family of electrical communications.
"To the amateur operator, who, from his homemade set
directed relief messages when all other means of communica tion
had failed, to the small and to the powerful broadcasting sta¬
tions I am happy and grateful to say that radio has met its
greatest crises in a truly American way.
"Ordinarily associated with entertainment activities,
radio stations in the afflicted areas have taken off their
uniforms, put on their overalls, and gone to work in earnest,
reporting conditions, warning residents of impending danger,
collecting funds, and serving as a clearing house for the efforts
of relief agencies.
"The physical damage in this wave of floods probably
exceeds that of any previous one in recent years, and the death
toll, large as it is, would undoubtedly have been much higher
except for the efficient work of the station broadcasters and
the amateur operators who dropped all other forms of radio
activities to concentrate on relief and rescue problems.
"The complete story of radio's contribution to flood
relief as yet cannot be recorded; but sufficient reports have
been received to indicate that in the saving of lives, the safe¬
guarding of property, and in the raising of funds, radio - and
the splendid men and women associated with it - have played a
major role.
"I know that the oublic has already learned of the
splendid work which is being performed by the various communica¬
tion organizations to provide prompt and efficient communica¬
tions with the flooded districts. The record of the radio
amateurs, while their activities are normally inspired without
pecuniary interest is rich in contributions to the public
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interest. They have greatly aided in the present emergency
by providing coramunica tion with isolated points which could not
have been reached in any other manner. The Commission is happy
to report that we have received from them the very finest cooper¬
ation throughout this emergency period. Through the days and
nights these men, resisting weariness, stuck to their posts
relaying messages to and from the afflicted districts.
"Discarding all other programs, many broadcasting
stations were on the air all day and throughout the night warn¬
ing residents of danger, locating supplies, mobilizing truck
drivers, pleading for medical supplies, establishing relief
stations, and directing activities of relief workers, under the
direction of the police and emergency relief committees. "
XXXXXXXXXX
RADIO NEWS WRITE-S FORM AN ASSOCIATION
Organized for the purpose of improving standards of
radio news writing, an Association of Radio News Writers was
formed in Chicago recently. At a preliminary meeting, John
Van Cronkhite, WBBM and Columbia Broadcasting System, was named
temporary Chairman of the group. Organization work will con¬
tinue under direction of the Executive Committee with the view
towards a national meeting of radio news writers next Summer in
connection with the annual convention of the National Association
of Broadcasters.
Mr. Van Cronkhite said that the new association is
"not another newspaper guild, nor is it concerned with salaries
of radio news writers". Ke explained "radio news has no herit¬
age'1. The group is primarily interested in better news writing
in radio and one of its first objectives will be a manual for
radio news writers, he said. It is estimated that approximately
300 persons are engaged in radio news writing at the present ti;
Members of the Executive Committee include Leland C,
Bickford, WNAC, Yankee Network, Boston; K. B. MacClure, WOAR,
3an Antonio, Tex.; Walter Paschall, W3B, Atlanta; H. L. MacEwen,
WLW, Cincinnati; and T. C. Christie, Universal Service, New York,
Secretary; W. J. Heggen, United Press, Treasurer.
XXXXXXXXXX
Examiner George H. Hill this week recommended to the
Federal Communications Commission that the applications of the
United States Broadcasting Company to erect new stations in
Toledo and Columbus, 0. , on 1200 and 1310 kc. , respectively, be
dismissed with prejudice.
XXXXXXXX
- 11 -
2/2/37
PRESS ASSOCIATION PRAISES WORK OF RADIO STATION
The Associated Press, which not so long ago was at
sword's point with the broadcasting industry, has joined in the
acclaim of radio’s role in the Ohio Valley flood.
Following, in part, is a story sent out from Louisville
by the SP:
"The first week SOS call from Jack Binns on the sink¬
ing liner 'Republic1 in 1909 has another historic radio achieve¬
ment to stand beside it as a result of the flood here. This
is a new record of radio calls for help - 16,500 separate
appeals in five days over Station WHAS.
"With lights gone, an emergency engine pumping only
one-third of the normal power into the microphone, the station
never left the air during the worst five days and nights in
the city’s history. Without this central clearing house for
bringing aid to those trapped by rising waters, Louisville
probably would number its dead today in thousands, instead of
hundreds. "
XXXXXXXXX
PHILCO ENGINEER OUTLINES PLANS FOR 193?
Reporting on television orogress at a recent meeting
of the Franklin Institute, Philadelphia, Albert F. Murray,
television engineer of the Philco Radio and Television Corpora¬
tion, outlined the development plans for 1937. At the same time
he pointed out that "when commercial television eventually
reaches the home, it will in no way supplant regular sound broad¬
casting. "
In his forecast for what this year may hold for tele¬
vision, Mr. Murray said that field tests will continue; ultra-
high frequency waves will be further explored and their service
areas more definitely determined. It is expected that leading
experimenters will change their transmitting equipment to con¬
form with the new standard of 441 lines. Experimental receivers
will be improved and simplified. Improvements in picture size
and brilliancy may be expected, according to Mr. Murray, who
said that research will continue in the various laboratories
with unabated vigor. He expressed belief that "an entirely new
method of flashing pictures into the home might result, but in
the meantime, engineers and physicists will plod along on con¬
ventional lines. "
In his lecture, Mr. Murray said that experimental
receivers will be improved, simplified and costs will be somewhat
reduced, making the price nearer what the average man can pay
when commercial television arrives. Also improvement in
picture size and brightness may be expected. Experiments in
television relaying will be initiated; that is, images from
the athletic field will be relayed to the main broadcasting
station for rebroadcast.
XXXXXXXXX
- 12 -
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2400 CALIFORNIA STREET WASHINGTON, D. C.
C O N F I D E N T I A L — Not for Publication
INDEX TO ISSUE OF FEBRUARY 5, 1937.
Pan American Station Bill Introduced By Celler . 2
BBC Discards Baird Television For Marconi* -EMI . 5
High Prices Of Stations May Bring Federal Tax..... . . . 6
Short Wave Radio Research Pla.nned In Japan . . . . . 7
Aviation Officials Hit Radio Sets, Band Congestion. . . . . . 8
Stewart Raps WOL G-rants, Asks For A Rehearing..... . 9
Office Of Education Opens Radio Script Exchange . .10
Radio Broadcasts To Educate Egyptian Peasants...... . 10
BBC Forms Group Listening Organization . 11
Philippines Move To Nationalize ^adio System . 11
Mutual Holds First Sale Meeting . . . 12
Dwight G. Wallace Named NBC Personnel Manager.... . 12
No. 1002
PAN AMERICAN STATION BILL INTRODUCED BY CELLER
Details of the proposal for construction and operation
of a government-owned Pan American short-wave broadcasting sta¬
tion were disclosed Wednesday when Representative Celler ( D, ) ,
of New York, introduced a bill to authorize the Secretary of
the Navy to build such a station.
The bill places control of the programs in the hands
of the U. S. Commissioner of Education and makes provision for
private commercial stations to use the government transmitter
on condition that it does not profit thereby and its programs
are approved by the Commissioner of Education.
In introducing the bill, Celler labelled as "ridiculone"
fears that the station would serve as an entering wedge for
government control of all radio stations in the United States.
The main purpose of the Pan American station, he
said, would be three-fold:
(1) To create good-will between this and other
nations; (2) to eradicate international misunderstandings; and
(3) to develop two-way trade between the United States and other
nations "by propagandizing for our own products.
The Celler bill authorizes an initial appropriation cf
$750,000 for construction of the station in the vicinity of
Washington and an annual appropriation of $100,000 a year for
its operation and maintenance. Commercial advertising is pro¬
hibited on the station.
Explaining the bill, Representative Celler said, in
part :
"I have offered a bill authorizing the Navy Depart¬
ment to construct and maintain a government radio broadcasting
station to be called the Pan American Radio Station, with such
power and equipment as will enable such station effectively to
transmit programs to all carts of the world, and particularly,
to countries of the Western hemisohere, with sufficient signal
strength to permit programs to be rebroadcast in all countries
of the Pan-American Union.
"The plan and purpose of such legislation has had
the approval and encouragement of responsible officials of the
Department of State, Department of the Interior, Department of
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Agriculture, Federal Communications Commission, National Com¬
mittee on Education by Radio and the Pan-American Union. Also,
such project has already had the approval specifically of
President Roosevelt, Secretary of State Hull and Secretary of
the Navy Swanson. It grows out of the radio resolution adopted
January, 1932, at Montevideo, by the Seventh International
Conference of the North, Central and South American countries
forming the twenty-one sister Republics of the Pan-American
Union.
’’Each American nation participating at the Conference
agreed to set up short wave broadcasting stations and to broad¬
cast such programs as to cement bonds of friendship and cultural
understanding between the peoples of the twenty-one countries
of the Pan-American Union.
"The radio spectrum by international comity has been
divided into a definite number of bands of frequencies. Within
each frequency band, only a certain number of short wave broad¬
casting stations can function. In all the world, there are no
more unassigned or "empty 11 channels for new short wave broad¬
casting stations, - except one; that is the channel pre-empted
at the Montevideo Conference for exclusive use of Pan-American
Republics.
"President Roosevelt, in pursuance of such preemption,
and in accord with our sister nations, issued Executive Order
No. 6472, dated December 2, 1933, making available for the United
States Government, the following frequencies: 6120 kc. , 9550 kc. ,
11730 kc. , 15130 kc. , and 2150 kc.
"In pursuance of such Executive Order, a station was
to be set up in Washington, D. C. , under the joint control and
auspices of the State Department and Navy Department. The sta¬
tion was never set up. Many obstacles were thrown across the
path of this much needed reform, by misguided and selfish per¬
sons. It is feared that this would be the entering wedge into
governmental control of Radio. That is ridiculous.
"I am a firm believer in orivate initiative. I do not
want to slam the door in the face of the efficiency, enterprise
and resourcefulness of private ownership. Our radio system,
despite certain besetting evils of commercialism, is yet the
greatest in the world, thanks to private control. But one Pan-
American short wave station, set un in pursuance of the Treaty,
in an unassigned channel, on a non-competitive basis, will not
in the slightest militate against private initiative. It will
not lead to government monopoly.
"These persons and entities must now cease their opposi¬
tion, else they will get their fingers burned. Because of the
pressure against carrying out the President's Executive Order,
I have introduced ray bill. However, I specifically provide for
cooperation of private stations in the maintenance and operation
of the Pan-American broadcasting station.
3
2/5/37
"The United States Commissioner of Education, with
the approval of an advisory council consisting of the Secretary
of State, the Director General of the Pan-American Union, the
Chairman of the Federal Communications Commission, and such
other governmental officials as the President may select, may
at certain periods and under well defined conditions, allow
said Pan-American station to be used by a private company,
provided there will be no profit ana no advertising, and the
programs are exclusively in the public interest.
"Every nation in the world has a broadcasting sta¬
tion, except tne United States. Every nation but our own can
defend itself over the air against foreign and unfriendly
attacks. For example, the Fascist and Communist Governments
are growing bolder every day in their proselyting activities.
National boundaries mean nothing. The sovereignty of no nation
is respected. Surely some antidote is necessary.
"There are two million short wave receiving sets in
this country and the number is mounting aaily by leaps and
bounds. Such increasing short wave receptivity might well
command a Federal station. "
Congressman Celler outlined in detail a program
policy for the Pan American station covering four services:
(l) For Pan American reception; (2) For National and Pan
American listeners; (3) For National service; and (4) for
education.
The first group would include musical concerts at
the Pan American Union and by leading musical organizations of
the country, while the National service would cover all public
events in which the government participates and, in addition,
public addresses by government officials, and discussions of
the aims, functions, policies, and activities of the government.
The section of the bill relative to use of the Pan
American station by commercial broadcasters reads as follows;
"Sec. 6: The United States Commissioner of Education, with
the approval of the advisory council, shall, in his discretion,
permit well qualified, privately owned commercial radio companies,
actually operating efficient stations, to use, without charge,
said Pan-American radio station and its facilities, during such
times and period and under such terras and conditions as to said
Commissioner with the approval of said council may seem just and
proper, having in mind always that the Pan-American radio sta¬
tion is a governmentally controlled facility, provided:
"(1) Such privilege to such private company is exercised
without profit to said company;
"(2) The programs contributed by said privately owned
company are suitably controlled and censored by
said Commissioner of Education;
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2/5/37
"(3) Said privilege to such privately owned company
may be withdrawn at any time without notice by
said Commissioner of Education;
"(4) Such programs shall neither directly, indirectly
or remotely, involve the broadcasting of any
advertising, and shall be exclusively in the
public interest;
"(5) Any use of the facilities of such Pan-American
radio station as aforesaid to such privately
owned company does not interfere with or mili¬
tate against the general purposes of this Act, "
XXXXXXXX
BBC DISCARDS BAIRD TELEVISION FOR MARCONI-EMI
American experimenters with television were interest¬
ed this week to learn that the British Broadcasting Corporation
had discarded the Baird television system in favor of that of
the Marconi-E.M. I. Both systems have been used experimentally
since BBC began transmitting television programs as a public
service last Fall. They were operated on alternate weeks.
The Marconi-E. M. I. system was chosen by the government's Tele¬
vision Advisory Committee.
John L. Baird, inventor and founder of Baird Television,
"had the greatest disappointment of his life" when informed of
the decision by the Postmaster General, according to the New
York Times,
The standard for television transmission adopted by
the BBC is now 405 lines interlaced per picture transmitted at
the rate of 50 pictures or "frames" per second. United States
experimenters are now testing with 441 lines.
The BBC, when it began operating television trans¬
mission from Alexandra Palace, London, made elaborate provisio i
for testing the two systems "under strictly comparable condi¬
tions, by installing them side by side" in accordance with
the recommendations of the government's Television Committee.
Separate studios, as well as transmitters, were
installed in Alexandra Pala.ce. Both systems transmitted on
6.67 meters or 45 megacycles.
XXXXXXXX
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2/5/37
HIGH PRICES OF STATIONS MY BRING FEDERAL TAX
What may prove the most damaging testimony against
the present set-up of broadcasting stations in the United States,
in the opinion of even friendly members of Congress, is the dis¬
closure this week of the high prices paid for station franchises
in comparison with the estimated cost of physical equipment.
Although it is doubtful that Congress will do anything
to stop the sales, many members believe that it will find a way
to tax broadcasters so as to tap this lucrative source of
revenue. Such a tax might take the form of a license fee
scaled according to a station’s power and wavelength or it
might consist of a levy on profits from station profits.
What many members of Congress are unable to under¬
stand is how stations can bring such high prices when the
Communications Act clearly profibits trading in Federal fran¬
chises.
Judge Eugene 0. Sykes, Chairman of the Broadcast
Division, told the House sub-committee on Appropriations that
applications for license transfers are always examined care¬
fully by the FCC "to see that it does not smack of trafficking
in a Federal license.
"We usually take into consideration" , he said, "the
value of the actual properties, the earnings of the station
as shown in the testimony, and the result, we think, at a fair
price, generally speaking is based on that combination."
Representative Wigglesworth (R.), of Massachusetts,
who did most of the cross-questioning of the FCC officials on
station trading, suggested that the government might levy a tax
of 10 per cent on the gross earnings of every broadcasting sta¬
tion. He also asked Judge Sykes why the Commission had made no
recommendations with regard to license fees, a subject discussed
at the hearings the year previous. Judge Sykes replied that
the matter is still under consideration.
Inserted in the record of the hearings were hitherto
undisclosed details regarding 135 stations which have been sold
at prices ranging from $1 t© $1,250,000 in the last 30 months.
The tables disclosed the original costs of fixed assets, esti¬
mated replacement costs, total claimed value of physical assets,
station earnings, and the price paid.
Some of these figures, Congressman Wigglesworth point¬
ed out, showed that broadcasting stations had been sold for twice
the value of physical assets.
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The $1,250,000 paid by the Columbia Broadcasting
System for KNX, Los Angeles, is still the highest sale price
paid for a station, the record shows, while 30 transactions
involved more than $50,000.
The tables showed that William Randolph Hearst paid
$446,000 for the four stations bought from the Southwest Broad¬
casting Co. recently - KTSA, KOMA, WACO and KNOW - although the
replacement value was only $127,800. They disclosed that CBS
is paying an annual rental of $219,000 for lease of WEEI, Boston,
although the station is valued at only $497,907.
WBAL, Baltimore, drew the second highest sale price
of $452,500 when it was transferred from the Consolidated Gas,
Electric Light & Power Co. to the American Radio News Corpora¬
tion. Westinghouse paid the third highest price of $290,000
for WOWO, Fort Wayne, Ind.
Following is the list of other stations which sold
for more than $50,000.*
WIOD, Miami, $250,000; WFIL, Philadelphia, $60,094;
WHIO, Erie, Pa., $85,000; WLAC, Nashville, '’’enn. , $75,000;
WSMK, Dayton, 0., $52,396; KLZ, , Denver, Colo., $104,000; WHOM,
Jersey City, N. j. , $92,750; WNBR, Memphis, Tenn. , $50,000;
WOV, New York, $239,005; KFVD, Los Angeles, $65,000; KMMJ, Clay
Center, Neb., $60,000: KOIL, Council Bluffs, la., $110,000;
KOMA, Oklahoma City, $171,000; KOY, Phenix, Ariz. , $50,000;
KTAT, Fort Worth, Tex., $170,000; KTSA, San Antonio, Tex.,
$180,000; KVOR, Colorado Springs, $80,000; WACO, Waco, Tex.,
$50,000; WCHS, Charleston, W. Va. , $200,000; WCOP , Boston,
$57,000; WCPO, Cincinnati, $53,500; WEBR, Buffalo, $120,000;
WELI, West Haven, Conn., $57,000; WNBC, New Britain, Conn.,
$51,000; WNOX, Knoxville, Tenn., $77,500.
XXXXXXXX
SHORT WAVE RADIO RESEARCH PLANNED IN JAPAN
A comprehensive study of short waves less than 10 meters
in length is planned by the Department of Communications of the
Japanese Government, a report to the Commerce Department from
its Tokyo office states. Within a few months, it is pointed out,
the Department will begin the construction of a research labor¬
atory near Tokyo for this purpose.
The Hokkaido Imperial University Agricultural Depart¬
ment, it is pointed out, announced recently that waves of between
10 centimeters and five meters have proved of benefit in the
raising of vegetables. It is also reported that short wave
radio waves are effective in medical treatment as well as in com¬
munications and industry.
An appropriation of $60,000 per year for five years has
been allotted for the short-wave experimental work.
XXXXXXXXXXX
2/5/3?
AVIATION OFFICIALS HIT RADIO SETS, BAND CONGESTION
Determined, to remove every possible hazard, from air
travel, more than 200 aviation officials this week, meeting in
Washington with Government officials, opened fire on inefficient
and obsolete radio equipment still in use.
"We all know that faults in existing radio equipment
have contributed to several airline accidents", Eugene Vidal,
Director of the Bureau of Air Commerce, declared as the three-
day national aviation safety conference got under way at the
Department of Commerce.
After it was revealed that some airlines have not
installed the latest type radio equipment on which the lives of
their passengers might depend in an emergency, Vidal warned
that all domestic airlines soon will be compelled to equip
their transport planes with new radio equipment designed to
overcome snow and rain static.
Marian Hull, chief pilot of Transcontinental &
Western Air, told how a new type shielded loop radio antenna,
used on his company's lines eliminates static caused by the
bombardment of electrically charged snowflakes and raindrops.
"You probably have guessed that we are on the verge
of requiring a loop antenna as good or better than this and
possibly a homing antenna on every airline plane", Mr. Vidal
interjected.
"We know that rain and snow static has contributed
to several of the recent airline accidents ana we regard the
problem as very serious. "
Snow static, it was explained, often cuts off pilots
lost in a snow-storm from radio communication with the ground.
The aviation officials complained bitterly over the
congestion in the 200-400 kilocycle range bands in which they
are compelled to broadcast and receive all instructions.
E. K. Jett, Assistant Chief of theEngineering Depart¬
ment, Federal Communications Commission, said it is realized that
interference on the present 278-wave band could have proven
disastrous in many instances. He asked the industry to advise
the Commission what frequencies and how many it believes essen¬
tial to safety.
XXXXXXXXX
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K :
STEWART RAPS WOL GRANTS, ASKS FOR A REHEARING
Criticizing the grant of a regional channel and an
increase in power to Station WOL, Washington, Commissioner
Irvin Stewart this week filed a dissenting opinion and demanded
that the request of the Continental Radio Company, a Scripps-
Howard subsidiary, be not granted.
Commissioner Stewart predicted that interference from
other stations on 1230 kc. will disturb WOL at nights and cause
listeners to become dissatisfied. WOL was permitted to transftr
from 1310 kc. to 1230 and increase its cower from 100 watts to
1 KW.
"Regional frequencies should not be assigned to sta¬
tions which can not render a regional service", Commissioner
Stewart said. "A station operating on a regional assignment
with one kilowatt power should give the service properly to be
expected of a regional station, not a local service masquerading
as a regional service in order to persuade advertisers who may
consider power as the only factor which determines coverage. If
the area expected to be served by regional stations is to be
modified so as to permit such mongrel stations, I should prefer
to see it done by a change in the standards followed by the
Commission, not by building up exceptions to present standards.
Then at least there would be equality of opportunity among
potential applicants for such assignments, instead of an in¬
equality favoring the applicant who might succeed in breaking
down existing standards on a particular frequency.
"In granting the application of the American Broad¬
casting Company, the Broadcast Division has seen fit to reward
the present inefficient operation of Station WOL. The record
that WOL has been operating as a local station with an ?
antenna having an efficiency materially below the Commission's
standards of good engineering practice. It further shows that
the service the station has been rendering is unsatisfactory
in considerable portions of the metropolitan area. It is silent
on what service WOL might render with a decent antenna complying
at least with the Commission's minimum standards. With the
facilities approved in the present case WOL will probably orovide
a good local service. I think that such good local service
should have been required to be by proper use of the station's
local assignment rather than by an inefficient use of a regional
assignment.
"In its opinion, the Broadcast Division states that
'By the granting of this application there will be made avail¬
able additional service of a national character and the station
will in turn serve to provide a network with many programs
originating in the Capital City of the country. * As it is a
matter of common knowledge that within recent months chain pro¬
grams have originated in stratosphere balloons and in submarines,
I do not understand why it requires a one kilowatt station to
originate chain programs 'in the Capital City of the country,’"
XXXXXXXXX
- 9 -
O/ O I
OFFICE OF EDUCATION OPENS RADIO SCRIPT EXCHANGE
The Office of Education this week announced the
establishment of an Educational ^adio Script Exchange to fur¬
nish local groups radio scripts especially appropriate for
educational broadcasting.
A catalogue listing 53 educational scripts now is
being mailed to more than 5,000 broadcasting units, including
high schools, colleges and universities, broadcasting stations,
CCC camps and civic organizations that have shown an interest
in educational broadcasting. Additions to the catalogue will
be issued from time to time.
A Radio Production Manual and a Glossary of Radio
Terras have been prepared to supplement the scripts. The
manual includes suggestions for meeting problems encountered
in producing radio programs. The Glossary is a workbook of
terms peculiar to radio, defining many of these at length and
giving comprehensive information about phrases and signals
used in the radio studio.
XXXXXXXX
RADIO BROADCASTS TO EDUCATE EGYPTIAN PEASANTS
Every village in Egypt will be provided with a com¬
munity radio receiving set by the Government if plans formulated
by the Ministry of Education are adopted, according to a report
to the Commerce Department from Commercial Attache James T.
Scott, Cairo.
The project under consideration is one phase of the
Government’s educational program for the masses throughout the
country. The radio broadcasts will be largely concerned with
subjects intimately connected with peasant life, such as advice
in regard to health, methods of cultivation and similar topics,
the report states.
Plans of the Ministry of Education call for the expendi¬
ture of L130,000 ($650,000) over a five-year period. It
is expected that a credit of 1^36,000 ($180,000) will be opened
in the next fiscal year budget for carrying out this project,
according to the report.
XXXXXXXXXXXX
Erection of a new broadcasting station at Helena,
Mont., by the Peopled Forum of the Air to operate on 1210 kc.
with 100 watts power, unlimited time, was authorized this week
by the Federal Communications Commission.
XXXXXXXXXX
- 10 -
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2/5/37
BBC FORMS GROUP LISTENING ORGANIZATION
The British Broadcasting Corporation has decided to
create a group-listening organization to undertake and develop
the work hitherto carried on by the Corporation’s adult educa¬
tion advisory bodies. This new organization will be based on
the existing Area Councils for Group Listening, which will be
linked by a Central Co-ordinating Committee. To this group¬
listening organization, the Corooration will make, until June,
1940, an annual grant of money, based on the Corooration ' s
annual expenditure on this listening-in work since it began in
1929.
One effect of the new arrangement will be to link
up broadcasting to schools with adult grouo listening, and it
is expected that many pupils who have listened to the broad¬
casts to schools will later be ready to join adult listening
groups. The number of these groups varies with the subjects
broadcast.
XXXXXXXXXXX
PHILIPPINES MOVE TO NATIONALIZE RADIO SYSTEM
An Act authorizing the President of the Philippines
to effect urgent reforms and changes in radio broadcasting,
to nationalize or acquire the same and to create a radio board,
was passed in the recent session of the National Assembly and
signed by the President, the Commerce Department reports.
The Act creates a Radio Board, composed of three
members to be appointed by the President with the consent of the
National Assembly, to study ways and means for the nationaliza¬
tion or acquisition by the Government of radio broadcasting,
and to censor all programs, sustaining or sponsored, to be
broadcast or re-broadcast by all broadcasting stations.
Pending the appointment of the Radio Board, censor¬
ship of programs is in the hands of the Secretary of the Inter¬
ior Quirino, who may require copies in advance of all speeches
to be broadcast. No program may be broadcast in any language
other than English, Spanish or any native dialect, excepting by
special permission. Radio broadcasting stations are required
to submit the names and addresses of oersons who are delivering
speeches over the radio. The Secretary of the Interior may
stop any program during the broadcasting hour if it is immoral,
non-educational or non-entertaining, or against the public inter¬
est. Any licensee or owner of a broadcasting station who broad¬
casts any program or parts thereof not duly approved by the
Secretary of the Interior shall, uoon recommendation of the
Secretary, forfeit his license, in addition to such other
penalties as may be provided by existing laws.
XXXXXXXXX
- 11 -
2/5/37
MUTUAL HOLDS FIRST SALE MEETING
The first general meeting of members and affiliated
stations of the network to discuss sales problems was held
in Chicago February 2nd, and twenty-six representatives of
stations and chains associated with the network attended.
Before the general sales meeting and discussion was
started, President W. E. Macfarlane of the Mutual network gave
a brief address of welcome.
11 The Mutual Broadcasting System was organized with
the purpose of presenting better programs, allowing stations to
maintain their independence, and creating a network of stations
which would serve the country's listening audience and still
allow stations to fulfill obligations to their various local
communities", he said. "During the first year of operation,
the Mutual Broadcasting System had a gross billing slightly
under two millions of dollars, which is quite a record. With
our expansion to a coast- to-coast network with the addition of
the western stations and the Don Lee Broadcasting System in
California on December 29 of last year, the Mutual Broadcasting
System is now operating on an equal basis with the other two
major broadcasting systems of the country. "
The annual meeting of the Board of Directors of
Mutual was held in the Tribune Tower offices of the network on
February 1st, and all of the officers and Directors were re-
elected for the coming year. The officers are: Chairman of
the Board, Alfred J. McCosker; President, W. E. Macfarlane;
First Vice-President, T. C. Streibert; Treasurer-Executive
Secretary, E. M. Antrim, and Auditor, J. A. Cotey.
The Board of Directors is composed of Mr. McCosker,
Mr. Macfarlane, Jack I. Straus, Mr. Streibert, Mr. Antrim,
E. W. Wood, Jr. , and Fred Weber, who also is General Manager of
the network.
XXXXXXXXX
DWIGHT G. WALLACE NAMED NBC PERSONNEL MANAGER
The appointment of Dwingt G. Wallace, until recently
with the Housing Division of the Public Works Administration at
Washington, D. C, , as Personnel Manager of the National Broad¬
casting Company was announced this week. Mr. Wallace succeeds
C. W. Fitch, who was recently made Business Manager of the NBC
Program Department.
Mr. Wallace, who is in charge of NBC employment and
welfare work among NBC employees, has assumed his new duties.
He, like Mr. Fitch, was associated with the Century of Progress
at Chicago, when Lenox Lohr, now NBC President, was in charge.
In June, 1935, Mr. Wallace left Chicago and began his work
with the Housing Division of PWA at Washington.
xxxxxxxxxxx
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTI A L - Not for Publication
INDEX TO ISSUE OF FEBRUARY 9, 1937
WiTIOMl BROMCASTinn CU., Ir.c. '
LEGAL DEPARTMENT
* — '*/ ijvj /
AMI P sS
^8l9[10[ll|32| li2|Bi4|Sf|p
I
FCC Sends Two Aides Into Flood Areas; Ends 24-Hour Watch . ,2
Lohr Says Television Will Rival Entertainment Field . 3
McDonald Donates Boat Radio Sets To Louisville . 4
New 1 KW Station For Massachusetts Recommended . 4
Extent Of Press Interest In Radio Shown By Report . 4
Crosley’s Main Building Intact After The Flood . 5
BBC Solicits Criticism Of Radio Plays . 5
Four Facsimile Stations Controlled By News Groups . 5
Scophony Enters Television Field In England . 6
Sponsor Turns Over Weekly Award To Flood Sufferers . 6
Mixed Population In South Africa Complicates Broadcasting . 7
Chinese To Fight Illiteracy Via Fadio And Films . 7
Television Raises Problems Unknown To Announcer . 8
PCA Income For 1936 Up 11%; Meeting Is Celled . 9
Farrier Joins NBC For Television Research . 9
Panama Proves Good Market F0r U. S. Radios . 10
New Bibliography Of Radio References Is Published . 10
NBC Issues New Publication - "NBC Progress" . .10
Air Line Develops "Anti-Static" Antenna . 11
British Trying To Take Malayan Mart From U. S . . . 11
Industry Notes . 12
No. 1003
February 9, 1937
FCC SENDS TWO AIDES INTO FLOOD AREAS; ENDS 24-HOUR WATCH
The Federal Communications Commission this week sent
two Assistant Chief Engineers, A. D, Ring and A. W. Cruse, itno
the flooded areas of the Ohio River Valley to ascertain "what
lessons have been learned which would be of benefit to the
Commission in coordination of effort in the event of a future
emergency. "
John B. Reynolds, Secretary of the Commission, also
disclosed that the Commission is planning to set up a permanent
organization "which can go into instant action whenever emer¬
gencies arise in any part of the country. "
In view of the improvement in conditions with refer¬
ence to the flooded areas and the need for emergency communica¬
tion, the special 24-hour watch being maintained at the Federal
Communications Commission to handle requests for emergency com¬
munications has been discontinued. However, the special communi¬
cation equipment will be retained for immediate use until after
the flood has passed into the Gulf of Mexico.
"While it has been evident that the various communica¬
tions agencies in the country have functioned admirably under
adverse conditions, it is believed that this recent experience
may offer some basis for improved coordination of effort in the
future, and the Commission feels that it is its duty to cooDerate
with other government departments as well as orivate agencies in
effecting a comprehensive olan for the future, based uoon practi¬
cal experience", Mr. Reynolds said.
The Commission also cancelled its order of January 26,
which directed that no transmissions exceot those relating to
relief work or to other emergencies be made within any of the
authorized amateur bands below 4,000 kc.
"The Commission desires to express its appreciation for
the splendid cooperation and excellent work of all stations and
operators during the emergency", the Secretary stated.
xxxxxxxxx
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2/9/37
LOHR SAYS TELEVISION WILL RIVAL ENTERTAINMENT FIELD
Television within the next two or three years will
become the greatest competitor of the radio broadcast, the movies,
the auto and the theater for America’s entertainment, according
to Major Lenox R. Lohr, President of the National Broadcasting
Company as quoted in a San Francisco interview by Newsdom. The
story continued:
"Within this year, Major Lohr said, televisionVould
be continuously on the air within the New York radius. The exten¬
sion to the rest of the nation will be made as rapidly as techni¬
cal progress permits.
"Television, he admitted, will be expensive, but never¬
theless he expressed a conviction that it would be brought within
the reach of all families able to maintain autos.
"Present plans, he declared, are for the construction
of transmitting centers in cities of 100,000 population or more
of which there are about 100 in the United States.
"Major Lohr predicted that this latest form of American
entertainment inevitably would cut in on every other form of
entertainment from magazine reading, movies, the auto and the
theater, but without harming them to any great extent.
"As regards the theater, he expressed the belief that
while television will cut down immensely the number of road shows
and stock companies, It will not kill the theater entirely as
the best productions of New York and other large centers will
constitute precisely the kind of entertainment that will be
brought within the reach of everyone who can afford a television
set.
"Television, he predicted, is destined to have profound
social effects on the life of the nation, for it will be used not
only for entertainment purposes, but also for conducting the
highest educational courses of the leading universities*
"Aside from studio proauctions, Major Lohr said there
will be moveable transmitting sets that can be taken to any great
event such as the World’s Series, football games of national
importance, presidential inaugurations and other national events
which will be carried onto the receiving set of every family that
possesses one. "
XXXXXXXXX
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2/9/37
MC DONALD DONATES BOAT RADIO SETS TO LOUISVILLE
While listening to appeals for rescue boats over a
Louisville radio station during the height of the flood,
Commander E. F. McDonald, Jr. , President of the Zenith Radio
Corporation, Chicago, realized that many of the boats were not
equipped with radio receivers to receive the messages.
He consequently called Louisville by long distance
telephone and offered to contribute as many boat radio sets
operating only on six volt battery as were needed. He also
offered to send a crew of installation men.
From subsequent reports the rescue work was materially
aided by the equipment.
XXXXXXXXXXXXX
NEW 1 KW STATION FOR MASSACHUSETTS RECOMMENDED
Examiner Ralph L. Walker this week recommended to
the Federal Communications Commission that the apolication of
Hildreth & Rogers Co., of Lawrence, Mass, for a construction
permit to build and operate a broadcasting station on 680 kc.
with 1 KW power, daytime, be granted.
At the same time Mr. Walker recomended denial of the
application of the Old Colony Broadcasting Corporation, of
Brockton, Mass. , for a permit to use the same wavelength.
xxxxxxxx
EXTENT OF PRESS INTEREST IN RADIO SHOWN BY REPORT
The extent to which newspapers have acquired radio
stations already in operation in the past two and one-half
years is strikingly illustrated in a special report filed by
the Federal Communications Commission with the House Appropria¬
tions Committee, Editor & Publisher points out.
From July 11, 1934, to December 8, 1936, 21 news¬
paper interests acquired stations in 54 transactions covering
changes of ownership in broadcasting corporations. In other
deals, 29 newspapers acquired stations by purchasing all assets
of the license holder. These were involved in 116 separate
transfers, many of which were intra-family or intra-corporation
transfers.
XXXXXXXXXX
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2/9/37
CROSLEY'S MAIN BUILDING- INTACT AFTER THE FLOOD
Contradicting reports that the main plant of the
Crosley Radio Corporation in Cincinnati had been destroyed,
Bill Bailey, Publicity Director for WLW and W3AI, said that
the only damage was cracked windows from the excessive heat
during the fire.
"It is necessary to make repairs on the heating
plant", he said, "before we can resume operations there. Two
of our buildings - a warehouse and the shipping department -
were destroyed. "
XXXXXXXXX
BBC SOLICITS CRITICISM OF RADIO PLAYS
The British Broadcasting Corporation has long had
various means of finding out the views of listeners, especially
through its correspondence, but it is anxious to get into more
personal touch with listeners, and proposes to make an experi¬
ment for this purpose. Some 200 listeners interested in radio
drama, and drawn from all sections of the community, have been
invited to listen carefully and as often as possible to radio
plays for a trial period of four weeks. Every week a simple
set of questions will be issued to these listeners and their
answers should provide useful information for those engaged
in the proauction of radio drama. If the experiment is a success,
it may develop into a regular feature of the Drama Department
and may be extended to other departments.
XXXXXXXXX
FOUR FACSIMILE STATIONS CONTROLLED BY NEWS GROUPS
The four licensed facsimile broadcasting stations in
the United States are all controlled by newspaper organizations,
a tabulation by the Federal Communications Commission shows.
The stations are:
W9XAF, The Journal Company, Milwaukee, Wis. , 41000
kilocycles; W9XAG, The Journal Company, Milwaukee, Wis., 1614,
2398, 3492.5, 4797.5, 6425, 8655 kilocycles; W7XBD, Oregonian
Publishing Co., Portland, Ore., 1614, 2398, 3492.5 kilocycles;
and W3XBH, Radio Pictures, Inc., Long Island Cit.v, Y. ,
1614, 2012-2398, 23100-41000, 86000-400000 kilocycles.
XXXXXXXX
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SCOPHONY ENTERS TELEVISION FIELD IN ENGLAND
Although Scophony Television Limited, was not entrust¬
ed by the Government with the provision of the first television
broadcasting station of the British Broadcasting Corporation,
the company has continued its researches and is now actually
producing receiving sets capable of receiving the broadcasts
from the Alexandra Palace, according to Henry E. Stebbins,
Assistant U. S. Trade Commissioner at London. The system is
different from that used by the Baird Television Company and
the E.M.I. Marconi Company in that the principal involved is
mechanical rather than based on the cathode ray tube.
"It is the view of the Scophony engineers that if
television is to have a permanent value as entertainment, the
screen must be enlarged from its present proportions", Mr.
Stebbins said. "It is understood that the object is to obtain
a screen about the size of the home moving picture and the
Scophony engineers believe their system alone is capable of
producing this. The company expects before long to hold public
demonstrations of its medium screen receivers and by the
middle of 1937 to have their cinema apparatus installed for
public use.
"The company claims to hold certain basic patents in
the optical-mechanical field of television, the number being
130 in this country and abroad not including over 100 applied
for and pending,
"The main revenue of the company at this moment is
from the sale of television receivers which is not large. The
company hopes that before long some revenue can be obtained
from the sale of transmitting apparatus not only in this country
but abroad. It is also hoped that the cinema industry will
prove a source of revenue in the future."
XXXXXXXX
SPONSOR TURNS OVER WEEKLY AWARD TO FLOOD SUFFERERS
The Great Atlantic & Pacific Tea Co. , which every week
awards $700 for the outstanding feat of individual heroism in
connection with its broadcasts over the Columbia Broadcasting
System, is now turning the money over to the American Red Cross
for use in flood relief, Victor M. Ratner, Director of CBS Sales
Promotion, reports,
"At a time like this", reads the A. & P. notice,
"when everyone in the affected (flood) areas is doing his ut¬
most to prevent further disaster, it would be unfair to single
out any individuals. "
XXXXXXXXX
- 6 -
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2/9/37
MIXED POPULATION IN SOUTH AFRICA COMPLICATES BROADCASTING
Radio broadcasting in the Union of South Africa is
complicated by the necessity of catering to the tastes of both
the English and native elements of the population, according to
a report to the Commerce Department from Trade Commissioner
F. J. Cunningham, Johannesburg.
In a country as large as the Union and as isolated
from other broadcasting areas, it is pointed out, the problem
of radio broadcasting is a difficult one. Because of the lack
of suitable talent, phonograph records and recorded programs
occupy a large proportion of the broadcasting periods., it was
stated.
The newly organized Government controlled South
African Broadcasting Corporation is making every effort to
improve the quality of its programs ana to introcue changes
designed to bring the broadcasts more in line with popular
demand. However, lack of competition and high listeners' fees
are factors militating against any radical change of policy,
the report states.
Many owners of radio sets in the Union have been hop¬
ing that the Broadcasting Board which controls radio affairs in
the country would look with favor on the licensing of commercial
broadcasting stations whose revenue would come from advertising.
However, the report points out, there is no indication that the
Board intends to depart from its present position which is
against sponsored programs, according to the report.
XXXXXXXXXX
CHINESE TO FIGHT ILLITERACY VIA RADIO AND FILMS
The Chinese National Government is planning to make
extensive use of broadcasting, augmented by motion pictures, in
a nation-wide drive to overcome China's most formidable barrier
to progress - illiteracy, according to World-Radio^ It is
officially estimated that there are still 200,000,000 illiterates
between the ages of 16 and 45 in China, and the Ministry of
Education intends to launch an education campaign during the
coming autumn, and is prepared to spend a large sum of money in
accomplishing its purpose.
According to the scheme, each of the eighteen provinces
will be divided into two or three districts, to each of which
will be allotted a cinema van and opera. tor. The Government is
procuring copies of a number of foreign films treating of science,
public health, industry, sport, and citizenship. Many films will
also be made in China, through the University of Nanking. The
dialect problem will necessitate a separate broadcasting sta¬
tion in every district where there is a local dialect.
XXXXXXXX
- 7 -
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2/9/37
TELEVISION RAISES PROBLEMS UNKNOWN TO ANNOUNCER
The television announcer in outdoor events has many
problems unknown to the radio announcer, according to World-
Radio , BBC organ.
"A nice problem has arisen in regard to television’s
first 'outside broadcast' of a sporting event - an amateur
boxing tournament to be relayed in sound and vision from the
Concert hall of Alexandra Palace", the journal states.
"In effect, the commentator and his companion must
decide when to talk and when to keep silence; when to augment
the viewer's impressions with ringside observations, and when
to let the living picture tell its own tale. Two England v.
Ireland amateur contests are to be staged, each consisting of
four 3-minute rounds.
"Throughout these contests an Emitron camera, con¬
nected by nearly 300 ft. of cable to the nearby television
control- room, will be trained on thering, only 11 ft. away,
occasionally shifting its glance to give a glimpse of the
commentator, Harry Mallin, a midale-weight amateur world
champion, and Leslie Mitchell, the television announcer.
"To say the least, Mr. Mallin will have a more dif¬
ficult task than a commentator in sound broadcasting. His
audience, seeing nearly as much of the fun as he does himself,
will be in a position to criticise, though they will, of courts,
miss those finer points which can be observed only from a ring¬
side seat. Actually, it will be with this thought in mind
that the commentator and his companion will approach their task.
There will be a minimum of comment during the fighting but at
the end of each round viewers will hear the sort of minute sum¬
ming-up which a kindly expert at the ringsiae might give to a
less fortunate friend half-way down the hall.
"Whether this method is the best remains to be seen,
but whatever happens, the experiment will be valuable in
establishing the first technique for television 'O.B.'s'.
"Dogs should be kept at a safe distance from the
television set on February 8th, for in both the afternoon and
evening transmission on that day exhibits from Cruft's Dog
Show at the Agricultural Hall are being brought to Alexandra
Palace to be televised. Television, in fact, offers a new
problem to animal-lovers. Most dogs and cats, one imagines,
are now shock-proof as regaras any noises likely to issue from
the ordinary loudspeaker, but when the supposedly spurious barks
and miaows are supplemented by moving images of the animals
concerned there may be new emotional reactions. The possibil¬
ities are interesting. "
XXXXXXXX
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2/9/37
RCA INCOME FOR 1936 UP 11%; MEETING IS CALLED
Estimated net income of the Radio Corporation of
America for 1936 was $11,500,000, according to announcement
this week by David Sarnoff, President. This is 11.2 percent
more than the actual income of $10,343,200 in 1935.
Net profit amounted to $6,100,000, or 19 percent in
excess of the $5,126,900 of 1935. Gross income was $101,850,000
and $89,228,900.
"The increased profit and the consummation of the
Recapitalization Plan approved by stockholders last year",
Mr. Sarnoff said, "enable us to report estimated earnings on
the common stock of $2,800,000 for the year after providing
$3,300,000 for all 1936 preferred dividend requirements."
The annual meeting of stockholders was scheduled for
April 6 in the RCA Building, New York.
XXXXXXXX
FARRIER JOINS NBC FOR TELEVISION RESEARCH
Clarence W. Farrier has joined the staff of the
National Broadcasting Company, where he will be assigned to non¬
technical research in television.
For the present Mr. Farrier is attached to the office
of 0. B. Hanson, NBC Chief Engineer, where he is prefacing his
work in television with several months intensive study of the
mechanics of sound broadcasting. Later he will assemble and
summarize the results of television experiments as they per¬
tain to program, engineering and sales, for the benefit of
executives concerned with television development.
Mr. Farrier comes to radio from the Tennessee Valley
Authority. He was also prominently identified with the Chicago
Century of Progress Exposition, first as Assistant to the Presi¬
dent and later in charge of the promotion of special events and
the management of the Hall of Science, the Hall of States and
the Lagoon Theater.
XX XXXXXXXX
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2/9/37
PANAMA PROVES GOOD MARKET FOR U. S. RADIOS
Panama continues to be a market of some importance
for radios, practically all of which are manufactured in the
United States, the Commerce Department reports. During the
first 9 months of 1936, the total value of radios and accessor¬
ies amounted to $101,109, which was not only an increase of
approximately 36. 9 percent over the same period in 1935 but
almost equal to the total value of the imports under this item
for the entire year of 1935.
The number of complete radio sets imported during the
first 9 months of 1936 was 1,928, representing an increase of
32.8 percent over the same period for 1935 when the number of
sets imported was 1,451.
XXXXXXXXX
NEW BIBLIOGRAPHY OF RADIO REFERENCES IS PUBLISHED
The Electrical Division of the U. S. Bureau of Foreign
and Domestic Commerce has issued a revised bibliograohy of radio
references. It was compiled by Lawrence D. Batson.
The bibliography contains titles of all publications
known to the office as bearing on any phase of radio, classified
according to general subjects. Prices are quoted on both govern¬
ment and private publications.
XXXXXXXX
NBC ISSUES NEW PUBLICATION - "NBC PROGRESS"
NBC employees, clients, advertising agencies and a
large list of top-flight executives in the U. S. have received
the first issue of a new weekly publication, "NBC Progress".
"NBC Progress" is intended to summarize current activ¬
ities of the National Broadcasting Company with particular
emphasis on its growth, developments and service.
XXXXXXXXX
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2/9/37
AIR LINE DEVELOPS "ANTI-STATIC" ANTENNA
Using a passenger plane as a flying laboratory for
two years, United Air Lines communication engineers have achieved
"significant results" in the battle against weather and radio
problems, company officials announced in Los Angeles this week.
Executives said successful tests have been completed
with an "anti-static" airplane radio antenna, designed to
insure clear reception of voice and directive beam signals
despite heavy static sometimes created by snow or rain.
The device consists of a circular copner tube in which
is coiled 100 feet of antenna wire - longer than the company’s
standard straight-wire antenna. The tubing shields the wire
from snow or rain static and oermits unlnterruoted receotion of
directive beam.
The style of mounting permits the receotion of two
beams - one marking the center line of the airport runway and
the other the altitude in the downward glide for a. landing with
closed cockpit.
XXXXXXXXX
BRITISH TRYING TO TAKE MALAYAN MART FROM U. S.
A recent announcement appearing in the Malayan press
states that British manufacturers of radio sets are now taking a
keen interest in developing short wave sets suitable for this
market; at present this market is dominated by American short
wave sets, according to U. S. Trade Commissioner Harold D.
Robison of Singapore.
"The General Electric Company has bnught out a designer
to Malaya who is studying conditions here and in Netherland
India" he writes. They claim that they have already developed
a receiver which is as sensitive as those produced in America.
They also claim to have improved the signal so that the noise
ratio is better than that of American sets. This is of particu¬
lar interest as the elimination of noise has been extremely
troublesome. "
XXXXXXXX
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2/9/37
Daniel R. Hodgdon and National ^ood Bureau, Inc. , both
of 328 Greenwich St., New York City, have been ordered by the
Federal Trade Commission to discontinue making false and mis¬
leading representations and disparaging statements in advertis¬
ing and promoting the sale of peanut oil. Engaged by a manu¬
facturer of peanut oil to conduct a sales promotional campaign,
the resDondents, according to the findings, used the radio
orincipally in advertising the product with Hodgdon broadcasting
the lectures and addresses.
A 12.7 percent increase in time billings is reported
for the Mutual Broadcasting System for the month of January,
1937, in comparison with the same month's figures in 1936. The
total billings for January, 1937, were $187,361.73. For the
same month in 1936 they were $166,266.18.
I
The Central Newspapers, Inc. , including Indianapolis
Broadcasting, Inc., and Broadcasting Sales Corporation of Indiana,
reDorts the following for 1936: Net income, $110,175, against
$79,164 in 1935.
NBC programs during 1936 drew 5,560,671 responses to
establish a new all-time high for audience mail. This total
marks an increase of 31.7% over last year, and 7.2% over 1934 -
the previous record year. 1936 also boasts the greatest response
ever received in one month. During March, 1,015,372 letters
flooded NBC's mail room - over 100,000 of them coming in on a
single day.
A favorable report on the apolication of the Golden
Empire Broadcasting Co. for a oermit to erect a new broadcasti i,
station at Marysville, Cal., for operation on 1140 kc. , 250
watts power, daytime, wps filed with the Federal Communica tions
Commission last week by Examiner George H. Hill. The recommenua-
tion was conditional upon the denial of the amplication of the
Mary sville-Yuba Publishers, Inc., for a similar assignment.
XXXXXXXXXXX
12
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTI A L - Not for Publication
FE
Television Still Around The Corner, Says Philco . 3
Skinner Advocates "G-ood Roads" Television Campaign . 4
Expert Notes Few Gadgets In fewest Television Set . 5
Connie Mack Says Fadio Helps Baseball, . 5
Connery Predicts Action On Amended Pesolution . 6
Two New Stations Authorized By The FCC . 6
British Seek Wider S-W Band, International Control . 7
Radio Advertising Peached New High In 1936. . 8
Warsaw To Have Experimental Television Station . 9
Why British Couldn't Sell Records Of Windsor's Speech . 9
Police Stations Warned To Keep To Specified Hours . 10
Flood Relief Proved Public Necessity Of Radio - Arnold . 10
Paley Chosen One Of Best Dressed Men In U. S . 10
Briefs . . . 11
Uoucks Retained As Special Counsel By NAB. . 1M
Uruguay Growing Market For Radio Sets . 12
No. 1004
PHILCO GOES STEP FORWARD IN TELEVISION
After being shown high fidelity 441 line television
pictures whereby the second hand could be seen on a watch three
miles away, and even the serial numbers read on a dollar bill,
the consensus of opinion of those attending the demonstration
in Philadelphia Thursday was that Philco Radio and Television
Corporation had made a decided step forward. The improvement
in the 441 line picture, the standard for home movies set by the
Padio Manufacturers' Association, was further impressed on the
more than 200 guests, editors and representatives of newspapers
and magazines, when compared with the 345 line image shown six
months ago by Philco, which at that time announced that its
equipment was already obsolete and that it was tearing it down
to rebuild it to meet the new high standard just demonstrated
in Philadelphia.
While the distance between the transmitter at the
Philco plant and the six receivers at the Germantown Cricket
Club in the suburbs of Philadelphia is about three miles, the
range of the transmitter was said to be approximately 10 miles.
The television pictures, in white and black, were shown in the
half raised top of an ordinary receiving set. The size was 7-|
by 10 inches and the sound of the radio set was synchronized to
the pictures. It was said that the service ran^e of television
in the beginning would be about 25 miles and therefore would
first be seen in larger cities such as New York, Chicago and
Philadelphia.
The program included a fifteen-minute television
fashion show, presented by Bonwi t-Teller of Philadelphia, and
an interview with Boake Carter, news commentator, quizzing
Connie Mack, famous baseball manager, on 193? baseball prospects.
Musical features from the movies and news reels were shown.
Sayre M. Rams dell, Vice-President of Philco Padio and
Television Corporation, who acted as master of ceremonies, said
that television would never supersede sound broadcasting. Each
has its own field and function and sound broadcasting will con¬
tinue to occupy its important place in the home, he added,
A. M. Murray, engineer in charge, raised quite a laugh
when he remarked tha.t a pretty girl was the poorest object to
televise because if the picture were imperfectly shown, our
imaginations would fill in the gaps. Mr. Murray said that Philco
had pioneered the "wide channel” - 6 megacycles - move "Which
goes hand-in-hand with high-fidelity television. "
2
2/12/36
F. Raymond Johnson, President of Bonwit Teller, in
presenting the fashion show, said that of all the industries,
women’s fashions would benefit mostly by television.
The "dollar bill" test, as explained by Philco
engineers, consisted in placing before the television camera
a card on which was attached a one dollar bill, laid lengthwise.
"This was flanked on either end by similar bills,
placed vertically, so that the width of the test chart was about
ili inches", the explanation went on, "This area should be com¬
pletely scanned so that the three one dollar bills just fill the
viewing frame from side to side. The test consists in being
able to read the serial number on the central bill. To make this
legible a truly high-definition 441 line system is required.
This interesting test, carried out by material usually at hand,
can be tried in any television studio. "
XXXXXXXXX
TELEVISION STILL AROUND THE CORNER, SAYS PHILCO
Despite the success of their Philadelphia show, manu¬
facturing officials gave a very definite impression that tele¬
vision would not be introduced this year, at least, and might
still be much farther way. Larry E. G-ubb, President of the
Philco Radio and Television Corporation, said his company was
not anticipating early commercial television.
In answer to the question, when will we have television,
Sayre M. Ramsdell, Vice-President of the Company, replied:
"On this point I will venture no prediction as to time.
Certain things must be accomplished before it can become gener¬
ally used. These things are:
"1. Technical standards for television transmission will
have to be approved by the Federal Communications
Commission so that any receiver will receive from any
transmitter within range.
"2. The present limited range of television, averaging
about 25 miles, will have to be increased. Key
cities, such as New York, Philadelphia, San Francisco,
Boston, Washington will have television first.
"3. Before we. have commercial television, the G-overnment
will have to issue commercial licenses suitable for
television, that is in the 42-90 megacycle band.
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"4, A source of programs will have to be developed.
In putting on a short sketch by television more is
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"5. Reduction in the cost of television receivers. At
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xxxxxxxx
SKINNER ADVOCATES "GOOD ROADS" TELEVISION CAMPAIGN
James M. Skinner, President of the Philadelphia
Storage Battery Company, addressing newspaper and magazine
editors at the Philco television demonstra tion, declared that
without the help of the press there never could be any television
Through the newspapers ana magazines, Mr. Skinner, who is Chair¬
man of the Radio Manufacturers’ Association's Television
Committee, said, the manufacturers through the press would have
to cultivate favorable public opinion to allocate the at present
all too few wave bands to television.
Mr. Skinner explained that this valuable space is
being sought by the Army and Navy and other government depart¬
ments. He said most certainly in time of war the Army and Navy
should have it and was in sympathy with their peacetime experi¬
ments, but believed if they went a few miles at sea or elsewhere,
these could be carried on without blocking television development
He said he thought the Federal Communications Commission was
favorable to television, especially so in view of the support
other governments are giving television in European countries.
Mr. Skinner concluded by advocating a "good roads"
television campaign.
"No matter how good an automobile you had, where would
you be without good roads?" Mr. Skinner asked. "mhere is a
danger of our making a good television receiver and a good tele¬
vision transmitter without being allocated the proper frequencies
for transmitting the television pictures. "
XXXXXXXX
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EXPERT NOTES FEW GADGETS IN NEWEST TELEVISION SET
An advance noted by Orrin E. Dunlap, Jr. , radio editor
of the New York Times and author of "The Outlook for Television",
a handbook on the subject, in the new television receivers
demonstrated at Philadelphia by Philco was in the reduction of
controls from fourteen to ten and of the number of vacuum tubes
from thirty- three to twenty- six.
"This simplification aids in tuning and lowers produc¬
tion costs, according to the engineers", Mr. Dunlap wrote,
"Furthermore, the greenish tint which has characterized
telepictures in past demonstrations has been replaced by black
and white pictures.
"It was noted that sound is setting a fast pace in
quality for the radio pictures. The television ultra-short
wave sound equals the tonal quality of the best broadcast
receivers, but the clarity of the pictures has yet to equal the
standards established by the cinema or home movies.
"The telepictures were reproduced by a conventional
television console receiver. The top of the cabinet when raised
presents the ’screen' on the underside of the lid. From that
point spectators up to about ten feet away can watch the show. "
XXXXXXXX
CONNIE MACK SAYS RADIO HELPS BASEBALL
In the course of an interview between Connie Mack,
Philadelphia baseball magnate and Boake Carter at the Philco
television demonstration, Mr. Carter asked:
"Do you look for still greater attendance at baseball
in the next few years? I am especially interested to learn
whether radio broadcasts of daily games in all league cities
hurt attendance. "
To which Mr. Mack reolied:
"I anticipate attendance figures will continue to
climb. We are entering another new oeriod of tremendous sport
interest. Broadcasting of games heloed attendance, rather than
hurting it, on the same basis that the newspapers stimulate base¬
ball attendance in ratio to the space they devote to the game. "
X X X X X X X X X X
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CONNERY PREDICTS ACTION ON AMENDED RESOLUTION
Representative Connery (D. ), of Massachusetts, this
week confidently predicted that the House Pules Committee will
report favorably his amended resolution calling for an investi¬
gation of radio.
His amended resolution eliminates direct reference to
the Federal Communications Commission but specifies the three
major networks - NBC, CBS, and Mutual - as charged with operat¬
ing a monopoly in the broadcasting field.
It is understood that the change in the resolution
was made at the request of influential members of the Pules
Committee, who stated that the measure would never be reported
so long as the inquiry was directed cniefly at the FCC.
Mr. Connery declined official comment on this report, but
he pointed out that whatever investigation is ordered will be
bound to delve into the administration of the radio field by
the FCC.
xxxxxxxxxx
TWO NEW STATIONS AUTHORIZED BY THE FCC
Two new broadcasting stations were authorized this
week by the Federal Communications Commission.
Harold F. Gross and Edmund C. Shields, of Saginaw,
Mich. , were granted a permit to operate on 950 kc. with 500
watts daytime. The Examiner was reversed.
The News Publishing Co., of Santa Barbara, Cal., was
given a permit to operate on 1220 kc. with 500 watts unlimited
time. The Examiner was sustained.
Five other applications for new stations were denied.
Oral argument was set "for Aoril 1st on the apolication of
former Senator C. C. Dill to build a station in Washington.
XXXXXXXX
The new CBS building in New York will be bomb-proof,
as well as gas-proof. Padio City, NBC headquarters, also is
gas-proof.
XXXXXXXX
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BRITISH SEEK WIDER S-W BAND, INTERNATIONAL CONTFOL
The British Post Office is preparing to demand a
broader international short-wave band and the formation of' an
organization to exercise international control of the alloca¬
tion of short-wave frequencies, it is learned on reliable
authority. The action will be taken at the Telegraphic Com¬
munications Union conference to be held this year in Cairo.
The British Post Office, inspired by the British
Broadcasting Corporation, holds that reception conditions on
the 49 and 31 meter bands has become "chaotic" and is rapidly
becoming worse due to the operation of unauthorized stations
on these frequencies.
Previous conferences of the Telegraphic Communica¬
tions Union held at Washington in 1927 and Madrid in 1932
allotted seven wavebands for short-wave broadcasting, but
with the growth of radio and the construction of new short¬
wave stations of high power in all parts of the world, it
has now become apparent that with so many transmitters operat¬
ing within these bands some form of international control is
necessary to avoid mutual interference.
The BBC has prompted the British Post Office to take
the action now proposed, and B3C officials will probably be
attached to the Post Office Delegation which will visit Cairo.
The BBC has reported to the British Post Office that while
transmissions on the lower short wavebands have not as yet
been seriously impaired, reception conditions on the 49 and 31
meter wavebands are now in a chaotic condition.
The United States, Canada, Newfoundland, and the
West Indies have suffered more severely than other parts of the
world, as frequencies in these wavebands are the most suitable
for transmissions from Great Britain to the American Continent
during the Winter months. The BBC has become seriously alarmed
at the numerous reports of interference on the Empire wave¬
lengths received from Canada and the United States this Winter.
France, Italy, and Germany will support the proposal for inter¬
national control at the Union meeting, it is reported.
The chief trouble-makers in the short-wave band are
stations in South America. Many of these are small low-powered
transmitters built by commercial enterprise operating on wave¬
lengths for which no international notification has been given.
While the low power of these transmitters prevents their being
heard intelligibly outside local areas, their power is suf¬
ficient to cause heterodyning ana serious interference with
the high-powered transmitters designed to give a world-wide
7
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2/12/37
service. These transmitters in South America are not intended
to give an international service, hut merely to orovide a local
broadcasting service within the countries in which they operate
A proposal probably will be made in Cairo that short-wave trans
raitters designed only to provide a broadcasting service in
local areas should operate within a limited area of the short¬
wave broadcasting bands.
XXXXXXXXXX
RADIO ADVERTISING REACHED NEW HIGH IN 1936
Broadcast advertising volume reached a new all time
high during 1936, the National Association of Broadcasters
reported this week. Gross time sales amounted to $107,550,886
as compared to $87,523,848 in 1935, an increase of 23.9$.
Although all portions of the medium registered marked increases
national non-network advertising exhibited the most pronounced
gain, rising 41.5$. National network volume rose 19.2$,
regional network volume 23.1$ and local broadcast advertising
16.0$.
Non-network advertising registered a gain of 27.9$
over 1935. Local stations continued the trend of 1934 and
1935 by showing the greatest increase in sales of any class of
station. The South Atlantic-South Central Area led all geo¬
graphical districts by increasing its sales 52.0$ over 1935.
However, all classes of stations and sections of the country
enjoyed considerable increases over 1935 levels.
Although live talent programs represented 47.9$ of
the total non-network sales during 1936, transcript ions
increased to a greater extent than any other type of rendition.
Transcriptions during the past year showed a 50.6$ gain over
1935.
General gains were experienced in most all broadcast
sponsor groups during the year 1936. Only drug and confection¬
ery advertising showed a decline as compared to the previous
month. Principal gains were shown in the miscellaneous, soap
and kitchen supply, automotive, beverage, tobacco, radio set
and financial groups.
XXXXXXXXXX
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WARSAW TO HAVE EXPERT MENTAL TELEVISION STATION
According to the Polish press a short time ago, the
Polish Radio Company and the State Institute for Tele-Communica<
tion have become jointly interested in erecting an experimental
television station in Warsaw. Work on the project has been
split up between the two institutions, the former to effect the
shortwave broadcasting and sound apparatus, and the latter the
television itself. Thus, in connection with its assignment,
the Polish Radio Company has leased the roof terrace of the
Prudential Building, the highest building in Warsaw. There
a 14 meter tower topped off by a platform will be erected on
which will be fixed a 12 meter mast bearing a double antenna
rigging for sound and vision broadcasting. Underneath the
terrace, the various equipment and mechanism will be housed.
This project is primarily for experimental work and
the desire to keep up with world progress maae in this field of
radio. Of course, in time, it is expected that the experience
gained will decide on the choice of a system of television for
permanent and commercial use.
xxxxxxxxxx
WHY BRITISH COULDN'T SELL RECORDS OF WINDSOR'S SPEECH
The British Broadcasting Corporation has issued the
following explanation of why records of the Duke of Windsor's
abdicating speech was recorded in the United States but not in
England:
"Some comment has been occasioned by the fact that,
although no records of the Duke of Windsor's soeech from Windsor
Castle could be obtained in Britain, they seemed to have been
selling in large numbers in America and elsewhere. In Britain
the position so far as the making of gramoohone records is con¬
cerned is governed by the Dramatic and Musical Performers'
Protection Act (1925), which prohibits the making of a record fc
sale to the public without the written consent of the performer.
"In the case of his former Majesty's speech, the
authorities concerned specifically requested that no record
should be made or issued. In the case of foreign countries,
the position as regards the making of records is governed by
the law in each country. Some of the broadcasts made by King
George V were recorded by special permission, and the profits
from the sales of these records were devoted to charity. "
XXXXXXXXXX
9
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2/12/37
POLICE STATIONS WARNED TO KEEP TO SPECIFIED HOU^S
The Federal Communications Commission this week
issued a formal warning to general experimental stations
operating as municipal police stations on frequencies above
30,000 kc. to keep to their specified hours. Some of them,
the Commission said, are transmitting at all times.
"This practice has given rise to interference at
distances of over a thousand miles from the originating sta¬
tion", the FCC stated. "The Commission regards continuous
radiation of the unmodulated carrier wave as unnecessary and
therefore prohibited, and appropriate action will be taken in
case of violations. "
XXXXXXXXXX
FLOOD RELIEF PROVED PUBLIC NECESSITY OF RADIO - ARNOLD
The relief activities of numerous broadcasting sta¬
tions during the Ohio Valley flooo. proved the "public neces¬
sity" of radio, Frank A. Arnold stated in the current Editor &
Publisher.
"The condition on which a radio station may obtain
a broadcasting license is that it conforms to ’public interest,
convenience and necessity Mr, he said. "It is rarely that we
have such a demonstration of necessity values as that which
has been associated with the recent flood conditions in the
southeast and Middle West. Had there been the slightest doubt
in the mind of anyone as to the practical value of radio in
an emergency, the record of efficient service rendered after
all other methods had failed would be a comolete answer to the
question. "
XXXXXXXXXX
PALEY CHOSEN ONE OF BEST DRESSED MEN IN U. S.
William S. Paley, President of the Columbia Broad¬
casting System, was one of the sixteen male fashion leaders of
the United States so designated this week by the Merchant
Tailors' Designers Association, meeting in Washington.
The style leaders, among them President Roosevelt,
were labelled "Twentieth Century 3eau Brummels".
XXX XXX XXX
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BRIEFS
Station WAAB, Boston outlet of the Mutual Broadcast¬
ing By stem, was given a favorable report this week by Examiner
Robert L. Irwin on its application for an increase in daytime
power from 500 watts to 1 KW, using 1410 kc.
Senator Arthur Caoper (R. ), of Kansas, has intro¬
duced a bill which has a provision prohibiting the broadca sting
of any liquor advertising.
The Federal Communica tions Commission has scheduled
hearings on the charges that WTCN, Minneapolis, affiliated
with the St. Paul Pioneer Press , has been guilty of trafficking
in radio licenses. T'he ^CC received a comolaint to the effect
that WTCN endeavored by offers of financial assistance to move
WLB , of Minneapolis, and WCAL, of Northfield, Minn., from the
1250 kc. frequency, leaving W^CN sole ooerator on that space.
WLB and WCAL, according to the alleged arrangement, would be
moved to the 760 kc. frequency, and be compensated with higher
power range and funds to aid in transfer.
A radio research laboratory which will cost L50,000
is to be constructed by the Australian Government at Canberra.
It will be under the supervision of the Postmaster-General’s
Department, and will study modern developments in the equipment
used for broadcae&stin-,, television, telegraphic and telephonic
communications. It is expected that the construction of the
new laboratory will be commenced about the middle of 1958.
A new station for Owensboro, Ky. , in the name of the
Owensboro Broadcasting Co. , was recommended to the Federal
Communications Commission this week by Examiner P. H. Hyde.
The facilities are 1500 kc. with 100 watts power, unlimited time
Radio rs version of the journalistic adage about the
man biting the dog finally has been recorded. KMMJ, Clay Center
Neb., owned by a group headed by Don Searle, manager of WIBW,
Topeka, and Herb Hollister, manager of KAN3, Wichita, have
purchased the Clay County Sun, a weekly, and will publish it as
a subsidiary of KMMJ, Inc, although it will be a separate
enterprise.
XXXXXXXXXX
11
2/12/37
LOUCKS RETAINED AS SPECIAL COUNSEL BY NAB
The National Association of Broadcasters this week
announced that it had retained Philip G. Loucks, former Managin'-:
Director of the National Association of Broadcasters, and now
with the law firm of Loucks & Sharfeld, as special counsel "with
respect to certain matters growing out of the suit instituted by
the United States government against the American Society of
Composers, Authors and Publishers.
Sped fically this representation involves only tnose
matters which are directly connected with the efforts of the
interested parties to stipulate, as far as possible, the facts
in the suit", the NAB statement said.
XXXXXXXX
URUGUAY GROWING MARKET FOR RADIO SETS
The ratio of radio receiving sets to population in
Uruguay is notably high among Latin American countries, accord¬
ing to a report from Vice Consul H. B. Wells, Montevideo, made
public by the Commerce Department.
It is estimated that there are approximately 115,000
sets in operation throughout the country at the present time,
or one to every 15 inhabitants. Uruguay has 39 broadcasting
stations, or one to every 50,000 persons, with Montevideo, the
capital and metropolis, accounting for 24 stations, the report
shows.
The great bulk of the radio sets used in Uruguay are
short-wave models, there being little demand for one-wave sets.
Short-wave reception from Europe is reasonably satisfactory but
American broadcasts are blanketed by German stations, it was
stated.
The Uruguayan demand for imported radio receiving
sets showed a marked increase during 1936 as a result of
improved economic conditions and the consequent increased pur¬
chasing power of the market. Local manufacturers are now produc¬
ing sets, using both imported and locally-made parts on an
appreciable scale, according to the report,
XXXXXXXXXX
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2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDEI
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LEGAL DEPARTMENT
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A
INDEX TO ISSUE OF FEBRUARY 16, 1937.
Wheeler Plans Bill To Bar Press Radio Domination . . 2
New Radio Workshop Program Scheduled . 3
Geddes Assails Idaho Bill To Ban Use Of Auto Radios . 4
Tighter Pules Ordered Re Financial Responsibility . 6
Fog Helps Rather Than Hampers Television Test . 6
Small Paper Finds Radio Station An Asset . 7
U. Of P. Honors Ormandy . .
BBC Broadcasts Songs Rejected By Publishers
Amended Copeland Food-Drug Bill Reported favorably . 9
Station Operator Appeals To Congress On Copyright . 10
NBC's January Revenue Highest In Its History . 10
Private Phone Placed On Market By Philco . 11
Industry Notes . 12
No. 1005
co co
February 16, 1937.
WHEELER PLANS BILL TO BAR PRESS RADIO DOMINATION
Following receipt of requested information from the
Federal Communications Commission, Senator Wheeler (D. ), of
Montana, Chairman of the Senate Interstate Commerce Committee,
announced late last week that he would introduce a bill to bar
newspapers from owning radio broadcasting stations.
He made a similar announcement prior to the opening of
the 75th Congress, but he postponed action until he had obtained
data and a legal opinion from the ^CC. Early this week Senator
Wheeler had not started drafting the bill.
The Montana Senator said his puroose is to prevent
monopoly of channels of public information. As any law Congress
might enact in this regard would not be retroactive, the 150
stations now owned or controlled by newspapers would retain their
holdings.
The Communications Commission's report showed that 52
of these stations were acquired by newspapers during the past
year and that 100 applications are pending for licenses from per¬
sons affiliated with newspapers.
An opinion by Hampson Gary, FCC General Counsel, that
a law barring newspaper ownership as radio stations, "should meet
the constitutional requirement" was interpreted by Senator Wheeler
as sustaining the legality of his proposal.
The Senator had asked the Commission for an opinion on
the constitutionality of legislation "denying the right of news¬
papers to obtain broadcasting licenses in the future and requiring
them to divest themselves of existing rights in broadcast stations
within a reasonable time. "
In his opinion, Mr. Gary said the question was "not
free from doubt, and therefore, I think the inquiry does not per¬
mit a categorical answer. " But he added:
"I am of the opinion that the mutual ownership and con¬
trol of newspapers and broadcast stations bear a reasonable rela¬
tion to and have an effect upon interstate commerce and, there¬
fore, if the Congress enacted a law of the purport suggested, it
should meet the constitutional requirements. "
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On the question of newspaper ownership, Senator Wheeler
also asked the Commission whether it had authority at the pre¬
sent time to deny applications from newspapers for stations on
the ground of "public policy. "
Mr. Gary held there was no such authority but that the
Commission was empowered to consider the business connection of
applicants in deciding whether a license would serve "public
interest, convenience or necessity."
Senator Wheeler contended also that for one newspaper
in a community to own a broadcasting station "makes it possible
to give another newspaper unfair competition" by combining
advertising rates or using the radio to advertise the paper.
Opposition to the control of cleared channels by radio
chains was expressed by the Senator. He said the chains might
need one or two for originating orogrsms, but not more. He
characterized acquisition of suDer-oower stations by the chains
as "a very distinct tendency toward monopoly. "
XXXXXXXXXX
NEW RADIO WORKSHOP PROGRAM SCHEDULED
Plans for a six-weeks session of the Radio Workshop
from April 5 to May 15 to provide training opportuni ties for
persons desiring to enter the new field of educational broadcast¬
ing were announced this week at the Federal Office of Education.
The Radio Workshop is conducted by New York University
in cooperation with the Educational Radio Project of the Office
of Education, United States Department of the Interior.
Expert instruction and practice under supervision will
be provided in four major fields of radio: Production and direc¬
tion of programs, script-writing, acting, and the use of music in
radio. The Workshop staff of directors comprises: Earl McGill,
Director of Production; Lawrence Paquin, Director of Acting and
Microphone Technique; Burke Boyce, Director of Script-Writing;
Rudolph Schramm, Music Director, and Philip Cohen, Supervisor
of Student Radio Programs.
Besides participating in activities at the Workshop,
all students will be given an opportunity to hear the ideas of
leaders in commercial and educational broadcasting. Students also
will write and produce their own programs, possibly over some
local New York station.
The Radio Workshop, being a school where radio techni¬
ques are learned through participation in actual work, will have
few lectures during the entire session. Instead, the students
will be given assignments which they undertake under expert
supervision.
3
2/16/57
New modern studios have been installed for the Work¬
shop by New York University at 20 Washington Square North, New
York, N. Y. The Educational Radio Project's production unit
also has headquarters in this building. This unit is oresent-
ing five programs each week over NBC and CBS networks
XXXXXXXXXX
GEDDES ASSAILS IDAHO BILL TO BAM USE OF AUTO RADIOS
Ten reasons why the proposal to prohibit the use of
radio receivers in private automobiles while in motion should
not be adopted by the Idaho House of Representatives were out¬
lined this week at a hearing in Boise by Bond Geddes, Executive
Vice-President of the Radio Manufacturers' Association.
The bill, sponsored by State Senator P. E. Whitten,
passed the Idaho Senate on February 5th by a close vote of 22 to
20. It is the latest of several attempts by State Legislatures
to bar the use of auto radio receivers.
Mr. Geddes, in a prepared statement before the Committee
on State Affairs, said in part:
"The pending bill is peculiar in that it would not
prohibit sale or installation of automobile radios, but its pur¬
pose and effect would be to prohibit their public use. It would
be a misdemeanor, carrying both fine and imprisonment penalties
'for any person while operating or for any person while riding
in a motor vehicle upon the public highways of the State of
Idaho to connect or turn on a radio in such automobile and
receive therefrom any sound, voice or music. ' Official police
cars would be exempt. The result actually would be public pro¬
hibition of automobile radio in Idaho, applying not only to
Idaho citizens, but also to great numbers of tourists and others
from outside.
"An important point for your attention is the fact
that the bill is without any statement or declaration of any
cause, reason, purpose or public necessity. It is a flat and
unqualified ban on public operation of radio in automobiles.
The bill does not state that it is necessary or reasonably
required in the cause of public safety or for any cause or pur¬
pose whatever, real or imaginary.
"Senator Whitten, author of thebill, has stated that
the purpose of this bill is 'to draw attention to and if possible
minimize the horrible fatality and accident tolls which auto¬
mobiles are taking on our public highways'. We of the radio
industry are in full sympathy with this objective of reducing
highway hazards, making automobile driving safer. That is why
we are appearing today against this&ill which would not make
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for safer driving but instead would remove a factor which makes
automobile operation actually safer. That automobile radio is
really a safety factor and tends to reduce rather than increase
highway accidents is the overwhelming judgment of State and
police officials throughout the nation, including many officers
of your own State.
"Summarizing our opposition to this bill, it is
established conclusively that:
"First, that the pending legislation is unnecessary,
meeting no recognized or demonstrable necessity or condition in
Idaho.
"Second, the bill is unwise in that it would remove
a safety factor from the Idaho highways because automobile radio
is a safety accessory. It reduces driving speed, promotes
alertness of automobile operators and in many other respects
tends to lessen and not increase highway hazard and accidents.
"Third, the Idaho Commissioner of Public Works and
Chiefs of Police of eleven of the largest cities in Idaho all
state that there is no record of a single traffic accident
caused by or even attributable to automobile radio. Therefore,
there is a total absence of reasonable necessity for this
prohibitory legislation.
"Fourth, Commissioners of Motor Vehicles of an over¬
whelming majority of States in the Nation and also oolice
officials also record an absence of any traffic accidents due
to automobile radio and regard prohibitory legislation as both
unnecessary and unwise. No State or city has adopted this type
of prohibition against automobile radio and we have no record
of a single accident, anywhere in the United States, which it
has caused although automobile radio has been in use since 1930
and there are now over 4,000,000 automobiles equipped with radio.
"Fifth, safety of automobile radio also is attested
by insurance companies in that none require any extra oremium
for insurance of car operators or its use in automobiles.
"Sixth, this legislation would unnecessarily and
seriously injure many Idaho business interests and citizens,
especially broadcasting stations and radio and automotive dis¬
tributors, dealers and service men. Important Idaho tourist
trade would be greatly harmed through the resentment against the
proposed law from tourists. Also there are now about 13,500
Idaho owners of automobile radio who have invested about $700,000
in such equipment and who would be barred from its use, its farm
and business utility and rightful enjoyment.
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"Seventh, also unnecessarily injured would be import¬
ant national manufacturing interests, both automotive and radio.
"Eighth, validity of the pending legislation is
questioned as a violation of exclusive jurisdiction over radio
vested in Congress and the Federal Communications Commission,
as decided in Federal court rulings.
"Ninth, the legislation is arbitrary and unreasonable,
without demonstrable public necessity or public demand and it
would be an invalid exercise of police power.
"Tenth, if passed the legislation in actual practice
would be unenforceable as is attested by law enforcement
officers of your State and many others. It would become a
’nuisance* law and lead to wide and justified public protest
with eventual repeal. ”
XXXXXXXXX
TIGHTER RULES ORDERED RE FINANCIAL RESPONSIBILITY
More rigid requirements as to financial responsibil¬
ity of applicants for broadcast facilities have been ordered by
Davis G. Arnold, Chief Examiner of the Federal Communications
Commission.
Examiners were instructed to demand more evidence of
ability to build and operate stations than "self-serving
declarations". Statements must be furnished under oath as to
assets and liabilities.
XXXXXXXX
FOG HELPS RATHER THAN HAMPERS TELEVISION TEST
"It has now been confirmed that fog has no adverse
effect on television signals", the British Broadcasting Corpora¬
tion reports. "During a recent Lonaon fog good pictures were
obtained not only within the normal range of twenty-five miles,
but at Coventry, ninety miles from Alexandra Palace. Not only
were the pictures clear, but there were no secondary images such
as might be expected in long-distance reception. What is per¬
haps even more astonishing is that normally Coventry does not
receive the television signals at sufficient strength to make
a picture. "
XXXXXXXXX
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SMALL PAPER FINDS RADIO STATION AN ASSET
"Since Congress passed the Communications Act in
1934, radio competition which formerly was a problem largely of
metropolitan newspapers, has become a problem confronting small
daily publishers", Editor & Publisher states. "The Communica¬
tions Act empowered the Federal Communications Commission to
license stations of 100 watt power in communities where radio
facilities were not already established.
"Many publishers of daily newspapers in cities of
10,000 population and even smaller are face to face with choos¬
ing between going into the radio broadcasting business or having
radio competition clutter up their fields.
"The Poseburg (Ore.) News- Review met the situation
by promptly making application for a radio station license. The
license was duly granted and the News- Re view is now operating
its own radio station with the call letters KRNR. Harris Ells¬
worth, publisher of the News-Review and now director of radio
station KRNR, makes the following observations based upon his
12 months' experience in operating a newspaper and radio sta¬
tion combination in a small city.
"'We are decidedly pleased with our new departments
Were we required now to make the decision which we made nearly
two years ago, we could do it with the greatest ease. We decid¬
ed to go into the radio broadcasting business - and would make
the same decision over again if called upon to do so, with no
misgivings at all.
"'Our station, KRNR (K-Roseburg News-Review) has been
operating 12 months. Although we elected to get it firmly
established and with favorable public acceptance before attempt¬
ing to make a systematic effort to sell radio advertising, we
have made a modest profit with the station every month thus far.
"'Does the radio station do the News-Review any good -
that is, do you use it to promote the newspaper? That question
is often asked. Our answer, borne out by our circulation
records, is that the radio station is a decided aid in building,
circulation. "
XXXXXXXXX
7
2/16/37
U. OF P. HONORS ORMANDY
Eugene Ormandy, conductor of the Philadelphia
Orchestra, was awarded an honorary degree at the mid-year
convocation of the University of Pennsylvania last Saturday
when 229 students were graduated.
Mr. Ormandy, former leader of the Minneapolis
Symphony Orchestra, and internationally- famous director, was
made a Doctor of Music.
Mr. Ormandy was praised as a "native of Hungary, but
citizen of two continents", as he received his degree from
Dr. Thomas G. Gates, President of the University. He was
cited for "a wide knowledge of musical literature and rare
understanding of a composers meaning."
XXXXXXXXXX
BBC BROADCASTS SONGS REJECTED BY PUBLISHERS
The British Broadcasting Corporation recently broad¬
cast a program of son&s which publishers would not accept.
"It was listened to with considerable interest",
the BBC reported, "but the general reaction seemed to be
that the publishers knew their own business very well. "
The B3C chose a jury of ordinary listeners, includ¬
ing a policeman, a business girl, a page boy, and a nurse,
picked at random. They sat in a studio in Broadcasting House
and listened to forty songs which had been rejected by pub¬
lishers. The ten songs which were considered best were broad¬
cast. Listeners were next invited to send in letters stating
which of the ten songs they considered best. Nearly twenty
thousand listeners were sufficiently interested to send in
their selections.
XXXXXXXXX
A Moscow electro-mechanical shop has begun mass pro¬
duction of radio sets for passenger automobiles. The sets will
be housed under the hood, and tuned by three controls on the
instrument board. They will be adapted to reception of both
medium and long wave lengths, making it possible for a passen¬
ger to tune in on any central broadcasting station. All the
latest improvements are contained in this new set, including
an automatic regulator maintaining a constant decree of speaker
volume regardless of the speed of the car.
XXXXXXXXXX
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2/16/37
AMENDED COPELAND FOOD- DRUG BILL REPORTED FAVORABLY
An amended food-drugs-cosmetics bill, sponsored by
Senator Copeland (D. ), of New York, was reported to the Senate
this week.
The Committee in reporting the measure explained it
as follows, in part:
"This bill has been prepared with three basic
principles in mind: First, it must not weaken the existing laws;
second, it must strengthen and extend that law' s protection of
the consumer; and, third, it must impose on honest industrial
enterprise no hardship which is unnecessary or unjustified in
the public interest.
"This bill meets these three principles. It has been
prepared after many and extensive conferences with the enforce¬
ment agencies of the Government and with representatives of
various consumer groups or associations, professional groups,
and the industries to be regulated.
"The controversial subject of control of advertising
has been met by providing for the prohibition of false advertis¬
ing, by injunction. The bill also states differently the offense
of false advertisement. Previous bills have defined false
advertisements as those which are 'false or misleading in any
particular. * That definition has occasioned no end of contro¬
versy - some of it quite meritorious - on the ground that when
applied to the unlimited field of advertising it was too
elastic and encompassed things far beyond the purposes of the
bill. Also, it would lend itself to unnecessary and unjustified
governmental interference in the affairs of business, and impose
upon the Government a job far beyond the Government's financial
and personnel capacities to enforce. The statement of the
offense in the bill defines those subjects pertaining to food,
drugs, and cosmetics which should be under Government control.
"There has been controversy as to whether the Food
and Drug Administration or the federal Trade Commission should
enforce the bill's provisions on advertising. On the premise
that advertisements of foods, arug,s , and cosmetics are nothing
more than extensions of the labeling, this bill proposes that
the control be vested in the Food ana Drug Administration which
enforces the provisions on adulteration and labeling. But,
it does not have the effect of depriving the Federal Trade
Commission of its jurisdiction to proceed against false advertis¬
ing in such form as to make it an unfair method of competition.
The bill specifically provides that it shall not be construed
as impairing or diminishing the powers of the Federal Trade
Commission. "
XXXXXXXXX
9
2/16/37
STATION OPERATOR APPEALS TO CONGRESS ON COPYRIGHT
Members of Congress this week received copies of a
letter from Ed Craney, operator of KGIR, Butte, Montana, and
urging amendments to the copyright law in the interest of
broadcasters. He said he was acting in behalf of a group of
independent stations.
Charging the American Society of Composers with
favoritism to the networks, Mr. Craney asked for corrective
legislation to force ASCAP to issue licenses for broadcast
performing rights in a more equitable manner. His proposal
was that stations be required to pay only for the copyright
music they use.
XXXXXXXXXX
NBC'S JANUARY REVENUE HIGHEST IN ITS HISTORY
The National Broadcasting Company's network revenue
for January 1937, soared to 32^ above the corresponding month
last year - the total of $3,541,999 making the month of
January, 1937, the highest in the history of the company for
that month.
The NBC-Red Network, with an increase of 37.6%, leads
all other networks for the month, according to an NBC statement.
Individual NBC network figures for January, 1936,
and January, 1937, follow:
1936
1937
% Increase
NBC-Blue
Network
$ 956,643
$1,167,366
22. 0%
NBC- Red
Network
1,725,172
2, 374, 633
37,6%
$2,681,815
$3,541,999
32. 1 %
X
X X X XX X X
XXX
Bob Carter, announcer and commentator, has been
appointed Chief Announcer for Station WMCA, New York, following
the resignation of Lee Cronican, according to Bertram Labhar, Jr. ,
Sales Director for the station.
X X X X X X X X X X X X
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2/16/37
PRIVATE PHONE PLACED ON MARKET BY PHILCO
A new product , the Philco-Phone , has just been announc
ed by the Philco Radio and Television Corporation, for direct
two-way private communication in home, factory, office, store
or other establishments.
The Philco-Phone is built to serve as many as four
remote stations connected with the master control unit and will
operate over a distance of a quarter of a mile.
It is listed to retail at $49.50 for the master con¬
trol unit and one remote station, a price designed to appeal
to the average home or office and it will be marketed through
established Philco merchandising channels. Each additional
remote station retails for $10.
While the system draws its energy from the ordinary
A.C. or D. C. electric socket or outlet, the voice transmission
is confined to the wires of the system itself, thereby assuring
privacy.
Combined with the low initial cost and low current
consumption, is the ease of installation, which requires merely
a wiring connection from the various stations to the master
control unit and this is accomplished within a few minutes even
by an inexperienced person. No inspection is required.
The system is a simplified voice transmitter and
amplifier. The master control unit measures 10i!r" long, 8§" high
and 5-5/8" deep, or sufficiently small to sit on the ordinary
desk without usurping valuable space. The remote stations
measure 6-7/8" high, 6-7/8" wide and 3-J" deep. The cabinets,
both master and remote units, are finished in walnut and designed
to harmonize with home or office surroundings.
Sufficient amplifies tioxi is provided to enable a per¬
son to listen or speak in the normal voice even when the cabinet
is placed room-length away. The voice volume, in transmission
and reception, is controlled by a volume control knob on the
master control unit.
A tiny signal light indicates when the Philco-Phone
is in operation. Conversations may be carried on with one sta¬
tion or ail on the system as occasion requires, this also being
controlled on the master cabinet.
xxxxxxxxxx
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2/16/37
INDUSTRY NOTES ;
Commissioner Thad H. Brown will deliver the principal
address at the annual meeting of the Ohio Independent Telephone
Association at the afternoon session on April 21, 1937, at
Columbus, Ohio. The subject of his address will be "Telephone
Regulation Under the Communications Act. " Mr. Brown is a
Federal Communications Commissioner.
Van-Tage Medicine Company, Inc. , 1265 North Vermont
Ave. , Los Angeles, and its President, G. H.Mosby, are charged
in a complaint issued by the Federal Trade Commission with mis¬
representing the therapeutic value of a medicinal preparation
designated "Van-Tage". The respondent is a radio advertiser.
A public hearing has been ordered by the Federal
Communications Commission on the proposed sale of radio station
WREN of Lawrence, Kans. , to the Kansas City Star. Because the
sale price is reported to be between 8250,000 and $300,000 and
Congress has frowned upon perfunctory action in approving radio
station transfer involving large sums, the Commission intends
to inquire into the question whether saleable assets are worth
that much money.
Col. Richard C. Patterson, Jr. , has been elected
Chairman of the Board by the Citizens Budget Commission, Inc. ,
with offices at 51 East 42nd Street, lView York City. Until
recently he was Executive Vice-President of the National Broad¬
casting Company.
Maj. Gen. James G. Harvord, Chairman of the Board of
the Radio Corporation of America, in a preparedness address
February 15th, voiced a warning that "if there is ever another
big military explosion, no matter where, the dangers it generated
would threaten every land in the small and closely interrelated
world of today." He spoke to the Women’s National Republican
Club in New York.
XXXXXXXXXX
12 -
i
- J.
"",,U,WL okuadcasting corne l,
GENERAL library
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF FEBRUARY A9, 193?
RECEIVED
FE 3 20 1937
WA'i NE L. RANDALL
Prall Forecasts Reallocation, Caution On Super-Power,
From Silhouettes To Television . 5
Aylesworth Main Duties Not Radio, He Says . 6
Temoorary Legal Appointments To vqc Are Upheld . 6
vTC Charges Television Institute With Unfair Competition . 7
Minnesota Given New Broadcast Stations By FCC„ . 7
Total Investment In Industry Placed At $40,000,000 . 8
Examiner Approves Sale Of KMPC To George A. Richards . 8
Moscow Likes Poetic Radio Ads, Contest Discloses . 8
Idaho Auto Anti-Radio Bill Defeated . 9
It’s A Hard Life, Prall Tells The Senators . 9
Automatic SOS Signals Studied By FCC . 10
The Speed Of Radio Development As Seen By FCC Chief . 10
Two Washington Teachers To Advise On cadio Programs . 11
Coast Guard Head Lauas Radio In Flood Aid . 11
Industry Notes . 10
CBS January Billings 24,2% Ahead Of 1936 . 12
No. 1006
PRALL FORECASTS REALLOCATION, CAUTION ON SUPER-POWER
Anning S. Prall, Chairman of the Federal Communications
Commission, told the Senate Independent Offices Sub-Committee on
Appropriations that there will be a reallocation of broadcasting
facilities and that the FCC will proceed cautiously in acting
on super-power applications, printed hearing transcrips disclosed
this week.
The FCC Chairman also made a plea that the Commission
be granted greater powers to control the operations of broad¬
casting stations.
Commissioner Prall made his statements on reallocation
and super-power in response to inquiries by Senator Byrnes (D.),
of South Carolina.
Senator Byrnes complained that he was forced during his
recent campaign for renomination to broadcast his messages to
certain sections of South Carolina via stations in North Carolina
"I happen to reside in one of the few States - I do
not know the others - in which we have no radio station that
covers the State", said Senator Byrne. "In a political campaign,
if I desire to speak over the radio to the people of my State,
I have to go out of my State. I remember at one time seeing
about four or five others. I know that if a few 500,000-watt
stations are established, in the ordinary course of events an
advertiser could advertise over one of those so-called super¬
stations, and the regional stations which are now throughout
the country would have very little opportunity, it seems to me,
to secure advertisements, and would have to go out of business.
"It is not due to the action of the Commission in
refusing applications", he added, "but is due, I recognize, to
the engineering situation that those who came upon the scene at
first secured the desirable frequencies.
"Now they claim a vested right; and if you desired to
give me a frequency they would go into court on you and claim
interference. I see no remedy for it unless there is a realloca¬
tion. "
Replied Mr. Prall: ',rnhere will be a reallocation."
"I hope you will not authorize those500,000 watt super-
stations without the most careful consideration" , Senator Byrnes
continued, "because it will injure the local stations."
2
2/19/37
"We will not, Senator", said Commissioner Prall.
Senator McAdoo (D. ), of California, asked the FCC
Chairman whether he believed the Commission should have more
power to regulate the "corporations" owning and operating
broadcasting stations.
"I feel, personally", said Mr. Prall, "that if we
were authorized under the Act to quiet a station or delete it
for a temporary period, if we might close the station for two
weeks for a violation, or a month, or six months, it would
have a salutary effect on the industry as a whole. "
Questioned by Senator Byrnes regarding the operations
of "traffickers in licenses", Chairman Prall said:
"Senator, of course we hear stories and rumors about
this, that, and other abuses in Government administra tion. You
know and I know that, after many years' experience; to be true;
but at any time you gentlemen hear any of those rumors, if you
will take them up with us, we will investigate them thoroughly
and immediately. Of course it is possible that those things
can happen without our knowledge. "
Senator Glass, Chairman of the Senate Appropriations
Committee, asked Mr. Prall whether the FCC gets many com¬
plaints that too much time on radio stations is being devoted
to advertising.
Said Commissioner Prall:
"Yes, we do, and we also find that the small station -
we will say the 100-watter in a town or a city - gives more
time to the local interests of all kinds than does the chain
operator in that town. That is because the program timetable,
as I would put it, of the chain operator perhaps takes the time
in the evening when that station might be used by the local
people, chambers of commerce, and churches, and organizations
of that kind. The time probably is taken up by the national
advertisers where the smaller stations are affiliated with
chains throughout the country. So we do find comolaint,
Senator, more from the local, the small communities, with
respect to lack of time devoted to community interests. "
Senator Glass: "It has seemed to me here in Washing¬
ton - because I have a radio in my apartment - that most of the
time is taken up with advertising. "
Mr. Prall: "Yes, I think that is true; but again you
go back to the Act, and there is nothing in the Act which gives
us any authority as to programs or the direction of broadcast
stations with respect to the use of the time they are selling
advertisers. "
3
2/19/36
Senator Glass: '’Would it be desirable to have such
authority?”
Mr. Prall: ”1 think it would be.”
Senator Glass: "Would it not be better to give the
Commission itself discretionary power?”
Mr. Prall. ”1 believe it would. I believe the Com¬
mission would be able to accomplish things in communities where
very little time is given or can be given to local broadcasting. ”
Senator Adams: "A little aside from the question, do
you think that the programs which are put on by the big adver¬
tisers indicate real comprehension on their part of the tastes
of the American people? My reason for asking that is that the
large programs seem to specialize in silliness and imbecility. ”
Mr. Prall: "Of course the programs are varied to a
large degree, and if you have a family of about five, some in
the adolescent age, and from that up to -
Senator Adams: "Up to 70.”
Mr.. Prall: "Yes; I think you will find that perhaps
there are three different views as to what they like to hear
over the air. ”
Senator Glass. : "We do not accept the view of any
one who is over 70 years of age, however.”
Senator Byrnes: "What orooortion of the oeople read
the 'funny' pages of the newspaoers?”
Mr. Prall i "The same rule applies to that. "
Senator Glass expressed the view, in which Commissioner
Prall concurred, that the PCC should not have any control over
the price paid by any one for a broadcasting station, thereby
differing with the House members who complained during the
House hearings against the high sale prices of many radio
stations.
After Senator Steiwer (R. ), of Oregon, had raised the
question regarding the sale prices of WOV, New York, and KNX,
Los Angeles, there following the following conversation:
Senator Steiwer: "How does the Commission justify
allowing prices of that kind to be paid?"
Mr. Prall. "In the first place, that station was do¬
ing a business showing a profit on $1,250,000 of 16 percent."
4
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Senator Steiwer; "Let me interrupt at that point, if
I may. The value of that plant would consist of Just two
things, would it not, the replacement value of the plant, plus
the value of the license?"
Senator Adams: "Are there not two other things in
that? One is intelligence in management, the second is the
character of the programs."
Mr, Prall; "There is a decision of the court deal¬
ing with that subject, where the court, I believe, points to
an important phase, or refers to it as an important item, that
is, the value as a going concern. I do not feel that we can
simply take the equipment, the buildings, of the physical assets,
and place a value on their replacement as being the value of
the business to you or to me."
Senator Glass : "Should the Commission assume to do
that? If I am unbusinesslike and indiscreet enough to pay a
high price for a radio station in my town, should the Commission
intervene and say I should not be indiscreet enough to do it?"
Mr. Prall: "I wonder, Senator, on that very line, if
we have any right whatsoever to tell a man what he should or
should not pay for a station. "
Senator Glass: "I do not think you ought to have."
Senator McAdoo: "I do not think so, either. The
Commission should determine solely whether or not the transfer
is in the public interest. "
Mr. Prall: "We take into consideration the buyer, and
what a change of ownership in a station will mean to the com¬
munity where it is located, or the community the station serves.
If in our Judgment it will better serve or serve as well the
community to be served, that is one point, if the station has
built up a business and shows a good profit comparable with the
investment, whatever it amounts to, I tnink most of the ownei's
of broadcasting stations go so far as to feel that 10 percent
of the annual income is a fair price for a station. "
XXXXXXXXX
FROM SILHOUETTES TO TELEVISION
It was a co-incidence that in the ballroom of the
Germantown Cricket Club in Philadelphia where the Philco tele¬
vision demonstration was held recently that the walls were
bordered with large black and white silhouettes of former presi¬
dents of the club. Thus those who attended the Philco gathering
had the unique experience of seeing at one andthe same time the
oldest and newest things in pictures - silhouettes and televisio
XXXXXXXXX
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2/19/37
AYLESWORTH MAIN DUTIES NOT RADIO HE SAYS
An inquiry directed to M. H. Aylesworth, former Presi¬
dent of the National Broadcasting Company, brought a reply that
his new duties with the Scripps-Howara newspapers will have veiy
little to do with radio.
Mr. Aylesworth advises that Jack Howard, son of Foy
Howard, is in full charge of radio in the Scripps-Howard organ¬
ization ana that he will keep in touch with these activities
through young Mr. Howard.
XXXXXXXXXX
TEMPORARY LEGAL APPOINTMENTS TO FCC ARE UPHELD
The United States Court of Anneals for the District
of Columbia this week upheld an Executive Order inspired by
the Federal Communlca tions Commission and the refusal of the
United States District Court to dislodge certain appointees to
the FCC Legal Division.
The action was taken on an appeal filed by David R.
Crow, who stood at the head of a Civil Service list of eligibles
for the positions of Assistant Attorney and Associate Attorney,
when examinations were held in 1935. His grades, however, had
been increased by ten in each case because he wa s a disabled
War Veteran.
Temporary appointees to the jobs had passed the exami¬
nation but were not among the first three certified by the
Civil Service Commission. Nevertheless, the President, at the
request of the FCC issuea an Executive Order making their
appointments permanent. Then followed the suit for a writ of
mandamus by Mr. Crow.
The Appellate Court in affirming the decision of the
lower court points out that the office which Mr. Crow seeks is
now filled by an incumbent sho is discharging his duties.
Hampson Gary, General Counsel of the Communications
Commission, was one of the FCC attorneys who won the case.
XXXXXXXXXX
Examiner Melvin H, Dalberg tnis week recommended to
the Federal Communica tions Commission that the application of
KWBG, of Hutchinson, Kans. , for permission to transfer from
1420 to 550 kc. and increase power from 100 to 250 watts be
denied.
X X X X X X X X
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2/19/37
FTC CHARGES TELEVISION INSTITUTE WITH UNFAIR COMPETITION
I
American Television Institute, Inc. , a correspondence
school and others, 433 East Erie St., Chicago, are charged in a
complaint issued by the Federal .'-Trade Commission with unfair com¬
petition in the sale of courses in radio and television.
Representations made by the respondents are alleged
to have had a tendency to mislead a substantial portion of the
student public into erroneous beliefs regarding the respondents’
courses, and to have caused them to enroll as students on account
of such beliefs.
Certain representations made by the respondents in news¬
papers, booklets and general business correspondence, are allege c*
to serve as representations that: Several young men are to be
selected and trained for positions in radio television at the
respondents* expense until actually employed; that a seventy-
lesson course is offered, collection of the tuition fee being
deferred until a job is obtained for the student at $125 a month
or more; that the respondents operate a wiae-spread employment
agency through which students are placed in paying positions
upon graduation; that there is a. shortage of radio television
operators; that the respondents own a huge laboratory in which
equipment is manufactured in great quantities; and that they
operate television broadcasting stations in which the pupils are
given opportunity for graduate residence study. It was also
represented, according to the complaint, that certain individual
respondents are engineers for certain radio stations.
These representations are exaggerated, misleading, and
untrue, according to the complaint.
Besides the Institute, others named as respondents
are U. A. Sanabria, President; R. B. Fullerton, Vice-President;
A. H. Zamotany, Treasurer, and American Television Institute, Inc,,
a corporation, and as co-partners, tra.ding as American Television
Institute and Sanabria Television Laboratories.
Alleging violation of Section 5 of the Federal Trade Com¬
mission Act, the complaint allows the respondents 20 days in which
to file answer to the charges.
XXXXXXXXXX
MINNESOTA GIVEN NEW BROADCAST STATIONS BY FCC
A construction permit for a new broadcasting station
was granted this week by the Federal Communications Commission to
Albert Lea Broadcasting Corp. , of Albert Lea, Minn. , for opera¬
tion on 1200 kc. with 100 watts power, daytime. The same facil¬
ities also were granted to the Winona Radio Service, of Winona*
XXXXXXXXXX
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2/19/37
TOTAL INVESTMENT IN INDUSTRY PLACED AT $40,000,000
Chairman Anning S. Prall, of the Federal Communica¬
tions Commission, told the Senate Sub-Committee on Appropriations
that the estimated total investment in the broadcasting industry
is "in the neighborhood of $40,000,000.”
He said there are 24,500,000 homes in the United
States equipped with radio sets. In addition, there are
4,000i*.000 more auxiliary sets in the homes and 4,500,000 in
automobiles, making a grand total of 33,000,000 sets in use,
XXXXXXXXXXXX
EXAMINER APPROVES SALE OF KMPC TO GEORGE A. RICHARDS
The sale of all capital stock of the Beverly Hills
Broadcasting Corporation, owner of KMPC, Beverly Hills, Calif. ,
to George A. Richards, President of WGAR, Cleveland, and WJR,
Detroit, for $125,000 was recommended to the Federal Communica¬
tions Commission this week for approval by Examiner Ralph L.
Walker.
Mr. Richards, who only recently acquired WGAR, has
a Winter residence in Beverly Hills. The Beverly Hills Broad¬
casting Corporation lists its total assets at $40,839.96. KMPC
operates on 710 kc. , with 500 watts power.
XXXXXXXXXX
MOSCOW LIKES POETIC RADIO ADS, CONTEST DISCLOSES
The Radio Centre, Moscow, while It accepts no commer¬
cial advertising in the sense that it is understood in the United
States, apparently prefers a little poetry mixed with radio
trade announcements.
A contest was recently held for the best advertisement
for use on the radio. The first price of 1500 rubles was not
awarded, but two workers shared the second prize of 1000 rubles
by submitting advertisements in verse. The advertised articles
were rugs and books.
A third prize went to a woman who submitted an adver¬
tisement in story and verse for shoos selling children’ s toys.
XXXXXXXX
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2/19/37
IDAHO AUTO ANTI-RADIO BILL DEFEATED
Word was received from Bond Geddes, Executive Vice-
President of the Radio Manufacturers' Association, from Boise,
Idaho, that the bill to orohibit use of radios in automobiles,
recently introduced in the Idaho Legislature, had been defeated.
Mr. Geddes, who went to Idaho to lead the fight against the bill,
sent the following telegram to Washington late Friday afternoon:
"All Legislature leaders assure and author con¬
cedes defeat of Senator Whitten's bill in the Idaho
House of Representatives to prohibit auto radios,,
Also House Leadership Committee toaay voted unani¬
mously to kill bill. This followed excellent hearing
Thursday before entire House of Representatives and
large applauding audience. Radio automotive trades
and several broadcasters appeared.
The defeat of the bill in the Idaho House is welcome
news to radio manufacturers and broadcasters due to the fact
that it passed the Senate February 5th by the close vote of
22-20.
XXXXXXXXXX
IT'S A HARD LIFE, PRALL TELLS THE SENATORS
The Federal Communications Commission members have a
tough time, according to their Chairman, Anning S. Prall. What¬
ever they do, somebody gets mad.
Testifying before the Senate Sub-Committee on Aporo-
priations, Mr. Prall said:
"Due to the fact, I believe, that practically every
item brought before our Commission is controversial, practically
every case we have is protested. Our every act tends to hurt
somebody, and therefore we are losing our friends and making
potential enemies all the time. Much has been said in the way
of complaint to you gentlemen of the Senate, and to Members of
the House, about the Communications Commission."
XXXXXXXXXX
Denial of an application by Loyal K. King, of Pasadena,
Cal., to erect a new broadcasting station in ^asadena for oper¬
ation on 1320 kc. with 250 watts, daytime, was recommended this
week by Examiner Ralph L. Walker to the Federal Communications
Commission.
XXXXXXXXX
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2/19/37
AUTOMATIC SOS SIGNALS STUDIED BY FCC
Plans to install automatic radio S.O.S. signal devices
on all American cargo ships were discussed at a conference of
radio manufacturers, telegraph companies and steamship companies
on Friday in the offices of the Federal Communications Commission.
For months, officials of the Commission revealed radio engineers
and experts of the Commission, the Bureau of Standards and the
Coast Guard, have been testing two types of apparatus built accord¬
ing to specifications laid down by the Commission.
Their installation would eliminate the necessity of
carrying more than a single radio operator on a ship, and would
do away with two of the three radio watches now maintained.
Signals from vessels in distress using the equipment would be
heard not only in the radio room of other ships but on the bridge#
In the engine room and at other watch stations.
According to the Commission's tentative plan, the new
device would be installed only on cargo vessels, since all pas¬
senger vessels will be required, as they are now, to carry enough
radio operators to keep a continuous watch at all times.
The sets, which have been built according to the speci¬
fications laid down by the Commission and which have been under
test since November, were submitted by the Radio Marine Corpora¬
tion of America and the Mackay Radio and Telegraoh Company. The
Coast Guard tests were carried out at Rort Hancock, N. J. , and
the Bureau of Standards experiments were made in the Bureau’s
Washington laboratories.
Further studies will be made before the final decision
to install them is reached, since the instruments have not yet
received a practical test during serious atmospheric disturbances.
XXXXXXXXX
THE SPEED OF RADIO DEVELOPMENT AS SEEN BY FCC CHIEF
The Senate Sub-Committee on Appropriations for the
Independent Offices wasgiven a striking example of the speed of
changes in the radio industry by the FCC Chairman, Anning S.
Prall, in this fashion:
,lWe do not know, and nobody knows, just what is going
to happen in radio. Some time ago, in a conversation with an
executive of the National Broadcasting Co. , at a demonstra tion of
the facsimile machine which is perfected, I said to him, ’What
are the newspapers going to do about this?’ He said, *1 do not
know.' I said: "This thing is going very fast, is it not?’ He
said, ’It is going so fast that we erected a $10,000,000 building
on Long Island, and before it was completed it was practically
obsolete. ’ ”
XXXXXXXXX
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2/19/3?
TWO WASHINGTON TEACHERS TO ADVISE ON RADIO PROGRAMS
The U. S. Commissioner of Education announced this
week that two Washington university teachers have accepted
his invitation to constitute an expert Advisory Committee for
a new group of educational radio programs in the series now
being presented by the Office of Education, Interior Department.
The men named are Dr. Ben A. Arneson, head of the
Department of Political Science at American University, and
Dr. Herbert Wright, Professor of International Law at Catholic
University. Dr. Wright heads the Department of Politics at
the university.
The series on which they will be advisers will be
devoted to telling the development of the civil liberties con¬
tained in the Constitution's bill of rights.
XXXXXXXXX
COAST GUARD HEAD LAUDS FADIO IN FLOOD AID
Radio, by soanning the flood-torn gaos in normal com¬
munication facilities, has again taken its place in relieving
human suffering”, writes Rear Admiral R. R. Waesche, Commandant,
U. S. Coast Guard,
"The Coast Guard, in common with the Naval Reserve,
Army and Amateurs, established a joint emergency radio net of
240 stations to carry on, more effectively, the work of its
forces. It is a safe prediction that the swift, nimble hands
of radio have snatched from a watery death as many lives as any
one force in the disaster.
"The Coast Guard, in common with other relief agencies,
will learn many lessons out of the current disaster ■ — lessons
which snould test the powers, reveal the weaknesses, and chart
the future paths of emergency communications. "
xxxxxxxxxx
The Czechoslovak Post Office has just announced that
plans for the construction of a television transmitter in Prague
are now reedy, according to Wo rid- Radio. The preparatory work
will begin very soon and the transmitter will be ready to put
out its first tests at the end of this year.
X X X X X X X X
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2/19 / 37
: : ' INDUSTRY NOTES
Glenn Laboratories, Inc., 287 West 127th St., New York
City, selling a thyroid treatment for overw&igftt, is charged
with unfair competitive practices in violation of Section 5 of
the Federal Trade Commission Act. The product they offered for
sale, namely "Dr. Thomas’ Px 157” is alleged to have been advertis¬
ed over the radio and in newspapers and magazines.
G-eorge Henry Payne, of the Federal Communications Com¬
mission, and Mr. and Mrs. A. Atwater Kent were guests at a dinner
given by Ralph Beaver Strassburger , wealthy Pennsylvania oublisher
and Mrs. Beaver at Palm Beach, Fla. , in celebration of the birth¬
day of Mrs. John Dewar, of London.
New wrinkles and gadgets in radio and their meaning to
every listener will be explained in a quarterly series to be
presented over the National Broadcasting Company by 0. B. Hanson,
NBC Chief Engineer. The first of the series, an interview with
John B. Kennedy, commentator, will be broadcast Tuesday, February
23rd, at 7^45 p.m. , EST. Other broadcasts will be offered at
three month intervals.
Detrola Radio and Television Corporation reports for
1936 a net income after surtax on undistributed earnings, of
$109,725, equal to 80 cents each on 137,500 common shares, against
$73,567, or 66 cents a share on 112,000 shares, in 1935.
Dollar Crystal Co. , Omaha, Nebr. , has been ordered by
the Federal Trade Commission to discontinue certain unfair com¬
petitive methods in the sale of mineral water crystals, in viola¬
tion of Section 5 of the Federal Trade Commission Act. These
products are sold as "Genuine Texas Mineral Crystals", "Texas
Mineral Water Crystals", and other similar names. The order bars
representation by means of radio, advertising matter, etc.
xxxxxxxxx
CBS JANUARY BILLINGS 24.2$ AHEAD OF 1936
Time sales on the Columbia network for January, 1937,
totalled $2,360,740, an increase of 24.2$ over the same month in
1936, which was previously the highest January in CBS history.
In January 1936 it was $1,901,023.
XXXXXXXXXX
12
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GENERAL LIBRARY
HEINL RAMO^BUSINESS LETTER
2400 CALIFORNIA STREET WASHINGTON, D. C.
House
Steel
CONFIDENTI AL-Not for Publication
INDEX TO ISSUE OF FEB
Pases Bill To Ease Operating Requi
Labor Drive May Raise Prices On Radios
2
4
Philips Charged With Barring American Radio Tubes . ..5
BBC Television Director Explains Program Plans . 6
Brinkley Ready To Go The Limit . 6
5-Year License Terms For Broadcasters Is Proposed . ?
Census Shows Rise In Radio Production . 8
Convalescence Of Almonte Reported . 8
Excise Taxes On Radios Up 13,7% In January . 8
Hearings Held On Bills To Increase Ship Radios . 9
Listens To Ireland vor An Hour On Long Wave. . 9
1936 Record Year For ^adio Export Trade . 9
Lottery In Sale Of Radios Barred By FTC . 10
BBC Must Carry Government Advertising Free . 10
Notes . 11
Becker Quits Telephone Inquiry, Lauds Results . 12
Zenith Stock Has Jumped 8374$ Since 1933 . 12
NBC's Weekday Daytime Revenue Up 94$ . 12
No. 1007
HOUSE PASSES BlnL TO EASE OPERATING REQUIREMENTS
The House this week passed the Lea bill to permit the
Federal Communications Commission to exercise discretion in
enforcing requirements of the Communications Act that licensed
operators be in charge of all radio transmitting apparatus at all
times. It was the first piece of radio legislation called up
in either the House or the Senate this session and passed with¬
out debate*
Chairman Anning S. Prall, of the FCC, oredicted that
the bill, if enacted into law, will "permit experimentation in
the classes of stations not covered by the exceptions, to deter¬
mine the practical results of actual operation by means of
mechanical devices, and to determine the extent to^hich such
mechanical operation may be permitted consistently with the
purposes of the Communications Act.
"It will also contribute to the furtherance of
fundamental research in radio", he said.
The bill proposes to amend Section 318 of the Act to
read as follows:
"The actual operation of all transmitting apparatus
in any radio station for which a station license is required by
this Act shall be carried on only by a person holding an
operator's license issued hereunder, and no person shall operate
any such apparatus in such station except under and in accord¬
ance with an operator's license issued to him by the Commission;
Provided, however, That the Commission if it shall find that
the public interest, convenience or necessity will be served
thereby may waive or modify the foregoing provisions of this
section for the operation of any station except (1) stations for
which licensed operators are required by international agreement,
(2) stations for which licensed operators are required for
safety purposes, (3) stations engaged in broadcasting, and (4)
stations operated as common carriers on frequencies below
thirty thousand kilocycles: Provided, further, That the
Commission shall have power to make special regulations govern¬
ing the granting of licenses for the use of automatic radio
devices and for the operation of such devices. "
An explanation of the purpose of the legislation was
made by Commissioner Irvin Stewart In a letter to Representative
Cole ( D. ) , of Maryland. ^he letter, which follows, was printed
in the Congressional Record:
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"This amendment is designed to give the Commission
discretion in certain instances to relax the absolute require¬
ment of Section 318, that all transmitting apparatus at all
times of operation must be under the control of a licensed
operator.
"The need for such discretion was brought to the
attention of the Commission forcibly by an application of the
Cruft Laboratory, Harvard University. A general experimental
station had been licensed to that institution for several
years for the purpose of making continuous observations of the
ionosphere. The value of this research depended on continuous
operation of the station. The results of the operation were
recorded automatically. there was no function which an operator
could have performed in this connection other than to keep the
station upon its proper frequency. The Cruft Laboratory, in
consultation with the Engineering Department of the Commission,
worked out an automatic device capable of preventing improper
operation of the station. The licensee felt that it could not
afford to keep an operator on duty throughout continuous opera¬
tion and regarded such a requirement as unreasonable in view of
the fact that no useful function could be performed by the
operator. However, the absolute requirement of Section 318
prohibited such operation. Consequently, this important piece
of research had to bo discontinued. This is but one of a
number of instances in which the actual operation of a station
by a licensed operator is impractical and unnecessary from an
engineering viewpoint. Useful scientific research is inhibited
by the present rigid requirement of Section 318. Free balloons
containing small automatic transmitters are useful in obtain¬
ing reports and in recording atmospheric conditions at great
altitudes,
"The use of automatic transmitters on police cars
controlled by a central operator would be of value in this
important field of emergency service. It would obviate the
existing necessity of requiring that police driving such cars
be also licensed operators. Since these stations operate only
on the ultra-high frequencies, there is little danger of inter¬
ference from such operation.
"The development of radio to promote the safety of
life and property in the air is also handicapped. Without such
a requirement radio beacons could be operated automatically
at remote points where the attendance of an ODerator would be
impractical both from a physical and a financial standpoint.
"It is important to remember that control by the
Commission over a station is not lost because it is automati¬
cally operated. The control over the license of the licensee
remains to insure proper operation.
3
2/26/37
"It should be noted that the amendment suggested by
the Commission excluded four classes of stations from the
field of discretion of the Commission. These exceptions
were carefully designed tc avoid conflict with international
agreements, to preserve safety and to exclude stations operat¬
ing with great power or on frequencies where considerable inter¬
ference might be expected. It may be that the bill as amended
before being reported out of committee confers somewhat greater
discretion upon the Commission. However, the Commission
believes that it can, in the exercise of its discretion, avoid
any relaxation of the operator requirements where such relax¬
ation would not be in the public interest. "
XXXXXXXXXXX
STEEL LABOR DRIVE MAY RAISE PFICES ON RADIOS
The threatened drive of Jonn L. Lewis and his
Committee for Industrial Organization may result in an increase
in the price of radio sets, according to some industrial
leaders.
Russell B. Porter, writing in the New York Times
from Chicago this week, stated as follows, in part:
"Although John L. Lewis and his Committee for
Industrial Organization did not succeed in imposing the closed
shop on the automobile industry in the General Motors strike,
they did win union recognition.
"Unless the steel industry can turn back the Lewis
onslaught decisively, it is feared in industrial circles that
the General Motors settlement, plus whatever gains the C.I.O.
may make in the coming steel strike, may prove the opening
wedge for the introduction of the closed shoo in all mass
production industries.
"According to many industrial leaders, that would
mean greatly increased production costs and correspondingly
higher prices for automobiles, electric refrigerators, radios
and all the other twentieth century improvements that go to
make up the American standard of living. "
XXXXXXXX
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2/26/37
PHILIPS CHARGED WITH BARRING AMERICAN RADIO TUBES
In an apparent appeal for American support of a
radio trust-busting movement in Europe, R. John Aalberts,
secretary of the newly-organized International Association for
Independent Radio Interests, charges that the Philips Radio
Corporation, of Holland, has entered into contracts which bar
American-made radio tubes in certain European countries.
The Association was formed last Fall with delegates
from nine countries attending. Headquarters are in Bienne,
Switzerland. The circular of the INRIN also carried the first
English translation of the resolution under which the Associa¬
tion was founded.
The writer claims to have proofs that “Philips
through certain contracts has blocked the import of American-
made radio tubes. " He continued:
"In one such contract, dated May 31, 1935, and now
still in force (it was prolonged until May 31, 1937), signed
from the side of Philips by the famous export-manager Mr. O.M.E.
Loupart (of Eindhoven) and the general manager of their Czecho¬
slovakian branch office, Mr. Victor Graf, we read under item
I.d, that the Czechoslovakian radio-manufacturers agree not to
use any radio-tubes imported from America. Under item I.g we
read the remarkable statement that the contracting party,
Philips, Eindhoven, consents to this agreement, under the formal
reservation that also the grouo of ’American Patent-Owners’
agrees.
"This means, that the 'American Patent Owners', known
the world over, are agreeing to the blocking of the products
of those firms in America, who most likely are their clients
and license-f ees-paying customers. It means, as we see it,
clearly, that those fees are demanded and cashed in America,
but at the same time the attempt is made secretly to stop the
sale of the products of those clients, while Philips c.s. try
to sell their own tubes at triple or quadruple prices.
"In the same contract it is said under item II. a,
that no American radio-tubes shall come on tne Czechoslovakian
market, which clause also indicates that the import and sale of
American radio-sets should be prevented, no tubes for replace¬
ment being available. "
XXXXXXXXXX
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2/26/37
BBC TELEVISION DIRECTOR EXPLAINS PROGRAM PLANS
Gerald Cock, Director of the B3C Television Service,
recently outlined his plans for future programs.
"Programs designed for viewing rooms - for what may
be called casual viewers - should be different from those for
home set owners", he said. "The best viewing-room programs
would probably be an ordinary procession of short cabaret and
topical 'turns'. But the BBC is working towards an eventual
home audience. It is hoped to provide a service with a
balanced mixture of entertainment and general interest, pre¬
sented as only Television can present, and aping neither the
cinema, the stage, nor the newspapers.
"At present there is a. dearth of suitable light
entertainment , but many outstanding artists have been secured.
"General interest subjects will induce cooking
demonstrations, the world of women, how to deal with accidents
in the home, on the road, in factories, and in sport. The
Zoo will also provide attractive material. Drama is difficult
to present, but there will be excerpts from current productions
and a series of one-act plays. The toDical feature 'Picture
Page' has made good and will continue."
XXXXXXXXXX
BRINKLEY READY TO GO THE LIMIT
Observer Jensen of Cowley, Wyoming, in padio News,
writes that in a recent letter received from Dr. Brinkley, he
stated that XEAW ( now licensed for 50 kw. but, according to
his engineers, putting 59 kw. into the aerial) will, sometime
in January 1937, be operating on an aerial power of 100 kw.
XEAW uses a single tower umbrella antenna, with reflector.
The Doctor also stated that if U.S.A. stations should be
licensed to use 500 kw. , he might possibly boost the power of
his XERA to 1,600 kw. At present SERA engineers figure they
are putting 3 50 kw. into a three-tower aerial system with a
I reflector which is calculated to give a gain of one-third to
the North.
XXXXXXXX
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2/26/37
5-YEAR LICENSE TERMS FOR BROADCASTERS IS PROPOSED
A proposal that broadcasting licenses issued by the
Federal Communications Commission be increased, from six months
to five years was made this week in a bill introduced in the
House by Representative Anderson (D), of Missouri.
The broadcasting industry immediately hailed the
bill as a progressive step. The National Association of Broad-
casters, in its weekly bulletin, stated:
"There is no issue less controversial among our mem¬
bership. Enactment of this bill would greatly increase the
stability of the industry. That, we believe, would be in the
public interest. "
It was recalled, however, that Judge E. 0. Sykes,
Chairman of the FCC Broadcast Division, at recent hearings
before the House Sub-Committee on Independent Offices Appropria
tions, stated:
"We do not feel that we have yet reached the point
where the general spectrum is so good that they (the stations)
can operate so well that we are ready to grant licenses for a
longer term than six months. "
The Anderson bill would amend Section 307(d) of the
Communications Act of 1934 to read as follows:
"(d) No license granted for the operation of a
broadcasting station shall be for a shorter term than five
years and no license so granted for any other class of station
shall be for a longer term than five years, and any license
granted may be revoked as hereinafter provided. Upon the
expiration of any license, upon application therefor, a
renewal of such license may be granted from time to time for a
term of not less than five years in the case of broadcasting
licenses and not to exceed five years in the case of other
licenses, but action of the Commission with reference to the
granting of such application for the renewal of a license
shall be limited to and governed by the same considerations
and practice which affect the granting of original applications
A second section of the bill provides:
"The amendments made by Section 1 of this Act shall
not apply to any broadcasting license in force on the date of
enactment of tnis Act until it expires pursuant to the pro¬
visions of Section 307 ( d) of the Communications Act of 1934
as in force prior to such date. "
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2/26/? 7
CENSUS SHOWS RISE IN RADIO PRODUCTION
Manufacturers of radio apparatus and phonographs in
the United States reported a substantial increase in employ¬
ment and a pronounced increase in production in 1935 as com¬
pared with 1933, according to preliminary figures compiled
from the returns of the recent Biennial Census of Manufactures,
released this week by Director William L. Austin, Bureau of
the Census, Department of Commerce.
This industry employed 44,792 wage earners in 1935,
an increase of 36.2 percent over 32,879 reported for 1933,
and their wages, $542,910,316, exceeded the 1933 figure,
$29,654,376, by 44.7 percent. The aggregate value (at f.o.b,
factory prices) of radio apparatus, phonographs, and related
equipment made in 1935 amounted to $202,865,672, an increase
of 70.1 percent as compared with $119,234,930 reported for
1933. Of the 1935 total, $131,341,836 was contributed by com¬
plete radio receiving sets, as against $70,553,334 reoorted
as the value of such sets for 1933. These figures include
$103,964,958 for 1935 and $56,240,070 for 1933, representing
the value of receiving sets for home and general use.
This industry classification embraces establishments
engaged wholly or principally in the manufacture of radio
apparatus, phonographs, and parts and accessories.
xxxxxxxxxx
CONVALESCENCE OF ALMONTE REPORTED
John de Jara Almonte, Evening Manager of the New York
National Broadcasting Company, who has been ill for over two
months, is reported to be steadily getting better. So satis¬
factory is his progress at this date that it is expected that
the genial "diplomat of the kilocycles"- may be back at his
regular post of duty within the next few weeks.
XXXXXXXXXX
EXCISE TAXES ON RADIOS UP 13.7$ IN JANUARY
Collections during January, 1937, of the 5 percent
tax on radio and phonograph apparatus by the U. S. Treasury
were $683,578.06, an increase of 13.7 percent over the January,
1936, collections of $601,144.68, according to the ^adio
Manufacturers' Association. Both included taxes payable in
January on previous December production.
XXXXXXXXXX
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2/26/37
HEARINGS HELD ON BILLS TO INCREASE SHIP RADIOS
Hearings were held this week before Senate and House
Committees on companion bills to require radio equipment on
more American ships than now is demanded under existing laws.
Spokesmen for the Federal Communications Commission
endorsed the measures and stated that the legislation is
needed to replace '‘inadequate statutes" and meet the Govern¬
ment's obligations under the 1929 International Convention for
safety of life at sea.
The Senate passed a similar measure last year, but
it died in the House.
XXXXXXXX
LISTENS TO IRELAND FOR AN HOUR ON LONG WAVE
It is not unusual to hear all oarts of the world on
short-wave, but many do not realize that there has also been
a tremendous development in the long-wave side of a modern all¬
wave set. A member of the International Dxers Alliance, of
Bloomington, Ill. , reports that for a solid hour he listened
to the Northern Ireland regional station of the British Broad¬
casting Corporation.
The transmitter is of 100,000 watt capacity, broad¬
casting on 977 kilocycles or 307.1 meters. The broadcast was
heard between 2 and 3 o'clock in the morning and, of course,
couldn't get through under any condition when our own long- wave
stations were operating as the Irish frequency is only a few
kilocycles removed from KDKA at Pittsburgh.
XX XXXXXXXX.
1936 RECORD YEAR FOR RADIO EXPORT TRADE
Peak export trade in radio was attained in 1936,
according to Bond Geddes, Executive Vice-President of the Radio
Manufacturers' Association. Total exports of radio apparatus
for the year were $28,284,251, against total exports of
$25,454,188 in 1935, the previous high record for the American
industry.
The principal 1936 export increase was in parts,
although increases were recorded also in sets, tubes, speakers
and transmitting apparatus.
XXXXXXXX
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LOTTERY IN SALE OF RADIOS BARRED BY FTC
Standard. Distributors, Inc. , 114 East 32nd St. , New
York, ana Louis H. Geller, Presiaent of the corporation, are
named respondents in a Federal Traae Commission complaint alleg¬
ing unfair competition through proviaing retailers with the
means of conducting lotteries in the sale of radios and food
beaters ana mixers, and through misrepresentation of certain
products ana facilities furnished these merchants.
The alleged lottery scheme is said to involve one of
paraphernalia furnished by the respondents, including keys anc
a padlock, such keys being distributed by a merchant to custo¬
mers with each purchase of a stated amount of goods, usually
25 cents worth. In this manner, according to the complaint,
a merchant may pass out a large number of keys, sometimes as
many as 4500, two of which fit the oaolock. The two lucky
key holders are alleged to receive prizes, usually a radio or
a food mixer and beater, by m^ans of a game of chance.
The respondents' plan is alleged to be falsely
represented to the merchants as a sales promotion plan to get
the respondents' products before the public, when, in fact,
according to the complaint, it is a plan to dispose of the
respondents' products to the merchants.
Radios to be distributed by the respondent are
advertised directly or by implication as "Majestic", when,
according to the complaint, the sets used for this purpose
are not of that well-known brand.
XXXXXXXXXX
BBC MUST CARRY GOVERNMENT ADVERTISING FREE
In the British House of Commons recently, Mr.
EGweras (Labor Member for Middlesborough, E. ) asked the Post¬
master-General what charges were made for advertisement on
the wireless for Government Departments; and whether facili¬
ties were to be offered to other manufacturers.
In reply Major Tryon said: "I understand that the
notice in regard to vacancies in the Navy to which I assume
the Hon. Member's question refers, was broadcast at the request
of the Admiralty under the terms of clause 4 (2) of the British
Broadcasting Corporation' s license, which provides that the
Corporation shall, when requested by a Government Department,
broadcast at its own expense any announcement or other matter
which the Department may require to be broadcast. Clause 3 of
the license prohibits the Corporation from receiving money in
respect of the transmission of any broadcast matter and from
broadcasting any commercial advertisement."
XXXXXXXXXX
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NOTES
The Cruft Laboratory, Harvard University, this week
was granted a construction permit for a new experimental radio
station by the Federal Communications Commission to make con¬
tinuous automatic observations of the upper atmosphere. The
power is 600 watts with a frequency of 2,000 to 8,000 kc. ,
unlimited time.
The U. S. Navy destroyer named in honor of the late
Commdr. Tunis Augustus MacDonough Craven, grandfather of
Commdr. T.A.M. Craven, Chief Engineer of the federal Communi¬
cations Commission, was launched this week at Quincy, Mass.
A bill creating a State Board of Radio Censors,
with power to censor radio programs originating in the State,
and imposing a 2 per cent tax on local business of radio
stations has been introduced in the Washington State Senate
by Senator A. E. Edwards.
A favorable report on the application of WOCA,
Pensacola, Fla. , for permission to increase its power from
500 watts to 1 KW on 1340 kc. was filed with the Federal Com¬
munications Commission this week by Examiner Melvin H. Dalberg,
A resolution of the Cuban Department of Communication
authorizes the Cuba Transatlantic Radio Corporation, Obispe y
Aguiar Streets, Habana, to receive programs from the United
States and other countries for local retransmission by Cuban
broadcasting stations, and to transmit to stations abroad
programs originating in Cuban stations. The establishment of
this service is intended to provide a regular direct tie-in
between broadcasting networks in the United States and Cuban
stations and networks.
XXXXXXXXXX
11
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2/26/37
BECKER QUITS TELEPHONE INQUIRY, LAUDS RESULTS
The resignation of Samuel Becker as Special Counsel
for the Federal Communications Commission in its investigation
of the American Teleohone and Telegranh Comnany w?s accented this
week by President Roosevelt,
Mr. Becker, who took the post October 2, 1935, said
in his letter of resignation that the investigation was sub¬
stantially completed and that he was anxious to return to his
law practice in Wisconsin, where in the pasthe has acted in a
special capacity for Governor La^ollette.
The investigation has caused reductions of 122,000,000
in long distance rates this year. Mr. Becker reported and has
uncovered facts essential to intelligent regulation of communi¬
cations in the public interest.
XXXXXXXXXX
ZENITH STOCK HAS JUMPED 8374$ SINCE 1933
A chart showing how the stock of the Zenith Radio
Corporation, Chicago, had risen 8374$ since 1933 was carried in
a recent issue of the Chicago Tribune.
An explanation of the chart stated:
"At the top of the boom in *29 Zenith Radio sold for
$61.75 per share. Later, the same year, the price had frittered
away to $6.27. On May 17, 1932, the stock sold at the record
low of 50 cents per share, or two shares for a dollar.
"Stock sold at the same low price in 1933, a few days
before the moratorium. On Nov. 17, 1936, a nrice of $42.37 was
reached. The recovery from the low roint amounted to 8374 per
cent. "
XXXXXXXXX
NBC’S WEEKDAY DAYTIME REVENUE UP 94$
The National Broadcasting Company’s weekday daytime
revenue last month amounted to $961,866. This total represents
an increase of 94 percent over the same month last year, and
tops all previous January figures. Sunday daytime revenue last
month was $297,577 - an increase of 78 percent over January 1936,
XXXXXXXXXXX
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onuAUCASTING
GENERAL LIBRARY
[(fp-ffj
Heinl Radio BMMEss01 Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
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INDEX TO ISSUE OF MARCH 2, 1937
U. S. To Attend North American Radio Conference,
’937
H
Prices On Television Receivers Cut In Britain,, . 3
Columbia Puts On Good Show For W. H. Correspondents . 4
$150,000 Endowment Sought By U. S. Education Committee . 5
Radio Inquiry, Newspaper Curb At Standstill In Capitol . 6
Coronation To Put Television To practical Test . 8
Roosevelt, Jr. Attends Klauber "Sit-Down" Luncheon . 8
British Radio Licenses Number 8,071,464 . 9
Under-Bidding On Greek Station Is Disclosed . 10
PCA Net Profit For ’36 Is 20% Above ’35 . 10
Industry Notes . 11
Venezuelan Curb On Radio Imports Removed . 12
WRC Asks New Power And Transmitter Site . 12
No. 1008
March 2, 1937
U. S. TO ATTEND NORTH AMERICAN RADIO CONFERENCE
With the aim of eliminating the troublesome Mexican
border broadcasting stations, which operate on unauthorized
wavelengths, and of ironing out differences between North
American countries on long and short-wave frequency allocations,
the United States will participate this month in a preliminary
technical conference in Havana, Cuba.
The parley was called somewhat unexpectedly by the
Cuban Government, and invitations were extended to the United
States, Canada, and Mexico to attend. The American delegation
will be announced this week by President Roosevelt.
The Havana Conference will be technical in character
and will be preliminary to a general conclave of all North and
South American nations in the Cuban capital next November.
Although the Federal Communications Commission was
uncommunicative regarding the parley pending formal announce¬
ment by the President, it was learned that the following have
been recommended as the U. 3. delegates:
Comradr. T.A.M. Craven, FCC Chief Engineer; Lieut. E. K.
Jett, Assistant Chief Engineer; Gerald C. Gross, Chief of the
FCC International Section; and Harvey B. Otterman, State Depart¬
ment attorney.
The Havana meeting will be the first gathering of
North American countries on radio problems since the Mexico
City Conference of 1933, when the U. S. delegation quit the
parley after Mexico had demanded a dozen exclusive channels
and refused to outlaw the border stations operated by American
promoters.
Whether the new conference will be any more success¬
ful is conjectural, but FCC engineers are optimistic. It is
understood that Commander Craven will insist upon the North
American allocation plan proposed by him and his staff in the
recent engineering report to the Commission.
Ninety-six regular and ten high fidelity broadcast
bands are available to the North American continent. The United
States and Canada have an agreement by which this country uses
90 of the waves while Canada has six on an exclusive basis and
a dozen regional channels shared with American stations* Canada
also has stations operating on six local waves used in the
2
<0
5/2/37
United States and has one station assigned below the regular
broadcast band on 540 kc.
It appears likely that the U. S. delegation will
insist upon retention of at least 25 clear channels for this
country, as recommended in the FCC report, and that Canada will
demand the six exclusive channels it now holds.
Mexico and Cuba have never entered any agreement as
to the use of broadcasting facilities.
The most serious interference with American broadcast¬
ing has come from the border stations in Mexico operated by
former American broadcasters, such as Dr. John T5. Brinkley,
the "goat-gland specialist", and Norman T. Baker, cancer-cure
claimant, formerly of Muscatine, la.
Operating with high power and using directional
antennae pointed toward this country, these stations have caus¬
ed technical interference and the type of advertising sponsored
over the stations has brought many complaints to the FCC and
bhe State Department, both of whom are powerless to curb the
stations.
XXXXXXXXX
PRICES ON TELEVISION RECEIVERS CUT IN BRITAIN
Following the adoption of one technical standard of
television transmission from the British Broadcasting Corpora¬
tion's station at the Alexandra Palace, London, British manu¬
facturers announced startling reductions in the price of tele¬
vision receivers. It is now possible to obtain a receiver of
reputable manufacture, which will receive both the television
and sound signals from the Alexandra Palace, for as little as
L60. Television receivers, which include also provision for
the reception of ordinary broadcast programs either on the
long, medium, or short wavebancs, can be obtained for L80.
Most manufacturers have made arrangements for payments
to be spread over a number of months, so that for a small init¬
ial deposit and further payments at the rate of one pound a
week, it is now possible to own a television receiver. Some
manufacturers even offer free service and maintenance of
receivers during the period over which payments are being made.
XXXXXXXXX
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3/2/37
COLUMBIA PUTS ON GOOD SHOW FOR W. H. CORRESPONDENTS
This was the year for the Columbia Broadcasting System
to furnish the entertainment for the annual dinner given by the
White House Newspaper Correspondents in Washington, attended by
President Roosevelt and most of the other dignitaries in the
Capital, Last year the National Broadcasting Company furnished
the talent and each time one or the other of the broadcasting
companies gives the President a first-hand idea of what the
people in the studios actually look like.
Columbia's offering this year was exceptionally good.
Lanny Ross, tenor, stopped the show with half a dozen encores.
He, however, referred to President Roosevelt as the greatest
radio artist.
Bob Trout, Columbia1 s presidential announcer, rather
outshone the professional master of ceremonies provided for the
occasion. Bob told the amusing story of how, when the Presi¬
dent returned from Hawaii, he had to talk for one solid hour
holding the radio audience until President Roosevelt decided
to come ashore.
"It was probably the longest introduction anyone
ever had to make for the President", ^r. Trout went on. "I
talked and I talked and finally when to my relief, the Presi¬
dent came down the gang-plank, all he said was, 'I'm glad to be
home again', and then I said, 'This is the Columbia Broadcast¬
ing System.' And I say in closing the show tonight, 'This is
the Columbia Broadcasting System.'"
Edward Klauber, the First Vice-President of Columbia
was personally in charge of the entertainment. During the
evening there was a toast to Harry Butcher, Washington Vice-
President of Columbia, who had been prevented from attending by
a sudden attack of the grippe.
Preceding the dinner, cocktail oarties were given by
Columbia and NBC, the latter being made the occasion to meet
Clay Morgan, new publicity representative.
Among those of the radio world who attended were:
Kenneth H. Berkeley, WRC, Washington, D.C.; Louis
G. Caldwell, former General Counsel of the Federal Radio Commis¬
sion; Vincent Callahan, Assistant to the Vice-Presidnet of NBC
in Washington; Norman 3. Case, Federal Communications Commis¬
sioner; James Chinn, Radio Editor, Washington Star; T.A.M.
Craven, Chief Engineer, Federal Communications Commission;
Hampson Gary, General Counsel, Federal Communications Commission
John Guider, radio counsel, Washington; F. ?„ Guthrie, R. C. A.
Communications, Inc. , Washington, D. C. ; Robert D. Heinl, Heinl
News Service, Washington, D. C. ; Don Higgins, Acting Publicity
Director for Columbia Broadcasting System, New York City.
4
3/2/3V
Also, G. W. Johnstone, Station WOR, Newark; Paul
Kesten, Vice-President, Columbia Broadcasting System, New York
City; Edward Klauber, First Vice-President, Columbia Broadcast¬
ing System, New York City; Philip G. Loucks, Radio Counsel,
Washington, D. C. ; Clay Morgan, new Publicity Director, National
Broadcasting Company, ^ew York City; Frank Page, Vice-President
I . T. & T. , New York City; Duke Patrick, former General Counsel
of the Federal Radio Commission, Washington, D. C. ; Anning S.
Prall, Chairman, Federal Communications Commission; Victor
M. Ratner, Columbia Broadcasting System, New York City; A. D.
Ring, Assistant Chief Engineer, Federal Communications Commis¬
sion; Johr S. Royal, Vice-President, National Broadcasting
Company, New York City; J„ D. Secrest, W a shington Post ; Oswald
F. Schuette, Ra.dio Corporation of America, Washington, D. C. ;
Kurt Sell, German Broadcasting Company, Washington, D. C. ; .
Carleton Smith, National Broadcasting Company, Washington, ^.C. ;
Sol Taishoff, publisher of Broadcasting magazine; Paul White,
Columbia Broadcasting System, New York City; A. D. ("Jess")
Willard, Jr., Manager of Station WJSV, Washington, D. C. ; and
Frank Wisner, head of the publicity section, Federal Fommuni ca¬
tions Commission.
XXXXXXXXX
$150,000 ENDOWMENT SOUGHT BY U.- S. EDUCATION COMMITTEE
A fund of approximately $150,000 for furtherance of
radio educational programs has been recommended by a sub¬
committee of the Federal Radio Education Committee named last
year by the Federal Communications Commission. The Committee
is headed by Dr. John W. Studebaker, Director of the U» S.
Office of Education, and comprises 40 leading educators, broad¬
casters and representatives of religious, welfare and other
groups.
Conversations with officials representing the Carnegie
and Rockefeller foundations have been in progress for several
weeks through a subcommittee of the Federal grouo with likeli¬
hood of the endowment being forthcoming from those organiza¬
tions.
Members of the finance sub-committee include James W.
Baldwin, Managing Director of the National Association of
Broadcasters; Frederic A. Willis, Assistant to the President
of Columbia Broadcasting System, and John F. Royal, Program
Vice-President of the National Broadcasting Company, for the
broadcasting industry, along with Dr. Levering Tyson, President
of Muehlenberg College and retired Executive Secretary of the
National Advisory Council for Radio in Education; Dr. W. W.
Charters, of Ohio State University, and Hadley Cantril of Yale,
representing the educational group.
XXXXXXXXXX
- 5 -
3/2/37
RADIO INQUIRY, NEWSPAPER CURB AT STANDSTILL IN CAPITOL
Both the proposal of Senator Wheeler, Chairman of the
Senate Interstate Commerce Committee, to prohibit newspaper
ownership of radio stations and that of Representative Connery,
Chairman of the House Labor Committee, for an investigation
of the broadcasting industry are aoparently at a standstill.
Despite efforts of Mr. Connery to get a hearing on
his resolution, the House Rules Committee so far has not granted
him a hearing. Senator Wheeler, after obtaining the data he
requested on newspaper ownership of radio stations, has taken
no steps toward drawing up corrective legislation as he
threatened.
The delay may be due partly to the fact that the
President's judiciary proposal has crowded all other legisla¬
tion out of the way temporarily. However, newspaper inter¬
ests are inclined to believe that Senator Wheeler will not
push his proposed ban on newspaper control of broadcasting
outlets.
The radio investigation asked by Congressman Connery
appears at this stage to have a better chance, but it may be
so hedged about with safeguards that it will not amount to much
when ordered. Chairman O'Connor, of the Rules Committee, is
determined that no harm will come to his good friend, Anning S.
Prall, Chairman of the Federal Communications Commission.
Meanwhile, newspapers and their trade organs have
been denouncing Senator Wheeler's prooosed curb in editorials.
if
The Hartford Times suggested tha t/newsnapers are not
to be permitted to operate broadcasting stations then radio
should be compelled to gather its own news.
The paper points out that newspapers exist primarily
for the purpose of presenting the news of the world through
the medium of paper and ink and that radio is merely another
means of presenting the news.
Editor and Publisher had this to say, among other
things, of the Wheeler idea:
"After reading all the legal hems and haws in the
opinion of Mr. Hampson G-ary on the right of Congress to prohibit
newspaper ownership of radio stations, we must conclude that
counsel for the Federal Communications Commission ha.s no more
knowledge and no better guesses than any other human, judge,
lawyer, or layman.
"To our prejudiced mind, the proposal of Senator
Wheeler to bar newspapers from radio is ridiculous. If ever
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3/2/37
science and commerce produced a. pair of natural adjuncts, they
did when radio entered the field of public communica tions pre¬
viously dominated by newspapers. During the past century,
the press has laboriously constructed a machine for supplying
the nation with intelligence the like of which recorded history
has not seen. The machine functions, if not to perfection,
with greater precision and smoothness than any other instru¬
ment of our civilization. With slight modifications, it can
be applied to the new communications medium at a maximum of
public convenience and a minimum of duplicated effort and
expense.
'•It is being applied in that manner by more than
150 daily newspapers which now own or operate stations. The
number has increased steacily as newspapers have come to
recognize that kinship unites the press and broadcasting more
strongly than their competitive aspects separate them. The
competition which raged for several years was senseless and
hurtful to all concerned.
"Forget all cries of ’freedom of the press1, *due
process of law1 and the other legal shibboleths. Consider the
question on the basis of straight common sense, and no other
conclusion can be reached than that no radio-press monopoly
is likely under existing law and under existing commercial
conditions. "
Newsdom, another trade organ, says:
"Word comes from Washington that Senator Wheeler’s
abortive scheme to prohibit newspapers from owning radio sta¬
tions will be given a fitting burial in one of the many bureau¬
cratic wastebaskets which are rarely called into service for
such a purpose.
"Senator Wheeler's pet phobia, monopoly, carries him
to extremes at times. He fears that the press will control the
principal means of communications if publishers are permitted
to own radio stations and broadcast news therefrom. But as the
Hartford Times points out this week, the newspaper’s main func¬
tion is not only to ga.ther news and disseminate it through the
medium of paper and ink, but also to feed it to the radio which
has no large news gathering organizations of its own.
"Our principal press associations, the United Press,
Associated Press and International News Service are the main
sources of news now being broadcast and rehashed by commenta¬
tors. Surely Senator Wheeler would not contend that any one of
these groups holas a monopoly on news. It ctoes not take an
act of Congress to permit any outside ^roup to compete with
these press associations if that &roup sees fit to do so. Of
course it may take the outsiders many years to acquire the
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3/2/37
technique of news gathering and the experience may involve a
huge expense yet they can do so if they so desire.
"The complainant in the case seems to be Senator
Wheeler who has set up a straw man that he may knock him down
with a vengeance to the delight of demagogic press-baiters."
XXXXXXXXXX
CORONATION TO PUT TELEVISION TO PRACTICAL TEST
The first practical use of television on a large
scale in connection with a public spectacle is to take place
in London this Spring, when views of the coronation procession
will be broadcast by the British Broadcasting Corporation.
Workmen are already engaged along the route in the
West End of London in laying wires that will connect machines
on the spot with the company ' s Alexandra studio.
It is reported that the coronation broadcast will
involve a large expenditure by the corporation, the cost of
writing alone being about L per yard.
Although the Derby horse race was televised last
year, it was a private enterorise and more in the nature of
an experiment than a practical demonstra tion of television,,
XXXXXXXX
ROOSEVELT, JR. ATTENDS KLAUBER "SIT-DOWN" LUNCHEON
A flattering turnout, including James Roosevelt,
the President's newest secretary, greeted Edwa.rd Klauber,
First Vice-President of the Columbia Broadcasting System, at a
beautifully staged luncheon in Washington last Friday,,
"Harry Butcher, Columbia V-P, in the Capital, is
right up with the times in having a 'sit-down* luncheon as
differentiated from the numerous buffet affairs so frequently
encountered in Washington", one of the guests observed, as he
sat down apparently grateful to be served at a. table in the
old-fashioned way.
Mr, Klauber came to Washington to attend the White
House Correspondent s ’ Dinner, the entertainment for which
Columbia furnished this year. The only speech made at the
luncheon was the iraprompty breaking in of District Commis¬
sioner George E, Allen, who told about an intelligence test
he had been holding at his office a short time before. It
was for a man seeking a job in one of the Washington city
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3/2/37
departments. Commissioner Allen, having the luncheon in mind,
asked him, "How many people work for Columbia?" To which the
applicant immediately replied, "About one-third. "
Among those who came to meet Mr. Klauber were
Secretary of Agriculture Wallace; Stephen Early and Marvin
McIntyre, secretaries to the President; Lawrence Richey, who
served as secretary to President Hoover; Joseph Tumulty, who
served in the same capacity to President Wilson; Chester C.
Davis, of the Federal Reserve System; Judge Eugene 0. Sykes,
Federal Communications Commissioner; Admiral W. D. Leahy;
Merle Thorpe, Editor of the Nation 1 s Business ; Bond Geddes,
Vice-President of the Radio Manufacturers' Association; Martin
Codel and Sol Taishoff, publishers of Broadcasting magazine;
Louis G-. Caldwell, counsel for Station WGN? Chicago; Arthur
Sears Henning, Chicago Tribune ; Hal Smith, New York Times; Paul
Leach, Chicago Daily News; Charles 0. Gridley, President,
National Press Club; William Dolph, Station WOL, Washington;
Fremk M. Russell, Vice-President, National Broadcasting
Company; Paul Porter, new attorney for Columbia in Washington,
and A. D. ("Jess") Willard, Jr., Manager of Station WJSV.
XXXXXXXX
BRITISH RADIO LICENSES NUMBER 8,071,464
The total number of radio receiver licenses in force
in Great Britain at the end of January, 1937, was 8,071,464.
This figure compares with 7,478,617 at the end of January, 1936,
and represents an increase during the year of 592,847.
Every owner of a wireless receiver in Great Britain
and Northern Ireland must oota.in from the British Post Office
an annual license, which costs ten shillings. Free licenses,
however, are issued to blind persons, Unaer the terms of its
Royal Charter the British Broadcasting Corporation receives
approximately six shillings and tenpence from each license fee.
In the High Court of Justice in London recently, the
decision of the Postma ster-General that listeners who receive
their broadcast programs through the medium of wireless
exchan&es must each purchase a. wireless receiving license was
upheld. Wireless exchanges are numberous throughout Great
Britain. By this practice a central receiver is established
in a congested area or within a large block of flats, and in
return for a small annual payment listeners can obtain their
programs from a loudspeaker provided by the operating company,
which is connected to the central receiver by means of specially
installed wiring. Listeners who receive their programs In
this manner number several hundred thousand.
XXXXXXXX XX
3/2/37
UNDER-BIDDING ON GREEK STATION IS DISCLOSED
"Further details are now available regarding the radio
broadcasting station contract recently awarded to Telefunken",
writes U. S. Commercial Attache K. L. Rankin, from Athens:
"As a means of out-maneurvering the 5 other bidders
whose tenders were being considered by the Greek Ministry of
Communications, Telefunken made a last minute offer to suooly
a 15 kw. transmitter at the price of a 10 kw. unit. Telefunken
further offered to have it ready for operation within 3 months
from the completion by the Government of the necessary building.
The price quoted for a 10 kw. transmitter, which also aoplies
to the 15 kw. unit, was 225,664 reichsmarks payable in 7 annual
installments at 6 percent interest per annum. Payment will be
effected, of course, through the Greco-German clearing arrange¬
ment. Telefunken further promised to make the Greek Government
a present of the 15 kw. transmitter if it is awarded the con¬
tract for the 100 kw. station which is being contemplated for
Athens at a later date.
"For these considerations presented at the last min¬
ute, the Government decided to ignore all the tenders for 10 kw.
transmitters and accept Telefunken' s offer for a 15 kw. instal¬
lation, without giving a chance to the other bona fide bidders
to amend their tenders.
"The thing which now worries the unsuccessful bidders
is not so much the loss of the comparatively unimportant con¬
tract for a 10 kw. or 15 kw. transmitter but the possibility of
the purchase from Telefunken of the larger station without an
adjudication on the basis of the attractive offer made by the
firm in connection with the sale of the 15 kw. unit. "
XXXXXXXXXXX
RCA NET PROFIT FOR '36 IS 20$ ABOVE '35
The annual report of the Radio Corooration of America,
issued late last week, shows that its net profit for 1936 was
$6,155,937, an increase of 20 percent over the net of $5,126,672
in 1935. After allowing for all preferred dividends paid or
accrued in the year, there remained $2,845,285 applicable to the
common stock, or 20-|- cents a share.
Gross income received by the corooration from all
sources, including both sales and service, amounted to $101,186,-
310, compared with $89,228,898 in 1935, an increase of 13.4 per¬
cent. The cost of operation for 1936 was $89,722,151, compared
with $78,885,740 in the preceding year. Included in the cost
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of operations are those for goods manufactured and the operat¬
ing expenses for broadcasting and communication services, as well
as the costs of research and development, advertising, selling
and administration.
The net income for 1936, before deductions for Federal
income taxes, interest, depreciation and amortization of pat¬
ents, amounted to $11,464,159, compared with $10,343,159 in
1935, a gain of 10.8 percent. Provision for Federal income
taxes, interest, depreciation, amortization, etc. totaled
$5,308,223, compared with $5,216,286 in the preceding year.
XXXXXXXXXX
* * INDUSTRY NOTES * *
Alfred J. McCosker, President of WOR, returned last
week to WOR from a Winter vacation in Florida with Mrs. McCosker.
Arcturus Radio Tube Company reports a net loss of
$213,178 for 1936, after inventory write-offs, compared with
net profit in 1935 of $23,480, equal to 2 cents each on
1,200,000 $1 per capital shares.
Effective April 1st, the rate for Station WEBC,
Duluth-Superior, of the NBC Northwestern Group, is increased to
$140.00 per evening hour, according to ^oy C. Witmer, NBC Vice-
President in Charge of Sales. Current advertisers or new
advertisers contracting for this station prior to April 1st,
for a starting date of not later than 90 days from April 1st,
may continue at the old rate of $120.00 per evening hour for
one year from April 1, 1937, as long as they continue the use
of this station on a Network basis without interruption.
Mr. Harry 3utcher, who is suffering from the grippe
is reported to be better at this date, his fever having broken.
Mrs. Butcher, unfortunately has contracted it now and is on
the sick list.
J. R. Poppele, Chief Engineer of WOR, saild last week
on the "Statendaam for an 18 day cruise to the West Indies and
South America. Poppele is accompanied by Mrs. Poppele and their
two daughters, June and Lorraine. Mr. Poppele, while at
Caracas, Venezuela, will be a guest of honor at the opening
ceremonies on March 6 of Station YV5RP, which will operate on
6270 kilocycles.
XXXXXXXX
11
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3/2/37
VENEZUELAN CURB ON RADIO IMPORTS REMOVED
An official announcement in the Caracas press states
that it is no longer necessary to obtain special permission
to import radio receiving sets and accessories. Fhe text of
the announcement is as follows:
"The Director of Telecommunica tions , by order of the
Minister of Communications, announces to the trade of the
country and to the public in general that, from that date, it
is not necessary to request permission to import radio receiv¬
ing apparatus or their accessories, as according to Article 80
of the Regulations of Radio transmission, it is only necessary
to advise the appropriate custom house, in order that the
functionary designated by the Direction of the Service may
ascertain whether said apparatus and their accessories are or
are not receivers and if the order conforms to the law. ,f
The customs authories, according to the law, should
be advised when shipments of radio apparatus have arrived.
XXXXXXXXXX
WRC ASKS NEW POWER AND TRANSMITTER SITS
Permission to install a new transmitter at a dif¬
ferent location, increase the power, and erect a new antenna
for Station WRC, outlet of the NBC Basic Red Network at Washing¬
ton, D. C. , is sought in an apolicetion filed with the Federal
Communica tions Commission by "the National Broadcasting Company.
Operation of W^C with the new equioment and the
increased power would materially strengthen its signal and more
than double its area of coverage, according to NBC engineers.
At present, WRC operates with a power of 1,000 watts in the day
and 500 watts at night on 950 kc. The NBC apolication is for
an increase in power to 5,000 watts in the day and 1,000 watts
at night.
The new transmitter to be used would be of the ultra¬
modern, high fidelity type, built by the Radio Corporation of
America.
XXXXXXXXXX
12
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONF!DENTIAL-Nol for Publication
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INDEX TO ISSUE OF MARCH 5, 1907.
s j Stewart Raps Press Control, Adds To FCC's Calculation . 2
Curb On Fadio Testimonials Proposed In Bill . 5
Gary Talks On Procedure Before FCC To Law Alumni . 5
Radio Manufacturers Eventual Target Of C.I.0 . 6
FCC Nominates Engineers For Bucharest Parley . 6
RCA Television Received 45 Miles Away, Report States . 7
U. S. Delegates Named For North American Parley . 8
BBC To Lay Coaxial Cable To Broaden Television . 8
French Listeners Rap Propaganda , Pick °adio Councils . 9
Two New High Frequency Stations G-ranted Licenses . 10
Effective Date Of FCC Rule Postponed . 10
Women’s Radio Committee To Make Awards March 51st . 11
Lord’s Prayer Plaque Is Unique Broadcast Souvenir . 11
-■-Lawyers Given Television Test By NBC . 12
Hearing Held On Globe Wireless Radio-Mail Service . 12
No. 1009
£ -
.
■
STEWART RAPS PRESS CONTROL, ADDS TO FCC ' S CALCULATION
Filing a dissenting opinion in the case of Dorrance
D. Roderick, of El Paso, Texas, Commissioner Irvin Stewart this
week made the first attack from the Federal Communications
Commission on newspaper ownership of radio stations and sub¬
mitted new figures to show that 200 stations, rather than 150
as stated by the FCC, are controlled by newspapers.
Mr. Stewart attacked the Roderick grant and urged a
rehearing on the ground that it may result in the extermination
of the only competing station KTSM, and thereby permit a news¬
paper to control the only broadcasting station in the community.
Roderick also owns the El Paso Times.
His argument follows in general the line of reason¬
ing of Senator Wheeler ( D. ) , of Montana, who has stated he will
introduce a bill to restrict newspaper ownership of broadcast¬
ing stations.
"Broadcasting has given the listener the means of
checking on tne newspaper", Commissioner Stewart said. "More
important it has given him a means to supplement the informa¬
tion he gets from the paper, to get matter denied him in the
process of editorial selection or because of the limited
resources of the publisher. This does not mean that he always
gets better or more accurate information over the radio. The
reverse may often be the case. Editorial discretion is a part
of the broadcaster's stock in trade as it is of the publisher.
There are instances in which tne broadcaster has used his edi¬
torial discretion in a manner heartily to be condemned by fair
minded men. The main thing is that where the newspaper and
the broadcast station are separately controlled, the listener
may receive the full benefit of both - that he has more chance
to decide for himself what is really happening, what its
influence upon him, his family, his community, his country is
likely to be. Obviously the newsoaper and the broadcast sta¬
tion can not be checked against each other when both are under
the same control. To some this solicitude for channels of
information independent of each other may seem a counsel of
confusion; to me, it is a principal hope of democracy.
"As possibly shedding some light on the question of
public interest as affected by newspaper control of broadcast
stations it may be observed that one of the most direct requests
that the Commission limit the freedom of speech of broadcasters
was made on behalf of the American Newspaper Publishers'
Association. That Association, on June 22, 1936, requested the
Commission to fix definite periods as the only times at which
news could be broadcast.
2
Hsinl - 2
3/5/37
"Persons familiar with developments in broadcast i; g
are aware cf the exceeding rapidity with which broadcast sta¬
tions are passing into newspaper control. It is not possible
to compile a list of newspaper controlled broadcast stations
with assurance that it is complete. This is due to the fact
that the Commission does not require the disclosure of informa¬
tion leading to ultimate control. Where the application of a
station shows that its stock is owned by another company, the
name of the owning company does not always give a clue to its
real business. Thus one cannot state with absolute finality
the number of broadcast stations owned or controlled by or
affiliated with newspapers or persons interested in publishing
newspapers. The number may be somewhat larger than that given
below.
"Likewise it is not possible to define in a single
term all types of relationship between newspapers and broad¬
cast stations. In some cases the company owning a newspaper
owns the broadcast station; in some the same holding company
owns both; in some each is owned by a separate holding company,
in turn owned by the same persons; in some the publisher of
the newspaper owns the station as an individual; and there are
several other variations of the same general idea. For simplic¬
ity of expression I am referring to all such cases collectively
as newspaper controlled stations. In the total figures for
newspaper controlled stations given below, there are included
29 existing stations and 12 pending applications where the
ascertainable newspaper interest is 49^ or less or the common
relationship is one which may fall short of control..
"In an endeavor to obtain complete information as to
newspaper control of broadcast stations, I have supplemented the
information disclosed by the Commission' s records with such out¬
side information as is available. ^he totals given below include
four existing stations where the newspaper interest is not
apparent from the Commission's records; in these cases the
interest common between the newspaper and the broadcast station
may be short of controlling. Within the limitations set out
above, the following figures show the situation with respect
to newspaper controlled broadcast stations as of February 16,
1937:
Existing Stations
Controlled by
Newspapers
Pending Applications to
Transfer Existing Stations
to Newspaper Control
Pending Applications
for New Stations to
be Newspaper Con¬
trolled
200
8
103
O/ D/O Y
The Commissioner then included a table showing the
dates from which newspaper control of the stations had been
continuous.
"Comparatively few of the present stations were news¬
paper controlled during the highly experimental period prior to
the creation of the Federal Radio Commission", he continued.
"Newspaper control of most of them dates from the time when
broadcasting had definitely demonstrated its value as a news
distributing medxum and its power to make money as an advertis¬
ing medium. More than one-half of them have come under news¬
paper control since January 1, 1934, after the revenues of
broadcast stations had stood up so significantly during the
depression. The greatest rate of increase has occurred since
the establishment of the Federal Communications Commission.
In 1935 the Commission approved nearly twice as many newspaper
stations as during 1935. In the period January 1 - February
16, 1937, eight newspaper controlled stations have been author¬
ized; in the same period of 1936 none were authorized.
"There is no reason to believe that the demand for
newspaper controlled stations will not continue. Although broad¬
cast stations have come under newspaper control at a constantly
accelerating rate, there were Dending on February 16, 1937, a
total of 111 applications the granting of which would result
in other stations coming under newspaper control. The corres¬
ponding figure stood at 97 on October 1, 1936, at 87 on
August 1, 1936, and at 62 on February 1, 1936. In other words,
in spite of the rapidity with which newspaper stations have
been authorized, there has been a steady increase in the number
of applications yet to be acted upon. Fven the open-handed
policy thus far pursued has not been able to keep up with the
demands of newspapers for broadcast stations.
"To these newspaper stations which were .among the
pioneers in the development of broadcasting, much credit is
due. However, the table shows that few of the stations pre¬
sently controlled by newspapers were among the pioneers. Most
of the newspapers now controlling stations merely jumped on
the bandwagon.
"Of more than passing interest is the following: in
the case of only 78 out of the total of 200 newspaper controlled
stations does the newspaper interest date from the construc¬
tion permit or other original authorization. In the other
122 cases the newspaper interest has been projected into an
already existing station.
"There are 103 cities in which the only broadcast sta¬
tion is newspaper controlled, 8 cities with two broadcast
stations each in which both stations are newspaper controlled,
and 2 cities with three broadcast stations each in which all
three are newspaper controlled. Thus there are 113 cities in
which all local broadcast stations are under newspaper contro? . "
XXXXXXXX
- 4 -
3/5/37
CURB ON RADIO TESTIMONIALS PROPOSED IN BILL
A Federal restriction on advertising testimonials
broadcast by radio stations was proposed this week in a bill
introduced in the House by Representative Maloney (D. ), of
Louisiana.
The measure, which seeks to amend Section 317 of the
Communications Act by adding a new subsection, reads:
"(b) It shall be unlawful for any individual to
broadcast by radio communication any recommendation of the use
of any article and, in such broadcast, to indicate that such
person has used such article, unless such individual shall,
at the time of such broadcast, also broadcast the fact, if
true, that the recommendation was secured by the oromise or
payment of money or other valuable consideration, or that such
person has been promised or has received money or other valu¬
able consideration for the broadcast of which such recommenda¬
tion is a part. "
XXXXXXXXXX
GARY TALKS ON PROCEDURE BEFORE FCC TO LAW ALUMNI
An address by Hampson Gary, General Counsel of the
Federal Communications Commission, to the Georgetown University
Alumni Club, Washington, on legal procedure before the FCC,
was printed this week ( March 4) ..in the appendix of the
Congressional Record.
After discussing the rules of the Commission in
detail, Mr. Gary said:
"Since the adoption of these rules the Commission
has become aware of some inadequacies - that one or two rules
appear to be working a hardship in some respects. It was, of
course, to be anticipated that the rules would need some
revision and amendment after there was a practical try-out of
them. It is the earnest desire of the Commission to correct
inequities, and it welcomes constructive suggestions from
which it may evolve amendments to the rules to the end that
its procedure will respond more nearly to the purposes of the
Act end the needs of the administration thereunder; in a
word, that they may render maximum usefulness.
"The determina tion of the proper balance between
public need and private ambition in "the communications field
presents a challenge to our honored profession. As science
forges ahead and lays yet more wonders at our feet, may we
keep pace in promoting and safeguarding these advances for
the common good and make due contribution to the he
piness, and welfare of all the people."
XXXX'XXXXXX
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3/5/37
RADIO MANUFACTURERS EVENTUAL TARGET OF C.I.O.
The scheduling of a conference this week between the
General Electric Company and the United Electrical and Radio
Workers for March 15th led to predictions in broadcasting
circles that John L. Lewis' Committee for Industrial Organiza¬
tion will eventually make demands for wage and hour improve¬
ments, and probably recognition of the UERW, on the principal
radio manufacturers,,
Lewis has indicated that he will start negotiations
with the smaller industries after obtaining benefits from the
larger, such as the steel and automobile manufacturers.
The success of Lewis in obtaining concession from
General Motors and leading steel companies, labor leaders pre¬
dict, make it inevitable that demands will be made of the radio
industry.
The General Electric-UERW conference will affect
60,000 employees. It will be held in New York City.
A blanket increase of 10 cents an hour for all
employees, including salaried ones; increased compensation for
certain shifts, revision upward of bonuses and elimination of
all forms of the "group incentive or speed-up system" of pay¬
ment will be among the questions discussed at the conference.
While the negotiations will concern more immediately
wage and working conditions in the Schenectady plant, a
Committee elected by the Union in January to draw up a proposed
basis for bargaining on a scale affecting all the plants of the
company, will also participate in the conference.
XXXXXXXXX
FCC NOMINATES ENGINEERS FOR BUCHAREST PARLEY
The Federal Communications Commission has recommend¬
ed E. K. Jett, Assistant Chief Engineer in charge of Telegraph,
and Gerald C. Gross, Chief of its International Section, as
representatives of this country at the Interna tional Radio
Consulting Committee meeting in Bucharest in May.
The appointments must be approved by the State Depart¬
ment and made by the President. State, Army and Navy dele¬
gates also will be named. The meeting is prenaratory to the
International Telecommunications Convention to be held in
Cairo, Egypt, early next year,
XXXXXXXX
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3/5/37
RCA TELEVISION RECEIVED 45 MILES AWAY, REPORT STATES
Reception of the experimental television broadcasts
by the Radio Corporation of America in New York City has been
achieved as far away as 45 miles, according to the RCA annual
report to its stockholders. This is farther than the regular
transmission distance of the BBC television broadcasts in
London.
The RCA report on its television experimentation
reads as follows:
"RCA television was taken from the laboratory in
1936 for practical field tests under everyday working conditions.
These tests are continuing with gratifying success.
"The tests began on June 29, 1936, on the basis of
343 lines to the picture. Later, those engaged in the research
agreed that 441 lines would be a more desirable standard for
ultimate public service. Accordingly, the new standard was
adopted. Successful field tests on the new, 441-line standard
have been in progress since January 19, 1937. The need for
additional experimentation indicates that this work will con¬
tinue for some months to come.
"In the field tests now in progress, images of motion
pictures as well as living talent are being successfully trans¬
mitted to approximately 100 receivers located in the homes of
RCA technicians in the greater metropolitan area of New York
City. The distance over which these television programs have
been received has exceeded our immediate expectations. In one
favorable location programs have been consistently received
as far as 45 miles from the television transmitter.
"The tests have been highly instructive. Much has
been learned about the behavior of ultra-short waves and how to
handle them. More is known about interferences, most of which
are man-made and susceptible of elimination. The difficulties
of making apparatus function efficiently outside the laboratory
are being surmounted. The technical fundamentals of our system
have been confirmed. Theory has been put into practice, and the
experience gained thereby is enabling the laboratories to chart
the needs of a practical television service.
"A major problem in television is that of network pro¬
gram distribution. The present facilities for distributing
sound broadcasting cover the vast area of the United States and.
serve its 128,000,000 people. Similar coverage for television
programs in the present state of the television art would
require a multiplicity of transmitters and network interconnec¬
tions by wire or by radio facilities still to be developed. "
XXXXXXXXXX
7
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3/5/37
U. S. DELEGATES NAMED FOR NORTH AMERICAN PARLEY
The State Department this week announced the names
of the delegation which will represent the United States at
the North American Technical Radio Conference at Havana March
15-22 (see last news letter). In its official announcement the
Department said:
"This Government has accepted an invitation of the
Government of Cuba for participation in a preliminary regional
radio conference to be held at Habana from March 15 to 22, 1937 ,
for the purpose of consulting with representatives of the
Governments of Cuba, Canada and Mexico regarding radio matters
in this hemisphere, particularly broadcasting. The object of
the meeting will be a consideration of problems of interest to
all of the participating governments and the formulation of
an agenda for a formal regional radio conference to be held
in early November of this year and to be participated in by
the governments of the Western Hemisphere.
"Commander T.A. M. Craven, Chief Engineer of the
Federal Communications Commission, has been selected to act
as Chairman of the American delegation to the preliminary con¬
ference. The other delegates of this Government are to be
Mr. E. K. Jeff, Assistant Chief Engineer, and Mr. Gerald C.
Gross, Chief of the International Section of the Federal Com¬
munications Commission, and Mr. Harvey B. Otterman of the
Treaty Division of the Department of State. "
XXXXXXXXXX
BBC TO LAY COAXIAL CABLE TO BROADEN TELEVISION
As a means of broadening the range of the BBC tele¬
vision broadcasts in London, the General Post Office is to lay
a coaxial cable around inner London so that "outside” televi¬
sion broadcasts may be made with the new television van
recently purchased by the B.B.C. , according to U. S. Assistant
Trade Commissioner Henry E. Stebbins. This cable will be
tapped at various places as occasion requires, such as during
the Coronation, thus giving a much greater degree of flexibil¬
ity in television broadcasts. In addition to being able to
feed pictures from the camera to the coaxial cable, the van
will have an ultra short wave transmitter to take care of the
sound. It is understood that the range should be about 6 miles
on the average, subject to variations.
With this van and cable it is hoped that sporting
events such as cricket, horse and greyhound racing may be
televised on the spot.
XXXXXXXXXX
- 8 -
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FRENCH LISTENERS RAP PROPAGANDA , PICK RADIO COUNCILS
The balloting this week of French radio listeners
for councils to govern France’s 12 regional broadcasting sta¬
tions attracted world- wide attention because (1) the election
is unique and (2) the listeners registered a protest against
the use of propaganda over the ether waves by the Government.
The New Yoru Times in a special Paris dispatch
noted the significance of the radio ballot. The corresoondent
saia, in part *
’'France has been holding radio elections this week
which have caused almost as much excitement as a Parliamentary
poll. In fact, the campaign nas been conducted on such well-
defined political lines and politics have been injected to such
an extent that some people go so far as bo sneak of it as a
kind of straw vote on the accomolishments of the Blum Cabinet
in the last nine months.
’’That is doubtless going too far. But what the
elections clearly show is that propaganda is two-edged.
"Apart from any possible political significance, how¬
ever, the elections have considerable general interest in that
they mark virtually the first consultation of listeners-in in
any country, where radio is a government monopoly.
"Regardless of age, sex or nationality any person
paying a tax on a receiving set is entitled to vote for
listeners’ representatives on the management councils, which
supervise the preparation of programs. When these groups were
created under a Rightist government the listeners delegates
also had a. word to say in financial matters, but the Popular
Front government abrogated such control over the expenditure of
the proceeds from taxes on radio sets amounting to some
150,000,000 francs annually. The management councils consist
of thirty members of which one-third are popularly elected,
the remainder being named by the government.
"There are two main tickets in the current election,
namely, the Radio- Family , roughly representing the Right par¬
ties and church influence and the Radio-Liberty, representing
the Left parties with the Communists active in the electoral
campaign.
"Both sides charge bribery and corruption. The
Radio-Liberty party accuses its opoonents of ourchasing whole¬
sale numbers of crystal set licenses costing only 15 francs
apiece.
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3/5/37
"However, all politics apart, the result of the
elections stands out as a protest against propaganda.. The Blum
Cabinet made no secret that it was using broadcasting for
political purooses, but overzealous subordinates racked the
programs with many political talks and tinted the news with
such pronounced party bias that many listeners, even if adher¬
ents of the Left parties, oreferred to switch on foreign sta¬
tions for some music.
"Whatever else the poll may be construed to show it
undoubtedly proves that there is such a thing as overdoing
propaganda. "
XXXXXXXX
TWO NEW HIGH FREQUENCY STATIONS GRANTED LICENSES
The Federal Communications Commission this week
granted construction permits for the erection of two new high
frequency radio stations. They are?
Ben S. McGlashan, Los Angeles, on 88,000, 120,000,
24Q.,000, and 500,000 kc. , with 500 watts; and Charleston
Broadcasting Co., Charleston, W. Va. , 25,100 kc. , 500 watts.
XX XXXXXXXX
EFFECTIVE DATE OF FCC RULE POSTPONED
The effective date of Rule 981 of the Federal Com¬
munications Commission was further postponed for a period of
6 months from March 15, 1937, to give the manufacturers addi¬
tional time in which to perfect this equipment for sale to the
licensees. (This rule relates to frequency monitors).
XXXXXXXXXX
The Chairman of the Telephone Division of the Federal
Communications Commission announced, this week that further
hearings in the teleohone investigation will begin at 10:00 A.M,
March 22nd.
XXXXXXXXXX
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3/5/37
WOMEN'S RADIO COMMITTEE TO MAKE AWARDS MARCH 31ST
The Women's National ^adio Committee will hold its
annual award luncheon Wednesday, March 31st, at the Hotel
St. Regis in New York City, the newly elected Chairman, Mme.
Yolanda Mero-Irion, has announced.
The Committee is increasing the number of awards
this year from five to six, the classifica tions including
musical, dramatic, variety, news, and children's programs,
and also an adult educational program.
The award committee will be made up of representa¬
tives of the Women's National Radio Committee and of special¬
ists in the various fields which are under consideration.
Announcement of the awards will be made to a Nation-wide
audience through networks of the major broadcasting companies.
Federal Communications Commissioner Anning S. Prall,
executives of tne broadcasting companies and other distinguished
representatives of the radio world will be invited to attend.
XXXXXXXXXX
LORD'S PRAYER PLAQUE IS UNIQUE BROADCAST SOUVENIR
Unique among radio souvenirs for listeners is the
miniature plaque carrying the complete text of the Lord's
Prayer which Station KFUO, the Lutheran outlet at St. Louis,
is offering listeners to the Lutheran Hour network program.
Station KFUO is the key station for the religious
broadcast, now on 28 stations, including two short-weve
transmitters. Herman H. Hohenstein, director of KFUO, said
that approximately 5,000 nieces of fan mail are received
every week.
XXXXXXXXXX
White House sources said this week that Mrs. Franklin
D. Roosevelt will begin in mid-April a 13-week series of talks
on a commercial radio program. Her compensation, these
sources said, will be paid directly to the American Friends'
Service Committee, a charitable organization with headquarters
at Philadelphia. The remuneration was not announced.
XXXXXXXXXX
11
3/5/37
LAWYERS GIVEN TELEVISION TEST BY N3C
Members cf the Communications Committee of the
New York County Lawyers’ Association were to get their first
practical experience in the operation of television, Friday
night, March 5th, when they were the guests of the National
Broadcasting Company, at a television demonstration in Ra.dio
City.
The demonstration was arranged by A, L. Ashby, Vice-
President and General Counsel of tne National Broadcasting
Company, Director of the N.Y.C.L.A. , and Chairman of the
Communications Committee. Charles Evans Hughes, Jr., President
of the Association; Robert C. Morris, Past President; Terrence
J. McManus, Secretary and approximately thirty members of
the Communications Committee were present.
XXXXXXXXX
HEARING HELD ON GLOBE WIRELESS RADIO-MIL SERVICE
The Telegraph Division of the Federal Communications
Commission this week was engaged in a lengthy and technical
hearing on the question of whether to approve or disaporove the
radio-mail service furnished by the Globe Wireless Comoany
and the Pacific Islands.
RCA, Mackay, Western Union, and the Commercial
Pacific Cable Co. were united in orotesting against the ser¬
vice, which is said to be cheaper than the normal radio or
cable communication rates. It also reputedly does not meet
other standards.
The hearing has been in progress all week and will
continue into next week. Dr. Irvin Stewart is presiding.
XXXXXXXXX
The new Yugoslav financial law proposed with the
1937-1938 budget contains provision to conclude agreements for
the construction and operation of new radio stations at Zagreb,
Ljubljana, and Belgrade, with relay stations at Sarajevo,
Split, Maribor, and Skoplje.
XXXXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF MARCH 9, 1937.
U. S. Engineers Battle Against Over-Crowded Waves . 2
N. Y. Liquor Authority To Use Radio In Temperance Drive . 4
CBS February Billings Up 18.6 % Over 1936. . 4
Old Sol Promises More Trouble On Short-Waves . 5
NBC's February Revenue 21% Up Over Year Ago . 5
Daly Reintroduces Bill To Protect Radio Musicians . 6
Standards Bureau Develops New Radio Meteorograph . 6
Motor Cars Interfere With Television, BBC Finds... . 7
U. S. Snort-Wave Service Soon Will Equal European . 8
Trade Notes
9
Behn, Back From Spain, Says Losses Heavy . 10
CBS Declares Dividend; G-oing On Exchange.... . 10
Mutual February Billings Total $202,088.36 . 10
Lawrence Says Nets' Policy Favorable To Court. . 11
NBC Joins Expedition To Pacific Isle . 11
Mutual Network To Add 10 More Stations . 12
padio Provides 95,500,000 Family-Hours Of Listeners Daily . 12
No. 1010
March 9, 1937.
U. S. ENGINEERS BATTLE AGAINST OVER-CROY/DED WAVES
American broadcasting engineers, led by representa¬
tives of the Federal Communications Commission, are prepared to
wage a fight at the aporoaching C.C.I.R. conference in Bucharest
for sufficient separation between two radio stations to permit
listeners to hear both with a reasonably modern set but not at
the same time.
The report of the American committee on the question
of kilocycle separation, together with an analysis of the
recommendations of European countries on the subject, was
released this week by the Federal Communications Commission.
Overriding the arguments of several European countries
for a reduction in the 10-kilocycle standard of separation, the
U. S. engineers insist that this standard be retained as a
minimum for stations operating on adjacent channels below
12,000 kc. and that 12 to 15 kc. be the standard separation
above 12,000 kc.
"A reduction of this separation will impair the
reception as is quite evident from the reception of many sta¬
tions throughout the world operating at less than the 10 kc.
separation", the report states.
This over-crowding of foreign stations has become
more noticeable to American listeners with the growth in
popularity of the all-wave receiver. Listeners find that cer¬
tain channels are so loaded with stations at times that satis¬
factory reception is impossible.
Another cause of this over-lapping, whicn will be
attacked at the Bucharest and Cairo conferences by European
countries, is the unauthorized use of short-wave channels by
small countries, most of them Latin American.
The U. S. report on the frequency separation problem
states, in part;
"The frequency separation required between two broad¬
cast stations to prevent interference is dependent upon three
main factors, namely:
"(1) The width of the frequency band necessary to
transmit programs of the required fidelity;
2
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3/9/37
"(2) The selectivity and audio frequency reproduction
characteristics of the receiver, and
"(3) The field intensity of the stations at all
points of reception.
"When it is desired to place stations on adjacent
channels with the same primary service area, to accomplish the
transmission and reception of audio frequencies up to 7500
cycles, it is necessary that stations be separated by at least
20 kc.
"By maintaining stations with adequate geographical
separation, transmission and reception of audio frequencies up
to 7500 cycles may be accomplished in the primary service area
of each station with a frequency separation of less than 20 kc.
"Ten kilocycles is a reasonable frequency separation
for transmission and reception of audio frequencies up to 7500
cycles in the primary service area and reception of audio fre¬
quencies up to 5000 cycles in the secondary service area, pro¬
vided sufficient geographical separation is maintained, depending
on the ground conductivity, operating frequency and power, that
the ground-wave field intensity of the undesired station does
not exceed approximately one-half the field intensity of the
desired station at the outer edge of the primary service area;
"Ten kilocycles should be fixed as the minimum separa¬
tion between high frequency broadcast stations. "
The report points out that the French administration
suggests the separation between stations should be theoretically
15 kilocycles but as a practical matter this separation cannot
be obtained. High frequency broadcast stations should be given
as far as possible a separation greater than 9 kilocycles, it
stated.
The British administration agrees with the French view
and further states that owing to the particular conditions
existing in Europe an undesirable compromise of 9 or even 8
kilocycles separation has had to be accepted. For the high
frequency stations 10 kilocycle separations should be fixed as
the minimum, it added.
The Ministry of Posts and Telegraphs of the Republic
of Czechoslovakia propose that each country be assigned a
"privileged station" of hi&h power and 20 kilocycles separated
from stations on adjacent channels. These stations would be
equipped to transmit high quality programs and meet other techni¬
cal requirements. It is further proposed that other stations
be required to limit the modulation frequencies by a filter to
a value of 3000 to 3500 cycles per second to facilitate distant
reception. All receivers to accommodate these stations and the
privileged stations would necessarily require variable selectiv¬
ity controls.
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The U.S.S.R. administration points out that the
band-pass of the receiver must be wider than the actual audio
frequencies to be reproduced to take account of the transitory
phenomena which occur in the receiver.
The International Broadcasting Union present views
substantially in agreement with the French and British admin¬
istrations.
XXXXXXXXX
N. Y. LIQUOR AUTHORITY TO USE RADIO IN TEMPERANCE DPIVE
Although the advertising of liquor on the air has been
discontinued generally, the New York State Liquor Authority is
preparing to go on the air in a camoaign for temperance, accord¬
ing to its annual report.
A series of transcriptions for broadcasting is being
prepared and will be distributed to radio stations throughout
the State.
This effort to encourage sensible restraint in drink¬
ing is said by the Authority to be in accordance with the pro¬
vision of the law that says, "It is necessary to regulate and
control the manufacture, sale and distribution of alcoholic
beverages for the purpose of fostering and promoting temperance."
This phase of the Authority's activity is under the
supervision of Mrs. John S. Sheppard, one of the members.
Mrs. Sheppard said that each record would contain a
five-minute talk on the promotion of temperance. The first
series of six records will be ready for distribution by the end
of the month.
XXXXXXXXXX
CBS FEBRUARY BILLINGS UP 18.6/ OVER 1936
Time sales on the Columbia network for February, 1937,
totalled $2,264,317, an increase of 18.6/ over the same month
in 1936, previously the highest February in CBS history.
Cumulative billings for the first two months of 1937
totalled $4,642,937, 21.9/ over the corresponding period last
year.
XXXXXXXXX. X
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3/9/37
OLD SOL PROMISES MORE TROUBLE ON SHORT- WAVES
Old Sol, who is probably the most disturbing influ¬
ence in short-wave radio communication, is planning some tricks
which will be worse than those he has tried in recent months,
according to astronomers at the Carnegie Institution's Mount
Wilson Observatory, Pasadena, California.
These astronomers predict, according to the Associated
Press, that the sun is experiencing or about to experience its
most violent eruptions since the turn of the century.
Sun spots are increasing steadily, both in number
and size. In recent weeks there was one into which forty
planets the size of the earth could have been tossed - that is,
it would have taken that many to cover the spot's surface.
Within the past eighteen months more than forty
short-wave radio fadeouts have been observed to coincide with
"cromospheric eruptions in the neighborhood of sun-spots and
magnetic disturbances” on earth.
"The effect consists of a sudden and comolete dis¬
appearance for 15 to 30 minutes of all high-frequency radio
transmission over the half of the earth lighted by the sun”,
said R. E. Richardson, astronomer at the Mount Wilson Observatory,
Dr. Seth B. Nicholson stated:
"Sun spot activity during 1936 was greater than at the
last maximum reached in 1929. The mean number of spots observed
daily in December was 11.2 exceeded in only one month of the
last cycle, December, 1929, in which the daily average was 11.4.”
The spots now are running slightly above the December,
1929, average.
"The next maximum is not expected to occur before the
end of 1937 and the present cycle", Dr. Nicholson continued.
XXXXXXXX
NBC'S FEBRUARY REVENUE 21 % UP OVER YEAR AGO
The network revenue of the National Broadcasting
Company for February, 1937, climbed 21, 4$ over the correspond¬
ing month last year - the total of $3,295,782, making the month
the largest February in the history of the company.
The January- February total for 1937 - $6,837,781 -
puts it 26,7^ ahead of the first two months of 1936. Individual
NBC network figures for February, 1937, give the Blue Network
$1,021,809, and the Red Network $2,273,973.
XXXXXXXXXX
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3/9/37
DALY REINTRODUCES BILL TO PROTECT RADIO MUSICIANS
All erstwhile controversial bills on copyright appear¬
ed to be before Congress again last week when Representative
Caly (D, ), of Pennsylvania, reintroduced his bill to protect
the compositions of musical conductors from unauthorized use
on the radio or in motion pictures.
The bill includes again the $250 damage fee clause that
was attacked by broadcasters last year at cooyright hearings.
The clause is not in the Duffy bill, also before Congress. No
hearings have been scheduled this year on the copyright bills,
xxxxxxxxxx
STANDARDS BUREAU DEVELOPS NEW RADIO METEOROGRAPH
A radio-meteorograph system has been developed in the
Bureau's Radio Section for use in the meteorological service of
the U. S. Navy Department. It is expected that this system
will eventually replace airplanes in gathering information on
upper-air conditions required for weather forecasting.
The complete radio-meteorograpn system comprises
transmitting equipment for sending down from small unmanned
balloons meteorological observations on upper-air pressure,
temperature, and humidity; receiving and recording equipment
on the ground for automatically plotting these data in the
graphical form desired by meteorologists; and direction finders
(also at the ground station) for tracking the flight of the
balloon so as to determine upper-air wind conditions.
The instrument, sent aloft on a 5-foot balloon con¬
sists of a miniature radio transmitting set, batteries, and a
meteorograph. The latter contains the devices for measuring
pressure, temperature, humidity, and other elements desired. The
complete equipment is housed in a balsa-wood box 6 by 6 by 41-
inches and weighs less than 2 pounds.
The meteorograph utilizes the decrease in atmosoheric
pressure as the balloon rises, for moving a small switch-arm
over a set of electrical contacts separated by insulating strios.
The contacts are so spaced that for a decrease in air-pressure
equivalent to a few hundred feet rise of the balloon, the arm
will move from one contact to the next. 'The arm on reaching
selected contacts causes the radio transmitter to send down
signals having pre-determined audio notes which provide index
marks for the pressure scale.
6
The contacts intermediate to the pressure-index con¬
tacts are wired to a resistor which is controlled by a bundle
of human hair and hence varies as the hairs contact or expand
with varying humidity conditions. The switch-arm, in oassing
over these contacts, switches the transmitter circuit so as to
send down signals having an audio note which is nronortional to
the value of the resistor and hence to the humidity encountered.
When the switch-arm passes over the insulating strips lying
between the contacts, the frequency of the audio note is deter¬
mined by the electrical resistance of a small glass tube filled
with sulphuric acid. The resistance of this small column of
acid changes markedly with the temperature so that the note which
is sent down to the ground may be interpreted to evaluate the
air temperatures at the various balloon heights. In one form
of the balloon instrument, light intensity may also be measured,
giving data valuable in determining the heights and vertical
structure of cloud formations.
Automatic receiving and recording equipment are
employed to plot these data graphically on a chart which moves
under a pen controlled by the received signals. The pen sets
itself according to the pitch of the audio note. The final
record gives a complete picture of the variation of tempera¬
ture, humidity, and any other elements included, as a function
of height above the earth's surface.
The radio meteorograph has several important advan¬
tages over other arrangements, because the air pressure does
the switching. No rotating parts of external motive power are
required. The instrument thus becomes simple to construct and
low in cost. The latter is essential if the radio meteorograph
is to replace the use of airplanes In this service.
XXXXXXXXXXX
MOTOR CARS INTERFERE WITH TELEVISION, BBC FINDS
The hope that means will soon be found to ensure that
all motor cars are fitted with suppressors in order to prevent
interference with the reception of television programs was
expressed recently by Sir Noel Ashbridge, Chief Engineer of the
British Broadcasting Corpora.tion. He said that electrical
interference caused by spurious radiations from the ignition
systems of motor cars had long been known to exist, but that
the extent of the interference which might be caused had been
difficult to estimate.
Since the introduction of television, the effect of
such interference has been found to be somewhat serious when
the reception of television signals was undertaken at distances
of more than four or fives milesfrom the transmitting station,
becoming, of course, more so as the distance increased. The
effect of a single motor car, however, was confined to a small
area, so that even at distances of 20 or 25 miles from the
transmitter, interference was only obtrusive when a car was
actually opposite a house where a television program was being
received. Reasonably simple means existed for the prevention
of these parasitic radiations, Sir Noel said, and it was to be
hoped that means would soon be found for ensuring that all
motors were fitted with suitable suppressors,
XXXXXXXXXX
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U. S. SHORT-WAVE SERVICE SOON WILL EQUAL EUROPEAN
"A friend of mine, back from London, was much surprised
that our American short-wave stations - which he felt ranked in
power and equipment with almost any in the world - should so
often reach European shores with volume and quality that was
not flattering to the American broadcasting technique”, writes
'•CK M.L,r in World- Radio.
"He has been a constant listener during the past two
years to the remarkable short-wave signals of Daventry, also to
those from Zeesen, Germany and a number of the other Continental
stations and he was aware of the fact that in the "KW" column of
the official list they stood no mightier than W3XAL, W8XK, W2XAP ,
W2XAD and other Americans, which broadcast with as much as 40 KW
in their aerials,
"Yet, after listening in London to the American sta¬
tions, he soon concluded - and from my own corre spondence and
observations I feel much the same - that European listeners have
not been favored with reception from the United States as good
as that which American listeners experience from the other side.
Here in Eastern America, Daventry, Zeesen, Rome, and a few more,
are audible day after day with a signal quality that, except for
occasional short-wave 'flutter* or 'shifting1, often rivals home
broadcasting stations. Listeners select the oversea orograms
from newspapers in advance, along with their selection of the
local transmissions, and change from one to another with the ease
and nonchalance that assures international radio of its estab¬
lished success.
"The Americas have become the world's Mecca for the
short-wave listener; and it is all the result of the modern and
tremendously effective ideb with which the Europeans got off at
the start, namely, directional broadcasting. Focused, as it were,
upon the American home aerial, these 'beamed' programs of Europe
must be given almost full credit for ensuring "the pooularity of
the all-wave set on this side and the unprecedented sales of such
receivers now taking place.
"European nations, for the puroose of continuing and
enriching home ties abroad and for nationalistic reasons, had
very strong incentives for so developing their short-wave
broadcasting; and American listeners in general feel just as
grateful for the wonderful service as do Empire listeners or
those whose homeland and friends are overseas.
"The United States, on the other hand, had in the in¬
auguration of short-wave broadcasting no such natural incentive.
Consequently, in keeping with technical progress, they built
short-wave transmitters - and powerful ones - but they aid not
adopt directional broadcasting aerials and have used for regular
program relays, with very few exceptions, the omnidirectional
type instead. This, I think, explains quite fully the infer¬
iority of American short-wave reception in Europe (and else¬
where) compared to that of European reception in the Americas
- 8-
~4.
"This is an inferiority which American broadcasters,
indications now definitely show, are no longer willing to toler¬
ate, and within a very short time listeners in England and
Europe generally are going to be favored with exactly the same
type of up-to-date directional broadcasts from America that
Americans now get from Europe. "
XXXXXXXXXX
: : : : TRADE NOTES U i t
The Indian Government has recently placed a contract
with Philips Radio for the supply of four 10-XW short-wave
transmitting stations for the A-l-India Radio organization.
Alleging use of unfair methods of competition in the
sale of a medicinal compound designated "Eucathol", a complaint
has been issued by the Federal Trade Commission against The
Eucathol Co., Inc., Shawnee, Okla. 'Ehe resoondent corooration
advertises over the radio and in newspapers, magazines and
other printed matter, and allegedly represents, exDressly or
by implication, that use of Eucathol will prevent and cure, or
is beneficial in the treatment of insect bites, sunburn, asthma
and hay fever, catarrh, colds, scalds and burns, skin disorders,
influenza and pneumonia, ana other ailments.
A favorable report on the application of the Central
States Broadcasting Company, Council Bluffs, la., for a construc¬
tion permit to build and operate a broadcasting station on
1500 kc. , with 100 watts power, unlimited time, was filed with
the Federal Communications Commission this week by Examiner
Melvin H. Dalberg.
U. 3. radio radio apparatus exports increased more
than $500,000 in one month compared to last year, according to
the Commerce Department's Division of Foreign Trade Statistics.
January exports of $2,584,000 were reported as compared to
$2,040,000 for January, 1936.
The Columbia Broadcasting System has announced the 101st
station to join its network, WCOC, Meridian, Miss., which is
the last station and will join CBS on iviay 2nd or sooner. The
station is owned by D. W. Gavin and operates under the name of
the Mississippi Broadcasting Co. WCOC has a license for 1,000
watts daytime, 500 watts at night and is located on the 880 kc.
band.
XXXXXXXXXX
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3/9/37
BEHN, BACK FROM SPAIN, SAYS LOSSES HEAVY
Col. Sosthenes Behn, President of the International
Telephone and Telegraph Company, who was in Spain during the
first five months of the civil war, returned to New York Monday
from Paris. He said that the thirteen- Story tel^nhone buildin g
in Madrid gave sanctuary at times to as many as 600 women and
children.
"The whole staff of the company lived in our build¬
ing", he explained, "which was penetrated thirty times by
shell-fire. It was well supplied with provisions and water.!’
"The Spanish Telephone Company, which is a subsid¬
iary of the International", he said, "is still carrying on,
operating its local services in Madrid, Valencia and Barcelona
and keeping the international lines open. "
The damage to property and loss in revenues, Colonel
Behn said, were difficult to estimate, but he thought they
"would run into the millions of dollars. "
xxxxxxxxx
CBS DECLARES DIVIDEND; GOING- ON EXCHANGE
The Board of Directors of the Columbia Broadcasting
System last week declared a quarterly cash dividend of $.50
a share payable on March 26th to stockholders of record at
the close of business on March 17th.
The Board decided to apply to the New York Stock
Exchange for the listing of the company’s stock, since the
company now has nearly five thousand stockholders and the
number is rapidly increasing. Recommendation was made that
the stockholders at a. meeting on March 24th authorize an
increase in the number of shares of the corooretion' s stock
so that the stock may be solit two for one.
XXXXXXXXXXX
MUTUAL FEBRUARY BILLINGS TOTAL $202,088.36
A 32.8 % increase in time billings is reported for
the Mutual Broadcasting System for the month of February, 1937,
in comparison with the same month's figures in 1936.
The total billings for February, 1937, were $202,088.36.
For the same month in 1936, they were $152,063.68. The cumula¬
tive billings for 1937 to date total $389,450.09.
xxxxxxxx
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3/9/37
LAWRENCE SAYS NETS' POLICY FAVORABLE TO COURT t
David Lawrence, newspaper commentator, this week charg¬
ed in one of his syndicated columns that the broadcasting net¬
works are following a policy which gives an advantage to
advocates of the President’s plan to alter the Supreme Court,
He said, in part:
"The three principal broadcasting companies, which
enjoy practically a monopoly of network broadcasting in America,
have been following a policy which, in effect, gives President
Roosevelt and his administration a decided edge in the presenta¬
tion of controversial questions to the radio audience.
"Senator Wheeler, Democrat, Chairman of the Inter¬
state Commerce Committee of the United States Senate, tried
unsuccessfully a fortnight ago to secure an alteration of this
policy, but failed. Within the last 24 hours he has renewed
his efforts by requesting that the opponents in Congress of the
President's plan to enlarge the Supreme Court be granted radio
facilities of an identical character with those given by all
three broadcasting companies, both to the President and to
Attorney General Cummings .
"Failure on the part of the broadcasting companies
to arrange for a rebuttal and to announce in advance that there
will be the same facilities granted, results in one side of the
story being heard by a large part of the audience. For it is
known that the same audiences do not listen every night."
xxxxxxxxxx
NBC JOINS EXPEDITION TO PACIFIC ISLE
Announcers, engineers and approximately four tons of
broadcasting equipment will begin a 7,000 mile journey next month
to the mid-Pacific for a fifteen-minute broadcast on Tuesday,
June 8, of a total eclipse of the sun.
The exclusive NBC broadcast w&s arranged in connection
with the National Geographic Society - U. 3. Navy Eclipse
Expedition of 1937 to Enderbury Island in the Pacific Ocean. This
island is one of only two tiny bits of lane, in the entire path
of the eclipse, extending for 5,000 miles across the Pacific,
from which satisfactory observations of the spectacle can be mane.
Participating with the National Broadcasting Company,
the National Geographic Society and the Navy in the expedition
will be the National Bureau of Standards ana the astronomical
observatories of several universities.
XXXXXXXXXX
- 11 -
3/9/37
MUTUAL NETWORK TO ADD 10 MORE STATIONS
Ten more stations will be added to the Mutual Broad¬
casting System1 s coast-to-coast chain within the next five
weeks.
On April 1st the Oklahoma network, comprising eight
stations, will be linked with Mutual through permanent lines.
The stations include KTOK (KPFG), Oklahoma City; KCRC , Enid;
KGFF, Shawnee; KBIX, Muskogee; KADA, Ada; KV50, Ardmore; WBBZ,
Ponca City, and KASA, Elk City, which will insure complete
coverage of the entire State of Oklahoma. The Oklahoma network
was represented in the negotiations by its president, c. U.
Porter, of Shawnee, Harold V. Hough, President of KTOK, and
Glenn Condon, General Manager of the network.
About April 15th, two Texas stations will be added
for permanent service. The stations are KTAT, 1,000-watt m0rt
Worth station, operated by the Tarrant Broadcasting Comoany,
whose President is Raymond E. Buck, and the municipally owned
station of Dallas, Texas, 500-watt WRR. The Managing Director of
WRR is John Thorwald.
The new additions will be known as the South West
section of the Mutual Broadcasting System.
XXXXXXXXXX
RADIO PROVIDES 95,500,000 FAMILY-HOURS OF LISTENING DAILY
American broadcasters provide 95,500,000 family-hours
of listening each day, according to statistics from Dr. Daniel
Starch, determined by a series of nationwide audience studies
sponsored by the Columoia Broadcasting System.
Dr. Starch and his staff of more than 300 field
investigators have spent the last three and a half years in
obtaining more than 165,000 personal interviews with typical
American families in all income groups, all sections of the
country and all types of communities in order to get an undis¬
torted report on the entire radio audience.
The number of radio-owning families in the United
States now totals 24,500,000. Dr Starch's investigators found
that 76.4 percent of these, or 18,713,000 families tune in at
some time every day. It was further determined that the aver¬
age family listens to its radio for 5.1 hours caily. Multiply¬
ing the number of families who listen each day by the average
number of hours they listen resulted in the grand total of
95,461,800 family-hours of listening every day.
XXXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication 1
LEGAL L-v PART. Vi ENT
I [5 1 ® I fl W i In]
■JU MAR l.'i in.v M
1
fa
1 0 130;
F fJ
INDEX TO ISSUE OF MARCH 12, 1937
Payne Initiates "Lobby" Probe As Connery Gets Hearing . 2
Prall Reappointed Chairman of FCC For One Year . .4
January Radio Advertising Takes Seasonal Drop . 4
Rule Governing Police Service Is Amended. . 4
Two Auto Alarms For Ships Approved By The FCC. . . 5
New Deal G-iven $25,000 By Broadcasters In Campaign . 6
Shannon Allen Given WPA Radio Post. . 7
Soviets Plan Three Television Stations . . . 7
Frequency Monitor Pule Postponed Six Months . 7
Mass Education Via Radio Plan Of Egypt . 8
BBC Engineer Sees Television Obstacle Fading . . . 8
Trade Notes . 9
Food-Drugs Bill Passes Senate, Faces Trouble In House . 10
Zenith Operating Profits Rise For Nine Months . 10
NBC Shows Role Of Radio In Vast Rural Markets . 11
RCA Blames Hoffman For "Bad Judgment" In Strike . 12
No. 1011
PAYNE INITIATES "LOBBY11 PROBE AS CONNERY GETS HEARING
Under the sponsorship of George Henry Payne, the
federal Communications Commission this week initiated a new
inquiry that may delve into some of the charges of "radio lobby¬
ing" as the House Rules Committee opened hearings on the Connery
resolution calling for a general broadcasting investigation by
by Congress.
The FCC probe is directed at a single Washington
attorney, who is alleged to have disregarded FCC rules of pro¬
cedure by inserting affidavit copies in a Commission docket file.
The Commission had already acted on the case, transferring an aid
in the docket section and reprimanding the lawyer, George S.
Smith, of Washington, when Commissioner Payne returned from a
period of illness.
Commissioner Payne, who has frequently assailed what
he terms "the Washington radio lobby", insisted that the FCC
action was not severe enough and demanded that the inquiry be
reopened. The FCC then designated him Chairman of a special
investigating Committee. The other members are Commissioners
Irvin Stewart and Thad Brown.
While the Committee was directed to investigate the
Smith case, it is not unlikely that Commissioner Payne will find
a way to extend his inquiry into general practices of radio
attorneys before the Commission.
Representative Connery, Chairman of the House Labor
Committee, opened the hearing before the Rules Committee in
behalf of his resolution calling for a broad investigation of
radio broadcasting.
Next Tuesday his State colleague, though a. Republican,
Representative Wiggle sworth, will also appear before the Pules
Committee In support of the resolution.
The question of whether the resolution will ever be
reported out by the Rules Committee is still uncertain, and it
appears that there is a great c.ea.1 of trading going on among
members interested in this and other resolutions pigeon-holed
by the Committee.
Alrea.dy stripped of direct reference to the Federal
Communications Commission, reputedly done at the suggestion of
- 2 -
3/12/37
members of the Rules Committee, the Connery resolution provides
for the establishment of a committee of seven members of the
House to be named by the Speaker. Representative Connery
presumably would be Chairman.
The resolution authorizes the Committee Ho inquire
into and investigate the allegations and charges that have been
or may be made relative to irregularities in or pertaining to
the monopoly which exists in radio and tne activities and func¬
tions carried on under the Communications Act of 1934 and all
matters pertaining to radio and radio broadcasting. "
The Smith case started in a row between attorneys
in a Johnson City, Tenn. , application for a new stations. Mr.
Smith, who was formerly a legal aid of the Commission, allegedly
sent 15 affidavits to Johnson City for signatures. Ten of them
were returned signed and five unsigned within the period allowed.
When the hearing began before an Examiner, however,
five copies of the unsigned affidavits were in the FCC docket
files with signatures. John S. Brady, the opposing lawyer,
consequently demanded that all the affidavits be rejected and
the Examiner sustained him. Mr. Smith allegedly admitted plac¬
ing the five affidavit copies in the FCC files with the aid of
Miss Mary Belle Anthony, Chief of the Docket Section.
The Commission named a committee comoosed of George B.
Porter, Assistant General Counsel; Chief Examiner Davis G.
Arnold; and John B. Reynolds, Acting Secretary, to make an
inquiry. After this group reported, the Commission transferred
Miss Anthony to the Accounting Section, reorganized the Docket
Section, and reprimanded Mr. Smith.
Upon returning to Washington from a New York hospital,
Commissioner Payne asserted that the punishment of Mr. Smith
was not severe enough and charged that he had apparently
"corrupted" the Commission clerk, Miss Anthony.
Commissioner Payne plans to call the first meeting
of the Committee next week.
X X X X X X X X
The number of French listeners is now 3,031,526.
France is third among European countries in the matter of
listeners, the first two being Great Britain and Germany.
Sweden, which follows France, has rather fewer than one million
listeners.
X X X X X X X X X X
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3/12/37
PRALL REAPPOINTED CHAIRMAN OF FCC FOR ONE YEAR
Despite occasional disruptions in the Federal Com¬
munications Commission ana threats of inquiry on Capitol Hill,
Anning 3. Prall, a former Tammany Congressman, is still riding
high with the Administration.
President Roosevelt announced this week that he had
designated Prall Chairman of the Commission for another year.
His previous term expired on March 11th.
xxxxxxxxxx
JANUARY RADIO ADVERTISING TAKES SEASONAL DROP
Total broadcast advertising in January amounted to
$10,369,556, a decrease of 6.7$ from the level of the preceding
month but a 29.1$ increase over gross time sales for the cor¬
responding month of last year, according to the National Associa
tion of Broadcasters. The usual seasonal declines occurred in
all portions of the medium. Compared to last January only
regional networks failed to show a gain, declining 3.3$. The
principal increase was registered in the national non-network
<--ld where advertising rose 42.2$ ever January, 1936.
Although all advertising media experienced the down¬
ward seasonal trend during January, radio broadcasting declined
to the least extent when comoared to December. Advertising in
national magazines declined 26.1$, national farm papers 14.2$,
and newspapers 25.3$.
XXXXXXXXXX
RULE GOVERNING POLICE SERVICE IS AMENDED
The Federal Communications Commission this week amencu
Rule 330a relating to emergency service, to read as follows:
’’Rule 330a. In the event that the amount of power
allocated above is insufficient to afford reliable coverage
over the desired service area, the Commission may authorize the
use of additional stations of the same or less power, or upon
proper showing being made, may authorize such additional power
as may be necessary, but not to exceed 500 watts, provided, how¬
ever, that municipal police stations authorizea to serve an
entire county under the provisions of Rule 331, may be licensed
to emoloy a maximum power of 1000 watts between one hour after
local sunrise and one hour before local sunset, on condition
that the applicant files with the application an agreement,
entered into with other licensees operating on the same fre¬
quency and in the same area to which the frequency is assigned,
including a statement giving their consent to the use of such
increased power.
XXXXXXXXXX
4 -
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3/12/37
TWO AUTO ALARMS FOR SHIPS APPROVED BY THE FCC
Sea-going vessels of 5,500 gross tons or over will
be able to use either of two approved automatic alarms as sup¬
plementary to the services of a qualified radio operator in
order to maintain a continuous watch as the result of action
taken this week by the Federal Communications Commission.
Auto alarms designed and manufactured by the Radio
Corporation of America (Model AR-8600) and the Mackay Radio &
Telegraph Company (Type 101- A) were approved providing certain
minor conditions are met, at a meeting of the ?CC Telegraph
Division on Wednesday.
The International Convention for Safety of Life at
Sea, London, 1929, which was ratified by the United States,
effective November 7, 1936, orovides (Article 29) that each
ship required to be fitted with a radiotelegraph installation
shall carry a qualified radio operator. Certain shies are
further required under Article 29 of theConvention to maintain
continuous watches by means of qualified operators, "if not
fitted with an automatic alarm". It follows under this langu¬
age that such a ship, if fitted with an automatic alarm meet¬
ing the provisions of the Convention, is exempt from the require¬
ment of maintaining a continuous watch by qualified operators.
At a meeting en banc, on Wednesday, the Commission
extended the examption from the continuous watch requirement
for a further period from April 7, 1937, to and including
August 6, 1937, subject to the same terras and conditions as
those heretofore in effect and referred to above.
Under the Ship Act of 1910, as amenaed, certain of
the vessels referred to above, being such as carry or are
licensed to carry fifty or more persons (including crew and
passengers or both) and ply 200 miles or more between two ports
or places, are required to carry at least two operators and
maintain a continuous watch. The action of the Commission in
granting exemption under the Safety Convention does not remove
or alter in any way the requirements of the Ship Act with regard
to such vessels.
The FCC and its predecessor, the Federal Radio Com¬
mission, have been studying alarm systems for several years pre¬
paratory to making the provision of the Safety of Life at Sea
Convention effective.
In its reoort approving the RCA and Mackay devices,
the Commission warned:
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"The Commission finds that certain fundamental physi¬
cal limitations are inherent in any automatic alarm device
designed to operate on the type of radio signal prescribed in
the regulations. "
It added, however, after explaining that thorough
"noise tests" had been made by the Bureau of Standards ana
the Coast Guard, that:
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finds can be remedied without affecting the efficiency of the
alarms, the tests disclose without question that the automatic
alarm devices submitted are capable of proper operation within
the prescribed audio and radio frequency band, with the types
of emission specified; that they contain the prescribed test¬
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tivity, and for disconnecting the system from the regular
receiving apparatus, and that they are provided with bells
capable of giving a satisfactory audible alarm in the event
of failure of important units or component parts. "
XXXXXXXXXX
NEW DEAL GIVEN $25,000 BY BROADCASTERS IN CAMPAIGN
Broadcasters and persons associated with the industry
contributed approximately $25,000 to the Democratic National
Committee during the Fall campaign, the Senate Campaign
Expenditures Committee disclosed this week. The list includes
only donors of $500 or more.
Anning S. Brail, Chairman of the Federal Communica¬
tions Commission, contributed $500, while George Henry Payne,
a Progressive Republican, also a Communications Commissioner,
gave his party $1,000, but that also went to Mr. Roosevelt.
Among other contributors to the President’s war
chest were:
Raymond E. Buck, Fort Worth (KTAT) $13,700; Amon
Carter, Dallas, and Forth Worth (WBAP, KGKO) $3,000; Jesse
Jones, Houston (KTRH) , $6,000; Paul Spearman, former FCC Chief
Counsel and currently attorney for regional broadcasters,
$1,000; Alfons B. Lands. , radio lawyer, $520.
Among Republican donors were Powel Crosley, Cincinnati
(WSAI, WLW) , $5,000; and William Randolph Hearst (WINS, WCAE,
KEHE, et el), $50,000.
XXXXXXXXXXXX
6
3/12/37
SHANNON ALLEN GIVEN WPA RADIO POST
Secretary of the Interior Harold L. Ickes, this week
announced the appointment of Shannon Allen as Assistant DirectOx
of the WPA Educational Radio Project in the Office of Education,
U. S. Department of the Interior.
Mr. Allen, who was given a leave of absence as night
manager of the National Broadcasting Company's Washington
division, will assume his new duties as editor of the Educa¬
tional Radio Project's scriot and editorial divisions immed¬
iately, succeeding Leo S. posencrans, who resigned to take a
position with Wilding Motion Pictures, Inc. Mr. Allen brings
with him more than 10 years of radio work training and some
15 years' experience as a newspaperman*
X X X X X X X X X X
SOVIETS PLAIT THREE TELEVISION STATIONS
Three television centres are planned in the Soviet
Republic, according to a report from Radio Centre, Moscow.
On January 19th, the first conference of questions
of television took place in Moscow. The American equipment
for the television centre now under construction in Moscow,
will arrive in April. Equipment for the Leningrad television
centre is being made at Soviet factories. It is planned to
build the third television centre in Kiev.
This year it is proposed for the first time to carry
out television transmission from sport stadiums and squares of
Moscow with the help of special portable television stations.
xxxxxxxx
FREQUENCY MONITOR RULE POSTPONED SIX MONTHS
The Broadcast Division of the Federal Communications
Commission has further extended the working date of Rule 981
for six months from March 15, 1937. This rule requires all
relay, international, television, facsimile, high frequency,
and experimental broadcast stations to have in operation by
September 15, 1936, a frequency monitor. This monitor does not
have to be approved by the Commission but must have an accur¬
acy of one-half the allowed tolerance of the class of station
with which it is to be used. It is believe that sufficient
commercial monitors will be available within six months so
that all stations of this class can be equipped as required.
XX XXXXXXXX
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MASS EDUCATION VIA RADIO PLAN OF EGYPT
A scheme to educate the masses toy radio providing
an expenditure of L. E. 130,000 ($650,000) is now under con¬
sideration by the Egyptian Ministry of Education, according
to U. S. Commercial Attache James T. Scott, Cairo.
This scheme provides for a program of broadcast
talks on topics most closely connected with the life of the
fellsheen (peasants) such as precautions to be taken against
epidemics, advice on keeping "the family in good health, the
best ways of cultivating the land, etc.
As the average peasant has not the means to buy a
radio set, it is reposed to fit up one set in each village
in a public place so that all the peasants can gather to
listen to the talks.
The Ministry of Education hopes to provide every
village in Egypt with a radio set within the next 5 years and
it is expected that a credit of L. E. 36,000 will be opened
in the 1937 budget for carrying out tnis project.
XXXXXXXXXX
BBC ENGINEER SEES TELEVISION OBSTACLE FADING
Sir Noel Ashbridge, Chief Engineer of the British
Broadcasting Corporation, in a recent address to the Royal
Empire Society said that he believed that many of the chief
difficulties that still remained in the technique of television
transmissions would ultimately be removed. He expressed a
belief that it would soon be possible to develop a more sen¬
sitive "electron" camera which would greatly reduce the dif¬
ficulties under which the producer of television programs now
works. With such a camera, he suggested that it would be pos¬
sible to use a telephoto lens in order to televise scens at
some distance, or a microscopic lens for the transmission of
small objects.
While it might be possible to pick up the signals fro
the Alexandra Palace in distant parts of the world under extre¬
mely favorable conditions, Sir Noel said that reception would
be erratic and that the day was still a long way off when it
would be possible to provide a television service from London
to the distant parts of the Empire.
Col. A. 3. Angwin, Deputy Engineer-in-Chief of the
British Post Office, referred to the developments which had
recently taken place in laying co-axial cables between London
and provincial cities. These cables would enable the London
television programs to be broadcast simultaneously by other
television transmitters which might be erected in other parts
of the British Isles as a result of experience gained in the
London area.
XXXXXXXX
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3/12/37
TRADE NOTES
Glenn Van Auken, of Indianapolis, this week was
granted a construction permit for a new broadcasting station
to operate on 1050 kc. with 1 KW power, daytime. The order
is effective May 11th.
Since President Roosevelt proposed his Federal Court
reorganization plan to the Congress early in February, the
National Broadcasting Company has presented, or has scheduled
for presentation, over its two networks, a total of 63 speeches,
33 for and 30 against the proposal.
The Crosley Radio Corporation and Subsidiaries
reports for 1936 a net profit after surtax on undistributed
profits of $1,237,057, equal to $2.27 a share on 545,800 no-
par capital shares. The Company has changed its fiscal year
from March 3ist to December 31st. In the nine months ended
December 31, 1935, the Company showed a consolidated net pro¬
fit of $469,675, or 86 cents each on 545,800 shares.
Station WHA, University of Wisconsin, Madison, is
conducting a short course for "mike-shy" legislators. H. B.
McCarty, Program Director of WHA is in charge of the course,
which includes "Radio Speaking", ,TlJadio Writing", and "Your
Voice in Wax.1 "
Over 225,000 requests were received by the Pontiac
Motor Company in resoonse to an offer made three times only
on Kathryn Carvens' "News Through a Woman's Eyes", broadcast
thrice weekly over a nationwide Columbia Broadcasting System
Network. The offer, an automobile polishing cloth, was men¬
tioned during the programs of February 22, 24 and 26, and it
was required that post-cards or letters in reply be postmarked
sometime during that week.
XXXXXXXXXX
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3/12/37
FOOD- DRUGS BILL PASSES SENATE, FACES TROUBLE IN HOUSE
The much amended Copeland food- drugs- cosmetic bill,
which will govern radio and other forms of advertising of
these products if it becomes a law, passed the Senate this
week and is now in the House. Indications are that it will
face serious opposition there and may undergo some changes.
The bill, which Senator Copeland, Chairmen of the
Committee on Commerce, said had been re-arafted to meet objec¬
tions voiced recently by the President, passed the Senate
unanimously.
The Copeland measure prohibits false advertising,
including advertising by radio, of foods, drugs, therapeutic
devices and cosmetics.
XXXXXXXX
ZENITH OPERATING PROFITS RISE FOR NINE MONTHS
Zenith Radio Corporation reports an operating profit
for the first nine months ended January 31, 193*7, of its cur¬
rent fiscal year amounting to $2,347,987.27 after depreciation,
excise taxes, royalties and liberal reserves but before other
Federal taxes as per the Company's books, according to Hugh
Robertson, Vice-President and treasurer.
This compares with $1,015,966.46 in operating profits
for the nine months ended January 31, 1936.
Shipments for the period were more than double the
same period a year ago.
Shipments of the new line of automobile sets announc¬
ed December 28th have already exceeded by a substantial margin
the total for the entire season a year ago and present demand
indicates that production of these sets will continue well
into the Summer.
The manufacturing department is at present moving
into its new quarters and will shortly start production on a
new line of household models for the coming season. The
offices will be moved early in April.
XXXXXXXXXX
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3/12/57
NBC SHOWS ROLE OF RADIO IN VAST RURAL MARKETS
The National Broadcasting Company has mailed to
advertisers and agencies the results of a thorough study of
radio's influence upon a market of some 60,000,000 persons in
rural areas. Following are some of the highlights of the
report made by Charles Morrow Wilson.
Conclusions are based on an approximate consensus
of opinion expressed in 209 homes visited. The summary also
takes into account the views of 41 representative county
agricultural agents.
1. Radio is the fastest growing medium of farm enter¬
tainment at the present time.
2. On the better type of farm, radio is building for it¬
self a distinctive place in the routine of farm living. It
has substantially moved back farm bedtime.
3. Today, radio has an outstandingly significant place
in the problems of farm youth.
4. The farm appetite for entertainment is pretty uni¬
formity distributed among all age groups.
5. There is no one best type of farm radio program.
Farm interests are broadened to a point where they are gen¬
uinely cosmopolitan.
6. On the other hand, a great many widely known radio
programs are definitely limited of rural appeal and merchandis¬
ing value.
7. Music is definitely the surest bet in valid radio
entertainment for a rural audience.
8. Creation of successful farm radio entertainment is a
field of outstanding challenge.
Following is a summary of voluntary and verbal testi¬
mony offered by 151 farm-catering storekeepers or store managers
in 25 states:
1. Radio is the fastest-growing farm advertising medium.
Its scope of farm penetration is definitely on the upgrade.
2. Radio advertising now provides the most rapid intro¬
duction of new products to a farm buying public.
<3. The prize or premium contests, as broadcast by radio
and other advertising, now have tremendous rural appeal.
4. Radio is proving increasingly powerful in selling
merchandise through the agency of farm children and farm wives.
5. Many more products could be advertised to farmers
over the radio.
6. You can sell more to farmers through persuasion than
through high-pressure sales talks.
XXXXXXXXXX
11
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3/12/37
RCA BLAMES HOFFMAN FOR ,!BAD JUDGMENT" IN STRIKE
Executives of the RCA Manufacturing Co. of Camden,
testified at the opening of an inquiry before the Senate Civil
Liberties Committee Thursday that a letter from Gov. Harold G.
Hoffman of New Jersey was responsible for their "bad judgment"
in hiring a detective agency to combat a strike.
They said that Hoffman's letter of recommendation,
coupled with a persuasive sales talk by a salesman, led them
to engage the Sherwood detective agency to work against the
strike of their employees last June.
E. T. Cunningham, President of RCA, and Robert
Shannon, Vice-President, testified they believed the Sherwood
agency, a New York concern, would be able to suDnly 200 State
detectives to keep order at the Camden plant when violence
and riots started.
Mr. Cunningham testified George Williams, a Sherwood
salesman, brought the letter with him shortly before the strike
of United Radio and Electrical Workers. As sales talk, Mr.
Cunningham asserted, Mr. Williams informed him that combating
strikes by violence was out-of-date.
Instead, the witness told the committee, Williams
proposed to import 25 "missionaries" to go from house to house
as representatives of a "law and order league" and to circulate
propaganda against the union.
After the strike had been in progress for three days,
Shannon testified, riots broke out in the streets and Williams
said he would get State detectives. When Shannon investigated
and learned the "detectives" were recruited in nearby cities,
he said, he cancelled the contract with the agency and ordered
the men to leave.
The company then paid the Manning Industrial Service
Company $150,000 to supply guards.
Records also were submitted at the hearing to show
Radio Corporation of America, of which the Camden corporation
is a subsidiary, paid Hugh S. Johnson, former NRA administrator,
$40,000 for acting as a "consultant" in the dispute.
XXXXXXXX
12
GENERAL LIBRARY
_ _ 'F' IER PLAZA, NEW YORK, {1. Y.
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF MARCH 16, 1937
R£c£iV£D
^n?m?
£ p- « mmEs
Senator King Threatens Probe Of ^adio ^ime In Court Debate . 2
Sykes Celebrates Ten Years Of U. S. ^adio Regulation.. . .4
Pittman Proposes Probe Looking To Congress Broadcasts. . 5
Educational-Commercial Station Request Is Favored . 7
International Radio Congress Closes Parley . 7
Lohr Praises Cheerio For His Unpaid Goodwill Service . 8
Broadcasting Networks Deny Bias In' Court Speakers . 9
FCC Puts Damper On Unauthorized Broadcast Of Ball Games . 9
Short-Wave Rebroadcast Experimenter Dies . . . 10
Trade Notes . 11
WCKY Announces Power Boost In Novel Manner . 12
C.I.O. Plans To Organize All Electrical Industry Employees. ... 12
No. 1012
March 16, 1937.
SENATOR KING THREATENS PROBE OF RADIO TIME IN COURT DEBATE
While the House Rules Committee considered a demand
for a general radio investigation, directed chiefly at chain
broadcasting and "monorolies " , a new threat of Congressional
investigation came from another source.
Senator King (D.), of Utah, a member of the Senate
Judiciary Committee, stated he will introduce a. resolution call¬
ing for an inquiry as whether or not charges that the networks
are favoring Administration spokesmen in the current Supreme
Court debate are true unless he is convinced meanwhile that
there is no basis for the allegations.
The threat comes as an aftermath to complaints from
Senator Wheeler (D. ), of Montana, chief spokesman of the Senate
bloc opposing the President's court reorganization plan=
While network officials are busy gathering data to
defend their contention that both sides are being given equal
opportunity to broadcast their arguments, the belief prevails
in Washington that the controversy, whether or not there is an
investigation, will test the mettle of radio as an impartial
medium of transmitting public information.
Radio came through the November national elections
with flying colors because of its policy of impartiality in the
light of the admitted ant i- Roosevelt prejudices of the majority
of the newspapers. Now many publishers are secretly expressing
delight at the discomf orture of the networks.
Senator King explained that his purpose is to deter¬
mine whether the broadcasting companies are being dominated or
influenced by the Federal Communications Commission or the
Administration in granting greater facilities to Administra tion
spokesmen.
"If they are exercising this brutal power - if they
really have this brutal rower - in this fight, then it is time
for some such investigation" , Sena.tor King said. "In my own
opinion they are discriminating against the opposition. Com¬
plaints are coming in to indicate this, and if I can obtain
some additional facts, I shall introduce such a resolution."
The most important evidence in Senator King's posses¬
sion so far has been furnished by Senator Wheeler, who spoke
against the President's plan in Chicago last Wednesday on what
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3/16/37
he believed then to be a nation-wide broadcast. Ever since
then he has been receiving messages from stations West of
Chicago stating that his speech was not even offered to them
for rebroadcast by NBC and Columbia.
"Both of the big chains said that they would carry
the speech", Senator Wheeler said, "and I learned later that
it was not carried in many centers.
"A Seattle station has informed me that the speech
was not available for the Pacific network because of commercial
commitments. A Salt Lake station sa.ys that it was not even
offered it. Both Denver and Spokane report the same thing.
Columbia did rebroadcast the speech in Montana through two
local stations. "
Senator Wheeler said also that in the East, Columbia
amd the Mutual system cut him off ten minutes before the end of
his speech although they had carried the speech of James M.
Landis, Chairman of the Securities and Exchange Commission,
favoring the President's plan, in full, just before he spoke.
"Mr. Landis used up some of my time", Senator Wheeler
saia, "and I was cut off. "
The Senator would not comment on whether he believed
that he was deliberately discriminated against nor would he
discuss the question of possible administration control over
"free discussion" on the air.
Actually, there is no law that would require the net¬
works to give equal time to spokesmen for and against the
President's Court plan, but it is obvious that the broadcasters
would not engage in any policy knowingly that would antagonize
a number of influential Senators.
Consequently, it is believed that the networks will
seek to placate the disgruntled Senators rather than take the
chance of undergoing a Senate inquiry. While such a probe
would not penalize the broadcasters directly, it might well re¬
sult in the passage of legislation that would require all sta¬
tions to give equal time to both parties in oublic debate as
is now required for political candidates.
A bill, introduced by Beoresentative Scott (D.), of
California, seeking such a requirement, is now pending in the
House. Complaints such as that of Senators King and Wheeler
might well be the lever that would dislodge it and turn it
into law.
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3/16/37
SYKES CELEBRATES TEN YEARS OF U, S. RADIO REGULATION
Judge Eugene 0. Sykes on Monday, March 15th, received
the congratulations of his colleagues and leaders in the
broadcasting industry for attaining his tenth year in a posi¬
tion of Federal radio regulation.
Ten years ago the Federal Radio Commission took over
the job of controlling the still-new industry of radio broad¬
casting. While a rather insignificant body of five Commis¬
sioners with little money or organization, the Commission
faced a gigantic task of bringing order out of chaos as directed
by the Radio Act of 1927.
Then under the wing, though not the direction, of
the Secretary of Commerce, Herbert Hoover, the Commission had
only a score of employees ana an appointment for a year. Toaay
it has 650 employees, spacious quarters, and a $1,600,000
annual appropriation. Oddly enough, however, a move is already
under way in the Administration to return it to the Commerce
Department in the President's reorganization plan.
The original Commission was created February 23,
1927, but did not begin functioning until March 15th. The
late Admiral W. G.H, Bullard was named first Chairman, but as
he was in China at the time, Judge Sykes acted in his place
at the organization meeting. Today he still is Chairman of
the Broadcast Division of the FCC.
There were 735 stations operating on U, 3. channels
when the Commission tackled the job of regulation which the
Department of Commerce found too big for it. It took the Com¬
mission two years to eliminate 125 stations, but a mass of
litigation and obstacles arose.
It was in 1930 that the federal ^adio Commission was
made a permanent agency, but in 1934 it was suoerseded by
the present Federal Communications Commission.
xxxxxxxxxx
The $250,000 suit of Municipal Court Justice Nathan
Sweedler in New York against the National Broadcasting Company
and other defendants for using the term "Good Will Court" in
a radio program was dismissed March 9 by Supreme Court Justice
Steinbrink in Brooklyn, Sweedler contended that he had incor¬
porated the name for a non-profit organization in Brooklyn
where people could go for free advice. The court held that the
term was not a new one and that Sweedler had not been damaged
by the company's use of the name.
X-X-X-X-X-X-X-X-X-X-X
- 4 -
3/16/37
PITTMAN PROPOSES P^OBE LOOKING- TO CONGRESS BROADCASTS
A resolution directing the Senate Committee on Inter¬
state Commerce to investigate the feasibility of having imoort-
ant proceedings of Congress broadcast directly from the chambers
was introduced Monday by Senator Pittman (D.), of Nevada.
The resolution contemplates the allocation of specific
wavelengths to '’various classes of radio stations'* for the pur¬
pose of broadcasting the proceedings. Broadcasters were at a
loss to explain the meaning of such a phrase at first but assum¬
ed that it means the assignment of time on stations and networks.
Senator Pittman and Senator King (D.), of Utah,
argued over whether the resolution should be referred to the
Interstate Commerce Committee or the Rules Committee but the
Senate finally agreed to allow the former to make the prelim¬
inary inquiry and then to direct the Rules Committee to deter¬
mine the advisability of the move.
Preliminary to introducing the resolution, Sena.tor
Pittman explained its purpose thus:
"It is a Senate resolution authorizing and directing
the Committee on Interstate Commerce, or any duly authorized
subcommittee thereof, to make a full and complete investiga¬
tion of the ad.visa.bility of broadcasting by radio the proceed¬
ings of the Congress uoon matters of public importance and of
having assigned to the various classes of radio stations for
that purpose bands of frequencies or wave lengths. The commit t
is directed to report to the Senate, as soon as practicable, the
results of its investigation, together with its recommendations.
"I wish to call attention to the fact that the resolu¬
tion does not recommend that action be taken by Congress, but
it does require an investigation and report by the Interstate
Commerce Committee of the Senate, which for many years has had
jurisdiction over matters relating to radio.
"I have always opoosed such action by Congress. It
has been informally considered among Senators for quite a while,
but it appears that when such important matters are before
Congress as are now before it, it is advisable to have the
facts relating to such subjects accurately reported to the
country, which is not true in many cases. It is also essential
for our editorial writers to have the facts. As a general
thing, of course, facts are not essential to editorial writers,
but occasionally they assume to quote what they term facts as
the basis of very eruaite discussions.
5
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"For instance, referring particularly to neutrality
legislation, there has been published in the press, from the ■
very beginning of the proposed legislation, the bill as intro¬
duced, and finally the bill as reported; and yet there has been
made, time and time again, the statement that the proposed
legislation grants to the President of the United States the
right to declare an embargo on everything. Of course that is
not true; but that statement having been made time and time
again, editorial articles are based upon the statement. Of
course it has no effect on the Senate - at least it has not
had so far - but it causes voluminous petitions to be drowded
on our committees here, based on an erroneous statement of
facts by persons who are supposed to have sufficient intel¬
ligence to know the facts.
"It seems to me that the question is worthy of con¬
sideration by the Interstate Commerce Committee, whether or
not, in view of the important matters which are before the
Congress of the United States, the people of the country are
entitled to the facts; and I therefore submit the resolution.
"The resolution ( S. Fes. 93) was read, as follows:
"Resolved, That the Committee on Interstate Commerce,
or any duly authorized subcommittee thereof, is authorized and
directed to make a full and complete investigation of the
advisability of broadcasting by radio and nroceedings of the
Congress upon matters of oublic inroortance and of having
assigned tj the various classes of radio stations for that pur¬
pose bands of frequencies of wave lengths. 'The committee shall
report to the Senate as soon as practicable the results of its
investigation, together with its recommendations.
"For the purposes of this resolution the committee,
or any duly authorized subcommittee thereof, is authorized to
hold such hearings, to sit a.nd act at such times and places
during the sessions and recesses of the Senate in the Seventy-
fifth Congress, to employ such clerical and other assistants,
to require by subpena or otherwise the attendance of such wit¬
nesses and the production of such books, papers, and documents,
to administer such oaths, to take such testimony, and to make
such expenditures as it deems advisable. The cost of steno¬
graphic service to report such hearings shall not be in excess
of 25 cents per hundred words. The expenses of the committee,
which shall not exceed $ _ , shall be paid from the con¬
tingent fund of the Senate upon vouchers approved by the
Chairman. "
XXXXXXXXX
6
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3/16/37
EDUCATIONAL- COMMERCIAL STATION REQUEST IS FAVORED
A favorable report was filed with the Federal Com¬
munications Commission this week by Examiner P. W. Sewart on
an application from Lincoln Memorial University (WMLU) , Middlee-
boro , Ky. , for a construction permit to erect and operate a
broadcasting station on 1210 kc. with 100 watts power, unlimited
hours.
While ostensibly proposing an educational station,
the applicant plans to avoid the pitfalls that have eliminated
many educational broadcasters by relying on radio advertising
for a substantial part of its financial support.
Forty-five business men of Middlesboro have already
signed an agreement to support the station, and the tentative
schedule of programs allows for 20% of time to be devoted to
commercial programs as compared with 10% for educational features.
The remainder of the time will be apportioned as follows: music,
50%; religious, 5%; agricultural 5%; civic 5%; and news broad¬
casts 5%.
The one and a half hour daily educational program to
be broadcast from an auxiliary studio at the University will
be supplied by members of the faculty chiefly.
XXXXXXXXXX
INTERNATIONAL RADIO CONGRESS CLOSES PARLEY
After a fortnight during which technical aspects of
wireless were widely discussed, the Interna tional Radio Congre
closed its sessions at Adlon, near Berlin, last week, accordin
to the New York Times.
Radio engineers emphasized the importance of the
technical control committee's work in connection with fair dis¬
tribution of short waves over th^ whole world. A plan has been
approved providing for systematic wave distribution which will
be further worked out at the next conference in Cairo, Egypt,
in 1938.
Considerable attention was given to the possibilities
of eliminating static and improving acoustics. Special committees
worked on television, radio photographs and talking films.
Dr. von Boeckmann, one of "the German delegates, sug¬
gested that authors and other prominent persons be invited to
describe conditions in their own countries. International con¬
certs will be given early in September in Switzerland, in mid-
October in Italy, early in December in Finland, in mid- January
of 1938 in the Netherlands, early in March in Ireland, in mid-
April in Norway and early in June in Yugoslavia.
XXXXXXXXX
- 7 -
w to
LOHR PRAISES CHEERIO FOR HIS UNPAID GOODWILL SERVICE
The guest of honor at the 10th anniversary celebra¬
tion last Saturday, Lenox R. J.ohr, President of the National
Broadcasting Company, declared that the Cheerio orogrem repre¬
sented a decade of effort on the nart of the NBC to render real
service to the listening public. Cheerio had told how the
program had been fostered by M. H, Aylesworth, first NBC presi¬
dent.
"Amid the many programs on the air, necessarily
diversed to meet all tastes", Owen D. Young, Chairman of the
General Electric Company, was quoted as saying, "there stands
out one of such distinction in its universal appeal, in its
simple, unselfish word, that its story deserves to be recorded
as a glorious achievement in radio history."
During the course of his remarks, President Lohr said:
"You have mentioned the need for programs that are
sufficiently diverse to meet all tastes. The management of a
broadcasting company roust function much as the editor of a
journal who, so far as he ca.n ascertain the tastes of his
readers, allots a proportionate amount of white space to meet
their wishes. Our "white space" is "time on the air". We
must analyze the fields covered by commercial interests, through
which all our broadcasting is made possible, and ascertain what
elements remain to be covered during the time which we ourselves
use.
"The intimate and intensely personal Cheerio program
was designed to fulfill the high mission of giving convalescent
invalids and other shut-ins a. good start for the day. As time
went on, it was discovered that the program was not only reach¬
ing its intended field but the shut-ins themselves were proving
an insoiration to countless American homes. For ten years the
National Broadcasting Company has gladly joined with Cheerio in
his unpaid service of goodwill, and, today, we join with his
host of friends and listeners everywhere in wishing him a happy
birthday and in expressing our deep appreciation of his fine
work and character, "
A forerunner to Major Lohr' s speech was the big parade
"in the land of make-believe" headed by the stations from coest-
to-coast, which carry the Cheerio program, supposedly followed
by various groups of listeners, such as the shut-ins, and f ins'll
the performers who have served the Cheerio program so faithfully
for the past ten years, including the engineers and the now
famous canary birds.
Although the fact wps not mentioned during the anniver
sary program, it was learned from another source that "The Story
of Cheerio", recently published in book form by the Garden City
Publishing Company, Garden City, Long Island, New York, had
reached the sale of 23,000 copies.
XXXXXXXXXX
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3/16/37
BROADCASTING NETWORKS DENY BIAS IN COURT SPEAKERS
Spokesmen for the two principal broadcasting net¬
works, the National Broadcasting Company ana the Columbia
Broadcasting System, in New York, denied charges of Senators
that they were favoring the Administration in scheduling speak¬
ers on the President's Court reform following a threat by
Senator King (D. ), of Utah, to ask for a Senate inquiry. The
denials were carried in the New York Times.
The National Broadcasting Company reported more than
seventy speakers in the judiciary discussion, about evenly
divided for and against since February 5th.
Statistics of the Columbia Broadcasting System showed
that more than forty speakers had discussed the pros and cons
of the issue over the WABC hook-up.
Few national Issues, outside of a. political campaign,
have brought so many speakers to the studios in quest of time
at the microphone. Mr. Roosevelt's Victory Dinner speech on
March 4th and his "fireside chat" on "arch 16th increased the
number anxious to take issue or to agree with him. The broad¬
casters asserted that, whenever possible, they tried to furnish
the facilities.
In several instances, the network officials explained,
speakers were cut off the air before concluding their remarks,
but this was because of previous commercial commitments and not
because of any censorship or desire to disagree with the speaker.
In the majority of cases the speakers were aware of the time
limitation, it was stated.
When Senator Burke of Nebraska spoke at Carnegie Hall
on Friday night last at a mass meeting against the President's
plan, he prefaced his speech by warning listeners that time was
limited on the air. He said that he was likely to be cut off
before he finished, but should any one care for a complete copy
of his remarks, he would send it by mail.
xxxxxxxxxx
FCC PUTS DAMPER ON UNAUTHORIZED BROADCAST OF BALL GAMES
On the eve ov another baseball season, the Federal
Communications Commission has turned thumbs down on the un¬
authorized play-by-play broadcasting of professional games.
It has issued a warning to radio stations that such action
will endanger the broadcaster' s license.
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Acting on the complaint of the American League of
Professional Baseball Clubs and certain of its member units
alleging that MAC A, New York, '’pirated1' information on olay-
by-play accounts of American League games, the Broadcast
Division March 1st notified the station that it considered
this practice a violation of the Communications Act. It held
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that the practice would not be countenanced in the future.
XXXXXXXXXX
SHORT-WAVE REBROADCAST EXPERIMENTER DIES
Col. Frank R. Curtis, U.S.A. , retired, Manager of
the Army and Navy Club in Washington, formerly in the Signal
Corps and who lately has devoted considerable time to short¬
wave experiments, died Sunday at Walter Reea Hospital after an
illness of several months. He was 64.
In cooperation with Kurt Sell, Wasnington representa¬
tive of the German Broadcasting Company, Colonel Curtis was
successful in picking up programs by short-wave from Berlin
and furnishing to Station WOL in Washington where they were
rebroadcast to listeners in the National Capital. Colonel
Curtis had a complete short-wave pickup and rebroadcasting
set-up in his home and at the time of his death was making
considerable progress in this work.
A native of Mount Vernon, N. Y. , Colonel Curtis vol¬
unteered for the War with Spain, joining the ^orty- fourth
Infantry in ^ew York as a First Lieutenant. The end of hostil¬
ities found his outfit at Chickamauga. Thereafter he obtained
a commission in the Regular Amy and went to the Philippines,
where he saw considerable action in the insurrection.
Just prior to America's entry into the World War,
Colonel Curtis was detailed to the National Guard Bureau in the
War Department. Once this country got in the war, Colonel
Curtis was detailed to the office of the Chief Signal Officer.
For his services in this office throughout the war he was
awarded the Distinguished Service Medal.
XXXXXXXXXX
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TRADE NOTES
The Federal Communications Commission this week was
ur^ed to grant an application of Isadore G-oldwasser, of Anniston
Ala. , for a construction permit to build and operate a broadcast
ing station on 1420 kc. with 100 watts power, daytime, by
Examiner ^alph L. Walker.
Of the total of all network soonsored mail received
by the National Broadcasting Company in 1936, 68^ was directed
to daytime programs, according to the annual audience mail
analysis prepared by the NBC Statistical Department. Seven of
NBC's leading ten sponsored programs, ranked according to volume
of mail received, were daytime features. There were 5,560,671
responses received by NBC during 1936, not including many mil¬
lions more sent directly to NBC advertisers. This total set
an all-time high.
A favorable report was filed with the Federal Communi¬
cations this week by Examiner ?. W. Seward on the request of
Harold M, Finlay and Eloise Finlay, of La Crande , Ore. , for a
construction permit to operate a broadcasting station on 1420 kc
with 100 watts nighttime and 250 watts daytime, unlimited hours.
This year, Coronation robes are among the star
exhibits of the Fashion Parade at the British Industries Fair.
The Coronation robes of a Viscountess were recently shown for
the benefit of women "viewers" in an afternoon program from the
British Broadcasting Corporation's television station in London.
Several of fashion' s latest developments were seen in this
program.
This week WOR di snatched to more than 2,700 advertis¬
ing agencies and advertisers the first conies of "Of These We
Sing", claimed to be the most comnlete and intensive market data
book published by any one station.
Running to more than 64 pages, measuring 9 x 12 inches
and high-lighted in special nrocess colors, "Of These We Sing",
probes deeply beneath the surface of C-reater New York - the
market WOR serves. WOR expects for "Of These We Sing", a receo-
tion even greater than that accorded "To Market-To Market",
the prize-winning WOP book published during 1936.
XXXXXXXXXX
11
3/16/37
WCKY ANNOUNCES POWER BOOST IN NOVEL MANNER
L. B. Wilson, President of Station WCKY, Covington,
Ky., and the National Broadcasting Company adopted a novel scheme
to advertise the recent increase in power of the station.
Large copies of an RCA radiogram, addressed to the recipient
personally in each instance, were mailed out by R. C. Witmer,
Vice-President in Charge of Sales of NBC, with which WCKY is
affiliated.
The telegram states:
’’Station WCKY, Cincinnati, (Basic Blue Network) has
just announced increase in power from 500 to 1000 watts Stop
L.B. Wilson of WCKY informs us that this will mean more than a
fifty millivolt signal in heart of Cincinnati and will add over
three hundred thousand potential listeners with WCKY’s one-half
millivolt line Stop This is one more evidence of continued
improvements being made in NBC networks and better NBC service
to listeners and advertisers as outlined in book aNow 117
NBC Stations' sent you a few days ago."
XXXXXXXX
C.I.O. PLANS TO ORGANIZE ALL ELECTRICAL INDUSTRY EMPLOYEES
The Committee for Industrial Organization, now engag¬
ed in negotiations with the leading electrical industries, plans
to cover the entire fields of electrical manufacturing and com¬
munications, it was stated in Washington this week. It is
expected that this drive ultimately will include the radio
industries.
The executive board of the United Electrical and Radio
Workers of America, C.I.O. affiliate, has opened collective
bargaining conferences with the General Electric Co. at New York
and plans to seek similar parleys with the Westinghouse Electric
& Manufacturing Co. and the American Telephone & Telegraph Co.
General Electric employs 60,000; Westinghouse, 45,000.
Looking beyond these "big three", William Mitchell,
national representative of the Union, asserted:
"We are going to organize them all. We have organizers
all over the country. "
XXXXXXXXXX
12 -
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GENERAL LIBRARY
Heinl Radio Business ” Letter
toy,
2400 CALIFORNIA STREET WASHINGTON, D.'G^ /
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CONFIDENTIAL — Not for Publication
*o
j93?
INDEX TO ISSUE OF MARCH 19, 1937.
1
^Senator White Supports Move ^or Padio Investigation . 2
Mexico’s 68 Stations Studied At Havana Conference . 5
Paris To Build 30 KW Television Station . 8
Radio Inquiry Believed Certain On Capitol Hill . 8
Officers Named By International Radio Committee . .9
VBayne Initiates Inquiry But Has Nothing To Say . 9
Revised Safety-At-Sea Bill Reported To Senate . . . .10
CBS Earns $4.41 A Share, Report Shows . 10
How Soviet Broadcasting Time Was Apportioned In 1936 . 11
WLW To Use WHN Studio In Reported Negotiation . 12
Aut. Industry Gave NBC 15. 8$ Of Total 1936 Revenue . 12
R Cesar Saerchinger Resigns As CBS European Director . 12
Germany Forced To Dump Excess Radio Receivers . 12
No. 1013
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SENATOR WHITE SUPPORTS MOVE FOR RADIO INVESTIGATION
Tlie first endorsement of the move in the House of
Representatives for a broad radio broadcasting inquiry came this
week from Senator Wallace White ( R. ) , of Maine, co-author of the
1927 Radio Act, and one of the veteran radio legislators in
Congress.
After making a prolonged review of radio legislation
and the purpose of Congress in enacting the original radio
regulatory law, Senator White said:
"Mr. President, I join in the hope which has been
expressed by others that there may be an investigation of this
entire subject matter. "
Senator White criticized the Federal Communications
Commission for yielding to political pressure, for allegedly
disregarding the recommendations of its own engineers, and for
ignoring the demand of one of its own members that the Broad¬
cast Division investigate the feasibility of adopting special
regulations for chain broadcasting.
Citing the growth of the networks in recent years,
Senator White pointed out that NBC and CBS control the major
clear-channel and high-power stations in the country.
"Now this control of this number of stations operat¬
ing on clear channels with 50-kilowatt power means that two
organizations, with headquarters in New York, determine the
character of information going to a substantial part of the
people of this country, both urban and rural", he continued.
"With the exception of about 3 stations, all of the 26 mentioned
by me have been acquired under the authority of the Commission
since 1927. The process of centralized control is going on.
The independent stations are becoming relatively, if not
actually, fewer. Is the Congress interested in the process?
If it is, I again urge that it investigate and study the facts
and the implications thereof.
"The Congress at the time the 1927 Act was passed,
while, perhaps, not fully appreciating the growth of the chain
system, did recognize the possibilities of the situation and
wrote into this early act "the authority to make special regula¬
tions applicable to radio stations engaged in chain broadcast¬
ing. This provision was continued in the 1934 Act. The regu¬
lating body has seemed indifferent to the problem or without
definite views concerning it.
2
3/19/37
'* In November 1935 one of the Commissioners - and I
do not get the information from him - presented a motion in a
meeting of the Commission directing the Broadcast Division to
report to the Commission: (a) Whether, in its opinion, the
Commission should adopt special regulations for the regulation
of chain broadcasting; and (b) in the event that the adoption
of such special regulation is believed by that division to be
desirable, the proposed text of such regulations.
"This motion was referred to the Broadcast Division
for consideration and report. There has been no report. Noth¬
ing appears to indicate that the problem has been considered,
notwithstanding its overwhelming importance.
"I do not want to reflect unwarrantably upon any mem¬
ber of this Commission. In past years I have given much atten¬
tion to the problems presented and have some appreciation of
the difficulties inherent in the situation. I feel justified,
however, in general comments on the Commission’s work.
"In the first instance, every Senator knows, that the
air is full of reports that cases have been decided not alone
on the evidence presented and the merits of the issiie, but that
political pressure has been often exerted, and that it has been
determinative in many instances. There is, I believe, a public
impression that applicants before the Commission should and must
seek political aid. The Commission ought not to be subjected to
such influences. Its decisions ought not to be under suspicion
to the extent they now are because this or the other person of
political power has intervened. I know of no more certain means
of reestablishing the Commission in public respect than to turn
on the light of publicity and thereby to stop these attempts to
improperly influence a quasi- judicial and regulatory body of the
Government.
"There is .persistent report that the Commission, in
.the consideration of cases and in the determination thereof, dis¬
regards its own procedural rules and its established engineering
standards. Is this true? If there is justification for the
belief, what is the justification for the Commission's acts?
"There is a greater volume and persistence of criticism
of this Commission than of any other bureau or commission of the
Government. Is there warrant for this? I think the Congress
should free the Commission from unjustified suspicion or it
should act if its policies and purposes and the standards which
ought to guide a regulatory body of the public importance of
this Commission are being disregarded. Only a searching inquiry
will give the answer to these questions.
,rScientists tell us we are on the threshold of great
events in radio. New bands are to be available in what are
termed the "ultra high frequencies. " The practical use of tele¬
vision is believed to be at hand. The oossibilities of the
3
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3/19/37
future are beyond our knowledge. It is certain that govern¬
mental regulation cannot be dispensed with. Regulation must
be dictated by sound principles, so far as these are known,
and by a booy whose acts shall be guided by a sense of public
responsibility and by an independence which is deaf to every
political and other unworthy suggestion. "
Senator White contended that the authors of the 1927
Act sought to guard against monopolistic control of radio com¬
munication facilities. Three principal evils, he said, were
aimed at in the law.
"Of first importance", he said, "is the principle
that the licensing of a station and of the right to use a
designated frequency therein should not create a vested right
in the license or in the frequency. "
He then called attention to the profits of broad¬
casting and particularly to the sale prices of stations as
disclosed by recent Senate and House appropriations hearings.
"Such figures", he added, "suggest that an inquiry
should be made into the radio industry in order that the
Congress may have complete knowledge as to the investment in
radio stations and their equipment; as to profits; as to the
real considerations for the sale, assignment, and leasing of
stations; as to whether licensees are receiving huge sums for
licenses which cost them nothing; and generally into the basic
question of whether property rights in the nature of vested
rights are being asserted in frequencies and are being recog¬
nized by the Commission. "
Senator White discussed the trend toward newspaper
control of radio stations and the hostility it has engendered.
Without taking sides, he warned publishers that, besides tak¬
ing monetary risks in investing in broadcasting stations, they
would court government curbs on freedom of the press.
"It is not unreasonable to fear that the development
of newspaper ownership in this governmentally controlled means
of communication is the great threat to the freedom of the press
in America", he said.
The other two major points discussed by Senator White
were (1) alleged trafficking in licenses, and (2) charges of
monopoly.
"Why should the government be concerned?" he said
with regard to the former issue. "The price paid cannot affect
the legal powers of the Commission. In a legal sense a station
licensee who has paid a huge sum for an assignment, a sale, or
a lease, and who has violated the law is subject to the penalty
of revocation or to the rejection of a renewal of application
as is one paying a nominal consideration, but I am afraid the
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3/19/37
human element enters into the equation and punitive action is
not so certain in the one case as in the other.
"If we will regard the relaties, we will recognize
that, in disregard of the Congressional purpose, stations and
licenses and frequencies are being freely bought and sold and
leased; that prices are being asked and paid which have no
possible relation to the investment, and which can only be
explained upon the theory that the frequency is being highly
capitalized. 15
XXXXXXXX
MEXICO’S 68 STATIONS STUDIED AT HAVANA CONFERENCE
One of the principal topics of discussion at the
North American radio broadcasting conference in Havana March lb-
22 is the question of how many of the 96 clear channels allocat¬
ed to this continent shall be used exclusively by Mexico. Another
is whether the "border stations" shall continue to disturb United
States broadcasters.
Consequently a new authorized list of broadcasting
stations now in operation in Mexico, together with their
frequencies, discloses the extent of the problem. The list
was obtained from the American Embassy in Mexico City.
It shows that Mexican broadcasting has grown rapidly
in the last few years and now includes 68 long wave stations
and two short-wave stations. It has two transmitters that are
more powerful than any of the regular U. S. stations, excluding
the experimental WLW, and both are "border stations".
XENT, Nuevo Laredo, operates with 150,000 watts on
910 kc. under the direction of Norman T. Baker, former American
broadcaster, while XERA, Villa Acuna, uses 75,000 watts on
840 kc., with Dr. John P. Brinkley, goat gland specialist, in
charge .
Mexico has two 50,000 watt stations: XEAA, Mexicali,
and XEPN, Piedras Negras. There are 17 stations operating in
Mexico City.
The complete list as prepared by the American Embassy
follows :
5
3/19/37
Call
Frequency in
Power in
Clt£
A^ua
Letters
Operator
Kilocycles
Watts
XEBC
Cia. Mexicana del Agua
730
5,000
Callente
ii
XFC
Callente, S. A.
Gobierno del Estado de
810
350
ii
XFA
Agua Qaliente
H V «w «•
1,310
5
Chihuahua
XEFI
Feliciano Lopez Islas
1,440
250
Ciudad
XEJ
Juan G. Buttner
1,020
1,000
Juarez
«
XEFV
Jose Onofre Meza
1,210
100
Cordoba
XEAG
Diodoro Zuniga
1,310
10
Durango
XEE
Alejandro 0. Stevenson , Jr.
1,210
50
Guadalajara
XED
Cia. Radiofonografica, S. A.
1,160
2,500
it
XEA
Alberto Palos Sanza
1,060
125
Guajanuato
XEAZ
Antonio Zavala
1,420
7
Hidalgo del
XEAT
David G. Cervantes
1,210
50
Parral
Jalapa
XFD
Gobierno del Estado de
1,340
350
Jalapa
SFB
Veracruz
it ii
1,270
250
Leon
XEKL
Cia. Difusora del Bajio
1,240
500
Matamora s
XEAM
M. L. Salinas
960
7
Merida
XEY
Ramon Rubio
1,000
10
it
XEFC
Julio Molina Font
550
100
it
XEZ
Jorge L. Palomeque
630
500
Mexicali
XEAO
Luis L. Castro
560
250
ii
XEG
Juan C. Chavez
1,270
200
«
XEAA
Carlos Blando
920
200
Mexico City
XEW
Cadena ^adiodifusora
890
50,000
it ii
XEYZ
Mexicana, S. A.
Radlodifusora Continental
780
10 , 000
it ii
XEB
S. A.
El Buen Tono
1,030
10 , 000
it it
XEFO
Partido Nacional
940
5,000
ii it
XFO
Revolucionario
n ii
940
5,000
ii ii
XEN
Cerveceria Modelo S. A.
710
1,000
it ii
XEAL
Cia. Pan-America de Radio
660
1,000
ii it
XEP
Ana Maria Rovalo de
8 dO
500
H II
XFX
Pasalaqua
Secretaria de Educacion
610
500
» II
XEL
Publica
Esperanza Romero de Gonzalesl, 100
250
II ft
XEAL
Carlos Gonzalez Caballero
1,240
100
n ii
XEFZ
Manuel Zetina
1,370
100
« ii
XELC
Manuel Valdes Bravo
740
100
n ii
XEWZ
J. V. Esparza
1,150
100
•I ii
XEK
A. Martinez
990
100
ii ii
XEMX
Alfonso Traslosheros Avalos 1,280
12
it H
XECX
M. E. Bravo de Cardero
1,310
10
6
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3/19/37
Call Frequency in Power in
City
Letters
Operator Kilocycles
Watts
Monterrey
XET
Cadena Radiodifusora
Mexicana
690
500
it
XEH
Constantino de Tarnava
1,150
250
it
XEX
Luis F. Petit Jean
1,310
125
it
XEFJ
Rodolfo Junco ae la Vega
1,230
100
ii
XSFB
Jesus Quintanilla
1,420
100
Morelia
XEI
Carlos Gutierrez
1,370
125
Nogales
XEAF
Francisco G. Elias
990
750
Nuevo Laredo
XENT
Cia. Industrial Universal
de Mexico, S. A,
910
150,000
II w
XEFE
Rafael T. Carranza
850
250
Piedras Negras
XEPN
Cia. Radiodifusora de
Piedras Negras, S. A.
590
50,000
it n
XELO
It II li
1,110
10,000
Oaxaca
'XEAJ
Enrique M. Orihuela
1,310
15
Puebla
XETH
Ramon Huerta
1,210
100
Reynosa
XEAW
Cia. Internacional Difu-
sora de Reynosa
960
10 , 000
Saltillo
XEOX
Antonio Garza Castro
640
250
it
XELA
Enrique Gomez
1,240
50
San Luis Potosi
XEZZ
Emilio Delgado
1,370
100
Tampico
XEFW
Jose Expedito Martinez
1,310
250
it
XES
Fernando Sada
909
250
it
XENIA
Manuel M. Pier
1,080
50
Tia Juana
XEMO
Fernando Federico
860
2,000
it
XEAE
Adolfo Labastida Jr.
980
250
n
KEMZ
Adolfo Labastida Jr.
1,210
250
it
XEFL
Luis J. Garcia
1,150
250
u
XEOK
Carlos de la Sierra
760
200
n
XEC
Luis E. Enciso
1,160
30
Veracruz
XEU
Fernando Pazos
1,160
25
it
XETF
Jose Rodriguez Lopez
1,220
12
Villa Acuna
XERA
(Dr. John R. Brinkley)
840
75,000
SHORT-WAVE STATIONS
Mexico City
XECR
Secretaria. de Relaciones
Exteriores
7,380
20 , 000
it it
XEBT
El Buen Tono
6,100
500
xxxxxxxx
The Georgia Supreme Court recently handed down a decision
that forbias the City of Atlanta from assessing a $300 license tax
against Station WG3T. The high court upheld contention of WG5T that
it was exempt from the tax because it operated under the Interstate
Commerce Act and by authority of the Federal Communications Commis¬
sion, which granted its license. Fulton County Superior Court, in
8 previous decision, had enjoined city from collecting the tax.
XXXXXXXXXXXX
3/19/3?
PARIS TO BUILD 30 KW. TELEVISION STATION
A 30,000-watt commercial television broadcasting sta¬
tion, which it was said would be the world's most powerful thus
far, was announced in an order this week by the French Ministry
of Posts, Telegraphs and Telephones from La Materiel Tele-
phonique Licensee, a company of the International Telephone and
Telegraph Corporation of New York. The station is to be
installed on the Eiffel Tower, with its antenna protruding from
the top of the flagoole 1,100 feet above the ground.
The equipment, which will be developed in the Paris
research laboratories of the Materiel Teleohonique Company,
must be put into service with reduced cower by July 1 and operate
with full power by the Autumn.
This new permanent broadcaster, being within the Paris
Exposition grounds, will offer World's ^air visitors one more
attraction illustrative of French progress and technique in
the electrical communications field.
XXXXXXXXXXX
RADIO INQUIRY BELIEVED CERTAIN ON CAPITOL HILL
Informed members of Congress this week predicted that
an investigation of the radio broadcasting industry at this
session of Congress is certain to be ordered and that probably
within a few weeks.
The House Rules Committee, it is understood, has
practically agreed to report out the Connery resolution but is
waiting to allow Representative Wigglesworth ( R. ) , of Massa¬
chusetts, an opportunity to be heard. This probably will be
granted next week.
Congressman Wigglesworth wants the resolution to specify
the Federal Communications Commission although it is generally
recognized that the ^CC will be drawn into the inquiry once it
is launched. Representative Connery's original resolution named
the FCC, but an amended draft omitted them and substituted the
three major networks. This was done, it is understood, at the
request of members of the Rules Committee.
Senator White (P.), of Maine, who this week made an
address on the subject in the Senate, has stated that unless the
House undertakes the investigation the Senate will. House mem¬
bers who are friendly to the v£C believe that the House probe
would be less embarrassing.
While the inquiry probably will be directed at the
charges of monopoly by the networks, indications are that it will
delve into recent sales of stations and varied grants by the
FCC as well.
XXXXXXXX
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3/19/37
OFFICERS NAMED BY INTERNATIONAL RADIO COMMITTEE
Comradr. T.A.M. Craven, Chief Engineer of the Federal
Communications Commission, was elected president recently at a
meeting of the American Section of the International Committee
on Radio in Washington.
Other officers chosen are:
Louis G-. Caldwell, Vice-President; Howard S. LePoy,
Treasurer; and F. P. Guthrie , Secretary. Executive counsel
includes: John W. Guider, Chairman; A. L„ Ashby, Thad H.
Brown, William R. Vallance, J. H. Dellinger, and Francis C.
deWolf .
XXXXXXXXXX
PAYNE INITIATES INQUIRY BUT HAS NOTHING TO SAY
Although the special committee of the Federal Communi¬
cations Commission headed by George Henry Payne held its first
meeting this week in connection with the inquiry in the George
3. Smith case, it was stated at his office that there had been
no developments worth reporting yet.
The committee is understood to have called Miss Mary
Belle Anthony, FCC employee, before it as the first witness.
Miss Anthony was transferred from the Docket to the Accounts
Division after she allegedly aided Mr. Smith, Washington radio
lawyer, in inserting affidavits in a file in violation of FCC
rules.
Radio Daily, however, quoted Commissioner Payne as
saying that a good portion of the work which the FCC is trying
to accomplish is being impaired by the activities of organized
radio lobbyists.
"This lobby consists of a few lawyers who claim they
can get the FCC t$ do most anything”, he said. "What they
actually do is to work through subordinates within the FCC and
get them to do things they should not do. The FCC should def¬
initely be free from influence of such groups. "
X X X X X X X X X X X
9
:
3/19/37
REVISED SAFETY-AT-SEA BILL REPORTED TO SENATE
A completely rewritten bill amending the Communications
Act of 1934 for the purpose of promoting safety of life at sea
was reported to the Senate this week by Senator Wallace White (p.),
of Maine, for the Senate Commerce Committee.
XXXXXXXX
CBS EARNS $4.41 A SHARE, REPORT SHOWS
The Columbia Broadcasting System, Inc. , in its annual
report for the fiscal year ended on January 2 (a fifth-three
week period), showed gross sales of time amounting to approxi¬
mately $27,800,000, on which the company earned $3,755,522, or
$4.41 a share on the 852,335 capital shares outstanding. This
compared with sales in 1935 of $22,771,000 and a net profit of
$2,810,078.
William S. Paley, President, told stockholders in his
report that the company had set aside $934,000 out of the 1936
earnings as addition to the surplus account, and that it had
provided out of current earnings a tax on undistributed orofits
of $97,622.
Touching on the company fs activities in the field of
television, the report stated: "Much remains to be done. At
the moment satisfactory general television broadcasting is still
well in the distance. We are doing our Dart to hasten its coming."
x x x x x x x m x
David Sarnoff, President of the Radio Corporation of
America will extend greetings to the N. V. Philips Omroep
Holland-Indie, pioneer European short-wave transmitter, on the
tenth anniversary of its first world program, Saturday, March
20th. The message, to be sent by short-wave to Eindhoven,
Holland, will be heard in the United States from 9:21 to 9:30
A.M. , EST, over combined NBC-Red and Blue Networks. Mr. Sarnoff’s
greeting will be in the nature of a tribute to N. V. Philips,
founder of Station PHOHI in 1927.
XXXXXXXX XX
10
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5/19/37
HOW SOVIET BROADCASTING- TIME WAS APPORTIONED IN 1936
The following table has been circulated by Radio
Centre, Moscow, to show how broadcast time on Soviet broadcast¬
ing stations was apportioned in 1936:
Kind of
Broadcast
Percentage
1.
Musical Broadcasts:
a.
Opera and ballet
5.8
b.
Operetta
0.2
c.
Montage of opera and operetta
4.7
d.
Music- symphonie , chamber and vauae-
ville entertaining
28.5
e.
Dance music
2, 2
f.
Folklore
2. 3
6.
Amateur
0.7
Total :
44.5
2.
Television
1.7
3.
Literary broadcasts
3.7
4.
Self-education broadcasts
5.4
5.
Information:
a.
Current events (actual events broad-
cast, not from the studio)
1.4
b.
Latest News
10.9
c.
Reports and talks
18.2
d.
Advertisements
2.7
Total:
33.2
6.
Miscellaneous :
a.
Children's broadcasts
5.8
b.
Physical Culture broadcasts
3.5
c .
Miscellaneous
2. 2
Total:
11,5
Grand Total :
100.00
XXXXXXXXX
A report from Western Australia gives an illustration
of how, in isolated communities, primitive methods of sending
signals may be linked up with short-wave broadcasting. A sheep-
station hand was reported missing from an out-station in the
Roebourne Tableland. The police at Port Hedland were informed.
Before setting out on what might have been a long and fruitless
search, the police broadcast messages to all who had short-wave
receivers in a given area, asking them to put up smoke signals
if they were able to receive the message. A second message was
then transmitted, asking those who had responded to put up
another smoke signal if they knew that the missing man had been
found. After an interval a second smoke signal gave the police
the information they required.
XXXXXXXXX
- 11 -
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3/19/37
WLW TO USE WHN STUDIO IN REPORTED NEGOTIATION
An arrangement has been made between WLW, Cincinnati,
ana WHN, New York, for the 500,000-watt station to use the New
York station as the exclusive source of its New York programs,
according to Variety. A contemplated deal of the same nature
between WLW and WMCA was dropped, the report stated.
xxxxxxxxx
AUT. INDUSTRY GAVE NBC 15.8$ OF TOTAL 1936 REVENUE
Automobile and allied industries last year accounted
for 15.8$ of the National Broadcasting Company’s total revenue,
according to figures just released by the NBC Statistical
Department. The amount invested in NBC time during 1936 by
this classification topped all previous years, NBC received
57.4$ of the automobile and allied industries' total expendi¬
tures on national networks.
XXXXXXXXX
CESAR SAERCHINGER RESIGNS AS CBS EUROPEAN DIRECTOR
Cesar Saerchinger, European Director of the Columbia
Broadcasting System since June, 1930, has resigned in order to
gain leisure for literary work. He will return soon to this
country after having lived abroad for eighteen years.
Edward R. Murrow, at present Director of Radio Talks
for CBS, succeeds Mr. Saerchinger, and will be stationed at
Columbia's London headquarters about Ma.y 1st. Mr. Murrow* s
successor in New York will be announced soon.
XXXXXXXXXX
GERMANY FORCED TO DUMP EXCESS RADIO RECEIVERS
Apparently the German radio industry ended last year
with a lot of old radio sets on hand, the U. S. Trade Commis¬
sioner Holland F. Welch at Berlin reports, because the Minister
of Economics has issued a permit to the radio industry covering
a price reduction of from 5 to 15 nercent retail on all 1936
radio receivers on hand. The lowest price reduction will be
on small, cheap sets and the larger reductions will be on the
expensive receivers of many tubes.
The radio season begins in Germany each Fall with the
introduction of new models but there have been very few changes
in 1935 and 1936 and few changes are predicted for 1937,
XXXXXXXXXX
- 12 -
NATIONAL BROADCASTING COM
GENEBfcL LIBRARY
HEINL RADKXef
1 Mu
2400 CALIFORNIA STREET
)RlJETTER
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
RECEIVED
MAR 24 1337
WAYNE L RANDALL
FCC Starts To Clean Up Brooklyn Case As Probe Looms . 2
Senate Passes Saf ety-At-Sea Measure Affecting Radio . 5
High Frequency Band Attracts Applicants Under New Buies . 5
NBC Denied Press Accommodations By Court . 07
Radio Link Between U. S. And Hawaii Opened . 7
McDonald Puts Cresley To Work Charting Georgian Bay . 8
Trade Notes . 9
Philco Leads Radio Makers In Newspaper Advertising. . . 10
NBC Gets Out Special Short-Wave Program. . . . 11
Network Engineers To 'Go On 5-Day Week . 11
U. S. Radios Sell Rapidly As Devaluation Boosts Prices. . 12
No. 1014
March 23, 1937
FCG STARTS TO CLEAN UP BROOKLYN CASE AS PROBE LOOMS
With a Congressional investigation of radio broadcast¬
ing and its regulation accepted as a certainty, the Federal
Communications Commission this week started to clean up one of
its most troublesome cases.
Involving five Brooklyn stations and the Brooklyn
Daily Eagle, the fight over facilities has been pending before
the FCC since its organization and prior to that before the
Federal Radio Commission.
It has been decided once by the FCC; the decision
has been withdrawn; hearing after hearing has been scheduled
on the reconsideration only to be postponed. Now, as the
House Rules Committee prepares to pass upon the Connery resolu¬
tion for a radio inquiry, the hearing has started. It probably
Will continue all week.
The continued operation of three Brooklyn stations -
WLTH, WARD, and WVFW is at. stake. The Commission in October,
1935, ruled that these stations should be denied license renew¬
als, and at the same time decided that the disDuted 1400 kilo¬
cycle channel should be divided between WBBC and the Brooklyn
Daily Eagle.
Commissioner Irvin Stewart thereuoon issued such a
vigorous dissent and other protests proved so forcible that the
decision was withdrawn and a rehearing was ordered.
Also involved in the case is Station WEVD, of New York
City, now operating on 1300 kc. It is seeking assignment on the
1400 kc. wave.
As the hearing opened, indications were that it would
be "a dog fight among the stations involved for the 1400 kc.
channel. That the FCC is now determined to go ahead with the
hearing was apparent from the action of Chairman Anning S. Prall
in over-ruling a motion by counsel for WBBC that it be post¬
poned further.
The Commission in reaching its decision in the Fall of
1935 explained its conclusions as follows, in part:
’’The Commission has before it eighteen conflicting
applications with respect to the assignment of a single facility;
viz. , 1400 kc. Manifestly, all of them cannot be granted. The
mandate of the Communications Act of 1934, to which we must
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adhere, requires us to undertake a careful comparison of the
merite of competing services.
"Of the four applications originally filed by Statio
WARD, WBBC, WLTH and WVFW the evidence, although contradictory
in many respects, ultimately impels us to the conclusion that t^
operation of Stations WARD, WLTH and WVFW does not serve public
interest, convenience and necessity. Upon the record before us
we do not feel justified in renewing the licenses of Stations
WARD, WLTH and WVFW for one- fourth time each, let alone increase
the hours of any one of them.
"It is true that each of the stations operating in
the Brooklyn area permitted the use of its facilities to certain
civic, educational and religious organizations, but a complete
review of this record indicates in no uncertain terms that
Stations WARD, WVFW and WLTH were operated by the licensees in
a negligent, slipshod ana unbusinesslike manner. It further
appears from this record in spite of much contradictory evidence
that the licensees of Stations WARD, WLTH and WVFW are far more
interested in the financial return they get out of the station,
than they are in rendering a good service to the listening
public. This is evident, in part, from the practice indulged in
by two of the stations of selling time and giving complete con¬
trol over the programs to the person to whom the time is sold.
In the case of the Paramount Broadcasting Corooration, as has
hereinbefore been pointed out, the licensee aoparently turned
over complete control of the station to its manager who, for all
practical purposes, was really the licensee.
"If there were unlimited facilities so that all who
desired them might be accommodated, there would be less neces¬
sity for rigid selection between applicants, but in the exist¬
ing state of the art, with available facilities severely restric
ed by physical and scientific factors, only a limited number
can be so favored. In a measure perhaps all of them give more
or less service. Those who give "the least service, however,
must be sacrificed for those who give the most. The abstract
right of all persons to engage in the business of broadcasting
is not absolute but exists only if their operation will serve
public interest, convenience and necessity . In the
case at bar, on the record before it, the Commission is of the
opinion that the applications for renewal of the licenses of
Stations WARD, WVFW and WLTH standing alone, are not worthy of
approval. Needless to say, no consideration can be given to
their applications for additional time.
"On the record before us we have determined that the
application of the Brooklyn Broadcasting Corporation (WBBC) for
renewal of license should be granted. We can now undertake a
comparison of the showings made by this station (WHBC) on its
application for modification of license, with those made by the
pending applications by the other applicants for modification of
license.
3
3/23/37
"The Brooklyn Broadcasting Corporation s (W3BC)
application for modification of license requests the use of
1400 kc full time. So also does the application of Brooklyn
Daily Eagle for construction permit to erect a new station in
Brooklyn. Competing with these two is the application of Arde
Bulova and Norman K. Winston for construction permit to erect
a new station in Brooklyn, for full time use of 1400 kc. , and
the application of Debs Memorial Radio Fund, Inc. , licensee of
Radio Station WEVD for modification of license to operate full
time on the frequency 1300 kc. , requesting that stations WFAB,
WBBR ana WHAZ, assigned to this frequency, and with which it
shares time, be transferred to the frequency 1400 kc. in the
event the Commission should deny the renewal license aoolica-
tions of WARD , WVFW, WLTH and W3BC.
"The application of the Debs Memorial Radio Fund, Inc. ,
(WEVD) for modification of license, if granted, would result in
causing objectionable interference with the service of other
existing stations. Since there is no other proposal which the
Commission can consider on the record before it, it is compelled
to refuse this apulication.
"Thus the competition for the frequency 1400 kc. is
limited to the following: Brooklyn Broadcasting Corooration
(WBBC); Brooklyn Daily Eagle Broadcasting Company , Inc., and
Arde Bulova and Norman K. Winston. Of these three applicants
the Commission feels that the existing Station WBBC, whose
operation at Brooklyn over a long period of time has been handi¬
capped to some extent by its lack of sufficient time, has the
financial, technical, legal and other qualifications necessary
to its successful operation on a larger scale, so as to allow
this station one-half time on the frequency 1400 kc. As to the
remaining half time between the applicants, Brooklyn Daily Eagle
Broadcasting Company, Inc. , and Arde 3ulova and Norman K.
Winston, the Commission is of the opinion that the Brooklyn
Daily Eagle Broadcasting Company, Inc. , is clearly in a position
legally, financially, technically and otherwise, to render
better service in the public interest, particularly because of
its intimate knowledge of the needs of that section of the
country, it having been in close touch with that community
through its newspaper for a long period of time and, therefore,
its application is granted in part so as to permit the erection
of a new station to operate on tne 1400 kc. frequency with
the remaining one-half time. "
XXXXXXXXXX
Station WDGY, Minneapolis, has started a new series cf
television broadcasts through its station W9XAT, at 12:30 p.m.
daily, under the personal direction of George Jacobson, chief
technicial.
Dr. George Young, owner of the station, is one of the
pioneers in television and has complete studio equipment costin,
between $40,000 and $50,000.
XXXXXXXXXX
- 4 -
?•
3/23/37
SENATE PASSES SAFETY-AT-SEA MEASURE AFFECTING RADIO
Without debate the Senate last week passed a bill to
amend the Communications Act of 1934 for the purpose of promot¬
ing safety of life and property at sea through the use of wire
and radio communication and to make more effective the Inter¬
national Convention for the Safety of Life at Sea, 1929.
The measure, which now goes to the House, specifies
what radio equipment is necessary for the various classes of
sea vessels and certain types of life boats. It is intended
to broaden the use of radio at sea.
A similar bill passed the Senate last session but
died in the House.
XXXXXXXXXXX
HIGH FREQUENCY BAND ATTRACTS APPLICANTS UNDER NEW RULES
The high-frequency broadcasting band, which may
eventually open up a new field of purely local broadcasting, is
again attracting applicants who otherwise have little chance of
obtaining licenses from the Federal Communications Commission.
After more than a year's inactivity in this band,
the FCC has again started issuing permits for new stations to
operate in accordance with revised regulations. As a consequence
almost a score of applications have been filed for assignments
on the band although it is still listed as "experimental".
Newspapers are showing particular interest in the high
frequencies because of the possibilities of their eventual
development on a commercial scale.
Under the amplified rules adopted by the ^CC the 33
stations now operating in this band may broadcast regular pro¬
grams, including those commercially sponsored, orovided they
get no direct revenue from the broadcasts.
These high frequency stations appear at present to
be limited in their coverage and most suitable for local recep¬
tion with low power. Much experimental work remains to be done,
however, before they can be placed on a commercial scale.
With the assignment of the two new groups of frequen¬
cies below 30,000 kc. for high-frequency broadcasting, the FCC
took recognition of the allocation of these bands internation¬
ally for broadcast use. No interna tional allocations have
been made with respect to frequencies above 30,000 kc. except
for general experimental operations. As a consequence, it is
assumed that stations licensed on the bands below 30,000 kc.
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3/23/37
will stand a good chance of retaining their assignments whereas
it is quite probable that those operating on the higher frequen¬
cies may not retain the precise channels, under some future
allocation treaty.
Grants made this month were to the Charleston Broad¬
casting Co. , operating WCHS, Charleston, W. Va. , on the 2600 kc.
band with 50 watts; to Ben S. McGlashan, operator of KGFJ, Los
Angeles, for assignment on the 88, 120, 240 and 500 megacycle
bands- with a maximum power of 500 watts, and to the General
Electric Co_, for such a station in Albany, on 31,600 to 41,000
kc. , with 150 watts.
Of the 30 "apex" stations already licensed, eight
are newspaper-®wned» The 30 high-frequency stations already
in operation are:
E. Anthony & Cons, Inc., W1XEQ, Fairhaven, Mass.,
31600, 35600, 38600, 41000 kc. , 100 w. ; Edwin H. Armstrong,
W2XMN, No0 of Alpine, N. J. , 41600, 86500, 111000 kc. , 40,000 w.
Baltimore Radio Show, Inc., W3XEY, Baltimore, Md. , 31600, 35600,
38600, 41000 kc. , 100 w. ; Bamberger Broadcasting Service, Inc. ,
W2XJI, Newark, N. J. , 31600, 35600, 38600, 41000 kc., 100 w. ;
Julius Brunton & Sons Co. , W6XAS, San Francisco, Calif. , 31600,
35600, 38600, 41000 kc. , 100 w. ; Columbia Broadcasting System,
Inc., W2XDV, New York, N. Y. , 31600, 35600, 38600, 41000 kc. ,
50 w. ; Columbia Broadcasting System, Inc., W9XHW, Minneapolis,
Minn., 31600, 35600, 38600, 41000 kc. , 50 w. ; Virgin V. Evans,
d/b as The Voice of South Carolina, W4XH, Spartanburg, S. C. ,
31600, 35600, 38600, 41000 kc. , 50 w. ; Evening News Associa¬
tion, W8XWJ, Detroit, Mich., 31600, 35600, 38600, 41000 kc. ,
100 w.
Also, Head of the Lakes Broadcasting Co. , W9XJL,
Superior, Wis. , 31600, 35600, 38600, 41000 kc. , 80 w. ; The
Journal Company (The Milwaukee Journal), W9XAZ, Milwaukee, Wis.,
26400 kc. , 500 w. ; Ben S. McGlashan, W6XKG, Los Angeles, Calif.,
25950 kc. , 1000 w. ; Memphis Commercial Appeal, Inc., W4XCA,
Memphis, Tenn. , 31600, 35600, 33600, 41000 kc. , 250 w. ; Midland
Broadcasting Co., Inc., W9XER, Kansas City, Mo., 31600, 35600,
38600, 41000 kc. , 50 w. ; Monumental Radio Co., W3XES, Baltimore,
Md. , 31600, 35600, 38600, 41000 kc. , 300 w. ; National Broad¬
casting Co., Inc., W2XDG, New York, N. Y. , 31600, 35600, 38600,
41000 kc. , 5000 w. ; National Broadcasting Co., Inc., W2XHG, New
York, N. Y. , 31600, 35600, 38600, 41000 kc. , 150 w. ; National
Broadcasting Co., Inc., W9XB5 , Chicago, Ill., 31600, 35600,
38600, 41000 kc., 2500 w.
Also, Pulitzer Publishing Co., W9XPD, 3t. Louis, Mo.,
31600, 35600, 38600, 41000 kc . , 100 w. ; Shepar’t Broadcasting
Service, W1XER, Quincy, Mass., 31600, 35600, 38600, 41000 kc. ,
500 w. ; Star-Chronicle Publishing Co., W9X0K, St. Louis, Mo.,
31600, 35600, 38600, 41000 kc. , 100 w. ; Stromberg- Carl son
Telephone Manufacturing Co., W8XAI , Victor Township, N. Y. ,
6
■
5/23/37
31600, 35600, 38600, 41000 kc. , 100 w. ; WBEN, Inc., W8XH,
Buffalo, N. Y, , 31600, 35600, 38600, 41000 kc. , 100 w. ; WDOD
Broadcasting Corp., W4XBW, Chattanooga., Tenn. , 31600, 35600,
38600, 41000 kc. , 100 w. ; WKY Radiophone Co. , W5XAU, Oklahoma
City, Okla. , 31600, 35600, 38600, 41000 kc. , 100 w. ; WTAR Radio
Corporation, W3XEX , Norfolk, Va. , 31600, 35600, 38600, 41000 kc. ,
50 w. ; Westinghouse E. & M. Co. , WlXKA, Boston, Mass. , 31600,
35600, 38600, 41000 kc. , 50 w. ; Westinghouse E. & M. Co., W3XKA ,
Philadelphia, Pa., 31600, 35600, 38600, 41000 kc. , 50 w. ;
Westinghouse E. & M. Co., W8XKA, Pittsburgh, Pa., 31600, 35600,
38600, 41000 kc. , 150 w. ; Westinghouse E. & M. Co. , W1XKB ,
E. Springfield, Mass. , 31600, 35600, 38600, 41000 kc.
XXXXXXXX
NBC DENIED PRESS ACCOMMODATIONS BY COURT
Radio broadcasters have been denied access to the
press accommodations in the Supreme Court Building In Washington,
D.C. A National Broadcasting Company representative filed a
request with the Court that the chain be allowed to place a man
in the press section of the new court room, and that he be
allowed to broadcast digests of decisions immediately after
they were handed down.
Marshal Frank Green tola the NBC- man that the nine
justices had decided that the "request must be denied" although
no explanation was given.
XXXXXXXX XX
RADIO LINK BETWEEN U. S. AND HAWAII OPENED
Completion of installation of the new radio apparatus
at Fort Shafter, Hawaii, and in the Munitions Building in
Washington, was celebrated yesterday (Monday) with an exchange
of messages between Major Gen. Hugh A. Drum, commanding the
Hawaiian Department, and Major Gen. J„ B. Allison, Chief Signal
Officer.
The equipment permits communication between Washington
and Hawaii at a rate up to 300 words a minute.
Use of similar high-speed apparatus during the recent
floods enabled the War Department's radio system to transmit a
half million words, in addition to the normal traffic of govern¬
ment messages.
xxxxxxxxxx
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3/23/37
MC DONALD PUTS CROSLEY TO WORK CHARTING GEORGIAN BAY
How Commander E. F. McDonald, Jr. put his guest,
Powel Crosley, Jr. , to work as an assistant in helping him
chart dangerous passages in and around the 30,000 islands in
Georgian Bay, thousands of which still remain unexplored by
man, is told by Pierre Boucheron in the March issue of "The
Rudder1', the magazine for yachtsmen. The article is profusely
illustrated by photographs of Commander McDonald's yacht
"Mizpah", Senatore Marconi and David Sarnoff aboard the yacht,
and numerous other views.
Last year there was published for the first time a
chart of McGreagor Bay by McDonald and his crew with up-to-the
minute scientific range and depth finding instruments. Only
ten miles square there nestle within this Bay some 3,000
islands previously uncharted. Even so, this new chart is not
complete by any means. It shows one where to go but not
where one cannot go. At one stage of this charting, Powel
Crowley, Jr. , a guest, flew over McGreagor Bay in his amphibian
for a full day taking photos to ascertain the location of
rocks, otherwise unseen.
"Commander McDonald actually rates the title",
writes Mr. Boucheron, formerly of the Radio Corporation of
America but now with the Remington Arms Company, who himself
is a Lieut. Commander in the Naval Reserve. "He is a lieutenant
commander in the U. S. Navel Reserve, having first been commis¬
sioned in 1917 when he served in the Navy as a lieutenant
during the war, and the ‘Mizpah’ today is one of the very
few private vessels on the Great Lakes privileged to fly the
Naval Reserve pennant. Moreover, he takes this naval associa¬
tion seriously and demonstrates it in a practical way each year
when local Sea Scouts take over the ship for their annual
training cruise. Also, the professional master of the ’Mizpah'
has standing orders to put out to sea in time of storm when it
can be of help to small craft. Practically in commission the
year around, the 'Mizpah1 has won the unofficial title 'watch
dog of the water front. '
"The 'Mizpah' may look like another millionaire's
yacht but to a nautically minded visitor she Is a most unusual
vessel combining as she does a year-round home, laboratory
and cruising office. Built in Hampton Roads in 1928, of 559
gross tons, and powered with two 1,000 horse-power Diesels,
she he s a cruising range of some 7,000 miles and carries a crew
of twenty-seven* The range of her voice and telegraph radio
is practically unlimited, as demonstrated during the ship’s
sojourn in the Galapagos and in Labrador when Commander
McDonald was in constant communication with his Chicago busi¬
ness headquarters, thousands of miles away, with fifteen-minute
daily long range conferences a common occurrence. "
XXXXXXXXX
- 8 -
3/23/37
: : TRADE NOTES
Colombia's National Police Department, under the
jurisdiction of the Ministry of Government, at different times
has considered the installation of a broadcasting station at
Bogota and the establishment of radio car patrols in and about
the capital. Heretofore a lack of funds has prevented the
materialization of this scheme, but there is a chance of it
being carried into execution before 1938, according to the U. S.
Commerce Department.
A favorable report on the application of H. W. Wilson
and Ben Farmer, of Wilson, N. C. , for a construction permit to
build and operate a broadcasting station on 1310 kc. with 100
watts power daytime was filed with the Federal Communications
Commission this week by Examiner P. W. Seward,
Sale of merchandise by means of plans involving
lottery schemes, in violation of Section 5 of the Federal Trade
Commission Act, is alleged in two complains issued by that
Commission. Albert J. Tarrson, 230 East Ohio St. , Chicago,
is respondent in one complaint. Trading as National Adver¬
tisers Co., A. J. Sales & Manufacturing Co., The Tarrson Co.,
and Pla-Pal Radio & Television Co. , Tarrson is engaged in th°
sale of cameras, pen and pencil sets, radios, safety razors,
clocks, and other merchandise.
The 1937 International Exhibition in Paris will be
opened on May 1st and the annual Paris Fair will continue May
15 to 31, As usual there will be a special section at this
Fair devoted to radio.
Denial of an application of the Falls City Broadcast¬
ing Corp. , Falls City, Nebr. , for' a construction permit to bui^ci
and operate a broadcasting station on 1310 kc. , with 100 watts
power, unlimited hours, was recommended in a report to the
Federal Communications Commission this week by Examiner Ralph L.
Walker. The station, the Examiner said, would cause objection¬
able interference.
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3/23/37
David Guthrie, 13 years old, son of F. P. Guthrie,
Washington Manager of R.C.A. Communications, Inc., died last
Friday following a long illness. The funeral was held Monday
in the churchyard near Staunton, Va. , where other members of
the Guthrie family are buried.
Imports of radio sets into Habana in January, accord¬
ing to private compilations from ships' manifests, numbered
3,425 units valued at 80,232 pesos. These data compare with
2,62? sets valued at 78,936 pesos, entered in December and
3,348 units valued at 71,895 pesos corresponding to incoming
shipments in January of 1936. More than 25 brands were repre¬
sented in the total imports for January.
XXXXXXXXXXX
PHILCO LEADS RADIO MAKERS IN NEWSPAPER ADVERTISING
Philco Radio & Television Corp. , Philadelphia, led
radio manufacturers in newspaper lineage used last year, accord¬
ing to a tabulation made by Editor & Publisher.
follows :
The complete list, covering dailies in 100 cities,
Sets
American Bosch . 26,637
Arvin . 54,070
Atwater-Kent . 5,400
Crosley Radio . 53,259
Delco Radio . 7,438
Emerson. . . . 55,577
Fairbanks Morse . 16,524
General Electric Radio . 417,810
Grunow. . . 428,518
Kadette . 1,750
Little Giant . 1,740
Majestic.... . 11,180
Midwest . 60,279
Motorola Auto Radio . 19,069
Philco . 2,071,238
R.C.A. Victor Radio . 559,146
Royal e . 488
Sparton . 43,601
Stewart- Warner Radio . 68,990
Stromberg "Carlson . 147,269
Westinghouse Radio . 24,030
Zenith . 422, 730
Tubes
R.C.A. Tubes . 42,065
Syl vania Tubes . 8,764
XXXXXXXXX
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3/23/37
NBC GETS OUT SPECIAL SHORT-WAVE PROGRAM
Made up five weeks in advance to get them to foreign
countries in time for publication, program listings for short¬
wave Station W3XAL, at Bound Brook, New Jersey, are now being
distributed by the National Broadcasting Company which operates
that station. The listings are prepared by Vance Babb, Manager
of the Press Division, and according to Wayne L. Randall,
Director of Publicity, are published in response to a strong
newspaper demand.
Such a listing service has been maintained by the
General Electric Company for its short-wave stations WSXAD and
W2XAF, at Schenectady, and also by the Columbia Broadcasting
System for W2XE at New York and W3XAU, Philadelphia,
The first NBC-W3XAL listing covering the week of
April 4-10 was mailed from New York March 5th.
XXXXXXXXXX
NETWORK ENGINEERS TO GO ON 5-DAY WEEK
The two "inside unions" representing the operating
engineering staffs of the fifteen stations owned and operated
by the National Broadcasting Company ana the nine owned by
the Columbia Broadcasting System, have completed arrangements
with their managements under which the engineers of both net¬
works will be working a five-day, forty-hour week on or before
September 1st, according to the New York Times.
The engineers now are on a six-day, forty-eight
hour week. The NBC engineering staff includes about 550 who
are members of the Association of Technical Employees; the
staff at CBS consists of 160 engineers who are members of the
Associated Columbia Broadcast Technicians. The change in polic
will not affect the wages of the technical employees, it was
said by the network officials.
Neither association is affiliated with the American
Federation of Labor or the Committee for Industrial Organiza¬
tion, it Was pointed out.
XXXXXXXXXX
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5/23/57
U. 3. RADIOS SELL RAPIDLY AS DEVALUATION BOOSTS PRICES
Following is an account of the effect of devaluation
in Switzerland on the radio market, as reported to the U. S.
Commerce Department by Consul Maurice W. Altaffer, of Zurich:
"Nearly all .American radios are imported as chassis,
for which cabinets are manufactured here. Before devaluation
the average cost of an American radio chassis was approximately
100 francs. After devaluation, therefore, this amounted to
140 francs. Considering the comparatively high retail prices
charged for radios in this country and the good margin of
profit obtained by the retail dealers, the loss resulting from
devaluationoould have been absorbed by the latter. The Price
Control Bureau, however, permitted them to increase prices of
imported radios in an amount exactly equal to the loss in
value of the currency.
"The domestic radio industry has requested the per¬
mission of the Price Control Bureau to increase prices on
Swiss made radios by 10 percent outtnis has not been granted.
It is not unlikely tnat a price increase approximating this
amount will be approved by' the Government around the first of
1937. This will cover the increased costs of materials going
into the assembly of domestic sets, since Swiss radios are
without exception assembled products. Sales are less a matter
of price than of quality and advertising, so this price increase
is likely to have little effect on turnover.
"As a result of the wave of periodic buying immediately
after devaluation, stocks of American radios were soon sold out.
Inasmuch as the quota for American radios is small, in spite of
its increase through the provisions of the Trade Agreement,
these stocks were of little significance. The contingent
system, which was intended to afford protection behind which
domestic interests could build up a radio industry in Switzer¬
land, has been responsible for the reduction of American radio
imports to a comparatively small volume. This is the more
regrettable since .American radio dealers were pioneers in this
market and formerly controlled a large share of the trade. "
XXXXXXXXX
12
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
rf)
for
C O N F I D E N T I A L — Not for Publication
M ifiTTi
(Vi A R 0 9
p: bg , o( foe,
INDEX TO ISSUE OF MARCH 26, 1937
Stewart Assails Allocation, Chains, and Radio Regulation., . 2
Protection For Canadian Station Proposed In Reoort . 5
Rules Committee Hears Wiggles worth; May Act Next Week . 6
FCC Advised To Reject Request From Norman Baker Interest. ....... 7
CBS Stockholders Vote To Double Shares.,.. . . . 8
Examiner Finns That FCC Made A Mistake In 1935 Grant. . . . ..8
Baldwin Optimistic Over Havana Radio Conference . . . 9
RMA Directors To Plan June Convention. . . 9
Rule Relating To Lawyers Amended By The FCC . 10
U. S. Radio Instruments, Measurements Circular Reprinted . 10
Trade Notes . . . 11
NBC Adas Three Stations Bringing Total To 121... . • . 12
Dyke Joins NBC As Eastern Division Sales Manager . 12
No.
1015
STEWART ASSAILS ALLOCATION, CHAINS, AND RADIO REG-ULATION
The present allocation of broadcasting frequencies,
whereby the metropolitan areas have the most desirable wave¬
lengths, the duplication of programs via the networks, and the
failure of the Federal Communications Commission to regulate
properly in some instances were assailed by Dr. Irvin Stewart,
Vice Chairman of the FCC, in an address at Duke University,
Durham, N. C.
Going far beyond the criticisms of Commissioner George
Henry Payne in a series of university lectures, Dr. Stewart
gave a sweeping and highly critical analysis of the whole sub¬
ject of public control of radio and the problems it raises.
His address covers 27 mimeographed pages.
’’The person who has the largest stake in American
broadcasting is the listener, " Dr. Stewart declared, "While
the investment of the individual listener in his receiving set
is small compared to that of the broadcast station owner or
that of the large advertiser, in the aggregate the total invest¬
ment in receiving sets is far greater than that in transmitting
stations or in advertising time. In theory, broadcasting is
for the benefit of the listener. It should be; for its heart
is an uncompensated use of public property, and the listener is
the man who foots the bill for broadcasting when he pays the
cost of governmental regulation and when he buys the advertised
product.
"One corollary of the American system in which broad¬
casting is supported by advertising revenue is generally over¬
looked. Somewhat over-simplified for emphasis, it is that a
broadcasting system supported by advertising is one in which
broadcast stations are "located where the advertisers want them,
not where they will best serve the country as a whole. This
corollary is not entirely free in its operation- for Congress,
in setting up the regulatory authority, has said that in grant¬
ing facilities, the Commission must so distribute them ’as to
provide a fair, efficient, and equitable distribution of radio
service’ to each State. This general statutory requirement has
operated as a limitation uoon the complete freedom of broadcast
station owners to locate their stations where the orospect of
advertising revenue was the greatest.
"Another characteristic of the American system of
broadcasting is that the initiative in the establishment of
stations for the most part comes from persons who have a private
interest, usually financial, in the ownership of the stations.
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3/26/ 37
Their primary purpose is not to locate the proposed station so
as to serve that portion of the population of the United States
most in need of radio service. Generally speaking, the primary
consideration of the apulicant is that of financial return, not
of service rendered. In practice this means intense competitic
for stations in areas with large pooulation, and little demanc
for stations where pooulation is comoaratively sparse. The
result is a distribution of broadcast stations in the United
States which no engineer would attemrt to derend as an effic¬
ient way to deliver broadcasting service to the counory as a
whole, . . .
"'Clear channels were designed to provide rural cover¬
age. On such channels, there was to be but one station operat¬
ing with comparatively high power, having its secondary service
area interference-free in order that large areas might be served.
"At this point, the economics of the American system
of broadcasting come into play. With clear channel stations
designed to provide rural coverage, most of them are located in
the larger cities. The New York metropolitan area has four
clear channel stations, Chicago four, Philadelphia two and Los
Angeles two. Due to the breaking down of certain clear channels,
there are now a total of 47 stations operating on the 40 clear
channels. Twenty of them are located in metropolitan areas
having a population of a million or more; fourteen in metropol¬
itan areas having a population ranging from a^uarter-million
to a million. Forty-three of the 47 clear channel stations are
located in metropolitan areas having a population of 100,000 or
over.
"This leads me to another phenomenon in the American
broadcasting picture, the networks or chains. In addition to
about 40 local or regional chains there are three chains provid¬
ing coast to coast service at the present time. All of the
high power clear channel stations upon which the rural areas
\depend for broadcast service are owned or are affiliated with
/one of these three. A result of this is that a considerable
portion of the population of the United States is largely
dependent upon programs from chain stations . The
duplication of programs on clear channels raises the fundamental
question as to how successfully clear channels are meeting
their declared purpose when they are used to pound the same
program in on the listener from several stations rather than
to give him a selection from which to choose the program to
which he wishes to listen.
"The three coast-to-coa st networks own a comparatively
small number of stations, out they provide urograms for a total
of 249 out of the 696 broadcast stations in the United States,
including practically all of the more powerful stations.
3
3/26/37
"Undoubtedly the chains have made available to
small communities programs which it would have been difficult
for them to receive otherwise. They have made it possible Tor
national audiences to listen to programs of national iraDort-
ance. But, with three organizations in a oosition to deter¬
mine what programs shall be carried on the most powerful
broadcast stations all over the country at the times when most
: people are free to listen, it is small wonder that the cry of
monopoly has been raised. At the present time there is pend-
; ing before the House of Representatives a resolution providing
for an investigation of charges of the existence of a monopoly
in radio broadcasting.
"While Congress in the Radio Act of 1927 and again
in the Communications Act of 1934 specifically gave to the
, Commission power to issue special regulations applicable to
! radio stations engaged in chain broadcasting, there are no
! such regulations at the present time, nor have any ever been
in effect. "
Some of his observations on other topics in radio
regulation were as follows:
License transfers:
"A radio station license is personal to the licensee,
granted after a finding that his holding the license will be
in the public interest. There is nothing in that finding which
says that he may sell the license to the highest bidder who
may be technically qualified. Station licenses are not pieces
of merchandise; they are evidences of a privilege to serve the
public.
"There have been suggestions that, if the Commission
does not explore its own oowers to check sales of broadcast
stations at inflated prices, Congress might recapture for the
public the profit on the transfer of oublic property. The
transfer of licenses at orices far in excess of the value of
the physical equipment involved will sooner or later offer a
tempting field for the middleman."
Newspaper control of stations:
."Men will differ in the weight they attach to the
matter of newspaper control of broadcast stations as well as in
the treatment they will prooose. I can not agree with those
who contend that the matter has no element of public interest
which may be considered by a Commission granting applications
under a statutory standard of ’public interest, convenience
or necessity. ’ "
4
3/26/37
Advertising:
"How effectively the Commission can regulate adver¬
tising has never been shown and need never be shown if broad¬
cast station licensees will accent the nublic responsibilities
that gO'-with a broadcast station license. C-ood taste can not
be legislated, and I suspect that it cannot even be admini¬
stratively required. Good taste, a sense of public respons-
' ibility and elementary decency on the part of broadcast
licensees should make it unnecessary for the Commission ever
to explore the possibilities of its power effectively to regu¬
late advertising. "
Programs :
"Can the Commission set up minimum standards of pro¬
gram quality which all licensees v/ould have to meet? Standaros
of engineering efficiency are fairly easy of formulation and of
application. Standards of program quality would be difficult
both of formulation and of application. I for one, however,
am not prepared at this time to state that standards of program
quality are impossible either of formulation or application.
The field is one in which the Commission has done nothing - it
may possibly remain one in which the Commission will do nothing.
The answer must depend upon the broadcaster. "
Station Censorship;
"The refusal of a station owner to permit the use of
his facilities for the expression of views inimical to his own
may have serious results. In a large part of the country only
a very few stations can be heard consistently. When a minority
group is refused expression of its views over a. single broad¬
cast station, it means that those views cannot be heard in a
J section of the country where that station is the only one
received. 15
XXXXXXXXXXX
PROTECTION FOR CANADIAN STATION PROPOSED IN REPORT
Recognition of the rights of a Canadian broadcasting
station to operate without interference by an American trans¬
mitter, Examiner P. W. Sewart in a report to the Federal Com¬
munications Commission this week recommended that an applica¬
tion be granted providing a directional antenna is built to
protect the Canadian station.
WELI, New Haven, requested authority to transfer
from 900 to 930 kc. and to operate at night with 250 watts
power. It now uses 500 watts daytime. The Canadian station
is CHNS, Halifax, Nova Scotia.
5
v"
At the same time the Examiner recommended the denial
of an application by Lawrence K. Miller, of Pittsfield, Mass. ,
for a construction permit to operate on 930 kc. with S50 watts
daytime on the ground that it would interfere with Station CFLC,
Prescott, Canada.
xxxxxxxxxx
RULES COMMITTEE HEARS WIGGLESWORTH ; MAY ACT NEXT WEEK
The House Rules Committee this week heard Representa¬
tive Wigglesworth (R. ), of Massachusetts, speak in support of
the Connery resolution for a radio inquiry but adjourned without
taking action. It was said that another meeting may be held
next week to act on the resolution.
Representative Wigglesworth, who took the lead in
cross-examining members of the Federal Communications Commission
during hearings on the approoria.t ions bill, urged that a sweep¬
ing investigation be made to ascertain what legislation, if any,
should be enacted to assure proper regulation of broadcasting,
"It is perfectly apparent" , he said, "that certain
definite objectives were sought by Congress through the Federal
Radio Act of 1927 and the Federal Communications Act of 1934.
Among these objectives were the elimination of private owner¬
ship in the channels of interstate and foreign radio transmis¬
sion, the elimination of undesirable trafficking in licenses
issued by the Federal Government and the elimination of monopoly
or the evils of monopoly. No one can read the provisions of
the Acts referred to without coming to this conclusion.
. "Nevertheless, it appears today that we are confronted
j by a virtual monopoly in the hands of the three big broadcasting
companies of the nation, Natioal, Columbia and Mutual. It also
j appears in the absence of further explanation that we have
I failed to eliminate private ownership or its equivalent in radio
channels as well as undesirable trafficking in radio licenses,
with all the possibilities with which we have been familiar in
the past in other fields for the capitalization of earnings and
profits to the detriment of the American people.
"A thorough going impartial investigation into the
entire situation should serve to establisn the extent and
effects of monopoly in the broadcasting field. It should serve
j to determine the extent to which the elimination of private owner
ship and trafficking in licenses has been accomplished. It
). should serve to throw light on the matter of proper program con¬
trol. It should serve to determine the earnings of the industry,
whether or not rates charged are rea sonabTe" and what contribution
if any, the industry may be fairly asked to make to the federal
Treasury. The industry today is dependent for its very exist¬
ence on Federal licenses. It Days nothing for these licenses,
yet it commands a gross income which has been estimated for 1937
as amounting to between $125,000,000 and $135,000,000, "
XXXXXXXXX - 6 -
3/26/37
FCC ADVISED TO REJECT REQUEST FROM NORMAN BAKER INTEREST
The name of Norman Baker, who was driven off American
air waves only to bob up on the Mexican border, was before the
Federal Communications Commission again this week.
Examiner Ralph L. Walker recommended the denial of
an application by J. L. Statler in behalf of the Baker Hospital,
Muscatine, la. , for authority to produce recordings and transmit
them to stations in Mexico and Canada for broadcasting.
Explaining his recommendation, the Examiner said:
"The record contains no showing of the character of
the programs other than general characterizations by the appli¬
cant, which are obviously insufficient to enable the Commission
to make a finding thereon. Applicant does indicate it as his
intention to advertise the Baker Hospital, the lessor of which
is undisclosed, and, in the absence of evidence of the type of
advertising to be used, reference may be made to the decision
of the Federal Radio Commission, filed June 5, 1931, In re
Norman Baker (Station KTNT) , Muscatine, Iowa, Docket No. 967.
That proceeding arose upon the application of Norman Baker for
a renewal of license for Station "KTNT. It aopears from the
decision that Norman Baker was the owner of the Baker Enter¬
prises, which included the Baker Institute, a hospital for the
treatment of the diseases treated at the apolica.nt T s Baker
Hosoital.
The decision details excerpts from some of the talks
made by Mr. Baker in advertising the Baker Institute, and con¬
cludes:
"'This Commission holds no brief for the Medi¬
cal Associations and other parties whom Mr. Baker does
not like. Their alleged sins may be at times of oublic
importance, to be called to the attention of the public
over the air in the right way. But this record dis¬
closes that Mr. Baker does not do so in any high-minded
way. It shows that he continually and erratically over
the air rides a personal hobby, his cancer cure ideas
and his likes and dislikes of certain persons and things.
Surely his infliction of all this on the listeners is
not the proper use of a broadcasting license. Many of
his utterances are vulgar, if not indeed indecent.
Assuredly they are not uplifting or entertaining. '
"The burden of proof is upon the applicant to establish
that public interest, convenience and necessity will be served
by the granting to him of the permit sought. This burden the
applicant has failed to sustain. "
xxxxxxxxxx
- 7 -
G/ GO/ G r
CBS STOCKHOLDERS VOTE TO DOUBLE SHARES
Stockholders of the Columbia Broadcasting System, Inc. ,
authorized this week an increase in the number of authorized
shares from 1,500.000 shares of $5 par value to 3,000,000
shares of $2,50 par value and the exchange of each present
capital share for two shares of the re w stock.
William 3, Paley, President, said the Company's net
profit for the first half of 1937 was expected to run $400,000
ahead of the same period last year.
At a meeting of Directors in New York, Frank White
was elected Treasurer as of April 1st. He has been Treasurer
and Business Manager of News Week. Mefford R. Runyon, who has
been Treasurer and Vice-President of Columbia, will relinquish
the treasurershio to devote all his time to general executive
work.
The stockholders approved a proposal to increase the
number of Directors from ten to fourteen and the granting to
certain executives of options to nurchase at $30 a share an
aggregate of 7,350 shares of unissued Class A stock. No addi¬
tional Directors will be elected until some time next month.
XXXXXXXX
EXAMINER FINDS THAT FCC MADE A MISTAKE IN 1935 GRANT
The Federal Communications Commission this week was
advised to deny an extension of time to one J. B. Roberts,
of Gastonia, N. C. , for the construction of a station to
operate on 1420 kc. with 100 watts power, unlimited time. The
Examiner, the report disclosed, found that the applicant was
financially and otherwise unqualified to operate the station
although it had been granted by the FCC, apparently without a
hearing, on October 15, 1935.
Roberts failed to appear at the hearing on a request
for extentions of time, but many witnesses from Gastonia,
including the Mayor pro tem, testified that he is without funds
to build the station and that "the people generally in Gastonia
have no confidence in his ability to operate a radio station. "
"Testimony shows that Roberts is without funds, even
to meet his actual living expenses", the Examiner said. "He
appears to be a man of unusual ability in the matter of writ¬
ing theatrical serials, which might be turned to a useful
purpose in radio programs.
"His friends expressed deepest sympathy for his
plight, but all who appeared a.s witnesses were of one accord
that he was not in a position to construct or operate a radio
station. "
XXXXXXXXX
- 8 -
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3/26/37
BALDWIN OITJMISTIC OVER HAVANA RADIO CONFERENCE
James W. Baldwin, Managing Director of the National
Association of Broadcasters, returned to Washington this week
after attending the preliminary North American radio parley
at Havana very optimistic over prospects of a satisfactory
agreement among "the United States, Canada, and Mexico.
"I think this conference will prove the most success¬
ful ever held on radio matters in North America", he said. "I
am satisfied that an agreement will be reached that will be
satisfactory to all parties."
Final accord on controversial matters had not been
reached when Mr. Baldwin left Havana. The conference was
scheduled to end the latter part of this week.
Whatever formula the engineers attending the parley
may devise for allocating frequencies among the three countries
will be subject to approval at the general conference to be
held next November, when all North American countries will be
invited to participate.
It is understood that the troublesome question
regarding the Mexican border stations was soft-pedalled at
the Havana conference. This was one of the issues that broke
up the Mexican parley four years ago.
The official United States representatives at Havana
are Commar. T.A.M. Craven, Chief Engineer of the Federal Com¬
munications Commission; Lieut. E. K. Jett, Assistant Chief
Engineer of the FCC; Gerald C. Gross, Chief of the International
Section; and Harvey B. Otterman, State Department lawyer.
XXXXXXXXXX
FMA DIRECTORS TO PLAN JUNE CONVENTION
Final arrangements for the thirteenth annual Radio
Manufacturers' Association's convention and membership meet¬
ings at Chicago, June 8-9, will be made at a meeting of the
RMA Board of Directors in April. President Leslie F. Muter
of the Association has tentatively planned the Board meeting
April 16 at The Homestead, Hot Springs, Virginia.
Several immediate industry problems and future sales
promotion plans also will be considered at the April meeting
of the RMA directorate. It is expected there will be early
developments in connection with the pending trade practice
rules for set manufacturers, still in negotiation with the
Federal Trade Commission.
9
JKY
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A banquet of the RMA in the Grand Ball Room of the
Stevents Hotel, Wednesday evening, June 9, is a projected
highlight of the RMA convention. A. 3. Wells, of Chicago,
again will head the banquet and convention arrangements commi
tee of RMA. The banquet will precede the opening on June 10
of the radio parts manufacturers National Trade Show at the
Stevens.
xxxxxxxxxxx
RULE RELATING TO LAWYERS AMENDED BY THE FCC
The Federal Communications Commission this week,
adopted an amendment to its rules of practices to permit
former FCC attorneys representing governments - Federal,
State, or City - to appear before the Commission without com¬
plying with Rule 101.7. The rule now reads.1
"101.7. No person serving as an attorney at law
in the Federal Communice tions Commission or on or after July 1,
1935, shall be permitted to practice, appear, or act as an
attorney in any case, claim, contest, or other proceeding
before the Commission or before any Division or agency thereof
until 2 years shall have elaosed after the separation of the
said person from the said service. The provisions of this
rule shall not apply to any person practicing, appearing or
acting as an attorney in behalf of any municipality, or State
or the Federal Government in any case, claim, contest or other
proceeding before the Commission or before any Division or
agency thereof. The term “attorney at law* includes attorney-
examiner. Nothing herein shall be construed to prevent any
former officer or employee of the Federal Communications Com¬
mission from appearing as a witness in any hearing, investiga¬
tion, or other proceeding before it. "
XXXXXXXXXX
U.S. RADIO INSTRUMENTS , MEASUREMENTS CIRCULAR REPRINTED
"Radio Instruments and Measurements", a circular of
the National Bureau of Standards, Department of Commerce,
copies of which have not been available for several years, has
just been reprinted.
Dr. J. H. Dellinger, Chief of the Bureau's Radio
Section, stated that the new issue is a reprint of the second
edition, originally published March 10, 1924, with errors
indicated and obsolete appendixes omitted. While much of the
subject matter of the Circular was written 20 years ago, it
is still of current value to engineers and students, according
to Dr. Dellinger. It was because of the insistent demands from
these groups that the reprinting was decided upon, he stated.
10
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Among the subjects treated in the circular are the
fundamentals of electromagnetism; the principles of alternat¬
ing currents; grapnical methods of solving radio circuit pro¬
blems; methods of measuring radio-frequency resistance, inductance,
capacity, and current; and formulas and data for the calcula¬
tion of inductance, capacity, resistance, and other quantities.
In all, the circular has 329 pages filled with essential infor¬
mation for everyone Interested in radio communication..
No stock of the circular will be available for free
distribution from the Bureau, but copies are obtainable from
the Superintendent of Documents, Government Printing Office,
Washington, D. C. , at 60 cents each.
XXXXXXXXXX
TRADE NOTES
The "Federal Communications Commission announced this
week that the hearing in the telephone investigation, set for
March 29, has been continued until April 5th.
An increase in the hours of operation of WBAX, Wilkes-
Barre, Pa. , from specified to unlimited was recommended to the
Federal Communications Commission this week by Examiner John P.
Bramhall on condition Rule 131 is complied with.
The Directors of Zenith Radio Corporation have voted
a dividend out of current earnings of $.50 per share on the
outstanding stock of the corporation, payable April 20, 1937,
to shareholders of record at the close of business April 9,
1937, according to High Robertson, Executive Vice-President
and Treasurer.
Denial of the applications of Harold Thomas, Pitts¬
field, Mass. , and H. 0. Davis, Mobile, Ala. , for construction
permits to operate stations on 1310 kc. and 610 kc. , respect¬
ively, were recommended to the Federal Communica tions Commis¬
sion this week by Examiners.
A brooklyn firm distributing radios has entered into
stipulations with the federal ^rade Commission to discontinue
unfair advertising representa tions in th<= sale of its products.
The resr>ondents are Frederica K. and Albert M. Frank, trading
as Custom-Bilt Radio Co. , 226 Adams St. , Brooklyn, N.Y. The
firm agrees to stop using the word "Gillette” as a mark,
brand or label for its midget radio sets.
XXXXXXXXXX
11
3/26/37
NBC ADDS THREE STATIONS BRINGING TOTAL TO 121
Carrying program service into two new territories
and expanding it in a third, the National Broe.dce sting Comoeny
this week announced the addition of three stations to the NBC
networks and the replacement of another. The additions increase
the number of NBC affiliated stations to a new total of 121.
The new territories to be serviced are Erie, Pa.,
and Wichita, Ka.ns. Station WLEU, Erie, will become an ootional
outlet of the NBC-Basic Blue Network on Thursday, Arril 1st.
Station KANS, Wichita, will become an optional outlet available
to either the NBC-Basic Blue or the NBC Basic ^ed Network on
the same date.
Expansion of service will occur at Richmond, Va.
WRTP, as the NBC-B'lue Network outlet, and WMBG, as the NBC-Red
Network outlet, will replace WRVA, a member of the NBC South¬
eastern Group, on June 27th.
XXXXXXXXXXXX
DYKE JOINS NBC AS EASTERN DIVISION SALES MANAGER
Ken R. Dyke, former General Advertising Manager of
the Colgate-Palmolive-Peet Company, and prominent in national
advertising organizations, will become Eastern Division Sales
Manager of the National Broadcasting Company on April 1st.
Mr. Dyke takes the place left vacant by Mr. John H. Bachem who
on April 1st will become Assistant to Roy C. Witmer, Vice-
President in Charge of Sales.
Mr. Dyke, who has just returned from a six months'
trip to the Far East, resigned his post with the Colgate-Palm¬
olive-Peet Company last July. Previous to that he was Vice-
President in Charge of Sales Promotion for the Johns-Mansville
Corp. At the time of his resignation from the Colga te-Palmolive
Pett Company, Mr. Dyke was Cha.irman of the Board of the Associa¬
tion of National Advertisers, a. Director of the Advertising
Research Founcation and a Director of the Advertising Federation
of America.
XXXXXXXXXXX
12
Heinl Radio Business Letter
2400 CALIFOftfrlA STREET
WASHINGTON, D. C.
j ' W8 Oft.., In
CONFIDENTIAL - Not (or Publicationi
- I i i i y v it
MAD 3 1 1 bo/
INDEX TO ISSUE OF MARCH 30, 1937.
Accord Reached As Havana Conference Concludes . 2
World's Radiobeacons Increase 22$ . 3
Stewart Explains Why FCC Does Not Take Ban Off Televi sion. . . . 4
Census Report Shows Sourt In Radio Industry. . . 5
RMA Board Meeting Changed To N. Y . 6
Philips Loses Important Radio Patent Case. . . . 6
Trade Notes . 7
Women's Committee To Make Radio Awards Wednesday . 8
U. S. Radio Exports Jump 27$ In January. . . . 9
U. S. Plans Radio Block System For Airlines . 9
BBC Names Talks Advisory Committee. . „ . . . . 10
Nazis Drown Out Anonymous Red Station. . 10
No. 1016
March 30, 1937
ACCORD REACHED AS HAVANA CONFERENCE CONCLUDES
The regional radio conference being held in Havana by
representatives of the United States, Canada, Mexico and Cuba
has reached an understanding on basic technical principles as a
preliminary step toward calling an inter- American radio conference
next November, according to a special dispatch to the New York
Times, The article continues:
"The Autumn meeting, it is hoped, will reach a formal
agreement on radio relations among the countries of the Americas.
Cuba will issue invitations to twenty-three countries, following
the closing of the conference March 29th, to meet in Havana on
November 26th in an effort to solve the unsatisfactory situation
in radio communica tions caused by the simultaneous use of certain
frequencies by adjacent nations with resulting interference.
"The present conference has been of a technical nature
and its conclusions are purely advisory. While no specific agree¬
ment has been reached concerning allocation of frequencies, all
the delegations express satisfaction with what has been accom¬
plished. T. A. M. Craven, Chief Engineer of the Federal
Communications Commission, and head of the United States delega¬
tion, in commenting on the conference, said:
"'The accomplishments to date at this preliminary con¬
ference have been outstanding in that for the first time in the
history of their radio relations, a common understanding has been
reached by the countries represented on the technical principles
that are basic, adoption of which is deemed essential if coordi¬
nation is to be accomplished,,
" 1 We have also paved tne way for stuay of the facts and
conditions that exist today in the chaotic and unsatisfactory
situation in short-wave communications in this hemisphere with
the view that, at the approaching November conference, all the
American nations will be in far better positions to suggest
effective means for meeting this situation. '
"The specific recommendations of the conference include
an increase in the regular broadcast band used for the national
broadcasting services from 550-1,500 kilocycles to 540-1,600,
thus increasing the available channels from ninety-six to 107.
"Fifty-eight of these would be set aside as clear
channels to be used by high-power stations in each nation, to
render service over wide areas. The remaining forty -nine channels
2
3/30/37
would be assigned for use by regional and local stations pro¬
viding, through engineering principles and location of stations,
against the present objectionable interference, on whicn the
delegates have reached a common definition for the first time.
" There is also a recommendation for a change in the
existing amateur band from 1,750-2,050 kilocycles to 1,715-2,000
and for extension of the existing bands allocated to State or
Provincial police,,
"A study looking toward elimination of interference
by radio therapeutic machines and other apparatus will be made
by all the attending countries and an international plan will
be drawn up to provide for emergency communications in the
event of disruption of normal channels of communication by
hurricanes, earthquakes and other disasters.
"Likewise, study will be given to adoption of suit¬
able regulations with respect to frequency bands above 1,600
kilocycles that might permit interchange of international police
communications.
"The delegations have refrained from touching on the
political phase of international radio problems, but it is
undeniable that this is likely to prove the greatest stumbling
block at the coming conference.
"It will be highly necessary for each nation to
establish standards of control for its own stations. In Cuba,
for example, due to lack of adequate regulations,, the inter¬
ference of stations has become so intense, not only with each
other but with stations in the United States,, that a wave of
protest has swept the nation. However, the economic situation
of the island's stations and political influences have thus far
prevented enactment of efficient measures of control."
xxxxxxxxx
WORLD'S RADIOBEACONS INCREASE 22%
The total number of radiobeacons in the world operat¬
ing regularly as aids to marine navigation, and excluding those
so operating only on request, has shown an increase of 22 per¬
cent, from July 1, 1935, to January 1, 1937, according to the
latest edition of Radio Adis to Navigation, 1937, published by
the Hydrographic Office of the Navy Department.
On July 1, 1935, there were approximately 311 radio¬
beacons in the entire worlo, of which 33 percent were in United
States waters. On January 1, 1937, the total number had increas
ed to 379, of which 33 percent were in United States waters.
Radiobeacons at the present time are distributed as follows:
North America, 153; South America, 13; Europe, 153; Asia 42;
Africa, 13; and Australia, 5.
XXXXXXXXX
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/
STEWART EXPLAINS WHY FCC DOES NOT TAKE BAN OFF TELEVISION
Problems which must be solved before the Federal
Communications Commission permits television stations to oper¬
ate on a commercial basis, as broadcasting stations, were
explained by Dr.
public address.
Irvin Stewart, Vice Chairman, recently in a
Pointing out that there are
mental television stations, he saia:
now 18 licensed experi-
!:The Commission is faced with two major problems.
The first is the determination of the time when television
can be placed upon a commercial basis. Involved is the matter
of standardization whether by the Commission or by the industry.
When television comes, it will be desirable for every person
owning a television receiver to be able to receive the trans¬
missions of every television transmitter within range. That
seems to mea.n that the transmitters and the receivers should
be built according to the same system.
"Experiments are still going on, inventors are still
pitting their genius against the problems remaining to be
solved. We cannot know that the system of tocay will not be
junked by the developments of tomorrow. To put television on
a commercial basis too soon may mean a standardization which
might retard development. To standardize at all man mean to
deliver television into the hands of a monoooly controlling
the patents essential to meet the specified standards.
"But suppose there is no standardization. Feceivers
may be built for one transmitting system which are not capable
of receiving programs from stations using other transmitting
systems. The ultimate consumer may have the alternative of
buying two or more television receivers or not being able to
receive the transmissions of a desired television station.
The owner of a television receiver may find it useless when
he moves into an area served by a transmitter using a differ¬
ent system. Standardization seems desirable, but the question':
which confront the regulatory boay are 'when1 and 'on what',
"The second major problem connected with television
is that of frequencies. Those television transmission systems
which have been best developed up to the present require enor¬
mous bands of frequencies. In connection with an informal
hearing held before the Commission last year banas 6 megacycles
or 6,000,000 cycles wide were requested for television trans¬
mission. That is, each television channel would take up as
much space in the ether as 600 conventional sound broadcast
channels or, roughly, six times the entire present broadcast
band. Each television transmitter would serve an area cor¬
responding roughly to the line of sight from the transmitter,
but its interference range would be substantially greater.
4
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3/30/37
"While television stations could be duplicated on
the same frequency at fairly close intervals, a total tele¬
vision band width of tremendous proportions appears to be
indicated. The Commission must determine how much space can
be allotted to television in the light of the need for fre¬
quencies for other services. Television may be glamorous to
others; to the Commission it still is a series of problems."
XXXXXXXXXX
CENSUS REPORT SHOWS SPURT IN RADIO INDUSTRY
Substantial increases in radio industry, employment,
wages and production, especially of short wave and automobile
sets, during 1935 are recorded in a report completed by the
U. S. Bureau of the Census covering the radio industry in its
biennial census of American manufacturing industries. The
census was conducted with the cooperation of the ^adio Manu¬
facturers' Association,
The 1935 Census report shows that the radio and
phonograph industry employed 44,792 wage earners, an increase
of 36.2 percent over 1933, and their wages of $42,910,316
exceeded the 1933 wage payments by 44. 7 percent.
Industry production in 1935 (at f.o.b. factory prices)
totaled $202,865,672, an increase of 70.1 percent over 1933,
including radio sets valued at $131 , 341 , 846 , as compared with
$70,553,334 in 1933.
Tube production in 1935 totaled 78,227,513 valued at
$28,973,820, compared with production in 1933 of 59,869,259
tubes valued at $25,215,080.
In units, the set production report for 1935 was
5,868,294 sets against 3,599,522 in 1933, including a marked
increase in short wave sets of 2,940,214 such sets compared
with only 115,519 short-wave sets in 1933. Also the great
expansion in automobile sets was recorded in production of
1,170,423 sets of this type in 1935, compared with 700,018 in
1933.
XXXXXXXXX
5
3/30/37
RMA BOARD MEETING- CHAINED TO N. Y.
The Spring meeting of the Board of Directors of the
Radio Manufacturers' Association will be held in New York
Thursday, April 22nd, instead of at Hot Springs, Va. , April
16th, as previously announced. The meeting is now scheduled
to be held in the Hotel Roosevelt, New York City, by those
changing the time and place. Bond Geddes, Vice-President and
General Manager, said that a much larger attendance was
assured.
X X X X X X X X X X X
PHILIPS LOSES IMPORTANT RADIO PATENT CASE
The important manufacturer of incandescent lamps
and radio products Philips, at Eindhoven, which owing to its
strong patent position practically controls the Netherland
radio market, is reported to have lost a patent case to a
telephone manufacturing company at Antwerp, Belgium, which
has a local representative in The Hague, according to a U. S.
Consular report to the Department of Commerce. The firm,
which is said to represent American interests, had registered
a patent in The Netherlands under No. 3195 covering the so-
called "push-pull" principle.
"Philips used this patent without approval or
license of the owner, who summoned Philips to court on the
basis of infringement of patent rights", the report stated.
"The latter company then tried to obtain a so-called emergency
or compelled license, which unaer the Netherland patent law
the Patent Office may extend when public interest or welfare
requires it. It is reported that in its defense before the
Patent Office the Netherland firm is said to have argued that
the principle involved might be circumvented by it without
infringing others1 rights, but only at far higher costs.
The Patent Office could not see how this affected Netherland
public interest, and advised the district court accordingly.
It seems that the telephone company's claim that Philips cease
the application of the push-pull patent in its manufacture was
decided favorably, but "that the right of compensation for any
product with the 'push-pull' sold after the date of decision,
was refused. The claimant appealed against this decision
passed on October 27, 1936, and the Court of Justice in The
Hague conceiting it on January 22, 1937, judged the claims
fully justified. The amount of compensation for patent infringe¬
ment sales will be decided later.
"This is one of the few cases in which Philios has
completely lost a radio law suit. However, the last word has
not yet been- spoken, for it is reported that the teleohone
company is still involved in 23 other suits with Philips. "
XXXXXXXX
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3/30/37
TRADE NOTES :
Collections during February 1937 of the five percent
tax on radio and phonograph apparatus by the U. S. Bureau of
Internal Pevenue were $464,853.41, an increase of ten percent
over the February 1936 collections of $423,673.38.
J. R. Poppele, Chief Engineer of WOP, recently
placed an order for 33 of the new Western Electric "Salt-
Shaker" microphones, which represents the largest single order
to date for this new type of broadcasting equipment.
Exclusive of politicals, NBC revenue for 1936 was
$33,613,633 of which 4% came from new advertisers and 96/ from
NBCfs repeat clients. There were 26 new clients in 1936 and
118 repeat-clients. This means that during 1936 82/ of NBC's
advertisers repeated on its networks with the 18/ new ones.
The 82/ repeat-advertisers gave NBC 96/ of its 1936 billings,.
"Seasonal slackening of activities" caused a decrease
of 3.7 percent in radio industry employment during December,
1936, according to the December report of the U. S. Bureau of
Labor Statistics. Of the eighty-nine manufacturing industries
included in the monthly government survey, f ifty- two showed
more employees in December than in the preceding month and
sixty reported larger payrolls, not including gifts or bonus
payments,,
The Federal Communications Commission this week was
advised to grant an application by Red Lands Broadcasting
Association, Lufkin, Texas, for a construction permit to build
and operate a station on 1310 kc. with 100 watts power day¬
time in a report filed by Examiner P. W. Seward. Denial of a.
similar application by J. P. Curtis and P. Lacy was recommended.
William S, Paley, President of the Columbia Broad¬
casting System, Gerard Swope, President of General Electric
Company, and Andrew W„ Robertson, Chairman of the Westinghouse
Electric & Manufacturing Company, have been added to member¬
ship of the Board of Directors of the New York World's Fair of
1939.
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3/30/37
WJSV's presentation of the "Parsifal" program of
the New York Philharmonic Symphony Orchestra, in Washington
Paster Sunday afternoon was badly marred by interference from
another station. Sometimes the voices on the interfering
station were as loud as the voices of singers who took part
in the "Parsifal" program,.
The Hundred Leading Network Radio Advertisers
placed a total of $52,971,493 for time on NBC and CBS Networks
during 1936, a study prepared by NBC 5 s Statistical Department
reveals0 Of this total, 031,532,725, or 59.5 % was invested
with the National Broadcasting Company.,
XXXXXXXXXX
WOMEN'S COMMITTEE TO MAKE RADIO AWARDS WEDNESDAY
Six of the best radio productions of the year, in
the opinion of leaders of more than 10,000,000 women affili¬
ated with the Women's National Radio Committee, will be
acclaimed as winners of the organization ' s annual awards at
a luncheon Wednesday at the Hotel St. Regis, in New York City.
For its third annual selections, the Committee is
weighing the merits of programs in six groups - musical,
dramatic, variety, news, children's and adults* educational,
the news classif ication being an innovation this year. Only
those offerings especially devised for radio presentation are
considered for awards.
G-uests of honor will be Mrs. Vincent Astor, Chairman
of Women’ s Activities for the 1939 World's ^air; Dr. Walter
Damrosch, and Mrs. Harold Vincent Milligan, former Chairman of
the Committee. Anning S. Prall, Federal Communications Com¬
missioner, will present parchment scrolls to the winnders.
Other speakers will be William S. Paley, President
of the Columbia Broadcasting System, and Af'lred J. McCosker,
President of the Mutual Broadcasting System.
XXXXXXXXXX
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U. S. RADIO EXPORTS JUMP 27$ IN JANUARY
Export trade of the radio industry in January 1937
showed an increase of 27 percent over January, 1936, according
to a report of the U. S. Bureau of Foreign and Domestic Commerce
Total radio exports in January 1937 were $2,584,207, compared
with $2,039,522 in January , 1936,
Receiving set exports last January numbered 59,457
valued at $1,584,538, compared with 46,951 sets exported in
January, 1936, valued at $1,243,672.
Tube exports numbered 653,520 units valued at
$280,597, compared with January 1936 exports of 491,354 tubes
valued at $227,822.
Exports of receiving set components in January, 1937,
were $522,775, compared with $315,064 in January, 19360
XXXXXXXXXX
U. S. PLANS RADIO BLOCK SYSTEM FOR AIRLINES
A radio block signal system for the airlines of the
country, which will inform the pilot of his exact position in
any sort of weather, is being planned by a committee of tech¬
nical experts of the Bureau of Air Commerce, according to
Mr. L. D. Lyman, writing in the New York Times last week.
"Recent developments in the practical application of
the ultra-high frequency radio bands", he said, "are the basis
for one of the most radical programs for airway beacons yet
undertaken by the government. The engineers and research
workers charged with the development are cautious in their
statements, yet laboratory experiments indicate that their
plan is practical.
"Experimental engineers employed by some of the big
broadcasting companies on television and by the government
have learned that for short distances radio frequencies above
40 megacycles, or 40,000 kilocycles, have certain character¬
istics which are not possessed by the frequencies used for
ordinary broadcasting and commercial sending and receiving.
"Their signals can be controlled easily and they will
go through weather and other conditions where static is present,
which interfere seriously with the bands now in use. Moreover
they require a very small power output.
"These factors are important in connection with their
use in aviation. The plan for which the government engineers
have great hope consists of the erection of a series of radio
rfansr or curtains, along the airways, each sending out a
distinctive signal both visual and audible. "
XXXXXXXX
3/30/37
/ /
/ X
# jr
/ BBC NAMES TALKS ADVISORY COMMITTEE
/ /
A Talks Advisory Committee has been established by
the British Broadcasting Corporation to advise on talks policy ;
to make suggestions for both the National and Regional programs ,
and to act as consultants in the planning of particular series.
The Committee will not be concerned with news talks, nor will
it deal with religious subjects and broadcasts to schools,
which are respectively the province of the Central Religious
Advisory Committee and the Central Council for School Broad¬
casting.
Sir Walter Moberly is Chairman of the Committee,
and the following have accepted invitations to serve on it:
Rt. Hon. Sir Francis Dyke Acland, M.P. , Mr. Arthur Bryant,
Hon. Sir Evan Charteris, Mr. N. R. Cummings, Mr. Bernard
Darwin (the well-known autnority on golf), Hon. Frances Farrer,
Prof. George Gordon, Sir Robert 31yth Greig, Mr. A. P. Herbert,
M.P. , Prof. Julian Huxley, Mr. G. Isaacs, Mr. A. T. Lennox-
Boyd, M.P. , Miss Megan Lloyd George, M.P., Miss Rose Macaulav,
Prof. J. H. Nicholson, and Mr. Robert Richards.
XXXXXXXX
NAZIS DROWN OUT ANONYMOUS RED STATION
/■
The radio sleuths of Dr. Joseph Goebbels, the
German Propaganda Minister, this week finally got on the
trail of the Communist who for a fortnight or more has been
disseminating Red propaganda in Germany by short-wave, accord¬
ing to aBerlin dispatch in the New York Times.
Up to Monday night, the whereabouts of the secret
broadcaster had baffled the German authorities, although the
announcer usually began his tirades with the statement that
the German radio listeners were being served from Hamburg by
the German Communist party.
Monday night's talk had scarcely gotten under way
when it was swamped by a chorus suggesting an agglomera tion of
steam sirens, foghorns and puffing donkey engines, all work¬
ing in unison, leaving the Communist speaker completely blotted
from the air.
XXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL - Not for Publication
\ r
A
INDEX TO ISSUE OF APRIL 2, 1937.
Congressional Inquiry Uncertain; FCC Probe May Broaden . 2
NBC To Present Ninth Government Program. . 3
NAB Moves To Rival ASCAP In Copyright Music Field . 4
New Rural Coverage Survey Started By The FCC. . 4
CBS Plans Huge Television Station Atop Chrysler Building . 5
Six Best Radio Programs Picked By Women's Committee . 6
Early Appointment Of FCC Secretary Is Predicted . 7
Sheppard Introduces Copyright Measure . 7
Crosley Explains Purpose Of N. Y.. Tie-Up . 8
Charles Weaver, Veteran In Fadio, Dies At 66 . 8
Nets Seen Taking Over Programming In "Magic Key" Move. ....... 9
Radio To Be Discussed At A.N.A. Convention . 10
3BC Consults Listeners On Their Tastes In Programs . 10
Trade Notes . 11
^adio To Give More Attention To Fine Music, Paley Predicts.. 12
Major Bowes' Income "Rated At $1,500,000 A Year . 12
No. 1017
<">T '
\ '■
CONGRESSIONAL INQUIRY UNCERTAIN; FCC PROBE MAY BROADEN
The Connery resolution calling for a broad Congres¬
sional investigation of broadcasting was up in the air this
week-end after reports were circulated that the Administration
had taken steps to halt the probe.
While the Committee was officially silent, it was
understood that it was split over whether or not to report
out the resolution and that several members are wavering0
Although the inquiry had appeared certain a week ago, the
change in sentiment was attributed to "strong influences".
On the other hand, however, a Government official
well informed on the situation asserted positively that the
President has not made any move to block the investigation.
It is also understood that members who have been pro¬
moting the resolution have warned that if it is not reported
out by the Rules Committee, the fight will be carried to the
House floor. There was even a rumor of impeachment proceed¬
ings involving two members of the Federal Communications
Commission.
Meanwhile, Commissioner George Henry Payne, Chairman
of a special committee investigating the George S. Smith case,
was assured the cooperation of the ^CC Bar Association, headed
by Louis G. Caldwell.
H. A. Van Orsdel, counsel for the Chesapeake &
Potomac Telephone Company, and Chairman of the Association's
Committee on Ethics, wrote Commissioner Payne that his group
is investigating the incident in which Smith, a Washington
lawyer, is charged with inserting material in the FCC files in
violation of Commission regulations.
There were reports current, also, that the FCC inquiry
may be broadened to include complaints by members of the bar
that they are unable to get business because of the well-
established tradition that only a small clique of Washington
lawyers are able to obtain concessions from the Broadcast
Division of the Commission.
It is not unlikely that the matter will be brought to
the attention of the full Commission at a meeting in the near
future.
2
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//
One proposal being considered by the House Rules
Committee was that an investigation, if made, should be done
by the House Interstate and Foreign Commerce Committee instead
of a special committee of seven. The proposal came from
Representative Cox (D„), of Georgia.
Members friendly to the FCC hinted that such a probe
might not be as severe as one conducted by Representative
Connery, himself, who presumably would head the special
committee.
The Interstate and Foreign Commerce Committee Chair¬
man is Representative Lea, of California.
XXXXXXXXXXXX
NBC TO PRESENT NINTH GOVERNMENT PROGRAM
A new weekly series, beginning April 25, entitled
"A Trip to Our National Parks", to be heard over the NBC-Red
Network, from 3 to 3:30 P.M.jES"1, will bring the number of
weekly broadcasts presented by the National Broadcasting
Company in cooperation with the United States Government to a
total of nine. The following nine programs will occupy ten
hours of time each week on NBC coast- bo-coast networks:
Daily Except Sunday. "National Farm and Home Hour", 12:30 to
1:30 P.M. ,EST, NBC-Blue Network.
Monday. "Hour of Memories", 2 to 3 P.M. ,EST, U. S. Navy Band;
"U.S. Army Band", 6 to 6:30 P.M.., EST, both over the NBC-
Blue Network.
Tuesday. "Shut-In Hour", request numbers by the Marine Band,
3 to 3:45 P.M. ,EST; "Have You Heard", under the auspices of
the U.S. Office of Education, 3545 to 4 P.M. ,EST, both
programs over the N3C-Blue Network
Friday. "Education in the News", under the auspices of the U.S.
Office of Education, 6 to 6:15 P.M. , EST, over the NBC-Red
Network.
Sunday. "The World is Yours" presented under joint auspices of
the U.S. Office of Education Radio Project, 11:30 to 12 Noon,
EST; "A Trip to Our National ?arks", under auspices of
Department of Interior, 3 to 3:30 P.M. , EST. Both of these
programs over the NBC- Red Network.
xxxxxxxxx
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f J
NAB MOVES TO RIVAL ASCAP IN COPYRIGHT MUSIC FIELD
Moving to free broadcasting stations from dependence
upon the American Society of Authors, Composers, and Publishers
in obtaining copyrighted music, the National Association of
Broadcasters' Directors have approved a plan to incorporate
independently its Bureau of Copyrights.
The creation of a separate corporate unit to handle
copyrighted works for radio was proposed by James W. Baldwin,
Managing Director of NAB. He suggested that the new organiza¬
tion may well take the form of the defunct Radio Program
Foundation,,
The NAB Bureau of Copyrights was established last
July as a subsidiary of the NAB headquarters under the direc¬
tion of Edward J. Fitzgerald.
XXXXXXXXXX
NEW RURAL COVERAGE SURVEY STARTED BY THE FCC
/ /
Smarting under Congressional criticism, the Broadcast
Division of the Federal Communications Commission has launched
another post-card survey of rural broadcasting coverage.
Some 31,000 post-card questionnaires have been mailed
to all fourth class postmasters and the Broadcast Division
expects to correlate the answers with information obtained
in a broader survey conducted in 1935.
Many of the Congressional critics, and even Irvin
Stewart, Vice Chairman of the FCC, have pointed out in recent
weeks what they charge to be the failure of the Commission to
provide for adequate broadcasting service to rural areas.
The questions asked of the postmasters are as follows
(1) Give the call letters of the radio stations which you
can hear most satisfactorily in your community in order of best
reception in the Daytime: (1) _ (2) _ _
(3)_ (4) ; at Night: ( l)
(2)_ _ (3) (4) _ :
( 2) Is reception clear and free from interference through
out the year in the Daytime _ at Night_ _ ? (Check)
If not, please explain wherein it is unsatisf actory in the
Daytime _ _ at Night _ .
(Cl Do you own a radio receiver? How old is it?
(4) Are your answers from your own observations? or a
reflection of the opinions of your patrons? _ _ fflieck)
(4) Any further remarks on radio recent ion _
XXXXXXXXX
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4/2/37
' CBS PLANS HUGE TELEVISION STATION ATOP CHRYSLER BUILDING
The Columbia Broadcasting System has aoDlied to the
Federal Communica tions Commission for permission to construct
one of the world's most powerful combined television and sound
transmitters at the top of the Chrysler Building in New York
City.
When fully modulated the proposed station will oper¬
ate at a peak power of 30 kilowatts, which is equal to that of
a transmitter soon to be constructed on the Eiffel Tower in
Paris and which previously had been described as the most
powerful television station on earth.
The transmitter, which is to be located on the 74th
floor of the skyscraper, will incorporate the latest develop¬
ments in high power wide band design. Because it will operate
on a frequency somewhere between 42 and 56 megacycles - that is
a wave band which can be picked up only as far as the distance
from the antenna to the horizon - it is expected that the sta¬
tion will provide coverage within a radius of approximately
40 miles over a total area of about 4,800 square miles.
The antenna is to be built around that portion of
the building immediately below the stainless steel needle
surmounting it. This will mean that a distance of less than
100 feet separates the transmitter from the antenna and that
thereby an almost distortionless transfer of power should be
assured.
The Chrysler tower was chosen as the best location
for the transmitter after an exhaustive study of the whole
New York skyline within a radius of one mile from that point,
according to Dr. P. C. Goldmark, who is at the head of
Columbia's television research department.
Columbia is not a newcomer in the television field,
Goldmark points out, but is merely continuing experiments
which it started many years ago. After the transmission of
low definition pictures over W2XAX five years ago elaborate
research was pushed by CBS both in this country and abroad.
The comparison of such experimental work with that done by the
British Broadcasting Corooration, as well as other radio organi
zations here and abroad, led to findings which make possible
the construction of the new station.
XXXXXXXXX
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4/2/37
SIX BEST RADIO PROGRAMS PICKED BY WOMEN'S COMMITTEE
Awards for the six best radio programs of the year,
as selected by the vote of more than 10,000,000 women affil¬
iated with the Women’s National Radio Committee, were presents
at the organization's third annual luncheon at the Hotel St.
Regis in New York on Wednesday last.
Raising the number of awards from the four presented
last year to six, the citations for 1936-37 were extended to
include programs in the musical, variety, educational, news,
children's and dramatic groups, which in the nation-wide poll
conducted by the organizat ion, were judged to be outstanding.
The symphony concerts broadcast over WABC's network
on Sunday nights at nine o'clock, under the sponsorship of the
Ford Motor Company, was voted the best musical program.
Rudy Vallee's Varieties, presented Thursdays at 8 P.M. , by
Standard Brands over WEAF' s network was chosen as the best
variety program for the second consecutive year.
The Chicago University nound Table, offered as a
sustaining program by the National Broadcasting Company on
Sundays at 12:30 P.M. , over WEAF' s network, won first place
among the educational programs. The five-a-week broadcasts
by Boake Carter, commentator, heard over WABC's facilities at
7:45 P.M. , was cited as the best news broadcast. This program
is presented by the Philco Radio and Television Corporation.
Among the children' s broadcasts first olace went to
Dorothy Gordonrs "Children's Corner", a sustaining program of
the Columbia Broadcasting System, heard Mondays, Wednesdays
and Fridays at 5:15 P.M. , over WABC's hook-up. In the dramatic
classification, the Monday night Radio Theatre, of which Lever
Brothers Company is sponsor, at 9 P.M. on WABC, led in the
balloting*
In the absence of Anning 3. Prall, Chairman of the
Federal Communications Commission, who was detained in Washing¬
ton on official business, the parchment scrolls were presented
by Mrs. William H. Corwith, Chairman of the Awards Committee
of the Women' s National Radio Committee.
In addition to these citations, two other special
scrolls were presented. One went to WOR, key station of the
Mutual Broadcasting System, for "its outstanding contribution
to serious music, through its consistent presentation of the
Lewisohn Stadium concerts and operas during the Summer season,
when there is a limited amount of fine music on the air. "
The eighth and final citation, characterized by
Mme. Yolanda Mero Irion, Chairman of the Women's Committee,
as a "super-award", was made to Dr. Walter Damrosch, dean of
American musicians and conductors in behalf of his fore-
6
4/2/37
sightedness nine years ago in grasping the possibilities of
radio for the dissemination of musical culture.'* Dr. Damrosch'
musical appreciation courses for the school children of America
are broadcast non-commercially over a nationwide WEAF-WJZ hook¬
up Fridays at 2 P.M.
xxxxxxxxx
EARLY APPOINTMENT OF FCC SECRETARY IS PREDICTED
While a half-dozen candidates are waiting anxiously,
Administration officials are understood to be about ready to
select one of them for the long-vacant post of Secretary of
the Federal Communications Commission.
The job has been vacant 11 months, or since the
resignation of Herbert L. Pettey. It was rumored last Fall
that it would be awarded for political services during the
presidential campaign.
The leading candidates are; E. Willard Jensen,
Secretary of the Business Advisory Council, Department of
Commerce; Thomas A. Brooks, Jr., Radio Editor of the New York
Journal ; Robert Berger, New York Radio Director of the Demo-
cractic National Committee during the campaign; John Carson,
former secretary to the late Senator Couzens, of Michigan; and
Joseph E. Keller, secretary to Commissioner Thad Brown,
XXXXXXXXXXX
SHEPPARD INTRODUCES COPYRIGHT MEASURE
Senator Sheppard (D. ), of Texas, introduced a bill
nate this week to amend the Copyright Act approved
1909, having direct effect on the broadcasters of
the country. Provisions of the bill relating to broadcasters,
read as follows:
"Sec. 2. (a) Section 25 of such Act is amended by
adding after subsection (b) the following new subsection:
"" (c) To pay to the copyright proprietor, in the case
of an infringement by radio broadcasting, such damages as to
the court shall appear to be just: Provided, That the res¬
ponsibility and liability for the use of copyrighted material
in broadcasting on two or more stations simultaneously shall
rest solely with the station originating the performance; And
provided further, That the responsibility and liability for the
use of copyrighted material in electrical transcrint ions and
other forms of recording made exclusively for broadcasting
purposes shall rest solely with the maker of such electrical
transcriptions and other forms of recordings and his agents
for distribution thereof to broadca sters. ' "
XXXXXXXX
7
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4/2/37
CROSLEY EXPLAINS PURPOSE OF N. Y. TIE-UP
Powel Crosley, Jr. , President of the Crosley Radio
Corporation, told the annual stockholders' meeting this week
in Cincinnati, that the Company had arranged to operate a
New York studio with wire connections to Cincinnati. The
studio is that of WHNC
"We are not starting this with the idea of its being
another network competitive with other national systems such
as National and Mutual", he said. "It will enable us to
render better service to advertisers and advertising agencies
in New York. "
He reported "steadily increasing volume" in the
company's broadcasting activities.
Mr. Crosley estimated the Company's loss from the
fire that destroyed its building January 24th at approximately
$500,000, fully Insured. The flood and fire, he said, caused
the Company to fall "considerably behind" in its last year* s
production in refrigerators.
All Directors and Officers were reelected.
XXXXXXXXXX
CHARLES WEAVER, VETERAN IN RADIO, DIES AT 66
An "old timer" in radio died this week. He was
Charles J. Weaver, Superintendent of R. C.A. Communications
central radio office until his retirement last January, Death
came Tuesda.y afternoon in St. Petersburg, Fla. , following an
operation.
Mr. Weaver for many years was associated with the
development of world- wide radio communication, having joined
the old Marconi Wireless Telegraph Company of America in
December, 1903, which later became the Radio Corporation of
America.
Born in London, Mr. Weaver received his education
in Scotland, then came to this country.
He was one of the "old-timers" in the days when
radio was known as wireless. After a short term as radio
operator with the Marconi Company, he was appointed manager of
several coastal stations, including that of Siasconset,
Nantucket.
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The story is told, that while he was manager at the
latter station, one of the most important on the Atlantic
Coast in those days, about twenty-eight years ago, a young
operator named David Sarnoff joined the staff as a junior
radio man. Mr. Sarnoff is now President of the ^adio Corpora¬
tion of America.
Upon the re-organizaticn of the central radio office
of the RCA in New York, Mr, Weaver was stationed there and
later became its Superintendent. He held that post until his
retirement, at the age of 65 years.
More than 300 associates and. friends were present
at a testimonial dinner on January 6, at the Downtown Athletic
Club, to signalize the end of his active duty in radio. Mr.
Sarnoff was a speaker. Mr. Weaver was presented with a bronze
plaque and a "nest egg" of savings bonds representing a value
of $1,400,
Surviving are his widow, Amanda Weaver, and a half-
sister who lives in London.
XXXXXXXXX
NETS SEEN TAKING OVER PROGRAMMING IN "MAGIC KEY'r MOVE
What is interpreted by agency men as the opening
shot in a fight by both NBC and Columbia to regain control
over the programming end of their commercials is the sudden
move by RCA turning over the complete direction of the "Magic
Key" program to NBC, according to Variety. The shift from
the Lord & Thomas agency becomes effective following the
program's April 4th broadcast and will involve a loss of busi¬
ness to the agency of between $1,000,000 and $1,250,000 a year.
"Understanding in the agency field is that, with
NBC taking the initiative", Variety continues, "the two major
networks have come to the decision that drastic steps must
be taken to stave off critical pressure from Washington, and
that this end can best be served by bringing the production
and booking phases of commercial shows back into the network
studios.
"Agency execs are skeptical of NBC or Columbia get¬
ting anywhere in this direction. Point out that it's been the
competitive flavor which has played an important part in
furthering the quality of air entertainment since 1932. It was
in this latter year that the networks started to lose their
hold on commercial program production, and it is this hold
that they purpose to make a sturdy try at re- winning lost
prestige.
9
4/2/37
"Webs feel that only by setting together on some
common ground of procedure can they have any effect on dis¬
ciplining the agencies and the accounts which have objected
to strictures as to entertainment content and commercial copy
which the networks have tried to impose. In the past when
an agency or account has been put on the carpet the invariable
reply has been, "If you don’t like it, we’ll pull out and go
over to another network,, 1
"Impression in the agency craft is that David
Sarnoff and William S. Palev have got together on the prob¬
lem and mapped out a far-reaching mode of operation; which
it is hoped will eventually find the advertisers subject to
stronger network influence.
X X X X X X X X X X X
RADIO TO BE DISCUSSED AT A.N.A, CONVENTION
The Association of National Advertisers will devote
a full half-day to radio discussion at its annual convention
in Hot Springs, Va. , April 26-28. There will be four talks
followed by general discussion,
John Karol , of Columbia Broadcasting System, will
discuss "Testing a New Program", Louis D. H. Weld, of
McCann-Erickson agency, will discuss statistical aspects of
radio. D. P, Smeiser, of Proctor & Gamble, and A1 Lehman, of
the A.N.A, and the Cooperative Analysis of Broadcasting, will
contrast city and rural listening habits and program tastes.
Robert J, Landry, of Variety , will speak on the showmanship
aspects of radio.
XXXXXXXXX
BBC CONSULTS LISTENERS ON THEIR TASTES IN PROGRAMS
The British Broadcasting Corporation, following
Mohamet’s example of going to the mountain, recently called
a conference of representative listeners to obtain advice and
criticism on BBC programs.
Five main questions formed the basis of the discus¬
sion: (l) What subjects interest you? (2) Who are your favorite
speakers? (3) What form of talk do you prefer? (4) At what
time do you listen? (5) What would you do if you were in charge
of BBC talks programs?
"It is the objective of the BBC to produce, whenever
possible, programs which satisfy the claims of responsible
opinion", BBC explained. "Similar conferences recently held
in London and Edinburgh, at which the interests of the
young and women listeners were discussed, proved of consider¬
able value to the BBC urogram-builders. "
‘XXXXXXXX
10
4/2/37
4 •
i ? TRADE NOTES
Jesse Butcher and Philip I. Merryman have Joined
NBC's Station Relations Department at Radio City headquarters,
Mr. Butcher has been managing talent and producing commercial
radio programs in New York for the last five years. Formerly,
he was a newspaper and publicity man, Mr. Merryman, a radio
engineer, has been associated with NBC's Washington studios
for ten years and has been Operations Supervisor of the
Caoital's NBC studios which include both WRC and WMAL since
1931
The Board of Directors of the National Association
of Broadcasters will meet April 7th in Washington to "appraise
current problems" and to schedule a date and place for the
Summer NAB convention. The Washington Hotel will be head¬
quarters.
Fire driven by high winds across a 125-acre tract
threatened this week to destroy $40,000 worth of radio equip¬
ment at a Bureau of Standards experimental station near
^orestville, Md. about 5 miles from Washington, D. C.
The British Broadcasting Corporation, in an attempt
to improve its television programs, has invited owners of
television sets to cooperate by sending in answers to the
following questions:
"What items in recent programs did you and your friends
like or dislike?"
"What difficulties (if any) are you meeting over recep¬
tion (a) for sound; (b) for vision?"
Suggestions for future programs are also invited.
Mrs. Bert Siebert McNary has resigned as secretary
to James W. Baldwin, Managing Director of the National
Association of Broadcasters. She had been with the organiza¬
tion for six years. Leonard D. Callahan, recently named
Assistant to the Managing Director, will assume most of Mrs.
McNary* s duties.
XXXXXXXX
11
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4/2/37
RADIO TO GIVE MORE ATTENTION TO FINE MUSIC, PALEY PREDICTS
Asserting that broadcasters and advertisers of the
country are sensitive to the " surprisingly high1* standard of
musical appreciation throughout the country, William S. Paley,
President of the Columbia Broadcasting System, told the Women’s
National Radio Committee last Wednesday that he believed the
industry would respond by giving i;an increasing amount of
thought and time to this category of entertainment. ,?
’’One of the greatest merits of our competitive
system”, Mr. Paley saiu, b 3 that the real and sincere desires
of the audience are recognized and fulfilled.” He cited as
examoles of this, the recent engagement of Arturo Toscanini by
the National Broadcasting Comoany, to conduct a series of radio
concerts, and the commissioning, by the Columbia Broadcasting
System, of six distinguished American comoosers to write music
especially for radio.
XXXXXXXXX
MAJOR BOWES ' INCOME RATED AT $1,500,000 A YEAR
Major Bowes’ income is now at the rate of nearly
$1,500,000 a year, according to Variety. This easily makes him
the top money maker of show business of all time, it adds.
"About a year and a half ago the Bowes earnings were
figured as approximately $19,000 a week from all sources or
about $1,000,000 annually", the article continues. "Although
that figure was considered a new peak for steady income on a
week-in-and~ week- cut basis, his take at present tops it by
almost 50$. This despite the lesser number of road units on
tour. His radio salary increase offset shrinkage elsewhere.
He is thought to get around 20Gs from Chrusler, a secret between
himself and the motor-maker.
"Two of Bowes’ former big coin sources are now all or
in part washed up. Film shorts, using amateur talent, that
brought him about $50,000 for 26 pictures a year and a half ago
are now entirely dead. Amateur stage units, which were bringing
the Major around $2,500 at that time are now down to estimated
$2,000 or so a week. Instead of from half-a-dozen to a dozen
units, the Bowes touring outfits now number only five, playing
strictly percentage dates on a part-time basis.
"His managing director berth at the Caoitol, N. Y. ,
still pays Bowes $500 a week. "
XXXXXXXXX
12
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENT! A L — No* for Publication
NATIONAL BROADCASTING COMPANY, Inc.
general library
SB ROCKEFELLER PLAZA, NEW YORK, N, Y,
INDEX TO ISSUE OF APRIL 6, 1937
U. S. Radio Official Assails "Educational Program Myth" . 2
BBC Notes Progress At Berlin Broadcasting Conference . 3
Hearst Applies For Two "Booster" Stations . . . . 5
Capitol Sets Up Own Broadcasting Studio . . 6
Radio Education Institute To Meet May 3-5* . 6
Static Forecasts Years Ahead Seen By Bell Engineer. . ,7
New Two-Way Police Radio Tried In Schenectady . 8
Trade Notes . . . . 9
Navy Bares Development Of "Radio Spy" . 10
Nazi Use Of Radio For World Propaganda Bared.. . 10
Payne Mentioned As GLO.P. Candidate For N.Y.C. Mayor . 12
Roy Howard’s Son Heads Continental Radio Co . .......12
No. 1018
. .
April 6, 1937.
U. S. RADIO OFFICIAL ASSAILS "EDUCATIONAL PROGRAM MYTH"
Assailing what he termed "a myth of modern broad¬
casting", William Dow Boutwell, Chief of the Editorial Divis¬
ion, U. S. Office of Education and Director of the Educational
Radio Project, cited the success of the programs sponsored by
the Office of Education to refute it.
Writing in the bulletin of the National Committee
on Education by Radio, Mr. Boutwell said?
"In the next five hundred words I will describe the
puncturing of a myth of modern broadcasting. This myth, a
frustrating fantasy, is worth killing because its execustion
may encourage the assassination of some of the more hideous
monstrosities that crawl out of our loudspeakers,
"What is this myth? You will find it wearing
various guises. You will find both broadcasters and educa¬
tors accepting it. You will find it cropoing out in many of
the speeches delivered at the recent National Conference on
Educational Broadcasting. You will find it in the report of
'4 Years of Network Broadcasting’.
"Briefly, the myth asks you to believe that, ’The
majority of the American people want entertainment from their
radios - they do not want education. 5 Sometimes you find it
couched differently. Prominent educators will say, ’Of
course we realize that educational programs can never be as
popular as "Amos and Andy" or Rudy Vallee, but they appeal
to the minority and that minority should be served, '
"That myth, that conviction, that a.ssumption is now
dead. It has been slain in the last nine months; murdered by
the combined strength of 300,000 American radio listeners,
"Little did these 300,000 listeners realize that they
were killing a modern myth when they wrote to the U. S. Office
of Education. They thought they were writing in response to
broadcasts presented by the Educational Radio Project, but
their letters, flowing into Washington in an ever-increasing
flood - ten thousand, fifteen thousand, twenty thousand per
week - have introduced a new fact in American broadcasting,
namely, that the public for education on the air is probably
as large as it is for entertainment.'
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4/6/37
"By what right can this claim be made? Three hun¬
dred thousand is small beside 4,200,000 letters recently
received on a soap series. It is small beside the other
records established by many commercial concerns. Yet 300,000
letters is probably more listener mail than any sustaining
educational program not created by network broadcasters has
yet rolled in. Considering the fact that prizes were not
offered, it is very heavy. Few, if any, sustaining programs
on NBC, CBS, or MBS can show listener response anywhere near
that of the five network programs now being presented by the
Office of Education.
"What does this prove? It proves that millions of
Americans want educational programs prepared to meet public
tastes and interests. To those who have examined this flood
of letters, there is clear evidence that educational programs,
adequately financed and skillfully produced, can compete with
any entertainment programs on the air. This evidence challenges
the moss-covered assumption that the public demand is solely
for entertainment and Issues a clarion call for a new defini¬
tion of 'public interest, convenience, and necessity.'"
XXXXXXXXX
BBC NOTES PROGRESS AT BERLIN BROADCASTING CONFERENCE
The British Broadcasting Corporation has just issued
a resume of actions taken at the recent International Broad¬
casting Union Conference in Berlin. The resume follows, in
part:
"The International Broadcasting Union, the members
of which are responsible for the broadcasting programs that are
followed by nearly 230 million listeners, has just terminated
its Winter meeting, which was held at the Adlon Hotel, Berlin.
Those who participated, as delegates or observers, numbered
ninety-four, and they represented the broadcasting organiza¬
tions or post, telegraph, and telephone authorities of
twenty-three European countries, as well as of the United
States of America, the Dutch East Indies, and Porto Rico.
"In the course of the meeting, four new member
organizations were admitted." the Bulgarian State Broadcast¬
ing Service ("All-India Radio"), and the National Association
of Broadcasters of the U.S.A.
"The Union, under the presidency of M. Maurice Pambert
(who, until recently, was the Administrateur Delegue of the
Swiss broadcasting organization) , was the guest of the Feichs-
Rundfunk-Gesellschaft (R.R.G. ), the representative of which,
Dr. Kurt von Boeckmann ( Intendant of the short-wave service,
and Director of Foreign Relations) , is one of the Vice-Presi¬
dents of the Union.
- 3 -
ft/ 0/ o <
"The Technical Commission, under M. Raymond Brail-
lard (Director of the Brussels Control Centre) examined the
European wavelength situation in detail. It noted a partial
improvement therein, and proposed a fresh effort to clear
certain interferences which still exist. The Technical Com¬
mission further drew the Council’s attention to the fact,
demonstrated by the measurements of the Brussels Control
Centre, that the situation in the field of broadcasting short
waves is becoming more and more alarming. This condition, it
is impossible to remedy effectually without working out a plan
for the systematic allocation of these waves on a world scale.
The Council decided to recommend to the postal and telegraphic
administrations that such a plan should be elaborated at the
Telecommunications Conference of Cairo in 1938. Another pro¬
posal of the Technical Commission approved by the Council
was to collaborate with the International Acoustics Commission
with a view to systematic coordination of technical studies in
this domain. The proposals of the Cairo Committee of the
Union were likewise approved.
"In another field, new recommendations concerning
the characteristics of music lines were worked out jointly
with some of the representatives of telephone authorities.
These were based on the detailed work of Dr. Braunmuhl of the
R. R. G-. , and constitute a considerable advance on previous
recommendations as to music lines. Lastly, the Council named
its delegates for the Conference of the C.C. I.R. (the Inter¬
national Radio Consultative Committee) which is shortly to
take place at Bucarest, ana expressed the hope that advantage
should be taken of the presence of technicians from all parts
of the world to make an unofficial stuay of the short-wave
situation.
"The numberous problems brought up by the use of
television were set forth in the reports of the R. R. G-. on its
relations to copyright and to the sound-film. As is well
known, television may be carried out in various way,s and in
particular by direct transmission of images and by the use of
an intermediate film, and the juridical problems that present
themselves, are both numerous and delicate. The Legal Com¬
mission’s conclusion was that transmission of images to the
public by means of television was simply the complement of the
transmission of sound. In other words, television is only a
form of ’radio-diffusion' , or broadcasting, and as such falls
directly within the sphere of activity of the broadcasting
organizations. The reports submitted are to be re-examined at
the next meeting.
"Copyright in general was also discussed. The Con¬
ference which was to have been held at Brussels for the revi¬
sion of the Convention of Berne has been postponed, in order
to allow of the completion of stuaies now in progress for
the elaboration of a world-wiae convention. • The Legal Com¬
mission has been concerned with the copyright question for
many years, and in 1935 drew up a memorandum of propositions
4
4/6/37
embodying the Union’s Viewpoint as to modification in the
Convention; on the present occasion it was decided to study
this new development. The broad ground taken is that the
rights and duties of broadcasting organizations vis-a-vis
authors, publishers, and executants should be reviewed as a
whole. It has to be understood that radio-diffusion, in view
of the important cultural part that it plays every day, should
be regarded as a public service the activities of which ought
not to be handicapped. All these problems were considered
so important that special committees were formed for each.
’’Finally, the recent and important development of
short-wave broadcasting has brought up problems that in this
domain, as in the technical, call for speedy solution; one of
these is the legal protection of the broadcast program, which
will be considered afresh at the next meeting.
"Certain matters were dealt with jointly by the
Legal and the Program Commissions, the President of the latter,
M. Dubois of Holland, presiding over both. One recommenda¬
tion approved by the Council was to publish before the next
meeting an account of all that had been accomplished by members,
either individually or collectively, to acquaint their listen¬
ers with the institutions and cultural activities of other
countries. The Council decided to press on with the Union1 s
studies of ways in which broadcasting could be utilized for
the ’rapprochement' of the peoples."
XXXXXXXXXX
HEARST APPLIES FOR TWO "BOOSTER" STATIONS
Applications for two synchronized "booster" sta¬
tions in Washington to be used contingent upon granting of
its application for a new local station in Washington were
filed recently with the Federal Communications Commission by
Hearst Radio, Inc.
The applications grew out of experiments conducted
by McNary and Chambers, Washington consulting radio engineers
for Hearst Radio, through synchronized operation of an experi¬
mental station in College Park, Md. , with WBAL, Baltimore, on
the 1060 kc. clear channel.
Because these experiments during the past month
have shown promise of success, it was stated decision was
reached to file the applications. They request construction
permits for two boosters to be operated on the 1310 kc. local
channel with 250 watts power daytime only which would be
operated synchronously with the main transmitter of the pro¬
posed broadcast station in Washington.
XXXXXXXX
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CAPITOL SETS UP OWN BROADCASTING STUDIO
The U. S. Capitol now has a ''Temple of Radio” ,
where members of Congress can "go on the air” without leaving
Capitol Hill.
Senator Henry Cabot Lodge (P. ), Massachusetts, and
Representative Maverick (D.), Texas, formally dedicated the
improvised studio last week.
The Temple of Radio is a room (No. 414 to be exact)
set apart in the old House Office Building.
Messrs. Lodge and Maverick were to have made dedi¬
catory speeches, but a couple of engineers were still tinkering
with some wires and telephoning their control rooms to ”run
me up to minus six” when the scheduled hour arrived. So the
news photographers recorded the event without sound.
"Act as if you were talking into the microphone",
they requested Representative Maverick.
"What shall I say?" Mr, Maverick asked. "I guess
I'll talk about the issues of the day. To hell with the
Republicans.' " he winked at Senator Lodge, who said nothing,
but smiled.
Meanwhile, the Senate Interstate Commerce Committee
has taken no action on the Pittman resolution to broadcast
special Congressional proceedings.
XXXXXXXXXX
RADIO EDUCATION INSTITUTE TO MEET MAY 3-5
The Eighth Annual Institute for Education by Radio
will be held in Columbus, Ohio, May 3-5. Features of the
Institute this year will be a broadcast by Dr. Joseph E. Maddy,
University of Michigan, on his weekly band lesson, an address
on "Radio's Responsibility for National Culture" by Gladstone
Murray, General Manager of the Canadian Broadcasting Corpora¬
tion, the first American exhibition of recordings of educa¬
tional radio programs, and an address by Dr. John W. Stude-
baker, U. S. Commissioner of Education, on "The Governments'
Responsibility for Educational Broadcasting, "
I Keith Tyler of the Bureau of Educational Research,
Ohio State University, Columbus, is in charge of arrangements
for the Institute, which will bring together scores of leaders
in radio, representing educational institutions and their
radio stations, the chains, and cc-nmercial stations, as well
as governmental agencies concerned with radio.
XXXXXXXXX
- 6 -
4/6/37
STATIC FORECASTS YEAFS AHEAD SEEN BY BELL ENGINEER
From records of solar activity gathered by astron¬
omers in the last 200 years, a rule has been devised that may
make it possible to forecast wo rid- wide radio receiving condi¬
tions five or six years in advance, according to an interview
with A. L. Durkee, engineer of the Bell Telephone Laboratories,
in the New York Times.
Mr. Durkee explained that each of the 11-year sun¬
spot cycles, the latest of which will reach its peak some time
in 1938 or 1939, has an aftermath called the ,:raagnetic cycle”
that profoundly affects short-wave radio transmission.
In studying the record of eighteen ll**year sun-spot
cycles, Mr. Durkee has found that the period of minimum spot¬
ting is an indication of the number of spots that will appear
during the succeeding pea.k, a half cycle later. The less
activity at a minimum, the less will be the activity at the
maximum, he found. With a lag of one to two years, the maxi¬
mum is followed by a period of magnetic disturbance to radio
that corresponds in severity to the degree of sun- spotting.
"No one knows what would happen to radio'1, said Mr.
Durkee, "if we should experience another sun-spot maximum such
as occurred in 1778, when 154 spots were counted by astron¬
omers, or in 1837, with its average of about 138 soots, or in
1870 with 139 spots. Since them, and during the relatively
brief history of short-wave radio, the average in any one cycle
has never progressed beyond about 104 spots, which was in 1917.
"Therefore, we are unable to predict what would happen
if the 1778 conditions should recur, as radio has never had such
an experience. In 1938, the last peak, only about seventy-nine
spots appeared, with the three-year average through the maxi¬
mum part of the cycle only registering seventy spots. The short-
waves were then so undeveloped that very few observations were
made as to the effect on world-wide channels when spots are
most numerous. This new method of forecasting indicates about
ninety spots will constitute the average maximum in 1938, 1939
or 1940.
"There is a likelihood that the 154-spot maximum of
1778 may recur some time in the future, or the number may go
even higher. It is impossible to predict what actually would
happen in such a case. It is certain, however, that it would be
a very severe test of short-wave communication. "
Mr. Durkee explained that evidence of periodicity of
the large-nuraber-of--spot years is meager; that is, they do not
seem to recur at constant intervals, hence it is considered
impossible to forecast just when the3r may arrive. It has been
found that radio suffers directly from the magnetic fluctua¬
tions in about the same proportion to the number of solar
7
4/6/37
blemishes visible. The magnetic wave generally lags a year or
two behind the spots, but sometimes occurs at the same time,
he said.
"It may be found in 1938 and 1939 that the very
short radio waves are relatively free of solar spot influ¬
ences", he continued. "As the spots increase in number the
increased ionization in the upper air creates a more perfect
conductor for waves between five and twenty meters, so they
gradually become more useful over world- wide distances as the
spots grow in number. In this may be found a future hope that
the present high efficiency of overseas communication can be
maintained. "
The coming peak in the -present cycle may furnish a
clue on which engineers can lay the foundations for further
pioneering in the field of short-waves, he said.
x x x x x x x:.x x
NEW TWO-WAY POLICE RADIO TRIED IN
SCHENECTADY
An experiment in centralized police control was
started in Schenectady under the direction of Police Chief
William H. Funston. City precincts were abolished and newly
designed and tested two-way radio auto patrols were put into
operation.
The system was formally dedicated this week with a
program broadcast from Station WGY. The broadcast marked the
first and last time that citizens will be able to tune in on
police messages, since the radio-patrol apparatus operates on
such low frequency that even powerful short-wave sets are not
equipped to intercept the signals.
The system is also static-proof, experts say. Broad¬
casts emanating from the 213-foot tower erected adjoining
police headquarters will cut through electrical barriers such
as high-tension wires and steel bridges, thus eliminating a
disadvantage common to most police two-way patrol systems. The
range of signal reception is five to nine miles.
Chief Funston’ s car, in addition to providing radio
contact with patrols, is equipped for rebroadcast through the
telephone system. In times of emergency he will be in constant
touch both with his patrolmen and with city officials while
actually participating in assignments outside his office.
The equipment was designed and built by the General
Electric Company.
XXXXXXXX
- 8 -
f
4/6/37
TRADE NOTES
Station WCBC, Zion, Ill. , was destroyed last Friday
in a fire of mysterious origin that also razed the Shiloh
Tabernacle, historic house of worshin in Zion. WCBS's loss,
exclusive of equipment, was olaced at $600,000. In included
a $30,000 organ.
Charles S. Sykes, son of Eugene 0. Sykes, Chairman
of the Federal Communications Commission's Broadcast Division,
and Miss Kate Farnsworth, daughter of Mr. and Mrs. Palmer
Farnsworth, Memphis, Tenn. , were married last Saturday in
Memphis. Judge Sykes was best man.
The Climax Radio & Television Corporation, Chicago,
manufacturer of radio sets, has agreed to discontinue employ¬
ing the words "Edison" , "Elgin", "Hamilton", or "Waltham"
as brands or labels for products so as to imply that they are
manufactured by or sold under a license or authorization from
Thomas A. Edison, Inc. , Elgin National Watch Co. , Hamilton
Watch Co. , or Waltham Watch Co. , respectively , when this is
not a fact, according to the Federal Trade Commission.
A total of 2,140 International broadcasts, in which
the finest features obtainable in the cultural, political,
entertainment, and news fields were presented, were carried by
the National Broadcasting Company and its two original sta¬
tions, WJZ and WEAF, from 1924 through 1936, a survey of the
twelve-year period, made by Max Jordan, NBC European repre¬
sentative, shows.
Earl Sowers, Promotion Director of the Richmond News
Leader , and Managing Director of WPHR, Petersburg, was elect¬
ed President of the Virginia Broadcasting System at the recent
annual meeting. He also becomes G-eneral Manager, a newly-
created position. He succeeds Hugh M. Curtler, of WCHV,
Charlottesville, Station WPHR moves to Richmond in the late
Summer and becomes WRNL, and as such will be the key station
of VBS. Edward Bishop, of WGH, was reelected Vice-President,
as was the Secretary-Treasurer, 3. C. Ondarcho, of WBTM.
XXXXXXXX
9
4/6/37
NAVY BARES DEVELOPMENT OF RADIO SPY"
Development of a "radio spy” by which enemy war¬
ships can be located or tracked long distances at sea has been
disclosed by the Navy Department.
Rear Admiral Harold G. Bowen, Chief Engineer of the
Navy, first reported development of the device by the Depart¬
ment's radio direction-finder experts to Congressional Appro¬
priations Committees which handle Navy funds.
Admiral Bowen declined to make public details of
the "radio spy", filing such information with the Committees
under a "confidential supplement. " Navy officers, while saying
the development was "secret" and could not be discussed, add¬
ed that it was possible it would be given its first compre¬
hensive test in naval maneuvers to be held in the Alaska-
Hawaii sector in the Pacific this year.
Under the same "confidential supplement !' , Admiral
Bowen also requested funds for the development of a system of
cryptography by which warships can transmit signals to another
vessel in the fleet which cannot be deciphered by an enemy
vessel.
Admiral Bowen said the Navy was bringing Navy vessels
up to the minute in radio equipment by replacing old sets with
the newest modern apparatus.
"There are about 2,000 radio receivers in the Navy,
and about half of them are obsolete insensitive and can be
interfered with easily", he said. "We have requested funds
to replace them with modern equipment."
Two types of portable radio equipment now are being
Installed on warship. One type, which requires six men to
handle, will be used to maintain communication between ships
and advanced bases by landing forces. The other set, designed
to be carried on a man's back is to be used by landing forces
in action and for inshore operations.
XXXXXXXXX
NAZI USE OF RADIO FOR WORLD PROPAGANDA BARED
The investiga tion of the desperate and now success¬
ful efforts of the Reich radio to drown out the so-called
secret station of the German Communist party revealed that
the effect of its broadcasts on Pan-German propaganda is
resented as much as its possible influence on public opinion
within the Reich, according to a 3erlin corre spondent of the
New York Times. He continues:
10
G \ O
"The Communist sender, wherever he may have located
his short-wave, could be heard clearly throughout Central
Europe and, theoretically, overseas.
"The radio, however, more especially short-wave
radio, is the Third Reich's most powerful instrument for in¬
culcating G-ermanic racial mysticism and National Socialist
ideas into citizens of other countries who are German in origin
"The purpose of the elaborate and powerful German
short-wave station at Seesen is described frankly in the
official book entitled The Reich Radio, issued by the Reich
Radio Company and the radio section of the Propaganda Ministry.
Introducing the chapter devoted to short-wave broadcasting,
the book states;
l!!An instrument is to be created which shall bind
all German racial comrades firmly to their homeland and the
new national community which has been brought into being here.
This process began with the Germans of North America. 1
"The latter statement is a reference to the fact
that the first move of the new National Socialist short-wave
broadcasters was to introduce in Anril, 1933, two months after
Chancellor Adolf Hitler came into power, a radio beam for
the United States and Canada. There are now six beams, cover¬
ing the whole surface of the globe.
"Writing in August, 1936, one of the directors of
the short-wave service stated:
"'The conquest of the nation by radio was a colossal
event, but of the 100,000,000 Germans in the world, some
15,000,000 German racial comrades overseas were at first left
out of this development. This was tragic, for these very
Germans who, winning new prestige for their motherland abroad,
often have a profound longing for the home country. It appear¬
ed almost hopeless to bring this other Germany nearer to Adolf
Hitler' s Reich.
"The radio nas succeeded, however. This task which
never before has been undertaken has fallen to the German short
wave sender.
Wherever he may be, in the skyscraper cities of
the New World or in a village school in the Brazilian jungle,
the radio hearer can switch in and become a member of the
German world community. '
"The article states that in 1935, 30,000 letters were
received and that all were answered.
"The great majority of those who thus were invited
'to switch in and become members of the German world commun¬
ity 1 are citizens of other countries. It is estimated by the
Foreign Office here (Berlin) that there are some 3,000,000
German citizens living abroad. The German short-wave directors
claim, however, to have a potential audience of 15,000,000
German 'racial comrades' overseas. They refer to 100,000,000
Germans in all the world, whereas the ^eich has a oooulation
of only 68,000,000."
XXXXXXXXX
- 11 -
4/6/37
PAYNE MENTIONED AS G.O.P. CANDIDATE FOR N.Y.C. MAYOR
Commissioner George Henry Payne , of the Federal
Communications Commission, was mentioned this week as a pos¬
sible candidate for the Republican nomination for Mayor of
New York City, in a syndicated and copyrighted article by
Lemuel F. ^arton. The article said, in part:
"In the early sessions of the fusion grouo, which
finally nominated and elected Fiorello H. LaGuardia, Mayor of
New York City, the three leading LaGuardia nioneers were
Samuel Seabury, W. Kingsland Macy, and George Henry Payne.
Now, in the Republican shifting and shuffling which prefaces
the selection of a candidate to run against Mayor LaGuardia,
Mr. Payne's name is the first out of the box. It is offered by
Mr. Macy, former State Chairman, in his publication, the
Suffolk Every week. This writer hears more and more talk about
Mr. Payne as a possible candidate - a Warwick tilting at the
throne. "
XXXXXXXXXX
ROY HOWARD'S SON HEADS CONTINENTAL RADIO CO.
Jack R. Howard, 27-year-old son of Roy W. Howard,
has been elected President of Continental Radio Co. , succeed¬
ing Karl Bickel, who was named Chairman of the Board of the
radio subsidiary of Scripps-Howard Newspapers.
Members of the Continental Radio Co. directorate
elected this week included Mr. Bickel, Mr. Hawkins, Jack
Howard, M. H. Aylesworth, former President of the National
Broadcasting Co. , now connected with the Scripps-Howard gener¬
al management, and Paul Patterson, Comptroller and General
Counsel for Scripps-Howard Newspapers and the radio subsidiary.
For the past six months, Jack Howard has been Assist¬
ant Secretary of the radio company and its Washington representa¬
tive. His duties in Washington have been taken over by Paul M.
Segal, Scriops-Howard radio attorney.
It was announced that James C. Hanrahan will continue
as Vice-President of the company, an Ohio corporation formed
in August, 1935. It owns and operates WNOX, Knoxville (Tenn. )
News-Sentinel station, and WCPO , Cincinnati Post station.
Applications have been filed for new stations in Toledo,
Columbus, Washington and Denver.
xxxxxxxx
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
C O N F I D E N T I A L — Not for Publication
INDEX TO ISSUE OF APRIL 9, 1S_ .
Celler Presses For Hearings On Short-Wave Station
2
Radio Progress Reviewed In Sarnoff Annual Reoort
India Awards Contracts For Nine Stations
4
ASCAP Forms Administrative Committee; Mills Chairman... .
Demand In Panama For Radio Receiving Sets Increasing .
Brooklyn Case Hearing Ends After Three Weeks .
French Television Restricted To Government .
NBC's March Revenue 19$ Up Over Year Ago .
South African Radio Referendum Proves Flop. . . .
5000 Radio Receivers To Be Distributed To Chinese Schools. . . .
Mutual Revenue For March Gains 11$ .
Foreign Radio Advertisements Banned By Dutch .
CBS March Billings Set New Record .
Japanese Tighten Up On Short-Wave Sets . .
Aerial Medical Service Unique Radio Unit . 10
Sarnoff Heckled At Stockholders' Meeting . 11
NBC Starts New Television Tests . . . 12
Chain Store Clashes With WCAU In "Censorship" . 12
No. 1019
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CELLER PRESSES FOR HEARINGS ON SHORT-WAVE STATION
Representative Celler (D. ) , of New York, this week
predicted that the House Naval Affairs Committee shortly will
schedule hearings on his bill to establish a government-owned
short-wave broadcasting station in Washington. There were
Indications that the hearings may start within the next fort¬
night.
The Pan American radio station proposal has been
pending for several years, but its snonsors now insist that
it has the backing of the Administration and has an excellent
chance of becoming a law.
Congressman Celler1 s bill authorizes an aopropriation
of $700,000 for construction of the station and $100,000 annually
for its maintenance. Commercial advertising would be barred,
but commercial stations would be permitted to use the facilities
under conditions proscribed by the U. S. Office of Education.
Commissioner George Henry Payne, who is one of the
promoters of the station, has charged that commercial broad¬
casting interests have been responsible for the delay in con¬
struction of the station, which was authorized at the Montevido
Conference four years ago.
The station, if built, will operate on the short-wave
frequencies allocated to the Navy Department but in some
instances lent to commercial broadcasters.
Other radio legislation appeared to be at a standstill
tnis week as the Senate continued to concentrate on the Presi¬
dent1 s Supreme Court reform proposal and the House concerned it¬
self with other matters.
Indefinite delay was foreseen on the Wheeler prooosal
to curb the acquisition of broadcasting stations by newspapers.
The Pittman resolution to provide for the broadcasting of special
sessions of Congress was still lying idle in the Senate Committee
on Interstate Commerce.
On the House side the ^ules Committee was still hold¬
ing up the Connery resolution for a broad radio inve stigation
with the chances about even as to whether it will be reported to
the House, with or without amendments.
X X X X X X X X
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4/10/37
RADIO PROGRESS REVIEWED IN 3AR 10 FF ANNUAL REPORT
The Radio Cornoretion of America "has moved forward
on every front covered by its operations - manufacturing, broad¬
casting, communications, research, patents, and television11,
David Sarnoff, President, declared in a. statement made to FCA
stockholders in New York City this week.
A summary of his review follows:
11 MANUFACTURI MG : At the spring meeting of its distributors, our
manufacturing division will introduce a new
line of RCA Victor receiving sets, phonograoh combinations, and
other products. The market trend is definitely toward improved
quality of performance and appearance.
"BROADCASTING: In our broadcasting operations, the substantial
advance made during 1936 in the commercial
position of the National Broadcasting Company has continued.
* COMUNI CAT IONS: General increased business activity has
caused a larger volume of foreign corres¬
pondence, increased foreign travel, and greater traffic in the
exchange of international broadcasting programs. All these
have resulted in a larger volume of business for our communica¬
tion services. Both R. C. A. Communications and Radiomarine
Corporation are benefiting from this increased business activ¬
ity in the foreign field.
"RESEARCH: Our leadership in research, covering every devel¬
opment of the radio art, continues to produce
improvements in broadcasting and receiving equipment, and in
all other electronic applications. We are maintaining unabated
our research efforts in the promising field of ulstr-short
waves. In the conquest of this part of the spectrum, lies the
hope of perfected television and facsimile, as well as the
establishment of other new radio services.
"TELEVISION: Technically, the art of television needs still
further improvement in transmission as well as
reception. As these improvements are made, the cost should
decrease and thereby reduce the magnitude of the financial
problems of establishing a nation-wide television service.
"The Columbia Broadcasting System has just
announced its plans to enter the field of experimental high-
definition television. ^hat company has placed with us, this
week, an order for the manufacture of a modern RCA television
transmitter to be installed on the Chrysler Building in New
York City.
3
4/9/37
11 FINANCIAL ; Net profit, after all deductions, will be
approximately $2,200,000 for the first quarter
of 1937, compared with $1,287,000 for the first quarter of
1936. This is an increase in net profit of more than $900,000
for the first three months of this year, compared with the
same period of last year. After allowing for the quarter's
preferred dividend charges, amounting to $808,000, there
remain $1,391,000, equivalent, to ten cents oer share of com¬
mon stock, against a deficit of aooroxima tely one cent per
share in the corresponding quarter of last year. i:
XXXXXXXXX
INDIA AWARDS CONTRACTS FOR NINE STATIONS
Awards have just been made for nine broadcasting
sets, bids for which were recently opened by the Government
of India at New Delhi. The successful bidder for 4 medium
wave 5 kw. sets and one short-wave 5 kw. set was the Marconi
Company, while 4 short-wave 10 kw, sets were awarded to the
Philips Electrical Company,
Philips’ bid on the four 10 kw. sets was Rs. 131,000
each, f.o.b, Indian port, or Ex. 133,000, f.o.b, Delhi.
Awards were made on the basis of a 4,000 working
hour guarantee on valves and also a guarantee against price
increase for valve renewals during the next five years.
Deliveries were 32 weeks for the first set, 40 weeks for the
second, 48 weeks for the third and 56 weeks for the fourth.
Erection is going to be done under Government of India super¬
vision although Philips is supolying the erection engineer
who will be on Government payroll from the arrival of the
first set to the complete installation of the last set.
British bids on the 10 kw. sets were very slightly
over the Philips’ bid; their valve guarantee was only for
2,000 hours. Marconi bid ^s. 75,125 each f.o.b. on the
medium wave sets and ^s. 80, 252 fo.b. oort with the addition
of approximately Rs, 38,000 for aerial, installation and mast
lights on the short wave set. These awards were also based on
valve guarantees and guarantees against price increases.
The value of the rupee in India is 36.9 cents in
U. S. currency.
XXXXXXXX
4
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4/9/37
ASCAP FORMS ADMINISTRATIVE COMMITTEE; MILLS CHAIRMAN
The American Society of Convoosers, Authors; and
Publishers this week reorganized its administrative set-up by
forming an Administrative Committee with E. C. Mills, former
General Manager, as Chairman,,
John G. Paine, Chairman of the Board of the Music
Publishers' Protective Association, was selected to become
General Manager, succeeding Mr. Mills, who will now be relieved
of most of his administrative duties,
The other members of the Committee are Gene Buck,
President of ASCAP, Irving Caesar, Louis Bernstein, and Walter
Fischer.
xxxxxxxxxx
DEMAND IN PANAMA FOR RADIO RECEIVING SETS INCREASING
The demand for radio receiving sets in Panama has
been steaaily increasing since the inauguration in 1935 of
regular radio broadcasting within the Republic, according to
Assistant Trade Commissioner A. R. Randolph, Panama, in a
report to the Electrical Division, Bureau of Foreign and
Domestic Commerce, Department of Commerce.
Imports of radio receiving sets into Panama, which
totalled 1,618 units in 1934, advanced to 2,558 units in 1935,
and registered a further increase in 1936 when imports were
recorded at 3,120 units, practically all of which originated
in the United States, the report states.
The average price paid by the consumer for receiving
sets of the combination short wave and broadcast bands is
approximately $60. It is believed that lower Driced units
would stimulate sales in the Republic, according to the
Commerce Department.
Seven broadcasting stations are in operation in the
Republic at the present time and three additional stations
which have now been licensed and assigned wave length and
frequency have not yet commenced broadcasting, it was stated.
Woodwork in radio receiving sets intended for use in
Panama should be constructed with strict regard for the warm
humid climate. All metal parts must be protected against
corrosion since moisture gets into any exnosea and susceptible
part According to John H. Payne, Chief of the Electrical
Division, sets st maturely correct for American use often
deteriorate rapidly in the presence of the excessive humidity
in many tropical countries.
XXXXXXXX
- 5 -
4/9/37
BROOKLYN CASE HEARING ENDS AFTER THREE WEEKS
The now celebrated ''Brooklyn case", which has been
pending before the Federal Communications Commission and
its predecessor, the Federal Radio Commission, for several
years on Friday completed another stage in its progress. Hear¬
ings, which have been conducted daily for the last three
weeks, were concluded..
It is expected that the FCC will take several weeks
to study the voluminous testimony before reaching a decisionc
As the case was held before the full Commission,
practically all other matters before the regulatory body
have been delayed,
XXXXXXXXX
FRENCH TELEVISION RESTRICTED TO GOVERNMENT
M. Jardillier, Minister of P.T.T. , has announced
that, in order to avoid the difficulties which had been
experienced in the development of broadcasting, the Government
has decided that television experiments should be made by
the State in collaboration with specialists only, according to
World-Radio. He has, therefore, refused to allow ^adio-
Toulouse to make television transmissions. ^his is evidently
the reason why Poste Parisien has not succeeded in obtaining
permission to transmit television, in suite of having installed
the Barthelemy system. Since the beginning of the year, trans¬
missions of white lines, squares, rectangles, and other geo¬
metrical figures have been made from the rue de Crenelle from
10 a.m. to 10:30 a.m. and from 4:30 p.m. to 5 o.ra. in order to
assist manufacturers in testing their apparatus.
The Minister of P.T.T. has decided upon the construc¬
tion of a new ultra- short-wave transmitter for the television
station of the Eiffel Tower. The Broadcasting Service will
take steps to increase the power and range of the station to
permit the transmission of television under the best conditions
possible at the present moment. Further details of these
improvements will be given later.
XXXXXXXX
- 6 -
4/9/37
NBC'S MARCH REVENUE 19$ UP OVER YEAR AGO
NBC network revenue for March, 1937, climbed. 19$
over the corresponding month last year - the total of
$3,614,283 making the gain for the first quarter of 1937 24$
ahead of the same period in 1936.
Individual NBC network figures for March, 1937, give
the NBC-Blue Network $1,082,961, and the NBC-Red Network
$2, 531, 322.
The first-quarter total for 1937
compares with $8,433,988 in 1936.
XXXXXXXX
$10,452,064 -
SOUTH AFRICAN RADIO REFERENDUM PROVES FEOP
The radio referendum recently conducted by the
South African Broadcasting Corooration was far from being
successful, according to the U. S. Department of Commerce.
Less than 50,000 replies were received to the 157,000 inquir¬
ies sent out, and for this reason: it is said that the Board
will not publish the results of the referendum. Meager though
the results were, the Board is proceeding on the theory that
the votes represent opinion throughout the Union, and doubt¬
less its actions in the immediate future will be guided by
the response it has received.
It is believed that there will be a reduction in
the ratio of Afrikaans in Johannesburg broadcasts and other
districts where votes showed an overwhelming demand for uni-
lingual programs. In order to bring this into effect, a new
transmitting station at Springf ontein will be erected at a
cost of L40,000, and will be connected with Port Elizabeth by
land line, for broadcasts of completely Afrikaans services.
It has been decided to send the General Manager of
the Corporation on a brief trip to England, to investigate
latest advances made in broadcasting and in television.
According to estimates based on the result of the
referendum, 700,000 people in the Union listen in on the
160,000 licensed sets. Of these, 75,000 (slightly less than
one half) are on the Rand. These figures indicate that there
is still a tremendous market here for sales of new sets. It
is thought that practically 100 percent of the sets in the
Union are licensed, and that there is little, if any, pirating.
XXXXXXXX
7
■ -I
4/9/3?
5000 RADIO RECEIVERS TO BE DISTRIBUTED TO CHINESE SCHOOLS
To supplement the two thousand radio sets now in¬
stalled in the schools of China, the Ministry of Education
has just ordered the distribution of an addit onal five
thousand radio receivers to schools, according to a report
to the Commerce Department from the American Commercial
Attache, Shanghai.
The Chinese Government electric works at Shanghai
which furnishes government supplies is manufacturing the
majority of the radio sets. The Central Broadcasting Station
at Nanking has been instructed to furnish daily broadcasts on
educational and scientific subjects, the reoort states.
XXXXXXXXX
MUTUAL REVENUE FOR MARCH GAINS 11%
The Mutual Broadcasting System's gross revenue for
the month of March totaled $212,861.0?, an increase of 11 per¬
cent over March, 1936.
The cumulative total for the first quarter gives
MBS $602,311.16.
X X X X X X X
FOREIGN RADIO ADVERTISEMENTS BANNED BY DUTCH
A Netherlands ministerial letter has been sent to
radio distribution stations prohibiting the transmission of
foreign radio advertisements or of programs consisting chiefly
of advertisements (such as the Luxemburg station).
XXXXXXXXXX
A favorable report was filed by Examiner Melvin H.
Dalberg this week with the Federal Communications Commission
on the application of WATR, Waterbury, Conn,, for authority to
shift its frequency from 1190 to 1290 kc. and increase its
power from 100 to 250 watts and its ooereting hours from part
time to unlimited.
XXXXXXXXXX
- 8 -
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4/8/37
CBS MARCH BILLINGS SET NEW RECORD
Time sales on tlie Columbia network for March, 1937,
totalled $2,559,716, an increase of 17 t Q% over March, 1936,
which grossed $2,172,382. This, a record-breaking March,
is the second highest month in CBS history, following October,
1935, when billings reached $2,714,808. Cumulative total
for the first quarter of 1937 is $7,202,653, an increase of
20.4$ over the same period last year.
X X X X X X X X
JAPANESE TIGHTEN UP ON SHORT-WAVE SETS
A newspaper clipping, submitted by U. S. Assistant
Trade Commissioner Carl H. Boehringer, Tokyo, cites the case
of port police tightening up on short-wave radios through
the seizure of such a radio from a person not a subject of
Japan. The owner of the radio was charged with having pos¬
sessed a short-wave radio without a proper license. This
incident took place in Yokohama.
Gendarmerie officials advised a representative of
the 11 Japan Advertiser'^ staff that they believe short-wave
sets have been imported generally, although their use is
virtually prohibited by law, and they intend to handle the
above case vigorously as a warning to others. Persons violat¬
ing the wireless telegraphic regulations governing radio sets
are liable to a maximum fine of 1,000 yen or imprisonment up
to one year and confiscation of the set, according to the
officers. The outcome of the owner is not as yet known.
XXXXXXXX
Stromberg Carlson Telephone Manufacturing Company
and subsidiary makes the following financial report for 1936 i
Net profit after surtax, $235,531, equal, after annual divi¬
dend requirements on 9,768 shares of 6-| percent cumulative
preferred stock, to 63 cents each on 273,280, no-oar shares of
conmon stock. This compares with $46,654, or $4.66 each on
10,000 shares of 6i- percent preferred stock, earned in the
preceding year.
XXXXXXXXXX
9
4 A
4/9/37
aerial medical service unique radio unit
A unique radio organization of the Antipodes is
the "Aerial Medical Service" in Australia.
As explained by U. S. Consul John W. Dye, of Mel¬
bourne, it was founded sometime in May, 1928, under the
auspices of the Australian Inland Mission. Baby "pedal sets"
form the equipment sold to inland settlers. There are now
about 50 "pedal sets" in isolated outposts throughout
Australia. Cloncurry, in the State of Queensland, is the
headquarters or tie location of the mother radio station.
The source of power for the transmissions is a small high
tension generator which, instead of being engine driven, is
operated by bicycle pedals. This provides a simple, constant
power supply, which requires little or no attention to keep
it in working order.
The messages are set from the "pedal sets" in Morse
code, but it is not necessary for the station people to know
the code. Supplied with each machine is an automatic key¬
board. This machine has a keyboard exactly like that of a
typewriter. To send a message, all that one has to do is to
press down the appropriate keys, just as though one were
typing a letter, and the machine automatically sends the cor¬
responding Morse code signals.
On these sets messages for advice and medical helo
are sent, and usually picked up by the Cloncurry station. At
Cloncurry there is an aeroplane always awaiting, with a doctor
standing by. The plane has a cabin sufficiently large to
carry a patient on a stretcher.
The Victorian branch of the Association is respons¬
ible for the newly established base at Wyndham, in West
Australia. Another base is at Port Headland, West Australia,
which is under the West Australian administration.
The wireless sets have been designed and built by
an Alfred Traeger, now chief wireless engineer of the Aerial
Medical Service. It is understood that the cost of installing
wireless sets in the individual outposts or homesteads is
about L80 (approximately $320).
XXXXXXXXXX
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4/9/37
SARNOFF HECKLED AT STOCKHOLDERS' MEETING
The annual meeting of the Stockholders of the Radio
Corporation of America, held Tuesday afternoon in New York City,
was almost turned into complete disorder as "boos" and cat¬
calls were hurled at David Sarnoff, President, who presided
over the meeting, according to the New York Times, "When a stock
holder rose to defend Mr. Sarnoff, he was greeted with cries
of "Stooge.1 ”
"There were about £50 persons at the meeting", the
Times reported. "The disturbance began when Mr. Sarnoff announc
ed the names of four Directors to be voted upon for re-election
to the Board for three years. Particular objection was voiced
by Lewis Gilbert, who said he 'represented 800 shares', against
the appearance on the ballot of the names of Edward J. Nally
and Frederick Strauss.
"Mr. Nally and Mr. Strauss were attacked by Mr. Gil¬
bert on the ground that they ’held no stock whatsoever in the
company, and therefore, should not represent the stockholders.’
He added that it was his intention to 5 instigate a protest vote
against the present directorate. 1
"This, apparently, was ail that a handful of stock¬
holders needed to hear, for almost immediately a dozen or more
stockholders jumped from their chairs to uphold Mr. Gilbert's
contentions. Mr. Sarnoff, who by now was constantly calling
for order, requested the dissenting group to 'at least observe
the elementary rules of parliamentary procedure', and was greet¬
ed with ’boos. '
"However, his request Droved futile, for a woman
stockholder, who identified herself as Miss Anna E. Robinson,
challenged Mr. Sarnoff* s ability as President of the Company
and demanded that the present Board of Directors, which she
termed ’nothing but a group of bankers and stock brokers’ be
replaced by men who 'knew a little more about the technical
side of the radio business. ’ She added that she was opposed
to 'banker management that is totally ignorant of the affairs
of the Company it directs.' She also demanded to know 'why
the investors do not get more consideration. 1
"Mr. Sarnoff, who was talking into a loud-speaker
system, indicated that if order were restored, he would gladly
answer her question. In a few minutes the situation quieted
down somewhat and Mr. Sarnoff said:
"’If this lady knew personally, as I do, those Dir¬
ectors which she now attacks, I am sure that she would not hold
them incompetent. They have devoted years of untiring and
unselfish devotion to the affairs of our Company and deserve
a vote of thanks. '
The Directors were re-elected,
XXXXXXXXX
- 11 -
4/9/37
NBC STARTS NEW TELEVISION TESTS
Field tests of RCA experimental television with the
new 441-line definition, were resumed tnis week by the National
Broadcasting Company. The tests will continue throughout the
Spring and Summer months.
Test programs will be televised daily from the NBC
transmitter in the Empire State Tower. Quality of reception
will be checked by NBC engineers on more than 75 receivers plac
ea at selected points throughout the metropolitan area.
0. B. Hanson, NBC Chief Engineer, said the object of
the new tests, which represent the latest development in seven
years of television experiment by NBC, is to determine the hone
program potentialities of high definition television. RCA
television of 441-line definition has been in operation in the
laboratory since last December, but this will be the first test
under practical field conditions.
XXXXXXXXX
CHAIN STORE CLASHES WITH WCAU IN CENSORSHIP"
The Great Atlantic & Pacific Tea Co. , which has been
waging a campaign against a proposed Pennsylvania chain store
tax, clashed with Station WCAU and the Columbia Broadcasting Co
over its "Bandwagon" radio program in Philadelphia last week.
The Company had planned to present on its program
Thursday two speakers who were to talk against the chain store
tax bill now being considered by the Pennsylvania State Legis¬
lature. 0. C. Adams, President of the A. & P. Southern Division
charged that the speakers were not permitted to deliver thier
addresses. As a result, the Company inserted full-page
advertisements in Philadelphia newspapers Friday headed: "This
Is the Story the Radio Kept From You. " Below this caption,
the addresses of Eleanor Davis, economist, and G. A. Boger,
President of the Lehigh Valley Cooperative Farmers' Association
in Pennsylvania were printed.
In explaining the radio station's stand, Dr. Leon
Levy, President of WCAU, said: "Columbia Broadcasting System
and WCAU sell time to advertisers solely for the advertising
of their goods and services. We refuse to sell time for the
discussion of controversial public issues or dissemination of
propaganda to influence legislation. "
Dr. Levy then offered free time for discussion of
the issue if speakers of both sides were on the program. The
offer was accepted, and the deba.te was held on the following
Saturday night.
X X X X X X X
12
S-:
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
P
> i
A
CONFIDENTIAL — Not for Publication
smmim h,
LEGAL. DePABTMEWT
I I'll 8 W f
Ill ADD 1 I . '
INDEX TO ISSUE OF APRIL 13, 1937
Dunlap Contributes Notable Marconi Biography . 2
Payne Proposes Broadcast Station Tax . 5
U. S. Report On Havana Parley Submitted To State Department...?
NAB Convention To Be Held June 20-23 At Chicago . .....10
RMA On Program Of C.I.O., U.E.R.O. Official Says.. . 10
Trade Notes . 11
Radio Sparsely Represented At Tridiron . 12
U. S. Provides 11% Of Irish Radio Imoorts . 12
No. 1020
j
April 13, 1937.
CONTRIBUTES NOTABLE MARCONI BIOGRAPHY ^ ..
Just off the press is the first great biography of
Marconi.
It is written by Orrin E. Dunlap, Jr. , Radio Editor
of the New York Times , whose own career began as a wireless
operator. It reveals much heretofore unknown about Marconi's
early life, is the result of years of painstaking research
and carries a preface by Marconi, who himself read the final
proofs so that the book would be accurate in facts about wire
less and historically correct in personal detail.
In addition to the story of the part played by the
Italian wizard in the development of radio, told as never
before, the book touches on many historical events - the heroic
and dramatic role of Marconi wireless in the "Republic” dis¬
aster and the "Titanic" raid-ocean tragedy. The biography is
profusely illustrated.
Here indeed is a book - "Marconi - The Man and His
Wireless" - published by The Macmillan Company, New York (price
$3.50) which is so attractively written and so important
historically that it will probably prove not only a best¬
seller but an authoritative library reference book of all time.
In the preface, Marconi wrote that it was pleasing to
him that Mr. Dunlap, an editor possessing a wide background of
practical experience in radio, had written the story and the
great inventor concluded:
"In revealing to the world the significance of wire¬
less and its influence on the lives of the people, I hope that
this book in English will further cement the friendship of
Italy and the Anglo- speaking nations, and that this story of
wireless will be an inspiration to youth in science. The
achievements of wireless illustrate the truth that where there
is a will there is a way. There are no limits in science; each
advance widens the sphere of exploration. It was that way in
1895; it is that way now.
"Radio is a symbol of progress. "
Face to face, Marconi is radically different from the
world's general picture of him as a scientist, Mr. Dunlap
writes. ''He is more English than Italian; shy and mysterious,
punctual but not easy to meet. Simplicity is the secret of
his wizardry and simplicity of thought enabled him to accomplish
/r .
DUNLAP
2
<±/ 10/ O (
what skilled mathematicians and theorists had failed to do
because they became entangled in deep technic -'l approaches.
Marconi crowned by wireless, is always news, ;enerally front
page.
"Today broadcasting bespeaks his genius; television
illustrates it. "
One of Marconi's early associates wa.s quoted as say¬
ing that the success of Italy's genius may be summed up in
patience and infinite persistence plus a great deal of natural
ability. This man said that he had seen Marconi work thirty
hours at a stretch; that he hated routine business, and while
he has a business sense, he lacks administrative and organiz¬
ing ability. He is no mixer; out of 700 on the Marconi staff
probably not more than a half-dozen knew him well enough to
speak to.
Among the anecdotes in the book, of which there are
many, Mr. Dunlap relates the following about President Roose¬
velt and Marconi:
"’Marconi Day' at the exposition was designated in
tribute to the distinguished visitor, and on that occasion the
Western Society of Engineers invited Marconi for luncheon.
Just as the engineers were seated a note came from President
Roosevelt, who was also a guest of the Exposition on that day,
inviting Marconi to pay him a brief call. The Senatore excus¬
ed himself, and some twenty minutes later returned. His face
wore a puzzled expression; as he sat down at the luncheon table
he turned to Dr. Arthur H. Compton, and exclaimed:
"'Where did I meet that man? Mr. ^oosevelt describ¬
ed the exact details of a meeting in 1917, but for the life of
me I cannot remember the occasion. '
"It was apparent that on the earlier occasion of
their meeting, when Marconi was visiting the United States on
behalf of the Italian Government, there was no reason for him
to remember an Under-Secretary of the Navy, who was one of the
many guests at a reception in his honor, whereas, to the Under¬
secretary Franklin D. Roosevelt, the inventor of wireless was
the man of the hour. "
A highlight of the book is a description of the thrill¬
ing moment in Newfoundland when the great wizard breathlessly
tried out his receiving outfit by which he hoped to pick up an
electric signal from across the Atlantic in Poldhu, England,
thirty-six years ago. Marconi listened and listened, but not a
sound was heard for half an hour.
"Suddenly, at about 12:30 o'clock, unmistakably three
scant little clicks in the telephone receiver, corresponding
to three dots in the Morse code, sounded several times in my
ear as I listened intently", said Marconi, in recounting the
day. "But I would not be satisfied without corroboration.
3
4/13/37
"'Can you hear anything, Kemp?' I said, handing
the receiver to ray assistant.
"Kemp heard the same thing I did, and I knew then
that I had been absolutely right in ray anticipation", recalled
Marconi. "Electric waves which were being sent out from
Polahu had traversed the Atlantic serenely ignoring the curva¬
ture of the earth, which so many doubters considered would be
a fatal obstacle. I knew then that the day on which I should
be able to send full messages without wires or cables across
the Atlantic was not very far away. Distance had been over¬
come, and further development of the sending and receiving
instruments was all that was required. "
It is told how Marconi was conducted on a tour of
Radio City, through the elaborate broadcasting studios and
back- stage of the magnificent Music Hall.
"To the showman who pointed out the features, Marconi
did not appear to be impressed. His mind seemed to be looking
ahead - to something even greater? Or was he puzzled at the
vast outlay of money in this field of radio which might change
overnight and render much of it obsolete?
"To the chief engineer who described the nerve
centre of the broadcasting system Marconi gave the impression
of being perplexed; when a novel device was explained, the
only word he found to express surprise was, 'indeed', with an
exclamation point, It all seemed as if modern radio had run
ahead of Marconi. But had it?"
Referring to the yacht "Elettra", on board of which
the inventor's notable experiments have been carried on, Mr.
Dunlap pays a final tribute.
"Throughout the ages it seems the 'Elettra* will
sail on and on into the infinite with her white and golden
bow gently dipping with the swells of Time as it moves across
the ethereal sea toward the westerly sun. On the bridge
Marconi can be seen waving his Italian naval cap in farewell
to earthly waters. Surely there must be more of wireless out
there in the infinite, far off in unfathomed space across which
all wireless waves endlessly surge against unseen shores from
which no traveler has yet returned.
"The spark of his genius will leap forever across
the skies. "
XXXXXXXX
- 4 -
4/13/37
PAYNE PROPOSES BROADCAST STATION TAX
Commissioner George Henry Payne, of the Federal
Communications Commission, advocates a special tax on broad¬
cast stations. A letter was sent Tuesday (April 13) by
Commissioner Payne to Congressman John J. Bcylan. of New York,
outlining the former's station tax proposal. Also a bill
which Mr. Payne drafted embodying his suggestions. Mr. Payne's
letter follows.’
"In accordance with our conversation of the other
day, I am sending you my ideas of a bill that would meet the
serious situation that exists with regard to the taxing of
the broadcast stations. As neither Dr. Miller nor myself is
a bill drafter by birth or profession, I suppose you will
have the bill run over by your Legislative Counsel of the
House. There has been a widespread conviction that the
enormous profits made by the broadcast stations more than
Justify a special tax, as they now enjoy the use of a great
national resource and it is the government that bears the
burden of the regulation without which they could not exist.
"Various members of both branches of Congress have
at times suggested that this situation should be remedied, but
all the suggestions were in the form of taxation of the gross
revenue or net income. This form of taxation with the varying
sums and the large amount of labor involved is obviously not
as workable or practical as the one outlined in the bill
enclosed.
"The levy on power in the form of a special tax
is simple, calculable at once and is eminently fair. To give
you some idea of the profits, it is a fact that there are not
more than $40,000,000 invested in the broadcasting business
and the gross revenue last year exceeded $107,000,000, with
the possibility of its reaching $125,000,000 to $130,000,000
in the current year. Not long ago, one station, which repre¬
sented an investment of $177,192.15, was sold for $1,250,000;
another, which represented an investment of $146,006.02, was
sold for $452,500.00; and still another, which represented an
investment of $90,321.09, was sold for $300,000.00, - and so on.
"Computed on the broadcast licenses now in effect,
the total amount of revenue that this special tax will yield
will be $6,946,395.00, including the tax on an experimental
broadcast license now in effect, representing a temporary
increase of 450,000 watts.
"Many years ago the government gave to the telegraph
companies concessions in land and timber and the government
has since that time continued to receive compensation in the
form of substantially lower rates. The government, as you know,
pays only forty per* cent of the normal rates on all messages
sent by telegraph. In the case of the broadcast industry the
5
4/13/37
government has made a far more valuable gift from the public
resources without any compensation whatever,,
"The proposed special tax will be no burden on the
broadcast industry as it represents less than six percent of
the revenue of the industry. At best it is but a small
return for the great privilege the industry enjoys in using
the people’s airwaves,, I may mention, in this connection,
that the bill represents purely a revenue measure and that
no special tax heretofore levied by the government, includ¬
ing the special taxes of the Harrison Act and the Firearms
Act, which are largely regulatory, has ever been unset by
the courts, "
The section of Mr. Payne’s bill having to do with
special tax rates and registration reads;
"On or before July 1, 1937, or upon first engaging
in the operation of a broadcast station in the United States,
and thereafter on or before the first day of July of each
year, every person operating a broadcast station in the
United States shall register with the collector for the dis¬
trict in which such station is located, his name or style,
principal place of business, and pieces of business in such
district, and pay a special tax, computed on the power
authorized by the Commission for use by the station, at
the following rates:
"For every station authorized to use not in excess
of 1000 watts, $1.00 a watt for each watt authorized. For
every station authorized to use in excess of 100 watts and
not in excess of 10,000 watts, $2.00 a watt for each watt
authorized. For every station authorized to use in excess
of 10,000 watts, $3.00 a watt for each watt authorized.
"If the tax is payable on the 1st day of July in
any year it shall be computed for one year; if the tax is pay¬
able on any other day it shall be computed proportionately
from the 1st day of the month in which the liability to the
special tax commenced to and including the 30th day of June
following: Provided that, in the case of failure on the part
of the Commission to renew a license for any station in res¬
pect to which special tax has been raid the unexpired portion
of the period for which the soecial tax stanro has been issued
may be redeemed.
"In the case of a part time station, the tax shall
be that proportion of the tax imposed by subsection (a) which
the number of daily hours authorized by the Commission bears
to 24 hours.
"In the case of a station using varying amounts of
power, the tax shall be at the rate imposed by subsection (a)
using as the basis the weighted average amount of power
authorized by the Commission.
6
4/13/57
11 Time borrowed from or loaned to another station
shall not affect the basis of the tax.
"The provisions of section 2 shall not anoly to a
station certified by the Commission to the Commissioner as
(1) operated by the United States Government, any State,
Territory, or possession of the United States, or any politi¬
cal subdivision thereof, or the District of Columbia; or
(2) operated exclusively for non-profit purposes and broad¬
casting only unsponsored programs. "
XXXXXXXXXX
U.S. REPORT ON HAVANA PARLEY SUBMITTED TO STATE DEPARTMENT
Coincident with the adoption of a resolution by
the Cuban Cabinet to invite all countries on the North and
South American continents to a radio conference next November
in Havana, the report of the U. S. delegation to the recent
Havana engineering parley was submitted to Secretary of
State Hull this week. The report paves the way to the November
Confe rence0
The recent engineering conference was participated
in only by Canada, Cuba, Mexico, and the United States. A
tentative accord was reached, but all decisions are subject to
approval by the general meeting in November.
The major problem worked out by the initial parley,
according to the U. S, report, was the proposals of Canada,
Cuba, and. Mexico that exclusive channels be assigned to each
nation and that these channels be divided on the basis of some
formula acceptable to all four nations represented.
Three members -of the U. S. delegation, Coramdr. T.A.M.
Craven, Chief Engineer of the Federal Communications Commis¬
sion; Harvey 3. Otterman, of the St^te Department; and Ellis
0. Briggs, Second Secretary of the U. S. Embassy in Cuba,
were on this important committee.
"After an intensive study of the views of each of
the countries represented and a real attempt to decide the
extremely complex problems on the basis of sound engineering
principles rather than on the basis of national or political
considerations, the Committee was happily able to arrive at
a meeting of the mincis" , the U. 3. delegation reported, "and
the following principles were agreed to unanimously:
"With respect to clear channels, the former doctrine
of international coverage has been change to 'freedom from
interference within the borders of a country. '
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"The adoption of the United States standard practices
for regional stations is applied to the North American region
as a whole resulting in the use of regional channels by all
nations when no interference will exist to any regional sta¬
tion under the engineering standards recognized in the
engineering report of January 11 of the Commission's Engineer¬
ing Department. This was accomplished after full consideration
by all delegations of the doctrine long recognized by our
Government with respect to sovereign rights of nations rela¬
tive to the use of radio. Therefore, no new international
principle or change of policy on the part of the United States
is involved.
"With reference to clear channels, the rights of
nations to use frequencies is modified when they cause inter¬
ference to the reception of stations in other countries, and
hence it is recognized that regional arrangements are neces¬
sary to permit the orderly joint use by all nations of the
narrow broadcasting band mutually agreed upon by nations of
the world for allocation to broadcast service. No new inter¬
national principles have been evolved here with regard to
clear channels and the practice and policies of the United
States have been sustained.
"Channels formerly assigned exclusively to a country
can be used by other nations in daytime when no more than five
micro-volts interference is caused, at the border by stations
of another nation using the same channel. This will result in
easing the present difficulties in the United States relative
to our daytime stations by adding six channels which are in
the band 550 to 1500 kc. , which are not now available to us,
While the same concession was made to Canada and to other nations,
no harm can come to the United States stations if the terms of
this agreement are set forth at the November Conference and
agreed upon there and thereafter maintained in force by all
nations.
"Three classes of clear channels, one class of reg¬
ional channels and one class of local channels were recommended
much along our own present or proposed practice except that the
use of directional antennae is encouraged between nations when
convenient. This is in accord with what has been recognized as
engineering necessity in our own country.
"Six classes of stations defined very much along the
lines of the Federal Communications Commission's Engineering
Department's January report were adopted. These do not mater¬
ially cnange our existing practice and are in accord with our
present necessities.
"For the purpose of promoting coordination between
nations with respect to questions of interference in the broad¬
cast band 540-1600 kc. , each nation a party to this agreement,
should notify the others with respect to the call signs, fre¬
quency, power, antenna characteristics, and location of the
- 8 -
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4/13/37
stations they have authorized; and for purposes of obtaining
cooperation with respect to international interference they
shall state in which class they deem the stations they have
authorized should be listed.
'•'For the first time in international radio history,
'objectionable interference1 has been defined in specific
terras for use between nations on the North American continent.
The United States practices are followed in this instance
and it is believed that, in view of the general misunderstand¬
ing throughout the Americas of what is meant by interference
of an objectionable character, this action will go far toward
attaining an orderly use of the broadcast band in this region.
"The frequency 540 kc. , is permitted to be used for
broadcasting as provided for in the present agreement between
Canada and the United States exceot that distance from the
coast line is prescribed. The broadcast band wSs extended to
1600 kc. in accordance with the United States oroposals at
Mexico City and present United States policy.
"The use of 520 kc„ and 530 kc. and all other long
waves was rejected for broadcasting. ^his is in accord with
the existing United States policy. The frequency seoaration
of 10 kc. and the assignment of frequencies in multiples of
ten kc. was maintained in accordance with the present United
States policy.
"The division of the 107 channels between 540 and 1600
kc. is as follows*.
"58 as clear channels of all classes
"33 as regional channels
"16 as local channels, ten of which are for urban
stations (our low power regionals) and six
for city stations (our local)
"An important recommendation ratified by the Confer¬
ence recognizes the essential difference between broadcasting
frequencies in the normal broadcast band 540-1600 kc. and
broadcasting on short waves. While the former are recognized
as being essentially for national service, it is pointed out
that for successful short wave broadcasting and especially the
cultural exchange of programs among the Americas, stations in
the short wave broadcasting bands should be required to use
sufficient power to permit the rendition of good international
service.
"Your Delegation feels that this Pegional Conference
of the four nations while preliminary in character was emi¬
nently successful in establishing the fundamental needs for
broadcasting service of the participating countries and through
the achievement of unanimous agreement on the broadcasting
engineering bases involved, the wa.y is oaved for a more com¬
prehensive agreement among the pa rticioating nations in the
November Conference. "
X X X X X X X X
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4/13/37
NAB CONTENTION TO BE HELD JUNE 20-23 AT CHICAGO
Directors of the National Association of Broad¬
casters have selected Chicago again for their annual member¬
ship meeting and June 20-23 as the dates, according to James
W. Baldwin, Managing Director, after consultation with the
Executive Committee.
Meeting in Washington last week, the Directors dis¬
cussed the recent Havana broadcasting conference, which Mr.
Baldwin attended as an unofficial observer, and endorsed the
Duffy and Sheppard Cooyright Bills now pending in Congress.
Edward J. Fitzgerald, Director of the Bureau of
Copyrights, gave an audition for the Directors to demonstrate
the progress of the Bureau in building an electrical trans¬
cription library.
The Directors also decided to offer legal aid in
defense of the Montana and Washington State Copyright laws,
now under fire of the American Society of Authors, Composers,
and Publishers.
XXXXXXXXXX
RMA ON PROGRAM OF C.I.O., U.E.R.O. OFFICIAL SAYS
If the United Electrical and Radio Workers Union
obtains contracts from Westinghouse and General Electrical,
now in negotiation, it will next turn its guns on the National
Electrical Manufacturers’ Association and the Radio Manu¬
facturers' Association, according to the President of the
Union.
The C.I.O. group, confident of success in its con¬
versations with the electrical manufacturing companies, expects
to reach all other electrical and radio manufacturers through
their respective trade associations.
Some 425,000 workers are involved in the companies
represented by the two trade organizations, it was estimated.
XXXXXXXX
10
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4/13/37
TRADE NOTES
Lenox R. Lohr, President of the National Broadcast¬
ing Company, will return to his boyhood home town, Washington,
D. C. , on April 19th to address a gathering of newspaper men
who will be guests of the Washington Board of Trade.
A tax of 9 pesos has been levied on each radio in
the city of Santiago, according to a report of February 24,
193?, from Assistant Commercial Attache Harold M. Randall,
Santiago. The funds derived from the tax are to be devoted
to various public improvements in the city.
A favorable report on the application of WCOP,
Boston, for authority to transfer from 1120 to 1130 kc. , was
filed with the Federal Communications Commission this week by
Examiner George P. Hill, conditional upon compliance with
Rule 131.
WJR, Detroit, makes the following reoort for the
March quarter:- Net income, $151,231, equal to $1.16 each on
130,000 shares, compared with net income before taxes of
$128,824 in first three months of 1936.
A report that the Columbia Broadcasting System would
drop its Cleveland affiliated station WHK, at the expiration
of its present contract on October 31st, has been confirmed
by Herbert V. Akerberg, CBS Vice-President in Charge of Sta¬
tion Relations, and in its place, CBS has signed WGAR as the
Cleveland outlet, effective November 1st.
False and misleading representations as to the thera¬
peutic value of a medicinal preparation designated as "Willard
Tablets" is alleged by the Federal Trade Commission in a com¬
plaint issued against Willard Tablet Co. , Inc. , 215 West
Randolph St. , Chicago. The respondent is a radio advertiser.
Three radio stations, KSOO, Sioux Falls, S.D. ; WDEL,
Wilmington, Del. , and WORK, York, Penna. , will be welcomed to
the networks of the National Broadcasting Company in NBC program
salutes during the afternoon and evening of Thursday, April 15.
The recent signing of the stations brought the number of NBC
affiliated stations to 124.
XXXXXXXX
11 -
4/13/37
RADIO SPARSELY REPRESENTED AT GRIDIRON
Only a few lucky ones from the radio industry were
included in the invitation list of the Spring Dinner of the
Gridiron Club in Washington last Saturday night, attended by
President Roosevelt, Chief Justice Hughes, General Pershing
and other high officials.
Besides the President, there was, as usual, only
one other distinguished speaker, this year Myron C. Taylor,
Chairman of the Board of tne U. S. Steel Corporation.
Radio notables present were Judge A. L. Ashby,
Vice-President and General Attorney for the National Broad¬
casting Company, ^ew York City; Gene Buck, President of the
American Society of Composers, New York City; Harry C.
Butcher, Vice-President, Columbia Broadcasting System,
Washington, D. C. ; John W. Guider, radio Counsel, Washington,
D. c. ; and Senator Burton K. Wheeler, Chairman of the Senate
Interstate Commerce Commission,
XXXXXXXX
U. 3. PROVIDES 11% OF IRISH RADIO IMPORTS
While there are more than 100,000 receiving sets in
the Irish ^ree state, or one to every 30 inhabitants, American
Vice Counsul Edwin J. King at Dublin, in a reoort made public
by the Electrical Division of the Department of Commerce,
states that sets of only one American manufacturer have been
assembled in the Irish Free State during the past three years.
At the recent radio exhibition in Dublin, the all¬
wave set was predominant. Car radio sets were also well
represented.
Imports of radio equipment and parts from the United
States during 1936 were valued at approximately L27,000
(approximately $135,000) or about 11 percent of the total
imports of such materials, it was stated.
During the year, the report states, Irish Free State
radio broadcasting programs were much improved. It has been
announced that a regular broadcast service to schools is being
inaugurated, according to the report.
XXXXXXXXX
12
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
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CONFIDENTIAL — Not for Publication
1 . . . . . f WMG
LEQAU DEPARTMENT
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APR 1 9 bu.
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INDEX TO ISSUE OF APRIL 16, 1937.
Reallocation Delay Seen; Economics Report Held Up . 2
Almonte Welcomed Back After Long Illness . 3
Rule Kitting Engineers Might Force Out Craven . .4
London’s ''Television Beltfi To Be Let Out . 4
Static Travels With Speed Of Light.. . 5
Cunningham Resigns As RCA Mfg. Co. President . 6
Hearing Set On A. T. & T. Application. . . 6
Boylan Introduces Radio Station Tax Measure . 7
Dill Argues For Permit For Washington Station . 8
U. S. Advertisers Promise Programs For Alaska Outlet . 8
Trade Notes . 9
Stockholder Who Heckled Sarnoff Turns On Schwab . 10
$5,000,000 Year Forecast For ASCAP . 11
Sterling Fisher Named CBS Director of Talks and Education . 11
Mackay Making Auto Alarms For 600 Ships . 12
Market For Radios Good In Newfoundland . 12
%
\PV
No.
1020 - /Y
REALLOCATION DELAY SEEN; ECONOMICS REPORT HELD UP
The reallocation and reclassification of United
States broadcasting stations, recommended in January by the
Engineering Department of the Federal Communications Commis¬
sion, probably will be postponed until next Fall, it was
learned this week, for a two-fold reason.
First, the possibility of evolving a North American
plan of allocating broadcasting facilities that would super¬
sede the U. S. set-up.
Second, the fact that the FCC supplementary reoort
on the economic phase of broadcasting is proving too hot to
handle at present .
With the threat of a Congressional investigation
still hanging over their heads, members of the vcc Broadcast
Division are in no hurry to add fuel to the smoldering fire
of resentment on Capitol Hill. And the Engineering Department
is not eager to become the scapegoat should adverse repercus¬
sions develop.
The accord reached by engineers from Canada, Mexico,
Cuba and the United States provides a convenient excuse for the
Commission to delay further action on the domestic shakeup until
after the general Pan American broadcasting conference in
November. By that time, it is expected, Congress will have
adjourned and the investigation either will have been fore¬
stalled or completed.
Meanwhile, the FCC will not formulate any definite
policies on super-power station development because of the
relation between this problem with reallocation of frequencies,
Commar. T.A.M. Craven, Chief Engineer of the FCC,
in his report to the Commission last January, while leaning
toward high power, suggested that no policy be adopted until
the supplementary report on the economic phases of broadcast¬
ing is prepared.
He also suggested that no final decisions be reached
on the engineering proposals until the secondary report was
submitted because of "the paramount importance of economic and
social factors in the determination of the distribution of
facilities to licensees in any section of the country."
2
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Prof. Herman S. Hettinger, of the Wharton School of
Finance, was hired to make the investigations, tabulations,
and deductions upon which Commander Craven was to prepare the
economics report.
This week Commander Craven said that Hettinger’s
report was on his desk but that he had not had time to examine
it since his return from the Cuban conference. He intimated
there may be some further delay before it reaches the Broad¬
cast Division,
Professor Hettinger's findings are reputedly pro¬
industry and so are expected to be jumped on by members of
Congress from the rural areas and small towns where broadcast¬
ing service is not adequate.
Many of these members are already disgruntled at
the tacit approval of rower increases by the FCC Engineering
Department and the threat of super-power stations arising
over the country.
XXXXXXXX
ALMONTE WELCOMED BACK AFTER LONG ILLNESS
The red carpet was run out at the National Broad¬
casting Company welcoming John de Jara Almonte, popular
evening general manager, back to the fold after a long illness
Curiously enough, during the entire ten years Mr. Almonte
had been with the NBC, he had practically never been laid up
or had to stay at home. He didn't even seem to get the usual
colds that other people did in Winter, but this time was hit
by a germ that was so rare that it was almost an honor - like
getting a decoration.
In the meantime, Mr. Almonte, who, because of his
tactful handling of difficult situations which arise at night,
is known as the "diplomat of the kilocycles", and has been
greatly missed. As a result of his return, there is a
festive air about the office of the genial executive and every
one who knows him is particularly pleased because every assur¬
ance is held out to him for another unbroken stretch of good
health.
XXXXXXXXX
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4/16/37
RULE HITTING ENGINEERS MIGHT FORCE OUT CRAVEN
Coraradr. T.A.M. Craven, Chief Engineer of the Federal
Communications Commission, this week declined to comment on a
published report that an effort is being made to force him to
resign by having the Commission adopt a rule which would pro¬
hibit engineers from appearing before it in private cases
within two years after they quit the FCC.
The Commission has been pondering for some time a
problen of drafting a rule placing engineers and technicians
on an equality with lawyers with relation to their previous
governmental connections.
The demand that engineers be similarly restricted
came from Senator Wheeler (D.), of Montana.
While friends of Commander Craven are inclined to
discredit the report that an effort is being made in Congress
to force him off the FCC staff by a round-about method, it is
not unlikely that a harsh regulation might force him to resign.
Much would depend, it is understood, on how the
regulation may be worded. Most engineers now appear before
the Commission in the role of expert witnesses rather than
as counsel pressing a case. Likewise, they as a rule avoid
lobbying.
Broadcasting engineers hold that it would be unfair
for the Commission to evoke a rule that would bar engineers
formerly associated with the FCC from testifying for two years.
XXXXXXXX
LONDON'S "TELEVISION BELT" TO BE LET OUT
London's television belt, as "made to measure" by
the engineers, which had formerly a 25-mile radius from
Alexandra Palace, has had to be let out very considerably in
the past few weeks, for reports of good reception are coming
from places as far apart as Brighton and Cambridge, according
to Wo rid- Radio , BBC journal.
According to one firm of set manufacturers, a viewer
in Ipswich gets consistently good results with a small aerial,
his only trouble being an occasional loss of "wync" ( synchron¬
ization) due to car interference. The outer London television
belt, where reception can always be relied upon, could now be
drawn from Che sham, Amersham, Windsor, Farnham, Dorking,
Seven-oaks, Gravesend, Chelmsford, Cambridge, and Bedford.
4
4/16/37
The 300-ft. television mast at Alexandra Palace will
shortly be capped by another carrying a receiving aerial for
picking up signals from a mobile transmitter.. Since the mobile
transmitter will work from street level, it is essential that
the receiving aerial should be as high as possible. Actually,
it will be the highest ultra- short-wave aerial in the country,
being more than 600 ft. above sea level.
The new aerial will occupy the only point in the
vicinity of Alexandra Palace which is not within the ,:wipe~out”
area of the existing vision and sound aerials.
XXXXXXXX
STATIC TRAVELS WITH SPEED OF LIGHT
Observations at the Carnegie Institutions Mount
Wilson Observatory in Pasadena, Cal. , indicate that the energy
which causes fade-outs in high-frequency radio broadcasts
comes from the sun with the speed of light, according to
R. S. Richardson, staff scientist, writing in the organ of
the Astronomical Society of the Pacific.
When there is an unusually bright gas eruption near
a sun spot, energy is transmitted to the earth in eight minutes,
causing high-frequency broadcasts to fade. These fade-outs
last from fifteen minutes to half an hour. The longest come
about every fifty-four days.
Somewhat similarly, telephone and telegraph service
may be disrupted and the Aurora Borealis made visible in States
as far south as California. The latter are due to storms in
the earth's magnetic field and sometimes may follow as late as
twenty-six hours the appearance of a large sun spot group.
These disturbances probably will continue for several
years. Mr. Richardson said the maximum of the present ten or
eleven year sun spot cycle, probably is two years away.
One of the largest spot groups of all time appeared
on the sun the latter part of January. An average of twelve
spot groups a day was observed in February, the largest in
the observatory's history. The average dropped to nine and
six-tenths a day in March, but now has increased to eleven or
twelve again.
XXXXXXXX
- 5
4/16/37
CUNNINGHAM RESIGNS AS RCA MFG. CO. PRESIDENT
E. T. Cunningham this week resigned as President of
the FCA Manufacturing Company, Inc. He will continue as a
member of the FCA Manufacturing Company Board of Directors,
however, and has been retained as counsel on production,
sales and trade relations*
The operations of RCA Manufacturing Company, Inc. ,
will be under the direction of G. X. Throckmorton, the
Executive Vice President of the Company. Mr. Throckmorton
has acted in that capacity for the past six years and will
now assume the duties formerly exercised by Mr. Cunningham.
In December, 1930, Mr. Cunningham sold his radio
tube company, E. T. Cunningham Company, to Radio Corporation
of America. That year RCA had also begun its own manufacture
of the radio apparatus which it had formerly purchased from
others. At that time RCA acquired factories in Camden and
Harrison, New Jersey; Boston, Indianapolis, and Hollywood,
California.
In 1931, David Sarnoff, President of the RCA, appoint¬
ed Mr. Cunningham to coordinate and to integrate the varied
sales and manufacturing activities of RCA in the fields of
radio tubes and receivers, Victor phonograph records, Photo¬
phone equipment, radio transmitters and miscellaneous radio
products.
Today these activities of the RCA are consolidated
in the FCA Manufacturing Company, Inc. , with factories in
Camden and Harrison, New Jersey; Indianapolis, Hollywood,
California; and in eight foreign countries.
xxxxxxxx
HEARING SET ON A. T. & T. APPLICATION
The Telephone Division of the Federal Communications
Commission having under consideration the application of the
American Telephone and Telegraph Company for a special experi¬
mental license for a point to point radiotelephone station
utilizing 21 frequencies now licensed to its Lawrenceville ,
New Jersey, station to communicate "for experimental service
only to any fixed point beyond the continental limits of the
United States" set the application for hearing before the
Telephone Division at 10:00 A. M. , on Thursday, June 17, 1937.
XXXXXXXXX
- 6
4/16/37
BOYLAN INTRODUCES RADIO STATION TAX MEASURE
A bill carrying substantially the same provisions
proposed by Commissioner George Henry Payne for taxing bread¬
casting stations was introduced in the House Thursday by
Representative Boylan (D. ), of New York.
The measure was referred to the Ways and Means
Committee. Its fate probably will deDend upon whether or not
the Administration approves it. Congressman Boylan himself
said that the Treasury Department will be consulted.
If a hearing is held on the bill, a number of
members of the House will appear in support of it. Some of
these members already have suggested taxation of broadcast¬
ing stations during hearings on the FCC requests for appro¬
priations.
Commissioner Payne has estimated that the tax would
yield $6,946,395, which is almost four times the annual
appropriation for maintaining the Federal Communications
Commission. The appropriation for the next fiscal year is
$1,629,000.
Other members of the FCC have gone on record as
favoring a license tax on broadcasting stations to pay for
the cost of regulation, among them being Judge Eugene 0.
Sykes, Chairman of the Broadcast Division.
Although the Broadcast Division promised more than
a year ago to investigate the possibility of imposing a scale
of license fees, during hearings on the appropriations bill,
no plan had been submitted to Congress before Commissioner
Payne sent his suggested bill to Representative Boylan.
The scale of taxes proposed in the Boylan bill is
as follows:
$1 a watt for stations of 1,000 watts or under;
$2 for stations between 1,000 and 10,000 watts; $3 for sta¬
tions using in excess of 10,000 watts.
Thus stations now operating with 50,000 watts would
have to pay annual tax ov $150,000, while the Nation's most
powerful station, WLW, using 500,000 watts, would be taxed
$1,500,000 under tne scale proposed.
Broadcasters generally are alarmed at the steepness
of the proposed taxes, and it is believed that if the bill is
acted on favorably that the taxes will be scaled downward.
XXXXXXXXX
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4/16/37
DILL ARGUES FOR PERMIT FOR WASHINGTON STATION
Former Senator Clarence C. Dill, who now resides in
the District of Columbia, arguing in support of an Examiner's
recommendation that he be allowed to construct a new broad¬
casting station in Washington, told the Federal Communications
Commission Thursday there is more need of a local station in
the District than in ary other community in the country.
Chain programs, Senator Dill declared, occupy from
one-half to two-thirds of the time of the four existing sta¬
tions, making it "impossible 11 to give "real local service."
The former Senator said he planned to present
educational prograins designed expressly for Washington high
and grade schools. Religious programs, including those of
the Adventist Church, would be presented during hours now
taken by chain programs on other stations, he said.
The development of local talent, a field in which
Mr. Dill said practically nothing has been done, would be a
policy of the station.
XXXXXXXX
U. S. ADVERTISERS PROMISE PROGRAMS FOR ALASKA OUTLET
Commercial sponsors from the United States will enable
an operator of a proposed Alaska station to make the venture a
business success, according to an Examiner’s report recommend¬
ing that the application be granted.
Approving the request of Edwin A. Kraft, of Peters¬
burg, Alaska, for a construction permit on 1420 kc. with 100
watts, unlimited time, Examiner R. H. Hyde noted:
"The applicant does not expect to obtain sufficient
revenue from advertising business available locally in Peters¬
burg to make the proposed station a successful business enter¬
prise, but does expect, in fact claims assurance of sufficient
business from advertisers within the United States, to make the
project a commercial success. Through his ownership of the
Northwest Radio Broadcast Comnany, Inc., the applicant is in a
position to place certain national advertising on the new sta¬
tion. Three substantial accounts, by name the Gardner Nursery
Company of Osage, Iowa, the Geppert Studios of Des Moines, Iowa,
and the Compagnie Parisienne of San Antonio, Texas, are said to
be immediately available. In addition the applicant claims
that a number of local supply houses distributing such merch¬
andise as groceries, mining machinery and canning equipment,
who do not at present have any effective method of advertising
their products in the Petersburg area, are definitely inter¬
ested in employing radio advertising. n
XXXXXXXX
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4/16/37
TRADE NOTES
It may or may not be a coincidence, but the date of
the annual convention of the National Association of Broad¬
casters in Chicago, June 20-23, includes the date, June 22,
of the Louis-Braddock fight for the world's heavyweight cham-
pionshipc
The Japanese Broadcasting Company announced this
week that it will construct 16 short-wave transmitters at a
cost of approximately $5, 000, 000 for use of American and other
foreign radio companies who wish to send announcers to des¬
cribe the 1940 Olympic games in Japan.
William R. P. Neel, of the National Broadcasting
Company Press Division, has been appointed Trane News Editor,
effective immediately. He will have charge of the distribu¬
tion of all news concerning the company 1 s activities to the
radio, advertising and industrial trade press. Mr. Neel has
been a member of the NBC Press staff for two years.
An increase in power from 500 watts nighttime and
1,000 watts daytime to 1,000 and 5,000 watts, respectively,
was recommended for WMBD, Peoria, Ill. , this week by Examiner
George H. Hill.
A strike of wireless operators on all ships operated
by the International Mercantile Marine and its subsidiaries
now in United States ports was called Thursday by the American
Radio Telegraphers' Association, which has just affiliated with
the C.I.O.
Effective April 15th, Station KSOO, Sioux Falls, S.D.,
becomes affiliated with the National Broadcasting Company as
a supplementary outlet available to advertisers using either
the Basic Red or the Basic Blue Network. KSOO is the only
radio station in Sioux Falls and the only clear-channel station
in South Dakota. It operates until Local Sunset - with 2500
watts power and on a frequency of 1110 kilocycles.
9
4/16/37
An adverse report was filed with the federal Com¬
munications Cor.iraiss.ion this we el: by Examiner P; W. Seward
on an application of the Peninsula Newspapers, Inc. , Palo
Alto, Calif. , for a permit to construct a new broadcasting
station for operation on 1160 kc. with 250 watts daytime*
American George A. Gordon, Port-au-Prince, advises
that the Haitian Government has granted a concession to a
company to establish radio stations throughout the country;
it permits the company to manufacture and sell telephonic,
telegraphic, or radio industruments and accessories; and to
construct and exploit central telephone, telegraphic and
radio systems. The company is also given the privilege of
linking its stations with the local telephone system operated
by the Haitian Government*
Thirty-nine German, Swiss and Norwegian advertising
experts, on a 17-day visit to the United States to study
American advertising methods, visited the National Broadcast¬
ing Company Tuesday to hear E.P.H. James, Sales Promotion
Manager of NBC, explain commercial broadcasting. The trip
is sponsored by Die Deutsche Werbung, German press and advertis¬
ing association*
The U. S. Foreign Tariffs Division advises that
under class 505b of the Bulgarian Tariff, radio sets, radio
tubes of all kinds, and other radio apparatus, are assessed
4 gold leva per kilo, plus an octroi tax of 20 percent of the
duty and a stamp tax of 3 oercent of the duty. Duties are pay¬
able in paper leva at the ratio of 27 to 1. Radio sets may be
imported into Bulgaria only when compensated by exports of
certain Bulgarian products. The above duty and taxes amount
to approximately 80 cents a pound.
X X X X X X X X X X
STOCKHOLDER TOO HECKLED SARNOFF TURNS ON SCHWAB
Following closely on the heels of his attack on David
Sarnoff, President of the Radio Corporation of America, at a
recent stockholders meeting in New York City, Lewis Gilbert,
labelled by the press as "No. 1 Minority Stockholder", this
week turned his guns on Charles M. Schwab at a meeting of
stockholders of the Bethlehem Steel Corporation in Wilmington,
Del.
Gilbert, teamed with one L, B. Coshland, of New York,
tried vainly to oust Schwab from his $200,000 a year post as
President of the Company *
XXXXXXXX
- 10 -
4/16/37
$5,000,000 YEAR FORECAST FOR ASCAP
Distribution made its members by the American Society
of Composers, Authors and Publishers this week indicates that
the organization is in for a $5,000,000 year, an all-time high,
according to Variety. Previous top was $4,000,000 in 1935*
'•'Collection for this year's first quarter was con¬
siderably over the $1,250,000 mark, with the writers getting
about 15$ more than they dia for the like three months in
1936", the article states. "Double A writers this time receiv¬
ed $4,600 and over, rated as record sums by a wide margin.
"Society's income for 1936 was $4,400,000, with the
splitup on the year figuring $3,600,000. Divvy for the initial
quarter of last year came to $935,000, with the expenses of
collection and general overhead already deducted. "
XXXXXXXXX
STERLING FISHER NAMED CBS DIRECTOR OF TALKS AND EDUCATION
The Columbia Broadcasting System announced this week
the appointment of Sterling Fisher, newspaper man, author and
lecturer, as Director of Talks and Education. He succeeds
Edward R. Murrow, whose appointment as European Director for
CBS was announced recently. Mr. Murrow will sail for London
April 21st to take over his new duties.
Mr. Fisher will supervise Columbia's educational
and religious programs and will edit the magazine, "Talks", a
digest of discussions heard over the network.
He has had wide experience as a newspaper man and
teacher of English both in America and the Far East. As a
writer and lecturer, he also has been a student of public
affairs of this country and Europe. He comes to CBS from the
editorial staff of the New York Times. Previous to joining
the New York Times in 3.930, he was a member of the staffs of
the Springfield (Mass. ) Republican and the Associated Press.
XXXXXXXXX
11
MACKAY MAKING AUTO ALARMS FOR 600 SHEPS
Automatic SOS equipment, designed to eliminate static,
a deterrent in ascertaining the locations of distressed ships,
is being manufactured in Newark, N. J. , by the Federal Tele¬
graph Company for 600 cargo vessels of United States registry,
according to the New York Times. The concern is a research
and manufacturing subsidiary of the Mackay Radio and Telegraph
Company .
The manufacture of the equipment followed a recent
order of the Federal Communications Commission that by August
10th all cargo ships of United States registry having more than
550 gross tonnage must maintain a twenty- four hour watch in
the radio-control rooms, with three operators on eight-hour
shifts, or install the automatic signal equipment and maintain
one wireless operator.
The FCC also approved the auto alarm designed by the
Radio Corporation of America.
XXXXXXXXX
MARKET FOR RADIOS GOOD IN NEWFOUNDLAND
The market for radio receiving sets in Newfoundland
is relatively good, according to U. S. Consul General Harold
B. Quarton, St. John’s.
Owing to the geographical situation of Newfoundland,
owners of radio receiving sets are able to receive programs
broadcasted by American, Canadian and European stations. As a
rule, however, reception in St. John’s is poor, due to electri¬
cal disturbances.
Due to the limited purchasing power of the majority of
the people in Newfoundland, low priced merchandise of all des¬
criptions enjoy the largest sale. The less expensive receiving
sets, such as table models, are the most popular. The local
representative of a prominent American radio manufacturer states
that four-fifths of his sales are of this type. One firm re¬
tails these sets at prices ranging from $75 to $110, Canadian
currency, while another dealer sells a five-tube table model
for $65, and 8 to 12-tube sets for $100 to $125. The larger
console models retail at from $125 to $250, depending, of course,
upon the number of tubes and the type of cabinet. Sales of
combined phonographs and radios are limited. Such combination
sets retail at frora$250 to $350. The demand for combined long
and short wave radio receiving sets has greatly increased until
at the present time practically all sales are of the all-wave
models.
There are approximately 18 American manufacturers of
radio receiving sets represented in Newfoundland. Comoetition
is almost entirely among these sets, the only foreign competi¬
tor being the Canadian Marconi Comoany, which also has a repre¬
sentative in St. John's. American sets retail in Newfoundland
at prices practically double their wholesale orices at New York.
XXXXXXXX
- 12 -
GENERAL LIBRARY
so ROCKEFELLER PLAZA, NEW YORK, N. V.
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF APRIL 20, 1937
BBC Notes Increasing Use Of Shorter Short-Waves . 2
Australian Praises American Broadcasters .
Monocacy Loses Appeal From VCC Denial. . .
Lohr Sees Greater Developments Just Ahead .
Radio Set Prices Going Up, Says Editor. ..........
Editors Oppose Curb On Press-Owned Radio Stations
ARTA Rumored Refused A. F. of L. Charter. . 7
Harbord To Be Awarded Medal Of Merit . 7
Trade Notes . 8
Navy Pioneer In Communications Field, Says Rodman. . . 9
Radio Patent Ban Weakening In Czechoslovakia . 10
Don Lee Television Successfully Spans 10-g- Miles . 11
El Salvador Buys All-Wave Equipment From U. S. Firm . 11
No. 1021
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April 20, 1937,
BBC NOTES INCREASING USE OF SHORTER SHORT-WAVES
"The most noteworthy trend in short-wave propagation
conditions during 1936 has been the increasing use made of the
shorter waves, namely those of the order of 14 and 17 metres",
the British Broadcasting Corporation notes in its 1937 annual
Just released.
The annual, which reviews orogress in the technical
and program fields, also carries descriptions of the BBC tele¬
vision stations and the service now in operation.
Explaining the trend toward shorter short-wave s, the
BBC says:
"Short waves are propagated round the earth by reflec¬
tion or refraction in the ionosphere and the amount of bending
that takes place depends on the wavelength and on the intentisy
of ionization in that sphere. The more intense the ionization,
the shorter is the wavelength that is reflected. Although the
exact mechanism of the action of the sun in producing ionization
in the ionosphere is not yet fully understood, it has been
observed that there is a fairly close correlation between the
degree of ionization and the activity of the sun as evidenced
by sunspots. Here the wireless engineer and the astronomer meet
on common ground. The one observes the trend of short-wave
propagation conditions; the other observes the sun with his
telescope or spectrohelioscope and records the varying degrees
of solar activity. A convenient figure to express solar activ¬
ity is the mean daily area of sunspots in a given year expressed
as millionths of the sun’s visible hemisphere. Observations at
the Royal Observatory, Greenwith, give the following figures for
this: 1932, 163; 1933, 88; 1934, 119; 1935, 624; and 1936, up
to June 30th, 1200; from which the sunspot minimum year is
shown clearly as 1933. The great increase in activity in 1936
is also well illustrated, coinciding with the wireless engi¬
neer’s observation that much shorter waves were needed. For
instance, in earlier years, a wavelength of 17 metres had been
short enough to give a midday service to South Africa during
the Autumn. But to provide an equivalent service during the
past year, it became necessary to use 14 metres, as it was
found that the 17 metre wave was severely attenuated on some
days. There is evidence that an even shorter wave - say of 11
or 12 metres - might have been the optimum, for on some days the
ultra-short wave transmissions from the London Television
Station at Alexandra Palace on 6.67 and on 7.2 metres were
received in Cape Town and Johannesburg. Another instance of
2
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this trend was the relatively large number of days on which
American amateur stations and police stations on 9 and 10
metres, working on very low power, were audible in this country.
'•The use of the shorter waves is advantageous because
atmospheric interference decreases rapidly with decrease in
wavelength and relatively weak signals can give noise-free
receotion if receivers are available to cover these wavelengths
efficiently. The need for such receivers has teen well demon¬
strated in the oast year in Africa, in India, and in Malaya,,
and those designed for the reception of Empire broadcasting
should cover efficiently at least the lowest waves at present
in use at Coventry, i.e., GSK and GSJ, 21.47 and 21.53 mc/s
respectively (approx. 13.9 metres).
"The range of wavelengths necessary to cover the
Empire in the different conditions of day and night, winter
and summer, remains about the same. In 1933, when 17 metres
was the lowest wavelength used, it was necessary to use a
wavelength of the order of 70 metres to serve Canada at night
in mid-winter. A wave of this length was outside the bands
allocated to broadcasting by the Madrid Convention of 1932;
consequently , Canada could not be served for a number of nights
in raid- winter. With the physical trend towards the shorter
waves, 70 metres becomes unnecessary and, in fact, the use of
50 metres has been called for on only a few nights at the end
of 1936 and the beginning of 1937, This is fortunate, as
interference in the 50 metre broadcasting band Is very severe,
owing to the use of this band by a large number of low-power
local broadcasting stations in Central and South America.
While the local service range of these stations is very small,
they are capable of producing widespread interference and,
indeed, the whole of Canada and the West Indies have had serious
interference from this source.
"The trouble is spreading, as these small stations
have followed the trend towards the use of shorter waves and
are now using waves in the 31 metre band. Six Central American
stations are now causing interference to Daventry on four of
its wavelengths, namely, GAS, GSL, GSB and GSC on 6.05 mcfs,
611 Mc/s, 9.51 Mc/s, and 9.58 Mc/s resoectively . Strong
representations have been made to the authorities b.v the
British Post Office, but so far, unfortunately, with little
effect. Daventry is not the only station to suffer, and the
value of short-wave broadcasting is being seriously compromised
by this problem of interference. Proposals to deal with It at
the next World Communications Conference to be held in Cairo
in 1938 are receiving consideration. "
XXXXXXXXX
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4/20/37
AUSTRALIAN PRAISES AMERICAN BROADCASTERS
J. S. Larkin, Sales Manager of Nilsen’s Broadcast¬
ing Service, Melbourne, Australia, was in Washington last week.
He said that he had made a trip to the United States especi¬
ally to study our broadcasting system, and the program con¬
struction and material used here.
Mr. Larkin said, in view of the fact that Australia
is approximately seven-eighths the size of the United States
that this was the only country whose radio problems more
nearly approximate those of Australia.
Mr. ^arkin was especially pleased with the reception
he had received here, he told Thomas P. Littlepage, Sr,, radio
counsellor, on whom he called in Washington, and said that all
the broadcasters had been most courteous to him, and he had
learned many things of Interest, He was very much gratified
at the assistance that had been rendered him, and was impressed
with the progress that broadcasting had made in the United
States.
"The Australian problem does present a very difficult
situation in view of the great area but with a population for
the whole continent of six million people, which is less than
that of New York City", Mr. Larkin said, "I found the American
broadcasters to be gentlemen and indeed they were very helpful
to me. "
XXXXXXXXX
MONOCACY LOSES APPEAL FROM FCC DENIAL
Suit by the Monocacy Broadcasting Co. to restrain
the Federal Communications Commission from holding a public
hearing on the granting of a permit for erection of a broad¬
casting station near "Rockville, Md. , was lost in the United
States Court of Appeals Monday. It was ruled that the company
should have appealed directly to the Appellate Court instead
of seeking an injunction in the District Court.
The company contended its application had been
approved tentatively when a belated objection was filed by a
local station. It was to bar the hearing of the latter protesb
that the company sought an injunction. The court did not pass
upon the merits of the question.
XXXXXXXX
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T
LOHR SEES GREATER DEVELOPMENTS JUST AHEAD
Radio receivers that will print newspapers in the
home, bring actual pictures of events and reproduce sounds
with absolute fidelity were predicted by Lenox Lohr, Presi¬
dent of the National Broadcasting Company, in an address in
Washington this week.
Speaking before the Washington Board of Trade at
the Hotel Mayflower, Major Lohr declared that all three develop¬
ments - facsimile broadcasting, television and ultra-high
frequency sound broadcasting - are workable and are definitely
out of the laboratory stage.
He forecast, however, that it would be uat least a
year” before any of them could come into general use.
Before out of town newspaper correspondents and local
newspaper officials gathered to attend the Trade Board’s annual
"press night", Mr. Lohr was careful to point out that the newly
developed "facsimile broadcasting", while capable of producing
a complete illustrated newspaper in the home, would in no way
compete with the newspaper industry.
At present, he said, the facsimile broadcasting
doesn't do such a good printing job as do newspaper presses
and is, also, tremendously expensive. He added that even if
these two handicaps should be overcome, the newspaper would
still have to gather and assemble the news.
Major Lohr declared that ulstr-high frequency sound
broadcasting isn't in general use today because there are few
receivers capable of picking up such broadcasts. He praised
the development, saying that ultra-high frequency receivers
had perfect fidelity and were entirely free from natural static.
The speaker said that his company is now conducting
nightly television broadcasts, but that all receiving sets were
in the hands of company engineers. He emphasized the danger of
"freezing the art" by allowing thousands of sets to be sold to
the public and thus blocking scientists from making further
improvements.
Other obstacles in the path of television, Mr. Lohr
said, are the great expense - which presumably will have to be
borne by advertisers - and the difficulty of "networking" pro¬
grams. Television waves, unlike radio sound waves, cannot be
relayed over telephone wires but require either special cables
or short wave transmission relays. Experiments are being made
with both possibilities, the NBC president said.
XXXXXXXXX
\
5
4/20/37
RADIO SET PRICES GOING UP, SAYS EDITOR
Survey of radio industry shows that current rises in
raw materials, parts, and labor costs will soon be felt in
radio-* receiver prices, according to 0. H. Caldwell, editor of
Radio Today. "A boost of 10 to 15 per cent is looked for when
the new lines are announced in May or June with perhaps mere
increases later1’, he said in the current issue.
,;Facing labor difficulties, some set-makers have been
cautious in fixing new prices too early. Factories which have
not yet been forced into union contracts are holding back
announcements until they learn what uppance may be needed to
meet new costs.
"If coming price increases do not exceed 10 to 12 per¬
cent, distributors and dealers feel that boost will not ser¬
iously affect consumer buying, since radio purchases are made
at long intervals by any one family or buyer, and price memory
does not linger.
"Unless sit-downs and lock-outs further hold up
automobile production, 1937 is going to be auto-radio’s big¬
gest year, by far.
"Plans of the car-makers contemolate a 30 percent
increase in number of car-radios installed this season as com¬
pared with last year, when auto-radio sales were 2,000,000
sets, according to observers in a position to review all makes.
"At least one million auto-radio sets will be sold
through local retail dealers during 1937, according to this
same authority. "
XXXXXXXXXX
EDITORS OPPOSE CURB ON PRESS-OWNED RADIO STATIONS
Opposition to the proposal of Senator Wheeler (D„),
of Montana, to impose a -curb on the ownership of broadcasting
stations by newspapers was voiced last week at the closing
session of the American Society of Newspaper Editors in
Washington.
A resolution objecting to "efforts in Congress to
prevent newspapers owning and operating radio stations" was
adopted.
XXXXXXXXX
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4/20/37
ARTA RUMORED REFUSED A. F. OF L. CHARTER
The press reports carry the announcement of the
granting of a charter by John Lewis' C.I.O. to the American
Telegraphers' Association.
The rumor in labor circles here in Washington is
that this organization, known as the ARTA, several months ago
applied for affiliation with the Commercial Telegrapher's
Union, a branch of the A. F. of L. It is said that a charter
for this affiliation was denied on the ground that the ARTA
refused to comply with the rules and requirements of the
A. F. of L. and further that the A. F. of L. had information
that the ARTA was really backed by Communists.
XXXXXXXX
HARBORD TO BE AWARDED MEDAL OF MERIT
Maj. Gen. James G. Hprb0rd, Chairman of the Board
of the Radio Corporation of America, who was Chief of the
Services of Supply of the American Expeditionary forces during
the World War, will be awarded the Medal of Merit of the Array
Ordnance Association.
The award will be in recognition of General Harbord' 8
service to the national defense and to the industrial develop¬
ment and social betterment of the United States "as a soldier,
humanitarian and public-spirited citizen. "
The medal will be presented at the annual dinner-
meeting of the Army Ordnance Association at the Mayflower
Hotel the evening of May 12, Hilaire Belloc, British author,
historian and military analyst, will address the Association
on the subject, "Yesterday's Wars Are Not Tomorrow's." General
Harbord will speak on "Radio and Industrial Preparedness."
XXXXXXXX
Among new fields explored by the Rockefeller Founda¬
tion in the humanities division during 1936 were the movies
and the radio, it was disclosed last week. The World Wide
Broadcasting Foundation, which furnishes electrical transcrip¬
tions for broadcasting, received $40,000 "for trial work in
the development of radio programs of cultural and educational
value", it was stated.
XXXXXXXX
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! TRADE NOTES
The Telegraph Division of the Federal Communications
Commission has amended Rules 411 and 442 to read as follows*
"Rule 411. No applicant who fails to qualify for
an operator' s license will be reexamined within 3 months
from the date of the previous examination.
"Rule 442. An applicant who fails examination
for operator license of professional class may not be
reexamined within 3 months, but this aoes not apply to
examination of radio-telephone type following one of
radiotelegraph type, nor vice versa, nor one for lower
class following one for higher class of the same type,
nor to successive examinations at a point named in
Rule 30 a. "
Station WMAL, Washington, has asked for modification
of license to increase night power from 250 to 500 watts, 630
kc. and the application has been set for hearing.
Two more stations were added to NBC networks on April
15th. WDEL, Wilmington, Del. , Joins NBC as a regular Basic
Red Network station. WDEL operates full time on a regional
channel frequency of 1120 kilocycles with daytime power of 500
watts and nighttime power of 250 watts. Station WORK, York,
Pa. , Joins NBC as a supplementary station available for use
with the Basic Blue or the Basic Red Network. WORK operates
full time on a regional channel frequency of 1320 kc. with a
power of 1,000 watts. The addition of WDEL and WORK increases
the total of NBC affiliated stations to 124.
W. G. H. Finch, formerly an FCC engineer, last week
announced the first successful transmission of natural color
photographs over ordinary long distance telephone lines. Util'
izing standard public toll lines from Chicago to New York,
modified equipment that is used for black and white news photo
transmissions was employed.
The American Radio Telegraphists’ Association is pre¬
pared to call a strike on the ships of those lines which refuse
to accept it as the bargaining agency of their men under the
provisions of the Wagner Act, according to Mervyn Rathborne,
President,
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4/20/37
Lenox Lohr, President of the National Broadcasting
Company, will address the American Red Cross convention in
Washington, May lsth. The address will be carried on the NBC
network.
First radio transmission of pictures by radio across
the Pacific was accomplished recently when a photograph of the
arrival of Prince Chichibu at Vancouver was transmitted from
San Francisco to Japan, R.C.A. Communications officials at
San Francisco state. The transmissions are purely experi¬
mental, H. H. Christiansen of BCA said. Development of the
circuit across the Pacific is largely being undertaken In
anticipation of the Olympic Games in 1940.
Radio baseball announcers have the dual responsibil¬
ity of H selling" the American public baseball as well as the
program sponsor’s product, it was stated by speakers at the
first national conference of 70 sportscasters held in Chicago
last week. The conference, representing advertisers sponsoring
the majority of basebell broadcasts, was staged under co¬
sponsorship of Knox Reeves advertising agency, Minneapolis,
and J. Stirling Getchell, Inc., New York. Donald Davis, Presi¬
dent of General Mills, said his firm and Socony- Vacuum will
spend $1,500,000 for baseball broadcasts over a period of five
months.
XXXXXXXX
NAVY PIONEER IN COMMUNICATIONS FIELD, SAYS RODMAN
The United States Navy was a pioneer in the field of
communications, Admiral Hugh Rodman said in an article in the
Indiana History Bulletin.
rt0ur Navy was the pioneer in the field of systemati¬
cally collecting and distributing information of every kind to
all seagoing ships, no matter what their nationality, that
would facilitate their passage at sea and keep them out of
danger”, he said. ’’Today it is the greatest source of this
kind on earth. Our Communications Service keeps in close touch
with all information of use to seagoing vessels and regularly
broadcasts this as well as weather forecasts, storm warnings,
hydrographic information, time signals, and news items of
importance. It receives SOS calls, and helps to provide
assistance. It furnishes radio-compass bearings to vessels
at sea, as means of finding their positions, often warning them
of danger. It has been the means of saving many lives and
millions of dollars worth of property.
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"During the Japanese attack on Shanghai the news
was sent by Navy radio to Washington, thence to Japan, where
it had not yet been received. From Japan there came inquiries
back to Washington seeking confirmation. It was confirmed and
the whole time occupied, from its inception to comnletlon, was
twenty-five minutes. Our installations are sufficiently power¬
ful to send a single impulse three times around the world, and
what is to me more wonderful still, it is automatically record¬
ed each time it passes its initial point of transmission.
"Not only does our Naval Observatory serve the whole
country with the most accurate time service in the world, but
by its broadcasting it serves ships all over the face of the
earth that depend upon this for accurate and safe navigation. "
XXXXXXXX
RADIO PATENT BAN WEAKENING IN CZECHOSLOVAKIA
An improvement in the radio market of Czechoslovakia
is forecast by U. 3. Consul General Raymon E. Cox, Prague.
"The sale of American radio apparatus in Czecho¬
slovakia. at present is negligible mainly because of the patent
pool which has existed between the local ' Radiotechna 1 Company ,
representing the large German Telefunken concern, and the
Dutch Philips Company", he reports. "This patent pool has,
since January, 1932, up to the present time, been able to pre¬
vent successfully the sale of American radio sets on this
market through declining to grant permits for the sale of such
apparatuses on the ground that they infringe upon its patent
rights. During this long period of exclusion, American radio
sets were extremely competitive in price and quality.
"Important changes are occurring which, it is believ¬
ed, will seriously weaken the patent position of the controlling
companies. Several of the patents for which they claim to have
the sole rights have been successfully contested in the local
courts, and it is understood that a number of basic patents
have expired. Consequently, the patent pool has organized a
cartel of Czechoslovak radio producers and dealers in the hope
that it will be able to continue its control of the market
through the regulation of production and prices of radio sets,
and through compelling dealers to sell only the products of
the cartel under threat of non-fulfillment of their orders. "
XXXXXXXX
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4/20/37
DON LEE TELEVISION SUCCESSFULLY SPANS 10£ MILES
The Television Division of the Don Lee Broadcasting
System, the Mutual Broadcasting System's California affiliate,
piloted by Harry R. Lubcke, staged a demonstration last week
at the California Institute of Technology's annual exhibit.
Witnessed by laymen and celebrated scientists,
among them Nobel Prize Winner, Dr„ Robert A. Millikan, tele¬
vision programs, both "sight and Sound", were successfully
transmitted over a distance of 10-jjf miles. It was done not
merely once, but many times, during the day at 15-minute
intervals.
These repeated demonstrations were performed via
the Don Lee owned and operated experimental television station
W6XA0 which carried the images, and an auxiliary ultra-short
wave channel which conveyed the sound.
They marked the first time that high-definition
television (300 lines to the image, repeated at the rate of
24 images per second) had been broadcast so great a distance,
according to a WOR press statement. Transmitters were located
in the Don Lee Building in Los Angeles, while the television
receiver was located in the Physics Exhibit at the California
Institute of Technology in Pasadena, a distance of slightly
more than 10-g- miles.
XXXXXXXXX
EL SALVADOR BUYS ALL- WAVE EQUIPMENT FROM U. S. FIRM
The Government of El Salvador has agreed to purchase
from an American concern all- wave radio equipment, according
to a U. S. Consular report. This equipment will be used for
radio-telephonic communications with other Central American
countries and Panama during the daytime, and for radio broad¬
casting at nighttime. Information regarding wave length,
power, etc. , will become available only after installation.
The total cost of the apparatus is stated to be
$14,525.15. According to the last report of Government finances,
as of December 31, 1936, the sum of $22,772, or approximately
$9,110 at present exchange rates, has been set aside for this
purchase.
XXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
\ LE.OAL OePAHTsrtENT
il I © 1 8 W i r
L 24 193/
mMmmmdm
INDEX TO ISSUE OF APRIL 23, 1937.
The Array Amateur Radio System As Seen By Array Man . 2
Examiner Urges Denial Of Eugene Meyer Application . 5
Payne-Boylan Tax May Be Delayed By President's Pledge . 6
Record Summer Radio Audience Forecast In CBS Survey . 6
Miami Beach Gets New Station; Others Recommended . 7
NBC Expands Facilities In Six Key Cities . 8
Coronation Procession To Be Televised By BBC . 9
Publisher-Broadcasters Hold Informal Meeting . 10
Radio Boon To Rural Area, Says Lohr. . 10
Giulio Marconi Joins NBC To Study . 11
Trade Notes. . 12
No. 1022
THE ARMY AMATEUR RADIO SYSTEM AS SEEN BY ARMY MAN
The Array amateur radio system pops up irregularly
in the news along with national disasters, but it is seldom
that the set-up is calmly surveyed as in the current issue of
the Signal Corps Bulletin.
The following article was written by Lieut. Charles
W. Roth, of the U. S. Signal Reserve:
"Briefly, the purposes of the Array amateur radio
system are to furnish emergency communication, to offer addi¬
tional facilities for the American Red Cross, and, most
important from a military view, to train potential Army radio
operators.
"Administration of the system is handled from the
Office of the Chief Signal Officer, through corps area signal
officers. Aides in this work are liaison officers, who are
Regular Army personnel; and radio aides, who are either civil¬
ians, National Guard, or Reserve officers. These radio aides
are normally radio amateurs capable of coordinating procedure
in the Army and civilian attitudes and methods.
"The members of the A. A. R.S. are of all ages and
occupations: Some are high-school students of tender age;
others, successful business executives or professional men.
They have, however, a common interest in a systematic organiza¬
tion such as this. While other radio amateurs may be inter¬
ested in * dx* ( long-distance radio contacts), rag-chewing,
experimenting, or traffic-handling, the men - and a few women,
too - who make good members of the A. A. R.S. are those who want
systematic activity. There is a thrill in being part of the
machine-like function of our nets, or in contributing to this
worth-while endeavor.
"While emergency operation is infrequent in this corps
area, there have been several occasions which demonstrated the
value of past training. Last Winter, sleet storms in Illinois
and Michigan interrupted normal communication channels, and
Army amateurs remained the only means of communication, carrying
the traffic load for such periods as were necessary.
"The conditions under which Army amateurs operate,
compared with those of a Regular Army net, will demonstrate
some of our training difficulties.
2
}
4/23/37
"An Army net (brigade, for instance) operates on a
cleared frequency. Stations in the net are brigade and its
regiments. Aside from possible enemy ’Jamming', no inter¬
ference from other radio stations is anticipated. Where an HQ,
is required to operate in two nets (brigade and regiment),
there are two sets of equipment and operators.
"The Arn\y amateur net, on the other hand, usually
operates on its assigned frequency, but this frequency is with¬
in an amateur band, and any pne or more of some forty thousand
other amateurs are free to operate on that same frequency.
Usually, two to four such outsiders can be heard, slowing down
net drill. Further, instead of being only short distances
apart, net stations may be separated by as much as 250 miles.
Due to vagaries attendant upon high frequency signals, it is
frequently observed that net control stations may be lost, or
blanketed by east-coast stations.
"Our Army amateurs ordinarily operate alone, having
no relief operators for the period of arill, and so have to
handle all records as well as transmission and reception. Fin¬
ally, a station operating in two nets (State and district, for
example), must operate on two separate frequencies. As only
one transmitter at a station is the general rule, this neces¬
sitates shifting frequency to meet schedules, and thus a con¬
tinuous chain of communication is delayed. vor our work, the
time loss is not enough to warrant two-transmitter stations.
"Army operators are trained in tactical net operation
and use of procedure signals before they enter an actual radio
net, while Army amateur operators receive all their training
via radio communication. The latter, of course, involves the
difficulties of lost signals, interference, and resultant cor¬
rections, rendering the process necessarily slow.
"Considering the methods of instruction, it is obvious
that a good portion of our success is dependent upon the quali¬
fications of the NC5. Too frequently, an inexperienced man must
be made NCS (local net control station) for reasons of exped¬
iency rather than because of his ability. Then, too, we must
not overlook the fact that the frequent turn-over in NCS's,
with resultant shortage of time for proper organization and
instruction accounts, in great measure, for failure to realize
maximum proficiency in tactical net operation.
"What can be done to counteract this turn-over? At
frequent intervals, there are general special activities such
as ZAG contests, unknown station finding, unknown keyword cipher
messages, goniometric problems, etc. , planned and executed by
the Chief Signal Officer. It is increasingly evident that this
is not enough. It is too general. There must be more corps
area activity, which has a more personal appeal.
3
4/23/37
"An attempt has been made during the past year or
so, in response to growing demand, to have planned and organ¬
ized, activity which is confined to the limits of our corps area.
As an experiment, special assignments were made, by radio, for
selected members to monitor other nets, supply requested in¬
formation, originate specific traffic, assume NGS position,
etc. This preliminary work showed that the master traffic
schedule for the corps area was not suited to the new plans,
and that nets were not coordinating as they should.
" Accordingly , the opening of the 1935-36 season
found a suitable master schedule in effect, and plans ahead for
activity. The schedule was such that normal drill could be
called off, substituting for it a general problem. Such pro¬
blems are simulated hurricanes, in which special nets must be
set up by the (corps area, net control station), requiring
all stations to stand by to determine their assignments. Neces¬
sary emergency traffic is then handled, being concerned with
relief measures, new items, etc. Possible variations are
cyclones, floods, wars, sleet storms, and riots.
’’Another general activity measure is in finding a
station whose frequency is unknown, and following further
orders contained in a general broadcast from such unknown sta¬
tion. This type of activity can include cipher messages in
unknown key words, or division of the broadcast among several
stations. A considerable number of variations is available so
that there need be no fear of monotony.
'’These planned activities, plus a general program
emphasizing procedure rather than a high total of messages
handled, have resulted so far in a marked improvement in tech¬
nique. Without such planned and coordinated activity, the
members do not realize that they are part of an extensive system
of which they may be important links; without it they feel
isolated, and distinct entitles complete in themselves. It is
most important that they have the broader conception, for then
they work with more interest and concentration, resulting in
quicker assimilation of the instruction offered. This benefit
continues, for an interested member remains with the A. A. B. S.
as long as he can, and if forced to leave, there is a trained
man to replace him. Strict adherence to procedure and schedules
must be maintained from corps area net down, if success is
desired.
"This tendency toward directed activity within a corps
area is not confined to the sixth, but is widely accepted. Not
only the members, but the administrative staff as well, are
gaining a working knowledge of the possibilities inherent in
the A.A.P.S. , and training is being called for and given, so
that the system can operate at its best.
4
4/23/37
"Other suggested aids, outside of the purely operat¬
ing work, are concerned with the maintenance of morale within
the system. Ratings as sergeant, corporal, private first
class, private, or specialist, first class (second, third,etc.),
are employed in some corps areas, and considera tion should be
given to this. It is also nossible that full courses of study
might be offered by corresoondence , leading to Reserve commis¬
sions. Membership in the Enlisted Reserve is another consider¬
ation. The feeling of A. A. R.S. members of this corps area is
that they want to be associated with the Army, and anything
done to enhance this feeling will helo increase interest.
"This corps area needs a standardized routine of
handling recruits. The application form, reading ’ I do not
want to take a physical examination® , is undesirable. Consider
the following procedure:
"A recruit, no matter what the course of his applica¬
tion, is assigned to a net and his DNCS (district net control
station) notified. If recruited in the district net, no action
is required of headquarters. The activity of the recruit is
reported weekly by the DNCS, and only after an uninterrupted
two months® constant drill attendance is he eligible for
membership. The DNCS forwards the recruit’s name and address
to the SNCS at the close of the recruit's first drill. The
SNCS, at the end of the probationary period, fills out an
application blank to be sent to the recruit, who completes
his portion of the application and forwards it to the DNCS.
The DNCS adds his recommendation for membership, and
appropriate remarks, forwarding the application to the liaison
officer who immediately issues a membership certificate and
any necessary supplies. "
XXXXXXXXXX
EXAMINER URGES DENIAL OF EUGENE MEYER APPLICATION
The application of Eugene Meyer, wealthy publisher
of the Washington Post and Reoublican leader, to build a radio
station in Washington encountered its first obstacle this week
when Exajniner Ralph L. Walker recommended that it be denied.
In the name of the Mid- Atlantic Comoration, Mr.
Meyer applied for a construction permit to use 1570 kc. with
1,000 watts and unlimited time.
Similar applications were filed by the Journal Com¬
pany, of Milwaukee, and the Trenton Times, Trenton, N. J.
Examiner Walker recommended that the frequency be allocated
to the Trenton applicant, which asked only 250 watts power.
XXXXXXXXXX
- 6 -
t
4/23/57
PAYNE-BOYLAN TAX MAY BE DELAYED BY PRESIDENT'S PLEDGE
The assertion of President Roosevelt in transmitting
the relief budget that there would be no new taxes proposed so
long as Congress does not increase the national expenses has
given broadcasters reason to hope that the Payne-Boylan tax
at least will be delayed until next session.
Chairman Doughton, of the House Ways and Means Com¬
mittee, where all tax legislation originates, stated that he
had not examined the tax bill, which would raise more than
$6,000,000 from broadcasters, but he intimated that disposi¬
tion will depend upon word from the White House.
Broadcasters and their attorneys in Washington,
while refraining from public statements, privately denounce
the tax scale as "exorbitant". Even members of Congress who
favor license fees for broadcasting believe that the matter
should be studied thoroughly before legislation is adopted.
Although the matter may go over until next session,
however, it is believed that Commissioner Payne has opened the
way for an inquiry that will lead ultimately to a license fee
system or some form of taxation on broadcasting stations.
It is certain that when Congress begins looking
around for new sources of revenue to balance the budget that
it will examine the broadcasting field.
XXXXXXXX
RECORD SUMMER RADIO AUDIENCE FORECAST IN CBS SURVEY
Bringing up to date statistics prepared by Dr. Daniel
Starch, the Columbia Broadcasting System this week issued a book¬
let forecasting that the approaching Summer will produce the
largest regular radio audience this country has known.
Highlights of the report are that:
There will be 2,000,000 more radio families in the
United States this Summer than last.
Radio receivers will total 34,000,000.
Radio~equipped homes will number 25,000,000.
Each Summer day will produce 77,000,000 family hours
of listening.
There will be 4,000,000 "extra" radio receivers in
the 25,000,000 homes.
Five million automobiles will be equipped with radio
sets.
6
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Asking the question of "how often and how much"
will the 34,000,000 radio receivers in the country be in use
in the Summer of 1937, CBS says:
"To Dr. Daniel Starch these are recurrent questions
about the radio audience; question to which he and a nation¬
wide staff have devoted at least four months each year for
the last three years.
"The recent compilation of personal interview
No. 182,404 with the American public on its radio habits (by
far the largest study of this type ever undertaken) gives
Dr. Startch and his staff a three-year record of the listen¬
ing habits of the American people, and the listening habits
for three Summer seasons.
"Specifically, Dr. Starch found that on the average
week-day in July, 1936, 70^ of all home radios were in use
sometime daily.
"16,100,000 families listen daily an average of
4 hours and 24 minutes, or 70,840,000 family-hours of home¬
listening each Summer day in *36. This does not include
families listening in automobiles.
"This Summer the astronomical but actual sum of
77,000,000 family-hours of home-listening each day looms as
a new 1937 summer radio record. "
XXXXXXXXX
MIAMI BEACH GETS NEW STATION;. OTHE-S RECOMMENDED
The Federal Communications Commission this week
granted a construction permit to A. Frank Katzentine to erect
and operate a new broadcasting station in Miami Beach, Fla.,
on 1500 kc. with 100 watts power, unlimited time.
Examiners* reports recommended other new stations
for Portland, Me., Barnstable, Mass., Cheyenne, Wyo. , and
Johnson City,. Tenn.
Favorable reports also were submitted on application
of WMEX, Boston, to transfer from 1500 to 1470 kc. , and to
increase its power to 5,000 watts; and KARK, Little Rock, Ark. ,
to increase its power to 1,000 watts.
Among the applicants whose requests were disapproved
by Examiners was Richard M. Casto, of Johnson City, Tenn. ,
whose counsel, George H. Smith, of Washington, was rebuked by
the FCC for allegedly inserting documents in the file in
violation of Commission regulations. The Examiner, George H.
Hill, described the incident in detail although he made no
mention of the FCCfs subsequent action and the oending inquiry
being conducted by a Special Committee headed by Commissioner
George Henry Payne.
XXXXXXXX
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NBC EXPANDS FACILITIES IN SIX KEY CITIES
An extensive building program involving expansion
and improvement of six National Broadcasting Company plants
in key cities of the Red and Blue Networks, was announced this
week by Lenox R. Lohr, President of NBC.
The project includes immediate construction of new
stuaios at Philadelphia and Schenectady, the completion of a
building already under way in Washington, and the subsequent
provision of new facilities at Hollywood, San Francisco and
Cleveland.
Radio's rapid development, the increase in NBC busi
ness and the growth of the company's public service activities
make such expansion immediately necessary, Mr. Lohr stated,
in order that available facilities keep pace with current needs.
Changes and new develooments in the six cities will
be made with a view to placing all NBC broadcasting plants on
the same technical basis as the pedio City and Chicago studios.
Plans also include complete air-conditioning, sound-proofing
and acoustical treatment, and lighting devices designed to
reduce heat radiation to a minimum. They also provide space
for future development of television activities.
Ground will be broken at Philadelphia within a week
for the construction of a six-story building at 1619 Walnut
Street which will house NBC studios and offices and Station
KYW, the Westinghouse Electric and Manufacturing Company's
outlet of the NBC-Red Network. The studios equipped will cost
about $600,000 and will be ready for occupancy November 1st.
NBC's new Washington studios, now nearly completed,
will be in operation July 1st, and will double the capacity of
the present Washington studios. The NBC quarters will occupy
the greater portion of the newly constructed building of the
Trans-Lux Washington Corporation,
Because of the great number of talks on national
affairs originating in Washington, the new studios will include
two of the speaker type. Three others will be used for enter¬
tainment broadcasts. The NBC quarters, housing stations WRC
and WMAL, will have an almost continuous frontage of windows on
three sides. The cost of the plant, including the new trans¬
mitter contemplated in Prince George's County , Maryland, for
Station WFC, will be about $350,000.
Negotiations have been completed, Mr. Lohr said, for
construction of a new NBC building at Schenectady to house
Station WGY of the General Electric Company. Work will begin
shortly on the studios, which will occupy a space of 20,000
square feet, and it is expected that the plant will be ready
for use September 1st. Cost of building and equipment is esti¬
mated at $300,000.
Plans for improved facilities at Hollywood, Cleve¬
land and San Francisco are still in a formative stage. It is
planned, however, to double the capacity of the present Holly-
wood studios and to expand those at San Francisco and Cleveland
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4/23/37
CORONATION PROCESSION TO BE TELEVISED BY BBC
The still new television broadcasting facilities of
the British Broadcasting Corporation will be put to a severe
test on May 12th during the coronation of George VI and Queen
Elizabeth. The famed coronation procession is to be televised.
Anticipating the significance of the achievement,
Wo rid- Radio comments:
’’Outside broadcasts by television begin with a literal
flourish of trumpets, for the inaugural event will be the tele¬
vising of the Coronation orocession from a specially chosen site
at Apsley Gate, Hyde Park Corner. As Coronation processions
occur once or twice in a lifetime, no television enthusiast
could have hoped for a more auspicious start. Indeed, the dif¬
ficulty may be to avoid anti-climax in the weeks that follow.
"Although only one camera position is Dermitted, a
splendid view of the procession should be obtained as it
approaches down the East Carriage-road, passing within a few
feet of the camera, crossing Hyde Park Corner on its way to
Constitution Hill, and there should be wide scope for panoramic
effects. Telephoto lenses, which have given excellent results
in Alexandra Park, should also yield good close-ups, though
much will depend on the weather conditions.
"Owners of television sets as well as visitors to the
hundreds of viewing-rooms all over Loiidon will undoubtedly seo
the procession under more comfortable conditions than many
people who have paid for sets on the route; and they will also
have the benefit of a running commentary,
"Among the features of Coronation Week in television
will be a specially adapted version of ’Hamlet’ and a Coronation
edition of ’Picture Page’ - to be televised on Tuesday instead
of the usual Wednesday - in which interesting people associated
with the preparations for the national festivities will be
interviewed in the studio. Replicas of the Crown Jewels will
also be shown.
"Another outstanding item will be a ’tour’ of the
London Television Station. The cameras will be taken through
the transmitter halls, into the make-up and dressing rooms,
and. through the main corridor to the studio itself, where a
typical production will be seen 'on the set.’ Viewers will see
how the cameras and microphones are handled and will have
glimpses of the control-room and of the producer and his
assistants at the control desk overlooking the studio."
XXXXXXXX
- 9 -
’
4/23/37
PUBLISHER-BROADCASTERS HOLD INFORMAL MEETING
An informal meeting of newspaper publishers who own
redio stations was held Tuesday afternoon at the Hotel Waldorf-
Astoria, N. Y. About 75 attended.
"While lethargic in note, the sense of the meeting,
according to Variety , seemed to be:
"(a] Newspaper- owned stations should not ask either
the A.N.P.A. nor the N.A.B. to consider the peculiar position
of the press-controlled broadcasters as they would be a minor¬
ity without the sympathy of their contemporaries in both cases.
"(b) Newspaper stations should not set up a Washing¬
ton lobby, but should work through their regular counsel and
keep in touch with one another.
"Ex-3enator Dill was a speaker, as were Louis G.
Caldwell and Gardner Cowles. Latter stressed the idea of not
lobbying or otherwise inciting artillery fire. Dill mentioned
the six months’ license as a perennial source of weakness in
radio.
"Discussion from the floor was without benefit of
introduction or any record. A suggestion that combination
rates be dropped and that a broad-minded attitude be taken on
listing competitor radio logs did not arouse much enthusiasm.
"Shotgun divorce of press- radio has pubs’ worried
somewhat, but there is no united sentiment apparently on what
measures to take to combat the move. Several speakers pessi¬
mistically referred to the different political color of them¬
selves and the administration in Washington. "
X X X XX XX X X X
RADIO BOON TO RURAL AREA, SAYS LOHR
"Radio has become one of the most oowerful means of
communication in breaking down the physical and cultural isola¬
tion to which rural people in remote areas were subjected only
a comparatively few years ago", said Lenox R. Lohr, President
of the National Broadcasting Company, in an address on the
General Electric Farm Forum from WGY in Schenectady, on April 16.
"During the economic emergencies of the past few years,
agriculture has had a period of readjustment. Information on
conservation, drought, crop control and insect pest control
has been broadcast daily to keep the farmer informed on all of
the late developments in connection with his government. Today,
instead of waiting for a local county or state leader to explain
what is going on in these fields, the farmer is able to get his
information direct from some of the cnief policy-making officers
by radio.
10
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4/23/37
"It is ray opinion that no class of people has
received the benefits from radio as much as has the farmer",
said Mr. Lohr. "The radio has brought him entertainment,
music, news of general interest and also market and business
news, which has been of direct financial value. The lives of
rural people have been broadened because radio has brought
into the farm home these national and world-wide affairs and
events", said Mr. Lohr.
"Weather, the governing element in raising crops,
is relayed to the farmer several times daily by radio. It
has been said that the radio is the farmer's substitute for
the ticker, the telegrapn, the printing press and the luncheon
club. I believe that there is a lot of truth in that state¬
ment, because radio has done a great deal to place the farmer
on a par with his city brother. The most isolated farmer,
who never had been able to leave his county or state, can now
attend by radio the finest opera presentations in New York,
the inauguration in Washington, the coronation in London and
the most stimulating musical programs from all parts of the
globe. This has brought the farmer and his family into a
direct relationship with the city and impressed on him the
city way of thinking", said Mr. Lohr.
XXXXXXXXX
GrIULIO MARCONI JOINS NBC TO STUDY
Glulio Marconi, only son of Marchese Guglielmc
Marconi, will join the National Broadcasting Comoany next
Monday to complete an already extensive apprenticeshio in the
science with which his family name is so intimately associated.
The long strides made by radio in the United States
so deeply impressed the father of wireless communication that,
on his suggestion, his son - an alert, handsome young man of
26 - has come to this country for several years of study and
training in the most advanced radio techniques of the National
Broadcasting Company and the Radio Corporation of America.
Young Marconi, who arrived in New York from Naples last Sunday,
has already had three years of similar study in England and
in his native Italy.
It was while Mr. Marconi was pursuing his radio
studies with the Italian Marconi Company in Rome that the plan
to come to America was formulated. The friendship between his
father and David Sarnoff, President of RCA, made it possible,
Mr. Marconi explained.
XXXXXXXX
11
4/23/37
TRADE NOTES
W. Wright G-edge, of Detroit, a Direction of the
National Association of Broadcasters and associated with WMBC,
Detroit, died this week. He had been elected a NAB Director
for a three year term in 1935.
Glenn I. Tucker, formerly with the Radio Corporation
of America, is Vice-President of a new advertising agency in
New York, Thornley and Jones, Inc., formed by the association
of George H. Thornley and John Price Jones.
Ground-breaking ceremonies for the construction of
the new CBS studios and offices in Hollywood will be held
Tuesday, April 27, in a special broadcast over the entire
WABC-Columbia network, from 4:45 to 5:15 P.M., ED3T.
The new CBS radio center in Hollywood will include
auditoriums, studios and offices of Columbia's newly acquired
50,000-watt radio station KNX, as well as other facilities for
servicing the network. The structure will front on Sunset
Boulevard, occupying the block between Gower and El Centro
Streets, and the entire project will cost approximately
$1,000,000.
NBC’s station total, already at an all-time high,
will rise to 125 on May 1 when W3AN, the only station in
Allentown, Pa. , becomes an optional outlet available on either
the Basic Blue or Basic Red NBC networks. WSAN operates on
1440 kilocycles with power of 500 watts. The network rate
will be $120 per evening hour.
William S. Paley, President of the Columbia Broad¬
casting System, has commissioned Alexander Calder, inter¬
nationally known sculptor, to design the Annual Amateur Radio
Award, which will be presented to the individual who through
amateur radio has contributed most usefully to the American
people either in researcn, technical development or operating
achievement.
George Henry ^ayne , Federal Communications Commis¬
sioner; Governor Elmer A. Benson, of Minnesota, and John P.
Devsney, president-elect of the National Lawyers’ Guild were
to speak over WOR tonight (Friday) while at a dinner of the
Guild being tendered to Mr. Devaney, who was former Chief
Justice of the Minnesota Court of Appeals. 'T’he National
Lawyers' Guild has been an active force in endorsing Presi¬
dent Roosevelt's Supreme Court proposal and the guest speakers
at the dinner were to express their approval of the Guild's
stand.
XXXXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Radio Fade-Outs Not Due To Increase In Sun’s Heat . 2
News Thefts, Foreign Propaganda By ^adio Are Feared . 3
Zenith Television Application Set For Hearing . 5
Automotive and Drug Industries Lead Net Stride . 5
U. S. Radio Exports Shoo-t Up In February . 5
Editor & Publisher Raps Payne Broadcasting Tax . 6
Thad Brown Lauds Communications Act At Phone Meeting . 7
FCC Affirms Denial Of Mackay Oslo Application . 7
Trade Notes . 8
Payne Sees ’’Rough Road” For Broadcasters . 9
Increased Sales Call For Enlarged Argentina Philco Plant.... 10
Editor Fears Surfeit Of Ads When Television Comes . 11
Radio Practitioners Move To Larger Quarters . . . 12
The Blue Adds WSPD . .12
No. 1023
\
April 27, 1937.
RADIO FADE-OUTS NOT DUE TO INCREASE IN SUN'S HEAT
An intensive study of radio fade-outs and their rela¬
tion to solar eruptions has convinced Dr. R. 3. Richardson, of
the Mount Wilson Observatory, that the communication disturbance
is not due to any sudden increases in temperature from the sun,
according to a statement released by the Carnegie Institution
of Washington.
The scientist suggests that the radio fade-outs may
be caused by the condition of the ionosphere, in addition to
radiant energy from the sun.
After reviewing the experiments of Dr. J. H. Dellinger,
Director of Radio of the U. S. Bureau of Standards, in this
field and his own observations made at the Mount Wilson Observa¬
tory, Dr. Richardson said:
"The radiation producing the fade-outs seems undoubt¬
edly to come from the outbursts that show so conspicuously on
hydrogen and calcium spectroheliograms . A natural assumption
would be that a small area on the sun, at exceptionally high
temperature, emits a great amount of black-body radiation of
high frequency; but direct observational evidence shows that
this assumption is untenable.
"In the course of the routine solar observing we have
by chance photographed many bright eruptions. If these erup¬
tions were associated with black-body radiation of high tempera¬
ture, they should also have shown conspicuously on the mono¬
chromatic images taken at the same time. An inspection of many
plates recording violent hydrogen and calcium eruptions fails
to show any trace of a corresponding image on the photographs
made with the continuous spectrum.
"These observations indicate that fade-outs are not
caused by any increase in radiation of the kind associated with
a great increase in temperature.
"The question naturally arises why certain eruptions
produce radio fade-outs while others do not. It is suggested
that possibly the condition of the ionosphere, in addition to
radiant energy from the sun, may be a factor in determining
whether or not a fade-out of high frequency radio transmission
occurs. "
XX X XXX X XXX
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4/27/37
NEWS THEFTS? FOREIGN PROPAGANDA BY RADIO AFE FEAFED
Viewing with alarm the increasing broadcasting of
news both by American long-wave stations and foreign short¬
wave outlets which may be heard in this country, the Radio
Committee of the American Newspaper Publishers' Association
proposes that the matter be on the agenda of the North Ameri¬
can radio parley at Havana in November.
An appeal was made by E. H. Harris, Chairman of
the Committee, to the publishers last week at their New York
convention, to guard against the theft of news at home and
the Inroad of foreign propaganda, via short-waves.
The Committee observed that radio is "gradually
changing both the metchanical operation of a newspaper and
the relation of the newspapers and the press associations to
the general public. "
Regarding the "foreign news propaganda", the Com¬
mittee had the following to say:
"Many foreign countries, recognizing the possibil¬
ities offered by short wave, have built powerful broadcasting
stations with directional antennas pointed toward North and
South America so that they may be able to pour their political
propaganda programs into the Americas. These stations are
now so powerful and so well equipped that it is possible to
receive these short wave broadcasts in the Americas in the
English and Spanish languages with almost the same clarity as
the broadcasts of many stations of our own in the regular
broadcast band. Some European countries have blotted out
foreign propaganda by setting up an interference on the same
wave length on their own borders. Another method used by
some European countries is to make it a penal offense for any
citizen to own a set capable of receiving a foreign broadcast.
Neither of these methods would be practicable and possible
in the United States.
"The Committee believes that if a time could be set
aside for the broadcasting of regular Press-'Radio Bureau re¬
ports generally in the United States this practice would off¬
set to some extent the oossible influence of foreign propa¬
ganda. By this method we would meet propaganda with accurate
press association news and the world would then be in a posi¬
tion to Judge between the merits of the two services. It
must be remembered that our press associations are the only
news-gathering agencies in the world which are not subject to
control, either direct or indirect, or recipients of support,
financial or otherwise from government.
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4/27/37
’’Unless some action is taken by the press of the
United States to offset this governmentally engineered
propaganda in the form of foreign news broadcasts, it eventu¬
ally will become a serious problem not only for the press but
also for our own Government.
Publishers were urged to protect their news against
unauthorized broadcasts, but at the same time they were warned
that they ’’have no monopoly on the business of gathering news”.
"From time to time your Radio Committee has advo¬
cated that publishers and press associations take precautions
to protect their property rights in the news which they have
gathered”, the Committee stated. ’’The Supreme Court on various
occasions has handed down decisions which leave no doubt that
newspapers and press associations have a property right in the
news which they have gathered.
”We should not tolerate a situation in which there
is a general pilfering of our news. The proprietary rights in
our own news are our stock-in-trade. We again appeal to pub¬
lishers to give serious thought to this subject, because the
entrance of radio into the field of general communications has
opened a medium which encourages the pilfering of news.
’’While a very large part of our news to and from
foreign countries, and some of it from point to point in this
country, is handled by means of short wave radio, experiments
are being carried on now to develop sending and receiving
machines which eventually may provide secrecy in the trans¬
mission of our own news.
”0n the point of the broadcasting of news on the
regular broadcast band, publishers and press associations have
followed up these violations through court action until broad¬
casters are now more generally recognizing property rights.
"Publishers should investigate their news departments
to see if their news is being used for sale to advertisers for
broadcast purposes in unfair competition with newspapers.
”Again we want to state that newspapers and press
associations have no monopoly on the business of gathering news.
They have no control over any news which they have not gathered.
"Neither Mexico nor Canada has laws protecting pro¬
perty rights in the news which the newspapers and the press
associations have gathered, and most of the foreign nations
have made no provision to protect the property rights in news.
The publishers associations in Great Britain have started a
movement to have laws passed by the various governments which
will grant to newspapers and press associations the same pro¬
perty rights that now exist in the United States.
4
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4/27/37
"Our press relations with Mexico need some atten¬
tion because our press associations lose their property rights
when they cross the border. Under the present arrangement,
Mexican radio stations are taking the news out of Mexican
newspapers and broadcasting it back to the United States to
the detriment of our newspapers. This should be remedied.
This question could probably be considered at the forthcoming
regional radio conference which will convene in Havana next
November, and where both the United States and Mexico are
expected to be represented."
XXXXXXXX
ZENITH TELEVISION APPLICATION SET FOR HEARING
The application of the Zenith Radio Corporation,
Chicago, for a permit to erect and operate a television broad¬
casting station has been set for hearing by the Federal Com¬
munications Commission. The time has not been fized.
Zenith proposes to use 42000-56000 and 60000-86000
kc. with 1,000 watts visual power and 1,000 watts aural power,
unlimited time.
XXXXXXXXXX
AUTOMOTIVE AND DRUG INDUSTRIES LEAD NET STRIDE
The automotive and drug industries, increasing their
expenditures $431,419 and $588,102 respectively, accounted for
almost half of the rise in NBC’s gross network revenue for the
first quarter of 1937 over 1936,
Automotive expenditures rose from $627,739 in 1936,
to $1,059,158 or 68.7 percent, while drug expenditures increased
from $2,841,116 to $3,429,218, or 20.7 percent,
XXXXXXXX
U. S. RADIO EXPORTS SHOOT UP IN FEBRUARY
Exports of radio equipment by United States manu¬
facturers in February amounted to $2,376,000 as compared with
$1,829,000 In the corresponding month last year, according to
the Division of Foreign Trade Statistics, Department of Commerce.
The comparative figures for January and February are:
1937 - $4,960,000; 1936 - $3,868,000.
XXXXXXXX
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4/27/37
EDITOR & PUBLISHER RAPS PAYNE BROADCASTING TAX
Joining the more anonymous howls of broadcasters,
the American publishers, who are rapidly becoming broadcasters
as well, have joined in the protest against the proposed scale
of taxes on broadcasting stations as suggested by Commissioner
George Henry Payne.
Editor & Publisher in its current issue attacked the
tax as embodied in a bill introduced by Representative Boylan
(D. ), of New York, as "confiscatory in nature" and "hostile
in intent to the present ownership of radio".
Frank A. Arnold, former radio executive, in his
column "Fadio and the Newspapers" in the same issue, criticized
the tax scale as excessive.
Both, however, admitted that the broadcasting industry
might well be taxed, but in a different fashion.
Said the editorial: "The politicians are moving in
on 'the broadcasting industry from all sides, and this tax pro¬
posal has all the earmarks of an effort to limit the power
and the range of commercial stations. mhe bill would exempt
stations which do not broadcast commercially , and also sta¬
tions operated by the U. S, government, any state or terri¬
tory, or the District of Columbia. One doesn't tax the
instrumentalities of government.'
"With a reasonable range and an equitable basis of
special taxation on broadcasting no one will quarrel. For
the privileges it enjoys on facilities that belong to the
public, the industry should be willing to pay, and pay well -
but a privilege tax of $150,000 on a 50, 000-watt station is
unconscionable. It is not comparable with the special taxes
levied under the Narcotics Act or the Firearms Act, cited by
Mr. Payne as largely regulatory in purpose and approved by the
courts.
"It is confiscatory in nature, hostile in intent to
the present ownership of radio and designed to accomplish by
pressure the conversion of radio to a pure public utility.
Desirable as that may be to politicians who like the one-way
radio channel as distinguished from other, and uncontrollable,
methods of communication, it is a long way from representing a
wide public sentiment."
Mr. Arnold's conclusion, after a discussion of the
tax, was:
"Broadcasting is a one-sided business. All its
product is given away without compensation from the audience
and its only source of income is the sale of a portion of its
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4/27/37
time for commercial programs. A relatively few large sta¬
tions have made money during the last five years. The net¬
works have been prosperous as shown by their advertised
figures. But how about the hundreds of individual stations
that are barely making a living?
"If the industry must be taxed, let the burden be
placed where it belongs - on the stations and networks that
are making the 'enormous profits', and figured on either
gross income or net profits. By this method, even though it
involves some clerical labor, a result can be arrived at
fair alike to the little fellow who makes perhaps $5,000 a
year net and the big operator whose figures run into the
millions. "
XXXXXXXX
THAD BROWN LAUDS COMUNI CATIONS ACT AT PHONE MEETING-
After reviewing the history of federal regulation
of communications, Thad H. Brown, Vice Chairman of the Tele¬
phone Division of the Federal Communications Commission, praised
the Communications Act of 1934 in an address last week at
the Annual State Convention of the Ohio Independent Telephone
Association in Columbus, Ohio.
Commissioner Brown referred to the pending investi¬
gation of the American Telephone & Telegraph Company without
commenting on the Commission's findings. He praised highly
the contributions of the Independent telephone companies to
the industry.
XXXXXXXX
FCC AFFIRMS DENIAL OF MACKAY OSLO APPLICATION
Concluding consideration of a case that has occupied
more than a year's time, the Federal Communications Commission
last week, sitting en banc, affirmed the decision of the
Telegraph Division on June 3, 1936, in denying the applications
of the Mackay Radio & Telegraph Company, Inc. , to add Oslo,
Norway, as a point of communication.
The application was contested chiefly by R.C.A.
Communications, Inc., on the ground that adequate service was
being provided by RCA.
The Oslo application was but the opening gun of a
Mackay campaign to challenge DCA's domination of the world
radio communication traffic,
XXXXXXXX
- 7 -
CIAKT
TRADE NOTES
The application of WRVA, Richmond, Va. , to move its
transmitter site 15 miles southeast of Richmond and install
new equipment and a directional antenna system and increase
power from 5 KW to 50 KW has been set for hearing by the
Federal Communications Commission.
Station WTAM, Cleveland outlet of the NBC-Red Network,
is expected to occupy new quarters in the first four floors of
the Guarantee Title & Trust Building, 9th and Superior Sts.,
Cleveland, shortly before January 1st, according to virtually
completed plans announced this week.
Seven studios, the largest of which will seat 400
persons, are olanned at the new site, Provisions for tele¬
vision facilities will be made both in the studios and on the
roof. The entire project will cost between $250,000 and $300,000..
An adverse reoort was filed with the Federal Communi¬
cations Commission this week by Examiner on the application of
the Rapids Broadcasting Co., Cedar Rapids, la., for a construc¬
tion permit to operate a new broadcasting station on 1310 kc.
with 100 watts power, unlimited time.
The Columbia Medal for Distinguished Service to Radio
will be presented on May 2nd by William 3. Raley, President of
the Columbia Broadcasting System, to Barry Bingham, co-publisher
of The Louisville Courier- Journal , which operates Station WHAS,
Louisville, Ky. The award, which will be made during a broad¬
cast, is in recognition of the station’s efforts in combating the
floods in the Mississippi and Ohio River Valleys last January.
Rear Admiral Walter 3. Crosley, retired, a cousin of
Powel Crosley, Jr. , radio manufacturer, has been selected as a
resident director of the International Hydrograohic Bureau at
Monaco. In this position, Admiral Crosley succeeds Rear
Admiral Andrew T. Long, retired.
NBC audience mail in March set a new high of 1,140,580,
up 12 percent over the previous high, 1,015,372, set in March,
1936, and up 245 percent over February, 1937, when 330,427
pieces were received. Total mail for the first quarter was
2,206,675, or one percent more than in the first quarter of
1936, when 2,186,043 resnonses were received.
Robert W. Cottingham has been transferred from NBC’s
news division in New York City to NBC in Washington, where he
will be Assistant News Editor. He has been doing general
assignments.
- 8 -
4/27/37
E. P. H. James, Promotion Manager at NBC, will
speak on "Television" at the annual meeting of the Mendelssohn
Glee Club Monday, May 2rd, at the Manhattan Club in New York.
Dr. 0. H. Caldwell, former Federal Radio Commissioner, and
editor of "Radio Today", will discuss "cadio Tomorrow."
Belmont Radio Corporation, Chicago, has registered
the following with the Securities and Exchange Commission:
315,000 shares of no-par value common stock, of which 300,000
shares are outstanding and 15,000 shares are unissued and
reserved for exercise of an ootion granted to the underwriter
Stemmier & Co. , of New York.
Lewis Allen Weiss, General wianager of the Don Lee
Broadcasting System, WO R- Mutual ' s West Coast affiliate,
announced this week the appointment of Charles E. Sayler to
the post of Director of Public Belations, effective immed¬
iately. Mr. Sayler comes to the Don Lee organization after
more than a decade of service with the firm of J. F. Helmold
and Brother of Chicago, large scale manufacturers and distri¬
butors.
Two additional University Fellowships for advanced
study in radio broadcasting at the National Broadcasting Company
have been granted by the Rockefeller Foundation - one to Harley
A. Smith of Louisiana State University, and the other to
George E. Jennings of Station WILL of the University of Illi¬
nois. Two similar fellowships were granted last year.
XXXXXXXXXX
PAYNE SEES "ROUGH ROAD" FOR BROADCASTERS
"Unless broadcasting companies begin to pay attention
to public criticism, they face a rough road ahead", declared
George Henry Payne, Federal Communications Commissioner, in a
talk at Garden City, L. I., last Saturday, before the annual
conference of District 2 of the American College Publicity
Association at Adelohi College,
"In every other country of the world they do not per¬
mit advertising and they send cultural education over the air",
said Commissioner Payne. "In this country we allow the broad¬
est liberty. Some broadcasts are pumping into orivate homes
material about nostrums, foods that have not been demonstrated
as beneficial and certain medicines that the people should
never be urged to buy. "
Mr. Payne said that there were forty millions of
dollars invested in the broadcasting business and that the
gross revenue last year was S107, 000 , 000 . He said that the
profit this year probably would be 350 percent. He expressed
the belief that there was a great opportunity for college men
and women to go into the broadcasting business.
XXXXXXXX
- 9 -
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INCREASED SALES CALL FOR ENLARGED ARGENTINA PHILCO PLANT
In Argentina, South America, the lana of the pampas,
vaqueros, oaballeros, and a great nation of devotees of the
opera and music, there flourishes a lusty young industry,
Philco Argentina, SA, with offices and factories in Buenos
Aires, employing hundreds of members of the Philco family,
according to the Philco World.
Philco Argentina, SA, is an Argentina corporation
having full benefits of all research and development at the
great Philco Radio and Television laboratories in Philadelphia.
Philco Argentina engineers visit Philadelphia from
time to time to keep abreast of the latest and best practices,
and this year an executive will attend the United States sales
convention.
In a recent issue of Revista Telegrafica, a radio
magazine published in Buenos Aires, there appeared a well-
written article on Philco Argentina, SA, profusely illustrated
with pictures. The article was written by Sr. Grao. Dougall,
General Manager of the plant, and Sr. Atilio Alzona, chief
factory engineer.
The article was translated by Victor S. Gittens, of
the Philadelphia Philco Reclamation Department, and personal
friend of Sr. Dougall and Sr. Alzona. The following is an
excerpt from the article:
"When Philco Argentina, SA, was established, head¬
quarters were located in Shacabuco Street, but soon afterwards,
in view of the huge increase in sales and the absolute necessity
of enlarging its assembly shops and to start the manufacture of
cabinets, moved its offices to 541 Caseros Street, and its
assembly plant to 1445-4? Engineer Huergo Avenue, keeping them
separated from the furniture plant.
"Having made this change, it also adooted the new
name of Philco Argentina, SA, the company being formed with
Argentina capital and incoroorated during the administration
of President Uriburu in May, 1951.
"This company has followed an inviolable policy from
the start to market radio receivers of the highest quality.
Following the policy of the mother company in the United States,
it did not surrender to the temptation of meeting the competition
of cheap and poorly ma.de receivers that so many * faker’ concerns
have placed on our market during the last few years.
"Philco Argentina, SA, claims that the quality of both
the local and foreign broadcasting is far better than the repro¬
duction provided by other sets manufactured in Argentina, and
that the public ought to be offered quality receivers in order
to enjoy, at its true fidelity, the musical quality of the
broadcasts . 11
XXXXXXXX
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EDITOR FEARS SURFEIT OF ADS WHEN TELEVISION COMES
Quoting from an article by Gilbert Seldes in the
Atlantic Monthly , the New York Times on April 26th, in an edi¬
torial discusses the danger of a surfeit of advertising when
television reaches the public demonstration stage. The edi¬
torial says, in part:
*' If the advertiser is to pay the bill of television -
a bill many times larger than that now presented by the sound¬
broadcasting studios - he will do well to study the responses
of motion-picture audiences. Only the cheapest houses ever
dared to throw on the screen the local hardware store’s announce¬
ment of its vast stock of tools and cutlery. Thirty years of
futile effort have narrowed this field to exhibitions of
fashions and of ingenious gadgets with commercial possibil¬
ities - this because both are news. Propaganda and oublicity
we will tolerate on the screen, but not advertising. We will
listen to a brief lecture on vitamins in general, but not on
the vitamins that impart miraculous oroperties to a particular
brand of cough-droos. Will the advertising SDonsors of tele¬
vision programs boldly hold ud their fountain nens, pajamas
and lawn mowers to our gaze and ’sell' them to us as repetit¬
ively and insistently as they now do with talk alone? If so,
Mr. Seldes predicts rebellion and therefore failure.
"Thousands read the newsoaper while broadcast Jazz
rattles the windows. No such Indifference is possible with
television. Either we look and listen or we don't. Advertisers
had complete command of attention on the motion-picture screen
only to find that they were tiresome. They will have something
like it again with television, but with the knowledge that there
is refuge in walking away or blotting out the image and the
sound by the turn of a switch. Restraint will be demanded.
Mr. Seldes doubts if the advertiser will be able to impose it
upon himself.
"For the costs are bound to be high when this new art
is born. The elaborate productions of the movies have spoiled
us. To present nightly a new sketch, even though it be only
ten minutes long, means an army of directors and actors, ware¬
houses stuffed with properties and costumes, and vast studios
where stage settings are prepared. Where are they to be found
in sufficient numbers for the scores of regional transmitting
stations that will be demanded? The public will not look at
the same televised sketch twice in succession. Multiply 365 by
a hundred advertisers and the enormity of the artistic problem,
not to mention the cost, becomes apparent. There is not money
enough to bore us to the extent that advertising on this scale
demands. Perhaps our salvation lies here. Or perhaps an
entirely new and more palatable method of selling goods by
television will be developed. "
XXXXXXXXX
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4/27/37
RADIO PRACTITIONERS MOVE TO LARGER QUARTERS
Littlepage and Littlepage, attorneys and counsellors
in Washington, have removed from the Union Trust Building
where they have been for many years, to a larger and more
modern suite in the Bowen Building, 815 - 15th Street, N. W. ,
between H and I Streets, about a half a block north of their
old offices.
Thomas P. Littlepage, Sr. , was a oioneer in radio
practice having represented Ralph Atlass, of Chicago, then of
WBBM, in the Zenith controversy, the first radio case ever to
be tried in this country.
XXXXXXXX
THE BLUE ADDS WSPD
WSPD, Toledo's only radio station, has Joined the
Blue Network of the National Broadcasting Company,
"WSPD is the most popular station heard by Toledo
listeners", an announcement of the NBC in taking over the
Toledo trading area says. "It is first choice in a survey of
Toledo residents conducted by the Associated Radio Service
men during the week of January 11-16, 1937. WSPD scores 60$ -
the second choice station, 24%.
"WSPD was established in 1921. Operates full time,
5000 watts day, 1000 watts night; 1,340 kilocycles. Recently
installed new, modern equipment, including a vertical radiator.
"Toledo, the nation's 32nd largest market, has a
population of 290,718; its $112,550,000 retail sales rank
third in Ohio. Spendable money per capita is $620 - 21$
greater than the U. S. average.
"The great market which WSPD covers embraces:
Population, 1,285,184; families, 338,570; radio homes, 268,200;
bank deposits, $266,300,000 and spendable income, $589,263,000."
During four weeks of October, 1936, WSPD made three
spot announcements daily, offering a lucky pocket piece.
10,382 requests were received in addition to the ordinary run
of fan mail.
XXXXXXXX
- 12 -
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
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INDEX TO ISSUE OF APRIL 30, 1937,
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A
Iowan Named FCC Secretary In Supreme Court Trade . 2
If Rumors True, FCC Most Corrupt Body, Writer Charges . 3
FTC Issues Order Against Radio Manufacturers. . 4
Examiner Disapproves Station Transfer To CBS . 6
Spread Of 5-Day Week Seen As NBC Capitulates . 9
I.T.T. Fills Order v0r New ^ome S-W Station . 10
RMA Maps Program For Chicago Meeting June 3-9 . 10
Radio Had Origin In Professor’s Brain, Says Sarnoff . 11
New Station Granted By FCC; Another Recommended . 11
Trade Notes . 12
No.
1024
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IOWAN NAMED FCC SECRETARY IN SUPREME COUPT TRADE
The appointment of Thomas J. Slowie, of Iowa, a
congressional secretary, as Secretary of the Federal Communi¬
cations Commission late this week took the broadcasting
industry and government officials by surprise as his name
had not been mentioned previously.
It was learned on reliable authority that the
appointment was made at the personal direction of President
Roosevelt, over the recommendation of another man by James A.
Farley, in a trade with the Iowa Congressional delegation for
support of the Supreme Court reform proposal.
Robert L. Berger, Radio Director of the Democratic
National Committee, had been slated for the job up until the
last minute as a reward for his work during the presidential
campaign. The Commission was preparing to announce his
appointment, when James Roosevelt, son of the President,
advised that it be held up.
Anning S. Prall, Chairman of the FCC, is understood
to have called at the White House upon receiving the telenhone
call from James Roosevelt. He comolained that the Berger
candidacy had gone too far to withdraw it, and he reminded
young Roosevelt that Farley had picked Berger.
The Chairman of the Democratic National Committee
was out of the city at the time campaigning for the Supreme
Court change, but the White House got in touch with him and
apparently convinced him that Slowie must have the job.
Mr. Slowie is about 41 years old and has been in
Washington for the last seven years as secretary first to
the late Representative Jacobsen ( D. ) , of Iowa, and this year
to Mr. Jacobsen's son, who succeeded his father in office.
A former city auditor and city clerk at Clinton, la.
his home, Mr. Slowie has had no previous experience in either
the administration or business side of broadcasting. He said
that his only previous connections with radio have been in
making political addresses over the air.
He is a World War veteran and was one time assistant
to the president of the Guaranty Life Insurance Co. , of Iowa.
He has a wife and two children.
2
4/303/7
The office of FCC Secretary, which pays $7,500 a
year, is a political plum that has been dangled before
aspiring young Democrats for the last year. It has been
vacant since the resignation of Herbert Pettey, now an
official of WHN, New York, but the duties have been performed
by John B. Reynolds, an Assistant Secretary, who is a
Republican.
Mr. Slowie was expecting to take office tomorrow
(Saturday, May 1st).
XXXXXXXX
IF RUMORS TRUE, FCC MOST CORRUPT BODY, WRITER CHARGES
Charging that the rumors about the Federal Communi¬
cations Commission which swirl about Washington these days
are so numerous and so libelous that he will not deal with
them "beyond noting that if even half of them are true, the
Commission is one of the most corrupt Federal agencies in
history", Paul W. Ward takes the FCC for a rough ride in the
April 24th issue of the Nation.
"The Roosevelt Administration is out to head off
the Congressional investiga tion of broadcasting because it
will be impossible to investigate the radio industry without
investigating the Federal Communications Commission, which is
supposed to regulate it, and the Administration does not want
the smells emanating from that New Deal agency traced to
their source", he goes on to say.
Congress owes both itself and the public an investi¬
gation such as Congressman Connery proposes, Mr. Ward, who
is a member of the Baltimore Sun staff in Washington, continues,
"because of the FCC’s complete and insolent disregard of its
instructions from Congress as written into the law governing
its operations with respect to broadcasting. It owes it to
the public because such an investigation will show that the
FCC has steadily and lawlessly been frittering away the
public’s ^ast great source’, as that remarkable person,
Commissioner George Henry Payne, has dubbed the air. It owes
it to the public especially because, as another Commissioner,
Irvin Stewart, recently said, ’the person who has the largest
stake in American broadcasting is the listener. 1
"Far from obeying its orders, the Commission has set
itself up as the guardian angel and aid of those who are
exploiting the last great resource in much the same fashion
that our water, timber, land, oil, and mineral resources have
been exploited and despoiled. It has functioned chiefly to
smooth out competition in the industry. Without the FCC
policing of the air waves to keep the various stations from
3
4/30/37
raiding each other' s territories and frequencies, the industry
would be in chaos, but for this policing, which costs the
taxpayers $1,500,000 a year, the industry pays nothing. Nor
does it pay for broadcasting licenses, of which there are 696
outstanding covering the ninety channels or frequencies avail¬
able to broadcasters.
"The radio industry represents an investment of
only $40,000,000 at the outside, its 1936 gross was $107,550,000
and is expected to reach $135,000,000 this year. The signifi¬
cance of these startling profit indicators will be brought home
with devastating force when, as must happen, Congress declares
the radio industry a public utility and subjects its rates to
regulation.
"Licensed stations are being bought and sold for ten
and twenty times the value of their physical assets, which
would be only so much junk without a frequency on which to
employ them. Columbia last year, for example, oaid $1,250,000
for a California station, and by any system of reckoning at
least $1,000,000 out of that price was for the frequency on which
the station had a license. Similarly, under a new practice,
stations are being leased for periods ranging from one to fif¬
teen years at annual rentals nearly equal to the cost of the
station itself.
"Worse still, stock- jobbing is going on; station
securities are being sold to the public at prices which recover
for the promoters their full investment in the station and
still leave them in control of it, and the asset which the
investors get for their money is an interest in a license
which is good for only six months and, so Congress has ruled,
can never be construed as representing ownership of anything.
All these transfers, leases, and assignments have to be and
are approved by the FCC, which doesn't believe Congress meant
what it said any more than do the radio barons. "
XXXXXXXXX
FTC ISSUES ORDER AGAINST RADIO MANUFACTURERS
An order to cease and desist from using unfair
methods of competition, in violation of Section 5 of the Federal
Trade Commission Act, has been entered by that Commission
against a group of manufacturers of and dealers in radio sets
and radio parts. The order also is directed against two com¬
panies manufacturing and selling escutcheons and name plates
for use on radio products.
The order prohibits the respondents from using as
marks or brands on their products certain well-known and long
established names of other manufacturers and dealers in the
radio and like industries without consent of the lawful
owners of such names.
4
4/30/37
According to findings in the case, among the names,
brands and symbols adopted and used by the respondents, with¬
out authority from the owners, are Marconi, Edison, Bell,
Victor, Majestic and Brunswick, and the letters C.C.A. and
G. E. , standing alone or with other words, or colorable imita¬
tions or simulations thereof.
Metal Etching Corporation, 1001 Essex St., Brooklyn,
and its President, M. Hermann, and Crowe Namenlate and Manu¬
facturing Co., 1749 Grace St., Chicago, and its officers,
E. C. Coolidge and I. Robinson Smith, are ordered to discon¬
tinue selling or distributing escutcheons and name plates,
bearing the trade-marks and names in question, to manufactur¬
ers, assemblers or dealers in radio products, except to the
owners of such trade names or marks, or to the licensees of
the owners.
The order further directs that the respondent manu¬
facturers and dealers cease representing, directly or indir¬
ectly, through use of trade names of marks of which they are
not the owners, and without the permission of the lawful
owners, that their radio products are those manufactured, sold,
endorsed or licensed by the late Thomas A. Edison, Thomas A.
Edison, Inc. , American Telephone & Telegraph Co. , Western
Electric Co. , ^arconi Wireless Telegraph Comoany of America,
Radio Corporation of America, Victor Talking Machine Co. ,
Brunswick-Balke-Collender Co. , Warner Brothers Pictures, Inc. ,
and its subsidiary, Brunswick Radio Corporation, Grigsby-
Grunow Co. , Majestic Radio and Television Corporation, and
General Electric Co.
The respondent manufacturers andoealers who are
ordered to cease and desist from unfair methods of competition,
together with their officers or agents, are: King Trading
Corporation, 51 Vesey St. , New York, and Royal Radio Co., Inc.,
166 Washington St. , New York, and A. M. Erank, David Morrison
and Murray Auerbach; Harvard Radio Tube Testing Stations of
Pennsylvania, Inc., 208 North Broad St., Philadelphia, and
Jules M. Schoenberg; Ross Distributing Co. , 2020 Chancellor
St., Philadelphia, and Larry B. Ross; Sun Radio & Service
Supply Corporation, 938 F St. , Washington, and Emanuel Fosen-
weig; Schiller Bros., Inc., 922 F St., Washington, and Louis
S. Schiller; Peter Robbins, trading as Robbins Radio Co.,
and as Ambassador Radio Co. , 940 ^ St. , Washington, and F. C.
Scruggs, trading as Call ^pdio Co., 636 H St., N. E. , Washington.
The complaint in this case was dismissed as to the
following respondent companies and their officers for the
reason that there was no evidence to establish the allegations
made against them: Etched Products Corporation, 3901 Queens
Boulevard, Long Island City, N. Y. , and Albert Nierenberg and
Walter H. Miller; Electro Chemical & Engraving Co. , 1100 Brook
Ave. , New York, and F. E. Switzer, N. L. Jacobus, 'Robert
Schlesinger, Julius Erodes and L. S, Southwick; Premier Metal
Etching Co., 2103- 44th Ave. , Long Island City, N. Y.., and
5
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Herbert Pape, Karl D. Johnson, Ernest A. Rottach, and Hugo
Lehrfeld; American Emblem Co. , 22 East 40th St. , New York,
and Paul B. Williams, Clarence S. C. Williams, James Eels,
Fred B. King and Edgar Denton, Jr.
The case was closed without prejudice as to the
following resoondents: Metro Manufacturing Co., Inc., Metro
Radio Corporation, Metro Sales Co. , Inc. , Pyramid Distribu¬
tors, Inc. , and Regina G-adol, George Levine and Max Sea f ford.
Findings are that -all of the respondents, except
those against whom the complaint was dismissed or the case
closed without prejudice, have cooperated among themselves
and with one another and are engaged in a scheme to deceive
the public and to compete unfairly with other manufacturers
and dealers in radio products.
XXXXXXXXX
EXAMINER DISAPPROVES STATION TRANSFER TO CBS
Congressional complaints against "traff icing” in
station licenses and "radio monopolies” this week had a
repercussion in a report made to the Federal Communications
Commission by one of its Examiners, R. H. Hyde.
Examiner Hyde recommended that the application of
KSFO, San Francisco, for authority to assign its license to
the Columbia Broadcasting System be denied. He based his
recommendation on conclusions that the proposed $25,000 a
year rent was based on the value of the license rather than
station equipment.
It was Columbia that paid the record price of
$1,250,000 for Station KNX, Los Angeles, about a year ago.
KFSO operates on 560 kc. with 1 KW power, unlimited
time. CBS sought it as one of its West Coast outlets to sup¬
plant stations formerly operated by the Don Lee System in
cooperation with the national network.
The terms of the contract, which the Examiner said
should be disapproved, provide for the least of KSFO by CBS
until January 1, 1942, with options for two extensions of
five years each. Rent would be paid at the rate of $25,000 a
year, plus an amount equal to one-seventh of the gross income
of the station in excess of $175,000.
"General provisions of the agreement provide”, the
report states, "that the lessor may install new equipment,
changing the location of the transmitter to any point within
the San Francisco area, such new equipment to become the pro¬
perty of the lessor; that the parties shall promptly cooperate,
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at the expense of the lessee, in filing and prosecuting before
the Commission an application to install a 5 KW transmitter,
to be constructed by the lessee, the lessee agreeing to pay
certain additional rent (an amount equal to one-seventh of
the gross annual income in excess of $150,000) in the event
the project to install such new equipment is not completed;
that one-half hour of station time daily shall be reserved by
the lessor, free of charge, but subject to cancellation upon
thirty days' notice and payment of an additional $5,000 rent
per year; that Station KSFO shall be maintained as a regular
transcontinental network outlet of the Columbia System; and
that the lessor shall not sell or lease the KSFO property, or
contract to sell or lease the property to any other party
without first granting the lessee an option to renew the
lease upon the same conditions ana terms offered by any third
party, or to purchase the same upon the same terms available
upon any bona fide offer of any third party, or for whichever
is found to be the greater amount - $225,000 or the amount
that may be determined by means of a formula employing sta¬
tion earnings over certain stated periods as a basis for
calculation. M
Regarding the station's value, the Examiner said:
"Inventories of all equipment, including antenna
system, transmitting apparatus, and studio equipment, show
original cost as $35,224.26, and the present cost of equi¬
valent equipment as $38,865.09. Depreciated value according
to the strange method of computation employed, is $30,131.96,
determined by substraction of depreciation in the amount of
$8,733.13 from ($38,865.09) the estimated present cost of
equivalent equipment.
"Net profit for the period January 1, to June 30,
1936, shown in the profit and loss statement filed herein, is
$867.65, but during the period of this report more than $22,000
was paid out in salaries and commissions which should probably
be considered in any attempt to make a study of station earn¬
ings. The owner of the capital stock of the licensee corpora¬
tion drew $1,000 a month from the station during the period of
the statement submitted. "
CBS officials predicted, however, that they could
step up the earnings of KFSO.
"The Columbia interests expect that when and if the
station broadcasts Columbia programs, it will attract a good
audience and be in demand by advertisers", Mr. Hyde said. "Then
with an increase in basic rates from $150.00 an hour to $325.00
the station is expected to have a gross revenue of $280,000.00.
Expenses, including rent and depreciation on a new transmitter,
are estimated at $250,000.00, leaving an estimated net income
of $30,000.00 per year. While these figures are merely esti¬
mates, they are said to be based upon the experience of the
Columbia System in operating stations under similar conditions. "
7
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In justifying his recommendation that the FGC not
approve the station-network deal, Examiner Hyde said:
’’Examination of the contract, consideration of the
evidence regarding the properties proposed to be leased and
then immediately replaced for the most part by the lessee, and
examination of the business of the station, likewise proposed
to be leased and then replaced for the most part, indicates
that the chief consideration for the 'rental1 agreed upon is
the use or opportunity to use the operating assignment of
Station KSFO, subject to the approval of the Commission. The
sums proposed to be paid for this privilege and the other
conditions of the so-called lease are matters determined by
agreement between the applicants, with notice of, and of
course subject to, any laws applicable thereto. Nothing in
the contract, in the absence of some affirmative action by
the Commission, could possibly change the terms of the sta¬
tion license, which, it may be noted, runs for only a fraction
of the time period covered in the contract; no rights to the
operating assignment in question or any of the privileges for
which a license is required by the Communications Act of 1934
could be established against the regulatory power of the Com¬
mission by any agreement between these parties or by any pay¬
ments which one may make to the other as considera tion to
stand aside or vacate an operating assignment in favor of the
second party. But the terms, including payments proposed to
be made in a transaction of this character, are nevertheless
considered material to the question as to whether or not
approval of a transfer of license would be in the public inter¬
est.
’’The payments proposed to be made in this case by
the assignee do not appear to be out of line with the useful¬
ness and value the KSFO operating assignment would have to the
assignee. On the other hand, it is obvious that the assignor
is requiring payments in amounts which can be explained only
by the fact that it has a license from the government giving
it exclusive privileges as to the use of the operating assign¬
ment desired by the assignee. This use of the privileges
granted in the station license does not appear consistent with
the condition imposed by law and included in each license;
that the licensee use the privileges conferred to the full
extent thereof to serve the public interest,
"It appears that the acquisition of control of
Station KSFO by the assignee would result in improvements to
the service of the station in the technical quality of its
broadcasts and with respect to the quality of the programs
provided for the interest of the public. Also, it is apparent
that the acquisition of control of Station KSFO by the assignee
would contribute to the further development and maintenance Of
the national network broadcast system represented by the
assignee, and be advantageous to the promotion of the inter¬
ests of that system. But it does not appear from anything in
the evidence regarding this particular system, or regarding
the requirements of network broadcasting, that there is any
necessity for the acquisition of control of this station by
the same interests now controlling a number of other stations.
"The applicants have not shown that the granting of
the application would serve the public interest, convenience
or necessity. " x X X X X X X -8-
-Zf O f
SPREAD OF 5-DAY WEEK SEEN AS NBC CAPITULATES
General adoption of the 5-day week in the broadcast¬
ing industry was forecast this week when the National Broad¬
casting Company announced that all its announcers, production,
and sound effect men will be placed on a 5-aay week as soon
as satisfactory schedules can be worked out and additional
personnel trained.
"Because of irregular hours which oroduction men,
announcers, and sound effects men are frequently called upon
to put in in the course of their duties", Lenox Lohr, President
of NBC said, "we feel that the oenefit to be derived from two
full days of relaxation a week will immeasurably increase the
efficiency of these men, and through them the efficiency of
the National Broadcasting Comnany in its service to the public
end its clients. "
Meanwhile, negotiations were under way for wage
and hour concessions between the "American Guild of Announcers
and Producers" and a bargaining committee from the Columbia
Broadcasting System. An early agreement was forecast.
Station WNEW, Newark, announced that on August 1st
all of its technical staff will go on a 5-da.y week, and New
York stations were reported to be considering similar moves.
Directors of WOR late this week announced through
Alfred J. McCosker, its President, the adoption of a 40-hour
week for its entire personnel. The new hours of operation
will become effective just as soon as the necessary schedules
can be arranged and additional personnel trained, Mr. McCosker
said.
In making the announcement, Mr. McCosker also made
it known that the station has an agreement with the Association
of Technical Employees of WOR, representing its engineering
staff, which runs until March, 1938. The decision of the
Board of Directors to adopt a 40-hour week voluntarily reduces
the 48-hour clause in this agreement to 40 hours.
X X X X X X X X
The U. S. Department of the Interior, Office of
Education, this week announced that the time of the educational
radio series, "The World Is Yours", will be shifted from
Sundays at 11:30 a.m. , E5T, to Sundays from 4:30 to 5:00 p.m.
EDST, beginning May Snd. The time change was made, according
to the announcement, so other stations could be added to
those on the Bed Network of the National Broadcasting Comoany
which now carry the series. It is estimated that several mil¬
lion persons listen to the program each week, but the time
change is expected to increase the listening audience apprec¬
iably. During the past several months nearly 150,000 persons
have written the Office of Education about the series.
XXXXXXXXXX
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4/30/37
I.T.T. FILLS ORDER FOR NEW ROME S-W STATION
The International Telephone and Telegraph Corpora¬
tion disclosed this week that an order for the world’s largest
short-wave broadcaster to be erected at Pome has been placed
by the Italian Broadcasting Comoany with the Electrical
Apparatus Company of Milan, Italy', an affiliate and licensee
company. This new broadcasting station will radiate power
of ICO KW, and is the highest oowered short-wave broadcaster
yet projected for commercial operation. By means of special
directive antennae, it will give reliable short-wave broad¬
casting service to all parts of the world.
The station will be installed in Pome and will go
into service in 1938. It will be one of the most efficient
and, therefore, most economical stations in the world to
work because, in addition to using final stage class "B”
modulation, new and special circuits for the power amplifiers
give it a much higher efficiency than ever before obtained by
a short wave transmitter.
In order to meet changing atmospheric conditions
the wavelengths need to be changed from time to time, and
facilities are provided for these changes to be made in a
few minutes. This can be accomplished because the circuits
for the high power stages are built on a rotating turntable.
XXXXXXXX
RMA MAPS PROGRAM FOR CHICAGO MEETING JUNE 8-9
The program of the Annual Convention of the Radio
Manufacturers’ Association was released this week in Washington
by Bond Geddes, Executive Vice-President. The meeting will be
in Chicago June 8-9 and will be followed immediately by the
National Parts Trade Show June 10-13. Both will be at the
Stevens Hotel.
The annual radio industry banquet, another ”PMA
cabaret" dinner for Association membershio and guests, will
be the big social event, on Wednesday evening, June 9. The
two days of the RMA annual convention will be packed with
important business meetings. The program is being arranged
by President Leslie F. Muter of the RMA and the Convention
Committee headed by A. S. Wells, of Chicago, Chairman, and
Paul V. Galvin, Peter L. Jensen and James S. Knowls on.
Sales promotion, national and in export trade,
together with important discussions of merchandising, employ¬
ment, and other important problems, will feature the RMA con¬
vention. There will be many RMA committee meetings and also
annual sessions of all four RMA Divisions. Elections of a
President, Directors and other officers of the Association
will be held during the convention.
10
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A large luncheon meeting Tuesday, June 8, combining
the annual business meeting of CMA members, is a new and
interesting feature of the RMA convention program. Official
RMA delegates, alternates and guests will be tendered a com¬
plimentary luncheon by President Muter and Directors of the
Association. At the conclusion of the luncheon the annual
business meeting of the RMA membership will be held and
reports received from President Muter, Treasurer vred D.
Williams, and others. Annual meetings of RMA group Divisions
also will follow the luncheon.
XXXXXXXX
RADIO HAD 0 RIG-IN IN PROFESSOR'S BRAIN, SAi5 SARNOFF
Radio had its origin in the purely theoretical
reasoning of a college professor, James Clark Maxwell, who
in 1865 advanced arguments for the existence of electro¬
magnetic waves, according to David Sarnoff, President of the
Radio Corporation of America.
Mr. Sarnoff sooke on Friday before the American
Physical Society on "Science and Society" in Washington.
Paying tribute to the work of the great scientists of the
19th century, whose theories and research in the realm of
pure science hastened the industrial age, Mr. Sarnoff warned:
"It Is too optimistic to assume that the mere trans¬
lation of a scientific discovery into a usable commodity or
instrument always advances civilization; that just because
humanity can travel faster, communicate more freely, cook,
wash, iron, and gather ice cubes with less effort than ever
before, it has reached the all-time oeak of civilization.
Giving a man a hoe or a microscooe does not make him a farmer
or a scientist, and giving him a radio or an automobile does
not make him civilized. "
XX X X X X X X XX
NEW STATION GRANTED BY FCC; ANOTHER RECOMMENDED
The Federal Communications Commission this week
granted a construction permit for a new broadcasting station
at Wilson, N. C. , while one of its Examiners recommended the
granting of a station for Rice Lake, Wis.
The Wilson applicants are H. W. Wilson and Ben
Farmer. The station will operate on 1310 kc. with 100 watts,
daytime, after June 1st.
11
I
4/30/37
Examiner John P. Bramhall recommended that Walter
H. McGenty, of Pice Lake, be granted a permit to build and
operate a station on 1210 kc. with 250 watts power , daytime .
The same Examiner filed a favorable report on the
application of KLM, of Minot, N. D. , for permission to shift
its frequency from 1240 to 1360 kc. and increase its power
from 250 watts to 500 watts nighttime and 1 KW daytime and
increase its operating time from sharing to unlimited.
XXXXXXXXXX
: : : : TRADE NOTES : : : :
Six papers on television will be presented by members
of RCA Manufacturing Co. at the convention of the Institute of
Radio Engineers, May 10-12, in the Hotel Pennsylvania. Among
those who will present^ discussions, jointly or singly, are
V. K. Zworykin, W. H. Hainter, R. P. Law, C. E. Burnett, H.
lams, ?. B. Janes W. H. Hickok, A. Rose, G. A. Morton and L. E.
Flory .
Effective May 15, Timothy S. Goodman will relinquish
his duties as manager of WKRC, Columbia owned and operated sta¬
tion in Cincinnati. He will be succeeded by John McCormick,
who has heretofore been assistant manager. Mr. McCormick, who
joined the staff of WKRC in September, 1934, was formerly
Program Manager of WINS, New York.
"/ WHK, oldest broadcasting station in Cleveland, Ohio,
will join the National Broadcasting Comoany as a member of the
NBC Basic Blue Network early this ^all. ^he station will
replacw WGAR. Owned by the ^adio Air Service Corooration, an
affiliate of the Cleveland Plain Dealer and the Cleveland News,
WHK operates full time on a regional channel frequency of 1390
kc. with daytime cower of 2500 watts and nighttime power of 1000
watts.
Germania Tea Co. , Minneapolis, and Consolidated Drug
Trade Products, Inc., 544 South Wells St., Chicago, are named
respondents in a complaint issued by the Federal Trade Commis¬
sion alleging unfair competition in the sale of Germania Herb
Tea and Germania Orange Pekoe Tea. In advertising matter, on
labels and over the radio, the resoonaent companies allegedly
represent that the two products, when used in connection with
a designated reducing diet, have a substantial therapeutic
value in the treatment of obesity.
WJTN, Jamestown, N. Y. , will join NBC as an optional
outlet available to the Basic Blue Network on May 15. The
addition will boost the number of NBC affiliated stations to
126.
X X X X X X X X
12 -
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Y Y
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF MAY 7, 1937.
v FCC Prepares To Clean Own House As Probe Is Sidetracked
Deletion Of Brooklyn Station Urged For Irregularity. . . .
2
March Radio Advertising 14# Above February .
WGY To Have One of Highest Antennas In Country. .
April Billings On Networks Soar To New Peaks. . . .
Bill Would Designate Origin Of Sponsor's Product
New Powerful Television Station For Eiffel Tower
CBS To Dedicate New Short Wave Station May 12 . 7
Soviets Plan Radio House, Buy Television Equipment . 8
Trade Notes . 9
James Likens Television To Movies, Facsimile . 10
Two Crosleys Control Crosley Corn. , Report Shows . 11
Callahan Leaves Washington NBC Office . 11
24,500,000 Radio Families, CBS Survey Shows . 12
No. 1026
^ ^ m to to
V.
FCC PREPARES TO CLEAN OWN HOUSE AS PR03E IS SIDETRACKED
With the Connery resolution calling for a broad in¬
vestigation of the radio broadcasting industry aDperently side¬
tracked, if not definitely blocked for the session, the Federal
Communications Commission is setting about to clean house itself
and thereby remove some of the cause of Congressional complaint.
The appointment of Thomas J. Slowie, a former Con¬
gressional secretary, as Secretary of the Federal Communica tions
Commission has encouraged the hope in some Commission quarters
that relations between the ^CC and Congress will be improved.
Nevertheless, Examiners' reports, which have abruptly
taken a stern attitude toward license transfers, indicate that
the Commission is preparing to crack down on broadcasters who
appear to be in the business for speculative profits.
The first test of this policy will come when the
Broadcast Division acts upon an Examiner’s recommendation that
the Columbia Broadcasting System be refused permission to take
over the license of KSFO, of San Francisco. If CBS makes a
fight, the Commission will be forced to take a stand that may
well establish a precedent in license trafficking.
Somewhat perturbed by the legal consequences of pro¬
hibiting a sale of licenses, the Commission has obtained a con¬
fidential opinion from its General Counsel, Hampson Gary.
The objective of the FCC seems to be to find a formula
for measuring the value of a station in a manner that will take
into account the possession of a operating license while at the
same time keep it out of the speculative field.
So as to have all pertinent information in case Congress
should begin calling for data, on station investments, ownership,
affiliations, and the like the ^CC has sent letters to all sta¬
tions demanding that copies of all contracts negotiated since
July 15, 1934, be filed at once. The contracts specified are
those ’’which may in anywise affect the control of your station."
Although the order requiring the filing of this inform¬
ation was promulgated in August, 1934, it is understood that up
to this time it has not been strictly enforced.
S -
5/7/37
While ^CC critics on Canitol Hill have been for the
most part too occunied with njore important matters to assail
the Commission or the Industry in recent weeks, Representative
Amlie (Farmer-Labor), of Wisconsin, has been trying to keep
the homefolks informed on his views.
A charge that the "radio scandal" is as bad as the
Teapot Dome affair, Congressman Amlie, in his weekly "Congress¬
ional News Letter", said:
"Teapot Dome was a noisier scandal than the administra¬
tion of the Federal Communications Commission, but it doesn't
smell any worse."
He also reiterated charges that the FCC was overlook¬
ing trafficking of licenses, that only three favored law firms
can "get any results before the Commission", opposed the
Anderson bill for 5-year licenses, and declared a "radio
monopoly" dominates the broadcasting industry.
XXXXXXXXX
DELETION OF BROOKLYN STATION URGED FOR IRREGULARITY
Denial of the application of WMBQ, Brooklyn, N. Y. ,
for renewal of license was recommended to the Federal Communi¬
cations Commission this week by Examiner Ralnh L. Walker on
the ground of an irregularity in the station's control.
Pointing out that WMBQ,' s license was issued in 1927
to Paul J. Gollhofer, who had oreviously used the equipment as
an amateur station, the Examiner said he had found that "the
station was actually owned and operated by a co-partnership
consisting of Mr. Gollhofer and Lillian E. Kiefer from its
inception until May 7, 1935."
This arrangement, Mr. Walker said, was in violation
of Section 308 of the Coramunica tions Act.
Station WMBQ, has been operated by a receiver since
September 24, 1936.
Examiner Walker recommended that the applications of
Gollhofer and Miss Kiefer for construction permits to use
WMBQ' s facilities also be denied. He proposed that the time be
given to WWRL, of Woodsiae, L. I. Both stations have catered
to foreign-language listeners.
XXXXXXXX
- 3 -
5/7/37
MARCH RADIO ADVERTISING 14# ABOVE FEBRUARY
Total broadcast advertising in March amounted to
$11,628,154, an increase of 14.2# over the February level and
and a gain of 24.6# over the level of last March, according
to the National Association of Broadcasters.
•'Gross time sales for the month were the greatest
in history, being slightly greater than the total recorded
for last October*', the report stated. "Advertising in all por¬
tions of the medium increased in volume as compared to last
month, with national non-network business registering the
greatest gain. Total broadcast advertising for the first
three months of 1937 amounted to $32,180,035, a gain of 26.1#
as compared to the corresponding oeriod of 1936. Radio broad¬
cast advertising seems to be headed for another record-breaking
year.
"Although advertising in national ma.gaz.ines and news¬
papers increased to a greater extent than radio as compared to
last month, radio broadcasting continued to show the greatest
increase in advertising volume as compared to corresponding
periods of last year. Whereas radio showed a gain of 24.6#
in volume over last March, national magazine volume increased
15.6#, national farm caper volume 7.1#, ana newspaper volume
4.1#.
"Continuing the season trend, non-network advertis¬
ing increased 18.5# over February and 35.6# over last March,
Although all sizes of stations registered substantial gains,
the greatest increase occurred in the regional station group.
Advertising in this group rose 23.5# over February. The New
England-Middle Atlantic Area led all geographical districts in
increased volume, both as compared to last month and as to
March, 1936. "
XXXXXXXX
WGY TO HAVE ONE OF HIGHEST ANTENNAS IN COUNTRY
The General Electric Company has announced that it
will erect an ultra-modern 625-foot vertical antenna for its
station WGY in Schenectady, and by doing so will increase the
effective signal strength of this 50,000-watt transmitter at
least three times. The plans to give this pioneer broadcasting
station one of the tallest antenna systems in the country have
been approved by the Federal Communications Commission and work
will start at once.
4 -
5/7/37
According to W. J. Purcell, chief engineer of WGY,
the signal to be radiated from the new antenna will be the
equivalent of that of 150,000 watts or three times as great
as the present system.
The lighting system will be controlled by an "electric
eye" which, pointed north, will automatically turn the lights
on when the daylight diminishes to 20 foot-candles, and will
turn them off when the intensity reaches 40 f oot-candles.
The new steel tower, which will weigh 250,000 pounds,
will rest its entire weight on a single porcelain insulator,
mounted on a 10- foot- square concrete base. Two sets of insu¬
lated guys will support the structure.
XXXXXXXX
APRIL BILLINGS ON NETWORKS SOAR TO NEW PEAKS
Continuing its upward trend, radio advertising on
the networks soared to new heights during April. While reports
from independent stations have not been correlated, indications
are that they also are prospering.
Time sales on the Columbia Network for April totalled
$2,596,238, an increase of 33.1$ over April, 1936. ($1,951,397).
The previous seasonal decrease in billings from March to April
was reversed this year, since the March total was $2,559,716.
Topping all other networks for April, this is the forty-third
consecutive month in which CBS has made a gain over the cor¬
responding month of the previous year, according to a CBS
statement.
Advertisers' gross investments in NBC network time
increased 19.5 percent over the same month a year ago. Total
revenue for the month was $3,277,321, against $2,741,928 in
April, 1936. The Red Network total was $2,303,519; the Blue,
$973,802.
The April figures bring NBC's 1937 four-month total
to $13,729,385, a gain of 22.8 percent over the first four
months of 1936.
A 19.8 percent increase in time billings was reported
for the Mutual Broadcasting System. Total billings for April,
1937, were $167,590. For the same month in 1936, they were
$139,934.34.
Cumulative billings for the first four months of 1937
total $769,901.17, a 16.6 percent increase over the same period
in 1936. For the same period in 1936 they were $660,040.98.
XXXXXXXX
- 5 -
5/7/37
BILL WOULD DESIGNATE ORIGIN OF SPONSOR'S PRODUCT
Announcers would be required to specify the origin
of any product advertised over the air under provisions of a
bill introduced this week by Representative Martin ( R. ) , of
Massachusetts.
The bill seeks to regulate advertising of imported
articles generally. One section dealing with radio reads as
follows :
"In radio broadcasting where commercial broadcast¬
ing is used in the promotion of and to advertise for sale in
the United States any imported article or material, a broad¬
casting announcer shall, at the beginning and end of each
broadcast period, clearly state the name of the country of
origin of the article or material advertised. "
X X X X X X X X X
NEW POWERFUL TELEVISION STATION ^OR EIFFEL TOWER
A new and powerful television transmitter has recently
been ordered for the Eiffel Tower, Paris. This new transmitter
has been commissioned by the French Ministry of Posts, Tele¬
graphs, and Telephones. It will have a peak cower of 30 KW
fully modulated at the aerial, and will be capable of broad¬
casting on the basis of 405 lines, with a band width of 2.5 mc/s.
It is proposed to install the new transmitter at the
base of the Eiffel Tower,, with the aerial projecting from
the top of the flagpole, which is 984 feet above ground level,
according to Wo rid- Radio. The transmission cable from trans¬
mitter to aerial will be approximately 1,300 ft. long, over 5
ins. in diameter, and will weigh about 12 tons. Of the semi-
flexible coaxial cable required for the highest quality trans¬
mission, it will run up the framework of the tower to the centre
of the topmost cupola, from which the present flagpole pro¬
trudes.
The construction of the transmission cable raises
several novel and difficult problems. Since the cable is to
pass upward from the point mentioned, it will be necessary to
substitute a new hollow metal pole for the one now in place.
This with the transmission conductor inside must be pushed up
tnrough the opening in the collar that crowns the steel struc¬
ture to a height of 40 ft. The aerial will continue for
another vertical distance of 10 ft. above the flag.
6
5/7/37
Another problem concerns the installation of the
transmission cable between studios and transmitter. This will
be accomplished by a specially adapted cable with special
terminal equipment necessitated by the alternative systems of
positive or negative control which require different character¬
istics in the transmission lines leading from the studios.
The equipment will include a ’’monitoring set", cor¬
responding to a control station on a broadcasting or long¬
distance telephone circuit. This will enable a technical
operator to have full control, and to know at all times just
what quality of television broadcast is going out "on the air."
The audible portion of the programs will go out from a regu¬
lar P.T.T, broadcasting station. Programs will be produced
from two studios, situated in the Radio Building of the Exhibi¬
tion and the Post Office Building.
Although the P.T.T. has been broadcasting an hour’s
television crogram daily from the Eiffel Tower since December,
1935, with encouraging results, it was felt by technical
experts of the Ministry that orogress had been such as to
warrant the substitution of a more modern and powerful installa¬
tion. Thus the Eiffel Tower, whose career began with the
Exhibition of 1889, is to play a leading part in one of the
most modern features of the 1937 Exhibition.
The contract just signed with Le Materiel Telephon-
ique, in whose laboratories the equipment has been developed
after two years' research, specifies that the new station
shall be ready for service, with reduced power, by July 1 next,
operating with full power by the Autumn.
XXXXXXXX
CBS TO DEDICATE NEW SHORT WAVE STATION MAY 12
Regular daily program service, especially designed
for listeners of Europe and the British Isles, will be init¬
iated by the Columbia Broadcasting System on Coronation Day,
Wednesday, May 12, when network officials dedicate Station
W2XE, Columbia's new high-power international short wave broad¬
cast transmitter.
The new station, which has a peak cower of 40 kilo- / - h
watts, will be official opened at 4 A.M. , E3T (9:00 A.M.,
Greenwich Mean Time) with short dedicatory address by E. K.
Cohan, CBS Director of Engineering, and William Lewis, Vice-
President in Charge of Programs. The first Drogram of the
regular series will be transmitted toward Europe and England
by means of directional antennas and will go on the air at
5:15 A.M. , EDST, when W2XE will carry the Coronation ceremon¬
ies as they are broadcast from London by CBS in collaboration
with the British Broadcasting Corporation.
7 -
5/7/37
Programs of interest, primarily to foreign audiences,
will be selected for W2XE’s trans-Atlantic transmissions by a
new program department headed by Elizabeth- Ann Tucker, who,
as a former member of the CBS General Engineering Department,
has, for the past several years, been closely associated
with Columbia shortwave activities. Salute programs commem¬
orating historic dates in European history and other special
broadcasts will be presented in the language of the country
to which they are dedicated.
The operating schedule of the new station will
enable English and European audiences to hear the programs dur¬
ing their afternoon and evening hours of listening. Licensed
to employ five frequencies, W2XE will be heard as follows:
7:30 A. M. -10:00 A. M. , ED3T : (11:30-14:00 G.M.w.) - 21,520 kilocy.
1:00 P.M.- 2:00 P.M. ,EDST: (17:00-18:00 G.M.T. ) - 17,760 kc.
3:00 P.M.- 6:00 P.M. , EDSTr (19:00-22:00 G.M.T.) - 15,270 kc.
The fourth frequency, 11,830 kilocycles will be held
in reserve until further tests indicate its period of maxi¬
mum usefulness. The remaining frequency, 6,120 kilocycles,
is for transmission to Central and South America.
XXXXXXXXXX
SOVIETS PLAN RADIO HOUSE, BUY TELEVISION EQUIPMENT
While plans for a "Radio-House" in Mius Square, Mos¬
cow, were disclosed by Radio Centre, Moscow, a report was pub¬
lished in New York that the RCA Manufacturing Company is pre¬
paring to ship the Soviet government its latest television
equipment.
That the Soviets expect to follow the precedent of
American broadcasters in permitting an audience to witness
studio performances is apparent from the following press
statement with regard to the new Radio-House.
"One of the studios will have an area of 500 square
meters. Its height will be 10 meters. It will be the largest
studio in the Soviet Union. A symphony orchestra with up to
225 musicians will be able to play in this studio, and 350
people will be able to listen to the broadcast in this studio."
Regarding the television equipment, the current
Variety reported:
"A television transmitter of the most advanced design
was completed this week at the ^CA Mfg. Co. plant in Camden
and is now awaiting shipment to Moscow.
- 8 -
5/7/37
"Although tight-lipped as to the actual hour of
shipment, officials of the company said the apparatus was
merely part of a large order of radio material contracted for
by Russia about two years ago. The order was understood to
involve an expenditure of more than $1,000,000 by the Soviet
Government. The television transmitter is reputed to have a
power capacity of 7,500 watts and to be similar in ooeration
to one recently built by ^CA engineers for a major radio net¬
work in this country.
"Television receivers will accompany the oicture
broadcaster in the consignment for Moscow where construction
of a special 'television center' is planned. Russian engi¬
neers were permitted to study technical Drocesses employed in
the manufacture of the apparatus in the Camden plant as part
of its agreement in the contract. "
XXXXXXXXXX
: : : : TRADE NOTES : : : :
J. C. McNary, consulting radio engineer, is repre¬
senting the National Association of Broadcasters at the fourth
meeting of the International Radio Consulting Committee, which
will convene May 21st at Bucharest, Rumania.
Station WRC, Washington, will shortly begin con¬
struction of a new transmitter just outside of the National
Capital. A permit was issued this week by the Federal Com¬
munications Commission for the work. The cost will be about
$75,000.
Alleging use of unfair methods of competition in the
sale of a preparation known as "Radio Active Hair Restorer",
the Federal Trade Commission has issued a complaint against
Mary Mauthe, trading as Mauthe & Son Remedy Co. , 923-927
Twenty-third St. , Denver, Colo. The respondent is a radio
advertiser.
The first public exhibition devoted solely to the
development and modern attainments of television is to be open¬
ed at the Science Museum at South Kensington early in June,
It is expected that the exhibition will remain open for three
months.
A contract has been given by the Estonian Government
to the British Marconi Company to supply all radio broadcast¬
ing equipment to be installed in the new State broadcasting
station now being constructed at Turi , a small town in the
center of Estonia. It is understood that the value of the
material to be purchased approximates $189,000.
9
5/7/37
Copyright fees os id for the broadcasting of literary
and musical works by the French State stations amount to about
three million francs, and the private stations probably pay
about two million francs (the three Paris orivate stations
together paid nearly one million francs in 1936) , according to
World- Radio, M. Leon Blum has received a delegation from the
French Society of Authors, and as a result has decided to
increase the basis for the State stations, which will thus
have to pay for the year 1937 more than double the old rate.
Radio Corporation of America reported net income in
the first quarter of $2,243,056, equal, after preferred divi¬
dend requirements, to 10 cents a share on the common stock.
This compared with $1,286,691, or 3 cents a share in the same
quarter last year.
XXXXXXXXX
JAMES LIKENS TELEVISION TO MOVIES, FACSIMILE
Television,, one of the most comolicated of modern
sciences, can be easily understood by laymen if it is regarded
as combining the principles of movies and radiofacsimile
pictures, according to E.P.H. James Sales Promotion Manager
of the National Broadcasting Company.
Referring to NBC's experimental television broadcasts
in a talk before the Mendelssohn Club in New York on May 3, Mr.
James said, in oart:
"I have been trying to think of a way to describe how
television works which would not only be clear and reasonably
interesting, but also would be straightforward enough for you
to be able to pass along. I think I can describe it best as a
combination of two principles - the princiDle of the motion
picture and the princinle of the radio facsimile picture.
"Of course, I don't have to explain to you the
principle on which the motion picture works, but I should say
that the modern equipment projects 24 separate oictures, or
frames, per second. In other words, 24 separate ’still' pic¬
tures per second come at you rapidly enough to fool you into
thinking that the objects in the pictures are themselves moving.
"Radiofacsimile, however, may need a little exnlain-
ation. There are several different systmes of sending fac¬
simile pictures by radio and by wire. At the transmitting end
the picture is placed on a roller and a pencil of light crosses
and recrosses the picture, thus dividing it up into a series
of lines, This process is known as ’scanning’. At the receiv¬
ing end, a piece of paper is brought into contact with a print¬
ing device which reproduces those same lines with comparable
degrees of shading. A single 8-by-10 inch picture can be repro¬
duced by facsimile in a.bout 20 minutes, from the first line to
the last. Speaking generally, and distinctly not technically,
television combines the principles of ra.diof acsimile and motion
pictures by the simple process of speeding up everything so
that the televisor sends 30 comolete oictures every second. "
xxxxxxxxxx
- 10 -
V -- v
5/7/3?
TWO CROSLEYS CONTROL CROSLEY CORP. , REPORT SHOWS
Further amendments to registration statements and
annual reports filed with the Securities and Exchange Commis¬
sion were made public this week by the New York Stock Exchange.
Among them was a schedule showing that Powel Crosley, Jr. ,
and Dwendolyn A. Crosley between them controlled the Crosley
Radio Corporation, the former owning 152,699 shares, or 28
percent, on January 31, 1936, and the latter, 130,910 shares,
or 24 percent.
The January flood caused Crosley to suffer a loss of
$31,559 for the first three months of 1937, its quarterly
earnings statement disclosed.
Although net profit from operations amounted to
$218,440, the company set aside $250,000 for flood loss,
resulting in the $31,559 deficit, as compared with net profit
of $687,877 for the first 1936 quarter.
The flood, which caused the Crosley plant to shut
down temoorarily and indirectly caused a $500,000 fire in a
warehouse, resulted in a share aroo in sales, the total for
the 1937 quarter being $3,973,336, as coraeared to $6,847,523
in the first 1936 quarter.
XXXXXXXXXX
CALLAHAN LEAVES WASHINGTON NBC OFFICE
Resignation of Vincent F. Callahan, Commercial Manager
of the National Broadcasting Comeany’s two Washington radio
stations, was announced this week by Kenneth H. Berkeley,
General Manager. Mr. Callahan leaves Washington May 17th to
become General Manager of Radio Station WWL, at New Orleans,
at a salary said to be $10,000 a year. Mr. Berkeley also
announced the appointment of John H. Dodge for the last three
years a member of the sales staff of WPC and WMAL, to succeed
Mr. Callahan.
Mr. Callahan is a native of Washington and has been
associated with publishing and radio concerns in the city for
15 years.
XXXXXXXX
11
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5/7/37
24,500,000 RADIO FAMILIES , CBS SURVEY SHOWS
More than 24,500,000 American families now have
radio sets.
Receivers are being bought in this country currently
at the rate of 28 sets per minute, 140 every five minutes, and
in the first three months of this year 1,300,000 sets were
purchased for homes and automobiles.
Total U. S. sets in use is placed at 33,000,000
which exceeds the number of automobiles and is more than
double the number of telephones in operation.
Those figures are contained in a new survey which
the Columbia Broadcasting System has released under the title,
"Radio in 1937. "
The brochure, which brings uo to date Columbia's
continuous 4-year measurement of the national radio audience
under the direction of Dr. Daniel Starch, noted research
expert, reveals that 1,631,000 families joined the radio
audience during 1936. At the beginning of 1937, 24,500,000
families owned radios. Among these, 20,212,500 listened an
average of over 5 hours each day. In 1932, the average daily
period for each family listening was 4.1 hours.
In addition to radio-equipped homes, the number of
automobile radios in use at the beginning of 1937 is shown in
the study at 4,500,000. Taking into account the 4,000,000
families owning more than one radio, the total number of radio
sets now in operation is placed at more than 33,000,000.
Personal interviews with some 160,000 set-owners in
all parts of the country form the basis for the figures con¬
tained in the latest CBS survey. Interviews by Dr. Starch' s
staff of trained statisticians last from 20 to 30 minutes and,
during the four quarter periods of 1936, covered every income
group in 160 communities of 2,500 population and over. In this
category it wasfouna that nine out of every ten families were
radio owners.
Intensity of ownership according to size of family
income varied as follows: 98.6$ of homes with incomes over
$5,000; 96,5% of homes with incomes of $2,000 to $5,000; 85.1$
of homes with incomes of $2,000 or less.
The percentages of horacs having radios in communities
of various sizes are as follows: 92.4$ in cities of over 250,000
90.8$ in cities of 25,000 to 250,000; 91.8$ in cities of 10,000
to 25,000; 88.8$ in cities of 2,500 to 10,000.
XXXXXXXX
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
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INDEX TO ISSUE OF MAY 8, 193?.
U. S. Delegates Leave For Bucharest Conference . 2
FCC Secretary Denies Political Trade Got Him Job . 3
Fight Between Wire Services Shows Radio News Pays . 4
House Passes Sa.f ety-At-Sea Bill Affecting Radio . 5
Coronation Coverage To Be One Of Radio’s Best Jobs . 5
Church’s Lease Of Radio Station Hit By Examiner . 7
Examiner Urges WMBQ, Time 3e Given WWpL . . . 7
Trade Notes . 8
Progress Reoorted In Philco Strike Parleys . . . . 9
Swiss In Market por S-W Police Receivers . . . 9
Radio-Telegraph Rates Cut By RCA, Mackay. . 10
Radio Writers Deny Censorship Implications . 10
Hoover, Farley Attend Dinner For Gene Buck . 11
Author Attacks Present Control Of Broadcasting . 11
NBC Cashes In On Big News Events . 12
McCosker Forms Foundation For Needy Cardiacs . 12
No. 1025
May 4, 1937.
U. 3. DELEGATES LEAVE FOR BUCHAREST CONFERENCE
Technical problems on radio allocations, particularly
short-waves, will be tackled when the International Radio Con¬
sulting Committee meets in Bucharest May 21 to June 10.
A delegation of six, headed by Dr. J. H. Dellinger,
Chief of the Radio Section of the Bureau of Standards, was
due to sail today (Tuesday) for Bucharest. Other members of
the party are :
Lieut. E. K. Jett, Assistant Chief Engineer, Federal
Communications Commission; Gerald C. Gross, Chief of the FCC
International Section; Capt. 3. C. Hooper, Chief of Naval Com¬
munications; Lieut. Col. D. M. Crawford, of the Army Signal
Corps; and Francis deWolf, of the Treaty Division, Department
of State.
The Bucharest meeting is but preliminary to the
International Telecommunications Conference to be held in Cairo,
Egypt, next February. Whatever is done at the Bucharest parley
must be approved at the Cairo meeting of all countries concerned
with radio broadcasting or communica tions .
But, like the preliminary meeting in Havana a few
weeks ago of representatives of the United States, Canada,
Mexico, and Cuba, the work done by the engineers will pave the
way for accord between the nations concerned at the later
general conference.
As short-wave reception in this country has grown
vastly in importance since the last meeting of the C.C.I.F. in
Lisbon in 1934, considerable attention will be given to the
problem of improving the transmissions.
The U. S. delegation is prepared to offer recommenda¬
tions for better technical standards which they believe will
improve the short-wave broadcasts. Other countries, especially
England and Germany, will fight for the outlawing of short¬
wave stations, most of which are in Latin American countries,
which broadcast on unauthorized frequencies and thus interfere
with reception of English and German transmissions to the
United States.
The C.C.I.R. was established by the International
Radio Conference of Washington in 192? and reestablished by
the International Telecommunications Conference at Madrid in
1932.
2
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Its function, according to Dr. Dellinger, is to
advise radio administrations of the world on technical radio
questions which are submitted to it. The general objective
of its work is the reduction of radio interference. Its
membership is composed of representatives of both the govern¬
ments and the radio operating companies.
Other meetings of the C.C.I.15. have been held at
The Hague in 1929, at Copenhagen in 1931, and at Lisbon in
1934.
An appropriation of 349,000 for the expense of the
American delegation to the Cairo Conference next February
has been voted by Congress. The delegation to the Confer¬
ence, held every five years for the revision of treaties govern¬
ing international communications has not yet been named.
XXXXXXXXX
FCC SECRETARY DENIES POLITICAL TRADE G-OT HIM JOB
Thomas J. Slowie, who on Saturday was sworn into
office as Secretary of the Federal Communications Commission,
has denied reports that his appointment was due to a politi¬
cal trade between the Iowa congressional delegation and the
President.
At the time of his appointment it was reliably
reported that President Roosevelt had instructed the FCC to
name Slowie just as it was about ready to appoint Robert
Berger, of New York. The report was that the Iowa delegation
had agreed to support the President’s Court reform program
in exchange for the patronage.
Mr. Slowie was quoted in the Washington Times , how¬
ever, with regard to the report as follows:
"It’s a damn lie. There is not a word of truth in
it. I did not get the backing of the Iowa State legislation
for the job. As a matter of fact about three- fourths of the
delegation did not know anything about it. If anybody says
that the question of backing the President's Court plan enters
into it, it's libel."
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FIGHT BETWEEN WIRE SERVICES SHOWS RADIO NEWS PAYS
The pending litigation between Transradio Press
Service, Inc., and the three major press associations indicates
that the merchandising of news via radio has reached a stage
where it pays substantial profits.
A few years ago several organizations made abortive
efforts to form services which would provide news to radio
stations and networks. Only Transradio survived when the
press associations decided to enter the field, and the pub¬
lishers organized the Press-Radio Bureau.
Frank A. Arnold, writing in the current Editor &
Publisher, takes note of the success in tnis field, saying:
"Today radio news is an accepted fact. It has pass¬
ed the experimental stage and now occupies regular scheduled
periods on most of the outstanding radio stations of the
country. The extent to which news of the world is becoming
a part of the regular orogram activities of radio stations is
shown by the following figures taken from the latest compila¬
tions at my command.
"There are now four major sources of news distribu¬
tion available to radio stations - Trans-Radio, serving 174
stations; United Press, 143; International News Service, 66;
and Radio News Association, 17. This makes a total of 400 out¬
lets or, roughly, 60 per cent of the regular licensed broad¬
casting stations. Although this entry of news into the radio
field created some discussion as well as criticism at the start,
yet it has now become such an accepted feature as to be regu¬
larly scheduled without criticism or unfavorable comment. "
The $1,700,000 suit of the Transradio Press Service,
Inc., against 17 defendants including the three major press
associations, two broadcast chains and the American Newspaper
Publishers' Association, charging conspiracy in restraint of
trade by their participation in the Press-Radio agreement of
March, 1934 is scheduled to come up in the U. S. District
Court in New York City on May 10.
The suit which was filed in May, 1935, charged viola¬
tion of the Sherman Act, Clayton Act and the Federal Communica¬
tions Act.
Transradio Press Service, Inc., has also filed a
lipel suit in the Supreme Court of New York County against the
United Press for $50,000 damages and interest from Aoril 16, and
costs. Transradio charges that on or about Feb. 15, 1937, the
UP "published several documents" stating that in six months UP
had gained 21 stations and lost none, INS had gained one and
lost three "(all to United Press" and ^ransradio gained none and
lost seven. This is false, ^ransradio claims, and damaged its
business.
XXXXXXXX
- 4 -
5/4/37
HOUSE PASSES SAFETY-AT-SEA BILL AFFECTING RADIO
Amendments to the Communica tions Act of 1934 which
will necessitate the more widespread use of radio facilities
on ships at eea was passed by the House on Monday and sent to
the White House for the President’s signature. It previously
had been adopted by the Senate.
The measure goes beyond the original Act in requir¬
ing vessels, carrying either freight or passengers, unless very
small, to carry radio equioment which will enable them to keep
watches for SOS calls either through a qualified operator or
by means of automatic alarms.
XXXXXXXX
CORONATION COVERAGE TO BE ONE OF RADIO'S BEST JOBS
Radio coverage of the coronation of King George VI
and Queen Elizabeth on May 12 will be on probably the largest
scale of any international event up to this time.
The British Broadcasting Corporation has completed
a plan of broadcasting by long and short waves so that every¬
one who can get to a radio receiving set will be able to
follow the ceremony in detail.
Besides broadcasting a description of the procession
to Westminister Abbey, the actual coronation and the address of
King George VI at the time they occur, BBC will transcribe the
originel broadcasts so that they can be repeated at times which
will be convenient to listeners all over the world.
Thus American short-wave listeners, who do not wish
to arise for the actual program, which will be carried over
United States networks, may tune in on a transcription broad¬
cast the evening of May 12th. At that time the coronation
will be on the air at 6:30 P.M.,EST, and the King's address
at 10:30 P.M. , EST .
In addition to the commentaries by the seven BBC
observers, commentaries in thirteen different languages will
be sent to foreign countries by their own observers. The
following languages will be used: Czech, Danish, Dutch,
Finnish, Flemish, French, German, Hungarian, Japanese, Nor¬
wegian, Spanish (for the Argentine), Swedish, and Yugoslav.
During the day a total of fifty- eight microphones
will be used, thirty-two of which will be used for the broad¬
cast of the actual ceremony and for reproducing a sound
picture of the arrival and departure of the procession. Eleven
will be devoted to picking up effects outside the Abbey and
5
5/4/37
the Palace and along the route. English and foreign observers
will use fifteen.
Twelve tons of equipment have been installed, of
which seven tons are batteries. The total length of wire used
will be approximately 472 miles.
Sixty BBC engineers will be engaged on this one out¬
side broadcast - technically, the most comolicated yet under¬
taken by the BBC.
The BBC also is preparing to televise the Coronation
procession at Apsley Gate, Hyde Park Corner, London, on the
return journey from Westminster Abbey. A running commentary
will accompany the broadcast, which will open with crowd
scenes and last approximately an hour.
Three ca.meras will be used. One of these, installed
on the plinth of Apsley Gate, will give overhead views of the
advancing procession, and a second camera, operated from the
pavement immediately to the north of the Gate, will provide
close-ups as the procession passes through the arch. Another
camera, facing southwards from Apsley Gate, will show the end
of the procession crossing Piccadilly towards the Green Park
and Constitution Hill.
It will be the first television broadcast from a
point some miles distant from the London Television Station at
Alexandra Palace. Owing to technical reasons, the length of
the special multiple cable that has been used for televising
events inside the grounds of Alexandra. Palace is limited to
1,000 feet. Consequently , control-room apparatus must be pro¬
vided at Apsley Gate, and to meet this need, the BBC has pur¬
chased from the Marconi-E. M. I . Television Company a mobile
control-room installed in a motor vehicle about the size of a
standard single-deck saloon 'bus.
Two rows of racks along each side of the interior of
this vehicle accommodate the apparatus, leaving a centre aisle
for the use of the engineers. in all, twelve racks - each
7 ft. 6 ins, high and 19% ins. wide - have been installed. The
total weight of apparatus and vehicle is about 8% tons. A
reproducer fitted into the comoartment over the driver' s head
enables the controlling engineers to see the televised picture.
The vehicle is also equipped to deal with sound, fade-units
and amplifiers for use with four microohones having been
installed.
XXXXXXXX
6
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5/8/37
CHURCH’S LEASE OF RADIO STATION HIT 3Y EXAMINER
The lease of Station KFXR, Oklahoma City, by the
Exchange Avenue Baptist Church to B. C. Thomoson, present
manager, was criticized by Examiner Robert L. Irwin in a
report to the Federal Communications Commission this week
recommending that the station license by transferred to the
Plaza Court Broadcasting Company.
The church has been the licensee of the station
since 1927, but in 1932 its pastor entered into an agreement
with Thompson, then commercial manager, under which he leased
the station upon payment of $600 cash, assumption of a $400
debt, and weekly payments of $75.
"The operation of Station KFXR under the original
and supplemental management contracts presents a close question
of violation of Section 310(b) of the Act", the Examiner said.
He pointed out, however, that the transfer would
invalidate the former lease.
XXXXXXXXXX
EXAMINER URGES WMBQ TIME BE GIVEN WWRL
A recommendation that time assigned to Station WMBQ,
Brooklyn, be given to the Long Island Broadcasting Company,
operating Station WWRL, was made to the Federal Communications
Commission last Saturday by Examiner Ralph L. Walker.
He recommended also that applications of Lillian E.
Keifer and Paul J. Gollhofer for authority to take over WMBQ' s
time and construct new stations be denied, and opoosed the
aoplication of the Metropolitan Broadcasting Corooration to
continue operation of WMBQ.
He held that the Metrooolit an Broadcasting Company
sold time to "brokers" for foreign-language programs and "in
substance assigned a right or privilege."
"The control of the station over these programs pre¬
sented primarily in foreign languages is practically non¬
existent, in that entire dependence is placed on translations
presented by the brokers", he added.
XXXXXXXXX
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TRADE NOTES :
Trav-Ler Radio &. Television Corporation, 1028 West
Van Buren St. , Chicago has entered into stipulation with the
Federal Trade Commission that it will cease using as a trade
name or brand for its radio sets the word "Majestic", alone
jr in connection with the words "Radio Corp. ", or with other
words so as to imply that its sets are made by Grigsby- Grunow
Company, Chicago, originally the manufacturer of Majestic sets,
or by its successor, Majestic Radio & Television Corporation,
Chicago, when such is not a fact.
Station WJTN, Jamestown, N. Y. , will make its first
network affiliation by joining the National Broadcasting Company
May 15 as an optional outlet available with the Basic Blue
Network. It will be NBC's 126th station. WJTN is the only
station in Jamestown. It operates on 1210 kilocycles, with
250 watts power in daytime and 100 watts at night.
Purchase of the old Franklin Institute Building in
Philadelphia by A. Atwater Kent, well known former radio manu¬
facturer, and its presentation to the city for use as a histori¬
cal museum was announced last week by Mayor Wilson.
L. J. Fitzgerald, NBC Artists Service, has been
placed in charge of sales of VBC concert artists for commercial
radio, effective May 15. He has been handling general talent
bookings.
Misrepresentation of the curative value of a prepara¬
tion known as "A & 0", offered as an effective treatment for
colds, is alleged by the Federal Trade Commission in a complaint
issued against Joe Anderson, trading as The A & 0 Company, New
Bern, N. C. The respondent is a. radio advertiser.
King George VI has given permission for broadcasting
organizations to record his speech on May 12 for the purpose
of subsequent broadcasting. "The Earl Marshal raises no objec¬
tion to oversea broadcasting organizations recording for sub¬
sequent broadcasting the Coronation Service in Westminster
Abbey on May 12", the B3C stated. "The BBC is notifying over¬
sea broadcasting organizations, however, that they must under¬
take the responsibility for covering any copyright existing in
the music performed at the Coronation Service. "
XXXXXXXXXX
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PROGRESS REPORTED IN PHILCO STRIKE PARLEYS
Negotiations between representatives of 8,500 strikers
and employers at the Philadelphia plants of the Philadelphia
Storage Battery Go. ana the Philco Radio & Television Corp.
were under way early this week. Early reports were that pro¬
gress was being made.
Three locals of the United Electrical and Radio
Workers Union called the strike last Friday after charging the
concerns with violating seniority rights of certain employees.
George E. Deming, Executive Vice-President of the
Philadelphia Storage Battery Co. , suggested a conference Monday
in a letter to Reese Llewellyn, local union president.
Mr. Llewellyn had written the concern after the
strike was called that he was willing to meet its representa¬
tives at any time. He said "we have gotten no dace" on efforts
to agree on a new contract.
The Union asked for an increase of ten cents an hour
for production workers and an additional increase of five cents
an hour for night work, he said.
Mr. Deming wrote to James 3. Carey of New York, Nat¬
ional President of the Union, that the strike was the result of
"failure on the part of the Union to follow the procedure as
outlined in the agreement which you and I signed a year ago. "
"The management takes the position that the agreement,
by its terms, was still in effect, but that the strike action
cancels all agreements to date", he said.
"We are willing to negotiate a new agreement but
must have one that is workable and comparable on an industry
basis that will enable us to maintain a competitive position. "
XXXXXXXX
SWISS IN MARKET FOR S-W POLICE RECEIVERS
The first police short-wave radio station, which will
serve as a central station for all Switzerland, has been
installed by the Zurich Cantonal Police. Most of the trans¬
mitting apparatus and equipment are of American origin, according
to U. S. Consul General A. C. Frost of Zurich. At present only
five police receiving sets are in Operation in Switzerland.
"It is understood, however, that several hundred sets
will be required in order to complete tnis system", the report
states. "The transmitting station was installed jointly by
several Zurich firms, orincioally the firm Seyffer & Co., Kenz-
leistrasse 126, Zurich. American exporters of nolice radios
should make their offers through a local radio dealer and not
to the police authorities directly. However, advertising
material may be sent to the Zurich Cantonal Police, Kasernen-
strasse , Zurich. "
XXXXXXXX
9
RADIO-TELEGRAPH RATES CUT BY RCA, MACKAY
Rate slashes and service alterations in overnight
domestic communication, to become effective June 1, were
announced this week by both telegraph and radio-telegraph
companies.
The new tariffs, agreed upon in conferences with the
Federal Cornmunice tions Commission, were disclosed simultaneous¬
ly by Western Union and Postal Telegraph comoanies and by Radio
Corporation of America and Mackay Radio & Telegraoh Co.
Telegraph tariffs orovide for discontinuance of the
10-word night message and the 50-word night letter. They con¬
template a 25-word minimum night letter as a rate base. The
proposed night letter may be sent between the United States’
two most separate points for 50 cents.
Words in excess of the minimum will be charged for
in groups of five and according to the distance the original
25 words are sent. Charges for the excess wordage will decrease
progressively as their number increases, and over the shorter
distances, it will be possible to add to the minimum for a fifth
of a cent a word.
In Radio telegraphy , Radio Corporation of America and
Mackay Radio & Telegraph Co. announced similar changes. Both
will discontinue the 15-word night message and 60-word night
letter and establish a new rate on a 30-wora minimum.
The 30-word night letter, like the 25-word telegraph
night letter, may be sent anywhere in the United States for
50 cents. Additional words over the minimum of 30 will be
charged for in groups of six. Distance and volume will pro¬
rate the excess charge.
X X X X X X X X X
RADIO WRITERS DENY CENSORSHIP IMPLICATIONS
Taking exception to the censorship implications con- .
tained in an article entitled "News of the Air", by Richard
Sheridan Ames in a January issue of the Sa turds y Evening Post ,
members of the Executive Committee of the Association of ^adio *
News Editors and Writers at a meeting in Chicago recently,
adopted a resolution calling uoon the Post to bring "the true
facts pertaining to radio news writing" to the attention of its
readers.
The resolution also stated: "That the Executive
Committee of ARNEW be placed on record as saying to the American
public that never, to our collective knowledge of the recog¬
nized profession, has any censorshio of radio news by radio
sponsors been tolerated or even suggested. That ARNEW be placed
on record as pledging itself and its members collectively and
individually to the continued truthful and honest presentation
of news items at all times,"
X X X X X X X X
10
HOOVER, FARLEY ATTEND DINNER FOR GENE BUCK
Former President Herbert Hoover and James A. Farley,
Chairman of the Democratic National Committee, were among the
distinguished guests at a dinner given in honor of Gene Buck,
President of the .American Society of Authors, Comoosers, and
Publishers, Monday night in New York. "Tie host was the
Catholic Actors' Guild.
The former President paid a warm tribute to the
composer guest of honor, of whom he said: ,TIf I were in fact
trying to find the American who represented the great quality
of kindness, I would name Gene Buck.
Telegraphed tributes to Mr. Buck from President
Roosevelt, Vice-President John N. Garner and others were read
by Joseph P. Tumulty, the toastmaster. Edward P. Mulrooney,
State Commissioner of Correction, was Chairman of the dinner.
In an address in which he thanked his friends for
their praise, Mr. Buck expressed regret that certain theatres
in New York City had offered a type of entertainment that had
necessitated the intervention of the police. He declared
that there was no place on the stage for "smut with a smirk M
and added that such stars as Ed Wynn, who attended the dinner,
and George M. Cohan, who sent a message of greeting, had made
great careers without the use of risque lines and situations.
XXXXXXXX
AUTHOR ATTACKS PRESENT CONTROL OF BROADCASTING
A vigorous attack on the present set-up and control
of radio broadcasting is made in a book just published, "Not
to be Broadcast", by ^uth Brindze (The Vanguard Press; $2.50).
part :
The New York Times in a review of the book said, in
"Miss Brindze writes a vigorous attack uoon every
aspect of radio broadcasting. She thinks that the control of
the industry which has had such an amazing development is in
wrong (even sinister) hands; that the public policy with res¬
pect to government supervision of radio licensing is in need
of a thorough overhauling; that free speech is denied particu¬
larly by the radio chains, and that the public should assert
itself before broadcasting gets out of hand completely. Many
who agree with the thesis that the granting of the use of wave
lengths to private individuals without fee or tax is giving
away too freely valuable natural rights and that we are in
need of a sounder national policy in this field will wish that
Miss Brindze had presented a better case. Much of the evidence
she adduces is not convincing, and her statements are too
sweeping. "
XXXXXXXX
- 11 -
5/8/37
NBC CASHES IN ON BIG NEWS EVENTS
The NBC Promotion Department has been very neatly
tying in important news events in its advertising material. One
of the series was entitled "Go to the Coronation as the Guest
of NBC" and carried a beautiful photograph of the State Coach
passing the reviewing stand in the Coronation procession along
with a preliminary announcement of the NBC Coronation broad¬
casts. A second announcement a week later, entitled "Follow
the Golden Coach" was illustrated by a map showing the parade
route and where NBC commentators would be stationed and gave
a time-table of the broadcasts.
A week after these two announcements came, a third
news flash, but this dealt with the Kentucky Derby and was
labelled, "They're Off.* You Can't Lose.'" This was illustrat¬
ed by a news photograph of the thrilling finish and gave the
time of the broadcast.
An example of how the news-events are tied into
advertising salesmanship was in the conclusion of "They're
Off - You Can't Lose" which read:
"No one can pick a Kentucky Derby winner ... in
advance. We all may have a fairly shrewd idea . . . which we
are willing to back to the limit. The wise ones save enough
for carfare home. But, everyone wins who uses NBC. The ele¬
ment of chance has been minimized through years of showmanship
and experience.
"Would you like to talk to this eager responsive
market? You can . . . easily. May wp tell you how?"
XXXXXXXXXX
McCOSKER FORMS FOUNDATION FOR NEEDY CARDIACS
A foundation for the care, convalescence and aid of
needy cardiacs is being formed as a philanthropic venture by
Alfred J. McCosker, President of Station WOF , and Harry
Hershfield, cartoonist. Leading heart specialists have offered
to aid the project, which calls for the opening of a home with¬
in a year.
Considerable money already has been realized for the
project. Additional funds are to be raised through benefits
and subscriptions. Mr. McCosker and Mr. Hershfield began the
movement with the aid of 100 friends.
XXXXXXXXXX
The Zenith Radio Corporation has completed moving
operations and all departments should hereafter be addressed
to the new factory at 6001 Dickens Avenue, Chicago, Illinois.
Telephone: Berkshire 7500.
XXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
! C O N F I D E N T I A L — Not for Publication f f
INDEX TO ISSUE OF MAY 11, 1937
WLWL Sale Seen As Silencing Radio Probe Cry . 2
I. T. & T. To Demonstrate Radio Landing System . 3
NBC To Use Special New Field Transmitters . 4
Lawyers Give FCC Hilarious Roasting . 5
Bureau Of Standards Announces New Radio Transmissions . 8
End Of International Static Seen By Engineers . 9
Stone To Give I. T. & T. Full Time . 10
Guatemala Buys Station Apparatus From RCA . 10
Baseball ’’Monopoly" Unfair To Radio, Says' Cannon . 10
CBS Elects Three New Members To Board Of Directors . 11
Special Amplifiers Developed ^or Coronation . 11
Roosevelt Ordered FCC Appointment, Says Mellon . 12
Market For Radio Sets In Venezuela Has Expanded . 12
No.
1027
:: i ■
May 11, iy37.
WLWL SALE SEEN AS SILENCING RADIO PROBE CRY
If '
The sale of Station WLWL, New York, by the Paulist
Fathers to Arde Bulova , watch manufacturer and broadcaster,
for S275 , 000 may have the indirect effect of silencing demands
for a radio inquiry on Capitol Hill, according to rumors in
broadcasting circles.
The transfer, approved last week by the Federal Com¬
munications Commission, has brought to an end a long drawn-out
controversy between the Paulist Fathers, the Columbia. Broad¬
casting System, and Bulova.
It is understood that this three-way scrap was res¬
ponsible for the demands for a broadcasting investiga tion by
Representatives Connery ( D. ) , and Wigglesworth (R. ), of
Massachusetts .
While anticipating scattered outbursts against the
FCC and the so-called "radio monopolies", broadcasters this
week are more confident than at any time since Congress convened
that a Congressional probe has been forestalled.
The several attempts of the Paulist Fathers to obtain
a full-time station or dispose of WLWL have caused the Commission
more concern than any problem in recent years. Two years ago
the Paulist Fathers were reported to be behind a Congressional
move for the setting aside of specific frequencies for educa¬
tion and religious broadcasting stations.
Formation of an Eastern seaboard network, covering a
halv-aozen stations between Philadelphia and New England, is
contemplated by Bulova as a result of his purchase of WLWL.
Whether the former Paulist station will be eliminated
or will be operated on a full-time basis has not been disclosed
by the new owner.
One plan is understood to call for the transfer of
WOV, New York, from 1130 to 1100 kc. and its operation full time
with 10,000 watts. This would eliminate WLWL, which now uses
that channel two hours daily.
Another plan provides for the expansion of WLWL to a
full-time station to become the key of the network.
xxxxxxxxx
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I.T. & T. TO DEMONSTRATE RADIO LANDING SYSTEM
The International Telephone and Telegraph Corooration
has brought to this country, for the purpose of testing and
demonstrating, complete equioment of the Lorenz Instrument
Landing System. This radio employing device has been developed
by C. Lorenz-A. G. , Berlin, Germany, a subsidiary of the
I. T. & T. The American demonstration, according to Frank
Page, will be made in Indianapolis Friday and Saturday, May 14
and 15, at the Municipal Airport.
Commercial air fields in the following cities are
equipped with the Lorenz System: England. - Croydon; Heston;
Gatwick; Italy - Milan; Pome and Venice (under construction) ;
Germany - Berlin; Hamburg; Hannover; Cologne; Leipzig; Frank¬
furt a/M; Stuttgart; Stettin; Munich; Dresden; Nurnberg;
Konigsberg; Free City of Danzig; Switzerland - Zurich;
Hungary - Budapest (under construction) ; Austria - Vienna;
Sweden - Stockholm; Czechoslovakia - Prague (under construc-
tion) ; Poland - Warsaw; Posen; Japan - Tokyo; South Africa. -
Capetown; Russia - Mowcow (equipment just delivered).
The following air transport companies are using air¬
craft equipped with the Lorenz System Equipment:
Deutsche Lufthansa; A. -B. Aerotransport ; Air France;
British Airways; Oelag Wien; Imperial Airways; Koninklijke
Luchtvaart-Maatschappi j (KLM) ; Swissair; South African Airways.
International Telephone and Telegraph Corporation
through the cooperation of the Department of Commerce and the
officials of the Municipal Airport at Indianapolis have
installed for the demons tra tion the Lorenz Instrument Landing
System at the Indianapolis Airport and the receivers for this
system in test airplanes of the Department of Commerce and of the
commercial airlines.
In the operation of the Lorenz system, the pilot
approaches the field by means of the usual directional, or hom¬
ing beacon, to within about twenty miles of the airport, at
which point the Lorenz System signals are capable of being
received on both the aural and visible receiving instruments.
One of the boundary signals will be the first received. The
audible signal will be the code - a dot for the starboard and
a dash for the port side. The signal also will be indicated on
a dial on the instrument panel. The pilot, by maneuvering his
plane, reaches the guide path which is indicated by the blend¬
ing of the port and starboard audible signals into a continuous
tone and by the centering of the visible indicator on his dial.
He will also be advised of nis progress toward the field by
the increasing intensity of the audible signals and by the
volume indicator on his dial.
3
'■ :• '■
5/11/37
At the moment when the continuous note is reached,
the direction indicator comes to rest and tells the pilot that
he should maintain his course for safe landing at his destina¬
tion.
During the approach, the pilot gradually decreases
the height of the airplane. At about two miles from the bound¬
ary of the landing field when the plane crosses the outer mark,
the lamp on the left side of the visual indicator lights up
and, at the same time a deep note is heard in the headphones.
The pilot then throttles down and descending at an approxi¬
mately constant rate reaches the proper height at the inner
marker beacon. The beacon signal from the inner marker is
received at a distance of about 350 yards from the boundary of
the landing field - a few seconds before the machine reaches
this boundary - and is conveyed to the pilot by a rhythmic
short-keyed high note as well as by the lighting of a lamp
on the right-hand side of the visual indicator. The pilot now
knows that there are no obstacles to his flight in the final
section of the landing path and can, consequently , further
reduce the height of flight in order that he may bring his
machine down safely even when ground visibility is very poor. "
XXXXXXXX
NBC TO USE SPECIAL NEW FIELD TRANSMITTERS
Complete replacement of all short-wave facilities used
in special events programs by the National Broadcasting Company
at six of its key points was announced this week by 0. B. Hanson,
NBC Chief Engineer. Four new types of high frequency trans¬
mitters, with receivers and other field pieces, will be deliver¬
ed In July to NBC offices at New York, Washington, Cleveland,
Chicago, Denver and San Francisco at a cost of about $75,000.
Purchase of the new short-wave apparatus, all designed
in the NBC laboratories under the direction of R. M. Morris,
Development Engineer, will greatly expand NBC’s capacities for
covering such events as the Hindenburg disaster, conventions,
parades, outdoor sports meets and others demanding numerous and
rapidly changing points of pickup.
The latest addition will give the National Broadcast¬
ing Company a nearly complete new line of apparatus used in its
remote control broadcasts. Each piece is considerably in advance
of equipment available in the market and it is anticipated that
all will be abreast of engineering developments for several years.
Distribution of seventy new field amplifiers and more
than 200 new microohones for field broadcasts was recently
announced by Mr. Hanson. Including these, the new apparatus,
to be made from NBC models by the RCA Manufacturing Company,
will cost more than $125,000.
XXXXXXXX
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5/11/37
LAWYERS GIVE FCC HILARIOUS ROASTING
The Gridiron Dinner had nothing on the frizzling
the "first informal engineering conference" of the Federal
Communications Bar Association gave the Commissioners and
other FCC untouchables in Washington last night (Monday). The
dinner of the less than a year old organization, which now
numbers close to 200 members, was on the Gridiron high plane
of cleverness throughout. Nevertheless, it was interesting
to watch the expression on the faces of some of the high
officials when they were hit, and who didn’t know what they
were getting in to. There was at least one red face when the
lawyers brought up the now famous incident at the Willard
Hotel, where eavesdroppers alleged to have heard that a Com¬
munications Commissioner had received a large bribe.
"One Commissioner is absent through illness", Louis
Caldwell, President of the Association, said, "and another
because of a speaking engagement. One, however, left town as
soon as this meeting was announced. "
The prediction is ventured here, judging from the
merciless lampooning at the first lawyers' dinner, that no
Commissioner will dare stay away from the next one and further¬
more there will be a scramble for invitations. Radio people
will be coming here from all over the country for it.
Those at the speakers' table beside Mr. Caldwell,
who presided, were Anning S. Prall, Chairman of the Communica¬
tions Commission, Commissioners E. 0. Sykes and Irvin Stewart,
Hampson Gary, General Counsel, John M. Littlepage, Duke M.
Patrick, John W. Guider, Paul D. P. Spearman, Ralph Kimball,
of the Western Union, Horace L. Lohnes, George 0. Sutton,
Phil J, Hennessey, Jr., and 3en S. Fisher, Chairman of the
Arrangements Committee.
Presumably the affair was a business meeting of the
Association with various Chairmen reading the usual dry and
lengthy reports. Throughout there were interruptions by a
radio announcer, in reality Phil Loucks, whose voice was heard
through loud speakers in the hall. In fact, it was this radio
announcer who first brought up the painful Willard incident
when a year or so ago those listening from an adjoining room
told the world a Commissioner had sold out for $25,000.
"This program is brought to you through the courtesy
of the New New Willard Hotel", the radio announcer droned.
"When in Washington spend a night or two with us; the hotel
has been thoroughly renovated, with souna-proof walls acousti¬
cally treated. ’Whisper or shout, the noise can't get out.'"
Another reference was made to the incident when John
Littlepage credited Phil J. Hennessey with being the founder
of the Federal Coramunica tions Bar Association.
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'’With a fine sense of the proprieties", Mr. Littlepage
declared, "P. J. timed and placed the birth of the I D E A at a
ROOM IN THE WILLARD HOTEL on April 27, 1936, during Cherry
Blossom Time. Where could he have found a more fitting setting
for this event than this shell-ridden scene of the BATTLE OF THE
THIN PARTITIONS, the echoes of which still reverberate through
the halls on Capitol Hill and in the pages of the Nation? To
quote P. J. 's own original words:
"'The world will little note nor long remember what
we say here but it never will forget what THEY did here. '
Unwittingly, at this point, P. J. slipped into a slight anachron¬
ism; it has not yet been made known what, if anything, did happen."
Commissioner George Henry Payne, conspicuous by his
absence, came in for a few hot ones. former Representative
Frank D. Scott, of Michigan, addressing Duke Patrick inquired:
"Mr. Patrick, you mentioned Commissioner Payne. Where
is Commissioner Payne’s other office?"
"His other office?" Mr. Patrick replied, "What do you
mean, Mr. Scott?"
"I mean the office he spends all his time in", was the
answer. "You know what I mean, the office where he operates his
public address system.
"Oh, you mean that office", Patrick said. "I don't
know. But I've heard where his office will be next year.
"Where will Commissioner Payne's office be next year?"
"Over on the eighth floor of the National Press Build¬
ing", Patrick concluded. "He's going to take over Broadcasting
from Marty and Sol when he gets through with that libel case. "
This referred to the §50,000 libel suit filed by
Commissioner Payne against Broadcasting Maga zine.
At this time the radio announcer broke in with:
"Stand by, stand by for news fl^sh. The Transparent
Radio-Press has just advised us that the Telegraph Division has
rendered another decision, Senator Wheeler dissenting. "
In a minute, the announcer burst forth again:
"Stand by, Stand by, for a correction in the last
announcement. That was not a. decision in a new case. Just
another change of heart in the Oslo case. We've forgotten which
way it went this time. "
Mr. Littlepage admonished President Caldwell for vio¬
lating a rule that no speeches were to be made at the banquet.
"Where did you get that idea?" Caldwell retorted.
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'’Right here on this card Ben Fisher sent out", Little-
page came back. "It says: ’No speeches will be tolerated.’
That's clear enough, even for an officer of this Association.
It seems to me, Mr. President, if I may say so, that the Presi¬
dent of an Association that has Just adopted canons of ethics
ought not to break the rules at the first opportunity he gets.
He ought to exercise at least as much restraint as the Commis¬
sion does and wait for a month or Wo before getting around any
new rule it adopts. "
Mr. Caldwell declared that the "Mo speeches will be
tolerated" edict was not a rule but "Just a nious hope on the
part of Ben Fisher, Just like the mileage frequency separation
tables. That’s where the statutory standard of ’convenience'
comes in. It's something convenient to use so you can decide
a case either way. "
"I realize the mileage-frequency separation tables
aren's rules; they're Just a dream of Andy Ring’s", Mr. Little-
page replied. "But we have a positive rule against speeches.
If you're going to insist on a speech, you at least should
label it ’Experimental Special Authorization' and employ a
directional antenna that will suppress the noise in our direc¬
tion. That would bring it within the rules that allow stations
to operate with 5 kw. on channels where the maximum power is
1 kw. or with 500 kw. on channels where the maximum power is 50
kw. Those are real experiments. They're experimenting to see
how long they can get away with it. "
Here the radio announcer came in with: "This program
is brought to you through the courtesy of Broadcasting and
Variety. All lawyers should be supplied with our advance sheets
on Commission decisions. This is special bargain day. For sale
cheap, two large columns of linotype on the appointment of Berger
as Secretary of the FCC. "
Duke Patrick enlightening Louis Caldwell on the changes
which had taken place at the FCC since the latter had been
employed there explained:
"When you were there, the Engixieering Department used
to do the Law Department's work, with a small side-line of
engineering, and vice versa. You always knew where you were at
because things were exactly opposite to what they were supposed
to be. Not that's all changed. The Engineering Department
spends all its time on something it calls social and economic
factors - you wouldn’t understand it any more than they do.
They're getting up a new set of social and economic slide-rules
so that Andy Ring, Assistant Chief Engineer, can go back on
the witness stand and devil the lawyers again. It's been years
since Andy has been a witness; he’s been afraid to testify with¬
out one of the new slide-rules. That isn't all. They're
gradually doing away with hearings such as you old fellows are
accustomed to. They call them 'informal engineering conferences'
now. "
7
5/11/37
Commissioner Irvin Stewart came in for one from the
lawyers when Frank Scott inquired: ’’You mentioned Commissioner
Stewart. Aren't there two Commissioner Stewarts? Which one
do you mean?”
"You are right" , Patrick reolied. "There is Commis¬
sioner Stewart Concurring and Commissioner Stewart Dissenting.
But you must remember that this is Reappointment Year. That’s
the year in which they make speeches at universities on what's
wrong with broadcasting. Next year it'll be just plain Com¬
missioner Stewart, working on a decision in the Order No. 12
cases. "
"The Law Department is doing everything except law, "
Patrick complained. "The right wing is busy trying to find
reasons for the decisions the Commission has already made, and
the left wing is busy in a pitched battle with the examiners.
I should add, however, that General Counsel Gary has already
equalled the record set by Commissioner Thad Brown when he was
general counsel in the number of court cases he has actually
argued. " ___
XXXXXXXXXX
BUREAU OF STANDARDS ANNOUNCES NEW RADIO TRANSMISSIONS
Dr. J. H. Dellinger, Chief of the Radio Section, U. S.
Bureau of Standards, has disclosed that the Bureau would shortly
inaugurate a more extensive standard frequency service from its
station WWV.
The Bureau for many years has been broadcasting stand¬
ard frequencies. These have included standard carrier frequen¬
cies and a standard 1000 cycle modulation, all accurate to better
than one part in 5,000,000.
According to Dr. Dellinger, the new service will in¬
volve extensions both of frequency and of time. The Bureau
also expects to send pulses at intervals of orecisely one
second, and a standard of musical Ditch of 440 cycles per second.
Announcements of ionosphere conditions, based on the Bureau's
current measurements will be added to the standard frequency
broadcasts on one day each week, it was stated.
These announcements will furnish a guide to radio sta¬
tion operators and others for the selection of frequencies to be
used in long distance radio transmission, according to Dr.
Dellinger.
XXXXXXXX
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5/11/37
END OF INTERNATIONAL STATIC SEEN BY ENGINEERS
Glimpses into the future of radio, when reception
from foreign countries and . world- wide telephony may be clear
as crystal and quite free from the bugaboo of static and noise
as it now affects international communication, were presented
yesterday (Monday) at the first technical session of the Insti¬
tute of Fadio Engineers' silver anniversary convention at the
Hotel Pennsylvania, New York City.
A novel radio receiving system that is aimed electri¬
cally into the sky to catch the same program arriving simul¬
taneously over a different ethereal pathways from a foreign-
sending station was discussed by H. T. Friis and C. B. Feldman
of the Bell Telephone Laboratories, according to the New York
Times.
Sound records of programs from England, over exist¬
ing transoceanic telephony circuits and the new system, when
compared before the audience of more than 500 radio experts from
all parts of the country left no room for doubt as to the clar¬
ity and freedom from noise on the "steerable antenna", as it is
called.
To steer the fixed wires by electrical means, an
operator turns a single knob on a control panel like a large
radio set. Outside, stretched for several hundred feet over
the countryside, the wires "point themselves electrically"
toward the most powerful parts of the arriving program. Static
and noise existing near or outside the actual wave is thus
avoided.
Develooment and use of short-wave transmitters in
liberating broadcasting at its source from the necessity of
microphone lines was described by W. A. P. Brown, Assistant
Development Engineer, and George 0. Milne, Eastern Division
Engineer, of the National Broadcasting Company.
An ingenious "commutator", the heart of a diminutive
radio-sending unit sent miles into the upper air attached to
sounding balloons to study humidity, temperature and atmospheric
pressure at great altitudes, was described by H. Diamond, W. S.
Hinman, Jr. , and F. W. Dunmore of the National Bureau of
Standards, Washington.
The commutator is a novel arrangement of resistances
and contacts that vary witn the changes in the upper air which
the experimenters desire to explore; a veritable temperature,
pressure or humidity "microphone" causing a miniature radio
station in the balloon to vary its wave, which, when recorded
on the earth, reveals the temperature, pressure and humidity
in terms of frequency changes.
XXXXXXXX
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5/11/37
STONE TO 01 VE I. T. & T. FULL TIME
Ellery Stone, who was in charge of all International
Telephone and. Telegraph radio communication activities as well
as Operating Vice-President of Mackey Radio, will hereafter
devote all of his time to the radio communication activities
of the I. T. & T.
Admiral Luke McNamee, President of Mackay Radio
Company, will take over active operating charge of the Mackay
Radio Companies.
XXXXXXXXXX
GUATEMALA BUYS STATION APPARATUS FROM RCA
President Jorge Ubico, of Guatemala, has approved
the contract for the purchase of a long and short wave broad¬
casting station apparatus from the Radio Corporation of America,
according to a New York Times news di snatch.
The contract provides for training three Guatemalan
students at the Camden factory and study at the National Broad¬
casting Company.
XXXXXXXXXX
BASEBALL "MONOPOLY" UNFAIR TO RADIO, SAYS CANNON
Representative Raymond J. Cannon ( D. ) , of Wisconsin,
last week proposed a House investigation of what he termed a.
"monopoly" governed by professional baseball club owners which
is working to the detriment of certain radio stations.
Cannon, in his resolution, said that a. closed monopoly
existed among all owners of baseball clubs and that labor condi¬
tions existed in baseball which would not be tolerated in any
industry in the United States.
"The large basebell clubs through restricting agree¬
ments with the large telegraph companies", he said, "prevent
such telegraph companies from giving to the public the results
of baseball games "through general service to all radio stations
and cause such telegraph companies to violate their duty as
interstate public utilities and cause discrimination against
certain radio stations and thus prevent large numbers of the
public from getting baseball results through their local sta¬
tions. "
XXXXXXXXXX
- 10 -
5/11/37
CBS ELECTS THREE NEW MEMBERS TO BOARD OF DIRECTORS
The Columbia Broadcasting System, Inc. , this week
announced that Edward Klauber, Executive Vice-President, and
Paul W. Kesten, and Mefford R. Runyon, Vice-Presidents, were
recently elected Directors of the corporation.
XXXXXXXXX
SPECIAL AMPLIFIERS DEVELOPED FOR CORONATION
For the first time in the history of Great Britain,
the 8,000 distinguished visitors at the Coronation of King
George VI and Queen Elizabeth at Westminster Abbey on May 12th,
will be able to hear every word of a Coronation ceremony. This
will be made possible by the installation of a specially design¬
ed public address system which has been developed and will be
installed by the Standard Telephones and Cables, Ltd. , an
associated company of the International Telephone and Telegraph
Corporation.
The interior of a Cathedral presents great difficul¬
ties in the installation of amplifying equipment because of
the reverberation in the building, but a novel system, designed
for this occasion, overcomes these technical difficulties. In
place of a limited number of horn loudspeakers transmitting at
a high energy level, no less than 120 moving coil loudspeakers
will be used, but at a low intensity. This method of distribu¬
tion, coupled with the damping due to drapes and the huge
congregation will reduce the reverberation effect to a point
where it is not troublesome, and thus permit each member of this
gigantic congregation to hear distinctly.
The public address system will consist of five power¬
ful amplifiers, each of 30 W. capacity, which will be used to
amplify the music and speech picked up by microphones located at
strategic points. These amplifiers will transmit the sounds to
the 120 loud-speakers which will be fastened to pillars or placed
behind the fabric coverings on the wells or the stands so as to
be invisible to the congrega tion. The loud-speakers are of snecial
design giving a wide range of reproduction . About a mile of wir¬
ing is used to connect them to their amplifiers. They will be
mounted in teak boxes. Teak is used to limit the fire hazard.
Each amplifier will feed an entirely separate group of
loudspeakers so that there will be actually five separate sound
systems in operation. Spare amplifiers will be ready for use on
any of the five sections in the extremely remote event of a
breakdown.
XXXXXXXXX
- 11 -
5/11/37
ROOSEVELT ORDERED FCC APPOINTMENT, SAYS MALLON
"What papa said, went", wrote Paul Mellon, columnist,
with regard to the FCC secretaryship last week. "The Farley
candidate for the secretary-ship of the Federal Communications
Commission still is with the Democratic National Committee,
hoping for a job in the Commerce Department. The successful
candidate for the post was Thomas J. Slowie, secretary to
Representative William 3. Jacobsen, of Iowa. His selection was
dictated by the President's son and secretary, James poosevelt.
He was paua's candidate."
XXXXXXXXXX
MARKET FOR RADIO SETS IN VENEZUELA HAS EXPANDED
Every inhabited section of Venezuela is now within the
range of one or more of the country's broadcasting stations and
the more powerful of these are heard regularly in foreign
countries, according to a report to the Department of Commerce
from its office at Caracas,
The United States supplied approximately 95 per cent
of radio receiving apparatus imported into Venezuela during the
years 1934 and 1935, the report states, and from 1931 to 1934,
it supplied between 80 and 90 per cent of the total imports of
all radio apparatus. The Netherlands is the United States'
greatest competitor in this market for receiving sets.
As to transmitting sets, tubes and parts, all imports
during 1935 came from the United States, the report points out.
Owing to exchange rates particularly the revaluation of the
bolivar during recent weeks, there should be a drop in retail
prices for imported goods from which American exporters of radio
apparatus should profit.
XXXXXXXXXX
A complete, detailed, and up-to-date compilation of
primary listening a.rea market data on six of its owned and operat¬
ed stations has just been made available by the Columbia. Broad¬
casting System to advertisers interested in local and national
spot campaigns. The report was preoared for CBS by Buckley -
Dement & Company and the material is expected to be of particu¬
lar value to manufacturers introducing new products. In addi¬
tion to a breakdown of the buying population, thirty-six classi¬
fications of retail outlets are listed, by counties. Da.ytime
and nighttime data are both included.
XXXXXXXXXX
12
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL-
INDEX TO ISSUE OF MAY 14, 1937.
Not for Publication
W,, isg.
*1
wr
may 1 7 m,
MiiaSlfiliMiifcj
Radio Receivers Seen By Harbord As Targets In War . 2
Television Broadcast Of Coronation Successful . 4
Lawyers Josh Havana Radio Conference . 5
21-Year-Age Limit Proposed For Station Operators . 7
WLS Hindenburg Recording Radio’s Biggest Scoop . 8—
Mackay Appeals From FCC Ruling In Oslo Case . 8
Freedom Of Radio To Be Guarded, Says Brown . 9
Educators Held To Blame For Loss Of Stations . 9
Trade Notes . 10
Airline Terminals To Use 5,000 Watts Radio Power . 11
Pannill Awarded Medal By Belgian King . 12
Television Views Enlarged In Show For Engineers . 12
No. 1028
-I -
V.-t .
RADIO RECEIVERS SEEN BY HARBORD AS TARGETS IN WAR
The 33,000,000 radio receiving sets in this country
would constitute so many targets for enemy broadcasting sta¬
tions in case of a war involving the United States, according
to Maj. Gen. James G. Harbord, Chairman of the Board of the
Radio Corporation of America, and former Chief of Service of
Supply of the A. E.F.
A detailed account of how the radio industry could be
mobilized in case of war was given in a paper prepared by
General Harbord in Washington this week. General Harbord, who
was absent due to his wife’s illness, was awarded the Medal of
Merit of the Army Ordnance Association.
Maj. Gen. Robert C. Davis, former Adjutant General of
the Army, read General Harbord’ s paper. The medal was put in
the custody of Col. Frederick H. Payne, former Assistant
Secretary of War, and will be presented to General Harbord later.
"During the World War, the only use for radio was for
point-to-point communications", General ^arbord1 s paper said.
"There was no broadcasting as we know it today. Broadcasting
was a ’war-baby’ - and the baby has now come of age. Many of
the nations of Europe today are demonstrating that propaganda
broadcast by radio - both for home and foreign consumption - has
become an important instrument of modern warfare.
"In case of war all broadcast receiving sets in America
will become targets for enemy transmitters, whereas our broad¬
casting stations will be carrying our own story to the rest of
the world. The series of broadcasts from Spain, available to
American short-wave listeners, is an indication of what may be
expected. Our geographical isolation vrould be a help, for our
home receivers are distant from potential enemies. Fortunately,
the improbability of effective air raids makes unnecessary the
underground studios the British Broadcasting Company is planning
for London.
"Radio personnel is really a phase of its industrial
mobilization. Quite aside from the supply of excellent apparatus
and services the growth of American radio has created, is the
great body of expert technicians. The Naval Communication
Reserve and the Signal Corps Reserve are proud of the proportion
of men they have who ane employed in the radio industry or are
outstanding licensed amateurs. Approximately 600 men in the
Radio Corporation of America services have joined communication
reserves, entirely on their own initiative. Other radio com¬
panies could doubtless report a similar situation. Those men
- 2 -
5/14/37
know radio technique, or the feel of a radiotelegraph key as
well as the Minute Men knew the touch of a flint-lock’s trigger;
better, perhaps than Paul Revere - silversmith - knew the feel
of reins and spurs.
"The war emergency value of the nation-wide group
our radio era has made skillful and enthusiastic, is not to be
measured solely by the number now in the Reserves. Here is a
potential source of the best possible radio communication
recruits. The latest FCC report shows 46,850 licensed radio
amateurs in the United States - amateurs whose ability and
response to civic duty has become traditional in storm, fire,
and high water.
"The average age of the American radio amateur is
around 32 years. He frequently is in some branch of commercial
radio or engineering. To obtain his license and get his name on
the FCC roll in Washington, he has passed a stiff examination
on the International Morse Code, radio technique, and theory.
"The Navy, working closely with civilian operators,
estimates that in a national disaster it could mobilize a net¬
work of 2,500 amateur stations within two hours. The Army
enlarges its contact through the Army Amateur Radio System,
which includes 1,394 operators selected for proficiency.
Supervision is exercised by the Chief Signal Officer. Member¬
ship is by invitation, without physical examination, pay, or
gift of equipment, but with no agreement to serve in war.
Members are actuated by eagerness to be ready for disaster
relief work, and by their ambition to improve by weekly train¬
ing in Army methods of radio operation.
"I am sure the spirit of radio men is typical of those
in all American industry. Matching the devotion of the little
band of pioneer technicians who served the youthful radio of
the World War, there are many in the large group, that have
proudly helped it through adolescence, who ?/ould meet another
emergency with the developed radio of the present.
"Radio is today - and probably will always be *• the
sole means of rapid and reliable two-way communication between
elements in the air and on the water, with one another and with
points on land. It requires no stringing of wires, sometimes
under shell fire. In our Army’s motorization and mechanization,
radio is indispensable to command coordination. Even in slow-
moving situations it is the main reliance when wire lines go out.
"Measuring what our radio industry can do to provide
indispensable equipment for military needs is one task of the
Army and Navy in their industrial mobilization planning. They
are performing the task creditably. Each is cooperating with
the other, and with the radio industry. They are learning where
they can get radio equipment quickly, with a minimum of over¬
lapping; what kind they can get; how much; and ho?/ fast. "
XXXXXXXXX
- 3 -
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5/14/37
TELEVISION BROADCAST OF CORONATION SUCCESSFUL
The television broadcast of scenes of the coronation
procession - pioneering in outdoor "pick-ups” - proved highly
successful today, considering the experimental phase of this
art, according to a London correspondent of the New York Times.
"It was estimated that 50,000 tele-viewers in an area
of 7,500 square miles saw and heard simultaneously marching
scenes, images of Queen Mary and Princesses Elizabeth and
Margaret Rose in their coach and close-ups of the King and Queen"
he wrote.
"A reviewer in The Times of London commented that
•the supreme trial has brought a notable triumph1, despite the
fact that the image bands sometimes appeared ’thinned’ and
reflections of light from the glass panels spoiled some of the
attempts to make close-ups of occupants of the carriages other
than those recorded.
"Today’s experiment was sponsored by the British Broad¬
casting Corporation. Television experiments here believe its
success proves the practicability of such broadcasts except for
the extraordinary expense involved, as the areas covered are
very small and the installation of cables to carry the ’pick-ups'
and relay the broadcasts between stations costs about LI, 000 a
mile. A cable was laid for the coronation broadcast from Alex¬
andra Palace, the studio site, to Hyde Park Corner. A trunk
line connecting London and Birmingham is now being constructed.
A television receiving set of good quality costs L80.
"Three television cameras were employed. They util¬
ized no films; the views were picked up directly from the pro¬
cession as it passed over the route to and from Buckingham
Palace and Westminster Abbey. The electrical optical devices
made possible an instantaneous transmission of the views, as
the microphone does of sound.
"In selecting the sites for the television cameras,
care had to be exercised so that the electrical ’eyes’ would be
pointing away from the sun as the shots were made, lest fogging
of the views result. It was deemed necesse.ry to keep the cameras
within 100 yards of the mobile control vans and stand-by trans¬
mitters to guard against emergencies. In addition the positions
of the cameras had to be placed so they would be safe from the
crowd. "
XXXXXXXX
- 4 -
\
o/iVoY
LAWYERS JOSH HAVANA RADIO CONFERENCE
Official circles are still laughing over the "touch¬
ing up" the newly formed Federal Communications Bar Association
gave to radio affairs at their recent dinner. One of the things
which came in for a humorous toasting was the Havana radio con¬
ference, This was when Louis Caldwell, President of the Associa¬
tion asked John W. Guide r what had been accomplished at Havana.
"First, they decided they liked rum and soda better
than they liked Daiquiri cocktails", Mr. Guider replied with a
very straight face. "Second, they decided they liked Sans Souci
and the Casino and Sloppy Joe's and every form of rhumba, and
third -
"I mean, what did they decide at the Conference, Mr.
Guider?"
"Oh, you don't understand", Mr. Guider continued ser¬
iously. "That wasn’t a Conference. They didn't have time to
decide anything. That was just a preliminary special meeting
to discuss tentatively what subjects should be studied pro¬
visionally by the various countries as a possible basis for
what might be discussed at another meeting next November. You
see, they did agree they all wanted to come back to Havana
again and they got the revolutionists to agree to hold off until
after they could have another meeting. "
"So that was it. "
"Yes. You see, it was like this. Canada starts in
by saying, 'We want 15 clear exclusive channels; ' then Mexico
says 'I'll take 23' and Cuba says, 'I only want 5,' which makes
more clear channels than there is. Now Tam was still able to
add and he's a great diplomat. So he says to Canada and Mex
and Cuba, he says, 'I don't care if you take all our clear
channels except two because they're a headache anyhow - every¬
body wanting to duplicate on them - but you've got to let me
have two, one on the Mexican border and one on the Canadian
border so as to advertise for tourists to come and see the ruins
in this country when the present Administration gets through
with it. But no, the other countries said you can't have two
if you're going to be friends with us and Craven (Chief Engineer
of the FCC) says, well , you can have all the clear channels
because I'm not sure there'll even by any ruins left but you
can't have the regionals and loca„ls too because I've got to
take back something for the Commission to regulate. So they
just had another drink and that's where the matter stands."
The lawyers then turned their attention to the flock
of $7,500 a year "directors", generally understood to be hee_vily
sugar-coated political jobs at the FCC. Horace L. Lohnes said
a perplexing question wan wha.t the duties of these directors
were. "There's a Broadcast Director, and a Telegraph Director,
and a Telephone Director. We can't find out what they are
there for or what we should see them about. " Mr. Lohnes also
wanted to know about the Connery resolution "to investigate the
radio industry and whitewash the Commission. "
5
5/14/37
John M. Littlepage proposed the admission of Harry C.
3utcher and Frank M. Russell, Washington Vice-Presidents of
Columbia and National Broadcasting Company respectively as
members of the Communications Bar Association.
asked.
"Are they lawyers, Mr. Littlepage?" Mr. Caldwell
"No, but they get by with much more than any lawyer
does", Mr. Littlepage replied. "I also move the admission of
former Commissioner Harold A. Lafount and Emil Hurja for their
legal services in getting so much for Arte Bulova. "
"There's no need for voting on them", Mr. Caldwell
said. "Their right to become members is clear. Any more?"
"Yes, Mr. President, I have a long list of engineers
here: Jansky, Gillett, Chambers, McNary, Bailey, Barron, Page,
Codley, Wilson and all the rest of them. There is also Bond
Geddes and Premier Jack Baldwin. We might as well recognize
these fellows and take them in. You can't stop them from
practicing law. "
Whereupon tlio radio announcer broke in with "This
program comes to you through the courtesy of 'Jimmie Roosevelt's
Busy Corner. ' Odd jobs traded for Guaranteed Votes on the Court
Inflation Plan, For a testimonial as to our effective work,
we refer you to the Postmaster General." This referred to
President Roosevelt, through his son, James, supplanting the
Farley candidate for Secretary of the FCC in favor of the
Roosevelt candidate, Thomas J. Slowie, of Iowa, who is reported
to have been put in through a Supreme Court trade made by the
Administration with the Iowa delegation.
When Mr. Littlepage arose to make a point of order,
he was admonished by Mr. Caldwell to "state the point to the
recording machine and not to the Commission or any Examiner. "
Mr. Littlepage and Phil Hennessey, of NBC, got into a wrangle
as to which of them should be allowed to make a speech and the
former moved that he should be the one.
"Before passing on your motion", Mr. Caldwell said,
"I must find out if you are eligible to make a speech before
this learned gathering. You must answer two questions. First,
are you owned, controlled, leased, managed or operated by a
newspaper or other periodical? Second, are you connected, or
do you plan to be connected, by wire or wireless with the key
station of any network?"
Getting around to "unfinished business", a dig at the
Communications Commission for being so far behind in its work
was gotten in as George Sutton reported:
"First, I think, is the Brooklyn cases. They are only
four years old. You will remember they were continued once
because of an indispensable witness who hurt his knee six months
before the hearing date and who hasn't been seen down here since
then. Sever of the witnesses and lawyers that were originally
in these cases are either dead or dying and it would be some
6 -
5/14/37
measure of satisfaction to them to know that their work was not
in vain. Then there's the Order Mo. 12 cases. It is Just two
years ago tonight that those hearings finished and the Tele¬
graph Division kept about forty lawyers busy writing briefs
which had to be submitted by July 9, 1935, in order to avoid
any delay. There are some incidental matters. For example,
the Globe Wireless case. I am told that the Telegraph Division
has a trunk load of motions and petitions from Duke Patrick
begging them to decide the case so he can get his fee. Then
there’s the June 15th hearing and the October 5th hearing.
”0n the other hand, a great deal of progress has been
made. The Broadcast Division decided the Kalamazoo case on
its fourth birthday, while, in a burst of speed, the Telegraph
Division decided the Aeronautical Radio case in just a few
months more than a year after it was heard. This is really
remarkable, Mr. President, in view of the way in which the two
members of the Telegraph Division have been helping out the
Broadcast Division during the past year. Of course, nobody
expects the Telephone Division will ever finish the investiga¬
tion of A. T. & T. They got good life jobs.”
XXXXXXXXXX
CORRECTION
It is regretted that a mistake was made in crediting
the lines to former Representative Frank D. Scott referring to
Commissioners George Henry Payne and Irvin Stewart in the account
of the Federal Communications Bar meeting in the last issue. As
a matter of fact, it was Paul D. P. Spearman who carried
through this part of the skit.
The lines were originally written for Representative
Scott but because of an important law case he was trying that
day, he was unable to take the time necessary to prepare for
the role and his part was assigned to Mr. Spearman. Although
Mr. Scott was present at the banquet, he took no part in the
Gridiron-like stunts.
XXXXXXXXX
21-YEAR-AGE LIMIT PROPOSED FOR STATION OPERATORS
A bill which would limit the issuance of radio sta¬
tion operator licenses to United States citizens 21 years of
age or older was introduced in the Senate this week by Senator
Sheppard (D. ), of Texas. The measure, which amends Section
303(e) of the Communications Act, authorizes the Federal Com¬
munications Commission to waive the age limit provision when¬
ever amateur operators are concerned.
XXXXXXXXX
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WLS HINDENBURG RECORDING RADIO’S BIGGEST SCOOP
As tine goes on, the feat of Station WLS, of Chicago,
recording the heart-rending shreiks and terrifying sounds at
the burning of the "Hindenburg" assumes historic proportions
and seems to become more and more remarkable.
WLS sent Engineer Charles Nielsen and Announcer Herb
Morrison to Lakehurst to make electric transcription of landing
of "Hindenburg” to record voice of ship’s officers and passen¬
gers merely as a matter of news interest, never realizing that
such a tragedy would occur. The accident happened as the
recording was being made and announced. Although- badly shocked
and broken up, the engineer continued the recording. It was
the biggest scoop in radio broadcasting history. This record¬
ing was broadcast by WLS several times last Friday and Saturday,
and no doubt will be repeated because of the great public demand
to hear it,
"In my opinion, this was the most dramatic broadcast
of all time". Commander E. F. McDonald, Jr., of Chicago, declar¬
ed. "It even overshadows King Edward’ s abdication speech."
XXXXXXXXXX
MACKAY APPEALS FROM FCC RULING IN OSLO CASE
Appealing from a recent decision of the Federal Com¬
munications Commission denying it a direct radio-telegraph cir¬
cuit between the United States and Oslo, Norway, Mackay Radio &
Telegraph Co., Inc., yesterday (Thursday) petitioned the United
States Court of Appeals in Washington to reverse the ruling and
order the FCC to grant the license.
In its complaint, Mackay Radio said denial of its
application for a license left the field wholly under the control
of R. C.A. Communications, Inc., which was described as having a
monopoly.
The Appellate Court was told the FCC opinion denying
the license was arbitrary and capricious in many respects and
as such was subject to review by the higher courts. It was
announced the case would be taken to the United States Supreme
Court in the event the Appeals Court does not direct the Commis¬
sion to grant the permit.
Listing more than a score of reasons wherein the Com¬
mission had erred, Mackay Radio, through Donald Richberg and
associated counsel, asserted the company had exhausted all its
remedies before the Commission and had to seek "relief" in the
courts. The final ruling from the Commission was entered April
24 and it is from that the appeal is being sought.
XXXXXXXX
'£
5/14/37
FREEDOM OF RADIO TO BE GUARDED, SAYS BROWN
M Constitutional guarantees of freedom of speech by
radio are to be guarded as carefully as the precious freedom
of the press and our present Federal regulation of communica¬
tions has been conceived with this ideal in mind”, Commissioner
Thad H. Brown, member of the Federal. Communications Commission,
told students of the College of Law at Western Reserve Univer¬
sity, Cleveland, Ohio, this week in an address on "The Federal
Communications Law”.
"Federal regulation of communications in the United
States may be said to have had its beginning with the passage
by Congress in 1866 of the Post Roads Act", he said. "The
Wireless Ship Act of 1910, the regulatory Act of 1912, the
Radio Act of 1927 and the Communications Act of 1934 constitute
the legislation progressively enacted by Congress for the broad
regulation of all interstate and foreign electrical communica¬
tion. "
Characterizing radio as a modern Stentor whose voice
is heard the length and breadth of the land, Commissioner Brown
hailed radio as a great new scientific wonder and said that our
greatest error would be not to fully appreciate and make use of
the all-encompassing powers which the radio has made possible.
"Legal problems of communication are not really new,
nor do they demand an abrupt break with the past", he added.
"Careful consideration of the law of communications if of the
utmost importance and there is no more pressing question in the
whole fabric of our civilization than the determination of wise
and judicious control of this socializing instrument. "
XX X X X X X X X
EDUCATORS HELD TO BLAME FOR LOSS OF STATIONS
Educators themselves were held to blame for the loss
of 100 educational broadcasting stations by S. E. Frost, Jr. ,
of the National Advisory Council on Radio Education, in an
address last week at the annual educational radio gathering at
Columbus, Ohio.
Mr. Frost pointed out that of the 203 licenses grant¬
ed educational organizations since 1921, 81 percent were allowed
to lapse or were transferred.
XXXXXXXXX
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5/14/37
TRADE NOTES
Approval of the request of WJAR, Providence, R. I. ,
for a permit to increase its daytime power from 1 KW to 5 KW
was recommended to the Federal Communications Commission this
week by Examiner Ralph L. Walker0
The Metropolitan Radio Co., Inc., 940 F St., N.W, ,
Washington, D. C. , has agreed to cease representing in advertis¬
ing or in any other manner that its radio sets have a designated
"regular price" or "former price", when, in fact, such designat¬
ed price is fictitious and much in excess of the price at which
the sets are regularly sold in the usual course of trade,
according to the Federal Trade Commission. The company also
will stop using the words "half-price sale" to imply that the
radio sets to which the words refer are offered for sale at a
price but one-half that at which the sets are usually sold,
when such is not a fact.
Exclusive rights to broadcast eight of the country's
outstanding athletic events - the four biggest tennis matches,
golf's three greatest tournaments and the Kentucky Derby -
were signed by the Columbia Broadcasting System. Ted Husing,
Columbia.' s ace sports announcer, will broadcast these
events over CBS during May, June, August, September and
October of this year, and in May, 1938.
A favorable report was filed with the Federal Com¬
munications Commission this week on an application by Juan
Piza, of San Juan, Puerto Rico, for a construction permit to
erect and operate a new broadcasting station, using 1500 kc.
with 100 watts nighttime and 250 watts daytime, unlimited hours.
The second annual River Vale Radio Golf Tournament
will be held Friday, May 21st, at the River Vale Country Club,
New Jersey. Artists from the major networks including the
Columbia Broadcasting System, the National Broadcasting Company,
Mutual and Inter-City will be on hand to compete for the silver
trophy on which Columbia, winner of last year's tournament, now
holds one leg. Three wins are necessary for permanent possession.
The United States Circuit Court of Appeals in New
York this week set aside an award of $115,968 granted in the
Federal District Court in Brooklyn last year to Tess Garde 11a
on her complaint that the Nationa.1 Broadcasting Company had
allowed an imposter to broadcast as "Aunt Jemima", when as a
matter of fact she had been using that name for years on stage
and air, and was the only one who had a right to use it.
10 -
5/14/37
Negotiations between spokesmen for strikers and
officials at the Philadelphia plants of the Philco Radio &
Television Corporation and the Philadelphia Storage Battery
Co. were still under way on Fridpy of this week. No develop¬
ments had occurred, it was reported.
Examiner P. W. Seward this week recommended to the
Federal Communications Commission that KDON, Del Monte, Calif. ,
be granted authority to transfer from 1210 to 1400 kc. and
increase its power from 100 watts to 250 watts nighttime and
1 KW daytime/ At the same time he advised denial of the appli¬
cation of the Salinas Newspapers, Inc., Salinas, Calif., for
a permit to build and operate a station on 1390 kc. with 250
watts daytime.
The American radio, free of government control . or
domination, is a tremendous weapon against the fear and ignor¬
ance which destroy democratic forms of government, Lenox R.
Lohr, President of the National Broadcasting Company, declared
yesterday (Thursday) in a.n address before the annual convention
of the American Red Cross.
"It is in this field of freedom of expression1', said
Mr. Lohr, "that our American system finds its greatest advant¬
age over those of most foreign countries. That you cannot have
such freedom of expression by a government controlled or
dominated radio is amply demonstrated bi*1 the fact that such
freedom does not exist in any nation where such domination pre¬
vails. " _
Perhaps in the same boat with many another, Station
WMAL in Washington advertised that they would rebroadcast a
recording of the Coronation ceremonies last Wednesday night.
The station duly received, as promised, the recordings from
the New York office. The transcription ran exactly seven
hours.1 Even though they were rushed to Washington by airplane,
it was impossible for the WMAL sta-ff to sort out the pertinent
portions in time for the 10 o* clock period. Rather than present
the full seven hours, with awkward interpolations and explana¬
tions, the whole broadca.st was called off.
XXXXXXXXXXX
AIRLINE TERMINALS TO USE 5,000 WATTS RADIO POWER
Use of 5,000 watts at communication division terminals
of airlines was authorized this week by the Federal Communica¬
tions Commission in anticipation of the use of larger planes,
making longer flights in the near future. G-round stations are
now limited to 1,000 watts. The new rule specifies that such
power may be used "on condition that the operating frequency is
maintained within 0.02 percent of the assigned frequency and
that suitable filters are embodied in the equipment to limit
the frequency band of emission to five kilocycles. !!
The new maximum power will double the ground sta¬
tions' signal strength, according to Major B. L. White of the
Commercial Broadcasting Division of the Commission.
xxxxxxxxx
■ ■
5/14/37
PANNILL AWARDED MEDAL BY BELGIAN KING
Charles J. Pannill, President of the Radiomarine
Corporation of America, a Fellow in the Institute of Radio
Engineers and a member of the Society of Naval Architects and
Marine Engineers, was awarded the medal of Chevalier de I'Ordre
de Leopold by H. M. the King of the Belgians in an informal
ceremony in the RCA Building, New York City, Thursday. The
decoration was presented by Henry Mali, the Belgian Consul.
The award was made by decree of King Leopold in recog¬
nition of Mr. Pannill’s long continued activities in the promo¬
tion of efficient radio communication at sea. Mr. Pannill for
several years has been an active member of the Comite Inter¬
national Radio-Maritime with its Scientific Centre at Brussels,
which has been instrumental in securing many improvements in
the radio service and equipment on foreign and American ships.
Two years ago he was elected Executive Vice-President of the
Comite International Radio-Maritime.
XXXXXXXX
TELEVISION VIEWS ENLARGED IN SHOW FOR ENGINEERS
Foreshadowing the day when television may be used on
a large scale for public entertainment, a ’’projector gun”,
which enlarges images from a few inches to eight or ten feet,
or 2,600 times their original size, was demonstrated this week
in New York City at the closing session of the Institute of
Radio Engineers.
The demonstration was regarded by the radio engineers
as indicative of what the future may hold for television when
the electron projector gun and other devices are applied to
enlarge moving objects. When projected on a screen three by
four feet, the brightness of the vie?/ was said by those who
demonstrated the equipment to approximate closely the brilliance
of the average home movie. When enlarged to the eight-by-ten-
foot size, the view, which was the head of a girl, ?/as clear to
persons nearly 100 feet a?/ay from the screen. The picture was
of greenish hue, but the contrasts were such as to evoke loud
praise from the radio men.
Dr. R. R. La?/, ?/ho discussed and demonstrated the
device, which he called a "high current electron gun for projec¬
tion kinescopes”, emphasized that the "gun” was in the early
stages of its development and far from the form in which it may
later appear as an integral part of a television receiver for
home or theatre. He said that it was "yet too early to say
if this is the Bgun* which will be used in the final television
projection machine. 5 and further emphasized that the demonstra¬
tion was not a radio or television display but merely a labor¬
atory test designed to show the projection properties of the
equipment. The picture enlarged ?/as 1.8 by 2.4 inches. No
flicker was visible on the screen.
"Projection is only a sma.ll part of the complete tele¬
vision problem or system", Dr. La?/ concluded. "What we have
shown here is only the 'gun' and what it will do with a still
picture. ”
XXXXXXXX
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
' q9^
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C O N F I D E N T I A L — Not for Publication
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MAY i i:
A
INDEX TO ISSUE OF MAY 18, 1937
Television Today For Suckers Only, Says McDonald . 2
Coaxial Cable Tests Successful, Engineer Reports . 3
Radio Carriers Meet Cut In Telegraph Rates . 4
Five New Stations Recommended By Examiners . 5
Indian Potentate Buys Costliest Radio Sets . 5
Senate Orders Record In RCA-Mackay Oslo Case . 6
Reappointment Of Commissioner Stewart Expected . 7
Publisher Organs Differ On Radio Role At ,,Hindenburg" . . 7
Trade Notes . 8
Iowa Law Protects Stations From Libel Suits . 9 *
China Plans Development Of Radio And Telephone Communications9
Walker, Head Of FCC Hearing Section . 10
I. T. & T. Income For 1936 $1,500,000 Above 1935 . 10
Zenith Introduces New Line . 11
Nebraska Act Outlaws The A5CAP . 12-
"News Piracy1' Charged In Reply To Transradio Suit . 12-
No. 1029
May 18, 1937.
TELEVISION TODAY FOR SUCKERS ONLY, SAYS McDONALD
Talking before one thousand distributors assembled in
Chicago for the Annual Distributors’ Convention of the Zenith
Radio Corporation, Commander E. F. McDonald, Jr. , President of
the Company, voiced a strong criticism of what he said was "the
recent misleading wave of publicity, pretending to indicate
that television continues to be ’just around the corner,’"
"Television is still just around the corner for stock
salesmen only", declared Commander McDonald. "It is ’just
around the corner’ for the suckers who believe these salesmen
when they say that television is about to become an immediate
home practicality. Hundreds of thousands of dollars have already
been taken away from optimistic investors in television stock
schemes, and it is high time the public is told the truth. "
Commander McDonald further stated that television is
still a considerable distance away, called attention to the num¬
erous difficulties still standing in the way of placing a
television receiver in the average home and pointed out that
even with the finest of laboratory equipment, the experts have
been unable to project television more than a few miles through
the ether. In addition, he went on, any motor car operating in
the vicinity of a television receiver interferes at present,
with reception of the picture. Therapeutic machines used in
hospitals and doctors’ offices have the same effect. All these
troubles must be cured, he averred, before television becomes
practical in the transmission end, and as for the receiving end,
engineering is still a long way from its object.
"We began making our own television experiments a
considerable time ago", continued Commander McDonald. "In the
Zenith Laboratories we have a corps of expert television engi¬
neers, supported by the latest up-to-the-minute equipment. I
can tell you from first hand experience that the present machin¬
ery of television will have to be fundamentally altered and
greatly improved to give reasonable satisfaction. It is true
that laboratory equipment is sending ’pictures’ or eye views
for short distances, and they are being received with reasonable
clarity, but the difference between working with expensive and
complicated equipment in the laboratory and of manufacturing in
quantity an inexpensive home receiver, is tremendous. And even
were we able to surmount that difficulty, the unsolved problems
of transmission are still staring us in the face, "
2
5/18/37
Commander McDonald pointed out further that these
television experiments of his company reminded him of his
early experiments with short wave, and called attention to the
first long distance short wave voice broadcast which he made
from Donald 3. MacMillan's Arctic Schooner, the "Bowdoin",
anchored off the coast of Greenland in the harbor of Etah,
Greenland, within 11 degrees of the North Pole, to Lieut.
Commander Fred Schnell, who had been dispatched on the U.S.S.
"Seattle" to Tasmania, in the Southern Hemisphere, half way
around the world, to pick up the voices speeding through the
ether. Singing Eskimos were put on the microphone at that time,
and according to official navy reports made by Commander
Schnell, came through beautifully over such a long distance
for the first time in history.
"Our short wave broadcasts at that time", concluded
Commander McDonald, "were much more practical than any tele¬
vision transmissions in their present stages. That was
fourteen years ago and it took short wave reception ten years
to reach the home radio stage. Television may look for an
equal or comparable period of experimental development."
"The question of who is to pay for television enter¬
tainment, is another problem to be solved. No practical way of
linking advertising with the 'movies' has as yet been put into
practice, and it is problematical whether the advertiser of
the future can successfully link televised programs to his
commercial announcements. I don't say television is not coming.
I do say that in its present state of the art it is far from a
state of development where it can be placed into the homes of
the country. "
XXXXXXXXXX
COAXIAL CABLE TESTS SUCCESSFUL, ENGINEER REPORTS
Little has been heard recently about the coaxial cable
that was laid between New York and Philadelphia last year and
which was looked upon as a possible key to television trans¬
mission. E. I. Green, of Bell Telephone Laboratories, writing
in the May issue of the "Bell Laboratories Record", reports
that satisfactory progress is being made, nevertheless.
"Preliminary test conversations have been held over
the system, both between New York and Philadelphia and also over
a circuit looped back and forth at the terminals to give a total
length of 3800 miles. In general, the results thus far obtain¬
ed have been in accordance with expectations, and no insur¬
mountable barriers have appeared which would prevent the success¬
ful application of such systems in the future. Much work
remains to be done, however, before coaxial systems suitable
for general commercial service can be produced. "
XXXXXXXXXX
- 3 -
5/18/37
RADIO CARRIERS MEET CUT IN TELEGRAPH RATES
Simultaneous with an announcement by the Telegraph
Division of the Federal Communications Commission on Monday
that the principal telegraph companies had cut rates $3,000,000,
R.C.A. Communications, Inc., and the Mackay Radio & Telegraph
Co. filed reductions under the wire carriers.
The radio rates are based on the same principle as
those of the telegraph companies, a FCC statement said, "except
that the charge is based on a minimum of 30 words, which charge
is the same as the charge for 25 words over the v;ire carriers,
and the additional groups are in units of six words instead of
five words each. "
W. A. Winterbottom, Vice-President and General Manager
of R.C.A. Communications, Inc. explained that the new night
letter classification, which is to be effective June 1st, is
revolutionary in that it permits the transmission by radio
telegraph of medium length letters, orders and other communica¬
tions now being forwarded by mail, at no greater cost than the
former night letter. The present night message classification
is to be discontinued.
The extent of these ra,te reductions is reflected in
the following examples: the cost of a 30 word night letter
between New York ajnd Chicago is lowered from 60/ to 42/, 100
words from $1.00 to 81/ and 120 words from $1.20 to 90/. From
New York to the principal Pacific Coast cities night letters
of 30 words are reduced from 96/ to 50/, 100 words from $2.00
to $1.43, and 120 words from $2.40 to $1.70. The night letter
rates between other cities served by the RCA system are pro¬
portionately reduced.
The new telegraph tariffs become effective June 1st
and will result in reductions to the American public of
$3,000,000 a year, according to estimates of the carriers. These
reductions came about as a result of the conference method of
regulation and provide for the lowest overnight rates in the
history of American telegraphy.
XXXXXXXXX
The total number of registered German owners of radio
receiving sets on February 1, 1937, amounted to 8,348,130, or
101,991 listeners more than at the beginning of the preceding
month, which represents an increa.se of 1.2 percent. Of the
total number of listeners, 621,589 were freed from the payment
of the monthly radio fee,
XXXXXXXXX XX
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5/18/37
FIVE NEW STATIONS RECOMMENDED BY EXAMINERS
Issuance of construction permits for five new broad¬
casting stations in scattered points of the country were
recommended to the Federal Communications Commission this week
by Examiners.
Examiner George H. Hill submitted a favorable report
on the application of the Asheville Daily News for a permit to
operate on 1370 kc. with 100 watts power, unlimited time. A
previous report, making the same recommendation, was filed last
Fall, but affidavits charging mis-statement of facts caused the
FCC to make a supplementary inquiry.
The Central Broadcasting Corporation, of Centralia,
Wash., was given a favorable recommendation by Examiner John P.
Bramhall. It asked for 1440 kc. with 500 watts power, unlimited
hours.
The third application was from the Okmulgee Broad¬
casting Corporation, of Okmulgee, Okla. It is for 1210 kc.
with 100 watts power, daytime operation.
Examiner Melvin H. Dalberg advised that the applica¬
tion of Allen T. Simmons, of Mansfield, 0. , for a permit to
operate on 780 kc. with 1 KW, daytime, be granted and that the
request of the Sharon Herald Broadcasting Co. , of Sharon, Pa. ,
for the same facilities be denied.
A new station for San Diego, Calif., for operation on
1200 kc. with 100 watts power, daytime, was recommended by
Examiner P. W. Seward. The applicant is the Pacific Acceptance
Corp.
Examiner Seward recommended that the application of
KADA, Ada, Okla. , for authority to increase its operating time
from daytime to unlimited be granted.
XXXXXXXXX
INDIAN POTENTATE BUYS COSTLIEST RADIO SETS
Two radio sets, believed to be the costliest ever con¬
structed, are on their way to India., destined for the palace of
the Maharaja of Patiala, according to the U. S. Trade Commis¬
sioner at Calcutta. They were built in England, with luxurious
cabinets inlaid with rare woods, designed according to the
Maharaja's own specifications. The control knobs and the dial
holder are made of carved ivory. The cabinet 1 s front and back
are inlaid with equal beauty and give a luxurious appearance
viewed in any position. Each set rests on a chromium tray with
leather handles by which the apparatus can be easily moved in
the halls of the palace. The reception of the sets is guar¬
anteed to be the best available under Indian conditions.
X X X X X X X X X X
- 5 -
5/18/37
SENATE ORDERS RECORD IN RCA-MACKAY OSLO CASE
Upon motion of Senator Borah (R. ), of Idaho, the
Senate on Monday adopted a resolution ordering the Federal
Communications Commission to submit a complete record of the
proceedings in the application of the Mackay Radio & Telegraph
Company for authority to establish a communications office at
Oslo, Norway,
Senator Borah, in asking for immediate action on the
resolution after introducing it, explained that he believed
the FCC's action contrary to communications law, but he added:
"I may reach a different conclusion after I know all
the facts and after the Commission shall have made its report. 11
Mackay last week filed an appeal from the Commission’s
decision, reached after a prolonged hearing and consideration.
The Mackay application was rejected on the ground that R. C.A,
Communications, Inc. , already serves the territory adequately.
Mackay has raised a cry of ’’monopoly" against RCA,
while RCA has insisted that it would be in the interest of
the United States to have a single radio communication circuit
to important world centers in case of war or other emergency.
Had Mackay won a favorable decision on its Oslo
application, it planned to apply for permission to establish
points of communication at other strategic cities where RCA
now has offices.
The Senate resolution reads as follows:
"Resolved, That the Federal Communications Commission
be, and the same is hereby, requested to send to the Senate as
soon as practicable the record, or copies of the record, and
all data and facts relative to the application of the Mackay
Radio & Telegraph Co. , Inc. , for modification of licenses to
add Oslo, Norway, as a point of communica/tion; and also any
decisions or written opinions touching the allowance, or dis¬
allowance, of said application.
"Secondly, that the Commission be, and the same is
hereby, requested to state the law and the facts upon which its
decisions or opinions were rendered relative to said application.
XXXXXXXXX
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5/18/3?
REAPPOINTMENT OF COMMISSIONER STEWART EXPECTED
Dr. Irvin Stewart, Chairman of the Telegraph Division
of the Federal Communications Commission, is expected to be
reappointed shortly before his term expires on June 30th. No
opposition to the reappointment is foreseen.
Majority Leader Rayburn, of the House of Representa¬
tives, who is Dr. Stewart’s Congressional sponsor, stated this
week that he is sure that Dr. Stewart will be retained.
The youngest member of the FCC and one of its liber¬
als, Dr. Stewart has frequently been critical of broadcasting
policies of the Commission. He was a merit appointee three
years ago, when he joined the FCC. His new appointment will
be for the customary seven years.
XXXXXXXX
PUBLISHER ORGANS DIFFER ON RADIO ROLE AT n KINDENBURG"
Radio was both praised and criticized in publisher
organs this week for its handling of news of the "Hindenburg"
disaster.
Editor & Publisher, in discussing newspaper coverage
of the event paused to point out that broadcasting stations
were not on hand when the blast occurred.
"Radio stations missed the scoop of the century by
not having made preparations to give a spot news broadcast of
the ship's arrival", it observed. "However, an announcer from
WLS, Chicago, was on the scene making a routine recording of
the airship's arrival. The description was so good that NBC
broke a 10-year rigid rule and allowed a. recording to be broad¬
cast over a nation-wide hookup on Friday."
Newsdom looked at the matter in a different light.
"Radio stations generally came through gloriously on
their treatment of the ’Hindenburg’ disaster. Many newspaper
executives have frequently expressed the opinion that in times
of sudden crisis, radio's ability to get the news across to the
air audience and give a full, on-the-spot running story, would
be tested sorely. The 'Hindenburg' explosion proved beyond
doubt that modern radio has so systematized itself that it now
can not only get the story, but can get it with amazing swift¬
ness, thoroughness and accuracy,
"All the major networks sent transmitting outfits to
the scene of the disaster and broadcast vivid eye-witness
reports, explanations of probable causes by airport officials,
and, strange as it would have seemed not so long ago, stories
by newspapermen and press photographers!'
XXXXXXXXX
- ? -
5/18/37
TRADE NOTES
Station KOB, Albuquerque, N. M. , whose affiliation
with the National Broadcasting Company was announced last
February, will become an optional outlet available to either
the Pacific Coast NBC-Blue or NBC-Red Network on June 15th.
The Federal Trade Commission has issued an order to
cease anddesist against Standard Distributors, Inc., and its
President, Louis H. G-ellar, both of 114 East Thirty-Second
Street, New York City, prohibiting certain unfair methods of
competition in violation of Section 5 of the Federal Trade
Commission Act. In the sale of radios, food beaters, food
mixers, or other articles, the respondents are directed to
stop furnishing or selling any device or paraphernalia which
is to be used, or which may be used, in the distribution of
such articles by means of a lottery scheme, lottery sales plan,
game of chance, or gift enterprise.
A Bolivian executive order has removed the import
prohibitions against an extensive list of products including,
among others, radios valued at less than $50. The decree
further provides that the prohibitions against imports of cer¬
tain other goods and articles, including radios valued at more
than $50 shall remain in force.
A new radio broadcasting station began operations in
Panama City on April 1st. The station is located in the Herrera
Building on Central Avenue and the equipment described as home¬
made is said to consist mostly of Thoradason parts. Broadcasting
is at present from 12 M to 1 P.M. and from 8 P.M. to 10 daily.
Call letters ar HP5H, frequency kilocycles 6122, wave length
meters 49, power watts 300, operator and address -"Voice of the
People", leased to the Panama American (daily newspaper).
Ceremonies inaugurating radio-telephone service between
the United States and China will be held tomorrow (Wednesday)
in the office of Secretary of State in Washington and in the
Palace Hotel in Shanghai.
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5/18/37
A Central Children’s radio station is being built in
Kharkov, Soviet Republic. Children themselves are taking part
in the installation of the equipment.
U. S. Assistant Trade Commissioner Lestrade Brown,
Paris, advises that negotiations are taking place between the
Minister of postal Service, Telegraphs and Telephones and the
Minister of Colonial Affairs, concerning the setting up of a
radio broadcasting station in French Indo- China.
xxxxxxxxxxxxxx
IOWA LAW PROTECTS STATIONS FROM LIBEL SUITS
Iowa radio stations are protected against libel suits
arising from "ad libbed" remarks of a defamatory nature uttered
by political speakers and others under terms of a bill signed
by Governor Nelson G. ICraschel. The new law specifies that
stations are protected against such suits for damages if they
first "exercise due care to prevent the publication or utter¬
ance of such statements in such broa„dcast. "
The bill was introduced by Representative Dewey Goode
of Davis County and was passed and signed with little public
notice, A section of the law refers to non-applicability to
any present suits.
XXXXXXXXX
CHINA PLANS DEVELOPMENT OF RADIO AND TELEPHONE COMMUNICATIONS
A three-year plan for the further development of
industry and communications within the Kwantung Province, China,
has been drawn up and is now being considered by the Provincial
government, according to a report from Vice Consul W. L. Parker,
Canton, made public by the Transportation Division, Department
of Commerce.
Among other things, the plan provides for an extensive
development of long distance radio and wire telephone systems.
It is expected that about $1,500,000 (Chinese Currency) will be
expended during the first year of the plan in establishing com¬
mercial telephone communication between Canton and other local¬
ities in China,
Approximately $1,900,000 (Chinese Currency) will be
expended during the second year of the plan for the development
of long distance telephone systems in all districts along the
West River. The plans are as yet Incomplete for the second year
and no plans have been worked out for the third yeard, accord¬
ing to the report.
XXXXXXXXX
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5/18/37
WALKER HEAD OF FCC HEARING SECTION
Ralph L. Walker, transferred two weeks ago from
the Examiners’ staff of the Federal Communications Commission
to the Law Department, has been made chief of the Hearing
Section of the Broadcast Division of the latter department,
according to an announcement by Hampson Gary, General Counsel.
He will report to George B, Porter, Assistant General Counsel.//
Mr. Walker heads a group of lawyers appearing at
broadcast hearings for the FCC. The Hearing Section also
embraces investigation and prosecution of criminal proceedings
for the FCC. The post is a newly- created one.
Mr. Walker has been with the Communications Commission
since its creation and was one of the first attorneys on the
old Radio Commission, having joined it in 1928, a year after
it began operation. Coincident with his transfer to the Legal
Department last month, Tyler Berry, attorney in the Law Depart-/
ment, was transferred to the Examiners’ staff.
xxxxxxxxxx
I. T. & T. INCOME FOR 1936 $1,500,000 ABOVE 1935
The International Telephone & Telegraph Company’s
net income for 1936 amounted to $4,009,103 as compared with
$2,553,013 for 1935, according to a report made this week to
I. T. & T. stockholders. This figure does not include income
from Spanish subsidiaries.
’’Sales by manufacturing subsidiaries approached
record amounts during 1936, topped only by the peak sales of
1930”, the report states. "Revenues of telephone, ca.ble and
radio operating subsidiaries also showed substantial increases
over revenues for the year 1935. Reports received to date
indicate a continuation of the improved trend in 1937.
"This steady and encouraging improvement in earnings
was genera,! except in the case of the subsidiaries located in
Spain. The effect on the Corporation’s Spanish investments of
the civil war in that country, cannot be determined at this
time. ”
XXXXXXXXX
10
5/18/37
ZENITH INTRODUCES NEW LINE
The three-day Zenith convention in Chicago last week
was climaxed by a dinner and entertainment and followed by a
mass trip through the new Zenith factory.
Zenith, for the coming year, has gone distinctly
"armchair" having placed twelve of the chairside models in the
new line, ranging in list price from $29.95 for a full sized
floor design, to $185.00, and containing from 5 to 15 tubes.
The complete line runs from $19.95 to $750.00, and embraces
sixty-five models of all descriptions running from five to
twenty- five tubes.
Within this comprehensive line are included four
phonograph combinations, two radio bars and 8 farm or battery
models; also three period or traditional furniture models; the
last mentioned in the higher priced brackets.
Zenith's three most important innovations are an
entirely new Robot or power dial set-up which simplifies all
tuning immensely; "Electric Automatic Tuning", in which a motor
takes over the job of tuning, and a farm radio line with a
"Hi-Line" switch that can be thrown instantaneously for either
6 volt battery or 110 volt power line operation.
The new Robot dial is a highly ingenious affair, is
big and black in accordance with the vogue set by Zenith three
seasons ago, and is framed by an escutcheon in the form of an
"ovalized triangle". The standard broadcast, foreign and
domestic commercial short wave, — and the police, amateur and
aviation bands have been placed on three separate dials, which
are brought into view, one at a time, by the manipulation of
a three-position "Robot Wave Band Selector". Each dial is
thus greatly simplified, and the crowding of the entire comple¬
ment of bands on a single dial heretofore found on radio sets,
is eliminated entirely.
To tune on these dials, the operator has merely to
press the "Robot Self Starter" to either the left or the right,
This sets a synchronous motor in operation, and the needle trav¬
els around the dial automatically. As a part of the system,
Zenith has provided the purchaser with a set of "Local Station
Indicators" or "Dial-Logs" which can be slipped on the dial
without the aid of service man, and which serve to identify
the tuning positions of favorite stations selected by the user.
In addition station call letters are printed on the standard
broadcast dial. Another innovation separates the volume
switch from the on-and-off control, permitting the set to be
turned off without disturbing the volume setting in the process*
The Convention was addressed by E. F. McDonald, Jr. ,
President of Zenith; Hugh Robertson, Vice-President and Treasure
E. A. Tracey, Vice-President in Charge of Sales and other member
of the organization.
XXXXXXXXXX
5/18/37
NEBRASKA ACT OUTLAWS THE ASCAP
Attorney General Richard C. Hunter said Monday night
he was unable to determine what steps would be taken to enforce
the act outlawing the American Society of Compoers, Authors
and Publishers in Nebraska "until I read it. "
The law, signed by Gov. R. L. Cochran yesterday
(Monday) despite protestations of opponents that the measure
was unconstitutional, became effective at once.
Senator Frank J. Brady, who introduced the measure,
accused the A.S.C.A.P, of conducting a "reign of terror" to
collect fees from radio stations, theaters, hotels, restaur¬
ants and clubs,
XXXXXXXXXXX
"NEWS PIRACY"' CHARGED IN REPLY TO TRANSRADIO SUIT
Charging that the Transradio Press Service, Inc. ,
and Radio News Associated, Inc. , are "news rustlers" and
"pirates", attorneys for the 17 defendants in the Transradio
suit for §1,700,000 alleging conspiracy in restraint of trade
filed an affidavit and notice of motion at the first hearing
of the case in U. 3. District Court in New York last week for
leave to take depositions of witnesses who live at a greater
distance than 100 miles from New York and for an extension of
time for this undertaking.
The motion was based upon an affidavit of Sidney D. L.
Jackson, Jr. , of Baker, Hostetler, Sidlo & Patterson, Cleveland,
general counsel for the United Press Associations; Hugh Baillie,
Roy Howard, and G. B. Parker, and filed by DeWitt, VanAken &
Moynihan, New York counsel. It stated that on investigation
of the plaintiffs’ organization "we are now in possession of
information with respect to that matter which will have a mater¬
ial bearing upon the issues of the case and will tend to negative
the allegations in plaintiffs’ bill that the news disseminated
by plaintiffs resulted from the efforts of their own corres¬
pondents and not from pirated news gathered by the defendant
press associations or newspapers."
X X X X X X X X X X
12
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
- - - - -
Segal And Smith. Face Suspension In Drastic FCC Order . 2
"Monopoly" Feared In Transfer Of Station To Newspaper . 6
Zenith Convention Orders Jump To $12,000,000 . 7
Two Additional Channels Recommended For RCA . 8
FTC Order Hits Dealers In Radio Sets . 9
New Station Authorized; Another Is Recommended . 10
Some Radio Lawyers Ruining Profession, Payne Says . 11
Radio-Phone Between U. S. And China Opened . . . 12
No. 1030
. , .
i V ..V ' l V*
SEGAL AND SMITH FACE SUSPENSION IN DRASTIC FCC ORDER
Culminating an investigation of alleged irregularit ie
in legal practice before the Federal Communications Commission,
the FCC on Thursday adopted a drastic order calling upon Paul M
Segal and George S. Smith, prominent Washington radio attorneys
to show cause why they should not be suspended and disbarred
from practice before the Commission.
The lawyers are charged with having set up a dummy
applicant in order to defeat other applicants for facilities
before the Commission. They are allowed 31 days to file ans¬
wers under oath to the charges.
While the special committee headed by Commissioner
George Henry Payne initiated its inquiry primarily because of.
charges made against Smith, it also investigated other com¬
plaints and implicated Segal as well as Smith in its findings.
Segal denied that his conduct in connection with
the matter in question had not been entirely proper and con¬
sistent with a sound adraini strati on of law and further stated
that he had had no opportunity to relate the facts to the
investigation committee prior to the recent and present pub¬
licity.
Smith had previously been reprimanded for inserting
affidavits in FCC files in violation of Commission rules. A
docket clerk who assisted him was transferred to another divi¬
sion of the FCC.
The committee which made the inquiry included
Commissioners Thad H. Brown and Paul A. Walker, as well .as
Commissioner Payne. The text of the FCC order is as follows:
’’Whereas, The Commission having conducted an investi¬
gation into the facts and circumstances concerning the alleged
unauthorized and unlawful interpolation of documents into the
records of the Commission in the case of Richard M. Casto,
Docket 4212, and having inquired into the demeanor, good faith
and conduct of Paul M. Segal and George S. Smith, attorneys for
the said Richard M. Casto, in the making and prosecution of the
application in the said case: and
"Whereas, the Commission having further inquired into
the demeanor, good faith and conduct of said Paul M. Segal and
George S. Smith in connection with the organization of and fil¬
ing of applications with the Commission by or for the Palmer
Broadcasting Syndicate, Inc., and
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"It appearing that the demeanor, good faith, and
conduct of the said Paul M. Segal and George S. Smith may
constitute unbecoming, unethical and unprofessional conduct
and demeanor as practitioners before this Commission; may
constitute concealment in obtaining admission to practice
before the Commission of material facts with reference to
their legal qualifications, professional standing, character
or integrity; or may constitute a violation of their oaths
taken upon admission to practice before the Federal Communi¬
cations Commission, that they would demean themselves as
practitioners before the Commission uprightly and according
to law, and that they would support the Constitution of the
United States and would conform to the Rules and Regulations
of the Commission, and
"It appearing that charges should be preferred
against the said Paul M. Segal and George S. Smith, afford¬
ing them an opportunity to be heard as to why they and each
of them should not be suspended, disbarred, or their right to
practice before the Commission revoked, or their further
appearance as attorneys before this Commission should not be
prohibited;
"It is ordered, that charges be and they hereby are
preferred by the Commission against the said Paul M. Segal
and George S. Smith for alleged unbecoming, unethical and
unprofessional conduct a.nd demeanor; for the alleged conceal¬
ment in obtaining admission to practice before this Commis¬
sion of material facts with reference to their legal quali¬
fications, professional standing, character or integrity; or
for the alleged violation of their oaths taken upon admission
to practice before the Federal Communications Commission, that
they would demean themselves as practitioners before the
Commission uprightly and according to law, that they would
support the Constitution of the United States and would con¬
form to the Rules and Regulations of the Commission, in the
following particulars, to wit;
"1, That the said Paul M. Segal and George S. Smith
did, on or about the 9th day of December, 1936, know¬
ingly and with intention to deceive, interpolate, or
aid and abet in the interpolation of, certain signed
and notarized depositions into the files of the
Commission. in the case of Richard M. Casto, Docket
4212, contrary to the Rules and Regulations of the
.Commission,
"2, That the said Paul M, Segal and George S. Smith
did represent said Richard M. Casto in the prepara¬
tion and filing of his application for a radio sta¬
tion construction permit and in hearings before this
Commission on such application, all of which was done
with the knowledge that the said Richard M. Casto was
not the true applicant, that he did not own the funds
as represented, and that he was a subterfuge or
3
5/21/37
"2. (Cont'd) dummy applicant for another person, or
persons, all of which was done to deceive and mislead
the Commission in its consideration of the said appli¬
cation and other applications; and. to hinder and delay
other applicants from obtaining or operating under
.authorizations of this Commission,
"3, That the said Paul M, Segal and George S. Smith did
conceive, organize and cause to be chartered the Palmer
Broadcasting Syndicate, Inc,, for the purpose of using
said Palmer Broadcasting Syndicate, Inc,, as a dummy
applicant for authorizations®' from the Commission, and
for the purpose of deceiving and misleading this Com¬
mission in its consideration of applications to be
filed by the Palmer Broadcasting Syndicate and appli¬
cations of other applicants, and to hinder and delay
other applicants in obtaining or operating under
.authorizations of this Commission,
"4. That the said Paul M. Segal and George S. Smith
did knowingly and with the intention to deceive have
the said Palmer Broadcasting Syndicate, Inc,, file
applications before the Commission for stations or
construction permits at Portland, Maine, Lewiston,
Maine, and Cheyenne, Wyoming, for the purpose of
deceiving and misleading the Commission in its
consideration of said applications and applications
of other applicants, and to hinder and delay other
applicants in obtaining or operating under authoriza¬
tions of this Commission.
"It is further ordered, That the said Paul M. Segal
and George S. Smith shall file with the Commission within thirty
one days from the date hereof, their several ansv/ers under oath
to the foregoing charges, which shall include a statement as to
whether they wish to appear and be heard thereon.
"It is further ordered. That the Commission enter
upon a hearing, at a time and place hereafter to be fixed, to
determine the truth or falsity of the said charges, and to deter
mine whether the said Paul M. Segal and George S. Smith and each
of them should be suspended, disbarred, their right to practice
before the Commission revoked, or their further appearance as
attorneys before this Commission prohibited."
A statement issued by Paul M. Segal regarding the
disbarment proceedings reads as follows:
"Telegraph Commissioner George H. Payne after a pre¬
liminary investigation of which he had charge has requested
that the Federal . Communications Commission hear evidence on
charges of improprieties on the part of my associate George S.
Smith and myself.
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"Of course, the Commission in the face of such charges
owes it to itself to hear the testimony and find out the facts.
The proceeding by way of citation for disbarment is the only
formal proceeding available for this purpose under the Commis¬
sion1 s regulations.
"Both Mr. Smith and I are confident that our conduct
as practitioners and lawyers will bear any scrutiny by the
Commission or by any of the courts before which we have pract¬
iced for many years. We also feel certain that Commissioner
Payne's colleagues on the Federal Communications Commission will
give us a prompt and fair hearing and the vindication to which
we are entitled. We intend to give every cooperation.
"In the instance of Mr. Smith, matters of which he is
accused have been thoroughly investigated in a previous informal
proceeding by the full Commission, after which a letter was
written him. which, although it reprimanded him, said in part:
"...we do not find that you should be cited to
show cause why you should not be disbarred or
suspended from practice before this Commission."
"As for the accusation against me, my conduct in con¬
nection with the matter has been entirely proper and consistent
with a sound administration of law. The most simple explana¬
tion on my part will show this. I can only express regret -
and I feel that Commissioner Payne's colleagues have not been
told - that I have had no opportunity to relate the facts to
the investigating committee headed by Commissioner Payne prior
to the recent and present publicity. Had I been extended an
opportunity to clear up the facts for the committee I am sure
the disbarment proceedings would not have been brought.
"On May 3, 1937, a Commission attorney told me over
the telephone that I would be given an opportunity to appear
before Commissioner Payne's committee; he agreed to telephone
back to make definite arrangements for my appearance; I have
not heard from him."
xxxxxxxxxxx
One aftermath of the "Hindenburg" disaster was recount¬
ed at the Navy Department this week, recalling that an amateur
radio fan f requentlyreported the destruction of the "Hindenburg"
during its trips last year.
The man, a radio experimenter in Chicago, called the
Navy on at least three occasions last Summer, reporting that
he had just picked up an SOS from the "Hindenbrg" while it was
o-ver the ocean. Officers could not recall his name, as no
record of his reports was available, and added he had not sent
in a message during the only crossing this year.
XXXXXXXXX
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"MONOPOLY" FEARED IN TRANSFER OF STATION TO NEWSPAPER
Expressing apprehension that the transfer of WREN, \
Lawrence, Kans. to the Kansas City Star "would be a step in
the direction of monopoly1*, Examiner G-eorge H. Hill this week
submitted an adverse report to the Federal Communications Com¬
mission.
The Kansas City Star had arranged to buy the station
for $295,000 and had put up an option of $30,000. Station WREN
is 22 miles from Kansas City, operates with power of 1,000 watts
at nighttime and 5,000 watts in daytime , and delivers a satis¬
factory signal to Kansas City, Mo.
Although the newspaper is admittedly a pioneer in
broadcasting, the Examiner pointed out that the transfer "would
place in the hands of the largest newspaper in Kansas City, two
of the largest stations now serving this area, and would remove
from the Kansas City area a formidable competitor. "
The Kansas City Star first became actively interested
in broadcasting as early as January, 1922, the report states,
and began operating its station a few months after KDKA, in
Pittsburgh, went on the air. It now operates Station WDAF on
610 kc. with 1 KW nighttime power, and 5 KW daytime power.
"Up until September 21, 1925, no commercial programs
had been broadcast by Station WDAF, p„nd it was not until several
years later that the station was put on a, paying basis", the
report states. "It was shown that approximately $200,000 was
expended by the Kansas City Star Company in the operation of
Station WDAF without any direct return on the investment. The
company has kept abreast of technical developments in the radio
art and has operated the station efficiently.
11 The present construction program of Station WDAF
involves an expenditure of from $125,000 to $135,000."
Discussing the proposed purchase price, Examiner Hill
said:
"It is apparent that approximately 77/ of the proposed
purchase price would represent what the transferee contends is
*good will1 or 1 going concern’ value, while approximately 23/
of the purchase price would represent what the appraiser for
the applicant designates as sound value of the property sold to
a going concern. Since the record discloses that Station WREN
has been operated at a loss in excess of $37,000 during the
period it has operated, it is difficult to understand how the
station can be operated so as to earn a reasonable return (which
is fixed by the transferee at 10/ or more of the purchase price)
on an investment of $295,000, and in addition furnish radio
service in the public interest. Therefore, should the applica-
6
5/21/37
tion be granted, the existing rates for time on Station WREN
must be increased or additional time must be sold in order to
bring a fair return on the proposed investment of the Kansas
City Star Company, and either an increase in existing rates
or the sale of additional time may adversely affect public
interest. "
XXXXXXXXXXX
ZENITH CONVENTION ORDERS JUMP TO $12,000,000
With the signing up of more than $12,000,000 worth
of business at the annual Zenith Radio Corporation distributors’
meeting, unprecedented in its history this company, just getting
into its stride at the new Chicago plant, expects to turn out
a maximum of 10,500 radio receivers in eight hours.
’’The enthusiasm with which the new 1938 Receivers
were accepted is evidenced by initial orders placed by Zenith
distributors for immediate delivery totaling $12,234,920 at
factory prices, believed to be the largest volume ever booked
by any radio manufacturer at a distributor convention",
Commander E. F. McDonald, Jr. , said. "These initial orders
are principally for dealers' stocks and display purposes, and
indicate what the demand for the Zenith line may be during the
coming season.
"The above figures of orders taken at the distributors'
convention just closed are approximately three times the
$4,187,384 of initial orders placed at the corresponding Zenith
Convention a year ago. Further evidence of growth is shown by
the fact that two years ago, Zenith Retail Dealers numbered
3,500. A year ago this had increased to 13,000 and at present
Zenith has over 20,000 dealers handling its products in the
United States. It is also sold in 97 foreign countries.
"Because of the steadily increasing public acceptance
of the company’s products, the above large orders were to some
extent anticipated and production scheduled accordingly. Ship¬
ments against these initial orders have already begun and
should be completed by August 1.
"During the past year the Company did not at any time
have any distress merchandise and there were no cut-rate sales
or price reductions. To that same end Zenith will continue
to rigidly control production this year. "
XXXXXXXXXX
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TWO ADDITIONAL CHANNELS RECOMMENDED FOR RCA
Allocation of two additional point-to-point radio
channels to R. C.A. Communications, Inc., was recommended to the
Federal Communications Commission this week by Examiner R. H. /
Hyde. The channels specified are 2776 and 2780 kc. '
The Examiner found that the additional frequencies
are necessary for RCA to maintain service between New York and
Washington, New York and Boston, and San Francisco and Los
Angeles. He stated that frequencies now used by RCA are adapt¬
able to night service for these areas and that the company has
been forced to use leased wires for some of its business.
"The frequency of 2770 kc is employed by the Labor
Department Immigration and Naturalization Bureau", the Examiner
pointed out", for service along the Canadian border. No inter¬
ference would be caused to this service under present conditions,
but the fact that the border service may be extended to the
Mexican boundary suggests the remote possibility that some con¬
flict might develop later between the two services in the
vicinity of Los Angeles. This same frequency of 2770 kc is
also employed by the Interior Department, National Park Service,
but existing geographical and frequency separations appear to be
adequate to prevent interference to that service. It also
appears that the separations with respect to Naval Reserve
Stations operating on 2772 kc at Key West and Seattle are
adequate to prevent objectionable interference.
"From examination of all the evidence relative to the
question, it appears improbable that the proposed use of the
frequencies of 2776 and 2780 kc. would cause interference to
any existing service.
"The applicant proposed to employ the frequency of
2776 kc for communication from San Francisco (Bolinas) to Los
Angeles and by duplication of the use of the frequency for com¬
munication from Washington, D. C. to New York City, and to
employ the frequency of 2780 kc for communication from Boston
to New York City. These frequencies, which are lower in the
spectrum than the frequencies available for use at the appli¬
cant's San Francisco, Washington, D. C. and Boston stations
under present licenses, excepting the temporary assignment of
2776 kc to the Washington station, are requested by the appli¬
cant for the purpose of improving existing service from San
Francisco to Los Angeles and from Washington and Boston to New
York. The lowest frequency available to the applicant under
present licenses for service from San Francisco to Los Angeles
is 4550 kc. ; the lowest available at Washington under a regular
license is 5105 kc; and the lowest available at Boston for sen-
vice to New York is 5180 kc. The frequency of 3275 kc is licens¬
ed to the Boston Station WQEL, but cannot be used for service to
New York because of its use in service from New York to
Washington. "
XXXXXXXX
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5/21/37
FTC ORDER HITS DEALERS IN RADIO SETS
A group of manufacturers of and dealers in radio sets
and radio parts, located principally in Washington, Philadelphia
and in New York and vicinity, has been ordered by the Federal
Trade Commission to cease and desist from unfair methods of com¬
petition in the interstate sale of their products. The order
also is directed against two companies manufacturing and sell¬
ing escutcheons and name plates for use on radio products.
The order prohibits the respondents from using as
marks or brands on their products certain well-known and long
established names of other manufacturers and dealers in the
radio and like industries without consent of the lawful owners
of such names.
According to findings in the case, among the names,
brands and symbols adopted and used by the respondents, without
authority from the owners, are Marconi, Edison, Bell, Victor,
Majestic and Brunswick, and the letters R. C.A. and G. E. , stand¬
ing alone or with other words, or colorable imitations or
simulations thereof.
Metal Etching Corporation, 1001 Essex St. , Brooklyn,
and M. Hermann, an officer of the company, and Crowe Name Plate
and Manufacturing Co. , 1479 Grace St. , Chicago, and its offic¬
ers, E. C. Coolidge and I. Robinson Smith, are ordered to dis¬
continue selling or distributing escutcheons and name plates
bearing the trade-marks and names in question to manufacturers,
assemblers or dealers in ra,dio products, except to the owners
of such trade names or marks, or to the licensees of the owners.
The order further directs that the respondent manu¬
facturers of and dealers in radio products cease representing,
directly or indirectly, through use of trade names or marks of
which they are not the owners, and without the permission of
the lawful owners, that such products are those manufactured,
sold, endorsed or licensed by the late Thomas A. Edison,
Thomas A. Edison, Inc., American Telephone & Telegraph Co.,
Western Electric Co. , Marconi Wireless Telegraph Company of
America, Radio Corporation of America, Victor Talking Machine
Co., Brunswick-Balke-Collender Co., Warner Brothers Pictures,
Inc., and its subsidiary, Brunswick Radio Corporation, Grigsby-
Grunow Co. , or Majestic Radio and Television Corporation, and
General Electric Co.
The respondent manufacturers of radio products and
dealers who are ordered to cease and desist from unfair methods
of competition, together with their officers or agents, are:
Knight Electric Co. , Inc. , Temple Electric Corporation, Acme
Radio Corporation, Pirate Radio Corporation, and Gille.t Radio
Corporation, a,ll of 16 Hudson St. , New York City, and their
officers, Eric Houser, David I. Morrison, A. M. Frank, Arthur
and Charles Dreher, and Ruth Wasserman; Harvard Radio Tube
9
5/21/37
Testing Stations of Pennsylvania, Inc. , 208 North Broad St. ,
Philadelphia, and Julius M. Schoenberg; Ross Distributing Co. ,
2020 Chancellor St., Philadelphia, and Larry B. Ross; Sun Radio
and Service & Supply Corporation, 938 F St. , Washington and
Emanuel Rosenweig; Schiller Bros. , Inc. , 922 F St. , Washington,
and Louis S. Schiller; Petter Robbins, trading as Robbins Radio
Co. , and as Ambassador Radio Co. , 940 F St. , Washington, and
F. C. Scruggs, trading as Call Radio Co., 636 H St., N.E.,
Washington.
The complaint was dismissed as to the following
respondent companies and their officers for the reason that
there wa.s no evidence to establish the allegations made against
them: Etched Products Corporation, Long Island City, New York;
and Albert Nierenberg and Walter H. Miller; Electro Chemical
Engraving Co. , New York City, and F. E. Switzer, N. L. Jacobus,
Robert Schlesinger, Julius Erdoes and L. S. Southwick; Premier
Metal Etching Co. , Long Island City, New York, and Herbert
Pape, Karl D. Johnson, Ernest A. Rottach and Hugo Lehrfeld;
and Leon C. Sacks, Charles Johannes, Morris A. Weiner and J. R.
Rosenberg.
The case was closed without prejudice as to Radio
Products Corporation, Franklin Sales and Distributing Co. , Inc. ,
and S. Buchman.
According to findings in the case, all the respondents
except those concerning whom the complaint was dismissed or the
case closed without prejudice, cooperated among themselves and
with one another to deceive the public and to compete unfairly
with other manufacturers and dealers in radio products.
XXXXXXXX
NEW STATION AUTHORIZED; ANOTHER IS RECOMMENDED
The Federal Communications Commission this week issued
a construction permit for the building of a new broadcasting
station at Greenville, Texas, by the Hunt Broadcasting Associa¬
tion. The facilities to be used are 1200 kc. with 100 watts
power, daytime.
Simultaneously, Examiner Robert L. Irwin recommended
that the application of the Northwest Publishing Co. , of Dan¬
ville, Ill., be granted a construction permit to build and
operate a station on 1500 kc. with 250 watts daytime subject to
approval of a transmitter site by the FCC.
The Northwestern Publishing Co. is a subsidiary of
the Gannett chain of newspapers. It publishes the Danville
Commercial News.
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Stations already owned or controlled by the Gannett
Company are: WHEC, at Rochester, New York, and WTHT, at
Hartford, Connecticut. The company also owns 40$ of the stock
of the Olean Times-Herald, which owns WHDL, at Olean, New York.
It also owns all the stock of the Press Company, and the latter
company in turn owns 25$ each of the stock of Stations WOKO and
WABY. The Elmira Star-Gazette is solely owned by the Gannett
Company, and the paper handles all the programs of Station WEST
under a contract with Cornell University.
XXXXXXXX
SOME RADIO LAWYERS RUINING PROFESSION, PAYNE SAYS
An attack on some of Washington's radio lawyers by
Commissioner George Henry Payne in an address before the
National Lawyers’ Guild in New York recently was disclosed this
week when the text of the address was published in the
Congressional Record.
As no advance copies of the address were distributed
to the press and little publicity was given to the speech when
it was delivered, the Record scored a " scoop" when it carried
Commissioner Payne’s address under an extension of remarks of
Senator Alben W. Barkley (D. ), of Kentucky.
While the speech was made prior to the dinner of the
Federal Communications Commission Bar Association, at which >
Commissioner Payne was lampooned, its publication this week /
served as an answer by the New York Progressive Republican./
Highlights of Commissioner Payne's address follow:
"It was Sidney Smith who said that there is nothing
of which nature has been more bountiful than poets. They swarm,
he said, like the spawn of codfish, with a vicious fecundity.
Had the reverend doctor lived in Washington in our day, when a
new and lucrative industry is forging ahead with cyclonic fury,
he would have concluded, I fear, that poets are, as to lawyers,
a mild and not unpleasant itch in the face of a devastating
plague.
"It was remarked one day by a fellow Communications
Commissioner that it was impossible to go out into the hall of
the Federal Communications Commission's offices in Washington
without stepping on a few radio lawyers. I would not say a word
in disparagement of the many fine men who have a profession and
legal interest in the regulations of the industries coming under
the Federal Communications Commission, but just as you have
found it is necessary to organize for law reform in the broader
and larger field, so reforms among those guilty of champertous
practices will be necessary in Washington.
11 -
"In no field is there a greater need for broad and
humane consideration of the problems that confront us than in
that section of the law that devotes itself to radio. The
enormous future, the prospects of wonderful discoveries and
developments, make this new art, industry, and science the most
attractive of activities. With 27,000,000 receiving sets in
existence, practically covering the homes of the country, the
responsibility of the men solving its law problems is unique.
"How much or how little time there is given among
the radio lawyers to weighing this responsibility I would not
venture to guess, but I do know that able men of hich character,
and leaders of what is known as the Federal Communications Com¬
mission Bar Association, have come to me to say that certain
men are ruining the profession. Then they add, rather piti¬
fully, that they can’t do anything about it because no one has/
the courage to come forward. /
"The other day an attorney was found to have changed
documents in the docket room concerning a case before the
Commission through the weakness of a young employee. It was
Joseph Choate who said that there are two kinds of lawyers -
those who know the law and those who know the judge. Now, they
say in Washington that the two kinds are those who know the law
and those who know the docket clerk.
"It is all rather pitiful; but there is hope. Hope,
indeed, when out of the welter of selfishness there is courage
and idealism enough to organize such a movement as
truly historic event. "
XXXXXXXXX
RADIO-PHONE BETWEEN U. S. AND CHINA OPENED
Mrs. Franklin D. Roosevelt participated in a ceremony
on Wednesday opening a Bell System radio telephone circuit
between the United States and China. The exchange was between
Washington and Shanghai.
Formal greetings were exchanged by Secretary Hull and
Dr. Wang Chung-hui, Minister of Foreign Affairs of China and
acting president of Executive Yuan.
The reception over nearly 10,000 miles of wire and
radio circuits over the Bell System was exceptionally clear.
All the conversation was in English. The ceremony was held in
the Office of Secretary Hull and in China at the Palace Hotel
in Shanghai.
Among others who conversed between the two countries
were A. S. Prall, Chairman of the Federal Communications Commis¬
sion and General Yu Fei-peng, Chinese Minister of Communications;
Secretary Hull and Nelson T. Johnson, Ambassador to China;
Dr. Sao-ke Alfred Sze, Ambassador to the United States, and Dr.
Want; and T. G. Miller, Vice-President of the American' Tele¬
phone & Telegraph Co. and Peng Shueh-pei, Vice Minister of
Communications of China.
XXXXXXXX
12 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
U. S. Short-Wave Station On West Coast Is Advised . 2
U. S. Announcers Chuckle Over BBC's Discomfiture..., . 3
Record Attendance Seen At RMA Convention . .
New Station For Troy, N. Y. , Recommended To FCC
Amateurs Make Tests In 5-Meter Wave Band .
D. C. Man Gets Favorable Report For Maryland Permit .
China Expanding Use Of Radio In Education .
Short-Wave Trap For Speeders Proves Effective .
Radio Exports Well Above Last Year .
Reception Of U. S. Long Wave Stations Poor In England .
Trade Notes . 9
RCA To Advertise In 200 Metropolitan Dailies . 11
Market For Radio In Cuba Improving . 11
Gilman Opens Hollywood Office For NBC . 11
Press Advertising Cancelled For Radio Campaign . 12
No. 1031
^ LO toio c*- coco
May 25, 1937
U. S. SHORT-WAVE STATION ON WEST COAST IS ADVISED
While an Examiner of the Federal Communications
Commission was deliberating the application of General Electric
Company for authority to construct a short-wave transmitting
station on the Pacific Coast, the need of such a transmitter
was called to the attention of the U. S. Commerce Department by
the American Trade Commissioner at Shanghai.
A hearing was held last week on General Electric’s
request for a permit to build a station to operate on the same
frequencies as its Schenectady stations, W2XAD and W2XAF, with
a transmitter located near Belmont, California.
Because of the difference in time between California
and New York, the applicant pointed out, the western station
would not reduce the operating time of the eastern transmitters.
Reception in China of short wave radio programs
originating in the United States varies from fair to extremely
bad and it is believed that a suitable short-wave transmitting
station must be erected on the Pacific Coast with a specially
directed beam to that part of the world if the reception is to
be improved. U. S. Trade Commissioner A. Viola Smith, Shanghai,
advised the Department of Commerce.
English language radio programs for the Far East
have for several years been regularly broadcast from France,
Germany and Great Britain and world news services in English
are heard daily in Shanghai from Australia, England, Germany,
Russia, Japan and Italy while a weekly news service broadcast
weekly by the League of Nations at Geneva is heard locally,
the Id'ade Commissioner reported.
The use of different wave lengths at different times
of the day and different seasons of the year suitable to recep¬
tion in the Far East has been very successfully utilized by
Great Britain in broadcasting from Daventry, the report states.
Most of the foreign stations received in China vary
their transmitting times according to daylight- darkness distri¬
bution and the season of the year in order to obtain the most
favorable broadcasting conditions, it was stated.
While China’s 400,000,000 population is eighty per¬
cent illiterate, the literate population of that country
approximates 80,000,000 persons most of whom are within the
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higher purchasing power group and many of this group, includ¬
ing quite a few American-educated Chinese, would be ready
listeners were American programs made available to them, the
report states.
It is lamentable, the Trade Commissioner reported,
that American radio programs are not heard in China and the
Far East since the reception thereof would result in mutual
benefits to the countries involved.
XXXXXXXX
U. S. ANNOUNCERS CHUCKLE OVER BBC1 S DISCOMFITURE
American radio announcers and even broadcasting
executives were getting some good chuckles last week out of
the discomfiture of officials of the British Broadcasting
Corporation.
As BBC announcers ordinarily are much more dignified
and proper in their language than U. S. announcers, the slip¬
up at a fleet review in Spithead created international inter¬
est. Whereas the most celebrated boners of American announcers
are subject to word-of-mouth stories, the BBC incident was
carried by the press associations.
Lieut. Commdr. Tom Woodrooffee, retired, was the
commentator who created a sensation by blubbering "the fleet
is all lit up" as he tried to describe a naval review. The
BBC finally broke into the broadcast with an announcement that
listeners were being taken back to the Carleton Hotel for
dance music.
Woodrooffee explained that he was emotionally over¬
come.
One of the follow-up stories from London stated that
BBC announcers hereafter may travel in pairs so that if one is
similarly overcome, the other may carry on.
XXXXXXXXXX
The Cleveland Public Schools are planning the instal¬
lation of an ultra- short wave transmitter to be used in reaching
all of the schools in their system. Considerable study has
been given to this proposal both as regards its effectiveness
and the costs of installation. It Is probable that a single
receiving set will be installed in each school building so
that programs can be distributed within the building over the
existing public address system. All broadcasting by the
Cleveland Public Schools is designed for classroom reception.
XXXXXXXXXX
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RECORD ATTENDANCE SEEN AT RMA CONVENTION
The largest radio gathering in five years is assured
at Chicago for a week beginning June 8th, for the thirteenth
annual Convention of the Radio Manufacturers' Association
and the National Radio Manufacturers Parts Trade Show at the
Stevens Hotel, according to Bond Geddes, Executive Vice-
President. The fifth annual convention of the Institute of
Radio Service Men also will be held the same week. Scheduled
are many interesting programs, social and entertainment events,
committee and group meetings for discussion of industry prob¬
lems. A radio golf tournament also is an added attraction.
The RMA convention will be held Tuesday and Wednesday
June 8-9, closing with the annual radio industry banquet,
another "RMA Cabaret", Wednesday evening, June 9th. The
National Parts Trade Show will open Thursday, June 10th, and
exhibit space has been enlarged to 136 booths, the largest
radio exhibition since the industry trade show of RMA was held
in 1932. The parts show, June 10-13, is sponsored jointly by
the RMA and the Sales Managers Club. The Radio Industries
Gulf Tournament will be held Thursday, June 10th.
The RMA Entertainment Committee in charge of the
"RMA Cabaret", etc. consists of A. S. Wells, Chairman; Paul V.
Galvin, Peter L. Jensen and James S. Knowlson.
President Leslie F. Muter will preside at the RMA
convention. An innovation this year will be an RMA membership
luncheon at 12s 30 Tuesday, June 8th, and immediately following
the annual business meeting of the Association will be held.
Annual addresses and reports will be made by President Muter,
Treasurer Fred D. Williams, and Chairmen of all RMA Divisions.
There will be an address by Judge John W. Van Allen, of Buffalo
General Counsel of RMA, Many RMA Divisions, Committee and
group meetings will be held, and there will be two meetings
of the RMA Board of Directors, including annual elections of
officers and Directors of the Association.
XXXXXXXX
NEW STATION FOR TROY, N. Y. , RECOMMENDED TO FCC
The granting of a permit to the Troy Broadcasting Co.
of Troy, N. Y. , for building and operating a broadcasting sta¬
tion on 950 kc. with 1 KW power, daytime , was recommended to
the Federal Communications Commission this week by Examiner
George H. Hill.
Examiner P. W. Seward recommended that WHBB, of
Selma, Ala., be authorized to increase its operating teim from
daytime to unlimited and assign its license to the Selma
Broadcasting Co.
XXXXXXXXX
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5/25/37
AMATEURS MAKE TESTS IN 5-METER WAVE BAND
Always pioneers, radio amateurs in the Northeast
this week were engaged in an elaborate series of tests in the
new and little-developed five-meter band. The experiments
were centered on two high peaks in the Bristol Hills, just
south of Canandaigua, N. Y,
At many points in the Eastern United States and Canada,
other amateurs, tuned their receivers in an effort to compile
helpful technical data on ultra-short waves and particularly
the recently developed portable transmitters and receivers.
The instruments are similar to those designed for
use by newspaper reporters in regions where wires are not
immediately accessible or are cut off by storm or flood.
Stations W8EBS, operated by William F. Bellor, of
Rochester; W8AGU, Erwin J. Schaffer of Penfield, and W8NCM,
Francis L. Sherwood of East Rochester, were set up on Warden
Hill, west of Canandaigua Lake in Ontario County, whose summit
is 2,140 feet above sea level.
E. Willis Stratton of Rochester, operator of Station
W8MU, placed his portable station atop Bare Hill, on the east
side of the lake.
Ernest R. Roy, operator of W8XH, The Buffalo Evening
News short-wave experimental station, was ready to establish
communication with the portable broadcasters from his own sta¬
tion W8RV.
Listening posts were set up by amateur operators in
many cities and towns. There was one atop Hotel Statler,
Buffalo, and others were at Clearfield, Pa.; Toronto, Syracuse,
Elmira, Niagara Falls and New York City.
Operators took their receivers to high elevations in
an effort to pick up the signals.
Information received from listeners will be compiled
and forwarded to the American Radio Relay League at Hartford.
xxxxxxxxxx
In New Jersey a proposal for a State-owned and
operated non-commercial radio station to be devoted in part to
educational programs has been approved by the State Advisory
Committee on Public Recreation.
XXXXXXXXXX
- 5 -
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5/25/37
D. C. MAN GETS FAVORABLE REPORT FOR MARYLAND PERMIT
The application of a resident of Washington, D. C. ,
for a permit to build and operate a broadcasting station In
Salisbury, Md. , was given a favorable report this week by
Chief Examiner Davis G. Arnold in a recommendation to the
Federal Communications Commission.
The applicant, Frank M. Stearns, a dealer in gas
and oil and insurance, asked for assignment on 1200 kc. with
250 watts power, daytime. Although Mr. Stearns has never
lived in Salisbury, the report points out, he intends to
establish his residence there if the application is granted.
He has had no previous experience in the radio field.
Salisbury is a town of about 11,000 and is located
near the geographical center of the Delaware-Mary land- Virginia
peninsula.
XXXXXXXXXX
CHINA EXPANDING USE OF RADIO IN EDUCATION
Estimates of the total number of tube and crystal
radio receiving sets in China proper vary greatly with the
more conservative estimates placing the number at 300,000 of
which approximately 50,000 are in the Shanghai area, A. Viola
Smith, American Trade Commissioner, Shanghai, has just reported
to the Bureau of Foreign and Domestic Commerce.
The expansion in the use of radio throughout China
proper during the past two years has been very marked. This
expansion is particularly evidenced by the network of bamboo
poles and antennae wires to be seen on the humblest of build¬
ings in small villages throughout the country.
Official reports indicate that 2,000 radio receiving
sets were installed in primary and middle schools and in mass
education enters in 24 provinces during 1936 in keeping with
the program of the Ministry of Education to reduce illiteracy,
the Trade Commissioner reported.
Approximately 200 students which have been recommend¬
ed by various provinces and municipalities were enrolled in a
special class which was recently opened by the Ministry of
Education to train radio and motion picture operators. Plans
are now being formulated for a course in advance radio broad¬
cast work. A limited number of students of university stand¬
ing will be enrolled in the class. After a period of training
these persons will be detailed to various provinces and munici¬
palities to supervise the administrative and technical work
relative to the educational broadcast program, according to
the report.
XXXXXXXX
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5/25/37
SHORT-WAVE TRAP FOR SPEEDERS PROVES EFFECTIVE
Kansas City has taken to measuring excess automobile
speed with the radio short-wave and apparently is finding it
good, according to the St. Louis (Mo.) Globe Democrat. In its
early application, the measurement is acceptable as sound
evidence in traffic court and there is very little, if any,
bickering on the part of automobilists who are caught in the
short-wave net. Ordinary evidence, in which opinion and the
speedometer of a police motor usually takes high part, is thus
bolstered by science. A car passes a given point in the
attention of police officers and if it passes another given
point in less than so many seconds that car is speeding and
there is very little left to argue about.
Indeed, it seems that the arresting officers in
Kansas City are liberal in their timing and in their measure¬
ments, making it quite certain that the speed law of the city
has been violated when the short-wave evidence says it has. So
when an automobile driver is haled into court, accused of hav¬
ing speeded from point to point at a rate of say 41 miles an
hour where only 35 miles is permitted under ordinance provi¬
sions, it is certain that his rate of travel is in excess of
rather than under the evidence submitted.
As the plan functions, the Police Department deter¬
mines on a trial course without emphasizing its presence. The
short-wave radio sets - under license authority of the Federal
Communications Bureau - are set up 770 feet apart. If a car
passes one station at what appears to be a speeding pace, the
other station is notified and stop watches determine whether
the car in question arrives opposite the second radio post
short of the 14 seconds permitted. If it does, a conveniently
placed motor-cycle policeman catches the speeder and makes the
arrest and produces the soul-less radio-measured evidence in
court.
The fairness of the evidence thus provided is shown
by the fact that an automobile would average 55 feet per
second in traversing a measured distance of 770 feet in 14
seconds, while to break the law in fact and exceed the speed
of 35 miles permitted by law in Kansas City the vehicle would
have to travel only a little better than 51 feet a second,
or make the measured course in approximately 15 seconds. So
the 4 excess feet per second and the one second in violation
of the law is in favor of the speeding motorist and not on
the side of the evidence, as it might be.
The liberality on the side of certainty seems to
have struck a responsive chord in the hearts of first offenders.
Most of them appeared in court in good humor and paid their
fines on the spot.
XXXXXXXXXX
- 7 -
0/20/3 V
RADIO EXPORTS WELL ABOVE LAST YEAR
Radio exports last March increased 17 percent,
according to the U. S. Bureau of Foreign and Domestic Commerce,
despite a decrease in receiving set exports, but with large
increases in tubes and parts. Total exports last March were
$2,608,360, compared with $2,229,717 in March, 1936. The
radio export increase for the first quarter of 1937 was 24.1
percent.
For the first quarter of 1937, total radio exports
were $7,568,319, against $6,098,083 in the first three months
of 1936. This included 164,914 sets valued at $4,211,765 in
the 1937 first quarter, against 150,929 sets valued at
$3,719,044 in the first quarter of 1936.
XXXXXXXXX
RECEPTION OF U. S. LONG WAVE STATIONS POOR IN ENGLAND
The average reception of North American medium-wave
stations in Great Britain was not very good during the past
Winter, although occasionally, conditions were favorable, a
correspondent writes in World-Radio. South American reception,
on the other hand, was frequently good for long periods, he adds.
"In September, numbers of strong American signals
were received every time an attempt was made to span the
Atlantic", the writer continues. "Mixed bags of North and South
Americans were the rule, with WCAU, WOR, and LR1 the most readi¬
ly available stations. Earlyin October, the North American
group faded right away, and for several weeks LR1, LR3, and
their fellow South American broadcasters were the sole audible
representatives of the Ne?/ World.
"The United States and Canadian stations were again
heard at good signal strength earlyin November, but only for a
very few days. On occasions their fade-out was not complete:
there remained tantalizingly weak: carriers that promised to
become intelligible signals but never did. On about November
23 unusually large spots appeared on the sun. Possibly it
was a coincidence, but from that date reception was better,
and WCAU, WOR, etc. were received at good volume before mid¬
night. Once again the period of good reception was short, and
after the 28th the strength of North American signals again
became mediocre. However, the South Americans, with LR1 still
the loudest, continued to make themselves heard with regularity.
"The next period of first-class reception conditions
began about December 16th, when Lowell Thomas, Amos ,n* Andy,
and the rest stepped up from the short waves to send their
voices powerfully across the ocean via WBZ, WTIC, etc. There
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were also audible a medly of programs not rebroadcast, on
wavelengths between 10 and 200 meters. These included a short
symphony concert from WLWL; negro spirituals from WPG; boxing
commentaries from WAAB; descriptions of ice-hockey matches from
CJSB; and the offerings of WHN, WNEW, etc. Even with reception
conditions so favorable, WLW, the 500 KW Cincinnati giant, was
never a good signal. Indeed, WHAS, operating with 50 KW in
Louisville, a hundred miles beyond Cincinnati, was easier to
receive. After the 23rd, conditions began to deteriorate.
Only twice during February and March - on February
20 and March 18 - were the United States stations received
reasonably well. South American reception was also rather
moderate during these two months. At the time of writing -
early April - the season is making a. dying kick, distant KNX,
Hollywood, as well as WCAU, WOR, etc. , having been heard
recently.
XXXXXXXXXX
• • •
TRADE NOTES :::
President Roosevelt's signature made law last week
of legislation "modernizing" requirements for radio equipment
on ships. In adopting the requirements of the 1929 Interna¬
tional Convention on Safety of Life at Sea, the nev/ law sets
radio standards for more than 600 ships not covered by pre¬
viously existing statutes.
The motion made by attorneys for the 17 defendants
in the $1,700,000 restraint of trade suit by Transradio Press,
Inc., and Radio News Association, Inc., for leave to take
depositions of witnesses who live at a greater distance than
100 miles from New York and for an extension of time for this
undertaking was denied last week by United States District
Judge John W. Clancy, in New York.
Internal Revenue Bureau collections of the Federal
five percent excise tax on radio and phonograph apparatus in
April, 1937, were $331,618. 50, an increase of three percent
over the collections of $321,006.84 in April, 1936.
The "March of Time" is being transcribed in French
in three half-hour recordings for broadcast to radio listeners
in France. The project is under the supervision of Jean
Masson, Program Editor of Radio Luxembourg, in cooperation
with Time, Inc.
- 9 -
V
5/25/37
Marked curtailment during February in radio industry
production was due "primarily to seasonal slackening of activ¬
ities" according to the February report of the U. S. Bureau
of Labor Statistics just released. There was a decrease of
8.8 percent in February radio employment following a decrease
of 7.8 percent during the previous month of January. However,
the February employment was 5.3 percent above that of February,
1936, and the February employment index figure was 170.6 per¬
cent compared with 186. 8 percent during the previous month of
January.
An increase in the operating hours of WSAU, Wasau,
Wis. , from daytime to unlimited on 1370 kc. with 100 watts
power was recommended to the Federal Communications Comission
last week by Examiner P. W. Seward.
"Way is gradually being paved for the stock of the
Columbia network to go on the big board" , Variety reported last
week. "It is figured that it will have that listing by the end
of July. Application for the web's latest financial move has
not as yet been filed with the Securities Exchange Commission.
Nor have the newly engraved certificates been received from
the printer. "
A new and revised continuity schedule for the National
Broadcasting Company's Thesaurus service of transcribed pro¬
grams will go into effect June 21st. The revision will bring
the output of transcribed programs up to 15 different shows
weekly. The entire schedule fills more than eighteen and one-
quarter hours of broadcasting per week.
Walter Stiles, Jr. , amateur radio operator of Couders-
port, Pa., has been selected by a Board of five distinguished
judges for the William S. ?aley Amateur Radio Award and Mr.
Paley presented the award to Mr. Stiles at a luncheon at the
Waldorf-Astoria Hotel, New York City, Monday, May 24th. Anning
S. Pra.ll, Chairman of the Federal Communications Commission,
joined Mr. Paley in paying glowing tribute to Stiles and to
the 47,000 amateur operators in this country and Canada for the
public service they perform in times of national emergency.
Kenneth B. Warner, Executive Secretary of the American
Radio Relay League, spoke on behalf of his organization in
accepting permanent custodianship of the trophy symbolizing
the award to Stiles. The speakers were heard over a nation-wide
network of the Columbia Broadcasting System.
The Chattanooga Times has filed with the Federal Com¬
munications Cpramission an application to construct and opera.te
a radio broadcast station on a frequency of 1,120 kc., 500
watts night and 1,000 watts day, on unlimited time. The Times
requests the station be known as WASO, for the late Adolph S.
Ochs.
XXXXXXXXXX
10
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RCA TO ADVERTISE IN 200 METROPOLITAN DAILIES
Resumption of national newspaper advertising in nearly
200 metropolitan dailies, starting in June, as part of a greatly
increased advertising program on RCA Victor radio and phono¬
graph. sets, was announced in Chicago last week at the annual
convention of RCA executives and wholesalers.
The company will also continue its cooperative dealer
and distributor newspaper campaign, according to Thomas F.
Joyce, Advertising Manager. The campaign on phonographs will
stress technical and artistic advances in disc records during
recent years while the public has been busy listening to radio.
Magazines and farm papers will also be used. Lord and Thomas
handles the account.
XXXXXXXXX
MARKET FOR RADIO IN CUBA IMPROVING-
Cuba imported more than a million dollars worth of
radio sets, tubes, parts and accessories from the United States
in 1936 and prospects are exceedingly bright for the present
year, according to Assistant American Commercial Attache
Charles H. Ducote, Havana, in a report published by the
Electrical Division, Department of Commerce.
The trade in radio sets, tubes and parts makes up the
most important section of the electrical goods market in the
island, the report states, and during 1936 accounted for about
38 percent of the total imports.
American manufacturers dominate the market, although
some receiving sets of Dutch origin are being sold. Imports
of radio apparatus from the United States show seasonal
characteristics, the highest imports being in the month of
December. Practically all the important manufacturers of
radio apparatus in the United States are represented in the
Cuban market and, consequently, the competition is active and
keen, according to the report.
XXXXXXXXXX
GILMAN OPENS HOLLYWOOD OFFICE FOR NBC
The rise of Hollywood as a source of national network
programs and NBC's contemplated building project there have made
it necessary that Don E. Gilman, Vice-President of NBC's
Western division, be located at the film capital, it was
announced in New York this week by Lenox R. Lohr, President of
the National Broadcasting Company.
11 -
91
5/25/37
"This does not mean that Mr. Gilman will abandon
his San Francisco offices", stated Mr. Lorh. "The National
Broadcasting Company has no intention of curtailing its San
Francisco activities, and Mr. Gilman will continue to spend
a considerable portion of his time in that city. San
Francisco is one of the four cities in the United States in
which the National Broadcasting Company operates two broad¬
casting stations, and the major part of our sales and account¬
ing activities for West Coast operation is centered there.
"The great increase in radio program production
in Hollywood, however, has made it advisable that Mr. Gilman
establish his residence there. This will enable him to devote
a greater amount of personal attention to the interests of
the millions of listeners NBC now serves from Hollywood, and
to our plans for providing the finest broadcasting facilities
to keep pace with the program production in that city. "
XXXXXXXXX
PRESS ADVERTISING CANCELLED FOR RADIO CAMPAIGN
Approximately 85 newspapers throughout the East and
Middle West have been notified of cancellation of an all-
Summer schedule of color comic- section advertising for Huskies,
new dry cereal of General Foods Corporation, according to
Editor & Publisher.
"The notice of cancellation, sent out by Benton &
Bowles advertising agency, New York, said this action was
taken because General Foods had just signed up Robert (Believe
It or Not) Ripley for a radio program, which ’forces revision
of the budget', the article stated.
"The notice, which costs the newspapers from a few
hundred to several thousand dollars each, brought bitter com¬
ments from some newspaper men.
"One pointed out that 'newspapers made Ripley' only
to find that on the radio he is now their competitor for
advertising appropriations. This was cited as only one
instance of complications that grow from adaptation of news¬
paper features to radio.
"General Foods introduced Huskies a year ago in
black-and-white advertising in the East and Middle West. The
color comic program this year has already begun in some news¬
papers. It included eight to eighteen insertions of half or
tabloid pages. "
X X X X X X X X
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Liberal Bloc On FCC Reduced As Stewart Resigns . 2
No Outstanding Candidate for Stewart’s Job Rumored . 3
FCC Bar Rule Hits Lawyers Who Promise ’’Influence" . 4
Television Will Never Serve Entire U.S. , Says NBC Official... 5
"Amos ’n’ Andy" Seeking Another Radio Sponsor.. . 7
U. S. Agency Completes Thorough Radio Audience Survey . .8
FCC Issues New Rules For Safety Of Life At Sea . 9
N. Y. Officials Scrap Over Sale Of Radio Rights . 10
Fishing Trawlers Install Two-Way Radios . 11
CBS Signs Agreement With Guild . 12
U. S. Broadcasting Company Joins Mutual.... . 12
No. 1032
NOTE: THERE WILL BE NO ISSUE OF THE LETTER ON TUESDAY,
JUNE 1ST SINCE THE GOVERNMENT DEPARTMENTS ARE TO
BE CLOSED UNTIL THAT DATE.
9 i t#\\ ^
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’• ’ . . 1
LIBERAL BLOC ON FCC REDUCED AS STEWART RESIGNS
The minority liberal bloc on the Federal Communica¬
tions Commission was reduced this week with the unexpected
announcement of Dr. Irvin Stewart, Vice Chairman and head of
the Telegraph Division, that he would not be a candidate for
reappointment.
Along with Commissioner George Henry Payne, Dr.
Stewart has been one of the severest critics of the broadcasting
policies of the Commission. His reappointment for a seven year
term was assured, and no opposition was expected to his con¬
firmation.
He will, after June 30th, when his term as Commissioner
expires, assume the post of Director in immediate charge of
activities of the Committee on Scientific Aids to Learning,
which was set up by the National Research Council.
Dr. Stewart said the primary object of the new com¬
mittee would be to "find methods by which advances of science
can be applied to learning. " The committee will have its head¬
quarters in New York City.
Dr. Stewart has served on the Federal Communications
Commission for about three years and his reappointment at the
expiration of his term on June 30th had been expected. He has
notified President Roosevelt that he will not be a candidate.
Serving on the new committee will be Dr. James B.
Conant, President of Harvard University, Chairman; Vannevar
Bush, Dean of the School of . Engineering, Massachusetts Insti¬
tute of Technology; L. D. Coffman, President of the University
of Minnesota; Frank B. Jewett, President of the Bell Telephone
Laboratories; Ben D. Wood, Associate Professor of Collegiate
Educational Research, Columbia University; Bethuel M. Webster
of New York, Secretary, and Ludvig Hektoen, Chairman of the
National Research Council, member ex-officio.
The National Advisory Council on Radio in Education,
which has been in existence for six years, will make a report
soon to serve as a basis for some of the studies of the new
committee.
"The purpose of the committee", said the Council’s
announcement, "is to canvass, and to report to the Council, the
extent to which and means by which certain methods, data,
materials and products of science are and may be applied to
learning. "
- 2 -
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Experts will be retained to make special studies in
the fields of radio, sound recording and reproduction, motion
pictures, and others. A number of persons will be invited to
serve as consultants.
Dr. Stewart was appointed by President Roosevelt in
1934 for a three-year term. A Texan, he had been in the State
Department previous to selection for a post on the newly
created Communications Commission. During his service with the
Commission, Dr. Stewart has been particularly active in study¬
ing regulatory procedure with regard to telephone and telegraph
services.
XXXXXXXXXXX
NO OUTSTANDING- CANDIDATE FOR STEWART 1 S JOB RUMORED
Although many names are being discussed as possible
candidates for the $10,000 a year job being relinquished by
Dr. Irvin Stewart, Vice Chairman of the Federal Communications
Commission, rumors so far have been indefinite and scattered.
Indications are that even President Roosevelt was
taken unawares by Dr. Stewart’s decision not to be a candidate
for reappointment and that consequently he has had not had an
opportunity to survey the field of prospective successors.
The general belief in informed circles, however, is
that the President will select a man of good reputation and
recognized ability, probably with liberal tendencies, in view
of the criticism that has been directed at the Commission in
recent months.
Among the possibilities who are being discussed in
broadcasting circles is Hampson G-ary now G-eneral Counsel of the
FCC, who stepped off the Commission at the time Anning S,
Prall was named. At the time of Mr. Prall’s appointment,
President Roosevelt is reported to have thanked Mr. G-ary and
to have said he hoped to see him back on the Commission some
time later.
Two former Representatives, Swagar Sherley and D. J.
Driscoll have been mentioned, but it is doubtful whether either
would take the job. Mr. Sherley, formerly of Louisville, was
one of the group that made a survey of radio regulation prior
to the creation of the FCC and is close to the President. He
declined an offer to be Director of the Budget, hov/ever.
Mr. Driscoll made a reputation last year by his part
in the exposure of fake telegrams during the inquiries that
proceeded the passage of the Utility Holding Company Act. He
now is Chairman of the Pennsylvania Public Service Commission,
and it is believed he has no desire to return to Washington
politics.
3 -
5/28/37
Representative Fritz Lanham, of Texas, has been sug¬
gested also. As Dr. Stewart was from Texas, Representative
Lanham would keep the South representation on the FCC. In
addition, he probably would swing a large congressional back¬
ing. He is, moreover, a friend of G-ene Buck, President of the
American Society of Composers, Authors and Publishers.
Two other FCC officials who have been mentioned, are
T.A.M. Craven, Chief Engineer, and Carl Arnold, Assistant
General Counsel in charge of telegraph matters.
As Dr. Stewart's present term expires on June 30th,
the President's choice probably will be made within the next
fortnight.
XXXXXXXXX
FCC BAR RULE HITS LAWYERS WHO PROMISE "INFLUENCE”
The Federal Communications Bar Association this week
adopted an amendment to its canon of ethics denouncing the prac¬
tice of some radio attorneys who promise clients that they will
be able to exercise unusual influence on the Commissioners or
FCC employees.
The action comes on the heels of sharp criticism of
certain radio attorneys by George Henry Payne, who charged
during a recent New York address that a few radio lawyers were
ruining the profession In Washington,
The text of the Federal Communications Bar Associa¬
tion's rule, adopted upon recommendation of the Committee on
Professional Ethics and Grievances, of which Ralph A. Van Orsdel
is Chairman, follows t
"It is improper for a lawyer to represent, or
cause to be represented, or knowingly to permit any
other person to make such representation in his behalf,
that he is able, or, if employed, intends, to secure
favorable action from the Commission or any division,
member or employee thereof, on a basis other than on
the merits of the case to be presented and in accord¬
ance with the rules, regulations and practices govern¬
ing presentation to or action on such cases, whether
because of such attorney's prior employment by or other
connection with the Commission or because, for any other
reason whatsoever, he is in a position to exert, or to
cause to be exerted, influence calculated or intended
to bring about such action. "
XXXXXXXXX X
- 4 -
5/28/37
TELEVISION WILL NEVER SERVE ENTIRE U. S. , SAYS NBC OFFICIAL
Large portions of the United States will have to rely
solely on radio for their entertainment out of the ether as
television, even when fully developed, will be unable to serve
the total area of the country, according to C. W. Farrier,
television co-ordinator of the National Broadcasting Company.
Speaking today (Friday) before New York Advertising
Club, Mr. Farrier analyzed "The Present Status of Television."
His address follows, in part:
"At the present time, several experimental trans¬
mitters are being tested under operating conditions in this
country. Abroad, where the public is less exacting, trans¬
mitters sending pictures of less definition than some of the
experimental transmitters in our country are sending out regu¬
lar programs and receiving sets are being sold to the public.
"Certain standards of transmission, which may be
expected to meet the exacting demands of the American public,
have been tentatively proposed by the Radio Manufacturers’
Association. One of the transmitters built according to these
standards is now being tested by experimental operation in the
New York area. This transmitter was built by the Radio Corpora¬
tion of America’s Manufacturing Company and is installed in the
tower of the Empire State Building. It is being operated by
the National Broadcasting Company. The experimental programs
are fed to the transmitter from special studios in the RCA
Building in Rockefeller Center.
"Approximately seventy-five receiving sets have been
built and distributed over the metropolitan area in the homes of
the executives and engineers of the RCA group of companies. The
operation of these sets, together with the program reception
conditions at each point, are being carefully watched and stud¬
ied. As operating defects in the system develop, they are
being corrected.
"Data now available seems to point out that reliable
reception of the television signals is limited to points which
can be seen by a person who is standing so that his eye level
is that of the sending antennae. This is not wholly true, as
it has been found that reliable reception extends a few miles
further than the horizon line as seen from the antennae. It
has been found also that under certain conditions, reception
is good behind hills which obscure the point from visual obser¬
vation at the antennae. Under these limitations, reliable
reception of television from the present transmitter could be
expected at most points in the New York area which are within
fifty miles of the Empire State Building.
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"Beyond these points, the waves under most atmospheric
conditions seem to pass off into space and be lost.
"If present indications hold up under further test,
the television system for reaching the whole of the United
States becomes a very extensive one. For example, suppose that
the principal market areas of the country are covered by tele¬
vision service. Each one, with very few exceptions, would
require a separate transmitter, as they are rarely close enough
together to permit the covering of two or more areas by one
transmitter. In covering these principal market areas, but one
and one half percent of the total area of the country has been
covered. Such a system would, however, reach forty- five per-¬
cent of the people. A system for these principal market areas
vrauld require approximately one hundred transmitters for single
coverage.
"In the British Isles, television coverage is a compar¬
atively simple problem. This compact area with its dense popu¬
lation can be adequately covered by a small number of television
transmitters. It has been reported that ten transmitters have
been planned as the complete system of the British Broadcasting
Corporation.
"The total area of the United States will probably
never be covered completely by television service. Large por¬
tions of the country will, of necessity, obtain their radio
entertainment only from the present sound broadcasting system.
Television will be one leg of a dual system and will offer at
the best a limited coverage in this country.
"It is obvious that production and operating expenses
for television are going to be considerably higher than for the
present sound broadcasting system. Television with its accompany¬
ing sound necessitates really two complete control and trans¬
mission systems. Productions must be staged so that they can
be seen as well as heard. Thus expenses multiply.
"So as to alleviate the gloom cast by the above state¬
ment, let me state that pictures transmitted by the present
system are quite good. This quality is about the same as that
of the better grades of 16 mm. home movie projector. The sound
channel provides for the transmission of practically all audio
frequencies heard by the average human ear.
"The ultra short waves used in transmission are much
less subject to ’static’ than the longer waves used in sound
broadcasting. The exception to this last statement is that
television is very susceptible to interference from diathermy
machines and from unprotected ignition systmes on automobiles.
These sources of interference can be eliminated by the coopera¬
tion of the manufacturers.
6
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'•The television system as it is now developed pro¬
jects visual images and sound into the home in a most satis¬
factory manner. As an instrument of public entertainment and
education, it has a field all its own. It has limitations and
possibilities which it alone possesses. It is unlike the
motion picture house or the theater in that each television
audience is a small group and is in the home atmosphere.”
XXXXXXXXX
"AMOS * N* ANDY" SEEKING ANOTHER RADIO SPONSOR
Announcement was made this week that "Amos 'n' Andy"
are looking for another broadcasting sponsor. Their present
contract with Pepsodent Company expires next January 1st, it
was stated by Albert D. Lasker, President of Lord & Thomas,
and the famed radio comedians feel that it is time they were
changing the product they advertise.
The following statement was issued by Mr. Lasker upon
behalf of Freeman F. Gosden and Charles J. Gorrell ("Amos ,n*
Andy") :
"On January 1, 1938, the contract of the Pepsodent
Company with Amos !n* expires. The Amos *n* Andy contract is
the longest ever entered into in the history of radio. Even
more significant is the fact that after this record run
Amos ' n* Andy are today, as through the years, America's
favorite radio institution.
"Messrs. Amos *n* Andy have reappointed Lord & Thomas
as their exclusive advertising agency. They have expressed
themselves as feeling, however, that their association with
one product over so many years should be brought to a happy
end, and that sponsorship should be transferred to another
worthy major product. "
XXXXXXXXXX
The first major radio production of William Shakes¬
peare's plays featuring world renowned stars of the theater and
screen will be presented by the Columbia Broadcasting System
during July and August. Twenty-five ranking artists of the
stage and motion pictures, supported by more than 100 players
of note, will be cast in one of the most ambitious series in
the history of radio drama. The plays will be offered weekly
in a cycle of eight one-hour productions on a nighttime schedule
to be announced.
XXXXXXXX
- 7 -
5/28/37
U. S. AGENCY COMPLETES THOROUGH RADIO AUDIENCE SURVEY
One of the most thorough analyses of a radio audience
ever attempted has just been completed by the Educational Radio
Project, which analyzed ten thousand questionnaires returned
by persons who are regular listeners to the educational radio
series, "The World is Yours", according to an announcement by
the United States Department of the Interior, Office of Educa¬
tion.
Questionnaires, asking the listener's age, occupation,
place of residence, number of persons listening to the programs
with him, whether the subjects of the broadcasts were later
discussed and comments and criticisms regarding subject matter
and presentation, were mailed by the Office of Education Project
to 34,000 known listeners. Of those returned, 10,000, represent¬
ing a cross-section of the "The World Is Yours" audience, were
chosen for the analysis.
Every State in the Union was represented by persons
whose questionnaires were examined and tabulated. New York,
with 1,770 questionnaires topped the list. Ohio was second
with 1,127 and Pennsylvania was third with 937,
Analysis showed, also, that while the listening
audience was composed of persons of all ages and from all walks
of life, the series was most popular with students and profes¬
sional workers. Of the 10,000 questionnaires analyzed, 2,273 were
from grade school, high school and college students. The profes¬
sional group was represented by 1,651 questionnaires, while the
third largest group was skilled and unskilled workers, of whom
there were 1,156. Clerical workers were fourth, with 989 replies
tabulated. Farmers, social workers, invalids and retired busi¬
ness and professional persons completed the list of 10,000.
An unusual discovery revealed by the analysis was
that more questionnaires were sent in by men than women. There
were 5,416 men and only 3,804 women in the tabulated list.
According to the analysis, from one to 100 or more
persons listened to the programs over one radio. The average
number, however, was found to be four. The larger listening
groups, it was disclosed, ?/ere composed of persons in hospitals
or other institutions, and groups that met especially to hear
and discuss the broadcasts. A great majority of the listeners
heard the programs in their homes with their families.
The questionnaires showed that wherever more than
one person listened on the same radio, there virtually always
was a discussion of the programs* content following the broad¬
casts. In many instances, teachers declared that they set aside
a period each week for classroom discussion of the presentations.
- 8 -
5/28/37
"The World Is Yours", a half-hour program presented
Sundays from 4:30 to 5:00 P.M. , EDT, over the National Broad¬
casting Company's Red Network, is produced by the Office of
Education in cooperation with the Smithsonian Institution,
Washington, D. C. Each program dramatizes the history of some
important exhibit on display at the Smithsonian Institution,
To supplement the programs, a free monthly magazine, giving a
more detailed history of the different subjects, is offered to
interested listeners. The analysis shows that this magazine
is used extensively in the home, school and office. Most
listeners say they preserve their copies for future reference.
"The analysis, in the belief of many educators, is a
long step toward the production of more instructive and enter¬
taining educational radio programs. It will enable the producer
better to estimate the groups most interested in radio educa¬
tion and the localities where such broadcasts are best received.
It also will permit the producer to write his scripts with a
more specific audience in mind.
It is estimated that "The World Is Yours" has several
million regular listeners. Using the analyzed questionnaires
as a yardstick, the Office of Education will be able to esti¬
mate the number of listeners living in each section of the
country and the average age of the listeners.
XXXXXXXXXXXX
FCC ISSUES NEW RULES FOR SAFETY OF LIFE AT SEA
New rules and regulations designed to promote the
safety of life at sea in conformance with amendments recently
adopted to the Communications Act by Congress were approved
this week by the Federal Communications Commission.
The Act has for one of its purposes, "to make more
effective the International Convention for the Safety of Life
at Sea, 1929. " Pursuant to that Convention, the Commission
has heretofore issued its Ship Radiotelegraph Safety Instruc¬
tions of October 1, 1936, as amended March 10, 1937, This
week’s order (No. 29) supersedes these Instructions and, pur¬
suant to the provisions of Section 303(r) of the Communications
Act of 1934 as amended, a.dopts Ship Radio tele graph Safety Rules
which include the provisions of the Instructions heretofore
issued pursuant to the Convention with such changes and addi¬
tions as are immediately made necessary by the new law.
Section 15 of the Act repeals the Ship Act of 1910
as amended so far as it relates to the ocean and steamers
navigating thereon but the Ship Act is continued in force with
regard to vessels navigating the G-reat Lakes of the United States.
As to the last-named vessels the new law makes a specific excep¬
tion relieving them from meeting the new requirements with regard
to qualified radio operators and equipment; therefore, all
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5/28/37
previous rules and Instructions of the Commission under the Ship
Act remain in effect as to such vessels.
The Act extends to cargo ships of 1600 gross tons or
over the requirements of the International Convention for Promot¬
ing Safety of Life at Sea of a continuous radio watch by means
of at least two qualified radio operators. The Act provides,
however, that such cargo vessels, if fitted with an auto-alarm
approved by the Commission, shall not be required to maintain
such continuous watch by means of human operators provided that
such ships maintain a radio watch by means of a licensed
operator of the proper grade of at least eight hours per day in
the aggregate.
"The Commission is engaged in the revision and compila¬
tion of its Rules and Regulations relating to ship radio opera¬
tion with a view to consolidating all ship radio provisions in
a single document", a FCC statement explained. "The Commission
is aware of the necessity for certain changes in present require¬
ments in order fully to carry out the purposes of Congress as
disclosed in the new law. These changes are being made the sub¬
ject of study and an opportunity will be given to interested
parties (if possible prior to August 6, 1937) to express their
vie?/s with regard to the proposed new rules and regulations
prior to final adoption. "
XXXXXXXXXX
N. Y. OFFICIALS SCRAP OVER SALE OF RADIO RIGHTS
New York's Park Commissioner Robert Moses was sharply
criticized this week by Frederick J. H. Kracke, Commissioner of
Plant and Structures for having sold broadcasting privileges
for a Randalls Island track meet, to the exclusion of WNYC,
the city's station.
Mr. Kracke sent a letter to the Park Commissioner,
reminding him that a written agreement had been signed on May
13, 1936, which provided that WNYC should participate in the
broadcasting of events under the jurisdiction of the Park Depart¬
ment. He also pointed out that Mr. Moses had sold the broad¬
casting privileges for the track meet without open and compet¬
itive bidding. Mr. Kracke closed his letter with the observa¬
tion that fair-minded and ethical men recognized moral obliga¬
tions.
Commissioner Moses subsequently denied the charges.
He made public a reply he sent to Mr. Kracke in which he char¬
acterized the latter's letter as "a bedtime story, that has all
the charm of fiction without a trace of fact. "
1G -
\
5/28/37
Mr. Moses, who signed his letter to Mr. Kracke "Yours
for better bedtime stories”, pointed out that the Department
of Parks had succeeded in getting the intercollegiate games
here after an absence of thirty-four years. The radio contract,
he caid, was arranged between the Intercollegiate Association
and the National Broadcasting Company, the Department of Parks
not being a party to it in any way.
'•Just to show you what good sports we are, we are
asking the National Broadcasting Company to let the WNYC be
one of their network stations", Mr. Moses informed Mr. Kracke.
XXXXXXXX - ■
FISHING TRAWLERS INSTALL TWO-WAY RADIOS
Five Argentine fishing trawlers have been equipped
with radio telephone sets, having an effective two-way com¬
munication range up to 200 miles. The use of these sets is
still in an experimental stage, with the Post & Telegraph
Department at Buenos Aires utilized as the central station
at present. The trawlers can also communicate with each other,
or with other radio- equipped shipes in case of emergency.
This is the first Argentine fishing fleet to install
wireless, such a move being prompted by the mysterious dis¬
appearance during bad weather of one of the company's trawlers
two years ago.
XXXXXXXXX
NBC Transcription Service will put into effect June
1st a substantially reduced price schedule for "reference
recordings. " A graduating scale of discounts ranging up to
15 percent applies to the new rates for quantity orders.
According to a report from the U. S. Commercial
Attache at Shanghai, the Ministry of Education of China has
just ordered the distribution of an additional 5,000 radio
receivers to schools, to supplement the 2,000 radio sets now
installed in the schools. The Chinese Government electric
works at Shanghai which furnishes government supplies is
manufacturing the majority of the radio sets. The Central
Broadcasting station at Nanking has been instructed to furnish
daily broadcasts on educational and scientific subjects.
XXXXXXXX
11
'
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5/28/37
CBS SIGNS AGREEMENT WITH GUILD
The Columbia Broadcasting System, Inc. , announced
yesterday (Thursday) that it had concluded negotiations with
the representatives of the American Guild of Radio Announcers
and Producers and had signed an agreement covering hours, wages
and working conditions for announcers and assistant directors
employed in its New York studios.
The agreement, which runs for a period of five years,
is based upon a five day week of forty hours. The Guild is
recognized as exclusive bargaining agency for these employees.
The principle of a Guild Shop is recognized, with the Guild
agreeing to either accept into membership any employee engaged
by the Company or to waive this requirement of membership.
A scale of wages extending over a period of years is
provided and immediate salary increases were granted thereunder.
Announcers are to receive fees for commercial broadcasts. Pay
for vacations and during periods of illness are to be continued
in accordance with the Company’s existing policy. Arbitration
under the rules of the American Arbitration Society is provided
for.
XXXXXXXX
U. S. BROADCASTING COMPANY JOINS MUTUAL
It was announced last week that the United Broadcast¬
ing Company of Ohio will become a participating member of the
Mutual Broadcasting System, effective not later than December 1,
1937, The United Broadcasting Company owns and operates WJAY,
in Cleveland, 500-watt station, operating on 610 kilocycles;
WHK in the same city, 2500-watt station (1000-watts at night)
operating on 1390 kilocycles, and WHKC in Columbus, Ohio, 500-
watt station operating on 640 kilocycles.
On the date this arrangement becomes effective, WJAY
will become a full time Cleveland outlet and originating sta¬
tion for Mutual carrying a, majority of the programs, while WHK
will carry certain other additional Mutual programs.
XXXXXXXXX
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2400 CALIFORNIA STREET
WASHINGTON, D. C.
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INDEX TO ISSUE OF JUNE 4, 1937.
Radio Industry Seen Passing Last Year's Record.. . ......2
Philco Strike Ends In Compromise On Wages . . . 4
Canada To Build Two 50 KW Stations . . . 5
— Payne Non-Commital As He Is Suggested For N. Y. Mayor. . 6
Television To Borrow Movie Technique, Says Engineer . 6
Hearing Scheduled On Zenith Television Request . 7
_ Arnold Quits As Telegraph Director Of FCC . 7
FCC Opposes 5-Year Licenses, Dodges Press Decision . 7
— FCC Submits Data To Senate In Mackay-RCA Case . 8
* — Special Counsel Named By FCC In Segal-Smith Case . 8
Two Additional Frequencies Recommended For Mackay . 8
Trade Notes . 9
WRVA Hearing Scheduled For June 10 . 11
CBS Billings For May Up 45.9 % Over 1936 . 11
Wife Of G-eneral Harbord Dies . 11
Sparks-Withington Signs FTC Stipulation . 12
Huge American Television Service Foreseen By Hanson . 12
RCA Declares 87-J Cent Dividend . 12
i
\
No. 1033
RADIO INDUSTRY SEEN PASSING LAST YEAR* S RECORD
Although the present year is not half gone, all busi¬
ness indices point to a record year with radio set sales and
broadcast advertising ahead of last year*s peaks, according to
a survey of the industry just completed by Dun & Bradstreet , Inc.
“Upward trend of production and distribution in the
radio industry during the past three years has been extended
thus far in 1937", the report states. "Despite the new peak
established in 1936, sales have continued to widen, in keeping
with the revival of home building, with its concomitant demand
for the higher quality cabinets as pieces of furniture. The
expansion of rural electrification has opened a vast new terri¬
tory, as farmers are discarding their battery sets for the
electrically-operated types. The rise in automobile radio sales
has paralleled the mounting assemblies.
"Retail sales during the first four months of the cur¬
rent year ranged from 20 to 40 percent more than in 1936, despite
the interference of strikes and floods in some parts of the
country. Based on an average production gain of 30 percent for
the first quarter, which is the lightest one of the year, total
output for 1937 has been estimated conservatively at 10,310,000
sets. This would represent an increase of about 25 percent over
the new peak established in 1936 at 8,248,755 units, which was
36.9 percent larger than in 1935, as compiled by Radio Today.
"Broadcast advertising will not be subjected to the
usual Summer recession this year, as time sales booked already
are in excess of the 1936 reservations. If the current rate of
time buying be continued, broadcast advertising may rise to
$125,000,000 in 1937 from the peak reached in 1936 at $114,440,000.
Television experiments have progressed, but early marketing pos¬
sibilities are viewed as remote by the leading experts.
"Strikes interfered with production in some sections
during March and April, but in most parts of the country capacity
schedules have been maintained since the first of the year. For
the first four months output ranged from 25 to 50 percent larger
than in 1936. The upswing included all price classifications,
with more emphasis placed on the higher-priced sets, accompanying
the improved buying power of consumers. The gain in radio-
phonograph combination models, in some instances, ran up to 100
percent, and up to as much as 60 percent in automobile radios.
"Production for the first quarter this year, according
to the latest statistics available, was estimated at 1,675,000
sets, or an increase of about 30 percent over the 1,287,462
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turned out during the first quarter of 1936, thus extending the
rise from the all-time peak recorded for the latter year.
According to Radio Today, complete figures reporting all radio
sets built by licensed radio manufacturers in 1936 totalled
8,248,755, an increase of 36.9 percent over the 6,026,031 in
1935, the previous record high.
"National advertising broadcast has continued to
advance, the $6,345,000 set down for March, 1937, marking the
forty-second consecutive month that the total has been larger
than that for the comparative one of the year preceding. This
brought the total for the first quarter to $18,120,000, a new
high for the period, as it exceeded 1936 by 21.4 percent, 1935 by
30.1 percent, and 1933 by 114, 4 percent. For 1936 a peak was
established at $57,761,000, an advance of 22.3 percent over the
previous high set in 1935,
"In spite of the recession in January from the high
total of December, retail sales of radios during the first four
months of 1937 ranged from 20 to 40 percent larger than during
the comparative 1936 period. In some districts April sales
nearly were on a par with last December’s level. The usual lull
in May was broken by the demand for combination sets, induced
by the Coronation festivities in London, June distribution
doubtless will lag, as purchases will be deferred, awaiting
the display of the new 1938 models.
"Most of the sales have fallen within the $50 to $70
price range, with the well-known makes in the greatest demand
at $100. Some retailers have more than doubled last year’s
sales of combination radio-phonograph sets. Demand for battery
sets has started to wane, as farmers are replacing these with
electrically-operated units, as the rural electrification move¬
ment spreads. While more than 50 percent of the receivers were
sold on the installment plan, cash purchases were numerically
the largest since 1929 *,
"Outstanding in the features of the 1938 receivers
will be the larger number of models to employ the dial- type
automatic frequency control for easy, accurate tuning. In tube
equipment, some manufacturers are including, with the metal
types, glass rectifiers and glass power- output tubes. Many of
the unnecessary gadgets will be eliminated, because of the
increase of about 15 percent in manufacturers’ costs, due to
higher wages and material prices.
"Current price trend is upward, and any future revi¬
sions doubtless will be in the sane direction. Sets at retail
now cost from 5 to 12 percent more than a year ago, or an
average of about $5. The new 1938 models are expected to range
from 15 to 25 percent higher than last season’s merchandise, due
to the advanced costs of steel, lead, zinc, copper, lumber,
labor, and additional taxes.
6/4/37
"Even with this increase, prices of radio receiving
sets still will be low, when consideration is taken of the
array of new gadgets and refinements included. Some of the set-
makers have not named prices, fearing labor difficulties, which
would force them into union contracts. The mark-up of tubes
of 10 to 12 percent in January really advanced the 11 popular
tube types about 20 percent.
"All divisions of the industry reported a steady
improvement in collections, which were classed as very good
by manufacturers and wholesalers, and satisfactory by retailers.
Recurrent strikes caused a temporary slump in installment col¬
lections in some districts, but the write-off of doubtful
accounts has been insignificant this year. "
XXXXXXXXXX
PHILCO STRIKE ENDS IN COMPROMISE ON WAGES
The Philco strike, which began just four weeks ago
with a walkout of 8,500 workers, ended officially May 28th
with the signing of a new agreement between the Philadelphia
Storage Battery Company, makers of Philco radios, and officials
of the United Electrical and Radio Workers Unions affiliated
with the C.I.O.
A statement signed jointly by George E. Deming,
Executive Vice-President of Philadelphia Storage Battery Company
Reese Llewellyn, President of Local 101; Fred J. McCall, Chair¬
man of Executive Shop Committee of Local 102; and. C. F. Bradley,
President of Local 108, announced the termination of the strike
at a meeting of the two groups after the vote taken Thursday
afternoon and evening by the workers had been counted and had
been overwhelmingly in favor of acceptance of the new agreement.
While no details of the settlement were announced, it
is understood that the workers retained the 36-hour week, under
which they had been working, and compromised on their demand
for a ten- cent- an- hour wage increase by accepting a five-cent
Increase. Other points of disagreement were amicably Y/orked out
in the negotiations which began four weeks ago following the
calling of the strike.
Trucks began at once moving material that had been
lying in the shipping rooms and a general readying began in the
plant preparatory to a return of the workers, which had been
set for Tuesday, June 1st,
The Statement of the Company and Union officials
pointed to the fact that the month-long strike had been conduct¬
ed without a single case of disturbance, with little picketing,
with no police protection, and with a fine spirit between
management and workers.
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"Officials of the United Electrical and Radio Workers
Unions affiliated with the C.I.O., representing the workers in
the Philadelphia Storage Battery Company and the management
have reached an agreement on all points at issue, members of
the Unions have approved this agreement and work will be resumed
as rapidly as possible in the production of Philco radios",
the statement of Mr. Deming and Union leaders pointed out.
"Work has been suspended for four weeks while negotia¬
tions have been in progress on the new contract between workers
and the Company and every point at issue has been completely
explored and satisfactorily adjusted.
"During that period in which the strike was in progress
there has been a splendid demonstration of the fine spirit that
always has pervaded the Philco family. Picketing of the various
Philco plants has been carried on by small groups of men and
women and always in the most orderly fashion. There were no
efforts to use force, no disturbances, no bitterness engendered,
no need for police or other protection. Office workers came
and went about their duties, and there was evident a fair and
friendly spirit on both sides and a sincere effort to fairly
and completely adjudicate the points in dispute,
"It was made clearly evident that when there is a
mutual respect between management and workers, and the proper
relationship has been established over a period of years that
agreements can be amicably and intelligently worked out without
disturbance and without the use of any kind of force or pressure. "
XXXXXXXXXX
CANADA TO BUILD TWO 50 KW. STATIONS
Plans for the immediate construction of two 50,000
watt transmitters near Montreal and Toronto have been announced
by the Canadian Broadcasting Corporation. It is expected that
the two stations will commence operating about October 1,
according to Assistant American Trade Commissioner Avery F.
Peterson, Ottawa, in a report to the Department of Commerce.
The sites for the location of the stations have been selected
because of their proximity to the Dominion* s two principal
cities and centers of broadcasting activities, the report states.
The construction plans include the proposed erection
within two or three years of other high-powered outlets in the
maritime provinces and in Western Canada. It is also expected
that a high-powered shortwave station will soon be in operation
in the Dominion to permit overseas broadcasts, it was stated.
New exchange programs with Great Britain, the United States and
France will be sought according to the report.
XXXXXXXXX
- 5 -
PAYNE NON-COMMITAL AS HE IS SUGGESTED FOR N. Y. MAYOR
Commissioner George Henry Payne this week declined to
state that he is or is not a candidate for the Republican nomi¬
nation for Mayor of New York City, after his name had been put
forward by W. Kingsland Macy, Suffolk County Republican Chairman.
It was stated on behalf of the Commissioner that he
is now keenly interested in his work with the Federal Communi¬
cations Commission and has not taken any steps to enter the
New York mayoralty race. He denied, however, a published state¬
ment that he is not a candidate for the post.
Mr. Macy in a statement assailing the record of Mayor
LaGuardia said, in part:
"As one who, with the assistance of George Henry Payne,
was responsible for his nomination and election four years ago,
I do not hesitate to say that not only ha,s he been a mediocre
Mayor, but his contemptuous attitude toward the Republican Party
makes it impossible for that party to renominate him and retain
its self-respect.
"I believe the party would do better at the polls and
build better for the future if it were to nominate some Progress¬
ive Republican like George Henry Payne, whose work in the past
two years In the Federal Communications Commission has attracted
nation-wide attention. "
XXXXXXXXX
TELEVISION TO BORROW MOVIE TECHNIQUE, SAYS ENGINEER
Television will borrow from the motion picture tech¬
nique in the beginning, Ralph R. Beal, supervisor of research
of Radio Corporation of America, said in an address last week
at Hollywood before the convention of the Society of Motion
Picture Engineers.
Ultimately, however, he said, the peculiar needs of
the new art will necessitate the development of its own art
form, as well as a distinctive technique of presenting programs.
He intimated that such favors as television receives from the
sound motion picture in its early years will be returned with
interest in devices and methods developed for television which
also will lend themselves to adaptation to the Hollywood lot.
"You can teach us technique", he said, "but it must
be almost inevitable, if television is to achieve its own
requirements in technique that we shall one day be offering you
in return technical short-cuts to production, ”
He said there was good reason for his belief in that
the earlier development of radio and electronics, stimulated by
the coming of sound broadcasting, had incidentally given re¬
birth to the motion picture, by adding sound to sight,
XXXXXXXXX
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6/4/37
HEARING SCHEDULED ON ZENITH TELEVISION REQUEST
A hearing before an Examiner was scheduled this week
by the Federal Communications Commission on the application of
the Zenith Radio Corporation, Chicago, for a construction per¬
mit to erect and operate a television station using 42000-56000
and 60000-86000 kc. with 1 KW power. It will be held in the
FCC offices on June 30 at 10 A.M,
XXXXXXXXXX
ARNOLD QUITS AS TELEGRAPH DIRECTOR OF FCC
Carl F. Arnold, Assistant General Counsel of the
Federal Communications Commission in charge of telegraph matters,
this week tendered his resignation to become effective July 1st.
It was stated he will return to his post as Dean of the
University of Wyoming Law School,
Mr. Arnold’s name has been mentioned as a prospect
for appointment to the FCC to succeed Dr. Irvin Stewart, who
will leave the Commission on June 30th.
XXXXXXXXX
FCC OPPOSES 5- YEAR LICENSES, DODGES PRESS DECISION
The Federal Communications Commission has informed
Congress that it is opposed to legislation proposing 5-year
licenses for broadcasting stations and that the question of
curbing newspaper ownership of radio stations is one for Congress
to decide.
Anning S6 Prall, Chairman of the FCC, writing to the
House Interstate and Foreign Commerce Committee, regarding the
Anderson bill, said:
”The art of radio broadcasting is rapidly changing, . .
It is conceivable that the adoption of this bill would tend to
’freeze’ existing conditions. * . It has been the experience of
the Commission that changes in the allocation of frequencies may
be expeditiously accomplished under shorter term licenses.”
In another report to the same Committee on the Wearin
bill to separate newspaper and radio control, the Commission said:
”The determination of the necessity or desirability of
amending the Communications Act to add a statement of policy
along the lines of HR 3892 appears to rest within the discretion
of Congress. "
XXXXXXXX
- 7 -
6/4/37
FCC SUBMITS DATA TO SENATE IN MACKAY-RCA CASE
In accordance with a request sponsored by Senator
Borah (R. ), of Idaho, the Federal Communications Commission this
week submitted to the Senate a voluminous file of records in
the case of the Mackay Radio & Telegraph Company* s application
for a permit to establish an office in Oslo, Norway.
Senator Borah had asked for the information to deter-
mine whether charges that the FCC is fostering the development
of a monopoly in the radio communication field are correct.
Mackay1 s application was rejected by the Commission
on the ground that R. C. A. Communications, Inc., already serves
Oslo.
XXXXXXXXXX
SPECIAL COUNSEL NAMED BY FCC IN SEGAL- SMITH CASE
Anticipating a bitter fight, the Federal Communications
Commission this week appointed Samuel F. Kaufman, of New York
City, as Special Counsel to represent it in the disbarment
proceedings instituted against Paul M. Segal and George S. Smith,
Washington radio lawyers.
Mr. Kaufman is a noted trial lawyer, having formerly
been Special Assistant to Attorney General Cummings in the
prosecution of immigration fraud cases in New York.
Messrs. Segal and Smith have not yet filed their
answers to the charges brought against them by the FCC, but
they have until June 19th to do so.
XXXXXXXXXX
TWO ADDITIONAL FREQUENCIES RECOMMENDED FOR MACKAY
A favorable report was filed with the Federal Commun¬
ications Commission this week by Examiner R. H. Hyde on the
application of the Mackay Radio & Telegraph Co. for two addi¬
tional radio frequencies. The waves sought are 2848 kc. for
MilZ, New York, and 2784 kc. for WNEJ, Washington, D. C.
A similar recommendation was made recently upon the
application of R.C.A. Communications, Inc.
XXXXXXXXXX
- 8 -
.r«
•'» r-t
6/4/37
Granting of a permit for the construction of a new
broadcasting station at Festus, Mo. , was recommended to the
Federal Communications Commission this week by Examiner P.W.
Seward. The facilities requested are 1420 kc. with 100 watts
power, daytime.
A continued gain by NBC's Western Division as a source
of sponsored network programs is revealed in NBC's Program
Analysis for April. The Western Division supplied 26.0 percent
of the sponsored program hours last month, against 21.5 percent
in March of this year, and 23.6 percent in April, 1936.
The Eastern Division supplied 49.1 percent, against
53.1 percent in March and 44.3 percent in April 1936, and the
Central Division 24.9 percent, against 25.4 percent in March
and 32.1 percent in April, 1936,
The Continental Radio Co. , a subsidiary of the Scripps-
Howard Newspaper Alliance, has filed applications with the
Federal Communications Commission to change its name to Scripps-
Howard Radio, Inc.
The Federal Communications Commission will resume hear¬
ings in the telephone investigation now being conducted under and
pursuant to Public Resolution No. 8 of the 74th Congress, at
10 A.M. , Thursday, June 17, 1937, at the offices of the FCC at
Washington, D. C.
For the first time, NBC is issuing separate rate cards
for the Red and Blue networks. The two new cards, No. 23B and
No. 23R, effective July 1, now include 19 stations added since
last card was issued, Dec. 15. Rates are the same on the new
cards with the exception of WOAI, San Antonio, which takes the
new rate of $260 per evening hour.
The Federal Communications Commission has designated
Thad H. Brown to have charge of organizing and carrying forward
the work incident to the " Special study of the radio requirements
necessary or desirable for safety purposes for ships navigating
the Great Lakes and the inland waters of the United States",
provided for in Section 15 of Public Order No. 97, approved
May 20, 1937, (S.595).
Commissioner Brown said that a study of the preliminary
plans for carrying out the purposes of the amendment will be
started at once, and that plans will be announced as they are
developed.
9 -
• •' * A
1 ,
6/4/37
E. R. Cullen, Assistant Operating Engineer of the
National Broadcasting Company sailed on the French liner
"Normandie" Wednesday to make a survey of the ship’s radio pro¬
blems and to instruct the ship’s operators in the technique of
broadcasting. He will conduct several test broadcasts from the
high seas.
The United States Court of Appeals this week affirmed
the action of District Court in dismissing a suit brought by
Hearst Radio, Inc., to compel the heirs of the late M. A. Leese
to sell to it a majority of the shares of stock in WMAL,
Washington, D. C.
James W. Baldwin, NAB Managing Director, will attend
the meeting of the Texas Broadcasters* Association, at Houston,
Texas, on June 5.
Bernard Licht, trading as Licht’s Fur Factory, 102
West Twenty-Ninth St. , New York City, has been ordered by the
Federal Trade Commission to cease and desist from making certain
false and misleading representations, by means of radio broad¬
casts or otherwise, in connection with the interstate sale of
furs and fur garments.
The Telegraph Division of the Federal Communications
Commission this week issued an order covering the rates for
governmental communications by telegraph from July 1, 1937, to
June 30, 1938.
The National Broadcasting Company has informed its
sponsors and advertising agencies that, pending a general ruling
on Social Security payments, it has assumed the responsibility
of classifying sustaining artists as employees or independent
contractors according to its best judgment.
Tourist traffic through the NBC studios in Radio City
hit a new high figure of 10,665 persons over the Decoration Day
weekOend. Sunday’s total of 5,136 was the highest of the three-
day period.
The Federal Communications Commission this week granted
a construction permit for the erection of a new broadcasting
station to the Lincoln Memorial University, at Middlesboro, Ky. ,
to use 1210 kilocycles, 100 watts and unlimited time on the air.
XXXXXXXX
10 -
6/4/37
WRVA HEARING SCHEDULED FOR JUNE 10
A hearing on the application of WRVA, Richmond, Va. ,
for a construction permit to increase its power to 50 KW. on
its present frequency of 1110 kc. will be held before a Federal
Communications Commission Examiner the morning of June 10th,
The applicant also is asking permission to move its
transmitter and install a directional antenna.
Nine other stations and applicants have been notified
as respondents in the case. They are the “Voice of Detroit",
WISN, WMBG, KSOO, WCNI, WWVA, WLWL, WDEL, and WPAN.
XXXXXXXXXX
CBS BILLINGS FOR MAY UP 45.9$ OVER 1936
Time sales on the Columbia Network for May, 1937,
totalled $2,552,374, an increase of 45.9$ over the May, 1936,
total of $1,749,517.
Cumulative total for the first five months of 1937
reached $12,318,505, an increase of 27.2$ over the same period
last year ($9,683,007).
XXXXXXXX
WIFE OF GENERAL KARBORD DIES
Funeral services were held Sunday last in St. Bartholo¬
mew's Church, New York City, for Mrs. Emma Ovenshine Harbord,
wife of Major Gen. Janes G. Harbord, Chairman of the Board of
the Radio Corporation of America. Mrs. Harbord died Saturday
at her home in Rye. She was 70.
The honorary pallbearers were President Manuel Quezon
of the Philippines, James R. Sheffield, Major Generals Robert C.
Davis, Dennis E. Nolan, William D. Connor and Frank R. McCoy;
Brig. Gen. P. E. Pierce, Colonel David Sarnoff, Captain Fielding
S. Robinson and Captain R. Norris Williams.
XXXXXXXX
- 11 -
rt-
6/4/37
SPARKS-WITHINGTON SIGNS FTC STIPULATION
The Sparks-Wighington Co., Jackson, Mich,, engaged
in the sale of Sparton radios, has signed a stipulation with
the Federal Trade Commission to discontinue representations
that Sparton radio tone control makes reception possible under
any condition, and that by use of the Sparton, programs are
received clearly and distinctly from all American stations or
from various foreign countries or from outpost stations in
remote parts of the world.
XXXXXXXX
HUGE AMERICAN TELEVISION SERVICE FORESEEN BY HANSON
An American television service of "stupendous pro-*
portions", built with the help of dozens of sciences, is fore-
seen by 0. B. Hanson, Chief Engineer of the National Broadcasting
Company, in an article published in the current issue of the
RCA Review. Hanson describes the solution of some of the prob¬
lems encountered in NBC's television studios by borrowing
from all fields of science.
"To mention but a few", he writes, "it would be neces¬
sary to include optics, electronics, lighting, motion pictures,
radio engineering, acoustics, air conditioning, photography,
etc. The coordination of these sciences and the development
of techniques which are applicable to television is a continuing
process. The television field can only be briefly surveyed at
this time, but from present knowledge there is ample reason to
anticipate a public service of stupendous proportions, a medium
with new engineering techniques, new program ideas, new talent
and new commercial application. "
XXXXXXXXXX
RCA DECLARES 87^-CENT DIVIDEND
David Sarnoff, President of the Radio Corporation of
America, announced last week that quarterly dividend number five
of the outstanding shares of the Corporation* s $3.50 Cumulative
Convertible First Preferred stock was declared by the Board of
Directors.
The dividend is 87-|- cents a share, covering the period
from April 1 to June 30, 1937. It is to be paid on July 1, 1937,
to the holders of record of such stock at the close of business
on June 10, 1937.
XXXXXXXXX
- 12 -
*
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
i JUN 0
INDEX TO ISSUE OF JUNE 8, 1937.
Congress Hit For Failure To Curb Unions In RMA Address. . 2
May Time Sales Up 2 3% Over NBC . 3
Licensee Charged With Law Violation In Buying Station. . 4
FCC Would Be Free Of President Under Brookings’ Plan . 5
9,000,000 Radio Set Sales Seen For 1937..... . 5
Rise In Station’s Power Held Cut In Service Area . 6
Bureau Of Standards Cites Studies Of Ionosphere . 7
Tokyo Plans 150 KW Station, Sees Industrial Boom . 8
River Steamer At Capital Lacks Safeguard Of Radio . .....9
Trade Notes . 10
Zenith Sets Earning Record For Past Fiscal Year . 11
Mutual Billings For May $133,431.44 . 11
"Ghost Engineer” Will Step Up Signal Of CBS Stations . 12
No. 10034 .1l0v 03V
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June 8, 1937
CONGRESS HIT FOR FAILURE TO CURB UNIONS IN RMA ADDRESS
That Congress knows the dangers but fails to control
labor union intimidation and coercion of employees and also
employers was deplored by John W. Van Allen, of Buffalo, New
York, General Counsel of the Radio Manufacturers' Association,
in an address Tuesday to radio industry leaders at the Stevens
Hotel, Chicago.
While business and industry are strictly regulated,
the Wagner Labor Act fails to regulate or control union
operations, Mr. Van Allen told the Thirteenth Annual Convention
of the Radio Manufacturers' Association, and subjects minority
employees as well as employers to unrestrained acts of "outside"
pickets some of whom "hate all forms of government and all
laws and are expert in the art of discontent."
The annual convention of the national radio manu¬
facturers was presided over by Leslie F. Muter, of Chicago,
President of the trade organization. Officers will be elected
and the annual industry banquet will be held tomorrow (Wednesday)
evening at the Stevens Hotel. A national trade show of radio
parts and accessories will open Thursday.
"The Wagner Act pretends to give to employees freedom
of choice of union or non-union or whatever union, and of
representatives for collective bargaining", Mr. Van Allen told
the radio manufacturers, "but by failure to safeguard the exer¬
cise of these rights, freedom of choice is in effect denied.
"Congress knows these defects exist and still does
not remedy them, and persons in high places are using unsound
and specious arguments that the law, as is, with all its
defects, should be tried out and without amendment, with all
of the grief and burdens and tremendous losses which such a
tryout involves. If the law is admittedly defective, why wait
for some catastrophe to happen before taking steps to prevent it?
"Business and industry have been constantly subjected
to greater and more restrictions, sometimes wisely and some¬
times most unwisely, but labor unions have not, even though
the need for them has long been clearly apparent and is strik¬
ingly apparent today. We are becoming more and more nationally
regulated as well as state regulated, while those who sell
services to our employees (labor unions) remain unregulated."
6/8/37
While the Wagner Act confirms a century-old right for
collective bargaining of employees, Mr. Van Allen stated that
it does not protect minority employees and does not prohibit
threats and interference, coercion or intimidation in elec¬
tions by employees of their bargaining representatives.
"It permits competition by local unions and national
unions", Mr. Van Allen continued, "for the business of perform¬
ing services for hire in negotiations of compacts of employment,
but it does not prohibit the securing of such business by
them through threats, interference, coercion or intimidation
or other unfair methods. It does not prohibit a unionized
group from discriminating against non-union men.
"Today, freedom of men employed is menaced by unscrup¬
ulous practices of outsiders in seeking to procure, not by
request of a majority, but by threats, intimidations, coercion
and extravagant claims, the right to act as a bargaining agency
for hire and by outside pickets never in the employ of those
against whom they strike and who dislike - yes, hate - all forms
of government and all laws, and are expert in the art of discon¬
tent. Still State and Federal legislators fail to face the
reality by correcting the condition before irreparable damage
is done, and public officers, sworn to enforce the law, have in
too many instances acquiesced in these illegal and unwarranted
practices by refusing aid to maintain law and order by both
parties to the controversy.
"And for a time, at least until safeguarded in their
freedom of choice to Join unions or no unions, by amendment to
the Wagner Act, working men will be intimidated, coerced and
threatened by service unions, joined by outsiders zealous to
create disturbances, to compel employment of their services for
compensation. "
XXXXXXXXX
MAX TIME SALES UP 23% OVER NBC
Network advertisers for the eighth successive month,
and the tenth such month in the company's history, used more than
three million dollars worth of time on the National Broadcasting
Company during May. Their gross expenditures totaled $3,214,819,
against $2,561,720 for the same month a year ago, or an
increase of 25,5 percent.
May figures bring the total for the year to $16,944,720,
compared to $13,737,636 for the first five months of 1936, a
gain of 23.3 percent.
XXXXXXXX
- 3 -
6/8/37
LICENSEE CHARGED WITH LAW VIOLATION IN BUYING STATION
An Examiner of the Federal Communications Commission
this week cracked down on alleged irregularities in the double
sale of WMBO, of Auburn, N. Y. , and recommended that the
second transfer be disapproved.
The report by Examiner P. W. Seward was ma.de upon
the application of Roy L. Albertson to transfer control of
WMBO to the Auburn Publishing Co, Examiner Seward charged
that Albertson violated the Communications Act of 1934 by pur¬
chasing control of WMBO without asking the Commission* s approval
and then turned around and sold the station’s stock and thus
committed "an open, flagrant, and wilful violation of the law
and knowingly done by him, which discloses an utter disregard
of the law and the regulatory authority of the government."
The FCC was obviously asleep at the control, the
report brings out, in that Albertson bought the Auburn station
in February, 1936, and in the following October filed an appli¬
cation to increase the station's power,
"It will be noted that this application was filed prior
to the grant of the application to buy and take control of the
station", the Examiner said. "This application was considered
and granted without hearing on November 24, 1936. "
The Examiner found that the $15,000 with which the
Auburn Publishing Company has bought WMBO is "far in excess of
the valuation of the properties, "
Finally, the report criticized the conduct of the pub¬
lishing company, which already had assumed control of the
station before the application for a transfer was filed. The
Examiner said:
"The Auburn Publishing Company, transferee, is the
owner and publisher of the only daily newspaper published in
the City of Auburn, and if this application be approved and
license issued to it to operate Station WMBO , the Auburn Publish¬
ing Company would have a virtual monopoly on all local advertis¬
ing media available in the city of Auburn. It is true that news¬
papers published in other cities have a heavy circulation in the
city of Auburn - much in excess of the local paper - but there
is no local competition in the form of a. daily or weekly news¬
paper in the Auburn advertising field other than a ’throw-away
paper. ’
"The acts and conduct, as heretofore set out, of the
Auburn Publishing Company, transferee, since it bought the stock
of WMBO, Inc. ; the exercise of domination and control over
Station WMBO by it; and the obligation and expense of approxi¬
mately $15,000.00 incurred by it in rebuilding the station to
operate with increased power, all tend to show a flagrant viola¬
tion of the law and a disregard for the regulatory authority
of the Government."
XXXXXXXXX
a
FCC WOULD BE FREE OF PRESIDENT UNDER BROOKINGS’ PLAN
The Federal Communications Commission, along with
other independent Boards and Commissions of the Federal Govern¬
ment, would be maintained free of presidential control were
the recommendations of the Brookings Institution to be adopted.
In a report to the select Senate Committee on
Reorganization, the Brookings Institution this week cited the
danger that "newer policies of social control be the football
of politics."
A previous report submitted by President Roosevelt
to Congress recommended that most of the independent boards
be absorbed by various executive departments. The FCC was
slated to go back to the Commerce Department.
Regarding these independent agencies, the Brookings1
report stated:
"In case the independent boards and commissions
were placed within executive departments there undoubtedly
would be strong control established over sub-legislative and
administrative activities of the regulatory authorities.
"To the contention that large fields of public policy
are dominated and controlled by these commissions, the answer
is that they should be. It is not desirable that these newer
social policies be the football of politics.
"These boards and commissions are agents of Congress,
both for the making of investigations for Congress and the
formulation of sub-legislative policy. They are in no sense
agents of the President. In case the President should control
their administrative activity, he would almost of necessity
also control their policy. "
XXXXXXXXX
9,000,000 RADIO SET SALES SEEN FOR 1937
Record-breaking sales this year of 9,000,000 radio
receiving sets are expected by industry leaders who will be in
session all this week at the Stevens Hotel for the Annual Con¬
vention of the Radio Manufacturers’ Association. Also there
will be a national trade show of radio parts and accessories.
This year’s radio sales already are up 17 percent,
even before the present introduction of new, modern lines of
receivers.
Over 140 manufacturers will have exhibits at the
national trade show of parts and accessories, opening in the
Stevens Hotel exhibition hall Thursday, June 10, and continu¬
ing to June 13. This is a national trade show, not open to
the public. Also there will be an annual convention of the
Institute of Radio Service Men and other radio organization
meetings.
XXXXXXXXX
5
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‘
6/8/37
RISE IN STATION’S POWER HELD CUT IN SERVICE AREA
An increase in broadcasting power may not always
bring about a corresponding expansion of the listening area,
a report by an Examiner of the Federal Communications Commis¬
sion disclosed this week.
Submitting an adverse report on the application of
WMBH, of Joplin, Mo, , for a permit to transfer from 1420 to
1380 kc. and increase its power from 100 watts nighttime and
250 watts daytime to 500 watts, Examiner P. W. Seward said:
"In view of the facts adduced at this hearing, which
show that the coverage of the station as proposed would be
approximately the same for daytime service, and would be less
for nighttime service than as now operated, no additional
service would be rendered to the area proposed to be served.
Consequently a need for the proposed service has not been
shorn.
"No objectionable interference to the fair and effic¬
ient operation of any existing broadcast station now licensed
would be expected by the operation of Station WMBH as proposed.
The transmitting equipment and antenna, also the transmitter
site, seem to comply with the rules and regulations of the
Commission. However, if the application be granted, the towers
will, of course, have to be marked and lighted in accordance
with the instructions to be furnished by the Engineering Depart¬
ment of the Commission.
"The station, if operated as proposed, would serve a
smaller combined night and day area than it now serves. The
only benefit that might accrue would be to the applicant cor¬
poration by granting it the use of a regional frequency upon
which it expects to predicate increased advertising rates,
when in fact the service area will not be increased. The use
of a regional frequency as proposed would restrict the appli¬
cant's service area to a smaller territory than is now being
covered by the use of a local frequency. Such employment of a
radio frequency is not considered to be an economical use of
same, consequently the granting of this application would not
serve public interest, convenience or necessity."
xxxxxxxx
The total number of registered German owners of radio
receiving sets on April 1, 1937, amounted to 8,511,959, or
28,829 listeners more than at the beginning of the preceding
month, which represents an increase of 0.3 percent. Of the
total number of listeners, 607,643 were freed from the payment
of the monthly radio fee.
XXXXXXXXX
6 **
\LV
6/8/37
BUREAU OF STANDARDS CITES STUDIES OF IONOSPHERE
A resume of studies made by the U. S. Bureau of
Standards of the relation of the ionosphere to radio transmis-
sions is carried in the current Technical News Bulletin pub¬
lished by the Department of Commerce. A more complete account,
however, may be found in the June number of the Journal of
Research.
Following is the resume as carried in the Bulletin:
"The ionosphere consists of several layers of ionized
or electrically conducting air from 60 to 300 mile 3 above the
earth. These layers act as reflectors for radio waves and make
possible radio transmission over long distances.
'•Depending on the degree of ionization of a layer,
there is an upper limit to the frequency which, when the waves
are sent straight up, may be reflected from the layer. Radio
waves of frequencies greater than this upper limit, or criti¬
cal frequency, go completely through the layer and pass
entirely out into space. The critical frequency for each
layer varies with the hour of the day, season of the year, and
also over a long period which seems to be associated with the
11-year sunspot cycle.
"The air in these layers is ionized principally by
ultra-violet light from the sun. Consequently, the critical
frequency would be expected to be greater during the day than
during the night and greater during the Summer than during the
Winter. This is true for the lower layers, called E and F2
layers. The uppermost, or Fg layer does not behave so regularly
but attains its daily maximum critical frequency shortly after
noon from October to March and about sunset from April to
September. Strange as it may seem the maximum in the former
period is considerably greater than in the latter. After
sunset the critical frequency decreases but does not fall to
zero.
"The use of a multi frequency automatic recorder has
made it possible to secure hourly ionosphere records at the
Bureau since May, 1933. The recent adoption of the idea of
multi frequency automatic recording and the principle of this
recorder by the Carnegie Institution of Washington, British
Radio Research Board, Australian Radio Research Board, and
Harvard University will increase enormously the continuity
and value of ionosphere data, which will in turn greatly
increase our understanding of wo rid- wide ionosphere and radio
transmission conditions.
"The average critical frequencies and heights of the
several layers, as measured near Washington, D. C. , for each
hour of the day for each month from May, 1934, to December,
1936, inclusive, are plotted in BP1001 by T. R. Gilliland,
S. S. Kirby, N. Smith, and S. E. Reymer, which will be publish¬
ed in the June number of the Journal of Research.
- 7 -
6/8/37
"The upper limits for frequencies which can be used
for transmission over long distances are several times greater
than, but proportional to, the critical frequencies. There¬
fore, higher frequencies may be used for transmission during
the Winter day than at any other time, and higher frequencies
may be used during the Summer evening than at any other time
of the Summer day. Also, because of the increasedsunspot
activity, higher frequencies could be used in 1936 than in 1933.
"In addition to the critical frequencies, the heights
of the layers, and the amount of absorption of the radio waves
play an important part in long-distance radio communication.
The effects of these are discussed in the paper, and also two
types of irregular disturbances of the ionosphere, which affect
radio transmission."
XXXXXXXXX
TOKYO PLANS 150 KW STATION, SEES INDUSTRIAL BOOM
Japan will shortly build a 150 KIT broadcasting sta¬
tion in Tokyo and plans to construct other high-power trans¬
mitters to keep abreast of the world trend, according to the
Tokyo press.
"The Osaka Mainichi and The Tokyo Nichi Nichi", in
a special electrical section, state:
"In order to minimize the zones of radio interfer¬
ence, various countries have of late been devoting great
efforts toward curtailing broadcast power. Observing a strict
apportionment of wave lengths, nations are taking steps
reciprocally to avoid interference. In other words, they are
enforcing, in effect, a re,dio control,
"In this respect, considerably effective results
have been achieved so far between J apan and the United States.
In Europe, however, where many small countries are close
together, stations are comparatively near to each other. Con¬
sequently, a. confusion of wave lengths is practically inevitable.
"Hoping to mitigate the situation, the International
Broadcasting Union of Europe has been formed to study suitable
measures, but as might be expected, wave lengths cannot be
controlled as thoroughly on an international scale as they can
be on a domestic basis. Consequently, nations are individually
making efforts to check interference from abroad, at the same
tine protecting their own broadcasting wave lengths. In addi¬
tion, various nations are vieing to construct powerful radio
stations in order to carry out demonstrations and propaganda
against their neighbor countries*
- 8 -
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6/8/37
"In the light of this trend, a 500 kilowatt experi¬
mental broadcasting station has been established in the United
States. Plans are also under way in Mexico for the establish¬
ment of a 500 kilowatt station. In China, in addition to a
75 kilowatt station at Nanking at present, a new 100 kilowatt
station is projected at Peiping. In Manchoukuo, a 100 kilo¬
watt station has been opened at Hsinking.
"In the light of these circumstances and to enhance
the effectiveness of its broadcasting, Japan will soon real¬
ize the construction of a 150 kilowatt station in Tokyo, as
well as others. With the spread of the radio as explained
above, the development of the radio parts manufacturing
industry is an aspect that merits attention.
"The Hayakawa Industrial Co., Ltd., of Osaka is the
most noted (in Japan) as makers of radio sets. Among the
leading makers of radio parts are the Matsushita Electric
Works, Ltd., of Osaka, the Hayakawa Industrial Co., Ltd.,
Sumitomo Densen Seizosho, Ltd. and others. "
XXXXXXXX
RIVER STEAMER AT CAPITAL LACKS SAFEGUARD OF RADIO
An excursion steamer that carries many Washington
notables on short trips over the Potomac River operates with¬
out the safeguard of a radio communication set although it
has been in trouble twice already this season.
The steamer, the Potomac , has its first trouble
this year while carrying Vice President Garner and other not¬
ables to Quant ico, Va. , for the annual National Press Club
outing. This week it broke down again with 350 Washingtonians
on board. They were forced to spend IS hours on board while
an engineer went ashore in a small boat and telephoned for aid.
While recent amendments to the Federal law relating
to safety at sea broaden the scope of the requirement for
radio equipment on ships, they do not yet affect small river
steamers such as those operating out of the National Capital.
XXXXXXXX
Denial of the applications of the Curtis Radiocasting
Corp. , Indianapolis, and WKBV, Richmond, Ind. , for permits to
use 1500 kc. specified and unlimited hours, respectively, was
recommended to the Federal Communications Commission this week
by Examiner Robert L. Irwin.
XXXXXXXXX
- 9 -
D/O/Of
TRADE NOTES ::
According to an announcement by Admiral Luke McNaraee,
President of the Mackay Radio and Telegraph Company, Mackay
Radio operations on the Atlantic Seaboard have been placed in
charge of H, L. Rodman as General Manager. Mr. Rodman was
formerly General Superintendent at San Francisco. He will
have charge of domestic radiotelegraph service involving
Eastern cities, service with ships in the Atlantic region, and
the direct radiotelegraph circuits to points in Europe and
Latin America.
A working arrangement has been developed between a
radio station, WROK, of Rockford, Ill. , and a group of seven
weekly newspapers operated by the Associated Publishers of
Durand, Ill. In return for a halfOhour broadcast period,
the papers publish the station's publicity and advertisements.
Effective Sunday, September 26, 1937, Mutual Broad¬
casting System programs will be released over Stations WJAY
and WHK, Cleveland, of the United Broadcasting Company, subject
to the availability of these stations, it was announced this
week. Mutual network programs are currently heard in Cleveland
over WGAR.
B. J. Grigsby, former President of Grigsby-Grunow
Company, is reported to be the backer of a successful
restaurant at 79 E. Randolph Street, Chicago, Ill., known as
"Fish and Chips" where fish and potato chips are sold exclus¬
ively.
Charging unfair competition in the sale of "Cosray
Vitamin D Soap", the Federal Trade Commission has issued a
complaint against Los Angeles Soap Co. , trading as Cosray Pro¬
ducts Co. , 617 East First St. , Los Angeles. The respondent
advertises via radio and other media.
The granting of a construction permit to build a new
broadcasting station at Bend, Ore. , for operation on 1310 kc.
with 100 watts nighttime and 250 watts daytime, unlimited hours,
was recommended by Examiner George H. Hill to the Federal
Communications Commission this week. The application is The
Bend Bulletin.
An increase in power from 500 watts to 1 KW for KIEM,
Eureka, Cal. , was recommended to the Federal Communications
Commission this week by Examiner P. W. Seward.
XXXXXXXXXX
- 10 -
6/8/37
ZENITH SETS EARNING RECORD FOR PAST FISCAL YEAR
Commander E. F. McDonald, Jr. , President of the
Zenith Radio Corporation, Chicago, this week advised Zenith
stockholders that the company for the second consecutive year
exceeded all previous earning records, not excluding 1929.
Zenith's net profit after depreciaion and taxes are
deducted for the year ending April 30, 1937, amounted to
$1, 904,073.
"An indication of the company's rapid progress",
Commander McDonald said, "toward undisputed leadership in the
industry is the increase in the number of dealers now handling
its products. Two years ago there were 3,500 dealers distribut¬
ing Zenith products throughout the United States. A year ago
this number had grown to 13,000, and there are now over 20,000
Zenith dealers in the United States."
Regarding television Commander McDonald said:.
"Your company has consistently refused to be stamped¬
ed into prematurely placing on the market its television
apparatus in the present stage of development. Many problems,
both technical and commercial, are yet to be solved before
television can be offered to the public for general use. While
some publications have given space to the fact that we have
applied to the Federal Communications Commission for a tele¬
vision transmitter permit, this transmitter is intended to be
used primarily for experimental purposes. Our television
engineering department is keeping abreast of the progress being
made in this field and is continuing its development work. "
XXXXXXXX
MUTUAL BILLINGS FOR MAY $133,431.44
A 2. 7 percent increase in time billings is reported
for the Mutual Broadcasting System for the month of May, 1937,
in comparison with the same month's figures in 1936.
Total billings for May, 1937, were $133,431.44. For
the same month in 1936 they were $129,907. Cumulative bill¬
ings for the first five months of 1937 total $217,184.61, a
16.2 percent increa.se over the same period in 1936. For the
same period in 1936 they 3454 $789,847.98.
XXXXXXXX
11 -
6/8/37
"GHOST ENGINEER" WILL STEP UP SIGNAL OF CBS STATIONS
An increase in signal intensity equal to that which
would be produced by doubling the power of the transmitter is
about to be established on eight major Columbia stations and
will be extended ultimately to all CBS-owned or operated sta¬
tions. This improvement will be brought about this month with
only a minute addition of electricity used in the transmission
process.
The explanation for this seeming paradox traces back
to a small black box, about the size of a berry-crate and cover¬
ed with switches, dial and indicators. This unpretentious
looking gadget is known technically as an "automatic peak
volume limiter", and represents the result of years of research
by engineers of the Bell Telephone Laboratories. At the con¬
trol panel of a radio transmitter, it serves the role of "ghost
engineer" constantly on the alert for every fluctuation in the
intensity of the signal which is pumped into the broadcast
transmitter.
This month, after exhaustive tests, CBS is giving
the ghost engineer its first commercial employment at WABC,
New York; WBBM, Chicago; WCCO, Minneapolis and St. Paul, Minn. ;
WBT, Charlotte, N. C. ; WJSV, Washington, D. C. ; WEEI, Boston;
WKRC, Cincinnati; and KNX, Los Angeles. The new instrument
will also be installed in Columbia's new international short¬
wave transmitter, W2XE.
The "ghost" performs much the same function for a radio
transmitter that a thermostat performs for an oil burner or a
robot pilot for an airplane. It automatically keeps the signal
intensity of a program from increasing above a pre-determined
volume level. This level is slightly below the station's maxi¬
mum modulation or signal capacity. To go above this maximum
would mean distorted reception in the home or the destruction
of expensive equipment in the transmitter.
To stay below this danger point, engineers were hither¬
to obliged to dial down manually to an average signal intensity
of about 30 percent of modulation. With the aid of the fool¬
proof, automatic "peak volume limiter", they can safely boost
the average to 50 percent or more. To produce this same gain
in signal intensity without the help of the device, it would be
necessary to double the station's power.
Eventually it is expected that the new control unit
will be installed in transmitters throughout the entire
Columbia network.
XXXXXXXX
12 -
v.:Y'
S I
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
-
^ y- INDEX TO ISSUE OF JUNE 11, 1937.
1
Sykes To Address Opening Session Of NAB Meeting . 2
Rumors Focus On Gary, Lanham For Stewart’s Successor . 3
Muter Retained As RMA Head; Directors Elected . 4
Additional Waves Recommended For Hearst Radio, Inc . 4
RCA-Victor Boosts Wages At Camden Plant . . . 5
BBC To Give Extra Television Hour For Trade . 5
Radio Trade In Japan Shows Steady Growth . 6
Mason-Dixon Group Seeks Transfer Of Control . 6
April Radio Advertising Shows Seasonal Slump . 7
Soviet Television Expected To Cover Moscow Province. . 7
Ad Agency Men Called ’’Champion Deadbeats” . 8
Trade Notes. . . .9
Five Applicants Seek Texas Permit; One Chosen... . 9
Broadcasting Abroad. ...» . 10
FCC Issues Order Against Western Union . 11
Alfred J. McCosker To Receive Honorary Degree . 11
Canton, China, Seen As Growing Radio Market..... . 12
New KNX-CBS Broadcasting Center Ultra-Modern . 12
No. 1035
SYKES TO ADDRESS OPENING SESSION OF NAB MEETING
Judge Eugene 0. Sykes, veteran Chairman of the Broad¬
cast Division of the Federal Communications Commission, will
address the National Association of Broadcasters at its open¬
ing session Monday, June 21 st^. in Chicago. His topic will be
"The Duty and Responsibility of the Broadcasters."
The NAB will change the traditional convention
procedure, it was disclosed this week when James W. Baldwin,
Managing Director, announced the complete program for the meet¬
ing. Instead of holding the election of officers at the final
session, the NAB will select its leaders on the second day.
The Resolutions Committee will report at the same time.
While no major issues are on the NAB agenda, there
are indications that the copyright issue will be again injected
into the proceedings. There are also rumors thaX'NAB members
want to start a movement for the employment of a radio czar,
such as the movie industry has in Will Hays.
Several amendments to the NAB constitution and by¬
laws are to be considered. Among these will be an increase of
50 percent in membership dues.
The annual election of officers will occupy the chief
interest at the opening of the convention. Four officers and
six directors must be elected. The incumbent president, C. W.
Myers, of Portland, Ore. , may be a candidate for re-election.
There are a dozen or more other active candidates for the post,
however.
The first day’s session will include, besides Judge
Sykes’ address, speeches by the President, Mr, Myers, and the
Treasurer, Harold Hough, of Fort Worth, Texas, and a report by
Mr. Baldwin. There will be no afternoon session.
Following election of officers on Tuesday morning,
the Engineering Committee, headed by J. H. DeWitt, of Nashville,
will report.
The Wednesday sessions will be occupied with numerous
reports and papers. The convention will close with the banquet
Wednesday night, the 23rd.
XXXXXXXXXX
2
6/11/37
RUMORS FOCUS ON GARY, LANHAM FOR STEWART * S SUCCESSOR
With only a fortnight remaining before the term of
Dr. Irvin Stewart will expire as member of the Federal Communi¬
cations Commission, the broadcasting industry awaited eagerly
the appointment of his successor this week.
Rumors included a half dozen prospective candidates,
but the best informed reports centered about Hampson Gary?
now General Counsel of the FCC, and Representative Fritz
Lanham ( D. ) , of Texas.
Oddly enough, both are from Texas, as was Dr. Stewart.
Mr. Gary served a short term on the Commission before becoming
General Counsel.
The names of former Representative Driscoll, of
Pennsylvania, now Chairman of the State Public Utilities
Commission, and T.A. M. Craven, Chief Engineer of the Commission,
were still being mentioned, but not with such assurance as
those of Messrs. Gary and Lanham.
Possibility that a dark horse may be selected by
President Roosevelt was seen in his delay in making a choice.
One report had it, moreover, that Majority Leader Rayburn, of
the House of Representatives, had added confusion by endorsing
a candidate whose identity was uncertain.
Although last year there were rumblings of discon¬
tent from Western Senators that there is no far Westerner on
the Commission, it was understood that a group of the Western
bloc had agreed that they have no candidate and have endorsed
Mr. Gary. Senator Sheppard, of Texas, is reputedly supporting
Mr. Gary, while Senator Connally has endorsed a minor candi¬
date from his locality.
One thing in Mr. Gary’s favor is the forthcoming
International Radio Conference at Cairo. Because of the need
for diplomacy at this meeting, the State Department may suggest
that Mr. Gary, who was formerly U. S. Minister to Egypt, and
who had served in the State Department for 7-| years, had been
called to the Paris Peace Conference as an advisor by President
Wilson, would be a valuable member of the Egyptian delegation.
XXXXXXXX
- 3
. 5
■ .
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. *
■
6/11/37
MUTER RETAINED AS RMA HEAD; DIRECTORS ELECTED
Leslie F. Muter, President of the Muter Company,
of Chicago, was re-elected President of the Radio Manufacturers1
Association, this week at the closing session of the convention
in Chicago. It will be his fourth term.
Fred D. Williams, of Philadelphia, was re-elected
Treasurer, and Bond Geddes was retained as Executive Vice-
President in charge of the Washington office. John W. Van Allen,
of Buffalo, remains as General Counsel.
The RMA adopted an amendment increasing the number
of Directors from 18 to 25.
Directors who were re-elected are:
David Sarnoff, RCA; James M. Skinner, Philco; Paul
V. Galvin, Motorola Co. , Chicago, and Arthur T. Murray, United
American Bosch Co. , Springfield, Mass. , representing set manu¬
facturers; David T. Schultz, Raytheon, New York; Arthur Moss,
Solar Co. , New York, and Phil C. Lenz, Lenz Electric Co. ,
Chicago, representing parts manufacturers.
The seven new members are P. S. Billings, Belmont
Radio, Chicago; S. T. Thompson, Pilot Radio, Long Island City;
Ernest Alschuler, Earla Radio, Chicago; H. E. Osmun, Central
Laboratories, Milwaukee; Ray F. Sparrow, P. R. Mallory Co.,
Indianapolis; Jerome J. Kahn, Standard Transformer Co., Chicagor
and Samuel J. Cole, Aero vox Co., New York.
XXXXXXXXX
ADDITIONAL WAVES RECOMMENDED FOR HEARST RADIO, INC..
A favorable Examiner1^ report \vas filed with the
Federal Communications Commission this week on the applica¬
tion of Hearst Radio, Inc. , for additional point— to— point
frequencies to use in its press communication service between
New York, Chicago, and San Francisco,
Examiner R. H. Hyde recommended that Hearst Radio
be granted authority to use 10,090 kc., unlimited time on
WEEW, New York, WEEX, Chicago, and KGXi, San Francisco, and
15,565 kc. on WEEW and 7*625 kc. on KGXQ, nighttime.
XXXXXXXX
4
6/11/37
RCA- VICTOR BOOSTS WAGES AT CAMDEN PLANT
Wage increases ranging from 3 to 5 cents an hour
for 8,500 employees of the Camden plant of RCA Victor Co.
were announced by Robert Shannon, Vice-President, this week.
In a notice to the employees, Mr. Shannon said:
" Since the last general wage increase prior to the
first of this year, we have continued to study base rates of
pay. Our study shows that our rates are much higher than the
general radio industry. However, we are pleased to announce
increases effective Monday, June 7th, as follows i
"3/ per hour added to the present base rates
for all female employees.
"4/ per hour added to the present base rates
for all junior male employees.
”5/ per hour added to the present base rates
for all senior male employees.
"These increases apply to starting rates and
all intermediate steps.
"These increases are in keeping with our desire to
maintain base rates equal to or better than prevailing rates
in similar industries of this area."
XXXXXXXXXX
BBC TO GIVE EXTRA TELEVISION HOUR FOR TRADE
The British Broadcasting Corporation has announced
that, for trade purposes only, an extra period of television,
lasting approximately an hour, will shortly be given every
weekday morning between 12:30 and 1:30 P.M. A special film,
surveying the activities of television since the opening of
the service about six months ago, has been produced by the BBC
and will be shown every day in the extra hour. This transmis¬
sion is intended solely for the benefit of manufacturers and
those engaged in the sale of television sets, and not for the
entertainment of home viewers.
In order to effect certain internal adjustments and
to make improvements in studio facilities at Alexandra Palace,
arrangements have been made, with the concurrence of the Tele¬
vision Advisory Committee and with the approval of the Post¬
master-General, for television transmissions to be suspended
for a period of three weeks, beginning Monday, July 26th.
XXXXXXXXX
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6/11/37
RADIO TRADE IN JAPAN SHOWS STEADY GROWTH
"The radio trade of Japan has shown a steady and
healthy growth during the past twelve years", according to a
report carried in Broadcasting in Japan, just issued by the
Broadcasting Corporation of Japan. "As early as 1925, large
number of foreign nade parts and receiving apparatus had been
sold, but today almost all of these are seen replaced by those
of domestic manufacture.
"Since the introduction of approval system for wire¬
less receiving sets and parts by the Broadcasting Corporation
of Japan, seven years ago, the manufacturers have shown marked
improvements in the design and the quality of their products.
"These sets occupy nearly thirty percent of the total
receiver production, while nearly eighty percent of the parts
manufactured in the country are those approved by the B. C. J.
"The year, 1936 has proven to be the biggest in the
radio trade years of the past. The total number of receiving
sets sold during the year is figured at about 1,200,000 and
that of vacuum tubes for reception only amounted nearly 10,000,000.
The total sales amount of the sets and parts can be safely fig¬
ured at 40,000,000 Yen.
"Such was caused mainly by the phenomenal increase
in the number of listeners for the country and by the growing
tendency among listeners to exchange the old obsolete sets for
the better ones, added also by the marked increase in exports
trade demanded by neighboring countries.
"The future of Japanese radio manufacturing and trade
seems promising for many fundamental reasons: - Firstly the
radio listeners are expected to increase in greater rate for
many years to come, due to increase in the number and the
power of stations and its popularity among great mass of popu¬
lation; secondly, the manufacturing art of radio sets, develop¬
ing rapidly with the constant, technical improvement, encourages
export trade among oriental countries, as well as to Occident. "
XXXXXXXXX
MA30N-DIX0N GROUP SEEKS TRANSFER OF CONTROL
Six Eastern stations now controlled by Mason-Dixon
Radio Group, Inc. have applied to the Federal Communications
Commission for authority to transfer control to J. Hale Stein-
man and John F. Steinman.
The stations are: WDEL and WILM, Wilmington, Del.;
WAZL, Hazelton, Pa. ; WEST, Eanton, Pa. ; WGAL, Lancaster, Pa,. ,
and WORK, York, Pa.
XXXXXXXX
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APRIL RADIO ADVERTISING SHOWS SEASONAL SLUMP
Total broadcast advertising during the month of April
amounted to $11,309,319, according to the National Association
of Broadcasters. Gross time sales for the month were 2.7$ below
the level recorded for last month, the usual seasonal decline.
While national network and national non-network business showed
declines in volume, regional network and local advertising
experienced gains. Total sales were 28.1$ ahead of the level
as registered during April of 1936. The principal gain over
last year occurred in the national non-network field, the volume
of sales in this portion of the medium rising 53.8$.
As compared to last month, other major media follow¬
ed the usual seasonal tendencies in experiencing slight increases
in advertising volume. As against last April, national magazine
volume increased 17.6$, national farm paper volume 11.8$, and
newspaper lineage 3,4$. These increases compare to the 28.1$
gain experienced by broadcast advertising.
Non-network broadcast advertising remained at approxi¬
mately the same level as was recorded for March. Local sta¬
tion volume showed the only increase, rising 5.5$. All sizes
of stations showed marked increases as compared to last April,
the principal increase being a 47.2$ gain recorded by regional
stations. Of the geographical districts, the South Atlantic-
South Central Area showed the only increase of any importance
as compared to last month. All sections of the country recorded
gains in business as against last April.
XXXXXXXXX
SOVIET TELEVISION EXPECTED TO COVER MOSCOW PROVINCE
A high-fidelity television center is to be construct¬
ed in Moscow, the Signal Corps Bulletin of the War Department
notes. The Peoples Commissariat of Communications has approved
the construction project as presented by "Radiostroi. ,f This
project has been classed as especially necessary and urgent.
It is hoped that the transmission of high-fidelity television
will start in May or June 1937.
The principal equipipment for the Moscow Television
Center was purchased from the Radio Corporation of America.
This equipment is the very latest development of the Television
Radio Laboratories of the R. C.A. under the direction of Dr.
V. K. Zworykin, the inventor of the iconoscope.
The latest model of iconoscope will be used, thus
insuring high-fidelity transmission.
- 7 -
6/11/37
Due to the large number of elements transmitted it
is necessary to employ ultra-short waves.. The transmitter
will operate on a frequency of 49*.75 megacycles, that is* on
a wavelength under 6 meters. The unmodulated power brought
to the antenna will be 7.5 kw. When transmitting an all-white
field, the peak would reach 30 kw*.
On account of the comparatively high- powered U.K.V.
transmitter and the location of its antennas an the Shuhova
tower, which is 150 meters high (300 meters above sea level) ,
it is expected to be able to furnish high-fidelity television
within a radius of 50 to 60 kilometers* which takes in most of
Moscow province.
The sound transmitter will operate an a frequency
of 52 megacycles and will have a power of 7*5 kwv The small
difference between the carrier frequency of both transmitters
(2.25 megacycles) permits the reception of sound and images on
the same antenna, and this simplifies the scheme of reception*
The sound tract of the transmission covers a field of frequen¬
cies from 50 to 10,000 cycles per second* and this feature
provides considerably better artistic reproduction of sound
than is realized through the medium of other short-wave trans¬
mitters.
A stock of television receivers has also been pur¬
chased in the United States to be used as patterns in the
manufacture of similar sets by the Glavesprona factory.. These
receivers will be placed in a cabinet measuring 1 meter highr
65 centimeters deep, and 40 cent 5 meters wide.
The television images will be seen on the cathode
screen of the kinoscope tube by means of an inclined mirror
placed inside the tops of the cabinet, which can be elevateds
The image will average 14 by 19 centimeters.
The sound will pass through an electro- dynamic loud-¬
speaker located in the lower part of the cabinet.
XXXXXXXXXX
AD AGENCY MEN CALLED "CHAMPION DEADBEATS"
"Radio's champion dea.dbeats", says Variety, "are
the advertising agency staffnen, who like to go places* meet
blondes and guzzle expensive refreshments. They're happy to
allow radio actors, comedians, musicians, writers and directors
to lift the check.
"Some of the Broadway boys are grumbling about the
impositions heaped upon them by such admen. They wouldn*t
take that much social abuse of good nature and good fellowship
from a Hollywood scout. Nor would a Hollywood scout attempt
the inconsiderate and chiseling night life tactics of the
agency lads. "
XXXXXXXX
- 8 -
6/11/37
TRADE NOTES
September 26, 1937, has been set as the date when
Station WHK, Cleveland, Ohio, will join the National Broad¬
casting Company as a member of the Basic Blue Network, replac¬
ing WGAR. The network rate per evening hour will be $340.
WHK is owned by the Radio Air Service Corporation, an affil¬
iate of the Cleveland Plain Dealer and the Cleveland News. It
operates full time on a regional channel frequency of 1390
kilocycles, with a daytime power of 2500 watts and nighttime
power of 1000 watts.
The Federal Trade Commission has issued an order to
cease and desist against Allura, Inc., Sacramento, Calif.,
directing discontinuance of certain unfair methods of competi¬
tion in the sale of Allura, an eye lotion. Findings are that
the company made false and misleading representations in
advertising matter and radio broadcasts in violation of
Section 5 of the Federal Trade Commission Act.
A new broadcasting station at Coeur d’Alene, Idaho,
was recommended to the Federal Communications Commission this
week by Examiner P. W. Seward. The applicants, Clarence A.
Berger and Saul S. Freeman, propose to use 1200 kc. with 100
watts power, daytime.
A substantial increase in efficiency of coverage is
reported by Station WXYZ, NBC's Blue Network station in Detroit,
as the result of the installation of a new vertical radiator
antenna. The new antenna is a single self-supporting tower
located on top of the fifteen-story Maccabees Building, where
WXYZ’s studios are located. It is 283 feet in height and
towers 474 feet above Woodward Avenue in Detroit, The top
of the new tower is equipped with a turnstile antenna to be
used later for ultra- high frequency transmission,
XXXXXXXXX
FIVE APPLICANTS SEEK TEXAS PERMIT; ONE CHOSEN
Wichita Falls, Texas, with a population of only
43,690, apparently has attractions for would-be broadcasters.
Five applicants have sought authority to construct a station
there. Examiner John P. Bramhall this week recommended that
one, the West Texas Broadcasting Co. , be given a construction
permit. The applicant proposes to operate on 1380 kc. with
1 kw. power, unlimited hours.
Examiner Melvin H. Dalberg at the same time recommend¬
ed that the application of the Beaumont Broadcasting Associa¬
tion, Beaumont, Texas, be granted. The applicant asked for
authority to use 1420 kc. with 100 watts power, unlimited hours.
XXXXXXXX -9-
I
6/11/37
BROADCASTING- ABROAD
The broadcasting service in the Irish Free State is
a Government monopoly and is operated by the Department of Posts
and Telegraphs.
There are three broadcasting stations in the country.
The Athlone Station situated in County Westmeath is the central
high power station and provides a national service. The other
two stations are at Dublin and Cork.
All broadcasting programs are originated in the
Dublin station studios and are transmitted simultaneously from
the three stations. The local programs are designed to have a
distinctive flavor. There is a great deal of Irish music and
dancing, and talks in Irish and English on Irish history, music,
and literature. Descriptive broadcasts of Gaelic football and
hurling are also popular. Broadcasts to schools are given for
one half-hour daily, except Saturdays, Sundays and holidays.
Sponsored advertising programs have been tried out
during the past few years, but the Government does not encour¬
age such programs. At present the only sponsored program is
given by the Irish Hospitals Trust, Ltd. , advertising their
lottery tickets.
According to the U. S. Signal Corps, experimental
television transmissions of weather charts to airplanes are
being made in Berlin.
Broadcasting and newspapers are temporarily replacing,
as the educational media of the children, the primary schools
of Wellington district, New Zealand, in which, as a precaution
against the spread of infantile paralysis, children are not
permitted to assemble, according to Wo rid- Radio. Closing of
the schools soon after the long Summer recess would have meant
serious interference with educational progress, but Wellington
Education Board is keeping its teachers on duty. They prepare
daily lessons for their pupils, which the newspapers publish
each morning. Then the National Broadcasting Service comes
into use at 9:30 A.M. for an hour’s school session. The pupils
complete the daily task, their work being sent post-free to
the Education Board for correction. This unique emergency
scheme began with ” Arithmetic Day. ”
XXXXXXXXXXX
10 -
'
6/11/37
FCC ISSUES ORDER AGAINST WESTERN UNION
The Telegraph Division of the Federal Communications
this week directed that a Report end Order issue holding the
Western Union Telegraph Company's practice of imposing an
artificial delay on the handling, transmission, or delivery of
ordinary messages to be unjust and unreasonable, unjustly and
unreasonably discriminatory, and unduly and unreasonably pre¬
judicial.
It also directed that the Report and Order declare the
ratio between the charges prescribed by the Western Union Tele¬
graph Company for ordinary plain language and code messages
and urgent plain language and code messages to be unjust and
unreasonable, unjustly and unreasonably discriminatory and
unduly and unreasonably prejudicial.
Since the facts and evidence upon these questions may
vary as to the other carriers operating in the international
field, separate decisions and orders applicable to each of
them may subsequently issue as may be found necessary or proper.
XXXXXXXXX
ALFRED J. McCOSKER TO RECEIVE HONORARY DEGREE
Alfred J. McCosker, President of the Bamberger Broad¬
casting Service (WOR) , will receive an honorary degree of Doctor
of Laws at the John Marshall College of Law commencement exer¬
cises to be held at the State Norman School, Jersey City, N. J. ,
June 16th. Mrs. Franklin D. Roosevelt and Orwin W* Kaye,
Regional Director of the National Youth Administration, will
be similarly honored at the exercises.
Mr. McCosker will be cited, according to Dean Alexander
F. Ormsby, as one "who with able direction and incalculable
force for the spreading of knowledge has united in his exper¬
ience the two most far-flung instruments in education - press
and radio. " It was particularly fitting to honor Mr. McCosker,
Dean Ormsby explained, because "he was once such a youth as
John Marshall seeks to educate - a boy without considerable
financial resource."
Born in 1886, Mr. McCosker was educated in the par¬
ochial schools of New York City. He began his career as copy
boy to the late Arthur Brisbane, and during the years that fol¬
lowed he held every position on a. newspaper up to and including
editor. He joined WOR in 1923, became Director and General
Manager in 1926, and was made President in 1933. He was Presi¬
dent of the National Association of Broadcasters from 1932 to
1934, and since then has been a member of its Board of Directors.
He has been Chairman of the Mutual Broadcasting System since
it was organized in 1934.
XXXXXXXX
11 -
.
6/11/3?
CANTON, CHINA, SEEN AS GROWING RADIO MARKET
A market exists for radio receivers in Canton, China,
and vicinity, according to U. S. Consul General Irvin N. Linnell.
Apparatus of American and European manufacture is on sale by
dealers among whom competition is very keen. Inexpensive table
models of from 4 to 6 tubes are in greatest demand, those of
Amerioan make being the most popular.
"It is believed that the local demand for radios will
be stimulated somewhat by the completion of a powerful broad¬
casting station in Canton, which is scheduled to commence opera¬
tions very soon", the report adds.
"Electric current is available in the large cities of
the Canton district but not in the rural areas. Since it is
believed, however, that radios are in greater demand in urban
centers than in rural districts, probably there is a larger
market at the present time for current-operated receivers than
for battery-operated apparatus. "
XXXXXXXXXX
NEW KNX-CBS BROADCASTING CENTER ULTRA-MODERN
Photo-electric signal devices, built-in sound effects,
invisible control- room windows, inverted studio walls and
cavernous reverberation chambers - these are some of the features
which the country1 s leading engineers, architects and acousti¬
cians have devised for the new XNX- Columbia broadcasting center
in Hollywood.
Construction work has progressed rapidly since the
ground-breaking ceremony last April, and CBS officials are con¬
fident that the studios will be ready for its dedicatory broad¬
cast by next December. Even as workmen are completing the
foundation for the structure, which is to cover an entire city
block, experiments to produce new refinements in radio
architecture are being directed by William Lescaze, foremost
modernist architect responsible for the design; Earl Heitschmidt,
assistant architect in charge of Hollywood construction; Dr.
Verne Knudsen, University of California acoustical engineer
and consultant to the Columbia Broadcasting System; and CBS
engineering heads in New York and on the West Coast.
XXXXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF JUNE 15, 1937
U. S. Has More Radios Than Europe Sans Russia . 2
Radio Industry On CBS Net July 10 . 3
~ WRVA Makes Bid For 50 KW
Democrats Still Owe Columbia $18,860.31, Report Shows..
WLS "Hindenburg" Broadcast Duplicate Records Being Made
Jackson Heads New Radio- Aviation Group .
Transradio Suit Against Nets Settled . . .
17 Universities Offer Summer Radio Courses .
British Report Mrs. F. D. R. Gets $3,000 A Broadcast . 7
Trade Notes. . 8
Broadcasting Abroad. . 9
Working Hours Up; Employment Dov.n, U. S. Reports.... . 11
I. T. & T. Income Double What It Was A Year Ago . 12
Senate Hearings Near On Copyright Bills... . 12
WMCA Orders 40-Hour Week And Pay Raise . 12
No. 1036
^ ^ lO lO CD tO
June 15, 1937
U. S. HAS MORE RADIOS THAN EUROPE SANS RUSSIA
While incomplete, figures recently issued by the
International Broadcasting Office at Geneva indicate that the
United States is still well in the lead in the number of radio
receiving sets. In fact, this country probably has more radio
sets than all of Europe, excluding the Union of Russian Soviet
Republic, which was not included in the count. Nevertheless,
Europe gained more than 3,000,000 hadios in 1936.
This addition brought the total number of radio sets
in the “European zone1', as defined by the Convention of Lucerne,
to approximately 28,000,000. This count includes Spain at its
1935 figure, as no statistics are available on registrations in
1936.
The number of radio- equipped homes in this country on
January 1, 1937, was 24,269,000, and this figure did not
include “extra" sets or auto radios.
The Columbia Broadcasting System estimated later in
the Spring that there would be 25,000,000 radio families this
Summer but a total of 34,000,000 sets. The extra 9,000,000 was
obtained by allowing 4,000,000 "extra" sets for the radio-
equipped homes and 5,000,000 automobile radios.
Germany surpassed Great Britain during 1936 in the
number of receiving sets in Europe for the first time in several
years, the Geneva record shows. It reported 8,167,957 sets as
compared to 7,914,506 for England.
Greece more than doubled its supply of radio sets and
easily led in the percentages of increases. Only one country
showed a loss. That was Bulgaria.
The chart as issued by the International Broadcasting
Office follows:
— 2 —
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Dec. 31
Dec. 31
Percentage
1935
1936
Increase
Great Britain
7,403,109
7,914,506
6.91
Germany
7,192,952
8,167,957
13.55
France
2,625,677
3,218,541
22.58
Holland
946,844
989,115
4.46
Sweden
834,143
944,487
13.23
Czechoslovakia
847,955
928,112
9.45
Belgium
746,395
890,323
19.28
Denmark
609,226
652,255
7.06
Austria
560,120
593,815
6.01
Italy
530.000
622,692
17.54
Poland
491,823
677,404
37.73
Switzerland
418,499
464, 332
10.95
Hungary
352,907
365,354
3.53
Norway
191,378
240,251
25.54
Finland
144, 721
177,375
22.56
Roumania
127,041
162,766
28.12
Latvia
82,175
96, 331
17.23
Yugoslavia
81,385
96 , 660
18.77
Irish Free State
78,627
98,949
25.85
Egypt
41,370
57,633
39.31
Algiers
41,344
56,467
36. 58
P ortugal
40, 409
53, 659
32.79
Danzig
29,000
32,484
12.00
Lithuania
26,763
35,234
31.65
Estonia
24,193
37 , 800
56.24
Morocco
23,079
29,448
27.59
Bulgaria
17,213
15,000
12.85 decrease
Luxembourg
15,000
25,000
66. 67
Palestine
12,200
20 , 388
67.11
Iceland
12,183
12,938
6.20
Tunis
10,582
13,383
26.47
Greece
6,317
13,717
117.14
Turkey
6,175
9,033
46.28
Syria and Levant
4,307
6,345
47.32
X X X X
X X
XXX
RADIO
INDUSTRY ON
CBS
NET JULY 10
On July 10 on a national network of the Columbia
Broadcasting System, a program on "The Radio Manufacturing
Industry" will be presented by the U. S. Department of Commerce,
Under arrangements of the Radio Manufacturers’ Association with
government officials, the radio industry broadcast has been
arranged from the Washington studio (WJSV) of the Columbia
Broadcasting System at 2:30 to 2:45 P.M. , E. S. T.
The government broadcast on the radio industry is one
of the series of programs, in dramatic and interesting style,
covering the principal American industries. Material for the
government broadcast is being furnished through RMA and its
members. The steel, automobile, and electrical industries were
among recent programs covered by the Department of Commerce
presentations on the Columbia network.
XXXXXXXX
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6/15/37
WRVA MAKES BID FOR 50 KW
A strong presentation of the merits of Station WRVA,
of Richmond, Va* , in its application for an increase from
5,000 to 50,000 watts power was made before Examiner Robert L.
Irwin at the Federal Communications Commission last Thursday
(June 10). The hearing ran all that day and was not concluded
until Friday noon.
C. T. Lucy, of Larus & Brothers Company, owners of
WRVA, made the general statement regarding the station;
former Representative Frank D, Scott, of Michigan, acted as
counsel, and Paul Godley, well-known radio engineer, handled the
technical end.
Mr. Lucy dwelt at considerable length on the public
service of WRVA not alone to the city of Richmond but to the
entire State. He said that the station had put on 500 educa¬
tional programs in behalf of the University of Virginia free
of charge. Also approximately 2700 programs for the State
and Federal Departments of Agriculture were carried. Likewise,
offerings have been ma.de in behalf of the Virginia Conservation
Highway and other departments. There, too, was work done for
the Richmond Board of Health and local authorities.
Mr. Lucy said that for eleven years WRVA had main¬
tained remote control connections with these various public
departments and was the only station in Virginia which had
ever done this. Mr, Lucy also spoke of the excellent results
attained by the wooden broadcasting tower of Station WRVA, the
only one of its kind in this country and the tallest wooden
structure in the United States.
Among others participating in the hearing were John
M. Littlepage, representing WISN, of Milwaukee; Phil J.
Hennessey, Jr. , NBC, and George 0. Sutton. Decision in the
case was reserved.
XXXXXXXX
DEMOCRATS STILL OWE COLUMBIA #18,860.31, REPORT SHOWS
The Democratic National Committee still owes the
Columbia Broadcasting System #18, 860. 31, according to a report
filed last week with the clerk of the House of Representatives.
XXXXXXXXXX
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6/15/37
WLS "HINDENBURG" BROADCAST DUPLICATE RECORDS BEING MADE
So great has been the demand to hear a rebroadcast
of the remarkable recording made by Station WLS, of the
"Hindenburg" disaster, that though the station does not con¬
template broadcasting this recording again, it is having copies
made for the many people who have requested them.
"This recording in its entirety runs 40 minutes and
50 seconds on a 33-1/3 disc, " Glenn Snyder, Manager of WLS,
Chicago, explains, "That takes in the advance material that
was recorded prior to the crash and to the moment our men
left the field. There is no word of explanation as to why or
how it was made - just the actual recording made at the time.
"We are having made a 30 minute recording of this,
into which we have put a word of explanation at the opening
as to how it happened to have been made, and eliminated some
of the repetitions and other material not particularly inter¬
esting. This is a 78 and takes three twelve-inch records, both
sides, to complete it. As you know, anybody with a phonograph
could use this, and only some one with electrical transcrip¬
tion machines could use the 33-1/3.
"It is costing us some $300.00 to have the master
remade for phonograph record use. It will then take some three
18- inch records for the recording which records will cost us
something like $3.50 per set. We do not want to make any
effort to seel them and neither can we afford to give away
many at that price but a few such sets will probably be
available and could be obtained for cost. "
xxxxxxxxxx
JACKSON HEADS NEW RADIO-AVIATION GROUP
W. E. Jackson, Chief of the Radio Development Section
of the U. S. Bureau of Air Commerce, last week was elected
Chairman of the Radio Technical Committee for Aeronautics.
The Committee was organized two years ago under the
auspices of the Air Commerce Bureau. Composed of representa¬
tives from Government agencies concerned with aeronautic radio
and manufacturers and users of aeronautic radio, it investi¬
gates development of anti-static antennae, direction-finding
equipment, instrument-landing apparatus and ultra-high
frequencies.
XXXXXXXXXX
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6/15/37
TRANSRADIO SUIT AGAINST NETS SETTLED
The Transradio Press suit against 17 defendants for
$1,700,000 charging conspiracy in restrain of trade was
settled out of court last Thursday afternoon following several
days of negotiations between attorneys of two defendants,
the Columbia Broadcasting System and the National Broadcasting
Company, and counsel for the plaintiffs, Transradio Press
Service and Radio News Service, Inc.
Transradio announced that there had been a "satis¬
factory adjustment" with CBS and NBC. Details were unavail¬
able. Press associations, and individuals were mentioned only
by way that the suit against them had been discontinued.
Herbert Moore, President of Transradio, sa^d that
by mutual arrangement the details of the "adjustment would
not be divulged. He stated that he was "glad to see that it
has come to a satisfactory conclusion. "
XXXXXXXX
UNIVERSITIES OFFER SUMMER RADIO COURSES
Summer courses in some phase of radio education will
be given at the following institutions during the Summer of
1937, according to the National Committee on Education by Radio;
University of Florida, Gainesville; Northwestern
University, Evanston, Ill.; Butler University, Indianapolis,
Ind. ; Purdue University, West Lafayette, Ind. ; University of
Wichita, Wichita, Kans. ; University of Michigan, Ann Arbor,
Mich.; University of Montana, Missoula, Mont.; Columbia
University, New York, N. Y. ; New York University, New York,
N. Y, ; Ohio State University, Columbus, Ohio; Waynesburg
College, Waynesburg, Pa.; University of Texas, Austin, Texas;
Southern Methodist University, Dallas, Texas; Baylor University,
Waco, Texas; University of Washington, Seattle, Wash.; West
Virginia University, Morgantown, W. Va. ; and University of
Wyoming, Laramie, Wyo.
XXXXXXXXXX
— 6 —
6/15/37
BRITISH REPORT MRS. F.D.R. GETS $3,000 A BROADCAST
Although, the amount paid Mrs. Franklin D. Roosevelt
for her radio broadcasts has been studiously kept secret in
this country, the British Broadcasting Corporation, in a recent
issue of World-Radio announced blithely that the price paid by
a commercial sponsor is 600 pounds, or $3,000 for 15 minutes.
Devoting about two columns to a review of the First
Lady’s radio work, the BBC journal said, in part:
"It would attract notice, for a single address,
even in America, where large fees are an everyday occurrence.
That sum is, however, paid for a series of speeches of a
quarter of an hour each in a ’sponsored program’, s,s it is
called when an advertiser pays for, or sponsors, a broadcast
for the purpose of an advertisement.
"Mrs. Roosevelt’s popularity and, therefore, her
advertising value are attested by the fact that her ’fan mail'
amounts to approximately 100,000 letters a year. This number
includes letters relating to her broadcasts and other matters.
"In spite of the large fees she receives, Mrs.
Roosevelt makes no money by her broadcast addresses. All her
fees are sent direct to a philanthropic society, which dis¬
tributes the amounts to the various institutions to be benefited.
"Like every other broadcast speaker, Mrs. Roosevelt
is not immune from public criticism. On one occasion, it has
been related, a man, amazed at hearing the large fee she
received, wrote that, in his opinion, no broadcaster was worth
so much money.
"'I think that you are perfectly right that no one
is worth two hundred dollars a minute’, Mrs. Roosevelt replied.
’I never dreamed for a minute that I was. I do not feel that
this money is paid to me as an individual, but that it is paid
to the President's wife. It puts money into circulation. The
money is spent for a good purpose, and these people would not
otherwise be helped. Therefore, I think I am perfectly justi¬
fied in doing it. ’
"The result of doing exactly what the director desires
is that Mrs. Roosevelt has become an exceedingly efficient
speaker 'on the air’, with a technique so enormously improved
that the people who engage her feel that they get full value
for their money, even though it costs them over six hundred
pounds every time she broadcasts for a quarter of an hour. "
XXXXXXXXX
~ 7 ~
\
6/15/37
TRADE NOTES
Plans for developing export trade were considered at
length during the Chicago convention of the Radio Manufacturers
Association by their Export Committee. S. T. Thompson, of
Long Island City, will continue for another year as Chairman
of the Committee, but during his absence in Europe, the Export
Committee meeting at Chicago on June 8th was conducted by
J. F. Weldon, of Chicago.
New short-wave equipment, with the call letters
W-9XSB, has been acquired by the South Bend (ind. ) Tribune ,
which also operates stations WSBT and WFAM. It was used for
the first time at a recent Notre Dame athletic contest. The
announcer covering the event used a short-wave pack trans¬
mitter complete in one unit carried on his back. This trans¬
mitter sent the broadcast to the local studio of WSBT-WFAM,
from which point it was fed into regular lines and broadcast
on long wave transmission.
The International Radio Corporation, manufacturers
of Kadette radios, has established an Eastern office at 11 West
Forty-second Street, New York City, and is preparing plans for
a national advertising campaign in the Fall. Newspapers will
be the backbone of the drive. E. H. McCarthy, formerly with
General Electric and Grigsby-Grunow, has been named Eastern
Sales Manager.
April sales of Canadian set manufacturers, according
to statistics of the Canadian RMA, totaled 13,494 sets with a
list value of $1,000,723, compared with April, 1936, sales of
8,340 sets worth $703,925.
Of the Canadian sales last April, 9,147 were A. C.
sets valued at $735,293; 1,263 battery sets valued at $90,738,
and 3,084 automobile sets valued at $174,692.
Information from Assistant Trade Commissioner Joe D.
Wal strom at Buenos Aires, reveals that while chain broadcast¬
ing has been used in Argentina to a limited extent for some
time, a special broadcast took place on May 4 in which Presi¬
dent Justo spoke on behalf of the Government’s new 200,000,000
peso internal bond issue, for repatriating the foreign debt.
Hie broadcasting stations included all of those in Buenos Aires
plus others in 10 interior cities.
6/15/37
"Clipping” of radio broadcasts cn the death of John
D. Rockefeller, as well as dramatizations of his life, has been
begun by the Ivy Lee-T. J. Ross public relations office, accord¬
ing to Newsdom. They are collecting copies of all programs
dealing with the death of the oil magnate. When they have
compiled the data, they will present it to the Rockefeller
family.
Armstrong Perry, for five years Director of the
Service Bureau of the National Committee on Education by Radio,
was one of the passengers injured when the plane in which they
were flying from Brazil to Caracas, Venezuela, crashed in a
Venezuelan jungle on April 22nd. Mr. Perry is said to have
been very seriously injured and unconscious for nine days.
According to the latest report, the survivors were rescued on
May 7th, and Mr. Perry is recovering in a Caracas hospital.
Since leaving the National Committee on Education by Radio
in January, 1936, Mr. perry has devoted himself to freelance
writing and was in Venezuela collecting material.
One of the most extensive radio-news schedules in
the country was inaugurated last week by Scripps-Howard1 s
Cincinnati outlet, WCPO. James Hanrahan, Manager of the
station, said that at least 14 news broadcasts will be
scheduled daily, in addition to numerous short news flashes.
XXXXXXXXXXXX
Radio broadcasting in Cuba is controlled and regu¬
lated by the Direccion de Radio (Radio Bureau) of the Depart¬
ment of Communications. Although there is widespread affirma¬
tion of the need for modern legislation and regulations cover¬
ing all phases of the broadcasting situation, and proposed
measures have been prepared for adoption by the Cuban Congress,
no legislation has been adopted since the original broadcast¬
ing control Decree Law No. 186 of February 12, 1925, and modi¬
fications which have appeared from time to time, according to
the U. S. Commerce Department.
"Much has been said concerning the non-enforcement
of existing legislation which, incomplete and defective as it
may be, would if applied very likely alleviate at least in
some degree, the unfavorable conditions with which radio set
owners have to contend in the reception of broadcasts from
Cuban stations", the report states.
9
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' '
"Considering economic importance of the Island, its
size and geographical position of proximity to the United
States, Cuba is served by too many broadcasting stations.
These are highly concentrated in Habana and, with few excep¬
tions, are not satisfactorily nodulated. There is, therefore,
a great deal of interference not only among Cuban stations
but among Cuban and foreign stations, both long and short-wave.
"One of the best Cuban stations is constructing a
modern establishment in the outskirts of Habana, using a 300
foot vertical radiator with all equipment of American manu¬
facture. The new station has 25,000 watts power and will be
the largest in Cuba. It is planned to set up the studio in
Habana modelled after the most up-to-date in use in the United
States. The building and antenna are almost completed and the
station equipment is being set up. The new station should do
much to raise the general level of radio broadcasting on the
Island.
"There is no great tendency to improve radio pro¬
grams. A very few stations have continued their efforts toward
improvements and have met with a slight measure of success, but
the usual program is marked by monotony and excessive advertis¬
ing announcements. The quality of station equipment in most
cases is mediocre and a large proportion of the apparatus is
of local production and assembly. There is great use of records,
but little effort to diversify the record selections.
"The broadcasting time chares run from as low as
$5 an hour to $50 an hour. Considerable use is made of
'menciones de 35 palabras' ( announcements of 35 words.)."
Important modifications and extensions of the Italian
broadcasting service will shortly be begun as the result of
a convention just 3igned between the Minister for Communica¬
tions and the Board of Management of the EIAR, according to the
Rome correspondent of World- Radio. The Rome short-wave sta¬
tion is to be greatly strengthened. There will be two trans¬
mitters with a power of 100 KW in the aerial for wavelengths
between 49 and 31 metres, two transmitters of 40 KW power for
the wavelengths between 25.19 and 16 metres, and a third trans¬
mitter of 50 KW power, with direct ional aerials, for various
wavelengths. This group of transmitters, to be installed in
the grounds of the present Rome short-wave station at Prato
Smeraldo, will, it is hoped, allow 2R0 to be heard perfectly
under any conditions all over the world.
The power of Naples station is to be increased from
1 KW to 10 KW, while Turin will have an auxiliary station of
5 KW power. Two new stations are to be built by the end of
1937; one in Ancona and the other at Catania, in Sicily. To
facilitate broa.dca.sts of speeches by the Duce and other mani¬
festations in Piazza Venezia., special lines will be laid under¬
ground between this point and the studios of the EIAR in Via
Montello, Rome. The estimated cost of the broadcasting improve¬
ments, for the year in course, amount to over 21 million
lire ($1,115,000) and they are to be begun shortly.
XXXXXXXXX
10
6/15/37
WORKING- HOURS UP; EMPLOYMENT DOWN, U. S. REPORTS
Increased working hours and a slight decrease in
employment in the radio manufacturing industry were detailed
in the latest report for March, 1937, of the U. Se Bureau of
Labor Statistics, the Radio Manufacturers' Association notes.
Smaller radio employment in March was said in the government
report to be seasonal.
Radio factory employment in March decreased 4.5 per¬
cent but was 6 percent higher than March, 1936. The March, 1937,
radio employment index figure was 163 percent, compared with
February index figure of 170,6 percent.
Radio factory payrolls last March increased 2.3 per¬
cent over the previous month and were 21.2 percent above March,
1936. The March index figure on payrolls was 127.1 compared
with 124.2 during the previous month of February,
Average weekly earnings last March of radio factory
employees were reported at $20.36, an increase of 7.1 percent
over the February average earnings of $19.11, and the March
earnings were 14.2 percent above March, 1936. The March, 1937,
national average weekly earnings of all manufacturing industries
was $25.54, while the national average of all durable goods
manufacturing establishments was $28.78, both increased a small
percentage above February.
Average hours worked per week in radio factories last
March were 36.5 hours, an increase of 7.5 percent over the
February average of 34.1 hours, and the March average was 10.8
percent above that of March, 1936. The national average work
hours of all manufacturing industries during March was 41.0
hours, while the national average work hours of all. durable goods
manufacturing industries was 42.4 hours, both increased slightly
over one percent as compared with February.
Average hourly earnings last March of radio factory
employees was 56 cents, the same as the previous month of
February, and they were 3.5 percent above average hourly earn¬
ings during March, 1936. The National average hourly earnings
of all manufacturing industries in March, 1937, was 61,3 cents,
while the national average of all durable goods manufacturing
industries was 67 cents, the former increased 2.1 percent and
the latter 3 percent over the previous month of February.
XXXXXXXX
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I. T. & T. INCOME DOUBLE 7/HAT IT WAS A YEAH AGO
The consolidated net income of the International Tele¬
phone & Telegraph Corporation for the three months ended March
31, 1937, amounted to $1,658,438, as compared with $815,968 for
the three months ended March 31, 1936, according to a report
just made to stockholders.
No incomes or losses accruing from Spanish subsid¬
iaries have been included in the consolidate income accounts
for either of the quarterly periods.
XXXXXXXXXX
SENATE HEARINGS NEAR ON COPYRIGHT BILLS
Early hearings on three copyright measures pending in
the Senate, two of them favored by the broadcasting industry,
were forecast this week.
The Senate Patents Committee has scheduled hearings
on a patents measure to begin June 22nd and expected to last
two days. Immediately following these hearings the Committee
plans to invite testimony on the three copyright measures,
according to the Committee Clerk. No definite date has been set
The measures pending before the Committee from last
session the Duffy Bill; the Sheppard Bill, which is identical
with a measure suggested by Ed Craney, Manager of KGIR, Butte,
and the Guffey Bill, proposing recognition of the rights of
performing artists in restricting broadcasting of their works.
The two former measures are favored by broadcasters and other
copyright users, while the Guffey measure will be opposed.
XXXXXXXXX
WMCA ORDERS 40-H0UR WEEK AND PAY RAISE
A 40-hour week has been inaugurated at MCA, accord¬
ing to Donald Flamm, President of the station. The agreement
between the station management and representatives of the
operating and production announcers departments came as the
result of negotiations bet?;een representatives of the employees
and the management last week.
Under the terms of the agreement delivered to depart¬
ment heads, all announcers and producers receive salary increase
effective immediately with a provision in the announcer* s agree¬
ment that provides for what amounts to a guarantee that the
announcer will receive commercial assignments to increase his
salary by at least 20^. The agreement as announced mins to
January 1, 1938, with provisions for a three-year renewal.
XXXXXXXXX
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Heinl Radio Business Letter
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CONFIDENTIAL — Not (or Publication
INDEX TO ISSUE OF JUNE 18, 1937
WASHINGTON, D. C.
Studebaker Sees Peak In School Use Of Radio
2
Connery Death Seen As End To Radio Inquiry Resolution.
Cairo Preparing For World Communications Conference..
U. S. Is Biggest Non-Paying Sponsor On The Air........
Municipal Station Also Has Trouble Pleasing Everybody.
Palace Of Soviets To Be Amply "Radiof ied" .
Four New Stations Authorized This Week By FCC .
Trade Notes .
Broadcasting Abroad .
Two-Day Notice On Relays No Longer Required .
The Press And Radio: A British Viewpoint . 10
Good Demand For Radio Sets In Irish Free State . 11
Emerson Corp. Plans Big Promotion Campaign . 12
RCA Plans Television Exhibit At N. Y. Fair . ....12
No. 1037
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STUDEBAKER SEES PEAK IN SCHOOL USE OF RADIO
School use of radio next Fall will reach an all-time
high in the annals of American education, United States Commis¬
sioner of Education John W. Studebaker this week reported to
Secretary of the Interior Ickes.
The Commissioner based his report upon the hundreds
of requests for educational radio scripts received each month
from schools and colleges all over the United States by the
Educational Radio Script Exchange.
“While many of the schools and colleges are planning
to use our scripts for mock broadcasts over public address
systems and for other intra- school purposes", Studebaker said,
"many others tell us that they plan to produce them over local
radio stations when the new school .year begins. A number of
schools plan to continue their broadcasting activities through
the Summer months. "
The Script Exchange has been responsible for nearly
1,000 local educational broadcasts since the first of the year.
Letters requesting scripts from schools, colleges, universities,
CCC Camps and civil organizations indicate that that number will
be doubled, or even tripled, during the Fall school term.
The Script Exchange is America’s only free education
radio script agency, Commissioner Studebaker pointed out.
Organized last October as a joint effort of the Federal Ra.dio
Education Committee and the Educational Radio Project of the
Office of Education, U. S. Department of the Interior, the
Exchange has won universal acclaim of educators and broadcasters.
Proof that it has stimulated the use of radio for educational
purposes is shown by the wide distribution of its scripts. The
Exchange has distributed more than 40,000 copies of 100 tested
educational scripts in the United States alone, and has aided
in their production by sending to broadcasting units, on request,
Radio Manuals containing suggestions for production, and
Radio Glossaries, defining the many technical vrords and phrases
used in the studio and control room. More than 10,000 Glossaries
and Manuals have been sent to organizations that are producing
or are planning to produce programs from the scripts.
The primary purpose of the Exchange is to supply good
broadcasting material to American schools, colleges arid univer¬
sities, CCC camps, local radio stations and civic organizations
interested in radio education, but so far has its fame sprea.d
that requests have been received from broadcasters all over
the world.
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Sample copies of scripts have been sent to every
continent. Among the countries that have requested Exchange
scripts are Alaska, Argentina, Australia, Canada, Canal Zone,
Colombia, Cuba, France, England, Denmark, Newfoundland,
Puerto Rico, Virgin Islands and the Union of South Africa. The
scripts have been produced in several foreign languages out¬
side the United States.
Numerous organizations have produced Exchange scripts
over local radio stations. These groups include the dramatic
classes of schools, colleges and universities, P.T.A. , CCC and
Theater Guild units, groups from various civic organizations
and the production units of local stations which use the scripts
for sustaining programs.
Exchange scripts are used for many different purposes
besides broadcasting. One of their principal uses is for mock
broadcasting over the public address systems of schools, col¬
leges and CCC camps. High school teachers say they use the
scripts in connection with their history and science classes
to create a greater interest among the students in their
studies. College instructors use the scripts as supplementary
texts in journalism and radio classes. Little Theater and civic
organizations produce the scripts as stage plays.
The scripts and the manuals and glossaries are used
successfully by numerous dramatic classes. The manuals and
glossaries constitute a primary text for radio dramatics and
the scripts provide vehicles for practice.
When the Exchange was organized under supervision of
Commissioner Studebaker and Director William D. Boutwell of
the Office of Education Radio Project, it offered only one
series - six scripts called "Interviews With The Past. " Since
then many other scripts, covering a wide variety of subjects,
have been added. Scripts now available include series on
history, geography, civics, economics, science, literature and
art.
Many other scripts will be added to the Exchange in
the near future. Notable among these is a series dramatizing
the services and costs of departments of municipal government.
The Exchange has about 1,600 other scripts on file
which it has gathered from broadcasting units all over the
country.
XXXXXXXX
- 3 -
/
6/18/37
CONNERY DEATH SEEN AS END TO RADIO INQUIRY RESOLUTION
The death this week of Representative William
Connery, Chairman of the House Labor Committee, was believed
to have ended for this session any serious agitation on
Capitol Hill for an investigation of the broadcasting industry.
Besides being the author of the resolution calling
for a special House inquiry, Representation Connery was the
chief force in promoting the investigation. However, a few
weeks before his death, it appeared that the resolution would
be pigeon-holed for this session.
Mr. Connery was chief spokesman in the House for
Catholic and Labor interests that were dissatisfied with the
administration of radio. He also was lined up with some of
the more demanding of the educational groups.
XXXXXXXXXX
CAIRO PREPARING FOR WORLD COMMUNICATIONS CONFERENCE
Egypt has begun preparations for the world confer¬
ence in Cairo on radio and wire communication problems.
A report to the Department of Commerce from American
Commercial Attache, James T. Scott, at Cairo, regarding the
International Telecommunication Conference to be held beginning
February 1, states that an organizing committee has been formed
in the Egyptian capital under the chairmanship of the Minister
of Communications.
The organizing committee has nominated an executive
committee under the chairmanship of the General Manager of
the Egyptian State Railways, Telegraphs and Telephones, to
take charge of the general arrangement for the conference,
according to the report.
XXXXXXXXXX
Renewal of the licenses of Press Wireless, Inc. , New
York, for operation of point-to-point stations KJX, Daly City,
Cal., and WB3, Hicksville, N. Y. , was recommended to the
Federal Communications Commission this week by Examiner R. H.
Hyde.
XXXXXXXX
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6/18/37
U. S. IS BIGGEST NON-PAYING SPONSOR ON THE AIR
The Federal Government is easily the largest non¬
paying sponsor on the nation's networks and radio stations, it
was emphasized this week as the Byrd Committee on Government
Reorganization disclosed that at least $150,000 a year is being
spent just to prepare programs.
Indications were that the Committee will propose
strict budgetary control of the Government's radio activities
and probably a pruning of the expenditures, which are growing
yearly.
New Deal agencies are the chief users of radio time
on the networks and independent stations in campaigns to
promote New Deal policies. The programs are of an educational,
informational, or propaganda nature for the most part with
entertainment features at a minimum.
The Department of Agriculture is the biggest user
of free radio time. Last year it sponsored programs on the
major networks and more than 300 independent stations. It
expended $28,740 in 1936 preparing these broadcasts.
The U. S. Office of Education, however, is expand¬
ing its radio activities so rapidly that it threatens to over¬
shadow all other governmental agencies. It recently acquired
a well-equipped studio for the production of its programs in
the new Interior Deoartment Building. Last year the Office
of Education spent $54,962 preparing five programs for weekly
broadcasts over NBC and C3S.
The Federal Housing Administration has made exten¬
sive use of radio in promoting home ownership and moderniza¬
tion. Last year it spent $40,470 on this activity, of which
$7,741 was for talent.
The Resettlement Administration confined its radio
promotion to transcriptions in order to reach rural areas via
small stations. Last year it spent a total of $28,615 on
this activity.
The Works Progress Administration admittedly uses
considerable radio time, but no figures were obtained by the
Byrd Committee because this activity is inter-linked with the
WPA theatre project.
xxxxxxxxxx
- 5 -
6/18/37
MUNICIPAL STATION ALSO HAS TROUBLE PLEASING EVERYBODY
With sparodic suggestions of government ovwiership and
operation of broadcasting stations still being made by educa¬
tional organizations, the recent difficulties of the municipally-
owned New York City station, WNYC, are proving interesting to
commercial broadcasters*
Frederick J. H. Kracke, New York Commissioner of
Plant and Structures, which operates the station, this week
was called upon to defend a broadcast over the city!s outlet
before the Board of Aldermen because of complaints that it had
been anti- Jewish.
The chief point of his defense was that freedom of
speech over the air was involved.
Alderman Samson Inselbuch, of Brooklyn, had charged
WNYC 1 s broadcast on the night of June 5 of speeches presenting
the Arab side of the conflict between Jews and Arabs in Pales¬
tine was anti- Jewish. On June 11, WNYC presented a one-hour
program of four speeches, giving the J ewish side of the ques¬
tion. Rabbi Stephen S. Wise, Louis Lipsky, Zionist leader,
Rabbi Abba Hillel Silver and Pierre van Paasen, journalist,
were the speakers,
'•WNYC operates for the instruction, recreation, enter¬
tainment and welfare of the inhabitants of New York City”, Mr.
Kracke told the Aldermen. ”It is the foremost example of
governmental radio station operation in the United States. It
has often been pointed out that abroad government broadcasting
monopolies have one of two policies regarding controversial
subjects. They either broadcast the government viewpoint or
they do not broadcast any viewpoint at all.
"It is contrary to American ideals to advocate regu¬
lation of radio by a government agency whose authority would
extend to the point of exercising a complete censorship over
programs. The use of the air as a public forum is important
to the maintenance of a democratic form of government. ”
XXXXXXXXXXX
H. H. the Maharaja Gaewar of Baroda and H. H. King Yeta
III, Paramount Chief of Barotseland, appeared in the BBC*s
television broadcasts from Alexandra Palace, London, during
their visit to England for the Coronation. They took part in
a program entitled "Some Visitors to London", during which they
were interviewed by Leslie Mitchell, one of the television
announcers. Viewers saw King Yeta wearing the uniform that
was presented to him by His Majesty King Edward VII.
xxxxxxxxxx
- 6 -
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6/18/37
PALACE OF SOVIETS TO BE AMPLY "RADIOFIED"
The Palace of Soviets which is now under construction
in Moscow will be radiofied with the application of the most
modern technique, according to the Russian Radio Centre.
11 A specially important task is the radiofication of
the big hall of the Palace of Soviets, the volume of which will
be 970,000 cubic meters'*, the announcement states. "Its cir¬
cular amphitheatre will seat 20,000 people. Its diameter will
be 125 meters, its height more than 100 meters. The big hall
is intended principally for mass meetings.
"To insure the hearing of translation of speeches
of orators in different languages, high-frequency installations
will be fixed in the hall. The places for delegates will be
equipped with ultra.- shortwave detectors able to switch on to
all the wavelengths over which the translations of the differ¬
ent speeches will be transmitted simultaneously.
"The radio- fi cat ion plan foresees an internal and
external broadcasting netvrork, the aim of which will be the
broadcasting of sessions and artistic productions, the direct¬
ing of the movement of currents of people and the notification
and summoning of different people from the premises. "
A radio relaying station also is being installed in
the " Komsomol skay" station of the Moscow Kaganovitch Under¬
ground Railway. The whole station is being wired for the radio
Passengers will be notified by radio of the departure of trains
A plan is now being drawn up for the radiofication of
all the tunnels of the underground, Radio Centre stated.
XXXXXXXX
FOUR NEW STATIONS AUTHORIZED THIS WEEK BY FCC
Four new broadcasting stations were authorized this
week by the Federal Communications Commission. Construction
permits were granted to the following:
Owensboro Broadcasting Company, at Owensboro, Ky. , to
use 1500 kilocycles, 100 watts, unlimited time, effective July
13; Harold M. Finley and Mrs. Eloise Finley, La G-rande, Ore.,
to use 1420 kilocycles, 100 watts night and 250 watts day,
and unlimited time, effective July 13; Edwin A. Kraft, at
Petersburg, Alaska, to use 1420 kilocycles, 100 watts, unlim¬
ited time, effective August 10; Okmulgee Broadcasting Corpora¬
tion, Okmulgee, Okla. , to use 1210 kilocycles, 100 watts and
daytime operation, effective July 20.
XXXXXXXX
- 7 -
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6/18/37
TRADE NOTES
Hearing in the special telephone investigation were
resumed Thursday by the Telephone Division of the Federal
Communications Commission, and will continue through June 30th.
William S. Paley, President of the Columbia Broadcast¬
ing System, is one of the Trustees of the Museum of Modern Art
that will replace the Rockefeller mansion at 10 West Fifty-
fourth Street, New York City.
When Francis Heric, 16, of Rochester, N. Y. , rides
his bicycle, he "peddles to music". He has rigged his bike with
a two-tube radio of his own design that gives satisfactory
reception of programs broadcast by local stations. The radio’s
chassis rests on the handlebars, the aerial is attached to the
rear fender, and power is supplied by batteries in the front
basket.
A new broadcasting station, WBIL, New York City,
resulting from the purchase of WLW from the Pauli st Fathers
by Arde Bulova, jeweler, went on the air Thursday night, John
Iraci, President of the International Broadcasting Corporation,
which operates WOV, is the Director. WBIL operates from the
WOV studios at 132 West Forty- third Street.
The Sherwin Williams Company, paint manufacturers,
will sponsor the Metropolitan Opera auditions of the air for
their third season on the NBC networks next season. Beginning
October 3, the program will be heard over the NBC-Blue Network
each Sunday from 5:00 to 5:30 P.M. , EST,
Denial of the application of the Valley Broadcasting
Company, Youngstown, 0., for a construction permit to build and
operate a station using 1350 kc. , 1 kw power, unlimited time,
was recommended to the Federal Communications Commission this
week by Examiner Melvin H. Dalberg. The station would encounter
serious interference, the Examiner found.
The R. J. Reynolds Tobacco Company will sponsor a
Columbia Network series for Camel cigarettes and Prince Albert
smoking tobacco for the fourth consecutive year,
XXXXXXXXX
- 8 -
6/18/37
: : BROADCASTING ABROAD
Radio broadcasting in Estonia is conducted by the
State Broadcasting Company which is entirely capitalized by
the Government. This company was organized in 1934, when it
took over the assets of a former private company, including the
present two broadcasting stations. Of these, the large sta¬
tion of 15,000 watts is at Tallinn, the other, a small relay
station of 500 watts, being located in Tartu. The Tallinn
station operation 731 kc. (410 meters) and Tartu 517 kc. (580
meters) .
There are no official calls assigned to these sta¬
tions. In practice they are linked up for broadcasting, and
are announced "Tallinn ja Tartu".
There are no short-wave broadcasting stations in
Estonia. Short-wave programs are received from European broad¬
casting stations, the reception of American short-wave trans¬
mission not being entirely satisfactory.
The daily programs of the Estonian State Broadcast¬
ing Company last from about 7 to 8 hours. Usually from 7 to
9 a.m. and from 6 to 11 p.m. The items on the programs are
generally classified into three groups: musical, verbal and
miscellaneous broadcasts. Musical programs include orchestral
music, operas, soloists and dance music, both from active
performance and from phonograph records. Verbal programs have
consisted of lectures, press news, etc. , while church services,
meetings, studio plays, advertising, etc. , have constituted
the "miscellaneous".
Radio advertising continues to be frowned upon by
the Estonian State Broadcasting Company, with the result that
during 1936, only 83 hours of total broadcasting time were
used or the reading of advertising texts, as against 106 hours
spent for this purpose in 1935.
XXXXXXXXXX
TWO-DAY NOTICE ON RELAYS NO LONGER REQUIRED
The Broadcast Division of the Federal Communications
Commission this week deleted the provisions in the rules and
regulations pertaining to the requirement of two-day notice and
approval from the Commission for operation required of relay
broadcast stations.
In the future, the operation of relay broadcast sta¬
tions that may cause interference to other relay stations shall
be governed by the provisions of Rule 1004. All the licenses
of existing relay broadcast stations will be corrected in
accordance with these amendments when the next renewals are
issued.
XXXXXXXX
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6/18/37
THE PRESS AND RADIO: A BRITISH VIEWPOINT
The British viewpoint on the relationship of radio
and the press was explained recently by the Director-General
of the British Broadcasting Corporation, Sir J. C. W, Reith.
said:
Discussing radio news bulletins, the Director-General
’"They give a taste of the news, and to suggest that
anyone who is within reach of a newspaper is going to be satis¬
fied with the Empire news bulletins that are given out would,
we submit, be quite absurd.
"You will agree", he went on, "that there is a good
deal in common to journalism and broadcasting. Competitors or
allies? I hear people in this country say there is no doubt
at all that there is no competition such as would result in a
decline of circulation of morning papers, but there may be in
regard to evening newspapers. I don't know.
"•Europe is at this time in a tremendous state, and
every mutilated division of it looks to England for information
and courage’. It sounds topical, but that is a remark recorded
in s secret State paper over one hundred years ago. I think it
is an extraordinarily interesting remark, and very significant.
We will look for the fulfillment of that aspiration of one
hundred years ago in regard to the article of courage to the
politician.
"The other article, information, interests you and it
interests us. 'We are a free Press', you say, and pride your¬
selves on it. A great deal is said about freedom of this and
that, in this sphere and the other - a certain amount of nonsense
included. What do we mean by freedom? It wants definition, and
I doubt if there is any freedom which is not, or should not be,
conditioned. What by? By this and that. By moral responsibil¬
ity, Is every possessor of great power and influence condition¬
ed by moral responsibility? Some of them may be, but some of
them don’t give much evidence of it. Anyhow, freedom wants
defining.
"You mean you are independent of State control. Well,
so is broadcasting. In Y/hatever respects the freedom of the
BBC is curtailed it is in black and white in the Charter. If
and when the BBC is doing something which it does not want to do,
by Government orders, then that would be clear.
"In Germany and Russia and Italy broadcasting is a
mouthpiece of the State and an instrument of Government. A con¬
trolled Press and a controlled broadcasting system may mean
biased or censored nerrs. But there are other forms of control.
I suppose it is possible to have a commercial control which pro¬
duces something like the same sort of results - in general
effect. I would say with regard to broadcasting that the divi¬
dend motive is incompatible with the public service motive.
Well, maybe you will find a newspaper or two to which that
remark might apply, and if it is not the dividend motive it may
be some other motive.
- 10 -
6/18/37
"Has broadcasting any effect on irresponsibility of
whatever kind it may be, any effect on these ulterior motivas-
ations, whatever they may be? It was possible for news to be
suppressed or invented. Is it ever done today? Anyhow, it is
less easy. There have been unscrupulous influences, I suppose
you would admit. Will they be as common in the future? Will
they get away with it as easily in view of the fact that the
reading public is also a listening public?
"These ulterior motives, this irresponsibility and
unscrupulousness, are to the embarrassment of honest and honor¬
able journalism. Is not broadcasting an ally there? I submit
that Yie are definitely allied to the responsible journalist.
BBC news is accepted as accurate. There has been no demand for
sensationalism in our news. Let us compete, if you like, in
terms of who can give the best service. We are an extraordinary
amenable body. There is all sorts of nonsense talked in this
country about the unamenability of the BBC.
"The BBC is more than anxious to hear what people
think about it, provided that those people are responsible.
"We are up against tremendous competition in the matter
of foreign propaganda broadcasting, and the more you care for the
Empire the more you will be willing to help us in perfecting
and improving our Empire service.
XXXXXXXXXX
GOOD DEMAND FOR RADIO SETS IN IRISH FREE STATE
There is a good demand for radio sets in the Irish
Free State and the market for sets is steadily expanding, accord¬
ing to Vice Consul E. J. King, Dublin, in a report made public
by the Electrical Division, Department of Commerce.
Due to seasonal variations in radio reception and the
availability of money in the agricultural communities which
account for approximately two-thirds of the total population,
the greatest demand for receiving sets is during the period
from December to March, the report states.
Licensed radio receiving sets in the Irish Free State
as of December 1, 1936, totalled 104,000 units compared with
78,600 units as of December, 1935, and 54,000 units recorded as
of March, 1934, the Vice Consul reported.
As there is no domestic manufacture of radio receiving
sets in the Irish Free State, the demand must necessarily be
supplied by importations. Imports in 1936 were valued at
L230,000 ($1,150,000) compared with £>235,000 ($1,175,000) in
1935 and £225,000 ($1,125,000) in 1934, official statistics show.
Both battery-operated and socket power radio receiv¬
ing sets are used in the Irish Free State, it being estimated
locally that approximately 55 percent of the sets in use are of
the socket power type.
As electrification throughout the Free State progresses,
however, the number of battery-operated radio is being reduced,
according to the report,
XXXXXXXXX
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EMERSON CORP. PLANS BIG PROMOTION CAMPAIGN
With, bookings running considerably ahead of a year
ago, the Emerson Radio and Phonograph Corporation will launch
a greatly enlarged advertising campaign late in August or
early September, it was announced this week at a showing of
the 1938 line to more than 100 distributors at the Hotel New
Yorker, Ne?/ York City. In addition to full pages in seven
national magazines, a wide list of newspapers throughout the
country will be used for both national and cooperative adver¬
tising. Billboards, radio and point-of-sale are also includ¬
ed in the promotion.
The company is making list prices uniform throughout
the United States, and has established a set of minimum dealer
discounts. The line includes twenty-three table models at
$14.95 to $54.95, ten radio and phonograph combinations at
$59.95 to $139.95, seven consoles at $44.95 to $119,95, six
farm sets at $19.95 to $54.95 and two auto radios at $39.95
and $54.95. One combination radio and phonograph set is priced
at $750. The ,rMiracle Tone Chamber" will be featured in
advertising.
XXXXXXXXXX
RCA PLANS TELEVISION EXHIBIT AT N. Y. FAIR
David Sarnoff, President of the Radio Corporation of
America, and Grover Whalen, President of the 1939 New York
World1 s Fair, signed an agreement Thursday whereby television
will be given a public demonstration by the Radio Corporation of
America and the National Broadcasting Company at the World’s
Fair which is dedicated to "The World of Tomorrow. "
The agreement, signed as part of the first ceremony
of its kind ever to be televised, will afford the millions of
visitors to the Fair an opportunity to watch demonstrations
of every aspect of radio and television - the modern world’s
and the future world's most effective means of communication
and entertainment.
By terms of the agreement, the Radio Corporation of
America will construct on the Fair Grounds in New York City an
ultra-modern building which will house a complete exhibition of
all branches of the radio art and its developments. Facilities
will be provided for practical demonstration of all aspects of
modem radio and television.
This building, linked directly with the NBC televi¬
sion transmitter on the Empire State Building, will televise
outstanding 'World’s Fair events, and will bring to visitors,
for the first time in radio history, joint demonstrations of
the marvels of sound and sight broadcasting,
X X X X X X X X X
- 12 -
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF JUNE 22, 1937
Silence Critics With Service, Sykes Advises N.A.B . 2
Segal And Smith Deny FCC Charges . . . y.4
WJSV Asks For 50 KW; New Transmitter Site . 1.7
Two New Broadcasting Stations Recommended. . . . 7
NAB Elects John Elmer As President . 8
Good Radio Mart In Ecuador, Consul Reports . 8
Trade Notes . 9
Broadcasting Abroad . 10
Transmitters Better And Cheaper, Says Baker . 11
CBS Technicians Join C.I.O. Affiliate . 11
Big Press Advertisers Also Use Radio . 12
No. 1038
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June 22, 1937
SILENCE CRITICS WITH SERVICE, SYKES ADVISES N.A.B.
The nation* s broadcasters were advised this week to
render such fine public service that critics of the American
plan of broadcasting would be silenced by Judge Eugene 0. Sykes,
veteran Chairman of the Broadcast Division, Federal Communica¬
tions Commission.
Delivering the principal address at the convention of
the National Association of Broadcasters in Chicago, Judge Sykes
spoke on "The Duty and Responsibility of the Broadcaster. "
"The entire theory of the Radio Act and its successor,
the Communications Act", he said, "is that broadcasting licensees
are made trustees of the Federal Government to render a public
service to the communities their stations servo; that this
license is a privilege granted by the Government for just such
time as this service is rendered and in no way constitutes a
vested right to the use of a frequency.
"The criterion set up in this law for the issuance and
for renewal of licenses, is ’if public convenience, interest or
necessity will be served thereby’, or as stated in another sec¬
tion of the Act if 'the Commission shall determine that public
interest, convenience or necessity would be served by the grant¬
ing thereof.' In the one phrase, the word ’convenience’ is
placed first, while in the other the word 'interest'. However,
they mean the same thing.
"While another section of the Act expressly states
that a broadcasting station is not a common carrier yet, by the
terms of the Act, above quoted and by its very nature, it is a
business clothed with a public interest.
"The Commission, having determined that you are a
proper party to serve the public of your community and having
granted you this gracious privilege in the form of a license,
this duty then devolves upon you to render the best public ser¬
vice to your community that you can. You assume, by the accept¬
ance of this license, a great responsibility of public service.
How then is the best way in which you can fulfill this duty and
responsibility ?
"You are thereby accorded a wonderful opportunity for
service which necessarily carries with it a grave responsibility.
You are invited to enter the homes and firesides of your listen¬
ing public for practically sixteen hours a day. These programs
reach the men, women and children of the entire nation. They
2 —
6/22/37
They reach those who are now steering the destinies of our com¬
munities, state and nation, and those who are being trained to
assume these reins of government when the present actors pass
from the stage. These thoughts should ever be present with you
and your programs should be so built that our younger genera¬
tions who have the privilege of listening to the radio should
be improved and be better equipped for their responsibility to
be so soon assumed by them.
"While under our plan of broadcasting the stations
must be self-supporting by their sale of time, yet you must bear
in mind that this is but an incident and that your main object
and purpose is one of public service. In fact, the better
service you render the more popular becomes your station and
the larger becomes your listening audience, hence the easier
for you to obtain the necessary advertisement.
"You are still a young industry and Federal regula¬
tion thereof is still young, yet within this period of a little
over ten years we have seen a wonderful growth in the industry
and have had wonderful improvements not only from a technical
nature but also in the programs and the character of public
service being rendered. Yet, like all young industries, there
is room for greater improvement not only in our regulation of
this art and industry but in the nature and character of the
programs of the stations.
"The best answer to make to those who are not satis¬
fied with our American system of broadcasting is to render
such a wonderful public service that these critics may, in the
course of time, be silenced. The needs of our various commun¬
ities differ. Therefore, what will be a public service on one
community might not be in another. You should care fully famil¬
iarize yourself with your communities and see what local service
you may render them and since your programs are going into thess
homes you must consider good taste. Certainly when broadcast ing
a dinner program it should not be interspersed with advertising
announcements which would tend to destroy the appetites of this
audience. You must be just and fair to every one in your com¬
munity and your editorial policy should be one to bring about
closer cooperation and not to stir up strife therein. You
should build up and not tear down*
"I now desire to congratulate you upon the great and
unique public service you rendered during the flood on the Ohio
and Mississippi Rivers last February. The broadcast stations
were a source of inestimable assistance in preyenting loss of
life and property and by keeping the public posted on the exact
stage of the flood. Broadcast stations offer a very excellent
means of acquainting the public almost instantly with any mes¬
sage the relief authorities may desire to disseminate. Many
stations coordinated emergency units, procured supplies, directed
relief activities, and raised many thousands of collars through
appeals to the public for the led Cross.
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"Our engineers are now studying plans for the better
cooperation of all radio facilities and relief organizations in
times of emergencies. I feel sure vte can a.lways count on the
broadcasters cooperating fully and to do their share. Service
of this character is indeed public service of the highest
order and which service I am sure was appreciated by our entire
citizens.
"Another public service in which progress is being
made is that of the Committee on Federal Radio Education headed
by Dr. J. W. Studebaker, Commissioner of Education, and composed
of an equal number of broadcasters and educators, I under¬
stand that two of the large foundations are very much interested
and are willing to materially help in financing the work of
this committee. I believe a successful conclusion of the
labors of this committee will be of the greatest benefits to
both radio and education. "
XXXXXXXXX
SEGAL AND SMITH DENY FCC GHARGES
Dismissal of charges alleging improprieties in the
practice of law before the Federal Communications Commission
was requested last Saturday in pleading filed with the FCC by
Paul M. Segal and George S. Smith, Washington attorneys. The
lawyers were cited by the FCC in an order issued May 19th to
show cause why they should not be disbarred for purported fil¬
ing of applications in the name of so-called "dummy" applicants,
and for other specified reasons.
In separate ansv/ers, Messrs. Segal and Smith categori¬
cally denied all of the charges made in the FCC order as without
foundation. The answers were in the nature of a full disclosure
of the facts relating to the matters upon which the charges were
based, A hearing on the charges was requested, unless the
Commission should conclude that the order be dismissed.
The attorneys contended their conduct at all times has
been entirely ethical, proper and professional, and that the
acts cited in the FCC order were not improper or in violation
of any existing rules or methods of legal practice. Dealing
specifically with the allegation that "dummy" applications had
been filed for the purpose of "deceiving" the Commission, the
attorneys declared that their applicants were not "dummies"
and that their procedure was in conformity with a prevalent
and sanctioned practice before the Commission,
The four principal charges made against Messrs. Segal
and Smith by the Commission and the categorical answers of the
radio attorneys follow in brief:
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6/22/37
Charge: (1) That they "knowingly and with intention
to deceive, interpolate, or aid and abet in the interpolation
of, certain signed and notarized depositions into the files of
the Commission in the case of Richard M. Casto, contrary to the
Rules and Regulations of the Commission.
Answer: Mr. Segal denied any part in the incident
but recalled Mr. Smith's role in it. Mr. Smith said that the
attachment of signed affidavits to the unsigned originals was
done "with the full knowledge and acquiescence of the Secretary's
office". He added that he had previously made "full disclosure
of the facts in the case and that the FCC had issued an order
disposing of the matter.
Charge: (2) That Richard M. Castro was "a subterfuge
or dummy applicant for another person, or persons, ... to
deceive and mislead the Commission. "
Answer: Mr. Segal said Mr. Castro wrote to them and
asked that they represent him in an application for a new sta¬
tion at Charleston, W. Va. "I believed then and I believe now",
Mr. Segal said, "that Mr. Castro was a bona fide applicant and
was in possession of funds which he had represented to George
S. Smith he owned. "
Charge: (3) That Messrs Segal and Smith organized
the Palmer Broadcasting Syndicate, Inc. , as a dummy applicant
for obtaining authorizations from the FCC.
Answer: Mr. Segal said the Palmer Broadcasting Syndi¬
cate, Inc., was chartered for a client (unnamed) and that
there was never any intention that it should become a dummy
applicant or that the FCC should be deceived.
Charge: (4) That the attorneys through the Palmer
Broadcasting Syndicate, Inc., "with the intention to deceive",
filed applications for construction permits to build stations
at Portland, Me., Lewiston, Me., and Cheyenne, Wyo. , "for the
purpose of deceiving and misleading the Commission in its con¬
sideration of said applications and applications of other
applicants, and to hinder and delay other applicants."
Answer: The applications were legitimate, Mr. Segal
said. There was no intention to deceive the Commission. He
added:
"I was requested by the client referred to above to
cause the formation of Palmer Broadcasting Syndicate, Inc. , on
or about June 26. 1934. I was told by that client to cause a
Delaware corporation to be formed and to use clerical personnel
a„s incorporators, original stockholders and original directors,
during the formative and organization stages of the corporation's
life, I was directed to cause such origina.1 stockholders to
transfer the stock of Palmer Broadcasting Syndicate, Inc., to
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6/22/37
my client after the completion of the corporate organization.
I was told by my client that there were substantial reasons why,
with regard to an application proposed to be filed at Portland,
Maine, it was desirable to maintain anonymity of my client in
connection with the filing of the application until such time
as hearing should be held upon the application. This course
not being in contravention of any law, rule or regulation
and not being contrary to prevailing practice and wholly with¬
out sinister purpose, I did, pursuant to and upon my client’s
instructions, cause said corporation to be formed and cause
applications to be filed before the Federal Radio Commission
for construction permits for two radiobroadcasting stations,
one at Portland, Maine, and one at Cheyenne, Wyoming. These
applications were filed on June 27, 1934. They complied in
all respects with the Radio Act of 1927 and the Rules and
Regulations of the Federal Radio Commission and all of the
facts and statements contained in the applications were true
and correct to the best of my knowledge and belief.
"When these applications were filed they in no
manner conflicted with any other applications. Both the
Cheyenne and the Portland applications were filed with a bona-
fide intention on the part of my client to prosecute such
applications and to exercise and use the facilities if granted.
"Later, in the case of Cheyenne, Wyoming, the person
who was to prepare the data and carry forward with the factual
presentation on that application finally reported that he did
not believe, upon the basis of his investigation, that the
application could be successfully prosecuted, and accordingly
my client permitted the Cheyenne application to go by default.
"In the case of Portland, Maine, all applications for
local facilities in that city, including the application of
Palmer Broadcasting Syndicate, Inc. , the application of Eastern
Broadcasting Company, and a number of other applications which
were filed even later were all held up and no action was taken
on then by the Commission for a period in excess of two years,
and hence any delay in action upon the Palmer application or in
action upon the applications which competed with it was not
ascribable either to my client or to me.
"Finally about September 24, 1936, more than 2 years
after the application had been filed, the circumstances concern¬
ing Portland, Maine, the service available to it, and the many
other factors that determine whether or not an application
should be granted, had so changed that my client came to the
conclusion that the application should be withdrawn and, accord¬
ingly# on September 24, 1936, the Commission was requested to
dismiss that application and it did so dismiss it on October 7,
1936.
6
6/22/37
"I should mention that for a short time during the
long pendency of the Palmer Broadcasting Syndicate, Inc.,
application for Portland, Maine, there was another application
filed by Palmer for the same facility, namely, for 1210 kc. ,
to be used at Lewiston, Maine. Since the distance from Lewiston
to Portland is some thirty miles, it was obvious that these
two applications were in mutual conflict. The Lewiston appli¬
cation was filed on October 26, 1934, and during the time when
no action could have been taken on it and at a time when my
client wa.s undecided whether there was a better chance to
establish a station at Lewiston or at Portland. Thereafter
my client decided that the application for Portland, Maine,
was more meritorious and accordingly my client permitted the
Commission to return the Lewiston application on May 10, 1935,
without acting on it. ”
XXXXXXXXXXX
WJSV ASKS FOR 50 KW; NEW TRANSMITTER SITE
The Columbia Broadcasting System, through its affil¬
iated Washington station, WJSV, has asked the Federal Communica¬
tions Commission for permission to increase its power from
10,000 watts to 50,000 watts and to relocate its transmitter
from the present site on the Memorial Highway in Alexandria, Va. ,
to a proposed site in Montgomery County, Md.
Harry C. Butcher, Vice-President of the CBS in
charge of the Washington office, estimated the cost of the
project, including the removal to the new location and the
new 50, 000- watt transmitter, at $270,000.
X X X X X X X
TWO NEW BROADCASTING STATIONS RECOMMENDED
Favorable reports on applications for two broadcast¬
ing stations were filed with the Federal Communications Commis¬
sion this week.
Examiner Robert L. Irwin recommended the granting of
a construction permit to the Elmira Star-Gazette, Inc., of
Elmira, N. Y. , for operation on 1200 kc. with 250 watts daytime.
Chase S. Osborn, Jr. , of Fresno, Cal. , was given a
favorable report by Examiner John P. Bramhall. Osborn asked
for 1440 kc. with 500 ?ra,tts time, unlimited hours.
XXXXXXXX
- 7 -
6/22/37
NAB ELECTS JOHN ELMER AS PRESIDENT
The National Association of Broadcasters meeting in
Chicago for their annual convention, held their election of
officers today (Tuesday) and Mr. John Elmer, President of
Station WCBM, Baltimore, was elected as President of the NAB.
Other officers are: First Vice-President - John J.
Gillin, Jr. , Manager, WOW, Omaha; Second Vice-President, W. J.
Scripps, WWJ, Detroit; and Harold V. Hough* Station WBAP,
Fort Worth, was reelected as Treasurer.
Six new Directors were elected as follows: C. W*.
Myers, KOIN, Portland, Ore. , retiring President; Frank M. Russell,
National Broadcasting Company, Washington, D. C. ; Harry C.
Butcher, Columbia Broadcasting System, Washington, D. C. ; Herbert
Hollister, Kansas (Wichita); Theodore C. Streibert, WOR, Newark,
and Gene Dyer, WGES, Chicago.
XXXXXXXX
GOOD RADIO MART IN ECUADOR, CONSUL REPORTS
There is a steady, though small, market for radios
in Ecuador, according to U. S. Consul General Dayle C. McDonough,
of Guayaquil.
"Import permits without exchange are issued from time
to time for radios by the control officials", he writes, "but
the demand for such importations is limited and sales are small.
A regular but small demand may be expected in the future. The
American radios are preferred and foreign makes, with one or
two exceptions, have not been successful on the Ecuadoran market,
"Radios as a rule can be sold only on the basis of
installment payments. Accessories are expensive in this market
and expert repair service is difficult to obtain and when avail¬
able is costly. "
XXXXXXXX
A Central Children rs radio station is being built in
Kharkov, Soviet Republic, Children themselves are taking part
in the installation of the equipment.
XXXXXXXXX
- 8 -
6/22/37
• • •
« ♦ •
:: TRADE NOTES :
: : :
Franklin Dunham, Educational Director of the National
Broadcasting Company, will address the National Education
Association in Detroit on "The Place of Radio in Education",
during the 75th annual convention in Detroit, June 27 to July 1.
Chancellor Frank H. Dodge in an order June 10th made
permanent a temporary injunction issued March 23rd to restrain
the city of Little Rock, Ark. , from collection of an annual
privilege tax of $100 on radio stations. The court held that
such stations are engaged in interstate commerce and hence are
not subject to local taxation. City Attorney Ed I. McKinley, Jr. ,
said appeal will not be taken to the Arkansas Supreme Court.
In similar litigation, he said, the Georgia Supreme Court
recently ruled in the same manner as Chancellor Dodge, whose
ruling was in the suit of the Arkansas Broadcasting Co., owners
of Stations KLRA and KGHI.
Photo-telegraphic connections by wireless between
Moscow and Khabarovsk were opened recently. This is the long¬
est radio-photo-telegraphic line in the USSR and is equipped with
Soviet apparatus. Besides Khabarovsk, pictures can also be
transmitted by radio from Moscow to Tashkent. Tests are now
being made of photo-telegraphic connections by radio with
Toilissi.
Details for the "satisfactory adjustment" between
Transradio Press and the Columbia. Broadcasting System and
National Broadcasting Company arrived at last week in the
$1,700,000 suit against 17 defendants under the Clayton Act were
still unavailable this week. One published report that CBS
and NBC were to pay Transradio $125,000 could not be confirmed
through either the defendants or plaintiffs.
Boake Carter is preparing to take his first week’s
vacation from broadcasting in eight years. He will sail June
27th from New London, Conn. , as skipper of the 60-foot yawl
"Alelnauser" , owned by Sayre M. Ramsdell, Vice-President of Philco
Radio and Television Corp. , for which Mr. Carter broadcasts
nightly.
XXXXXXXXXX
- 9 -
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.
6/22/37
BROADCASTING ABROAD
Ninety-one broadcasting stations are functioning in
China, Hong Kong, and Manchuria, ranging from Tj- watts to 100,000
watts in power. The most powerful station is MTCY, the 100,000
watt installation at Hsinking, Manchuria. The next largest
installation is XGOA, the 75, 000- watt station of the National
Government at Nanking. At Hong Kong the British Colonial Govern-;
ment operates two stations of 2,000 watts each.
Of the total number of stations in this combined area
over one-third, (37) are located in the city of Shanghai, which
is reputed to have more radio broadcasting stations within its
limits than any other single city in the world. Dials are
crowded with stations; pov/erful ones often overlapping the weak;
with bad reception for both; and competition at its keenest.
With the exception of XQHC owned by the Ministry of Communica¬
tions, XKOI controlled by the Chinese City Government and XSMP,
the Police transmitter of the Shanghai Municipal Council, all
of the Shanghai stations are privately owned. Five are foreign-
owned, the remainder being Chinese. Broadcasting stations in
China operate on a wave band of 550 to 1500 kilocycles with
stations supposedly placed 20 kilocycles apart, but little ad¬
herence to frequency, resulting in serious interference. Only
two or three stations use crystal control. Less than ten of
the thirty- seven stations in Shanghai can be considered as being
relatively well organized and equipped. Studios and trans¬
mitters are generally scattered with very limited and poorly
engineered equipment, as compared with modern practices. XMHA,
an American owned and operated station at Shanghai, is regarded
as being the best operated.
As a step toward eliminating broadcasting congestion
in Shanghai, the Ministry of Communications of the Chinese
Government revoked the permits of XLHC (50 watts), XLHI (74);
XLHL (100); XHHD (50); WLHE (50); XLHF (50); XHHR (50) and*''
XQHF (200) on February 1, 1937. The reasons given officially
for this action were lack of proper modern transmitting equip¬
ment to insure clear reception and keep programs on assigned
frequency, and transfers in ovmership and increase in power by
some stations without permission. The stations involved are
reported to have had an average investment of less than
US$2,000 each. Despite numerous protests to the government,
including the suspension of an entire day* s program by all
Chinese broadcasting stations in Shanghai, the eight stations
affected have remained closed. Broadcasting interests believe
that this is the prelude to a thorough cleaning up and look
for an additional twelve stations to be withdrawn during the
next six months.
XXXXXXXXXX
- 10
i
6/22/37
%
TRANSMITTERS BETTER AND CHEAPER, SAYS BAKER
Outstanding progress towards improved performance
and economy has featured development of transmitter and speech
input equipment during the last few years.
One of the bugaboos of broadcasting have been con¬
quered and radio engineers still continue to perfect equipment
for greater clarity, less distortion, wider range of tone
cycles, at the same time bringing about reduction in price.
"Development, design and production of transmitters
from 100 watt to 5,000 watt feature improved performance at
the same or lower prices than last year", I. R. Baker, manager
of transmitter sales for RCA told Editor & Publisher last week
before leaving for the broadcasters convention in Chicago.
"The electrical design features considerably lower
distortion over the entire audio band which, of course, makes
for higher fidelity performance. In addition, the selection of
power tubes has been directed toward the use of the smaller
and less expensive tubes, thus reducing operation and mainten¬
ance costs."
XXXXXXXX
CBS TECHNICIANS JOIN C.I.O. AFFILIATE
Over the opposition of the International Association
of Theatrical and Stage Employees, A, F. of L. affiliate,
radio technicians employed by the Columbia Broadcasting Company
voted last week to join the American Radio Telegraphists
Association, C.I.O. affiliate, it was announced by Mervys
Rathbone, President of the Radio Telegraphists.
Mr. Rathbone said the radio technicians had voted
to join the radio telegraphists despite a threat by the theatri¬
cal and stage association that they "would be walking the
streets out of a job for joining the C.I.O."
They voted also, according to Mr. Rathbone, to dis¬
solve the Association of Columbia. Broadcast Technicians and
to organize about 300 radio technicians in seven out-of-town
stations operated by Columbia. The technicians will become
members of the New York Broadcast Local 16 of the American
Radio Telegraphists Association. Mr. Rathbone said that
employees of Columbia stations in Washington, D. C, j Boston,
Mass.; Charlotte, N. C. , and Los Angeles, Calif., were prepared
to join the radio telegraphists.
XXXXXXXXXX
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6/22/37
BIG- PRESS ADVERTISERS ALSO USE RADIO
Annual estimates compiled by the Bureau of Advertis¬
ing, American Newspaper Publishers ' Association and released
last week, reveal that 394 national advertisers who spent at
least $50,000 each in newspapers in 1936 apportioned a total
expenditure of $272,953,478 in the three major mediums as
follows: $160,235,000, or 58.7$ to newspapers; $72,873,727,
or 26.7$ to magazines; $39,844,751, or 14.6$ to chain broad¬
cast, according to Newsdom.
Altogether, of the 29 trade groups listed in the
study, 24 placed the major portion of their appropriation for
the three mediums in newspapers. The combined advertising
expenditure in the three mediums by groups favoring news¬
papers was $245,195,354 - compared with a combined investment
of $27,758,124 by trade groups favoring other mediums.
The study also includes a chart of the national
advertiser's dollar for 1936 which is not a chart of figures
included in the study as these figures cover only 394 adver¬
tisers who spent at least $50,000 in newspapers last year.
The dollar chart covers expenditures of all national advertis¬
ers in five mediums: newspapers, magazines, chain broadcast,
car cards and outdoor.
The chart shows $188,000,000, or 44$, going to
newspapers, a gain of 12.5$ over 1935; $143,790,000, or
33.6$ to magazines, a gain of 20.7$ over 1935; $59,671,000,
or 14$, to chain broadcast, a gain of 21,1$ over 1935;
$34,000,000, or 7.9$, to outdoor, a gain of 17.2$ and about
$2,100,000, or .5$ to car cards, compared with $2,200,000 in
1935.
XXXXXXXXX
The U. S. Commerce Department reports that 8,216
new radio licenses were issued in Palestine in 1936, bringing
the total number of licenses in force to 20,388 at the end
of 1936, against 12,172 at the end of 1935. The large
increase in the number of licenses is attributed to the
stimulation in the use of radio sets caused by the opening,
on March 30, 1936, of the Palestine Broadcasting Station.
As the total value of imports of radio sets has shown a
slight decrease, the majority of new sets must have been
small and inexpensive types purchased principally for recep¬
tion from the local station.
XXXXXXXXXXX
12
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Heinl Radio Business Letter
Arctic Expedition To Tackle Radio Problems. .
V CBS Adds WAIM, Anderson, S. C. , To Network .
Broadcasters Condemn Pan American Short-Wave Station
Radio Fire-Police Alarm Is Approved By FCC . ..
/ Deletion Of WRAX Proposed In Examiner1 s Report...
Dues Rise Voted Down; Press Agent Proposed By NAB
*1 Television Exhibition Draws Curious Crowd .
Copyright Occupies Spotlight At NAB Convention
Two New Stations Recommended By FCC Examiners.
Independent Broadcasters Reelect Edward A.
'•Paley Listed Among Treasury's "Tax-Avoiders
Rural Market Leads Cities In Radio Field...
Allen
it
Broadcasting Abroad,
Trade Notes . .
2
3
4
.9
10
British Announcer Of " All-Li t-Up 11 Fame Writes A Book . 11
No, 1039
lOlO tO to D- CO CO CO
June 26, 193?
ARCTIC EXPEDITION TO TACKLE RADIO PROBLEMS
Many problems still puzzling radio engineers are
expected to be solved this Summer through further extensive
researches to be made in the Arctic regions, according to
Commander E. F. McDonald, Jr. , President of Zenith Radio
Corporation.
He made this statement in announcing that a specially
designed code-and- radio transmission and receiving apparatus
had been installed on the "Gertrude L. Thebaud", famous
Gloucester fishing and racing schooner, which is being out¬
fitted at Gloucester, Mass. , for Commander Donald B. MacMillan's
1937 Arctic Expedition. The expedition was due to sail June
24th, and will be MacMillan's sixteenth trip to the North.
It is expected that the careful correlation of meteor¬
ological and magnetic observation will result in further in¬
formation on long distance radio communication. The effect of
the aurora borealis on radio reception will be studied with a
view to solving the annoying problem of fading in long distance
radio transmission and reception. Radio operator Walter
Ramsden of the Zenith staff, a member of the American Radio
Relay League, accompanied the expedition. The ship's radio
transmitter will be known as Station WHFN.
The "Thebaud”, veteran of several spirited brushes
with the Canadian contender "Bluenose" in which victories fell
turn-and-turn about, sailed for Baffin Land with a noted list
of scientists and twenty college and preparatory school stu¬
dents who will share not only in the scientific researches to
be made, but will serve as crew, as part of the daily instruc¬
tion in seamanship and navigation.
The radio apparatus being carried on the "Thebaud"
is much improved over the early apparatus brought aboard
Commander MacMillan's ship the "Bowdoin” by Commander McDonald,
when he signed on as a member of the Arctic expedition of 1923.
MacMillan was the first Arctic explorer to use the radio and
during his 1923 expedition he received on it news of President
Harding's death. The expedition then within nine degrees of
the North Pole, its ship frozen in the ice and buried under
the Arctic snows and with igloos built over the hatches for
protection against the cold winds, raised its flag to half-mast
along with the rest of the country.
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The "Thebaud" will make its headquarters off the
northerly shores of Baffin Land. Stops will be made at Sydney,
N.S. , and at a string of Moravian mission stations along the
Labrador coast where radio sets and windchargers for radio
and electric light will be dropped to missionaries, governors
and radio operators. Several of these northern posts now have
no dependable source of radio power or electric lights,
while others depend on gasoline-driven chargers. As gasoline
is scarce and expensive in the North, the wind is expected to
take over the job of lighting, and of running radio. Win-
chargers have previously been installed at a number of Arctic
points with success, and are being used also by the Soviet
Expedition now at the North Pole. As a matter of fact, the
radio running from a single storage battery and the wincharger
were both inspired by Arctic explorations.
Commander McDonald, during his 1923 and 1925 voyages
to the Arctic with MacMillan, left many dry battery-operated
radios with far northern missionaries and governors. In a few
months their batteries ran dovm, leaving them cut off from
communication. Realizing the injustice of bringing such
temporary radio to the North, McDonald turned his thoughts to
storage battery radio and a means of charging batteries from
the wind for use in isolated and unelectrified parts of the
earth. By 1935, he had succeeded in the solution of both
problems.
Among the noted scientists with the MacMillan expedi¬
tion are Dr. Martin J. Buerger of the Massachusetts Institute
of Technology; Dr. David Potter, of Clark University; Dr.
Alfred 0. Gross, of Bowdoin College; Harold S. Peters, of the
U. S. Department of Agriculture; V. C. Wynne-Edwards, of McGill
University, and Dr. Kenneth W. Sewall, of the Massachusetts
Memorial Hospital.
XXXXXXXX
CBS ADDS WAIM, ANDERSON, S. C. , TO NETWORK
Station WAIM, Anderson, South Carolina, will be
added to the Columbia Network on July 18th. The station, which
is owned and operated by Wilton E. Ha.ll, with business offices
and studios located at Anderson College, operates full time on
a frequency of 1200 kilocycles, 249.9 meters, with 100 watts
power.
XXXXXXXXX
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6/26/37
BROADCASTERS CONDEMN PAN AMERICAN SHORT-WAVE STATION
Opposition to the Celler Bill to construct a $700,000
government- owned short-wave broadcasting station in Washington
to improve relations with Pan American countries was voiced by
the National Association of Broadcasters at its Chicago conven¬
tion.
Action on the bill, sponsored by Representative
Celler (D. ), of New York, upon the suggestion of Commissioner
George Henry Payne, is being held up by the House Naval Affairs
Committee pending a report from the Navy Department.
The text of the resolution adopted by the NAB' follows:
"Whereas, there has been introduced into the Congress
of the United States a bill known as the Celler Bill, which
would authorize the construction, maintenance, and operation of
a government broadcasting station,
"Whereas, the existing system of broadcasting in the
United States makes available to the various departments of
the government ample time for broadcasting either domestic or
foreign programs,
"Whereas, the existing system of broadcasting in the
United States affords to the departments of the government the
greatest possible radio audiences,
"Whereas, the operation of a broadcasting station by
the Office of Education is opposed by all existing Federal and
State laws respecting education,
"Whereas, due to its official status, there would be
great danger of utterances over such a station giving offense
to friendly nations, and creating unnecessary international
incidents,
"Whereas, the enactment of the Bill would result in
a useless and extravagant expenditure of public funds,
"Now, Therefore, Be It Resolved, That the National
Association of Broadcasters express its opposition to the
passage of this Bill, and instruct its Board of Directors to
use all legitimate means to cause its defeat, and urge the
members of the National Association of Broadcasters to en¬
courage their members in Congress to oppose the passage of this
bill,"
XXXXXXXX
6/26/37
RADIO FIRE-POLICE ALARM IS APPROVED BY FCC
Burglar alarms that are picked up directly by cruis¬
ing police cars are to be tested in Seattle, Wash., as the
result of issuance this week by the FCC Telegraph Division of
an experimental permit to the Howton Radio Alarm Company.
The tests, to be conducted in conjunction with the
Seattle Police and Fire Departments, are to determine the
practicability of the alarm which its sponsors claim is more
economical and more effective than the automatic wired alarms.
The experiments propose to equip certain banks and other busi¬
ness houses with the alarms, which consist of a high quality
crystal controlled transmitter, storage battery, and phono¬
graph record.
The recording has only two messages: one broadcasts
a burglar alarm, while the other turns in the fire alarm. The
first is set off by treadles and similar devices, whereas the
second is operated by thermostat or other instruments sensitive
to heat.
Promoters of the alarm claim that it is silent in
operation, cheaper than wired alarms, and that it has the
advantage of having no wires that may be cut easily by burglars.
The cost per customer is estimated at $5 a month.
The FCC Examiner, in recommending the granting of an
experimental license, cited its advantages, as claimed by the
sponsor, but raised the question of whether it would over¬
crowd the police radio waves, on v/hich it would transmit the
alarms, and whether false alarms might be increased.
Objection to the granting of the license was made by
Western Union because of its threatened competition with wired
alarms.
XXXXXXXXXX
DELETION OF WRAX PROPOSED IN EXAMINER’ S REPORT
Deletion of WRAX, Philadelphia, and the absorption of
its facilities by WPEN, Philadelphia, were recommended to the
Federal Communications Commission this week by Examiner Tyler
Berry.
The Examiner at the same time recommended that control
of both stations be transferred from Clarence H. Taubel to
John Iraci, and that WPEN be granted an increase of power to 1 KW,
and unlimited time on 920 kc. , now shared with WRAX.
XXXXXXXX
- 5 -
6/26/37
DUES RISE VOTED DOWN; PRESS AGENT PROPOSED BY NAB
Members of the National Association of Broadcasters
voted down a proposed amendment to their Constitution to
raise dues in Chicago this week and at the same time adopted
a resolution to hire a press agent.
The latter will be known as a Director of Advertis¬
ing and will work under the direction of the Managing Director.
His job will be "to advance the art of radio broadcasting in
the minds of the people and to portray a true picture of the
value of the radio industry, in its present form, to the
United States."
Among other resolutions adopted were endorsements
of three-year licenses for broadcasting stations and condemna¬
tion of the Boylan license tax plan drafted by Commissioner
George Henry Payne of the Federal Communications Commission.
XXXXXXXX
TELEVISION EXHIBITION DRAWS CURIOUS CROWD
"The television exhibition, which is open to the
public at the Science Museum, South Kensington, removes all
cause for that slight trepidation afflicting many good people
invited to watch a demonstration in a trade viewing- room".
World Radio states. "Although no one is pressed to buy on the
spot, many visitors to viewing- rooms do nurse a brooding sense
of obligation to the kind and obliging salesman, and end up by
buying at least a brace of terminals or a fixed condenser.
But at South Kensington the public is welcome to inspect at
leisure the most comprehensive television display yet staged
in any country, and to see demonstrations of practically all
the systems extant, from the early low^definition pictures to
the most advanced cathode-ray and ®big screen1 methods.
"The exhibition, which was opened by Lord Selsdon,
Chairman of the Television Advisory Committee, traces the art
from its earliest beginnings in the ‘seventies, when it was
accidentally discovered at the Valentia Cable Station that
selenium rods used as resistances altered their value under the
influence of strong sunlight. It includes the early apparatus
with which John Logie Baird transmitted the face of a ventril¬
oquist' s doll in 1925; and in the modern section, there are
practical demonstrations of modern reception on local trans¬
missions as well as the broadcasts from Alexandra Palace. Firms
showing their latest catho de-ray receivers in action include
Baird, Marconi-E.M. I. , Ferranti, Cossor, and G.E.C.
"The exhibition, to which admission is free, will con¬
tinue until September. "
XXXXXXXX
rp ti
f
6/26/37
COPYRIGHT OCCUPIES SPOTLIGHT AT NAB CONVENTION
Copyright discussion and resolutions occupied the
spotlight at the Chicago convention of the National Association
of Broadcasters during one of the least controversial meetings
on record.
Following a report by James W. Baldwin, Managing
Director, during which he recommended, among other things,
that broadcasters try to send at least one sympathetic U. S.
Representative from each State to Congress, the broadcasters
adopted several resolutions.
The resolutions urged:
(1) Prosecution of the U. S. suit against the
American Society of Composers, Authors and Publishers.
(2) Passage of the Duffy Copyright Bill.
(3) Approved the action of NAB Directors in organiz^
ing the NAB Bureau of Copyrights, Inc.
(4) Set up a Committee composed of one NAB member
from each State to gather data on copyright problems and
correlate them.
XXXXXXXX
TWO NEW STATIONS RECOMMENDED BY FCC EXAMINERS
Construction permits for the erection of t?/o new
broadcasting stations were recommended to the Federal Communi¬
cations Commission this week by Examiners.
The applicants are the Schuylkill Broadcasting Co. ,
Pottsville, Pa. , for 580 kc. with 250 watts power, daytime,
and the Twin City Broadcasting Corp. , Longview, Wash. , for
780 kc. , with 250 watts power, daytime.
Improved facilities were recommended also for WABY,
Albany, N. Y. The station asked for an increase in daytime
power from 100 to 250 watts.
XXXXXXXXX
- 7 -
6/26/37
INDEPENDENT BROADCASTERS REELECT EDWARD A. ALLEN
Edward A. Allen, of WLVA, Lynchburg, Va. , was reelected
President of the National Independent Broadcasters, Inc. , during
a meeting held in Chicago simultaneously with the NAB convention.
The organization is composed of NAB members who own or operate
100-watt broadcasting stations.
Other officers chosen are:
Edward E. Bishop, of WGH, Vice-President; W. W.
Behrman, of WBOW, Secretary, and Arthur Westlund, of KRE,
Treasurer. Board of Directors elected include: James Curtis,
KFRO; Clifford Chaffey, WEEN, and W. B. Greenwald, KWBG-,
xxxxxxxx
PALEY LISTED AMONG TREASURY’S "TAX-AVOIDERS"
William S. Paley, President of the Columbia Broadcast'
ing System, was listed among the names of prominent persons
accused of " t ax- a' voiding " by the Internal Revenue Bureau this
we ek.
The report to a joint Congressional Committee stated
that Mr. Paley had "avoided” portion of his tax by means of
a personal holding company. While he reported an adjusted 1936
net income of $104,563, with a tax liability of $4,057, the
Treasury estimated his liability would have been $11,690 had
his net income been undistributed.
XXXXXXXXXX
RURAL MARKET LEADS CITIES IN RADIO FIELD
Farms and small towns are now buying radios at a
faster proportionate rate than the large cities, E. F. McDonald, Jr.
President of Zenith Radio Corp. told stockholders at the Company’s
annual meeting of stockholders held in Chicago this week, accord¬
ing to Radio Daily.
Production of radio sets by Zenith in the fiscal year
starting May 1 is 50 percent ahead of last year, despite removal
to a new plant, Commander McDonald said. He credited the
increase largely to the switch in market from large cities to
the rural communities.
XXXXXXXXX
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6/26/37
: : : BROADCASTING ABROAD :
Broadcasting in Japan Proper is controlled by the
Japan Broadcasting Corporation, which, in turn, is supervised
by the Ministry of Communications. Programs are subject to
strict censorship and nothing that might harm the interests of
the country and its peoples is allowed to go on the air.
Advertising of all sorts is prohibited. Political speeches
cannot be included in the daily program. Even election campaign
speeches and Diet proceedings cannot be broadcast.
The Japan Broadcasting Corporation operates 30 trans¬
mitting stations in Japan Proper, including 3 alternative
transmitting stations for the large stations at Tokyo, Osaka,
and Nagoya. These stations have certain local features included
in their programs but in general they depend upon two main
daily programs broadcasted from Tokyo and Osaka and then relayed
to the smaller outlying stations. The stations are distributed
on a plan seeking to give approximate equality of reception
throughout the islands, aiming toward an ideal of one-station
reception in all regions.
The strict Government control is exercised with a
double purpose. Instruction of the people is the principal
object, and the second is the discouragement of any facilities
which would make Japan a field for the dissemination of foreign
propaganda. The distribution of stations is part of this pro¬
gram, inasmuch as low-powered receivers are capable of satis¬
factory service under the plan in effect, and there is little
encouragement to the purchase of higher powered types which
would be within the range of foreign broadcasting. An early
law, but one abrogated some years since, prohibited the use of
receivers capable of receiving any foreign stations.
Ten- thousand-watt central stations in Japan Proper
are located in the principal cities of Tokyo, Osaka, Nagoya, Hir¬
oshima, Kumamotok Sendai, and Sapporo. To supplement these main
stations 20 others have been established with aerial power rang¬
ing from 300 to 3,000 watts, at important points throughout the
country. All these stations have been linked by a permanent
relay line, so that events of national interest can be broadcast
to every corner of the country. Five more stations will be
added during 1936.
The revenue of the Japan Broadcasting Corporation is
obtained from the license fees paid by owners of radio sets.
Each owner pays a monthly fee of 50 sen to the corporation,
while an initial fee of 1 yen is paid to the Ministry of Com¬
munications. Broadcasting time is not sold and no advertising
of any kind is permitted over the radio in Japan. The corpora¬
tion pays the Government an annual monopoly fee amounting to
20 sen per subscriber.
XXXXXXXXX
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6/26/37
TRADE NOTES
Westinghouse Electric & Manufacturing Co. will
present an exhibit and demonstrations of the latest develop¬
ments in radio and television at the New York World's Fair in
1939. The company has just signed the first formal contract
for exhibit space in a building to be erected at the Fair.
The American Radio Telegraphists* Association has
withdrawn from negotiations by maritime labor unions for a
peace settlement pending the outcome of an election by the
crews of eighty-eight Atlantic and Gulf steamship lines for a
bargaining agency.
Denial of the application of the Waterloo Times-
Tribune Publishing Co., Waterloo, la., for a construction per¬
mit to operate a station on 1370 kc. with 100 watts power, day¬
time, was recommended to the Federal Communications Commission
this week by Examiner George H. Hill.
Maurice M. Boyd, of the National Spot Sales division
of the Eastern Sales Department of the National Broadcasting
Company, has been appointed head of the division, effective
July 1st. He succeds F. E. Spencer, Jr. , resigned.
Mr. Boyd joined the National Broadcasting Company
in January, 1933, coming from the Merchandising Division of
Macy * s. He also has been associated with Westinghouse and
Stations WBZ-WBZA. He is a graduate of Purdue University.
There were 100,000 receiving sets in the Irish Free
State on December 31, 1936, or one to every 30 inhabitants.
Several British manufacturers began to assemble their sets in
this country during the year. One American set has been
assembled in Dublin for the past three years. The import duty
on completely assembled sets is 50 percent ad valorem, while
knock-down sets may be imported at 25 percent ad valorem.
XXXXXXXX
- 10 -
■y •
5/26/37
BRITISH ANNOUNCER OF " ALL-LI T-U?" FAME WRITES A BOOK
The British radio announcer who aroused an inter¬
national chuckle recently by his description of the British
naval review as "all lit up" has written a book,
Thomas Woodrooffe, the announcer, is the author, and
the book’s title is '’Yangtze Skipper".
Ralph Thompson, reviewing the volume in the New York
Times, remarks:
"Most radio announcers (no need to mention names)
write pretty frothy books when they write books at all. Not
Thomas Woodrooffe. His ’Yangtze Skipper* ($2.50), the first
volume published by the nev; New York firm of Sheridan House,
is light reading, however one looks at it, but it is also good
reading and highly entertaining,
"Mr. Woodrooffe went into radio work a few years
ago, after retiring from the British Nayy with the rank of
Lieutenant Commander. In time he was put in charge of the
British Broadcasting Company’s outside programs, and, as those
with a memory for vital detail will recall, it was he who
stood at a microphone a month or so ago and began so lively a
description of the British fleet all lit up that headquarters
thought it best to cut him off short. There was brief and
irreverent mention of the arrair in our own press; English
papers, I am informed, took the thing more seriously and point¬
ed out that Mr. Woodrooffe had been under great strain because
of the coronation and would no doubt recover during an extended
sick-leave. "
XXXXXXXX
The Buenos Aires broadcasting Station LSI, which is
operated by the municipal government and broadcasts from the
Colon Theater, has placed an order for new American equipment
which will make it one of the world’s most powerful and up-to-
date transmitters. While the present characteristics are 710
kilocycles, 5,600 watts, the new transmitter will have a 50
kilowatt antenna power. It is also claimed that it will be
the first station in the world to use the Doherty high effic¬
iency circuit. It is expected that the new transmitter will
be in operation within a year1 s time.
XXXXXXXXXX
11 -
t » ■ * »' •
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
|
CONFIDENTIAL - Not (or Publication
a
INDEX TO ISSUE OF JUNE 29, 193?
Radio Legislation Eelieved Ended For This Session
Dr. Angell Joins NBC As Counselor Of Education...
2
ASCAP Makes Friend Gesture To NAB President .
NBC Added 21 Stations In Half Of 1937 . .
Newspaper Fails To Dislodge Lutheran Radio Station
Cuba Plans Big Purchase Of School Radios .
BBC Television Station Dominates London. .
Two New Stations Recommended By FCC Examiners .
Broadcasting Abroad . . .
Sun’s Rays Absorb Radio Signals, Scientists Declare . 9
Trade Notes . 10
Philco To Make 2,000,000 Radios This Year . . . 11
NBC International Broadcasts Reach New High . 11
Transradio Plans Facsimile Demonstration . 12
WOR-Mutual Plans Expansion At Meeting . 12
No. 1040
CD CD 0} CJiCn ^ ^
i-
June 29, 1937
RADIO LEGISLATION BELIEVED ENDED FOR THIS SESSION
With Washington’s famed Summer growing warmer and
members of Congress becoming more and more restless in anticipa¬
tion of adjournment, indications are that Congress will enact
no more radio legislation at this session.
However, as this is only the first session of the
75th Congress, all bills introduced will remain vital at next
session.
Copyright legislation, it is believed, will be delayed,
along with proposed tax measures and a bill to keep newspapers
out of the broadcasting business.
Likewise, the proposal for erection of a Pan American
short-wave station in JJa^hi-ngton is not, expected to be acted
upon before next year although hearings may be started in the
House if Congress remains throughout the Summer.
The Boylan tax bill, sponsored by Commissioner George
Henry Payne, is apparently shelved for this session although it
is by no means dead. Whenever the House Ways and Means
Committee beglmP scouring around for new revenue, the broad¬
casting industry is likely to be examined.
Talk of a broad investigation of the industry and
the administration of the Federal Communications Commission has '
practically stopped. Since the death of Representative
Connery ( D. ) , of Massachusetts, no Democrat has taken up the
cudgel and even Representative Wigglesworth (R. ), of Massachus¬
etts, has been quiet.
Members of Congress, along with the broadcasting
industry, are awaiting eagerly the appointment of a successor
to Dr. Irvin Stewart, Vice Chairman of the Federal Communica¬
tions Commission. Dr. Stewart will leave the FCC on Wednesday
to take over his educational research job, and the post on the
Commission will become vacant unless the President makes a
nomination this week. For the last fortnight rumors of likely
candidates have quieted somewhat, and FCC officials have inclin¬
ed to the belief that a dark horse may be chosen.
XXXXXXXXXX
2
6/29/3V
DR. ANGELL JOINS NBC AS COUNSELOR OF EDUCATION
Dr. James Rowland Angel 1, retiring President of
Yale University, will become Educational Counselor of the
National Broadcasting Company in September at a salary of
$25,000 a year, it was announced this week.
Seen as a move to improve the relationship between
commercial broadcasters and organized educators. Dr. Angell* s
appointment was hailed by Dr. John W. Studebaker, U. S.
Commissioner of Education, and others.
A statement issued at New Haven said that Dr. Angell
accepted the appointment at the urgent invitations of officials
of the National Broadcasting Company and the Radio Corporation
of America, among them being Owen D. Young, Gen. James G.
Harbord, and David Sarnoff.
Dr. Angell is expected to do for radio education what
Dr. Walter Damrosch did for the improvement of musical programs
in broadcasting.
Dr. Angell, in accepting the appointment, said:
nI am accepting the invitation with great enthusiasm
and in the hope that the opportunity given me will allow me to
render a real public service. The educational possibilities of
radio are but just beginning to be fully appreciated, and I
trust I can make some small contribution to increasing its signif¬
icance for young and old alike. ”
Dr. Studebaker sent the following telegram to Maj.
Lenox R. Lohr, President of NBC;
"I congratulate the National Broadcasting Company on
securing the services of Dr. James R. Angell in studying educa¬
tional and cultural broadcasting abroad and in this country. On
the basis of his studies, he will be able to give valuable
advice to your company and to educators. Without doubt he will
aid all of us in the development of new plans for such coopera¬
tion between broadcasters and educators as will increasingly
serve the general welfare. "
Dr. Angell* s decision was made after several months of
consideration and numerous discussions with NBC officials.
11 The National Broadcasting Company", Mr. Lohr said,
"is greatly honored by the privilege of having associated with
it in a full-time capacity a man of Dr. Angell* s distinguished
attainments and notable intellectual station.
"In joining us, he is only changing his base of educa¬
tional endeavor from New Haven to New York, from a university
to the air. He will have a free hand to device and suggest
methods by which we may more effectively serve 'radio’s listening
millions. "
- 3 -
XXXXXXXX
6/29/37
ASCAP MAKES FRIENDLY GESTURE TO NAB PRESIDENT
Despite criticisms of the American Society of Authors,
Composers, and Publishers at the recent Chicago convention of
the National Association of Broadcasters, E. C. Mills, Chairman
of the ASCAP Advisory Committee, this week wrote John Elmer,
new NAB President, a letter of congratulation and good wishes.
Foreshadowing a conference on copyright problems, Mr.
Mills wrote:
“May I extend personal and official congratulations
to you upon your election as President of the NAB, and avail
myself of this opportunity to say that at any time a discussion
of mutual problems with this office seems desirable to you, I
hold myself entirely amenable to your commands,
’’That there are problems which merit discussion is
beyond question. I want you to know that ASCAP has always sought
and now seeks the goodwill of its broadcaster^customers and that
we will be delighted at all times to discuss with you any pro¬
posals or suggestions looking toward an enhancement of a friendly,
mutually agreeable and understanding relationship. 11
XXXXXXXXX
NBC ADDED 21 STATIONS IN HALF OF 1937
Expanding and intensifying its coverage in communities
containing a total population of approximately 7,500,000 persons
in seventeen different States, the National Broadcasting Company
added twenty-one broadcasting stations to its nationwide net¬
works during the first half of 1937, This brings the total
number of NBC stations to 126, the largest group of affiliated
stations in the world.
Addition of the new stations not only strengthens NBC
from a national standpoint, but also materially improves network
service in many local listening areas. Moreover, some points
are now receiving national radio network programs for the first
tine.
Nineteen of the new outlets are already actively
associated with the networks; the other two will become NBC
stations within the next few months. The first group add.ed
43,350 watts daytime power and, 31,150 watts night-time power to
NBC. The other two stations will add 2,600 watts daytime power
and 1,100 watts night-time power, making a grand total for all
126 stations of 1,862,350 watts daytime and 1,719,600 watts
night-time power,
XXXXXXXXX
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6/29/37
NEWSPAPER FAILS TO DISLODGE LUTHERAN RADIO STATION
The Pulitzer Publishing Co, , which operates both the
St, Louis Post- Dispatch and Station KSD, failed to convince
Examiner P. W. Seward that it should take the time now shared
with the Evangelical Lutheran Synod of Missouri, a report to
the Federal Communications Commission disclosed this week.
Station KSD had asked for unlimited time on 550 kc. ,
which it now shares with Station KFUO, the Lutheran station,
of Clayton, Mo.
Calling attention to "The Lutheran Hour1' as the
"most extensive nation-wide Protestant religious service broad¬
cast, Examiner Seward said:
"It is not in the public interest to delete a non¬
profit station whose programs spread the Gospel in an attractive
and interesting manner, and affords educational and cultural
programs, especially when that station serves, and proposes to
serve, the area with more diversified programs that will supply
a local need of general public interest. Further, it is not in
the public interest to grant a commercial station additional
time when it appears that the only beneficial result from the
granting of such additional time v/ould be to afford the commer¬
cial station an opportunity to increase its profits. This is
especially true when the additional time of the commercial sta¬
tion is to be devoted to a class of programs which is already
available from other stations in the area, "
XXXXXXXXXX
CUBA PLANS BIG PURCHASE OF SCHOOL RADIOS
The Instituto Civico Militar (Civil Military Institute)
of the Constitutional Army of Cuba, plans to provide each civil-
military school which is to be established with a radio receiv¬
ing set, self-contained lighting plant and motion picture
projector, according to the U, S. Department of Commerce. The
funds to make these purchases would be provided from the proceeds
from the sale of famr and industrial products produced by each
civil-military school. Persons interested in having further
details on the project should communicate with the Instituto
Civico Militar, Simon Bolivar 96, Habana.
XXXXXXXXXX
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6/29/37
BBC TELEVISION STATION DOMINATES LONDON
Following is a description of the London television
station of the British Broadcasting Corporation as released by
the British Broadcasting Corporation this week:
"From a hill 306 ft. above sea level the BBC’s tele¬
vision station dominates London and a large portion of the Home
Counties. It is built into the southeastern corner of Alexandra
Palace - a North London landmark and pleasure resort for more
than sixty years - and from the large bay windows of the upper
offices below the aerial nearly all London can be taken in at a
glance. The importance of height to television broadcasting can
hardly be over-emphasized, for under normal conditions the range
of the ultra-short waves used is extended as the height of the
transmitting aerial is increased.
"Surmounting the reconstructed east tower, itself 80 ft.
high, is the tapering lattice mast, rising to a height of 220 ft.
Thus the aerial array for vision transmissions, which is mounted
at the summit of the mast, is more than 600 ft. above sea level.
Immediately below the vision aerial is the aerial for the
accompanying sound transmissions.
"The new station fulfils the recommendations of the
Television Advisory Committee appointed to consider the develop¬
ment of television in Great Britain. Provision is made for
experimental transmission by the system developed by the Marconi-
E.M.I. Television Company. The Company has provided a complete
television system, including both vision end sound pick-up
apparatus, and the television transmitter itself. The BBC has
been responsible for the sound transmitter and its associated
aerial, both of which were manufactured by Marconi * s Wireless
Telegraph Company.
"In its main essentials, therefore, the equipment com¬
prises a television studio with an associated control-room and
ultra,- short- wave television transmitter, and an ultra.- short-wave
sound transmitter.
"The entrance hall is at the base of the tower. To
the right is the receptionist’s desk, and immediately facing the
visitor is the main door to the stabrway leading to offices and
studios. On the left is the entrance to the ground-floor corri¬
dor, which serves the two transmitters, projection theatre,
restaurant, and scenery-production shop. Nearest to the entrance
hall is the television transmitter, which operates on a frequency
of 45 megacycles per second (wavelength: 6.67 metres).
"Next is the sound transmitter hall, which accommodates
an ultra- short- wave installation of orthodox design for radiating
the speech and music accompanying the vision signals. Its
operating frequency is 41.5 megacycles per second (wavelength:
7.23 metres).
"Adjoining the sound transmitter is the f ilm-pro jection
theatre, or miniature cinema, in which film excerpts can be
selected and timed for inclusion in the transmissions. At least
thirty people can be comfortably accommoda.ted in the cinema.
— 6 —
* -A <
6/29/37
"At the southwest extremity of the BBC section of the
Palace is a large area intended either for scenery construction
or for televising such objects as motor cars and animals which
cannot be brought into the studio or televised outside. Lorries
can drive straight in. Lifting tackle can take up scenery and
properties weiging a ton through a trap-door in the roof to the
second dock, 25 ft. above.
"An interesting feature at this point is the ramp or
sloping runway down which the television camera can travel to a
concrete ’apron’, approximately 1,700 square feet, on the terrace
outside, forming a platform for televising open-air performances
or special experimental programs.
"Beneath the productions shop is the boiler plant
serving the whole of the BBC section of the Palace. Also on the
ground floor is the restaurant, providing an all-day service for
the benefit of staff and artists* It has seating accommodation
for sixty, and at least 1,000 meals can be provided during a
working day.
ft The staircase from the entrance hall leads up the tower
to the studio floor - the second story of the tower. Engineers’
offices are situated on the first floor. Offices on the studio
floor are occupied by the Productions Manager, studio managers,
and secretarial staff.
"Leaving the tower on this floor, the visitor enters
the studio. Measuring approximately 70 ft. by 30 ft. , with a
height of 25 ft., this studio is divided into two stages - A and
B - of which A, the larger, gives an acting area of approximately
24 feet square. It is equipped with two sets of tableau curtains.
Lining the studio on two sides are hanging velvet curtains run¬
ning on two tracks, the front curtain being black and the rear
one white, to alio?/ for the interchange of backgrounds. Each
stage has separate lighting, controlled from a central switchboard.
Emitron instantaneous television ’cameras1 are used.
"Across the middle of the studio runs a steel lighting
bridge, which allows additional lights to be trained on either
stage.
"High up in the west wall, a large plate-glass window
indicates the position of the control room, where the producer
and the engineering assistants operate. The floor is covered
with thick black linoleum and the walls a.re acoustically treated
with an asbestos compound.
"Next to the control room, already mentioned, is the
Marconi-E.M. I. tele-cine room, containing two projectors and
scanning cameras for televising films.
"On the opposite side of the corridor on the studio
floor are the artists’ dressing-rooms. There are five rooms for
men and five for women, each set of rooms having its own bath.
"At the southwest end of the studio floor is the con¬
crete scene dock for storing scenery and properties. Adjoining
the dressing-rooms is the Band Room, the walls of which have been
acoustically treated.
"The BBC has also acquired the Alexandra Palace Theatre,
which may be used later on for preliminary rehearsals and experi¬
mental programs. "
xxxxxxxxx
- 7 -
TWO NEW STATIONS RECOMMENDED BY FCC EXAMINERS
Construction permits for two new broadcasting stations
we re recommended this week by Examiners to the Federal Communi¬
cations Commission.
The applicants are: Carolina Advertising Corp. , Columbia,
S. C. , for 1370 kc. with 100 watts nighttime power and 250 watts
daytime, unlimited time; and W. E. Whitmore, Hobbs, New Mexico,
1500 kc. , 100 watts power, daytime operation.
XXXXXXXX
• o
BROADCASTING ABROAD : :
v •
• •
There are three broadcasting stations in the Philippines.
They are KZRM, KZEG, and KZIB.
KZRM lias purchased a high fidelity short-wave set
developing 1 KW at the antenna. It is not yet certain on what
wave-length the short-wave set will operate, but it will probably
be on a 31 meter band at 9,570 kc frequency or a 25 meter band
at 11,840 kc. frequency. KZRM is the only station receiving a
subsidy from the Radio Broadcasting Fund under the terms of
Act No. 3997, which requires that it have sufficient power and
satisfactory facilities and apparatus to render reasonably
satisfactory service under normal conditions throughout the
Philippine Islands. By an agreement with the Radio Regulations
Division made in 1935 and revised at the beginning of 1936, the
subsidy is to equal the different between the operating cost and
advertising revenue of the station but may not exceed 6,700 pesos
a month.
KZRM broadcast a total of 2,728 hours during 1936, of
which 539 hours was educational, including speeches, and 758
hours made up of news, weather reports, stock quotations, etc.
Another 710 hours was made up of entertainment by local talent,
430 hours of recorded music, mainly phonograph records, and 282
hours of sponsored programs, including some electrical transcrip¬
tions from the United States. There are occasional rebroadcasts
of important events in the United States and Europe brought in
on short-wave and rebroadcast by KZRM,
KZEG was opened in 1932 as a supplement to KZRM, using
the same studios, but transmitting over 1 kw station with about
850 watts at the antenna. It broadcasts during the day, when
KZRM is silent, and programs are heard throughout most of Luzon
but not regularly in most other parts of the Islands. Programs
are made up mainly of phonograph records. It receives no subsidy
but had an advertising revenue of 13,845 pesos in 1936, or about
60 percent greater than in 1935. About 25 percent of the adver¬
tising revenue was from the owners of the station, however.
Advertising revenue approximately covered the cost of operation,
- 8 -
6/29/37
KZIB is operated by I. Beck, Inc., department store
owners and radio distributors. Programs are made up about 35
percent of local talent, 15 percent electrical transcriptions
and 60 percent of phonograph records and are heard throughout
most of Luzon and sometimes in the southern Islands. They have
consistently applied for a subsidy but so far the Radio Regu¬
lations Division has held that their transmitter does not satisfy
the requirements of power and audibility throughout the Islands.
If the Government is accumulating a reserve toward nationaliza¬
tion of radio broadcasting, it is improbable that they will be
able to spair a subsidy for KZIB. Advertising revenue averages
about 1,000 pesos a month, which is not quite sufficient to cover
operating expenses. KZIB has built a short-wave broadcasting set
out of parts purchased locally, but has not yet been assigned a
wave-length or a license to operate.
A few electric transcriptions are received from American
advertisers. Aside from that, there is no considerable use of
transcriptions, although phonograph records are used a good deal.
XXXXXXXXX
SUN'S RAYS ABSORB RADIO SIGNALS, SCIENTISTS DECLARE
An explanation of how ionized rays from the sun not only
halt short-wave radio transmission but absorb the signals entirely
was given this week before the American Association for the
Advancement of Science at Denver, Colo, last week. The electric
currents shoot out from bright spots on the sun in the form of
ionized rays and flow to the earth. The bright spots are flares
of flame as big as the earth, but they last only a few minutes.
When the extra current flows from the sun flares,
short-wave transmission fades out completely. Even static dis¬
appears for short-wave sets. The radio signals are completely
absorbed by the extra electricity flowing thirty miles overhead.
The peculiar flares on the sun were discovered about
two years ago. They occur now and then in black sun spots or
accasionally alongside. With sun spots now approaching a maximum
of nearly 200 a day it has been possible to measure the electricity
coming from the flares.
R. S. Richardson of Mount Wilson Observatory, who has
been spending nearly all his time recently watching them, report¬
ed that their visible light is about twice as bright as the sun.
It takes only one minute after these rays hit the
earth's atmosphere for the doubled charge of current to appear in
the lower layers, and for short-wave radio to fade out. The
earth's magnetic currents are also affected almost instantaneously
both below and above ground.
XXXXXXXXX
- 9 -
6/29/37
TRADE NOTES
John J. Karol, Director of Research for the Columbia
Broadcasting System, was elected President of the Market Research
Council on June 25th. Membership of the Council is limited to
50, and is comprised of research men from agencies, media, and
independent research organizations. Carroll Rheinstrom,
Macfadden Publications, was elected Vice-President; Arthur Hirose,
McCall Corporation, Secretary-Treasurer.
The highest neon-lighted advertisement in the world
went into operation June 28th when huge letters atop the RCA
Building in Radio City blazed "RCA11 , symbol of the Radio Age,
across the night skyline of New York. The dedication ceremonies,
including talks by David Sarnoff, President of RCA, and Grover
Whalen, President of the New York World's Fair of 1939, were
broadcast by the National Broadcasting Company.
Carrier pigeons, used for some time to transport news
and pictures, were employed recently by radio station WOR, Newark,
when Bob Edge, hunting and fishing commentator received informa¬
tion via pigeon transport from a fishing cruiser 73 miles at
sea. W. G. Schauffler, pilot of the ship, sent news of fishing
conditions to the Naval Air Station at Lakehurst, N. J. , with
the piegon, and from there the information was phoned to WOR.
A network of radio stations now covers the entire Soviet
Republic. In domestic telegraph communication over long distances
(from 3,000 to 9,000 km.) radio handles from 60 to 70 percent of
the traffic. International communications are carried on prin¬
cipally by radio. As to broadcasting, the Soviet has about 70
stations which broadcast daily in over 60 languages of the
various nationalities.
New broadcasting equipment and new transmitter of WISN,
the Wisconsin News, Milwaukee, was decLics.ted recently at a
special broadcast over the Columbia network, with which the sta¬
tion is affiliated. The new equipment includes a 254 foot
vertical radiator antenna, reaching skyward from the street a
distance of 325 feet; a Western Electric volume booster ampli¬
fier, and a new, 1938 model RCA 1,000 watt high fidelity trans¬
mitter, the first of this new improved type which has been
installed by any radio station in the United States.
A contract between the five New York State Racing
Associations and the Columbia Broadcasting System, signing of
which has just been announced, will give Columbia exclusive ne
work broadcasting rights to all races run at the Aqueduct,
Belmont, Empire, Jamaica, and Saratoga tracks, beginning with
the 1938 season. Bryan Field, Nei? York Times racing editor
has been signed by Columbia to cover the events.
xxxxxxxx
- 10 -
6/29/37
PHILCO TO MAKE 2,000,000 RADIOS THIS YEAR
In introducing a new line of 1937-38 radios in New
York during tlie past week, James M. Skinner, President of the
Philco Radio and Television Corporation, announced that the
factories are geared to turn out 2,000,000 home and auto sets
during 1937, an increase of 200,000 over 1936.
Previously Philco had stated it will use 5,000,000
lines of newspaper space in advertising its new radios.
Seven of the new instruments are designed with an
inclined control panel which slopes back about 30 degrees from
the vertical to facilitate tuning. Hence the slogan ,fno squat,
no stoop, no squite" when tuning.
A new form of automatic tuning is described as "cone-
centric1’ because self-centering cones are used to provide auto¬
matic and accurate location of stations. The pointer is swung
to the desired station at which point the tuning handle is
depressed and this then slips the built-in cone into position,
thus centering the station. The action is silent and speedy.
The set is automatically tuned off during the operation, thereby
eliminating intern-station noises.
Spread-band dials that simplify and make easy the tun¬
ing of stations in the crowded foreign short-wave band are
included on all of the new outfits. G-lowing beams indicate when
the tuning range is accurate, while acoustic clarifiers, inclin¬
ed sounding boards, twin tone controls and improved loud-speakers
improve the tonal quality of the instruments. Then, too, there
are ’’flood-lighted” call letters on the automatic tuning dials,
noise excluders and robot tone controls®
XXXXXXXX
NBC INTERNATIONAL BROADCASTS REACH NEW HIGH
The elaborate Coronation coverage by the National
Broadcasting Company brought the total number of international
broadcasts over the NBC networks during May to a new high for a
single month of 107, over the previous record of 98 foreign pick¬
ups set last December at the time of theabdication crisis in
England. The time occupied by programs originating abroad during
May totaled 39 hours and six minutes.
Of the principal program origination points in this
country, New York, Chicago and Hollywood showed gains over May,
1936, San Francisco hours decreased.
XXXXXXXXX
11 -
6/29/37
TRANSRADIO PLANS FACSIMILE DEMONSTRATION
Herbert Moore, President of Transradio Press, termed
the recent "satisfactory adjustment" between Transradio and the
Columbia Broadcasting System and National Broadcasting Company
a "common sense" solution to the controversy, according to
Editor & Publisher. He expressed confidence that the settle¬
ment will contribute to a better understanding between news¬
papers and radio, declaring Transradio had demonstrated it
observes the tradition of honesty and accuracy in news. Trans-
radio^ purpose makes it "preposterous and utterly suicidal
for us to pirate news" he asserted.
He announced plans for the first large-scale demon¬
stration of facsimile broadcasting. Early in the Fall, he
said, Transradio will invite a group of interested broadcasters
to New York for private demonstrations which will test the
facsimile project as a practical adjunct to regular broadcast¬
ing. The process to be used is the Fulton process, which Trans¬
radio regards as adaptable to home operation. Development of
equipment has now reached the point where home reception can
be achieved with complete success, he said.
XXXXXXXXXX
WOR-MUTUAL PLAITS EXPANSION AT MEETING
Plans for the addition of more stations in new terri¬
tories to the Mutual Broadcasting System and a guarantee of
definite periods on all stations of the network for commercial
programs were among the major developments of the semi-annual
meeting of the MBS held in Chicago last week after the conven¬
tion of the National Association of Broadcasters.
Announcement was also made of three new sponsored
cooperative programs for the stations on the network starting
next Fall; plans were made to more closely unite the present
group of stations, and an improved and enlarged sustaining ser¬
vice from all affiliated stations was forecast which will bring
added special feature events to WOR-Mutual listeners.
The meeting was attended by more than thirty repre¬
sentatives of Mutual stations. Representing WOR were Alfred J.
McCosker, President of WOR and Chairman of the Board of Mutual,
and Kie o do re C. Streibert, Vice-President of WOR and First Vice-
President of the Mutual system.
XXXXXXXX
- 12 -
v.1 Rncinflss — Letter. -
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