% Digitized by the Internet Archive in 2017 with funding from University of Maryland College Park https://archive.org/details/heinlradiobusine1934hein ■> ' O' r Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C, CONFIDENTIA L — Not for Publication i ir-MSV.rU 1 § E 1 f / n i II U w ft lijj ] 1. 1.-7 - IprTN ; ;;g - . £ fp'l '.j u ! ;i uRj'AiN |A M q j Li : ! 0 ice--.- ! f 1 JAM 8“ 1234 j 7j8i9iMMl f ' 1 1 i r\ «*• 4 v •? 4 TO ISSUE OF JANUARY 4, 1964. News Broadcast Protest Fails to Get Rise Gut of . 2 Commission To Conclude Police Allocations Stuuy Next Month . .4 Increased Production of Radio Sets in Germany . .5 WPHR wins Point Against Removal. . 6 New Mayor Has Bye on WNYC . ..6 Decisions of the Federal Radio Commission. .............. 7 would Make Commercial Broadcasting Public Utility . 11 Await Roosevelt Communications Recoramendat ions . 11 Station Synchronization Hearing Set . 12 Code Authority to Consider Interpretation... . 12 Miss Laura Lee Guthrie Arrives with the New Year . .12 No. 686 A / a) j A / r.X January 4, 1934 NEVil S BROADCAST PROTEST FAILS TO GET RISE OUT OF CORLISS I ON Although the attack on thr radio-press news broadcast proposal now being considered by the press associations and net¬ works by Station KNX, Los Angeles caused the Radio Commission to be flooded by letters and telegrams the only action taken by the Commission was to draft a circular to be sent in reply stating that tne Federal authorities know of no movement to abolish news broadcasts. The reply explains that only a change in the method of broadcasting the bulletins is being considered. Where at present some of the news is being gathered by an agency set up by one of the networks under the new agreement, if it should prevail, the news would be supplied by newspaper press associat¬ ions. It was said at the Commission that about 15,000 letters and telegrams of protest had been received from KNX listeners many of whom seemed to be under the impression that news broad¬ casts were to be entirely abolished. M. H. Aylesworth, president of the National Broadcasting Company is reported to have likewise been deluged with similar letters. According to advices from the Pacific Coast the KNX ap¬ peal to listeners, which was carried by other stations linked to the Los Angeles station, was to the effect that the chains in the east had sold out to the newspaper interests. The program opened with the playing of 'Rule Britannia', with an announcer explaining that this 'was symoolical as the broadcast was to show the public that it was the newspapers here¬ after tnat are to rule the waves--air waves. The KNX appeal reviewed the proposed agreement between the networks end the newspapers and pointed out the probability of the creation of a news censorship board for radio which will censor all news and supply only bulletins that have previously been printed before. Satirizing what might happen under such regulations weather reports of the day before were read with this angle of the broadcasting ending: 'For today's weather see today's papers'. Another element of sarcasm followed with the pretended broadcast of a mythical meeting at Washington between Rresiaent 2 1/4/34 Roosevelt ana ambassadors of foreign nations on the debt question. It was interrupted as the President was about to be introduced by stating that tne program hau been censored. An official of the Radio Commission said that is would be impossible to reply to all communications received because many were written anonymously or the addresses were illegible. Commissioner Lafount, who represents the western states, said that in addition to the letters received by the Commission that he had received more than 300 communications from the states of Washington, Oregon, California, Nevada, Utah and Wyoming., Mr. Lafount said he had likewise received several hun¬ dred telegrams and letters from Alaska. Up there the listeners too seemed to get the impression that news broadcasts were to be done away with entirely. This, if true, they said would be more serious to them oecause in the wilds of the great North in the ordinary course of events it took from four to six weeks for news¬ papers to reach them and in some places even newspapers could not penetrate and thus without rau.io they would be deprived of news for months at a time. Mr. La-fount is acknowledging these pro¬ tests as rapidly as possible but it will doubtless be Spring, if not longer, before many of them hear from him. It was denied that tne National Association of Broad¬ casters was opposed to the plan to end the radio-press war. "If this impression prevails" said Philip Loucks, Managing Director of the Broadcasters, it is erronious. The fact is that the matter has never officially been brought to the attention of the Ass©cirt- ion nor has the / ssociation been called upon to take any action on the question which is one at the present time participated in only by representatives of press and newspaper associations and representatives of the networks. The proposal is looked upon with favor by Broadcasting which says editorially in its current issue: "At the price of a few sponsored news flash periods, yet without condeding its right to place commentators before the mic¬ rophone and to cover big news events directly from the scene, radio has secured an agreement with the leading factors in the American new spaper field that even radio's bitterest critic, the newspaper trade periodical EDITOR & PUBLISHER, calls "mutually liberal, in¬ telligent and workable" which "should yield sound benefits to press radio and public." "Broadcasting, by the agreement, concedes to journalism that news-gathering is merely incidental to radio's prime function of entertaining and educating, and radio secures from the press a plainly implied acceptance of the fact that sponsor-support is the proper American way of broadcast operation. 3 1/4/34 "Radio is willing, as it always had been, to cooperate with the press locally and nationally, and the agreement clearly indicates that inlightened leaders of the press recognize that radio can actually help the sale of newspapers." There may be some losses to radio in actual or potential revenues, chiefly in local sponsored news spots if the individual stations locally join the agreement, but we believe this is a small price to pay for a friendly alliance with the press associations and the newspapers. The agreement, of course, is primarily as be¬ tween the networks and the psess associations, but it will be noted that the twice daily news flashes are available at very small cost to any individual stations that may want them. Though the agree¬ ment only suggests what should be done locally, those who drew it up apparently believe the local radio-press squabbles will be amicably settled by following along the same course. "Except for monentous events, at whxch radio usually can have its own announcers on hand, short news bulletins are all that radio has ever wanted — a,nd these are to be furnished, at the re¬ latively insignificant cost of editing the reports of the three big press associations, together with flashes on news breaks of 11 trancendant importance." With radio competition in news-gathering out of the way, radio v/ants from the press only an assurance that its program listings, indisputably news to the great mass of news¬ paper readers, shall be carried as news." "Altogether, it is a peace that recognizes a mutual right to exist, each in its own shpere, and one that augurs an ultimately satisfactory settlement of the whole ramified national and local radio-newspaper issue." The proposed news-broadcasting agreement is to be con¬ sidered at a meeting of the Board of Directors of the Associated Press in New York Tuesday, January 9. XXXXXXXX TO CONCLUDE POLICE ALLOCATIONS STUDY NEXT MONTH Ample time will be given to states whose police frequenc¬ ies are changea to permit them to make the necessary changes in equipment by May 1. The result of the North and Central American Radio Agreement, adopted last year at Mexico City, made it possible for the Radio Commission in its revision of the rules and regulat¬ ions last October to allocate several additional telephone channels in the bands 1655-1715 kilocycles and 2300-2500 kilocycles for use by state and municipal police radio stations. In assigning these frequencies to stations in the United States, however, Dr. C. B. Jolliffe, chief engineer of the Federal 4 A A 1/4/34 Radio Commission states, the Commission must give due consideration to the present and future needs of other nations which are parties to the Central and North American Agreement . Consequently a thorough study of the allocation of frequencies bo police stations hae been taken in order to provide the maximum facilities for all stations now authorized and for additional stations which may be established in the future,, It is expected that this study will be completed next month and that notices will be sent to all licensees as to the frequency that each licensee should designate in its ap¬ plication for renewal of license. Those applications are due to be filed March 1„ At the present stage of development it appears that the zone system of allocation must be continued in effect for munici¬ pal police stations. In the case of state police stations it will be necessary that the frequencies be shared with other states as at present. It is believed that the mileage separation between two states sharing the same frequency will not be less than the distance between Massachusetts and Michigan. The Commission does not contemplate the adoption of any rule which would require state police stations to co-operate with municipal police stations. However, in the case of municipal police stations it will be nec¬ essary as in the past for all licensees within a zone to co-operate in the use of the frequency assigned to their particular zone in order to avoid interference. XXXXXXXX INCREASED PRODUCTION OF RADIO SETS IN GERMANY Stimulated by the interest of the Government in radio, production of receiving sets in Germany has increased to a marked degree during recent months, according to a report to the Commerce Department from Assistant Trade Commissioner, Rolland Welsh, Berlin. Some time ago, the report states, the Minister of Prop¬ aganda effected an agreement with twenty-six German radio manufact¬ urers to concentrate on the production of a special low-priced three-tube receiving set. This particular set is not capable of receiving distant stations. It is believed locally that the Governments desire is to have as many people as possible in the country in a position to hear the programs which are broadcast from the German stations which it owns and operates. From August to October, the first quarter of the current fiscal year, German producers sold 500,000 receiving sets, most of them being of the type referred to above, which retail around $30. 5 1/4/34 Ninety-eight per cent of the radios sold were for electric light socket connection* The fact that only 2 per cent of the receiving sets were for battery operation indicates that most of them were bought by city users* The institute of Business Research which has been in¬ vestigating the rad:'. o situation in Germany believes that the pres¬ ent high rate of production and sale of receiving sets will con¬ tinue and that at the end of next year there will be a total of 5,000,000 radio listeners in the country. XXXXXXXX WPHR WINS POINT AGAINST REMOVAL George H. Hill, Radio Commission examiner, recommended the commission delay the application for removal of Station WPHR at Petersburg, Va. . from the air. At the same time, Hill proposed WPHR be granted their application for a regular six months* license renewal to operate on 1,200 kilocycles, 100 watts night-time power and 250 watts power until local sundown. Hill said there was an insufficient showing of evidence to warrant a curtailment of the service rendered by the Peters¬ burg station. He said also there was a possibility of interfer¬ ence of WMBG at Richmond with WPHR if the Richmond application for an increase in power from 150 to 250 watts day-time power were granted. XXXXXXXX NEW MAYOR HAS EYE ON WNYC Although the new Mayor of New York, Fiorello La Guardia, has appointed Seymour Siegel assistant director of the Municipal broadcasting Station WNYC he said that the question as to whether or not the station would be scrapped in his Administration had not been definitely decided. Inasmuch as the operation of the station is said to be costing the city more than $50,000 an year LaGuardia is believed to be inclined to do away with it but has deciaed to investigate the situation thoroughly before taking action. - 6 - . . ••• . . , • . • • : • •« 1/4/34 WGST WNRA WCAD WMBH WSVS WSUI WJBK WIBM New DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (January 2, 1934) Ga. School of Technology Granted CP to make changes in Atlanta, Ga, eqpt. and increase day power from 500 watts to 1 KW. Kathryne Jones Muscle Shoals City, Ala. Granted license covering erection of new station - 1420 kc, 100 watts. Daytime. St. Lawrence Univ. Granted Auth. to operate from 10 Canton, N. Y. AM to 12:30 PM, and from 4 to 4:45 PM, Jan. 15. W. M. Robertson Joplin, Mo. Granted special temp. auth. to op¬ erate from 2:30 to 3:30 PM, CST, Sunday afternoons Jan. 7, 14, 21 and 28, 1934; and from 9:30 to 10 PM, CST, Sat. Evenings Jan. 6, 13, 20 and 27th. Elmer S. Pierce, Granted special temp. auth. Principal Seneca Vocation- erate from 8:15 to 9:30 PM, al High School, Buffalo, on Monday evenings, Jan. 8, New York and 29, 1934. to op- EST, 15, 22 State Univ. of Iowa Iowa City, la. James F. Hopkins, Inc, Detroit, Mich. Granted special temp. auth. to op¬ erate from 10 PM, CST, Jan. 12, 1934, to 1 AM, CST, Jan. 13/34. Granted special temp. auth. to op¬ erate from 8 to 9 PM, EST, on Jan, 4, 7, 11, 14, 16, 18, 21, 25, and 30, 1934; provided WIBM remains silent . WIBM, Inc. Jackson, Mich. Granted special temp. auth. to sign-toff at 7 PM, CST. instead of 8 PM, on Jan. 4, 7, 11, R, 16, 18, 21, 25, 28 and 30. SET FOR HEARING Brooklyn Daily Eagle Brdcstg. CP, 1400 kc, 500 watts, unltd. Co. Inc., Brooklyn, W. Y. time (Facilities WBBC , WLTH, 7 SET FOR HEARING (Cont'd) 1/4/34 New New W 4X1 WPG-L WEEX WPGS K6X0 W6XI KGHO Brooklyn Daily Eagle Brdcstg. Co. Inc., Brooklyn, N. Y. The Journal Co. ( The Milwaukee Journal) Waukesha, Wis. Ward & WVFW) . Also denied pe¬ tition of Brooklyn Daily Eagle Brdcstg. Co. Inc., asking that the Commission instruct its Ex¬ aminer to hold up his report on the pending appls. of the four Brooklyn stations until hear-’ ing is held on the application of Brooklyn Daily Eagle Brucstg Co. Inc., and that the Examin¬ er be authorized to consolidate all of said appls. into one case o Spec. Exp. license; 620 kc, KW, 1 KW night; Emission high speed facsimile, time of oper¬ ation from 12 midnight to 6 AM, and not more than 3 minutes at one time during broadcast day; To be heard before the Commiss¬ ion en banc Feb. 21st. APPLICATIONS GRANTED (Other than Broadcasting) City of St. Petersburg, Fla. City of Dinghamton, N. Y. American Radio News Corp. Tinley Park, Ill. County of Nassau, Police Dept, Mineola, N. Y. RCA Communications, Inc. Kahuku, Hawaii Same - Bolinas, Cal. State of Iowa, State Bureau of Identification, Des Moines, la. Granted Gen. Exp. license; freqs. 34600 and 41000 kc. 15 watts . Granted Mod. of CP extending osraple tlon date to Jan- 8, , 1934. Granted Mod. of CP to extend commencement date to Feb. 1, 1934 and completion date to Aug. 1/34. Granted Mod. of License to in¬ crease power from 200 to 400 watts. Granted Mod. of Lie. to add frequency 5845 kc. Granted Mod, of Lie. to add freqs. 5105, 7715 and 15430 kc. Granted renewal of lie. in ex¬ act accordance with existing license . 8 1/4/34 The Commission also granted 149 amateur station licenses, of which 51 were new and 98 Modifications or reissues. RATIFICATIONS (Action taken Dec. 13 1933) Granted 60 day auth. to operate 100 watt transmitter aboard Vessel Catalina; freq. range 375 to 500 kc . (Action taken Dec 16) Granted extension of program test period for 30 days from Dec. 16, pending action on license appl. WBCH Radiomarine Corp. of America Granted 3rd Class public ship lie, "TEXAS", Wash. D. C. (Action taken Dec. 20th) WKBV Wm. 0. Knox, -u/b as Granted extension of program test Knox Battery & Elec. Co., periodfor 30 days, pending action Richmond, Ind. on license appl. (Action taken Dec. 21st) KFTP Mackay Radio & Telg. Co. San Francisco, Cal. VNRA Kathryn Jones, Muscle Shoals City, Ala. WcFZ Irving H. Buck and Howard Folsom, d/b as Boys World Cruises New Orleans, La, Granted temp. auth. to operate station aboard Yacht BUCCANEER on freqs. 6210, 11040 and 8280 kc calling; 1670, 11025, and 8290 kc working; 30 watts. Co. Granted temp. auth. to operate on freq. 2110 kc in addition to pres¬ ent assignment for the unexpired period of existing licenses, cov¬ ering stations aboard vessels FLOW, FRANCES C. DENNY and GERTRUDE M. FAUCI. KDAT Radiomarine Corp. of America Granted 60 day auth. to operate Washington, D. C. 500 watt transmitter aboard vessel POMONA, pending receipt and action on formal appl. New England Tel. and Tel. Boston, Mass. (Action taken Dec. 26th) WHAM Stromberg Carlson Tel. Mfg. Granted license, 1150 kc, 50 KW. Co., Rochester, N. Y. Unltd. time. 9 :.S.C G 1 1/4/34 KFOR r* n <.\.± L ow 7/ BAX KUO A KTFI KUSD Vi/DFF New newel Colo; KG-AR Cornbelt Brdcstg. Corp. Lincoln, NT* 1/4/34 Congress before recommending anything not of an emergency nature and as highly controversial as it is believed a. communications bill may prove. It is believed that Senator Dill of Washington may oppose monopoly recommendations and that Senator white of Maine and others may oppose other phases of the communications recommendations. Thus it might go beyond party lines, a thing believed not to be de¬ sired by the Administration at this time. In the President's Budget recommendations the authorized obligation for the Radio Commission for 19o4 v/as set down os $640,000 and the budget estimate for 1935, $668,885. xxxxxxxx STATION SYNCHRONIZATION HEARING SET The Rodion Commission, Wednesday February 14, will hold a hearing upon the applications of Station WBAL of Baltimore and V/TIC of Hartford with regard to their synchronizing with other stations. The Connecticut station desires to synchronize with KRLD at Dalles and WBAL with WJZ, New York, with which it has here¬ tofore been synchronized. NBAL also desires to operate simultar. eously with KTHS, Hot Springs, during certain hours. XXXXXXXX CEDE AUTHORITY TO CONSIDER INTERPRETATION A meeting of the Code Authority of the Broadcasting In¬ dustry Monday January 15 in Washington, according to James W. Baldwin, code officer. The main business of the meeting will be the consideration of interpretation of the code regulations. Harry Shaw, of Station KTM, of Waterloo, la., is the only govern¬ mental representative thus far selected but it is expected the other two will be named in time for the meeting. E. 0. Sykes, chairman of the Federal Radio Commission, will probably be another of the governmental representatives and William Farnsv;orth Assistant to Deputy Administrator Sol Rosenblatt has been mentioned as a third. It is said that the labor people tried to name all three representatives but have now been prevented from doing so. XXXXXXXX MISS LAURA LEl GUTHRIE ARRIVES WITH THE NEW YEAR Heralding a Happy New Year to Mr. and Mrs. F. P Guthrie v/as the birth of a daughter Laura Lee Guthrie, in Washington, Thursday, December 28th. Mr Guthrie, who has a host of friends in the radio industry, is District Manager in Washington of R.C.A. Communications, Inc. 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication V INDEX TO ISSUE OF JANUARY 9, 1934. i High Frequency Picture Quality Improves . 3 Commission Prepares New Call List . 3 Paley Offers Network For Barred Speech Navy Strengthens Hawaiian Radio Communications . Roxy‘s Resignation Comes As No Surprise . Radio Liquor Advertising Policy Announcement Premature Business Letter Notes . Price-Fixing And 30-Hour Week Asked In Electric Code.. Broadcasting Rises Again In November . N. Y. Taxi-Radios Up To New Police Commissioner . 10 Decisions Of The Federal Radio Commission. . 10 No. 687 CO CD —Cl 03 CJi ^ ^ January' 9, 1934. HIGH FREQUENCY PICTURE QUALITY IMPROVES The prediction made that the very high frequencies would be the final locus for visual broadcasting appears to have been justified, the annual report of the Federal Radio Commission just issued states „ A number of licensees have given up their licenses specifying the lower frequencies and others heve stated that they were satisfied that the lower frequencies were unsuit¬ able, but desired to continue research in these bands for a short period to complete certain problems in progress. The quality of pictures, which it has been demonstrated is possible to transmit on the very high frequencies, has steadily increased, and some laboratory productions are capable of holding sustained interest. Pictures need no longer be confined to "close ups", but larger scenes may be transmitted. The art, how¬ ever, has not as yet progressed to a stage which would justify the adoption of standards by the visual broadcasting industry. Although much progress has been made in the laboratory, visual broadcasting is still in the experimental stage. So great has been the activity of experimental stations in investigating the possibilities of the very high frequencies for radiocommunication that this development must be considered the most significant and important of the year. It has been realized for several years that very high frequencies have a very definite place in the radiocommunication field, but only recently has suitable equipment been available. Demands for assignments are being made and the difficulties and problems incident to the commercial allocation of these frequen¬ cies can be foreseen. Although the transmission characteristics of the frequency band, for which commercial apparatus had been designed, are sufficiently well known at this time to leave no doubt as to their usefulness in many of the established services, there has not been enough data available to determine the particu¬ lar frequencies within the entire range most suitable for specific services. These data must be obtained before any plan of alloca¬ tion could be considered. They were obtainable from no other source than licensees experimenting in this field. A policy was therefore adopted, the purpose of which was to encourage experi¬ mental work of this kind to obtain the required data and at the same time to retain absolute control of the frequencies by con¬ serving their experimental status until such time as they could be allocated in such manner as to best meet the needs of all services . 2 1/9/34 No authority to operate on other than an experimental basis has been granted, and none of the frequencies above 50,000 kilocycles has been authorized for use in the continental United States on a commercial basis. Judge E. 0. Sykes, Chairman of the Commission, reported that there has been a steady increase in the volume of business conducted by the Commission. During the year there were more than 41,000 formal matters requiring Commission action. Secretary Herbert L. Pettey set forth that $873,000 had been appropriated for the Commission during the past year. Of this amount, $724,300 was spent on salaries. The next highest items were rents $17,683, travel expenses $15,600, and stenographic report¬ ing, $15,752. During the past few months illegal operation of radio stations has increased in the southwest section of the United States, particularly in the State of Texas where the State borders are far removed. Tnis illegal operation is based on the claim that the radio transmission is not interstate or does not inter¬ fere within the State with an interstate signal. Such claim is not borne out by facts obtained by investigation or by opinion of experts. In many instances the owners and operators, after being confronted with evidence of their interstate transmission, have voluntarily ceased operation and dismantled their stations. How¬ ever, there have been some who continued to operate in defiance of the law. It is believed that the institution of prosecution against a number of violators and their successful termination wi 11 have the effect of deterring others who aspire to operate radio stations in violation of the Radio Act. Fifty-six cities reported 15,604 arrests through the use of police radio; 232,838 emergency calls, and 29 cities reported the amount of property recovered as $223,689. X X X X X X X X COMMISSION PREPARES NEW CALL LIST Before the depression, broadcasting station call lists were issued frequently but not so these days. Nevertheless, the Commission is at present engaged in compiling an up-to-date list. It will be mimeographed and available about the middle of January . Copies may be had upon application to the Federal Radio Commission, 18th and E Streets, N. W. , Washington, D. C. X X X X X X 3 1/9/34 PALEY OFFERS NETWORK FOR BARRED SPEECH William S. Paley, President of Columbia, was quick on the trigger in offering the unrestricted facilities of the entire Columbia network to Frederick J. Schlink., President of Consumers5 Research, Inc., whose speech was kept off the air by Station WCALJ, Columbia ourlet in Philadelphia. Presumably Schlink was cut off for criticizing the Roosevelt Administration. An account of it reached the Federal Radio Commission and the circumstances in connection w ith the speech were: Station WCAU was picking up a session of the American Academy of Political and Social Sciences at which Mr. Schlink was a speaker. However, someone at WCAU did not like the tenor of Schlink1 s speech and took it upon himself to cut the speaker off. It was said that this was done without any authority from the station officials and was later described by a Columbia official as "an excess of zeal". He added that not only had network facilities been offered to Schlink but that the latter would be allowed to say "any darned thing he pleased." In explaining that Columbia has neither the right nor the intention to exercise censorship, Paley said that the action of the Philadelphia station was contrary to Columbia's establish¬ ed policy. Mr. Paley ' s promptness in offering unhampered facilities to Mr. Schlink was a healthy indication of the broadcasting industry's desire to be free from even being suspected of attempt¬ ing to censor free-speech. The incident also revealed good team-work between Mr. Paley and his brother-in-law, Dr, Leon Levy, who operates and owns WCAU. X X X X X X NAVY STRENGTHENS HAWAIIAN RADIO COMMUNICATIONS An allotment of $1,400,000 to the Navy Department, for construction of radio communication facilities at Pearl Harbor. Hawaii, and Summit, Canal Zone, was recently announced by the Public Works Administration. At both places the projects will include erection of radio towers, construction of a general facilities building, quarters, barracks and messhalls. Pearl Harbor is to receive $800,000 of the allotment and Summit, $600,000. Plans for the improvements have been completed and work will be started at an early date. Navy engineers estimate that more than 4,600 man-months employment will be furnished. X X X X X X X 4 - i • ^ V 1/9/34 ROXY'S RESIGNATION COMES AS NO SURPRISE More than a year ago a broadcaster said that Roxy would never last in Radio City in New York. "Even John D. Rockefeller, Jr., hasn’t enough money to keep him going. Also Roxy will spend too much money doing ordinary things in an extravagant way to make a hit either with Mr. Rockefeller or R.K.O. Roxy has surrounded himself with the same people at Radio City he had about him at the old Roxy Theatre and his Radio City venture will simply be the old Roxy Theatre history repeating itself." Nevertheless, despite repeated rumors that Roxy was "out" at Radio City, the first starting before his new theatre there even opened, it wasn’t until yesterday that reports were confirmed that Roxy had actually resigned, effective February 16th. An official of the Raaio-Keith-Orpheum Corporation explained that Roxy's withdrawal was the result of criticism by his superiors. His failure to keep the costs of his stage spectacles within the budget limitations prescribed by the super¬ visory committee was said to be the most important element in the friction between Mr. Rothafel and the Radio City management. It was felt also that the Roxy stage extravaganzas were too long and that they lacked humor. Roxy’s dislike of supervision was considered to be another factor in his withdrawal. Roxy vigorously denied that he had been extravagant and declared that ne had never exceeded his budget allowance. Roxy opened the Radio City Music Hall in December, 1932, as a house of all-stage entertainment. Immediately thereafter he became ill and spent several months in convalescence. During his absence the policy of the theatre, admittedly a failure, was changed to a balanced program of stage and motion picture enter¬ tainment. Mr. Rothafel returned as active manager of the Music Hall under this policy late last April. The climax of many months of litigation between Radio City and the Seventh Avenue Roxy was reached last month when the Roxy name was withdrawn from the smaller of the two Radio City theatres and it was renamed the Center Theatre. There was a report that Roxy had the backing of a group of financiers who hoped to gain control of the old Roxy and operate it in opposi¬ tion to the R.K.O. It was said that even Roxy’s broadcasts from Radio City had lost their old-time punch and proved disappointing to the R.K.O. people. One story afloat was that Roxy, in a news¬ paper interview, had been quoted as saying that the entire Radio City project had been conceived by him "over a bowl of Frank¬ furters and sauerkraut" while having luncheon with M. H. Ayles- worth one day. If that is true", someone remarked, "it was a mighty expensive dish of sauerkraut for whoever had to actually pay for the plan hatched up that day." X X X X X X 1/9/34 RADIO LIQUOR ADVERTISING- POLICY ANNOUNCEMENT PREMATURE A news-dispatch widely printed to the effect that the Federal Radio Commission's Legal Division had recommended the revocation of licenses of stations broadcasting advertising for hard liquors was denied at the Commission. "It is a fact that the Legal Division, which has been studying the situation for sometime has reported to the Commis¬ sion. However, there is no truth in the assertion that it has made definite recommendations'1, said Commissioner Harold A. Lafount. "An interview to that effect was given out by an employee of the Commission who hadn't even seen the Legal Division's report." In the course of the interview the employee had been quoted as saying: "Commission authorities, drafting an opinion on the lawfulness of such advertising which reaches into dry territory, said in an interview they were confronted with 5a difficult question of law.' "In general their opinion is, however, that stations are licensed under the specific admonition to operate 'in the public interest', and that since hard liquor advertising from wet States is being received in dry States where such advertis¬ ing is forbidden by law might be considered 'objectionable5, such advertising should be forbidden." Commissioner Lafount discounted this saying: "The report of the Legal Division on the liquor question is 22 typewritten pages legal size, single-spaced and I doubt if the Commissioners have all read it yet, much less formed an opinion on it." Another official of the Radio Commission said he believed it might be several weeks before the Commission definitely decided the question of policy in the broadcasting of hard liquor advertising." X X X X X X 6 1/9/34 • BUSINESS LETTER NOTES : Directors of the Radio Manufacturers' Association will meet in New York City, Thursday, January 11th. "With radio nevjs service regulated by adoption of the 10-point code, peace and sound constructive building should be the program for 1934 in that department of public interest", says the Editor and Publisher,, Petitions of bankruptcy, filed in the United States District Court at Chicago, against the Grigsby-Grunow Company have been dismissed by the presiding Judge. The adjudication of the Court was that insolvency was not shown by the petitioners and the Court accordingly dismissed the suit. Majestic will continue to operate under equity receiver¬ ship through Le Roi J. Williams and Thomas L. Marshall. The verdict rendered in the Municipal Court in Chicago in favor of Jos. H. Tigerman against Gr igsby-Grunow Company for $26,250 was set aside and a new trial ordered by Judge Justin F. McCarthy , Tigerman' s claim is for royalties alleged to be owing under a contract relating to an alleged invention for battery eliminators. No patent was ever granted to him, however, and the company claims that the contract was terminated in accordance with its terms,. Judge McCarthy stated he was firmly convinced that the verdict should have been for the defendant, and not for the plaintiff. U. S. Internal Revenue Bureau collections of the 5 per cent tax on radio and phonograph apparatus during the month of November, 1933, were $246,526.75 compared with $298,577.86 in November, 1932. The excise tax collections on mechanical refrigerators during November, 1933, totaled $172,541.85 as against $113,963.78 in November 1932. 7 1/9/34 A tube development of the year is the new quick-acting Arcturus 25Z5 rectifier which operates in I 7 seconds. Many of this year's sets, particularly the a.c.-d.c. models, use the 25Z5 as well as the 43, both indirectly heated tubes which have required 60 seconds or longer to operate. The new Arcturus 25Z5, as well as the Arcturus 43, which also is a quick-heater, enables these sets to operate in 17 seconds or 1/3 the time formerly required. Fog was believed responsible for the crash of the Imperial Airways London-bound plane Apollo, which fell with 10 dead, after colliding with a 742 foot wireless tower near Ruysselde, 14 miles from Bruges in Belgium. A record for low-powered, long-distance voice trans¬ mission by radio was made Thursday night, January 4, during a radio conversation from Station KJTY, of the Byrd Expedition to New York, according to Edwin K. Cohan, of Columbia. Signals were broadcast from KJTY aboard the S.S. "Jacob Ruppert" below the Antarctic Circle with a power of only 120 watts where the station normally uses 1,000 watts; and the signals were transmitted a distance of 8,500 miles via both Honolulu and Buenos Aires and received clearly in New York. Harry C. Butcher, manager of WJSV, Columbia's Washington outlet, acquired two titles last week. Governor Ruby Laffoon, of Kentucky, made him a Kentucky Colonel, and Elder Solomon Lightfoot Michaux, the colored evangelist made him an honorary deacon in the Church of God. Elder Michaux was all for making Harry a regular deacon until he found he smoked. This was not quite in keeping with the rules of the Elder's church. He solved the problem by modifying the title to "honorary". Although official orders apparently have not been issued to ban radio advertising in Germany, the newspaper Voelkischer Beobachter in Berlin said the advertising council of the German Economic Federation proposes to eliminate in the future purely private advertising. The scope of the Los Angeles Times radio activities was enlarged recently whe n arrangements were completed with Station KMTR for the broadcasting of outstanding sporting events and other outdoor features. The Times now broadcasts locally over two stations, the new arrangement coming in addition to two news broadcasts over KHJ . X X X X X X - 8 - .1 A . , : j v va v , v \ a -/. ■ in: : A -v ' . : . . .. . ' ' ’ . ; .. i . . <■ tiua ■ .w A . A- ; ■ - 'A' 1 '■ Q .. ' - : ■ V ■ V ' ■ ■ ■' .7 A...: ..■> t ; •■'Vi ’* i i iV.V .. , ... 1 Vi :S ,i ... : . •J . >.7 . . I : . ' : 1/9/34 PRICE-FIXING- AND 30-H0UR WEEK ASKED IN ELECTRIC CODE The proposal to amend the Electrical Code, under which the radio manufacturers are governed, as well as the electrical industriy, to provide price-fixing was challenged by G-eneral Johnson who declared that, in the last analysis, the proposed section meant "arbitrary price-fixing on the products of an individual manufacturer by a. jury of his competitors" and that there was nothing to prevent the supervisory agency from "consider¬ ing the whole universe" in determining what was a fair price. Representatives of the electrical and radio unions joined in vigorous demands for a 30-hour week and a minimum wage of 66-2/30 per hour, but the National Labor Advisory Board proposed revision of the electrical code to provide a 35-hour week and increase of the minimum wage to 450 per hour. Another hearing on the Electrical Code will be held Monday, January 29th. In the meantime there will be a hearing Wednesday, January 10th on a supplemental code proposed by the Electrical Wholesale Industry. XXXXXXXX BROADCAST I NO RISES AGAIN IN NOVEMBER Broadcast advertising over the networks of the two big companies in November reached its highest levels of the year, both in actual time charges and in percentage comparisons. Sales of time by the two companies totaled $3, 404, 854 for the month, not including any talent charges. This is $345,000 ahead, of November, 1932, and only $100,000 below November, 1931, at the beginning of a season when radio was to reach its all- time peak. Comparing the broadcasting charges this year with the four-year averages for 1929-32, we find that November stood at 123.2 per cent of the average November. The October percentage was 118.9. From April to August the percentage was below 100, dropping to 84.8 in July. National Broadcasting Company, selling $2,154,108 of time in November, was 10.2 per cent ahead of November, 1932. Columbia Broadcasting System, selling $1,250,746 of time, was 13.1 per cent ahead of November, 1932. The NBC percentage was its high¬ est of the year, but Columbid did fractionally better in October. X X X X X X 9 inti < Lb-©*! aiict V‘“\- t 1 1 .7 ?rj . " ■ 4- r- r • .* •; t «* ' 1/9/34 N. Y. TAXI -RADIOS UP TO NEW POLICE COMMISSIONER Following a hearing in New York, the question as to whether or not taxis there will be allowed to have radios, has been put up to G-eneral O’Ryan, the Police Commissioner., Former Commissioner Bolan ordered radios out of all cabs last Fall, but rescinded his order before it went into effect. At the invitation of the Commissioner about one hundred representa¬ tives of taxicab companies and civic associations attended the hearing. Sixteen of them spoke. Eleven spoke against the use of radios in cabs and five favored their retention. Among those in opposition was Acting Lieutenant Andrews of the Vehicular Homicide Squad who declared that the radio sets distracted the attention of drivers and were a potential cause of accident . Among those favoring the use of radio were Bond Geddes. of the Radio Manufacturers' Association, David Sher, General Motors Truck Company, and several radio equipment company representatives. XXXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted ( Jan. 5^ 1934) WLAP . American Broadcasting Corp. of Ky. , Louisville, Ky. , C.Po to move transmitter to Lexington, Ky., and change fre¬ quency from 1200 to 1420 kc. , also granted authority to discontinue operation until April 15; WQV, International Broadcasting Corp. , New York City, authority to install automatic frequency control; also granted renewal of license, 1130 kc . , 1 KW daytime; WPTF , WPTF Radio Co. , Raleigh, N. C. , special experimental authority to operate simultaneously with Station KPO until 8 P.M. PST, until Jan.. 31, 1934 (normally licensed ltd. time); WARD. United States Broadcasting Corp., N. Y. City, extension of authority to operate with reduced power from Jan, 1 to Jan. 6; WHET , Troy Broadcasting Co., Troy, Ala., authority to operate Jan. 5 from 7 to 9 P.M. CST in order to broadcast NRA speech; KGHI . Loyd Judd Co,, Little Rock, Ark,, C.P. to move transmitter locally; WHAD, Marquette University, Milwaukee, Wis. , consent to voluntary assignment of license to WHAD } Inc. (Commissioner Lafount voted for hearing). Also, WBRC , Birmingham Broadcasting Co., Inc., Birming¬ ham, Ala. , extension of special temporary authority expiring Jan. 6 to operate station until April 1, pending action on involuntary assignment of license; WTJS , The Sun Publishing Co., Inc., Jackson, Tenn. , permission to operate station writhout frequency monitor until Feb. 1, so that monitor may be returned to mfg. for recalibration; KFDY, So. Dakota State College, Brookings, S. Dak., special temporary authority to operate from 8:30 to 9 P.M. CST. 10 1/9/34 on Jan. 8, 1934, to broadcast basketball game, provided KFYR remains silent; WACO , Cent. Texas Broadcasting Co. , Inc., Waco, Texas, special temporary authority to operate from 10:30 to 11:15 P.M. CST , on Jan. 30; J anuary 9 - WHN, Marcus Loew Booking Agency, New York, N. Y. , modification of license to increase hours of operation from sharing with WRNY and WQAO-WPAP to unlimited (To consolidate WRNY and WQAO-WPAP giving station WHN unlimited time) facilities WRNY and WQAO-WPAP ; W HN , W QAO -WP AP , WRNY , Marcus Loew Booking Agency, New York, N. Y. , granted for month of February special experi¬ mental authority to operate stations WHN, WQAO-WPAP and WRNY, using transmitter of WHN, make changes in equipment, increase power from 250 watts to 1 kw. for period from 1:00 a.m. to local sunset and to operate at will during that period; KG-CR. Greater Kampeska Radio Corp., Watertown, S. D. , authority to temporarily reduce power to such value that maximum percentage of modulation of at least 75 per cent can be satisfactorily obtained pending filing of applica¬ tion for construction permit and installation of equipment correct¬ ing defects in present transmitter. J anuary 5 - Other Than Broadcasting applications - City of Whittier. Whittier, Cal., C.P. for police service, freq. 1712, 50 watts; Los Angeles Co. Flood Control Dist. , West Fork, San Gabriel Canyon, San Gabriel Dam # 2, Cal. , also Tujunga Dam #1, and at Los Angeles, C.P. for emergency service, frequency 2726 kc. , 200 watts, same except 400 watts for Los Angeles; A. Ro Drueger , Cape Pole, Alaska, C.P. pt. to pt. telephone service, 2994 kc., 50 watts; also C.P. public coastal harbor service, 2512 kc. , 50 watts; WNED, Pan American Airways, Inc., Tampa, Fla., license, frequencies 2648, 3082.5, 5375, 16240 kc., unlimited; 6570, 6580, 8015, day only, 10 watts; also licence frequencies 2870. 3082,5, 5692.5, 5375, 5692.5, 8220, 12330, 16440, 5405 (day only), 10 watts; KGEF, City of Chanute, Kans. , police license, 2450 kc. , 25 watts; WPGG, City of Albany, N. Y. , modification of C.P. extendirg commencement date to Dec. 15., 1933, and completion date to Feb. 10, 1934; WJM , Press "Wireless, Inc., Washington, D.C, modification of C.P. extending completion date to July 1, 19345 and delete frequencies 4715, 4725, 4735, 5295, 5315, 5335, 7355 and 5305 kc. Also. W10XD , Radio Industries Corp., Portable New York, consent to voluntary assignment of license to International Busi¬ ness Machines Corp.; W4XD, Durham Life Insurance Co. , Portable and Mobile, consent to voluntary assignment of license to WPTF Radio Co.; WOU, New England Tel. and Tel. Co., Marshfield, Mass., modification of license to add frequency 2506 kc. January 9 - W2XBS , National Broadcasting Co,, Inc., Bellmore, N. Y. , modification of C.P. (Exp. visual broadcasting) for extension of completion date from 1/16/34 to 4/16/34; KITE, Dept, of Water & Power, City of Los Angeles. Camp Victorville, Cal., license to cover C.P. (Spec. Emergency) for 3190 kc., 30 watts, A1 emission; KIIF, Dept, of Water, & Power, City of Los Angeles, Jean, Nevada, license to cover C.P. (Special emergency) 11 1/9/34 ,for 3190 kc., 30 watts, A1 emission; New England Telephone & Teles. Co. , Marshfield, Mass., license ( Spec. exp. ) for 2506 kc. , 400 watts, A2, A3 emission; W8XP , Westinghouse Elec. & Mfg. Co., Portable, spec, authority to operate this exp. station on 1020 kc. when WRAX is silent, in vicinity of Phila. for tests in con¬ nection with selecting site for the new KYW transmitter; San Francisco News, San Francisco, Calif., authority (Jan. 10 to 20th) to operate four general experimental stations, utilizing the very high frequencies for the pickup and distribution of news (On be¬ half of San Francisco News & Scripps-Howard newspapers). The purpose of this operation is to report departure of six United States Naval planes on their projected flight from San Francisco to Honolulu on Jan. 12th. Rat if icat ions Jan. 5 - Mackay Radio & Telg. Co. : WDFH , New York City granted 60 day authority to operate 100 watt tube transmitter aboard Yacht "Naroraa", pending action on application, frequency range 375 to 500 kc (Action taken Dec. 28, 1933); Action taken Jan. 2. 1934: KIWA, Des Moines, la., license, frequencies 5225, 9070, 14740 kc., 2 KW power; WMEN, Chalmette, La., license, frequencies 4675, 5235, 7745, 9290, 10820 kc. , 2 KW; WMEC, St. John, Ind. , license, frequencies 4650, 4655, 5230, 5240, 5980, 7760, 8970, 8990, 10170 kc., 2 KW ; WJEJ, The Hagerstown Broadcast¬ ing Co., Hagerstown, Md. , temporary authority to operate without a frequency monitor for a period of 3 days from Jan. 3 provided no frequency deviations in excess of 50 cycles; Action taken Dec. 29. 1933; KIEQ , Airfan Radio Corp., Ltd. San Diego, authority to operate broadcast pickup station Jan. 2 to 6; 2342 kc. , 15 watts; KFDY, So. Dak. College, Brookings, S. Dak. , special temp, authority to operate from 6:30 to 8 P.M. CST, Dec. 30, 1933, Jan. 6, 13, 20 and 27, 1934, provided KFYR remains silent; KFYR, Meyer Broadcasting Co., Bismarck, N. Dak., special temporary authority granted to operate from 12:30 to 2 P.M. CST, Dec. 30, 1933, Jan. 6, 13, 20 and 27, 1934, provided KFDY remains silent; WAP I . WAPI Broadcasting Corp., Birmingham, Ala., and KVOO, Southwestern Sales Corp. , Tulsa, Okla, special temp authority to operate simulatneuusly with power of 1 KW, on Jan. 1, 1934, from sundown to conclusion of Rosebowl football game and on Jan. 30 from 10:15 to 11:15 P.M. CST; Action taken Jan, 3: WENC t Americus Broadcasting Corp., Americus, Ga. , granted special temporary authority to remain silent for period of 30 days from Jan. 1; Town of Huntington, N. Y. , special temporary authority granted to erect and operate emergency police station for period of 30 days, fre¬ quency 2414, 25 watts. Carl H. Mackenzie. Broadcasters of Pa., Erie, Pa., grar>ted spec. temp. auth. under provisions Rule 22, to operate general exp. sta. Jan. 5, 1934, on 31100, 34600, 37600, 40600 kc. power, 5 watts, A3 emission; broadcast special program at Erie, Pa. subject to filing formal, application for C.P. and license; On January 5, 193^, the Commission reconsidered and rescinded its action of Jan. 4, above and denied request to extend authority to operate said station on Jan. 5 and 6, 1934. XXXXXXXX Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTS L— Not for Publication INDEX TO ISSUE' OF JANUARY 12, 1934, May Change Radio Law To Hamper Mexican Border Stations.. . .2 Research Head Strikes Back In Accepting Radio Time. . 3 Communications Bill May Take Month To Write, Says Dill. . .4 Sykes Predicts One Year License Extension. . . Columbia NBC Purchase Report Discounted. . World's Highest Broadcasting Tower Erected In Hungary* Radio Commission 1935 Budget Increases $26,000........ University of Kentucky Listening Centers. . . We Are Certain To G-o Forward, Sarnoff Declares.. . WLW 500,000 Watt Tests Indicate Wide Coverage. . Maude Adams Gives New Name To Studio Control Rooms..., Tarkington Believes Radio May Banish Books. . . . . . Business Letter Notes. . 10 Gatt i-Casazza Finds Radio Helpful . . . . . 11 NBC New And Renewal Accounts . 11 No. 688 1DLO CQ CO CO a- CO CDOi MAY CHANGE RADIO LAW TO HAMPER MEXICAN BORDER STATIONS That the Government has not given up its idea of putting a further crimp into the radio stations which were closed down in this country on account of questionable medical broadcasts but which now continue to reach the United States across the Mexican border is very evident. This was revealed when Chairman E. 0. Sykes of the Federal Radio Commission, appearing before the sub-committee of the House Committee on Appropriations told Representative John J, Boylan, of New York, that he was very seriously thinking of asking Congress to make some changes in the radio law to meet this situa¬ tion. "We had a North and Central American Conference in Mexico this Summer that failed to come to any agreement as to the fre¬ quencies to be used by the different countries", Judge Sykes said. "One of the chief differences between our delegates and the Mexican delegates was with reference to the operation of those high-powered border stations, along the border in Mexico. They have six high- powered stations but the stock, or a majority of it, is really owned and controlled by citizens of the United States. Two of those six men used to run stations in the United States, and after hearings, were denied licenses by the Federal Radio Commission. We told the Mexican Government that broadcasting stations operating in the broadcasting band were for the service of the country, or for national service. We told them that these stations, in our opinion, were not proper stations to be taken care of on this account. The result was that we did not get very far down there. "Those stations simply cater to American audiences, do they not?" Mr. Boylan asked. "I should say so; yes, sir. Their programs are purely for American audiences, and not for Mexican audiences. The Mexicans have a very good set of regulations, and they told us that they would strictly enforce them", Judge Sykes replied. "One of those regulations, for instance, is that a program must be first broadcast in Spanish, and that then it can be translated into English if they so desire. As a matter of fact, I understand that since we left there, one of those people, Dr. Brinkley, has been arrested twice for violating these regulations, and that he is trying to enjoin the Mexican Government. A lot of those people broadcast from the United States programs carried in over wires of the American Telephone and Telegraph Company. "My idea is to talk with the two Committees of the House and Senate, and go over the situation. In other words, if they con¬ tinue those stations, we would have to prevent those broadcasting 2 1/12/34 stations from having studios in the United States, and from being permitted, through remote control, to carry those programs from the United States into Mexico. I think that is a most serious situation, "If the Mexican Government will strictly enforce their regulations as they should, it would do away with those border sta tions, because if they had to broadcast their programs in Spanish before doing so in English, they would stop." "I understood you to say that some broadcasters in Mexico were denied licenses in the United States", Mr. Boylan said. "Yes sir; both Brinkley and Baker were denied licenses. They then went to Mexico and put up those high-power ed stations under a concession from the Mexican Government", Judge Sykes replied. "They are just across the border, where they can reach American audiences . I think that eventually we will have some agreement with Mexico, but it was impossible last summer to reach an agreement. We could not do anything -with them." XXXXXXXX RESEARCH HEAD STRIKES BACK IN ACCEPTING RADIO TIME The address on "The Consumer in the National Recovery Program", by Frederick J. Schlink, President of Consumers' Research, Inc. , which was barred from the Columbia system last Saturday when Mr. Schlink spoke at Philadelphia before the Academy of Political and Social Science, will be broadcast at 3:30^Sn January 13 (E.S.T.) "without censorship and without comment." Mr. Schlink said that while his talk had been placed on the WABC network, he was confident that the problem of radio censorship was not disposed of, but that "radio is not inclined at present to fight any longer." He contended that the network had "solved an immediate problem", adding that "radio in general has exercised far more vigorous censorship than magazines would think of trying to do. " Mr. Paley, in offering Columbia's facilities to Mr. Schlink, said that the inference that Columbia is obligated not to broadcast any criticism of the Administration is wholly without foundation and that the Administration had never attempted to assume such a prerogative. Mr. Schlink explained that his talk, which had been barred, contained references to what Mr. Schlink termed "misleading advertis¬ ing over the radio." It referred to the "fact of what was equival¬ ent to censorship" , he added. X X X X X X X 3 1/12/34 COMMUNICATIONS BILL MAY TAKE MONTH TO WRITE, SAYS DILL Although President Roosevelt has indicated that he wants additional radio legislation probably embodying some of the recom¬ mendations of his special committee, there seems to be no definite idea when this may be enacted. Senator Dill, Chairman of the Interstate Commerce Committee, who is now at work drafting a new Communications bill, when asked whether he thought there was a chance of its passing this session or how much pressure there was behind it, answered, "I don't know.” It has been currently reported that only recovery and other emergency bills had a chance of passage during the current session. When asked if he considered a Communications bill emerging legislation, Senator Dill replied; "I do net.1' Senator Dill said that the writing of such a bill was a big job and that part of the work alone might take a month, "Heretofore we have just lifted portions out of other legislation such as the Interstate Commerce Act, buc this time an entirely new bill will be written and it is a matter which cannot be h rried", the Senator continued, "We did a lot of work on this in drafting the Communications bill four years ago. We didn’t have much trouble with the radio part of it but ran into many difficulties in connection with the telephone and telegraph portions of it." Asked whether the bill would simply provide for a Communications Commission and if the provision permitting mergers of Communications companies into unified monopolies, as proposed by the President’s Committee on Communications would be added later, Senator Dill said: "Nothing is said as to whether or not mergers will be considered at this time. We have no agreement on that. The consideration of a Communications Commission opens the door to a discussion of the merger question. This might await develop¬ ments of the hearings on the new bill which we hope to begin as soon as possible after the bill has been introduced, It was generally agreed at a conference between Secretary Roper, Chairman of the President’s Communications Commission and Senator Dill and Representative Sam Rayburn, Chairman of the House Interstate Commerce Committee, that a bill would be drafted creat¬ ing a Communications Commission to which would be transferred from the Radio Commission full jurisdiction over radio broadcasting and from the Interstate Commerce Commission jurisdiction over telephone and telegraph companies. The number of members of the Commission has not been determined. But the Commission will have three divisions and the bill will be written in three general sections - one each for 4 radio, telephony and telegraphy, the latter to include wireless transmission of symbols. The new Commission would supersede the Radio Commission. This new agency would have authority to license communications companies, to require the filing of reports and the extension or curtailment of facilities and have supervision over rates, profits and financing of such companies. Senator Dill said he also favored the law requiring the communications companies to set up sinking funds for the retire¬ ment of their bonded indebtedness, as proposed earlier in the day by President Roosevelt for the railroads. Senator Dill said that if no action is taken on a Communications Commission at this session, he will introduce a simple bill and push it for immediate action, which would put radio activities back into the Commerce Department, with a Director of Radio, and an Appeal Board to consist of three members. X X X X X X X SYKES PREDICTS ONE YEAR LICENSE EXTENSION While testifying before the House Committee in connec¬ tion with the 1935 appropriation, E„ 0. Sykes, Chairman of the Federal Radio Commission said the Commission is about ready to extend the station license period. "Just as soon as we think the time is propitious, we will probably extend for one year the licenses of broadcasting stations. We have been trying to work up to that point for some time", Judge Sykes told the Committee. X X X X X X COLUMBIA NBC PURCHASE REPORT DISCOUNTED No confirmation could be secured in Washington of a report prevalent that Columbia proposed buying the NBC. X X X X X X X 5 . .;V; ' , • y • , v? ; , . 7 . c \ i.i . ; . ■ ■> ■' • ; ~ys£.-&. ■■ ■ ■ .i t ■' ;./ ,r‘, ' \ \ • L : - ■ . • j'i'iiO 'J - - : ’ ■ ' h\'C.i : 1 $*;•/£ L, v, : .... •] ; ‘ i , i , "i ; j . J1.V ; ! ; ' : ■ > 1 ; i 1/12/34 WORLD ’ S HIGHEST BROADCASTING TOWER ERECTED IN HUNGARY What is claimed to be the highest radio broadcasting tower in the world has just been put into service in Budapest. Hungary, according to a report from Vice Consul E. V, Poluntniku The structure, situated on an island to the south of the city, consists of a trellis work steel tower running 932 feet in the air. At the uppermost point of the tower is a telescopic shaft which can be extended for an additional 30 meters, making the total height of the mast 314 meters, or 1,022 feet. This is a greater height than the Eiffel Tower at Paris and 400 feet greater than any other radio aerial in existence. The new WLW vertical radiator antenna for the 500,000 watt transmitter at Cincinnati, is 831 feet high. It is the hope of the Government, the report states, that the new broadcasting station will permit the spreading of Hungarian culture throughout the world. According to the Prime Minister, one of the chief motives in erecting such a powerful station was to make it possible for Hungarian nationals residing in other countries to keep in easy contact with the fatherland,, X X X X X X X RADIO COMMISSION 1935 BUDGET INCREASES $26,000 The 1935 budget appropriation asked by the Federal Radio Commission is $651,885 for salaries, and $15,000 for print¬ ing, a total of $666,885. The item for salaries and expenses is an increase of $31,885 over 1934 but the printing is $5,000, making the total increase for this year $26,885. X X X X X X UNIVERSITY OF KENTUCKY LISTENING CENTERS Thirteen listening centers are making available radio programs of the University of Kentucky to hundreds of persons in the creek valleys and coves of eastern Kentucky. These under¬ privileged people, many of whom previously had never heard a radio program, are now brought into closer touch with the outside world. The university provided the radio sets which were placed in commun¬ ity centers, schools, etc. A competent director operates each radio set on a definite schedule. Monthly reports sent in from each center give, not only thfc total number of listeners to each day’s university program, but constructive criticism of it as well. Four other centers for which aerials and grounds already have been installed will soon be opened. X X X X X • 6 ~ 1/12/34 WE ARE CERTAIN TO GO FORWARD, SARNOFF DECLARES Optimism was the keynote of an address delivered at the Ohio Society in New York by David Sarnoff, President of the Radio Corporation of America. Mr. Sarnoff said, in part: "In few countries of the world today is it easiei to find the bases of prosperity, or a more abundant life, than in our own. This is an age whose progress has been marked by the use of twenty million telephones, twenty-five million automobiles and seventeen million radio sets. New York and Ohio are not only at each other's doorsteps, but California is merely over the mountains » "Needless tears are being shed in some quarters over the real or alleged failure of our industrial and commercial era. Granted that our social program has lagged behind our scientific, industrial and commercial advancement, the fact remains that progress in the latter fields has brought us to a stage of devel¬ opment that is still the coveted objective of the so-called 5-year and 10-year plans of other nations. While the profit motive has been a vitally stimulating force, it cannot be denied that our achievements have vast social as well as industrial value.. In whatever forward direction progress may now impel us, we possess the machinery and resources out of which a more complete life can be created. Though our system may require greater social discipline, it has nevertheless given us the instrumentalities of a finer civilization. "The rise of radio communications and radio broadcasting during the past decade, has made space the main path of communica¬ tion and the laboratory promises still further radio services. Entertainment and education, the spoken and printed words, and still or motion pictures already can be carriedon the wings of the ether wave. Individual communication and mass communication alike are within the scope of the radio channel, which knows no obstacle of sea or mountain, or other barrier to earthbound communication. "What shall be the new social attitude toward science, invention, and discovery? The answer society makes to this question may determine the course of human progress for many years to come. "Already we have embarked upon a program of adjustment of our financial, economic and social structure to meet our present social needs. Such a program cannot be achieved by pulling rabbits out of a hat. It cannot be permanently affected by the pitched battles of dictrinaires . No miracles are possible in the orderly progress of social adjustment. Signs are appearing, however, of a new social attitude by industry and a new appreciation of industrial problems by social and political groups. 7 1/12/34 "Out of the transitions and readjustments of this depression, a new spirit of cooperation has developed which seeks to promote the general welfare., Our form of government, our sense of common justice, our natural wealthy our inventive genius and resourcefulness , our unrestricted freedom of the press and the air, all combine to justify the confidence that while we may stray temporarily, we cannot be swerved permanently from the road we have set upon, We are certain to go forward," XXXXXXXX WLW 500,000 WATT TESTS INDICATE WIDE COVERAGE According to reports received thus far, Joseph A. Chambers, Technical Supervisor, states that the nev; 500,000 watt WLW RCA-Victor transmitter will provide a highly satisfactory day time reception over all of the United States east of the Rockies and satisfactory night reception over all the United States, much of Canada, Mexico and Central America, There was a preliminary tryout New Year’s Eve. Other tests are being made between 1 A.M. and 6 A.M. (E.S.T.). A few of the reports follow; Yukon, Alaska - "Have been enjoying your programs over 500 KW transmitter immensely - very good reception" - Arcade Cafe; Fairbanks, Alaska - "Programs came in with good volume last two nights although we had considerable atmospheric static" - Fair¬ banks Exploration Co. Gang; Kelso, Scotland - "Received transmis¬ sion experimental station this morning" - Duchess Roxburgh, Floors Castle; Wickford, R. I. - "Reception perfect - coming in like local station - good luck" . Q.uebec , - "Reception fine - no fading." - G. Ernest Racine; Grenada, Australia - "New transmitter reception wonderful" - MacIntyres; Puerto Rico - "Your transmitter certainly was great. When W8X0 came on the air it increased the volume about lOOfo" - H. J. Davison; Honolulu - "Program strong and clear" - Paul Spain, Seattle - "Reception in business section Seattle on auto radio fine." - W. Carey Jennings. Vancouver, B, C, - "Program coming in very clear" - Vic Creeden; San Francisco - "Program coming in loud and clear - slight fading - no aerial, three tubes." - Warner Wilson; S,S. Gulf gem - "Received best reception eighty miles south of Hai t i i " - McDaniel; S . S o Prusa - "Perfect reception 1500 miles southeast New York" - Captain Odman; Denver - "Broadcast received very good here on two-tube pocket set" - E, L. Doyle. The opinion was expressed that despite the cost of the WLW equipment, $400,000, that the year 1934 would see other sta tions applying for the 500,000 watt broadcasting privilege and 8 ' . -- i v. ;v... . . : 1/12/34 that the Radio Commission would unquestionably grant the applica¬ tions. The success of the Crosley station, and the fact that it apparently doesn’t interfere with other stations, marks a new era in high power which it is believed broadcasters will quickly develop. XXXXXXXX MAUDE ADAMS GIVES NEW NAME TO STUDIO CONTROL ROOMS With Maude Adams’ radio debut, a general order was issued by the National Broadcasting Company changing the time honored name of the Control Room to the Studio Monitoring Booth. "What is that?" inquired the actress, when she paid her first visit to the studio, indicating the booth in which the studio engineer was monitoring the program. "That's the Control Room", replied her host, John Royal, NBC Vice-President, who was responsible for interesting Miss Adams in radio. "Control Room", echoed the greatest actress of her time, "But why should I be controlled? Why should any artist be con¬ trolled? No one controls an opera singer, or a great conductor." "Right, as always, Miss Adams", responded Royal. What the engineer was doing, Royal pointed out to her, simply was see¬ ing that the equipment operated with the maximum efficiency. "Studio Monitoring Booth is a much more satisfactory term", said George McElrath, Acting Manager of Technical Operation and Engineering. "Actually, there is no control exercised over the quality of the voice." X X X X X X X TARKINGTON BELIEVES RADIO MAY BANISH BOOKS The damage to the eyes of Booth Tarkington, the novelist, and his consequent dependence on the radio for some amusement - he likes the dialect tricks of "Amos 5n’ Andy" - set him thinking some time ago, he said, that it was very probable that in the future there would be very few books and no novels. The writers then will be playwrights, he said, styling their entertainments for production by actors, "It has been said that all progress is due to laziness, that man was too lazy to harness a horse so he invented the auto¬ mobile, and so on", he said. "I am sure that when television, and what may come after even that, are so perfected that they can bring the entertainment of a theatre to an arm chair, very few will use energy to read novels." X X X X X X X - 9 - I 1/12/34 ! BUSINESS LETTER NOTES Two installations of its new type of synchronizing equip ment have been ordered from the Western Electric Company and are ready for shipment to WBBM, Chicago, key station of the Columbia Broadcasting System, and to KFAB, Lincoln, Nebraska, These two stations contemplate synchronizing the latter par b of this month. Arthur Godfrey, WMAL announcer in Washington, who has been in charge of the WMAL Breakfast Club, resigned this week following a reprimand from an NBC official. Mr. Godfrey later accepted a position with Station WJSV, Columbia outlet in Washing¬ ton and will be in charge of WJSV:s Sun Dial, a competing feature of the Breakfast Club, Godfrey is succeeded on WMAL by Jim McGrath, formerly of WOL in Washington, and who, of late, has been handling wrestl¬ ing matches for WMAL. Paul A. Winchell has joined the market analysis staff of the NBC Network Sales Promotion Department. Mr. Winchell was formerly Assistant Promotion Manager in charge of Advertising Research of Liberty magazine for seven years. "Literary Digest poll of radio likes and di si ikes which brought forth 16,400 replies from subscribers who clipped coupons printed in the weekly for that purpose has occasioned some comment as to whether the poll is more an index to the type of the Digest' readers rather than a cross-section of public opinion on radio programs, " Variety sets forth. "Both the expressed prejudices and the avowed favorites of the 16,400 Digest voters are notably contrary to the generally accepted notions of popular fancy. But very much of the sort of thing that school teachers and those dedicated to uplift would be apt to endorse or condemn." Yi-seng S. Kiang, Chinese Vice-Counsul in Los Angeles, has entered complaint with several local radio stations for allow¬ ing artists to use the word "Chink" in reference to Chinese. 10 - ! 1/12/34 Earl C. Anthony's $79,000 claim against NBC will toe tried in the New York Federal court. On a motion by the network the action last week was transferred to the latter tribunal's jurisdiction. The complaint in which the operator of KFI, Los Angeles, charges that the network owes him that amount as a balance for the use of his station's facilities during July, August and September of last year was originally filed in the New York Supreme Court. X X X X X X GATTI-CASAZZA FINDS RADIO HELPFUL Radio has proved to be a help to the Metropolitan Opera House, Ciulio Gatt i-Casazza told Orrin Dunlap, Jr. , Radio Editor of the New York Times . "Personally, I find I can more easily detect mistakes, or voice differences, over the radio. In general our results with the broadcasting of operatic performances have been excellent and very gratifying. Considering the manner in which the National Broadcasting Company carries on its activities from our stage, I believe no person need be apprehensive concerning the quality of the musical sounds they hear. And the indications are that radio is aiding, to a certain degree, the business of the box office." "Is radio likely to be a permanent institution as far as the Metropolitan is concerned?" the general manager was asked. "Yes," he replied. "There is no contrary indication. Technically, results have exceeded expectations. Furthermore, opera broadcasting educates the people along the lines of the music-' drama. It is making many listeners music-minded andopera-conscious , which results in eventually bringing them to actual productions. They hear one or two acts of an opera and come here to hear more." "How have regular opera patrons reacted toward Metropolitar performances on the air?" he was asked. "Public opinion is favorable", he replied. "Only one or two exceptions have been brought to my attention." XXXXXXXX NBC NEW AND RENEWAL ACCOUNTS RENEWAL - Standard Brands, Inc. ( Fleischmann ' s Yeast for Health), New York City; Agency - J. Walter Thompson Co. , New York City; Started - January 4, 1934; Thursdays 8:00-9:00 P.M. EST ; Network - WEAF WEE I WJAR WTAG WCSH WFI WFBR'WRC W GY WBEN WCAE WTAM WWJ WLW WMAQ KSD WOO WHO WOW WDAF WTMJ KSTP WEBC WDAY WSM KFYR KOA KDYL KTAR KGO KFI KGW KOMO KHQ XTHS WMC WSB WAP I WJDX WSMB WKY WBAP KPRC WOAI ; Program - "The Fleischmann ' s Yeast Hour" - Rudy Vallee andhis orchestra and various guest artists. 11 1/12/34 RENEWAL - Standard Brands, Inc. (Chase and Sanborn Coffee), New York City; Agency - J. Walter Thompson Co. , N, Y„ City; Started January 7, 1934; Wednesday, 8:00-8:30 P.M. EST ; Network - WEAF WTIC WJAR WTAG- WCSH ALIT WFBR WRC WGY WBEN WCAE WTAM WWJ WLW WMAQ KSD WOC WHO WOW WDAF WTMJ KSTP WEBC WDAY WRVA KFYR WWNC WIS V/JAX WIOD WFLA WSM WMC WSB WJDX WSMB KVOO WKY KTHS WFAA KPRC WOAI KGO KFI KGW KOMO KHQ KTAR XOA KDYL; Program - "The Chase and Sanborn Coffee Hour" - Rubinoff and his orchestra; Eddie Cantor and other guest stars . RENEWAL - Northam Warren Corp. (Cutex and Odorono) , N. Y.City; Agency - J. Walter Thompson Co., N. Y. City; Started Dec. 22„ 1933; Time - Friday, 9: 00-9; 30 P.M. EST; Network - WJZ WBZ WBZA WBAL KDKA WGAR WCKY WLS KWK WREN KWCR FOIL KSO WMAL WSYR CFCF WSM WSB WAP I WSMB WKY WFAA WOAI KGO KFI KGW KOMO KHQ KOA KDYL KGIR KGHL; Program - "Let's Listen to Harris", Phil Harris and his orchestra Leah Ray, commercial talk by "The Fashion Reporter" . RENEWAL - Standard Brands, Inc. (Royal Gelatin Flavored Gelatin and Chase and Sanborn Tea), same agent as above; Started January 3, 1934: Wednesday, 8:00-8:30 P.M. EST; Network - WEAF WEE.C WTIC WJAR WTAG WCSH WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WCKY WSAI WLS WMAQ KSD WOC WHO WOW WDAF; Program - "Royal Gelatin Review and Chase and Sanborn Tea Program" . NEW - Lady Esther Co. (Cosmetics), Evanston, 111. ; Agency - Stack-Goble Advertising Agency, Chicago, Ill; Started Dec. 6, 1933, Wednesday, 8:30*9:00 P.M. EST; Network - WEAF WEEI WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ KSD WHO-WOC WOW WDAF WKBF ; Program - "Lady Esther Serenade" - Wayne King's Dance orchestra and Bess Johnson as Lady Esther giving beauty talk. RENEWAL - F. W. Fitch Co. (Fitch Shampoo), Des Moines, la., Agency - L. W. Ramsay Co., Davenport, la.; Started December 24, 1933, Sunday, 7:45-8:00 P.M. EST; Network - WEAF WJAR WTAG WCSH WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAE WMAQ KSD WOC WHO WOW WDAF ■WKBF CFCF; Program - "Wendall Hall - The Red Headed Music Maker", NEW - True Story Publishing Co„ (True Story Magazine) , N.Y. City; Agency - Erwin Wasey & Co,, 420 Lexington Ave,, N.Y.C.; Started - Jan. 7 1934; Sundays 7:00-7:45 P.M. EST; Network - WEAF WTAG WJAR WCSH WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI WMAQ WOW; Program - "True Story Court of Human Relations" - dramatized radio trials with listeners submitting decision at end of each case. RENEWAL - Harold F. Ritchie & Co. (Eno Salts), N. Y. City Agency - N. W. Ayer & Son, Inc., New York City; Starts Feb, 6, 1934 Tues & Wed., 8:00-8:30 P.M. EST; Network - WJZ WBZ WBZA WBAL KDKA WGAR WJR WLW WLS KWK WREN WMAL WSYR KWCR KSO KOIL; Program - Eno Crime Clues. XXXXXXXXXX 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication WW BWMSaSIlIM Cl, Inc. I pp- r- n re ii v- LttiAi oepAtmiEin- !' D) [r fa re is iw re ffft j i n) . rj , ., 7 . LL ® Lb li * Is | 17 . J“ JAN 18 1934 !,'y {MifoW/ l?iH?,&4[jn6 n i \il i I up \ INDEX TO ISSUE OF JANUARY 16, 1934. F.DoR, 's Voice Reproduced. Hereafter On Occasion Only .......... 2 Police Calls Rebroadcast Leads Detective To Burglar < . 3 Pirn Discussed To Tax Detector Tube As U.S. Radio Fee . 4 Commission Denies License Renewal To Quincy, Ill., Station.... 5 A. P. Amends Radio Rules Clearing Way For Compromise. . . 6 No Immediate Hope Seen For Repeal Of 5% Radio Tax. . . . Indicates Laboratory Has Solved Television . Extortion By Radio Will Be Just As Bad. . German Radio Industry Prospering. . Radio Manufacturers Sponsor Chicago Show But Not N„ Y Business Letter Notes . 9 Decisions Of The Federal Radio Commission. . . 10 No. 689 !>-£>-£> CO 00 January 16, 1934. F.D.R.'S VOICE REPRODUCED HEREAFTER ON OCCASION ONLY The agreement to cease reproducing President Roosevelt’s voice in the ’’March of Time” program last Friday night came as a i result of discussions over the past two weeks between Columbia, the "March of Time” sponsors and the White House. In explaining this, it was emphasized that at no time was any order issued by the White House that the President's voice could not be reproduced and that the agreement was reached as a result of friendly discussions with Columbia and the "Time” sponsors readily acquiescing upon learning the wishes of the White House. Nor does it mean that the President's voice may not be occasionally reproduced over the air in the future by special permission on great occasions, but it does mean that it will not be done so frequently as in the past. The first embarrassment occasioned to the White House by the reproduction over the air was the innumerable requests for permission to likewise reproduce the President's voice from sound movie and phonograph people. It wasn't felt they were justified in permitting the radio to do this and turn)'8.@wn the others. Another embarrassment was the possibility of the Presi¬ dent being misquoted in the paraphrases of his speeches which had to be cut down to an irreducible minimum to meet time limitations of radio broadcasts. There seemed to be an impression that these extracts were either direct quotations or phonograph records,, At any rate, it seems the President has been called to account for many things credited to him over the radio. This brought many letters of complaint, adding to his already heavy burden. Quite another embarrassment occasioned to the White House has been the receipt of letters from all parts of the country from people who actually believed it was the President himself they heard talking. They seemed to think President Roosevelt was really taking part in these dramas, which brought additional embarrassment to Mr. Roosevelt in view of the fact that he was always the hero of the radio presentations. Therefore feeling that the Presidential voice reproduction were not a good thing, the White House explained its position to Columbia. The request seemed such a reasonable one, that Columbia immediately took it up with the "Time" sponsors, who upon being acquainted with the President's wishes in the matter complied with them without the slightest question. So that programs wrhich were already under way might not be interrupted, such as the review of the year of 1934 at New 1/16/34 Year's and the presentation "The Roosevelts in America" were allowed to be given but the agreement was that last night ? s performance would be the last and that from now on there would be no more reproductions of the President's voice either for radio movies or phonograph without specific authorization from the White House for each occasion,. The "March of Time" sponsors are the Remington Rand, Inc. , typewriter manufacturers and the program is produced by Time Magazine. XXXXXXXX POLICE CALLS RE-BROAPCAST LEADS DETECTIVE TO BUROLAR The experiment of Station WJSV in Washington rebroad¬ casting radio calls of the police in the National Capital last Saturday night, gave thrills to listeners and was the means of Detective Sergeant Elmer Dolstrom catching a burglar. Dalstrom was riding downtown in his own car, equipped with a long wave set, that night. Over it he heard the rebroad¬ cast of a burglar alarm in his immediate vicinity. Hurrying to the address, he was in time to capture a young white man in the house. After securing permission from the Federal Radio Com¬ mission and Superintendent of Police, E. W. Brown, WJSV rebroad¬ cast the police calls as an entertainment feature from 11 o'clock at night until 1 o1 clock Sunday morning and then asked listeners how they liked it. Although there had not yet been a chance to hear from all listeners, Harry C. Butcher, manager of the sta¬ tion, said that the reaction thus far ascertained was in the ratio of 12 in favor of the idea as compared to 15 against it. "The result has been a surprise to me", said Mr. Butcher "The younger people seem to be against it, apparently objecting to having their Saturday night dance music broken into, but the older people appear to favor it. "An amusing incident was a young man w riting in to say that he was seated on a divan with his girl listening to G-uy Lombardo ss orchestra and everything was going along nicely until a police call cam in - 'Man lying in street', whereupon the girl seemed to lose interest in her companion. !Your police broadcasts are ruining romance', the swain wrote.” In introducing the program, Major Brown, Superintendent of Police, said that 75 percent of the radio calls were answered by the Washington police within 2 minutes and 95 percent within 5 minutes. XXXXXXXX 3 1/16/34 PLAN DISCUSSED TO TAX DETECTOR TUBE AS U. S. RADIO FEE Mindful of the revenue collected on radio receivers in foreign countries - for example, in England there are approximately 8,000,000 outfits, the owners of which pay an annual tax of $2.50 - the economists are wondering if radio on this side of the sea has reached an age where it can be called upon to pay its own way, Orrin E. Dunlap, Jr. , writes in the New York Times. "They point to the fact that a property rental is generally paid for billboards erected along the highways, or signs painted on barns", Mr. Dunlap goes on. "Why, then, they ask, should not Uncle Sam collect an annual toll on each wave length? Another argument, frequently expounded, is that circulars going through the mail add to the government's revenue by carrying a postage stamp, but an hour radio program is criss-crossed through space without Uncle Sam deriving any revenue, although he controls the channels. "Those who have studied the problem contend that it requires no higher mathematics to determine a fair tax on wave lengths. The calculators wonder, however, if the station should pay an annual tax for the wave it uses or whether each program should pay a license fee based on the length of time it is on the air. For example, should Amos !n! Andy contribute as much for their fifteen minutes as a symphony orchestra in an hour concert? The calculations become more complex as the networks are involved and the number of stations increased. Therefore the simple plan, that calls for less bookkeeping, is for each station to pay for its right-of-way. That idea is believed to be more practical. The power output might be another factor in the problem; also the number of hours the station utilized the wave. A cleared channel would probably be taxed more than a shared wave. "The latest idea presented in Washington is to tax the detector tube. Every radio receiver needs a detector; it is the heart of the machine. If there is no detector, the set is 'dead*. To put a toll on the detector is believed to be a simpler matter than issuing licenses each year. "One plan that has been suggested is to bring about a change in broadcasting so that every one with a radio receiver will be compelled to buy one new tube - possibly a detector. This one tube would be controlled by the government and would bear a tax of $2, plus the retail price. "The tube could be designed to have a life of 1,000 hours, so that the person using his receiver the most will pay more into the United States coffers than the listener who tunes his set only an hour a day. "From the millions Uncle Sam might collect from the $2 tax, he would return half to the public, while the other half went to the general treasury. The advocates of this plan to give a 4 1/16/34 percentage of the money back would buy time arid sponsor programs, so that there might be two or three hours a night entirely free of commercial sponsorship* 11 But suppose the inventors cannot discover a way to make this novel change in the life of broadcasting. Will broadcast listening continue free? Not necessarily , because, if no way can be found to foice every one to buy a new detector, the proposal is to pass a law whereby every radio set ovmer must buy a $2 stamp and place it on the present detector. Then any one caught eavesdropping without a stamp-taxed tube would be liable to a fine or confiscation of his radio set. In the future, as each owner required a new detector, he would buy the stamp or pay the tax at the store. The retailer or manufacturer would reimburse Uncle Sara, "There is no definite information that Congress will get this detector plan at the current session, but it is one of the things that the government is thinking about in its ladio program. 11 X X X X X X X COMMISSION DENIES LICENSE RENEWAL TO QUINCY, ILL. STATION The Federal Radio Commission denied a renewal of license to Station WTAD, of Quincy, Ill.; also it denied the application of WTAD for a construction permit to move to East St. Louis, WTAD's facilities were given by the Commission to WMBD, Peoria. Heretofore these stations had been sharing time on 1440 kilo¬ cycles but effective 20 days hence, WMBD will be permitted to operate on the frequency full-time. Both are 500 watt stations. Some of the reasons set forth by the Commission in refusing a renewal of WTAD's license are: "That the present arrangement limiting stations WMBD and WTAD to part time, sharing time, is not sound economically and is not conducive of the best type of service, "That WMBD is the better qualified of the two appli¬ cants. "That the service which station WMBD has rendered in the past has been meretorious and superior to that of WTAD, "That the population served by WMBD is several times greater than that served by WTAD at Quincy. "That the granting of the application of WMBD would result in a reduction of the facilities assigned to the State of Illinois and the Fourth Zone which would tend toward the establish' ment of more equal division of facilities between zones," Chairman E. in the decision. 0. Sykes and Commissioner Starbuck dissented X X X X X X - 5 - J :-c , ■ . ■ ■ ; ^ J /, V „• **■"' ./ - , -J < - - ' ; ; 1 j • "" , , - : . 0 1 • I ••• i I O : ;■ J' V.'/'i J ^ ' £ ^ .* ' - ■ ' ■ : --- ■ ! ’ • ...... I ' •. • /l. ;,;-; ;x- ' :? A . • ; „ • ;• ;/ - (1/ • ' .1 !:o • 7 yy • :.j :■ ' ! -V.r.l ! •• r Q 'i- ; : .J ■ •; V\: RADIO TAX Although he has put up a hard, fight on it,. Paul Be Klugh, Chairman of the Legislative Committee cf the Radio Manu¬ facturers' Committee, reported that he believed there wasn't much chance for the repeat of the Federal 5 per cent tax on radio and phonograph apparatus at this session of Congress, Nevertheless numerous jobbers and dealers are appeal¬ ing to their representatives and senators for relief, Mr. Klugh said it appeared improbable that the radio taxes will be increased. XXXXXXXX INDICATES LABORATORY HAS SOLVED TELEVISION V. K. Zworykin, television inventor of the Radio- Victor Company, gave the impression, addressing the Washington Institute of Radio Engineers, that as far as the television laboratory experiments are concerned, they ''have got it". Judg¬ ing from what he said, television is now apparently only a question of financing and manufacturing. Zworykin said that his television device resembles the human eye but has advantages over it in that it can magnify the size of an object and when perfected may reveal objects or scenes in their natural colors. Zworykin also declared that his television device would work satisfactorily on a dark or cloudy day, and that he could operate it in any light in which a motion picture camera could be operated. X X X X X X EXTORTION BY RADIO WILL BE JUST AS BAD A bill was introduced into the House of Representa¬ tives by Representative Celler, of Brooklyn, which would apply the powers of the Federal Government, under the commerce clause of the Constitution to extortion by means of telephone, tele¬ graph, radio, oral message or otherwise. Representative Celler Js bill nas been referred to the Committee on Judiciary. XXXXXXXX 7 * s ■ ■ ■ — . ' c. . . ‘ > If- o a , v . 'Vl . o.U. v rx;.; S3,S.;,iC,Q ? •ViC kfi'Cv ;Vlw;' O-y: >o ; . ; r * X 1/16/34 GERMAN RADIO INDUSTRY PROSPERING A record turnover is anticipated by the German radio industry during the current business year, according to a report from Vice Consul C. T. Zawadzik, Berlin,, During the August-October , 1933, period, the turnover reached 500,000 radio receiving sets compared with 300,000 sets during the corresponding period of the preceding business year, Production reached nearly 90 per cent of total capacity against 76 and 77 per cent, respectively, in the two business years immediately preceding. Fears of the radio industry that the production of the popular standard type of receiving set would result in a decline in the normal types of sets appear to have been groundless. Even if one deducts this standard model from the total turnover, the results for the other models were higher this year than last. The improved domestic business has more than balanced the losses in export trade, the report points out. Exports of wireless telegraphic and telephonic equipment from Germany during the ten months ended October, 1953, amounted to 22,040,000 reichsmarks compared with 31,620,000 reichsmarks in the corres¬ ponding period of 1932. The current value of a Reichsmark equals 37 cents in U. Sc currency. X X X X X X X RADIO MANUFACTURERS SPONSOR CHICAGO SHOW BUT NOT N. Y. A change in its policy relating to public radio shows was made by the Board of Directors of the Radio Manufacturers' Association at their recent meeting in New York. While the RMA will continue its plan to promote a public radio and electrical show in Chicago next Fall, the Associated decided to take no action relating to a similar show in New York until 1935 at least. The Board decided not to sponsor the show being planned in New York next September under private management, but to leave members free as to their action on exhibiting in the New York show. The R.M.Ao is not opposing the show planned in Madison Square Garden in September, but is withholding any Association connection therewith. In Chicago next Fall it is proposed that a public radio and electrical show be held under the sponsorship and auspices of the Association. X X X X X X X 8 V 1/16/34 BUSINESS LETTER NOTES A plan has been adopted by the Radio Manufacturers’ Association to have all members "Buy RMA" in their purchases. "NBC expects to gross $300,000 out of its 40<£ tourist charge the first year the studios have been opened" , says Variety. "During December, 1933, alone, there were 27,885 paid admissions, with an average for the ten November days the studios were open to the public being around 4C0. Top day in the two months past was December 27, when not quite 2,000 paid. Since that peak, the average has been 1,000 daily, necessitating an increase in guides from 12, at the beginning, to 40 currently." The top of the 400-wooden tower of the broadcasting station at Leipzig, Germany, recently caught fire and became a blazing torch, lighting the countryside for several miles around. That is one thing broadcasters using steel towers don’t have to worry themselves about. Chicago stations are reported to be concluding their liquor announcements with: "This announcement and show intended only for those States in which liquor is legal." A great switch-over in radio wave lengths of 230 trans¬ mitting stations of Europe occurred at midnight of January 14 in accordance with a plan evolved at a recent conference in Lucerne to prevent overlapping, according to an A.P. dispatch from London. M. Raymond Braillard, President of the Technical Com¬ mission of the International Union of Radio Diffusion, at Brussels with 40 experts, is testing the new wave lengths allotted the various countries, including England. It is hoped that by the new arrangement reception for millions will be clearer. XXXXXXXX 9 ■\..V '<7 ; 1/16/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applio at ions G-rant e d (January 16,1934’y— WGBJ, Scranton Broadcasters , Inc., Scranton, Pa., spec, experimental authority to March 1, 1934, to use 350 watts power exp. in addition to regular assignment of 250 watts, WINS , American Radio News Corp. , Carlstadt, N„ J„ , authority to operate until 5:30 P.M. MST , during January; V\f TAG, Worcester Telegram Pub. Co., Inc., Worcester, Mass., C.P. to make changes in equip¬ ment of auxiliary transmitter and to increase the power of aux, transmitter from 100 to 250 watts (station licensed to operate 250 w. night, 500 w. LS) : WHET . Troy Broadcasting Co., Dothan, Ala., license covering move of station and changing frequency 1370 kc. , 100 watts, daytime, specified hours on Sunday; WKBV , Knox Battery and Electric Co. , Richmond, Ind. , license covering changes in equipment andmoving station from Connersville to Richmond, Ind. , 1500 kc., 100 watts, specified hours; WCBS , WCBS, Inc., Spring- field, Ill., license covering local move of transmitter 1210 kc., 100 watts, shares with WTAX; KIDO . Boise Broadcast Station, Boise, Idaho, license covering changes in equipment, 1350 kc. . 1 KW unlimited time. WCNW , Arthur Faske, Brooklyn, N. Y. , modification of C.P. extending completion date to Feb. 1., 1934; KWFV , Hil® Broad casting Co., Ltd., Hilo, Hawaii, modification of C.P. to move station from Haili Tract, Hilo to Waiakeg,, T.H. , make changes in equipment and extend commencement date to March 1 and completion date to July 1, 1934; WWVA , W. Va, Broadcasting Corp. , Wheeling. W. Va. , modification of license to change hours of operation from sharing with WOWO, to simultaneous daytime operation with WOWO, sharing with WOWO at night; WOWO, the Main Auto Supply Co., Ft, Wayne, Ind., modification of license to change hours of operation from sharing with WWVA to simultaneous daytime operation with WWVA, sharing with WWVA at night; KRKD. The Fireside Broadcasting Co., Los Angeles, Cal., modification of license to use auxiliary transmitter of KFSG as the auxiliary transmitter of KRKD; WESG, Cornell University, Elmira, N. Y. , authority to operate from 2 A.M, to 4:30 A.M. Jan. 21 in order to broadcast DX program. Also, WCOC, Mississippi Broadcasting Co., Inc,, Meridian Miss., special authority to operate daily specified hours until Feb. 15, 1934; WCAX, Burlington Daily News, Inc., Burlington, Vt . , special temporary authority to operate from 6 P.M. to 12 midnight, EST, on Jan. 16, 1934; WHP, WHP, Inc., Harrisburg, Pa., special temp, authority to operate 2:00 to 2:30 P.M. EST Jan. 23, 24, 25, and 26, 1934, provided WBAK remains silent; WBAK , Penna. State Police, Harrisburg, Pa., special temporary authority to operate from 4:30 to 5 P.M. EST, Jan. 23, 24, 25 and 26, 1934, provided station WHP remains silent; WBBZ , James F. Kyler, Ponca City, Okla. special authority to operate station WBBZ to April 1, 1934; KGHF, Curtis P. Ritchie & George J, Ikelman, Pueblo, Colo, consent to voluntary license assignment to Curtis P. Ritchie; WJJD. WJJD, Inc. 10 1/16/34 Mooseheart, Ill,, modification of license to move studio locally in Chicago (Mooseheart to Chicago). Also. RCA Communications, Inc.: WAD , Rocky Point, N. Y. , modification of license to add Washington, D. C. , as a secondary point of communication, and alternate with any other points of communication spec.f ically named in point-to-point telg. station licenses for fixed public service granted to licensee herein authorized; WDA , Rocky Point, N, Y. , modificaticn of license to make changes in equipment and add Boston as^ secondary point of communication; and, etc. (same as for WAD7 y^WEO , New Brunswick, N. J. , WIR. Rocky Point, N. Y,, WKL . __ ~ modification of licenses to add New Orleans, Washington, D. 0. : Boston, and Chicago respectively as secondary points of communication; (WQEA, modification of license to communicate primarily with Panama, Managua; secondarily with San Francisco, Chicago, and alternately, etc. (same as for WDA); at Washington, D. C. , C.P. frequencies 5110, 7407.5 kc.; 200 watts; at Boston, Mass, , C.P. , frequencies 3275, 5180 kc. , 200 watts; at New Orleans, Lac, C.P. frequencies 5180, 1063C kc, , 1 KW power (2 transmitters^ at Chicago, Ill., C.P. , frequencies 5100, 9470 kc,, two transmitters 1 KW each; on Down Town Office Bldg., New York City, at New Bruns¬ wick, N. J. , Office Building in center of Trenton, N. J. , Office Bldg., in center of Philadelphia, Pa. , general experimental C.P.s for high speed facsimile; frequency 50,000 cycles, for experimental communication in order to make initial tests of proposed circuit between New York and Philadelphia; WKC. Rocky Point, N, Y. , C.P. to add RCA Composite Vt. Transmitter 100 KW, 13465 kct Als, W9XA0, Western Television Research Corp. , Chicago, Ill., C.P. to move station locally in Chicago; City of Reno, Nev, C.P. for police service, frequency 2422 kc. , 50 watts: KI IM, Northern Commercial Co., Hot Springs, Alaska, license, 2994, 3190 kc. , 50 watts, pt . of communication WXP, Fairbanks; WXE, Anchorage; KG-ZY , City of San Bernardino, Cal., modification of C.P. to extend completion date to Jan. 31, 1934; Radio Pictures, Inc., Long Island City, N. Y. , special experimental license, frequencies 2000-2100, 42000-56000 and 60000-86000 kc0, 1 KW ; WPGG, State of New York, Div. of State Police, Sc. Schenectady, N.Y. modification of license extending special authority to operate with increased power of 5 KW day, 1 KW night, to May 1, 1934; Aeronautical Radio. Inc. : WQDQ. New Orleans, La., license, fre¬ quencies 2612, 2636, 3467.5, 4740 kc, , unlimited; 6540, 6550, 6560, 8015 kc. , day only, power 150 watts; WQDQ, license, freauencies 3127.5, 3232.5, 3242.5, 3257.5, 3447.5, 3447.5, 3457.5. 3467.5, 3485, 4917.5, 5602.5, 5612.5, 5632,5 kc. , unlimited, 3222.5 kc . day only, 400 watts. Also, D. Reginald Tibbetts; New, Portable and Mobile, 5 new C.P.'s, General experimental purposes to be used in connec¬ tion with building of San Francisco-Oakland Bay Bridge only; 41000, 51400, 61000 and 63000 kc., 25 watts; W6XV, C.P. to con¬ struct 2 additional transmitters; W6XAL, and W6XH, C.P.s for additional transmitter at this station; Borough of Lansdown, Pa. Police Dept., General experimental C.P. 301000, 33100, 37100, kc., 15 watts; Boeing School of Aeronautics, Portable, special experi- 11 1/16/34 mental C.P., frequencies 62000 and. 66000 kc, , 50 watts; W6X0, Ronald G„ Martin, Portable & Mobile, San Francisco, license s frequencies 34600, 410C0, 51400, 60000-400000 kc,, 25 watts: W5XU, City of Ph.ils.delph.ai, Dept, of Public Safety, Philadelphia, Mobile, renewal of license in accordance with existing license; Also', National Broadcasting Co. Inc. : portable and Mobile, general experimental C.P., frequencies 17310, 23100, 25700, 26C00. 27100, 31100, 34600, 37600, 40600, 86000 to 400000 kc. , 1 watt; New, Portable and Mobile, general experimental license, frequencies 17310, 23100, 25700 „ 26000, 27100, 31100, 34600, 37600, 40600, 86000 to 400000 kc. ^ 1 watt; KNRA , on board Schooner "Seth Parker", 3rd class private ship license, frequencies 6660, 6670, 8820, 8840, 13200, 13250. 17600, 17620 kc., 1 KW. Rati vicat ions Action taken January 10; KUCD , Radiomarine Corp, of America, Washington, D. C., granted 60 day authority to operate transmitter aboard vessel "Point Arena" , pending action on formal application; WMZ , WIV, New York, extension -granted of service tests for a period of 10 days; KGXB , E . Texas Broadcasting Co,., Tyler, Tex., special temporary authority to operate from 9 to 10 P.M. CST on Jan. 11, 18, 25, Feb. 1, 1934; Action taken January 12: WCAE ,WCAE , Inc., Pittsburgh, Pa., extension granted of temporary authority to operate auxiliary transmitter while moving main transmitter from Jan. 15 to Feb. 15, 1934; WCOC , Mississippi Broadcasting Co., Inc. , Meridian, Miss., special temporary authority to operate daily specified times until Feb. 15, 1934; WPFB, Otis Perry Eure, Hattiesburg, Miss,, granted special temporary authority to reduce hours of operation to specified for a period not over 30 days. Application Denied WOES, Oak Leaves Broadcasting Station, Inc., Chicago, Ill., denied authority to operate unlimited time on frequency 1360 kc. for period not over 30 days or until such time as the now unused 4/7 time on this frequency is disposed of, Amateu^ Licenses The Commission also granted 415 amateur station licenses of which 135 were new and 280 modifications. X X X X X X 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C, CONFIDENTIA L — Not for Publication _ _ _ \rT> S tt ’ 6 l! 4 « HI | y u ^ ... 'jujj lii i p,» 23 V33^ f INDEX TO ISSlE OF JANUARY 19, 1934, i yn i (iii i » r Lb Li \ < lU- Dowling's Code Appointment Starts Commissioner Talk. . 2 Mexico Credited With World's Highest Powered Station. . Germany and Austria In Acoustic War, . Sarnoff Elected To Opera Board. . . . Claim Babe Ruth's Radio Offers Violate Code. . . . Automobile Radio Sets Pep Up New Zealand's Radio Industry.. N. Yo Doctors Plan High Frequency Emergency Service. . N. Y. Police Commissioner Sanctions Radios In Taxicabs . Demands Investigation Of Administration Radio Muzzling . 7 Shaw Gets Power Increase Without Hearing . 10 RCA Plans Inter-City Radio Photogram Service . 11 Columbia Leases New York Theatre For Broadcasts.. . 12 Decisions Of The Federal Radio Commission. . . . 12 No. 690 ^ ^ . LO LO CD CD CO January 19 , 1934,. DOWLING’S CODE APPOINTMENT STARTS COMMISSIONER TALK The appointing of Eddie Dowling, musical comedy and motion picture star, by Gen. Hugh S, Johnson to be an Administra¬ tion member of the Radio Industry Code Authority started the gossip that the comedian was thus being groomed for the position of Radio Commissioner W. D. L. Starbuck, Democrat, of New York, whose term expires February 23rd, which is only about a month away, Dowling, who is a personal friend of President Roosevelt, and who is supposed to have furnished the showmanship of the Roosevelt campaign, had previously been mentioned for Radio Com¬ missioner but perhaps due to the fact that he is a professional funny man, his candidacy was referred to more or less facetiously. One commentator said the Administration instead of putting Eddie on the Radio Commission should put him on the radio. Nevertheless, the actor's appointment to be a member of the Code Authority, a position for which Judge E. 0. Sykes, Chairman of the Federal Radio Commission had been urged, definitely revealed the fact that the comedian was being seriously considered by the Administration, at least. It is pointed to as a significant fact that there is no representative of the Federal Radio Commission on the Code Authority, as it had been fully anticipated there would be. The dopesters immediately jumped to the conclusion that in reality Dowling would turn out to be the Commission- s representative and as a part of this plan he would be appointed by President Roosevelt to succeed Commissioner Starbuck next month. Offsetting this is a remark Gen. Hugh Johnson made to someone which was: "If you think I appointed Eddie Dowling Code Authority because President Roosevelt requested it, you are mis¬ taken. " Authority Another viewpoint was that Dowling’s Code/ appointment would be the fulfillment of the Administration’s obligation to him and that would be as far as he would get. Still another theory was that Dowling was appointed a member of the Code Authority because he is an actor and because the Code Authority will have to wrestle with the problem of station talent; such things as whether or not the radio actors will have to give their services free for auditions and rehearsals, the minimum rates of paying for broadcast performances, the classification of these rates according to whether these appearances are on commer¬ cial or sustaining programs, different rates for different classes of stations, and so on. 2 1/19/34 Among the others who have been mentioned for Starbuck 's place are James Killean, of New York City, said to have the endorsement of Senator Robert Wagner „ of New York. Killean., who ie about 40 years old, was very active in the Roosevelt campaign and formerly the publisher of a newspaper in the Bronx, His technical radio background is understood to be the fact that he once worked for the General Electric Company. Another candidate is James L. Lamb, of Hartford, Conn., technical editor of Q.S.T., official publication of the American Amateur Relay League c Quite another is Herbert L. Pettey, Radio Commission secretary, who also was secretary of the Interdepartmental Com¬ mission which drew up the recommendations which are serving as the basis of the new Communications Bill which Senator Dill is now drafting, Pettey, who seems to be the Administration's "fair haired boy" in radio, apparently has his eye on a bigger job, such as maybe general radio co-ordinator or some new position which may be created by the Communications bill, which it is believed may call for an entirely new governmental, radio control personnel. All of the conjectures with regard to candidates are based upon what seems to be a foregone conclusion that Commissioner Starbuck is definitely out of the picture. It was said by one of his associates that Mr. Starbuck seemed so certain that he would not be re-appointed that he was now looking for another job. At the same time, General Johnson appointed Eddie Dowling, to be a member of the Code Authority, he also named Marion K. Hedges, well-known labor statistician, to serve as a member of the Authority to represent those employees in the Industry designated as "Broadcast Technicians." Harry Shaw, of WMT , Waterloo, la., was the first Administration member of the Code Authority to be appointed. The Code Authority, in a session which lasted three days, considered numerous problems arising out of the administra¬ tion of the Code and the drafting of suitable explanations of the various provisions of the Code with the view to making them more clearly understood by the broadcasters. It is hoped by James W. Baldwin, Code executive officer, that such explanations can be furnished to all broadcasters at an early date after they have been taken up with the NRA. XXXXXXXX 3 1/19/34 V MEXICO CREDITED WITH WORLD'S HIGHEST POWERED STATION Station XER, Villa Acuna, Coahuilla, Mexico, operating on 500,000 watts, is the highest powered station shown among the approximately 878 stations included in a list of the world's radio stations compiled by the Commerce Department. The list was made up before WLW, at Cincinnati, completed erecting its 500,000 watt transmitter. A station in Leipzig, Germany, is recorded as using 150,000 watts. Station OKP, Prague, Czechoslovakia, is shown by the compilation to be operating on 120,000 watts. Two stations in Moscow and one in Leningrad, Russia, are recorded as using 100,000 watts power for broadcasting. Nothing is said about the station recently reported here to be operating on 500,000 watts in Russia. Short wave and television stations located throughout the world and numbering 136 are included in the list just made public . Records of the Federal Radio Commission show that there are 585 radio broadcasting stations operated in the United States. Russia, with 73 stations, is first-ranking among foreign countries in the number of radio stations on record, according to the list just made public. China ranks next to Russia in the number of stations operated with 72 and is followed in order by Canada with 64; Australia, 61; Cub, 57; Mexico, 54; Chile, 46; Argentina, 35; Uruguay, 33; New Zealand, 33; Japan, 30; France, 29; Germany, 26; Brazil, 19; and the United Kingdom, 17. Copies of the list may be had at 25 cents a copy from the Bureau of Foreign and Domestic Commerce, Washington, D. C. X X X X X X X GERMANY AND AUSTRIA IN ACOUSTIC WAR The acoustic war between Germany and Austria is going on merrily and with undiminished vigor on the part of the Germans, James McMullin writes in the McClure Newspaper Syndicate bulletin. Berliners returning from the holidays in the Bavarian mountains report that shortly before Christmas entire batteries of giant loudspeakers were installed on German territory along the Austrian border wherever it crosses a highway or touches on any settlements. Not only are German radio addresses attacking the Austrian government reproduced day and night, but also phonograph records of anti-Dollf uss speeches by German Naxi leaders. The loud speakers can be heard for almost a mile. X X X X X X _ 4 _ 1/19/34 SARNOFF ELECTED TO OPERA BOARD The election of David Sarnoff a Director of the Metro¬ politan Opera Company is believed to be another step in the direction of a closer alignment between the Metropolitan and Rockefeller Center e Because of the depression, which has neces¬ sitated the curtailing of the Metropolitan season from twenty-four to fourteen weeks, the possibility of New York-s ranking opera company going to Rockefeller Center has not been discussed recently « It is believed, however, that this possibility has not been discarded entirely* More than a year ago Paul D. Cravath, Chairman of the Board, announced that he had consulted with Rocke¬ feller Center officials on architect's plans* Nothing further has been done since that time, but the opera has continued its agree¬ ment with the National Broadcasting Company, a subsidiary of Mr. Sarnoff' s corporation, for the transmission of opera over the radioc Mr. Sarnoff has been interested in opera and the Metropolitan for a long time. He has been a subscriber to the Monday night series for many years. XXXXXXXX CLAIM BABE RUTH'S RADIO OFFERS VIOLATE CODE The Federal Government filed suit in District Supreme Court against the Standard Oil Co. of New Jersey charging viola¬ tion of the Oil Code and asking an injunction against the company to prevent it from giving premiums. Hearing on the suit -was set for January 30. The charge was that the Standard Oil Co. of New Jersey and its subsidiaries had inaugurated through newspapers and by radio a so-called "Babe Ruth" prize contest for boys and had refused to accede to a request by the oil administration to dis¬ continue the practice. The allegations set forth are that on every Monday, Wednesday and Friday since January 3, the company has sponsored a radio program advertising the contest. Among the chain stations listed in the petition as having broadcast the program is WRC, local Washington station of the National Broadcasting Co. Each week there is distributed through Babe Ruth 200 base¬ balls and 100 gloves - to the winners. In addition, the 50 biggest winners have been promised a trip with Ruth to his training camp next Spring. XXXXXXXX . KljC;' j tr • y y,.' /• •• 7.7.7 7 ,01 07 ' J 007 70 7 O . ii U . . . ,::o : :: y :.o;o,:7: 7.0 7 V - ’ . ' 7 'O' : . fO . 7 0 rj ;u 7 ,.:; 07 1 .7 07: O ii-.---.07-' . : •' - -'-7-: >.% 7.7 7 ... ■ ,V "I V .■ r- r ■ ■ ■■■ ••• - r- ; .- ksi . f A } 0 : '.r ; v __ D 7: 4 7 'I-. V - O’. ‘ Oi.VD V7> 7.! ’ 7. ‘7 ,0'J - i-' ; .1 j y-y ; /o ;;io ; T . 7 0 i 7 .7-. - , -TO ■: ■ 7 O 7' HO .y 1 i l- , : ; , 7: 0. • O- ~ 77. .... J . 7 .-j .77 :• «;■ --07 .,;0 7 . 7 < . •• •? 7- ; OC 7 ./ - ■ -j ,v Z '7' O' ! : . J.: .'.} V.7 .. ,f i A. . . V - ‘ .r i- ■ j . . j O ; ’ i". 1/19/34 AUTOMOBILE RADIO SETS PEP UP NEW ZEALAND'S RADIO INDUSTRY That the introduction of automobile radio sets into New Zealand is opening up a new avenue of activity for New Zealand's entire radio industry is revealed in a report from Vice Consul W. W. Orebaugh, Wellington, This field, it is pointed out, has as yet scarcely been touched, but it is expected in the local radio trade that in the next twelve months several thousands of these sets will be installed in motor cars throughout the Dominion, In this connection it is significant to note that imports of automobiles into New Zealand are increasing. A high proportion of these have radio installa¬ tions. The United States holds a dominant position as a supplier of New Zealand's radio imports. The latest available import figures covering the month of October show that American radios accounted for 1,488 of the 1,628 complete sets in cabinets imported during that month, and 7,235 of the 13,428 unmounted sets. X X X X X X N. Y. DOCTORS PLAN HIGH FREQUENCY EMERGENCY SERVICE The Doctors' Telephone Service, Inc., established in New York City in 1925, as a clearing house for doctors’ telephone calls, desiring to add radio to their service, have applied to the Federal Radio Commission for use of the ultra-high frequencies of 31600, 41000, 35600 and 38600 kilcocyles with 15 watts power to conduct experiments looking toward rendering service to doctors in transit in automobiles and airplanes. Another object of the Doctors’ ultra high frequency experiment is to provide emergency medical aid for the whole city in time of accident or serious epidemic. X X X X X X N. Y. POLICE COMMISSIONER SANCTIONS RADIOS IN TAXICABS In reversing his predecessor and permitting taxicabs in New York to carry radios, Police Commissioner O.’Ryan said: "I feel that the use of radios in taxicabs is realatively a novel use. It is not for the Police Commissioner to determine whether prospective passengers will be attracted to employ radio- equipped taxis in preference to non-radio-equipped taxis or whether the investment required for such equipment is, from the business point of view, a sound investment or otherwise. 6 i- ~:ocy.' 'r -;:r :>oj::rzoqo\. ■r ' •' ■■■ no^'BA ;;;if ■ ; \ ;j ’X' v < ; A' G Ion • . -•'* r' '•• ; X X 1/19/34 "Nor do I believe the Police Commissioner has the right to attempt to determine the effect, if any, upon the business of those operators who may not equip their taxis with radios . " I believe the Commissioners duty under the law is limited to the effect of the use of radios upon the safety of operation of the vehicles in which they are installed and particularly whether the inclusion of a radio as part of the equipment of a licensed taxi renders such a vehicle unfit or unsuited for public patronage." This determination, Commissioner O'Ryan continued, would depend upon the character of rules governing the installa¬ tion and use of radios. "I believe specifications can be prescribed to render radio-equipped taxis safe, fit andsuitable for public patronage", he added. The regulations governing the use of radios, G-eneral O’ Ryan said, would be drawn up by Second Deputy Commissioner Harold L. Allen. XXXXXXXX DEMANDS INVESTIGATION OF ADMINISTRATION RADIO MUZZLING Declaring that the radio facilities of the nation are monopolized by the Administration, Senator Arthur Robinson launched a sharp Republican attack in the Senate and concluded by offering a resolution which would direct the Interstate Com¬ merce Committee "to make an investigation of the control exer¬ cised by the Federal Radio Commission over persons broadcasting through licensed broadcasting stations, and the extent to which the freedom of speech of such persons has been restricted." "There is today a radio censorship as rigid as the censorship practiced in any land ruled by an absolute dictator. "I have here, as emphasizing this fact, a statement contained in an article appearing in the New York Times of March 19, 1933, which is brief, and I desire to read it because it bears on the subject I am discussing. It is as follows: " ’Assurance of full and complete cooperation has been given directly to the President, to all the members of his Cabinet, and to the leaders of the Senate and House of Repre¬ sentatives. Furthermore, as a matter of public policy during the present emergency, we limit broadcasts of public events and dis¬ cussions of public questions by ascertaining that such programs are not contrary to the policies of the United States Government.’' 7 i M lo i ■L\[ % • ' \ r , . <- f cA . ■.! •" 3 • . . . ■ ■■3 •o'it v .... k - 'Sr • .V >’ ‘ ' . T. : ' ■ • ! i* > : i<' ILL: 1/19/34 "This statement was incorporated in an article in the New York Times of the date above indicated by its radio editor, Orrin E. Dunlap, Jr., to the effect that ‘Radio Looms as Presi¬ dent Roosevelt's Modernized Big Stick.* "In other words, so far as radio is concerned, the people of the United States can only get one side of the question over their broadcasting facilites; that is, the side of the administration. No one over those facilities will dare criticize the administration, according to their own statement." Senator Robinson then read a letter from Walter E. Meyers, of Station WBZ, Boston, who, he said, was New England manager for the National Broadcasting Company, denying further use of radio facilities to the Massachusetts Department of the American Legion for criticizing President Roosevelt and deviating from manuscripts seen and approved by the station. The letter to the Legion concludes: "The American Legion in its patriotic support of the United States Government has always had, and shall always contin¬ ue to have, the privilege of presenting its views over these sta¬ tions. But we are obliged to impose regulatory and prohibitory ‘rules of the game.* These are prescribed by our editorial policy, customary among all broadcasting stations, and have their origin in regulations of the Federal Radio Commission* "Particularly at a time of national crisis, we believe that any utterance on the radio that tends to disturb the public confidence in its President is a disservice to the people them¬ selves and is hence inimical to the national welfare." "That is what those radio people believe, though the air belongs to the people. The people ought to have some voice in it, perhaps", Senator Robinson went on. "The letter continues: "’Obviously, as a great and powerful agency for the service of the public, these stations cannot become a party to attacks on the national security.' "When did we get to a point where one does not dare criticize the President? Is he now a dictator to the extent that no one dare criticize him? Apparently he cannot be criticized; no critical word can be uttered against him in connection with the radio facilities of the country. In the case I have just referred to, diaxHSk the speaker did not even criticize the President, according to his own statement, but just the same, the American Legion was denied further use of the facilities, except under certain difficult restrictions with which they were forced to comply. "In commenting upon this order denying representatives of the American Legion use of the facilities of the National Broadcasting Co. unless they permitted their speeches to be 8 1/19/34 censored by the National Broadcasting Co,, the Springfield Republican closed a lengthy editorial as follows: "'As for the National Broadcasting Co,'s dictum that ther shall be no radio utterance tending to disturb Ethe public's con¬ fidence in its President" and "hence inimical to the national welfare", "particularly at a time of national crisis" - if thax is offered as a general, principle, there are two objections to its acceptance,: First, it attempts to interpret the present national crisis as the equivalent of war, when, in fact, the Nation is not at war. ' " Senator Robinson declared the censorship began immediate ly with the advent of the present Administration, "The following is a story appearing in the New York Herald-Tribune of Nov. 2", the Senator continued: "’Rochester, November 1. - Assemblyman Richard L. Saunders today charged in a statement that he had been given a "raw deal" and had been ruled off the air by the management of station WHAM because of criticism of Postmaster General James A. Farley in a speech prepared for delivery last night in answer to an address Monday night by the Democratic leader. "'Assemblyman Saunders said he had presented his speech for approval, and had been asked if it could not be "toned down," "'Assemblyman Saunders said he had presented his speech for approval and had been asked if it could not be "toned down." On his reply that it could not, said Saunders, he was told that he could not make the speech, 1 "He was forbidden the air, which belongs to the people, we thought, and not to the Democratic National Chairman". Senator Robinson said, and then concluded reading the clipping. "'I asked for an explanation, since I had been told by W. Clyde O'Brien, legal counsel for the Stromberg-Carlson Co,, owners and operators of the radio station, that the address was not libelous. "'Mr. O'Brien replied', said Saunders, 'that W. Roy McCanne, president of the concern, had the success of the Republi¬ can campaign at heart, and he felt my speech wrould do it no good. "'Mr. O'Brien's explanation was obviously a subterfuge, there is no doubt in my mind that the station feared their license might be canceled for criticism of Farley, who is one of the most powerful men in Washington. ; "I have a confidential letter from sources that I do not care to divulge, because it would do them grave injustice if their names were disclosed; they might even lose whatever business they have in these latter days of near-dictatorship" , Senator Robinson said. The letter read: 9 1/19/34 "I have reason to believe, and I think, following up my tips, can produce concrete evidence, that advertisers generally have been so intimidated that they dare not say anything over the air that might even indirectly be construed as not being in harmony with the present administration. I am told of one broadcaster for a very large food product who said something that was so construed, and he was immediately called down for it. I am further advised that other advertisers have directed those in control of their advertising not to use anything that even indirectly refers to the Government or any governmental affairs. This has gone so far that they dare not say a word concerning taxation." "In other words, it is apparently a matter of blundgeon- ing the country into terror of this tremendous bureaucratic machine that has been created during the past 9 or 10 months. "On the 25th of November the Washington Post of this city carried a story, part of which reads as follows: "'The radio publicity campaign, it was learned, is being carried forward under the direction of William Dolph, director of the N.R.A.'s radio division. He has obtained promises from numerous independent broadcasting stations to broadcast nevt/s •which he col¬ lects daily from all Government departments. "'Herbert L. Pettey, secretary of the Radio Commission, has been directed to coordinate radio speeches of officials, obtain free time on the air for them from the radio stations licensed by his agency, and with the aid of R. Fred Roper, executive secretary of the Democratic National Committee, revise or censor such speeches with the view to making every word count for the administration. " 'Pettey was assigned to the job by Postmaster General Farley. ' "I will read no more from that, but it simply shows how far this censorship of the air has gone", Senator Robinson concludest XXXXXXXX SHAW GETS POWER INCREASE WITHOUT HEARING Station WMT , of Waterloo, la. , owned by Harry Shaw, was granted a power increase of from 500 to 100 watts. Mr. Shaw, who is an Administration member of the Broadcasters' Code Author¬ ity was particularly gleeful because the increase was given to him without the formality of a hearing. XXXXXXXX 10 ■ ' - 0: • 1/19/34 RCA PLANS INTER-CITY RADIO PHOTOGRAM SERVICE David. Sarnoff, President of the Radio Corporation of America, made the following statement in connection with the new inter-city radio photogram and telegraphic service: "For several years RCA research engineers have been busily occupied developing multiplex transmission by radio and also high speed facsimile transmission by use of extremely short waves . "The first development -- that iSj multiplex transmission makes possible the simultaneous sending of three different radio¬ grams on one wavelength. Each of the three channels has a capacity of sixty words per minute making the total capacity of one wavelength 180 words per minute. "The second and perhaps more important development is the practical use of ultra high frequencies or very short waves. These waves are less than five meters in length and are some¬ times called ’optical waves’. They carry signals for a distance of about fifty miles andhave properties closely analogous to light waves. They do not suffer from static or fading. Because of the comparat ively short distance over which they travel, they can be used repeatedly hundreds and perhaps thousands of times all over the country, without creating interference. "It is in this new and comparatively unexplored portion of the radio spectrum that the RCA proposed to introduce the first domestic facsimile radio communication service between New York and Philadelphia, made possible by the use of two automatic relay stations to be erected at New Brunswick and Trenton, N. J. Over this new circuit, when completed, it is confidently expected that photograms will be transmitted at higher speed and at lower tariffs than is possible with the dot and dash system of the Morse Code. Tariffs on this circuit will not be based upon so much per word but upon so much per square inch. "Applications for permission to construct these ultra modern radio stations at New York, New Brunswick, Trenton and Phila¬ delphia, and additional radio stations at Chicago, New Orleans, Washington and Boston, have been approved by the Radio Commission. It is expected that the new multiplex radiotelegraph stations at Washington, Boston, Chicago and New Orleans will be completed and open for public use approximately June 1, 1934. The new photogram radio service between New York, New Brunswick, Trenton and Phila¬ delphia will be opened later in the present year. X X X X X X X 11 fV •.? . .v-; ;■ .. 5 l . . ■ ;■ ■■■ x .;i m ■ 1 . v } . 4 , : ;s IS: orn . . ■ . v s [• f .■ • ; : / . • : ■ ; v: ; V- : / ; r f .. '• - ^ T • - . .■ ; i ' . 1'"- <■ •_ ..t -::X; i'jj '■ ■ . ■ . . ■ . ; .. ©• ; ; •;> j' ? ;;; /■ f ■: ' ' ■ • '• ■ 4 * i i ' | : . . ' ■' ' •? .. i M ,* >; V M i V* 1 v « ;; ■ c i'; . t.':* vi': 7 • - : ■ , ;• , ; : r . ;', CV f & i h'fi- $ ^ .■ . . . _ ■ ... ,J l :: f ? V.J >v? f '■ • ! : ' ' }A - ■ : '• - v I',-...;-.'-' Si. , • ■ i.-U-: .£ . ■ ■ ■ ' ' ■ V&J V :’:.■}■■■■. y - ■ ; ; ; ■■ - . - • , £, ■ , : . ■ . :: ; : ■ ? ,/ l ■ .i J i'.:' SS V i 7 ■' 7-7^ . ii ' 077 ■ ' . ;■ .7 ,• Xr3 :i r / .. S;Ij S.S- ' -s ; i. • .. :v:7 1 :>;iz a:. , :si d zdl •• d'-Oj. \-o . lo s ■•- /, . .. ■ ; '.7 .7 S'.--: ■■/7 * - ' l * V '•■7 ■ 7 A : ■. W • -T? t ■ .. ,• • 7 7 • ?; ; 7 SiS 1/33/34 RADIO PEOPLE APLENTY AT ALFALFA DINNER As usual there was a representative attendance of radio notables at the annual dinner of the Alfalfa Club in Washington; Ralph L. Atlass, of Station WIND, Gary, Ind. ; Sosthenes Behn, International Telephone and Telegraph Co, ; Thad H. Brown, Radio Commissioner; E. Eugene Buck, President, American Society of Composers; Harry C. Butcher, Manager Station WJSV; Cole Manton Davis, Radio Corporation of America; John W. G-uider, National Association of Broadcasters Code Council; Jam.es H. Hanley, Radio Commissioner; Elisha Hanson, Radio counsel; Raymond Hubbell, American Society of Composers; Radio Commissioner Harold A, Lafount; John M. Littlepage and Thomas P. Littlepage, radio counsels; Frank C. Page, International Telephone and Tele¬ graph Co.; Duke M. Patrick, radio counsel; Herbert L. Pettey, Secretary, Radio Commission; Andrew D. Ring, Radio Commission; Eugene 0. Sykes, Chairman, Radio Commission; Senator Wallace H. White, and Frank W. Wozencraft, of the Radio Corporation of America were among those present. X X X X X X X BROADCAST ADVERTISING IN NOVEMBER INCREASED Broadcast advertising in November showed further in¬ creases in volume over the marked gains experienced during the previous month, the National Association of Broadcasters report. Total radio advertising volume during the month amounted to |5,985jB57.00 and constituted a gain of 4.1 $ over October revenues, November gross revenues from the sale of advertising time on sta¬ tions and networks were 51.5 ahead of those of September, xxxxxxxxx JOHN PREFERS BRITISH SYSTEM BUT HANGS ONTO COMMERCIAL John McCormack, the Irish tenor, though apparently thinking enough of the American system of broadcasting to fill a lucrative commercial radio engagement, as quoted in the New York Times expresses a preference for the British system: "Radio appears to be in need of new ideas", Mr. McCor¬ mack observes in the Times . "Programs are repeated day after day, with slight modifications and under different titles, because good program ideas are scarce." But he contends the broadcasters can find solace in the fact that the motion pictures and stage are in the same predicament. A producer makes a novel picture and others are quick to imitate. 10 • r - 4 1/25/34 "In the main, I prefer England's broadcasting to America", said the noted tenor. "The English showmen have discovered the knack of making abstruse subjects interesting, and entertaining. American broadcasters centrate on more speakers who devote their talents to interesting topics in a popular style." XXXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted. (Jan. 23, 1934/P~ KSQO , Sioux Falls Broadcast Assn., Inc., Sioux Falls, S. Dak., C.P. to move transmitter locally and make changes in equipment; KG-IX, J. M. Heaton, Las Vegas, Nev„ , m.odif ication of C.P. to extend completion date to March 1, 1934; WPTF , WPTF Radio Co. , Raleigh, N. C. , extension of special experimental authority to operate until 8 P.M.PST, not to exceed term beyond Aug. 1, 1934; WQ.DM , A. J. St. Antoine & E. J. Regan, St. Albans, Vt., authority to operate from 8:30 to 9:30 P.M. EST, in order to broadcast President's Ball, Jan. 30th; WLBC, Donald A. Burton, Muncie, Ind. , authority to operate simultaneously with WTRC from 6:30 to 7:30 P.M. CST , on Feb. 2, 9, 10, 16, 23 and 24, 1934; WPTF, WPTF Radio Co., Raleigh, N. C., authority to operate simultaneously on night of Jan. 30th, until end of National broadcast in connection with birthday celebration for President Roosevelt. Also, KGFW , Central Nebraska Broadcasting Corp. , Kearney, Neb. , permission to operate to Feb. 1, 1934, without an approved frequency monitor, in order to make repairs; WSYB, Philip Weiss Music Co., Rutland, Vt. , special temp, authority to operate from 11 A.M. to 12 noon, EST, Sundays. Feb. 4, 11, 18 and 25, 1934, in order to broadcast local church services; and from 2 to 5 P.M. and 9 to 11 P.M. EST, Feb. 23 and 24, 1934, in order to broadcast football tournament; WOSU, Ohio State University, Columbus, Ohio, special temp, authority to ooerate from 11 to 11:50 A.M. EST, Jan. 31 and Feb. 1, 1934, provided Station WKBN remains silent. Also, KFZ, Richard E. Byrd, Main Base, Little America, license, fixed private - pt„ to pt . telg. and pt. to pt. tele¬ phone service, the frequencies above 3000 kc. and 6650, 6660, 6670, 8820, 8840, 13185, 13200, 13230, 13245, 13260, 17600, 17620, 21575, 21600, 21625 kc., points of communication: primarily with New York, Boston, Buenos Aires, Stations KJTY and WHEW and stations in Little America, license granted for 1 year; Western Wireless, Ltd. Portable and Mobile, 2 C.P.s for general experimental service, frequencies 2398, 3492.5, 5425, 30100, 31100, 31600, 33100, 34600, 35600, 37100, 37600, 38600, 40100, 40600, 41000, 86000-400000 kc. , 50 watts. seem tc clear , should con- presenting 11 I 1/23/34 W1XAZ , Westinghouse Electric & Machine Co, , Millis, Mass., license for experimental relay broadcasting service, fre¬ quency 9570 kc., 10 KW; Mutual Telephone Co, ; KHQ , Kaunakakai . Hawaii, KHN , Lanai, Hawaii, KHM , Lihue, Hawaii, and at Wailuku, Hawaii, modification and renewal of licenses in accordance with existing license, modification to make changes in equipment 0 Also, the following renewals granted: WHR , American Radio News Corp. , Carlstadt, N. J. , KUP . Examiner Printing Cc, 5 San Francisco, Cal., and WHD 5 the New York Times Co., New York City, renewal of Mobile Press station licenses, in exact conform¬ ity with existing licenses; KFT , Pacific Communication Co. . Everett, Wash., renewal of Public Coastal Telg. station license, public coastal serv. ; W PC , Bethelehem Shipbuilding Corp. , Ltd. , Quincy, Mass. , renewal of coastal telg. station license for pri¬ vate coastal service in exact conformity with existing license. Ratifications Action taken Jan. 17: KJET , Mackay Radio & Telg. Co., San Francisco, Cal., granted 60 day authority to operate 500 watt transmitter aboard vessel "Capt. A. F. Lucas", frequency range 375 to 500 kc.; Action taken Jan. 18: Yi/MCE , Radiomarine Corp. of America, Washington, D. C. , granted 60 day authority to operate ET-3674R which replaces ET-3674, aboard "Malolo" ; Action taken January 19: W DFM, Mackay Radio & Telg. Co. , New York, granted 60 day authority to operate 50 watt transmitter aboard vessel "Vamarie", pending receipt and action on formal application, fre¬ quency range 375 to 500 kc; KDQF, Same Co., granted 60 day author¬ ity to operate 1 KW spark transmitter and 2 KW transmitter aboard vessel "Jeff Davis", pending receipt and action on formal appli¬ cation; Action taken Jan. 20: WHET , Troy Broadcasting Co., Troy, Ala., granted special temporary authority to operate from 7 to 9 CST , Jan. 29, 1934. January 23, 1934 - KICK, Red Oak Radio Corp., Carter Lake, la., the Commission reconsidered and granted application for construction permit to move station from Carter Lake to Davenport, make changes in equipment, change frequency from 1420 to 1370 kc. , and change call letters to WOC; also granted volun¬ tary assignment of license to The Palmer School of Chiropractic. Oral Argument Before Commission En Banc The Commission will hear oral argument on Feb. 7 on Ex. Rep. No. 524, the application of Wyoming Broadcasting Co. , Cheyenne, for C.P. for a new station to operate on 780 kc, , 500 w. night, 1 KW LS, unlimited time. X X X X X X 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. COMFIDENTIA L — No! for Publication ; fe its r \ . iMsilSlL-: ' 1UJ i INDEX TO ISSlMf OF JANUARY 36, 1934. Religious Discrimination Complaints Swamp Congress . 2 Bellows-Pillsbury Engagement Announced . 3 France Honors Alfred H. Morton With Legion Cross . 4 To Apply Radio To Aeronautical Teletypewriter Operation . 5 Two New Congressional Radio Committee Members . Free Admission To Radio Broadcasts Is Protested. . Patterson Sets Clean Bill In Welfare Island Expose . Advises La G-uardia To Practice Up On Radio. . Dill Says Communications Commission Comes Before Merger Liquor Advertising Has Commission Guessing. . . Killeen Mentioned As Favorite In Commissionership. . Schuette Successful In Aluminum Trust Efforts . 10 Decisions Of The Federal Radio Commission . 10 No0 692 7 CD CD CD -<2 -a CD CD RELIGIOUS DISCRIMINATION COMPLAINTS SWAMP CONGRESS Members of Congress have been deluged with complaints from members of the church of Judge Rutherford protesting against alleged refusal of the major networks to sell time for a religious program. A petition from the District of Columbia addressed to Representative Mary T. Norton, of New Jersey ? Chairman of the District Committee, carried the signatures of 20,000 'Washington residents. Representative Wesley Lloyd, of Tacoma, Wash., received the same kind of a petition from 30,000 citizens of Tacoma. A formal protest was made in the House by Representative J. Howard Swick, of Beaver Falls, Pa., who said: "I have today filed the following petition, bearing the names of 10,264 residents of my district, divided as follows: Beaver County, 4,769; Lawrence County, 3,242, and Butler County, 2,253. The petition was accompanied by a letter of transmittal from the Honorable George T. Weingartner, of New Castle, Pa. "’To the Congress of the United States of America, greetings : "'We, undersigned people of the United States of America, capable of determining for ourselves what we wish to hear broadcast by radio without censorship by the clergy or anyone else, hereby protest to the Congress against certain wrongful interference with our rights. "’The Radio Act provides, as we understand.^. for the broad¬ casting of that which is in the public interest. " ’The message of the true God, Jehovah, as expressed by Him in the prcphecj es of His Word (the Bible), and as now being given to the people of this Nation by Judge Rutherford and others of Jehovah’s Witnesses is of interest to us. When broadcast, it is convenient for us to hear it in our homes and is necessary for our welfare. We are entitled to hear and desire to hear that message. We disapprove of every attempt to prevent our hearing it broadcast. "’The National Broadcasting Co., the Columbia Broadcasting System, the Roman Catholic hierarchy, and others have wrongfully, by threats, coercion, and other improper influence, prevented many stations from broadcasting this message of truth, thus depriving stations of legitimate income and depriving millions of American citizens of the privilege of hearing what they wish to hear, and against this wrongful action we vigorously protest. "Exercising the right guaranteed to us by the Constitu¬ tion of the United States, we therefore respectfully petition the Congress to act at once to safeguard the inherent rights of the American people relative to the radio.’ 2 1/26/34 To which the Chairman of the House replied.: "I understand that similar petitions have been received by several Members of this House , all of them bearing the signa¬ tures of thousands of American citizens,, We have heard similar charges of censorship made against the racio companies on the floor by members of this House. It is certainly evident that something is wrong: we cannot ignore such charges. Each of these petitions have been referred to the House Committee on Merchant Marine, Radio, and Fisheries. I hope the chairman of that com¬ mittee will recognize the rights of these petitioners and conduct an investigation of the charges, and if these conditions prevail, that legislation is forthcoming that will correct them. 11 1 would be derelict indeed if I failed to present a matter of sufficient importance to have received the signatures of more than 10,000 residents of my district to this Congress. It is of importance to all concerned that this matter be thoroughly investigated at a very early date." Representative Beedy, of Portland, Me., presented a similar petition from Jennie Grant and 4000 other citizens; Representative Alfred F. Beiter, of Williamsville , N. Y. , a petition signed by some 7,000 citizens of Erie County, N„ Y. ; Representative Culkin, of Oswego, N. Y . , a petition for 4,589 citizens; Representative Lamneck, of Columbus, 0. , 14,490 citizens of Columbus; and Representative Charles D, Millard, of Tarry town, N. Y., a petition from 6,000 persons. Representative Doutrich, of Pennsylvania, likewise received several petitions. All protests were referred to the House Committee on Merchant Marine, Radio and Fisheries, of which Representative Bland of Virginia, is Chairman. X X X X X X BELLOWS-PILLSBURY ENGAGEMENT ANNOUNCED Mr. and Mrs. Henry Adams Bellows have announced the engagement of their daughter, Eleanor, to Philip Winston Pillsbury, son of Mr. and Mrs. Charles Stinson Pillsbury, of Minneapolis. Mr. Bellows, who developed Station WCCO, in Minneapolis, is Vice-President of the Columbia Broadcasting System in Washington. Charles Stinson Pillsbury is Vice-President of the nationally known Pillsbury Flour Mills Co. XXXXXXXX 3 ' . ' I I}.|i ,i c Fi -r* : 7 i 'io 1/26/34 FRANCE HONORS ALFRED H. MORTON WITH LEG-ION CROSS In recognition of his services in assisting France in the development of its radio system when he was European represent¬ ative of the RCA, the French Government awarded Alfred H. Morton, now of the NBC, the Cross of the Legion of Honor. The presenta¬ tion took place at the French Embassy in Washington and was bestowed by Andre de Laboulaye, who thanked Mr. Morton for his counsel to France when they were formulating their radio policies* Things were in a chaotic state, insofar as radio was concerned, when Mr. Morton went to Paris about four years ago. Not only was his advice sought with regard to point-to-point communication and broadcasting, but also as to the manufacture of receiving sets. Because of the fact that Mr. Morton had formerly lived in the Capital, in fact as Superintendent of the RCA in Washington in 1923 had built Station WRC, Frank W. Russell, Vice-President of the NBC gave a luncheon for him at the Hotel Willard prior to the presentation of the Legion of Honor decoration. Those present; were Vincent F. Callahan, Assistant to Mr. Russell; F. P. Guthrie, District Manager of the R.C.A., who succeeded Mr. Morton in Washington; Major Joseph T. Clement of the RCA Victor Company; C. E. Pfautz, Manager RCA Central Fre¬ quency Bureau, Richard A. Ford, RCA counsel; James E. Chinn, Radio Editor, Washington Star ; Dick Tennelly, Radio Editor, Washington News , and Martin Codel, publisher of Broadcasting Magazine . During the luncheon, Major Clement, who also has the distinction of being a French Legionnaire, caused quite a laugh by telling about the American newly arrived in Paris who said, "I notice a good many people here wearing little ribbons in their buttonholes.11 Not knowing that the ribbon was the Legion of Honor insignia, but evidently all ready to put a ribbon into his buttonhole too, the visitor concluded by asking Clement, 11 Is that the thing to do?" Mr. Morton, who was recently appointed Business Manager of the Program Department of the NBC in New York, left Washington in 1923 when he became Assistant Commercial Manager of the RCA in New York, assistant to the late Col. Samuel Reber. Mr. Morton succeeded as European Manager of RCA, Col. Henry L. Roosevelt, who is now Assistant Secretary of the Navy. X X X X X X X 4 _ 1/26/34 TO APPLY RADIO TO AERONAUTICAL TELETYPEWRITER OPERATION Organization of a committee of radio experts to study the practicability of utilizing radio for the operation of the nation-wide network of Department of Commerce aeronautical tele¬ typewriter circuits, was announced by Rex Martin, Assistant Director of Aeronautics of the Department in charge of air naviga¬ tion,. The committee is as follows; Mr. Martin, Chairman; Paul G-oldsboro, President Aeronautical Radio, Inc. , Washington; W. H. G-. Finch, Secretary and Chief Engineer, American Radio News, New York; Eugene Sibley, Chief Communications Section, and W. E3 Jackson, Chief Radio Section, Aeronautics Branch, Department of Commerce. The 13,000 miles of leased land-wires that comprise the Department of Commerce aeronautical teletypewriter system through¬ out the United States are for the dissemination of hourly weather reports along the airways and for the transmission of weather maps every four hours. The hourly weather reports are broadcast to airmen in flight through Commerce Department airway radio sta¬ tions. If the committee headed by Mr. Martin finds it can apply radio to the operation of the teletypewr it er machines on the air¬ ways, this will result in a substantial saving to the G-overnment through the elimination of the leased land-wires. The Department’s airway radio stations and corps of trained radio operators would take over the radio phases of teletypewriter operation. The Committee plans a trial installation of radio- operated teletypewriters between Newark, N. J., and Washington, D. C., which will parallel the land-wire oircuit already in operation. Both the hourly weather reports and the weather maps will be transmitted over the experimental circuit and an excellent opportunity of comparison between the two method-s will be avail¬ able. In connection with plans for this installation, Joseph Hromada, a Department of Commerce radio expert now on duty in Chicago, has been ord.ered to Washington. Mr, Sibley will be in charge of the traffic phase of the experiment and Mr. Jackson will deal with the technical radio aspects. Mr. Finch will contribute experience already obtained by the American Radio News in transmitting press dispatches by radio-teletypewriter between New York andChicago, and Mr. Goldsboro who coordinates the radio activities of the scheduled airlines, will advise with the committee in this regard. X X X X X X X 5 1/ <5b/ 04 TWO NEW CONGRESSIONAL RADIO COMMITTEE MEMBERS Representatives A* H. Carmichael; of Alabama, and David D. Terry, of Arkansas, have been added to the Merchant Marine, Radio and Fisheries Committee * The other members of the Committee now are: Messrs. Schuyler Otis Bland, Chairman, of Virginia; George W. Lindsay, of New York; Oscar L„ Auf der Heide, of New Jersey; William I. Sirovich, cf New York; Rober , Ramspeck, of Georgia; Ambrose Jo Kennedy, of Maryland; Charles N, Crosby, of Pennsylvania; Albert C. Willford, of Iowa, Monrad C, Wallgren, of Washington, John Y. Brown, of Kentucky; Edward C. Moran, Jr. , of Maine; William B, Umstead, of Nor u II Gel rolina ; Francis E. Walter, of Pennsylvania; Joe H. Eagle, of Texas; Frederick R. Lehlbach, of New Jersey; Frank R. Reid, of Illinois Charles L„ Gifford, of Massachusetts; Richard J. Welch, of California; Francis D. Culkin, of New York; George Wc Edmonds, of Pennsylvania; Lincoln L, McCandless, of Hawaii, and Anthony J. Dirnond, of Alaska. The Interstate Commerce Committee, which has charge of radio control legislation in the Senate is as follows: Messrs. Clarence C. Dill, of ’Washington, Chairman; Ellison D. Smith, of South Carolina; Burton K. Wheeler, of Montana; Robert F. Wagner, of New York; Alben W. Barkley, of Kentucky; Matthew M. Neely, of West Virginia; William H. Dieterich, of Illinois; Lonergan, Augustine, of Connecticut; Huey P. Long, of Louisiana; Fred H, Brown, of New Hampshire: William H, Thompson, of Nebraska; James Couzens, of Michigan; Simeon D. Fess, of Ohio;Jesse H. Metcalf, of Rhode Island; Hamilton F. Kean, of New Jersey; Daniel 0. Hastings, of Delaware; Henry D. Hatfield, of West Virginia, Wallace Hs White, Jr. , of Maine, and Carl Hatch, Mexico. There is one vacancy on the Committee yet to be filled. X X X X X X X X FREE ADMISSION TO RADIO BROADCASTS IS PROTESTED The Legitimate Theater Code Authority, meeting in the offices of the League of New York Theaters in New York recently, made a formal protest to Sol A = Rosenblatt, Division Administra¬ tor of the N.R.A. for the amusement industry, against the practice of radio companies cf admitting audiences free of charge to radio broadcasts, terming it unfair competition against the legitimate theater. The Code Authority took the view that free admission to radio broadcasts, with stars familiar to both motion picture and legitimate theater followers, was not consistent wi_h the spirit of the N.R.A. in that in one industry there was no charge for seeing the efforts of entertainers and in the other a charge was necessary to meet overhead expenses. 6 u li ’ • 3 ■ . v ' ' ■ v : 1/26/34 The protest is believed to have been occasioned by the recent announcement of the Columbia Broadcasting Company that it would open the Hudson ■‘■heater in New York as the Rad'" Playhouse with admission to broadcasts there either by invitation or ticket, but in both cases without charge. The Colum: ia Broad¬ casting Company said that if had no comment to make upon tne protest of the Code Authority. As a means of working out some sort of an agreement, the Code Autnority appointed a committee to confer with the Motion Picture Code Authority and the Radio Code Authority. The committee is composed of Marcus Hyman, of the National Association of Legitimate Theater Managers; Frank Gillmore, President of the Actors' Equity, andWilliam C. Elliot, Chairman of the National Alliance of Theatrical Stage Hand Employees and Motion Picture Machine Operators. William P. Farnsworth, assistant to Mr. Rosenblatt, attended the meeting and was appointed an ex- officio member of the committee. Dr. Henry Moskowitz, director of the League, presided. XXXXXXXX PATTERSON GETS CLEAN BILL IN WELFARE ISLAND EXPOSE One man came out of the shocking expose of conditions at Welfare Island in New York City with flying colors, and that was Richard C. Patterson, Jr., former New York City Commissioner of Correction and no w ranking Vice-President of the National Broadcasting Company. Gangster domination began after Mr, Patterson resigned as Commissioner of Correction, according to a statement issued by E. R. Cass, of the Prison Association of New York. XXXXXXXX ADVISES LA GUARDIA TO PRACTICE UP ON RADIO The following suggestion is made to the Mayor of New York by Alva Johnston, in the Saturday Evening Post: "If La Guardi a is to gain a national hearing, he will probably have to polish up his radio delivery. He can express himself forcibly and clearly, but he has a raspv voice which changes into a falsetto when he grows fierce or sarcastic. On the air he loses the effect of his tremendous grimaces, his rustled hair, Napoleonic head and windmilling arms, for he is an orator of the color-and-act ion school.” X X X X X X X 7 t p, ■it 91 ■ i o f - .■ a 091' . 'O I\ •r • ■ f C ■ ' Ov ■. : < v,.el" ■ cr ■ ri o ■ - ' ■ • ' ' ,. ■■■:■ \p aq nx "**.* --J -..Mil p ■ ' c v .. : ■' no ■: .1 oM i ■ .. , j ' :• .. ■ : - ■ . l:10. bnsi : - ■ it .... • '• ' ' . ' vl \ ■' O0 . ' ai ■' / . - ■ ... ; ' '■ . ' . ' : • ■■ :Y r’/f .. •-j ; ■ ■ • ■ . , ■a:- j .*• • ?. . V C. i . O £: ::: ... ... xSi •' • I • . ' LC B 9X1 & . o v'.:o 1/26/34 DILL GAYS COMMUNICATIONS COMMISSION COMES BEFORE MERCER Commenting upon reports from New York that a merger of the Western Union, Radio Corporation of America and the Inter¬ national Telephone and Telegraph Company is simply awaiting sanction of the United States Government, Senator Dill, Chairman of the Senate Interstate Commerce Committee, intimated it might have to wait sometime* "All those New York fellows seem to think about is the merger* It is a case of stocks and bonds you know l", Senator Dill said., ''They don 1 1 care anything about a Communications Commis¬ sion or the control of radio, telephone or telegraph - all they want is governmental sanction to merge* "However* the creation of a Communications Commission is the important thing and that comes first. The Interstate Commerce Commission was in existence years before any merger was considered. Our initial task is the Communications Commission and the bill we are now at work on will have no proviso in it for a merger. We have not discussed any merger and have no agreement upon one. "It is possible the merger proposition may be brought up at the hearings on the Communications Bill but in the meantime, it will have to ride along awhile. The only way to control rates is through competition. Owen D» Young’s merger several years ago which wasn't as big as this one fell down because there is no way to control rates at the other end of the line." Senator Dill said he believed the Communications Bill w o ul d be ready to introduce in about two or three weeks. Drafting clerks are now going through the Interstate Commerce Act and past¬ ing up such sections as apply to the radio, cable and telegraph. For this reason the bill in its original draft may run over 100 pages but this will be considerably boiled down with later revision. President Roosevelt has referred the report of the Inter¬ departmental Communications Committee, of which Secretary Roper is Chairman, to Senator Dill for his guidance in ’writing the Communica¬ tions Bill, also to Representative Sam Rayburn, Chairman of the House Interstate and Foreign Commerce Committee. The President said that it should be clearly understood that the Communications report was not an Administration proposal or policy. X X X X X X X 8 1/26/34 LIQUOR ADVERTISING HAS COMISSION GUESSING How to rule in the case of advertising hard liquor over the radio has had the Federal Radio Commission stumped for some time. It is invariably intimated that something may be done about it !1at the next meeting” , but the "next meeting” comes and gees and the hard liquor advertising oolicy is as much of a mystery as ever* It is definitely known that the Commission has discussed the question at several meetings but it is just as definitely known that they haven !t come anywhere near to reach¬ ing an agreement. One theory is that they never will and that rather than attempt to lay down a definite policy, they will let the consciences of the radio stations be their own guides, and then if complaints come in, the Commission will act upon them. ’’Wait for complaints" - maybe that will be the Commission's hard liquor advertising policy. "I think if a radio station chooses to advertise liquor the danger of a comeback will not be so much from the Radio Commission as from the audience of the station", said an official attached to the Commission. "You noticed when William S, Paley, President of Columbia, turned thumbs down on liquor advertising. That meant he thought his radio audience wouldn’t stand for it and I think his deduction was 100 per cent correct. "I heard a man say the other day, 'I drink, I enjoy drinking, but I'll be blessed if I want any liquor ads to be coming in over the radio where my daughter will hear them. When they begin broadcasting liquor advertising, I am going to throw my radio set out.’". XXXXXXXX KILLEEN MENTIONED AS FAVORITE IN COMMISSIONERSHIP It was learned on good authority that John F. Killeen, of New York City, has the inside track as successor to Commission¬ er W. D. L. Starbuck, of the Eastern Zone, whose term expires February 23rd. Mr. Killeen, a Democrat, was an assistant to National Chairman Farley in the Roosevelt campaign. He is the publisher of the "Jeffersonian", a New York State political magazine, and supported Joseph V. McKee in the New York mayorality campaign. Mr. Killeen is about 50 years old. What his radio qualifications are, deponent sayeth not. XXXXXXXX - 9 - ' '01 ' 0 C. VC: - v . • 1 ' C 1 oi ?■ J. < ; .?■ r [ ( • • : J ;r : v' ■ ■ >j. ■ i i . . •i;j r x : h . i t •. , -r --s V... ;■ :f ; 0 • rsc t oo;: o OaV a : r: /. - ' V v a . . v :v, !■ jr: ? y ra; o ; >' . ■ ;;; /: . : ' . 7 0 , 'f ;r • f . i \ • v X o . O-.'-OaO:;; :aV; ; i j: 3.0 ' ar.o 0 .1 a 7 C-j > . 7. .■ V" a- ’.iZ'Ji ; OO 00 Ol ■'> 7 0 .. . ; -a . . . a : : fO a V oriV , . ■ . :0 1 JVS . • - ■ 7 V aV: 7.7 lir*? axaC odCC; - *3 ?>:(:{ V a; • 7 : I1.7 . O..;./ r. - Cv a 7 i. C ' ■ ■ ■ 7- •: . '7 ; :v : •. .7 n O . /■: ; ; : X j ;i ; j. : : 7 J « i 7iiv 0 ;;7i ■ ■ ■ . i. .Lr:,: 0 ; r J 0 . .7 : ' •f- : . •t 0 07 .. n : j . oV 1/26/34 SCHUETTE SUCCESSFUL IN ALUMINUM TRUST EFFORTS The Aluminum Company of America, described by Attorney General Cummings as a ”100 per cent monopoly” in the production of aluminum, is being re-investigated by the Department of Justice at the request of Oswald F. Schuette, whose work in the radio industry is well known. Coincidentally with this, the Attorney General announced that the inquiry into the income tax affairs of Andrew Mellon, former Secretary of the Treasury, was nearly complete. Mr. Schuette has been on the trail of the so-called "Aluminum Trust" for several years. XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (Jan. 26, 1934) WAVE, WAVE , Inc., Louisville, Ky. , license covering move of station from Hopkinsville to Louisville, Ky. , 940 kc, , 1 KW, unlimited time; KGBX, KGBX, Inc. , Springfield, Mo., C.P. to install new equipment; WAAT , Bremer Broadcasting Corp. , Jersey City, N.J. modification of C.P. to move transmitter locally in Jersey City, extend commencement and completion dates from Oct. 30, 1933, to Feb. 1, 1934, and from Feb. 1, 1934 to May 1, 1934, respectively; WJEM, Britt A. Rogers, Jr., Tupelo, Miss., modifica¬ tion of C.P. to extend commencement date to Feb. 1, 1934. and com¬ pletion date to May 1, 1934; WOAI, Southern Industries, Inc., San Antonio, Tex., modification of license to change name to Southland Industries, Inc.; WJZ , National Broadcasting Co,, Inc., New York City, extension of special experimental authorization to operate with 50 KW for next 6 months; KQV, KQV Broadcasting Co. , Pittsburgh, Pa. , authority to operate simultaneously with Station WSMK, Jan. 30, from 10 P,M. to 1 A.M. EST, in order to broadcast President's birthday program; Feb. 1, 5, 13, 17, 21, 1934, from 10 to 11 P.M. EST in order to continue broadcast of LaCrosse game, Feb. 2 and 22, 1934, from 10 P.M. to 12 midnight EST, in order to broadcast boxing matches. Also, KIEM, Harold H. Hanseth, Eureka, Cal., authority to operate night of Jan. 30 in order to broadcast President's birthday program; WTRC, The Truth Publishing Co., Inc., Elkhart, Ind. , authority to operate from 7:30 P.M. to 1 A.M. Jan. 30 in order to broadcast President's birthday program; WTIC , Travelers Broadcasting Service Corp. , Hartford, Conn. , authority to change frequency from 1060 kc. to 1040 kc. , and operate simultaneously with KRLD, for purpose of securing evidence for hearing on Feb. 14th on applications of WBAL, KTHS, WTIC and KRLD, to make certain changes in the frequency and operate simultaneously ; WSBC , 10 - 1/26/34 WSBC, Inc., Chicago, Ill., C.P. to make changes in equipment; WMBH, M. M. Robertson, Joplin, Mo., special temporary authority to operate specified hours Feb. 3, 10, 17 and 24, and Feb. 4, 11, 18 and 25; also on Jan. 30; WFDV , Rome Broadcasting Corp. , Rome, Ga. , special temporary authority to operate from 9 P.M. to 12 midnight, COT, Jan. 30 in order to broadcast President’s birthday program; EFJB, Marshall Electric Co., Inc., Marshalltown, la, , special temporary authority to operate specified hours Feb. 1, 2, 3, 5, 8, 9, 11, 15, 16, 20, 22, 23 and 27, 1934; and Feb. 1, 2, and 3; KFDY, So. Dak. State College, Brookings, S. Dak. , special temporary authority to operate specified hours Jan. 29 and Feb. 5, also Feb. 2, 1934 and Feb. 8, also Feb. 3, 10 17 and 24; KFYR, Meyer Broadcasting Co., Bismarck, N, Dak., special temporary authority to operate specified hours Feb. 3, 10, 17 and 24, 1934, provided KFDY remains silent; KGKB, E, Texas Broadcasting Co., Tyler, Tex., special temporary authority to operate from 10 to 11 P.M. CST, Feb. 1, 1934, and from 9 to 11 P.M. CST, Feb. 5, 8, 12, 15, 19, 22 and 26. 3934; WSVS, Seneca Vocational High School Buffalo, N. Y. , special temporary authority to operate from 8:15 to 9 P.M. ES^, Feb. 5, 19 ana 26, 1934. . Also, RCA Communications, Inc.: WEM , New York City modification of license of Station WEM at Rocky Point, N. Y. , KET, Bolinas, Cal, and KQR, Kahuku, Hawaii, to add Little America as a new point of communication to keep in touch with the Byrd expedi¬ tion; WEM, Rocky Point, N. Y. , special authority to use fixed pub¬ lic service Station WEM at Rocky Point, for the purpose of com¬ municating with ship telephone station KNRA aboard Schooner "SETH PARKER" for a period of 90 days, in order to facilitate reception of program material from the "Seth Parker" for delivery to the studios of NBC; Victor Henry Tonies, Portable, general experiment¬ al C.P. 30100 and 33100 kc, , 10 watts, portable - Berkeley, Cal„; Elmer L0 Brown; New, at Oakland, Cal., general experimental C.P., frequencies 30100. 31100, 31600, 33100. 34600, 35600, 37100, 37600, 38600, 40100, 40600, 41000, 86000-400000 kc . , 401000 kc. and above, 15 watts; New. Portable & Mobile, same except power 2 watts (two applications); Also, New, same except 15 watts power; National Broadcasting Co., Inc., Portable 1 Mobile, 2 C.P.s, general experimental service, frequencies 17310, 23100, 25700, 26000. 27100, 31100, 34600, 37600, 40600, 86000-400000, 401000 kc. and above, 15 wat u vj ^ Oo Iso granted licenses covering same; W3XI , Carnegie Institution of Washington, Dept, of Research in Terrestrial Magnetism, Kensington, Md. , General experimental license, frequencies 1594, 2398, 3492, 4797, 6425, 8655, 12862, 17310, 23100, 27100 and 41000 kc., 500 watts; W1XH5. New England Tel. & Tel. Co., Boston, Mass., modification of license to add the frequency 2322 kc. ; WIEF , Miami Broadcasting Co., Inc., portable & Mobile, modification of temporary broadcast pickup li¬ cense to change frequency from 2342 to 1622, and 2150 kc. ; W2XEQ , Township of Teaneck, Teaneck, N. J., modification of C.P. to change type of equipment, change power from 15 to 50 watts, and change frequencies from 41000 to 30100, 33100, 37100, 40100 kc., also license covering same; KLN, Mutual Tel. Co., Hilo, Hawaii, renewal of license in accordance with existing license except as to description of transmitter. 11 1/26/34 Also , American Telephone and Telegraph Co. ; W^O, Long Lines Dept*, Ocean Gate, N. J. , modification of lj clnllfe to change emission from A3 only to: Primarily A3;; secondarily A1 or A2 for test purposes or the exchange of service messages; also renewal of license in exact accordance with existing license; Also same as latter grant to WOY, Lawrenceville , N. J. , W2XR, Radio Pictures, Inc. , New York City, extension of special temporary auth¬ ority to May 1, 1934, coveiing use of frequency band 1600-1700 kc. for visual broadcasting transmission; Henry B. Harris, on an Aircraft- extension of special operating privilege to operate his amateur station aboard aircraft, for period up to June 1, lS54n Action On Examinees Report KECA, Earle C. Anthony, Inc., Los Angeles, Cal., denied modification of license to change frequency from 1430 to ?b0 kc. the facilities of KTM and KELW, sustaining Examiner Ralph L. Walker: KFBK, JaSo McClatchy Co. , Sacramento, Cal., denied C„P, to change frequency from 1310 to 1430 kc. and to increase power from 100 to 500 watts, sustaining Examiner Walker; New, Don Lee broadcasting System. Redlands, Cal., denied C.P. for a new station to operate on 780 kc. , 500 watts, unlimited time, facilities cf KTM and KELW, reversing Examiner Walker; KTM, Pickwick Broadcasting Corp. , Los Angeles, Cal., renewal of license granted on 780 kc. , 5C0 watts day, 1 KW, LS, sharing with KELW, reversing Examiner Walker; also granted authority to voluntary assign the license to The Evening Herald Publishing Company; KELW , Magnolia Park Ltd., Burbank, Cal., granted renewal of license to operate on 780 kc. , 500 watts, shar¬ ing time with 'KTM; also granted authoiity to voluntarily assign license to The' Evening Herald Publishing Company; reversing Examiner Walker. Ratifications Action taken Jan. 20: WBDB, Radiomarine Corp. of America, Washington, D. C. , granted 60 day authority to operate 200 watt transmitter aboard vessel "American Farmer" , frequency range 2000 to 17100 kc. ; KFKP, Mackay Radio & Telg. Co., Inc., New York, granted 60 day authority to operate aboard vessel "Cities Service Boston*-1 , pending action on formal application, frequencies 315 to 600 kc, ; Action taken Jan. 22: W APT , Radiomarine Corp. of America, Washington, D. C„ , granted 60 day authority to operate 50 watt emergency transmitter aboard vessel "’Santa Cecilia", pending receipt and action on formal application; Action taken Jan0 23; KJJT, Mackay Radio & Telegraph Co., New Ycrk, granted 60 day author¬ ity to operate 2 KW spark transmitter aboard vessel "EXMINISTER" pend¬ ing receipt and action on formal application; KIFS , KFJI Broad¬ casters, Inc., Klamath Falls, Ore., granted authority to use sta¬ tion KIFS Jan. 30, in connection with President's birthday program; WPTF, WPTF Radio Co„ , Raleigh, N. C. , granted special temporary authority to operate a 50-watt composite transmitter for purpose of making field intensity measurements in vicinity of Raleigh, N.C. for period of 2 weeks from 1 to 6 A. M. EST . X X X X X X X 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication \ KAlKS&t Sr’i'A: \ LEOAi 'O'- |g) 1 @ I B I i n;| M JAN 31 1934 M f " f -I t o ®, e>. . ?•'?, t,9,a. 4 * J i^.Vl-V • * ' - ■ • T I j INDEX TO ISSUE OF JANUARY 30. 1934, JU Communications Committee Urges Private Ownership,.... . 2 "False1', Says Mullen Of Lobbyist Charge . 4 Recommends Renewing KWEA License. Says NBC Was Forced To Charge Radio City Admission. Alleges Roosevelt Shut Off In Campaign, . . President Presents 2nd Division Medals. . . . . Sciys Radio-Cable Competition Saved People $10,000,000 . 7 Don Lee Appeals Decision Favoring Hearst . . . .7 Equity Offers Radio Code Proposals. . 8 Business Letter Notes . 9 Equity Offers Radio Code Proposals (Continued), . 10 Agreement Near On Radio-Press Plan Discussion, . 11 English Channel Micro-Ray Service..... . .11 Decisions Of The Federal Radio Commission, . . 11 No. 693 LO LO CO CD . January 30, 1934. COMMUNICATIONS COMMITTEE URGES PRIVATE OWNERSHIP The Interdepartmental Committee whose recommendations to President Roosevelt have just been forwarded to Senator Dill, Chairman of the Interstate Commerce Committee, and to Representa¬ tive Rayburn, of the House Interstate and Foreign Commerce Committee for their guidance in drafting the new Communications Commission bills, believes that communication companies should be privately owned and operated, at least for the present. The report confines itself to point-to-point communication and makes no mention of broadcasting. Representative Rayburn said he was preparing to introduce his bill despire the prediction of Speaker Rainey that no Communications measure would pass this session. President Roosevelt in transmitting the recommendations said he would be glad to discuss them with House and Senate Committee members at the proper time. A new executive agency or commission would be created, under the recommendations, for the regulation of telegraph, tele¬ phone and radio. The Interstate Commerce Commission, it was pointed out, is now partially vested with such powers, but is too burdened with regulation of transportation supervision to undertake such a vast control. "When the Radio Act was passed, Congress was alive to foreign domination" , the Interdepartmental Committee reported, "and went to great length to prevent foreign influence from enter¬ ing our communication system. They were unsuccessful, to some extent, as a loophole in the law permits a f oreign-dominated hold¬ ing company to own United States communication companies. This flaw in the law has already been utilized for that very purpose, and one member of the Committee strongly advises that now is the time to remedy the defect. He is of the opinion that all the communication companies of the United States and its possessions and their holding companies should be privately owned by American stockholders, operated and controlled by American directors, officials, and personnel." One member believes that the Radio Corporation of America or any other independent radio company would hesitate to enter the domestic field against the Western Union and Postal Telegraph Cable Co. under present conditions. However, if Western Union and Postal Telegraph should merge, he feels that it would be necessary to permit a radiotelegraph company to enter the domestic field in order to preserve for the public the benefits of the cheaper rates and better service which competition engenders, in addition to furnishing more direct international communication. In nations of great area such as Brazil, Russia and China, which could not afford landline structures like the more compact nations, radio is already being applied to connect large 2 1/30/34 cities because of low costs of installation and operation, greatly to the public advantage. The Committee realizes that the country's technical communication facilities are as good as those of any other country but it is of the opinion that they are not of the greatest possible use to the people under the present conditions, particularly as regards organization, extent, and rates. There is no existing communication policy for the develop • ment of improvement of our national communication facilities nor one single office in Washington to which all communication problems can be referred. The Committee believes that the communication service so far as Congressional action is involved should be regulated by a single body. From the legal, engineering, and public service stand¬ points, it appears that the Government : s regulation of private communications should be administered either by a Communications Commission of a quasi- judicial character, or placed directly under the jurisdiction of a Cabinet officer. In the event of the latter, there should be established a Board of Communication Appeals whose function would be limited to issues involving equity. In either event all interested parties should have recourse to a Federal court in the District of Columbia for the purpose of appealing adverse decisions. The Committee recommends a National Communications Advisory Council consisting of representatives of the Army, Navy and other Governmental agencies. The majority of the Committee believe permission to merge, the same as telephone companies do with the approval of the Inter¬ state Commerce Commission, should be extended to all communication companies, while one member believes that "the same provisions should be extended to wire and cable telegraph companies and to radio telegraph companies in such manner that radio may have the opportunity to compete with wire and cable in both international and domestic telegraph fields." Particular reference was made to the Radio Corporation, which was declared "seriously handicapped" because it is forced to depend on wire telegraph system offices for the picking up of messages . One compelling reason, according to the reporr. which dictates a monopoly of communications in France and Germany, for instance, is the necessity for rapid and immediate mobilization in case of war. Those countries are so situated adjacent to each other and their relations are such that they must be instantly prepared for a major war, A few hours' delay in a mobilization order may have terrific consequences. The Navy is the first line of defense for this country. Mobilization of land forces can pro¬ ceed at a slower pace without disaster. France and Germany must rely for immediate action at the outbreak of war on their domestic 3 ■ yj i ' 1 v yJi . , • • ' • [ V j () • 7; 7? •; - - V -’.0 0 .Vi/:OD C-.O - i -i -v 0.3 -.1 ;.0 0 O' ;•/ 0 r- • • * VO , *. ;T : :*.T ; 'Y ; ; . ; . r; o. 0 v. i 7. ■ • f 1 / 30/ 34 wire systems. ^he United States must rely on her radio communica¬ tion with the fleet and merchant marine, ''The British merger of her cable and radio companies has not been a financial success'1 , the Committee reports, "More serious than this, the radio companies which joined the merger appear to hare suffered disproportionately due to the fact that the cable interests have been protected io the disadvantage of radio,, The technical development of radio in the United States, where it is not merged with cable and wire interests, stands ahead of that of Great Britain and to sacrifice this position would be a serious mistake." The subject of rates is one properly for consideration and control by the proposed Communications Commission, the Com¬ mittee believes. There stand out in the Interdepartmental Committee's study the following: (1) Continuation of private ownership andoperation of communications ; (2) Government regulation of such ownership and operation by one agency, whether an independent commission or a bureau in an executive department; (3) Some further extension of permission to merge existing companies under the supervision of a regulatory body; and (4) A disagreement as to the extent of the elimination of competition. A supplementary statement which David Sarnoff made to President Roosevelt with regard to the communications situation was appended to the Interdepartmental report when the President transmitted it to Senator Dill, Chairman of the Interstate Com¬ merce Committee. However, Mr. Sarnoff 's statement was not includ¬ ed when the report was printed by the Senate Interstate Commerce Committee. X X X X X X X X 11 FALSE" , SAYS MULLEN OF LOBBYIST CHARGE There was a quick denial on the part of Arthur F, Mullen. Democratic National Committeeman from Nebraska, of an allegation made by Dwight Griswold, of the same State, that Mullen, a con¬ spicuous Roosevelt campaign supporter, was employed as a Radio Corporation lawyer and lobbyist after he had secured the appoint¬ ment of his law partner, James H. Hanley, of Omaha, as a member of the Fedei’al Radio Commission* Griswold, a Republican, sought the nomination as Governor of Nebraska. 4 yy;j .'oox : : 'fiO oi oo v\( .1 ' ;r f.' v.p.r, ■•■I'' i . • i. ■> -■ -1 -I ;r r *f"T ■ > i» : I . • : 0 " ■ • iO ! i : ; r. ■v vr, ■'& . £y *V . -A , ... 4 *< J -J ^ •» Jr-. ’ > * ■■ Jr. ■ ' J0 , ' •-•v.V- ■V A' !■ A '* Ar r if : .v ■>v-> ■ Ar,-, ';:^A f' V: .-. V 'iv. " ■ ■ ' ; ... : 'C O.-. ■ -) . " .'J • j'; • • 7 : . ./ - ?- • ••• -• t • V 1. - " • •• ; ■ •' • •' r ■ V fv:rl . . i •'■4 ' c. >0 • • i • -’Q Vv- .. °--A, . •'-A,-. : m ■ /• ■ ; V; ■^,A." A' AA. .. ' J {" - ' •• -_v Jr 1/ 30 ;34 This seems to be borne out by the fact that the week¬ end before last nearly 5 ,,000 persons went through the NBC head¬ quarters in New York City, On Saturday, 2,138 made the tour, and the following Sunday 2,433, making a two-day total of 4,576." At the 40 cent admission charge, this would have been SI, 830.40* "Of course all these didn't pay" , the Yfashington observer remarked. "Advertising clients and their friends and others were admitted free* Nevertheless the paid admission requirement is proving to be a check on. the crowds and one which I believe is quite necessary." It has been estimated from another source that the aggregate attendance at the radio broadcasts in New York City are now something like 20,000 to 25,000 a week* XXXXXXXX ALLEGES ROOSEVELT SHUT OFF IN CAMPAIGN Writing in the February issue of the Forum magazine under the caption, "Radio Needs A Revolution", Eddie Dowling, recently appointed Government representative on the Broadcasters1 Code Authority makes several charges against broadcast ers . "I was not able to forget that those behind the scenes in radio had been distinctly unfriendly to Mr. Roosevelt through¬ out the campaign" , Dowling writes. "Twice he was shut off the air in the midst of an address. Democratic campaign songs and the efforts of stage and screen sources on behalf of the Democratic Party were treated with marked contempt. Political commentators allied with the networks were strong in support of another candi¬ date; peculiarly enough the radio monopoly had been erected and barricaded through three Republican administrations. "Late in the campaign,, in fact, but a few days before election, the networks decided the country was to Have a new president,.. A new policy came into existence... I (Dowling) was offered a vice presidency with a prominent radio chain, profitable contracts on sponsored programs." XXXXXXXX PRESIDENT PRESENTS 2ND DIVISION MEDALS Gen. James G. Harbord, Gen. Omar Bundy, and Gen. John A. Lejeune were presented 2nd Division medals by the President. Mr. Roosevelt told the Generals he regarded the 2nd Division as his own. He reviewed this division in France when Assistant Secretary of the Navy. X X X X X X X 6 1/30/34 SAYS RADIO-CABLE COMPETITION SAVED PEOPLE $10,000,000 Reductions in cable rates caused by radio competition saved the public at least $10,000,000 in the past ten years, Senator C. C. Dill, Chairman of the Interstate Commerce Committee, told the American section of the International Committee on Radio* Senator Dill, apparently opposing the proposed RCA- I.T. & T. -Western Union merger at the present time, said he believed it was the first business of Congress to set up a Com¬ munications Commission and that the matter of mergers could be attended to later. The Senator said he wouldn’t want to be understood as being opposed to all mergers but in his opinion the easiest way to control rates was by competition between cable and radio. The speaker believed it might be possible to control rates by a Communications Commission within this country but did not think a Commission could control rates at the other end of an international circuit. He thought competition took care of that automatically but that a Commission would have trouble in regu¬ lating it. Senator Dill paid tribute to the Radio Corporation of America for what he said was their effective work in competition with cables. Representative Bland, of Virginia, Chairman of the House Committee on Merchant Marine and Radio praised the work of Judge E. 0. Sykes, Chairman of the American delegation at Mexico City. He spoke of the satisfactory manner in which the Judge con¬ ducted things at the Conference. Dr. C. B. Jolliffe, Chief Engi¬ neer at the Radio Commission, also gave some first hand impressions of the Mexican Conference. A slate of officers proposed by Lynne M. Lamm, Chairman of the Nominating Committee of the American Section of the Inter¬ national Committee was elected as follows: Senator Wallace White, of Maine* re-elected President; John V/. G-uider, Vice-President; Howard S. LeRoy, Treasurer, and Paul M. Segal, Secretary. Also the following Executive Committee: William R. Vallance, State Department; A. L. Ashby, National Broadcasting Company; Col. Thad H. Brown, Federal Radio Commissioner; Dr, J. H. Dellinger, of the Bureau of Standards; F. P. Guthrie, Radio Corporation of America, and Henry Adams Bellows, of the Columbia Broadcasting System. XXXXXXXX DON LEE APPEALS DECISION FAVORING HEARST Don Lee, of the Don Lee Broadcasting System of Redlands, Cal., filed an appeal in the District Court against the decision of the Federal Radio Commission denying his application for a new station to o|Erate on 780 kilocycle frequency with 500 watts power to take over the facilities of Station XTM, Los Angeles, and KELW , at Burbank, Cal. The Commission granted a renewal of license to these stations and also authority to voluntarily assign the sta¬ tion licenses to the Evening Herald Publishing Co., of Los Angeles, a Hearst paper. In sanctioning the transfer of the stations to the Herald, the Commission reversed the recommendation of a Commission Examiner who had heard the case. XXXXXXXX 7 o 1/30/34 EQUITY OFFERS RADIO CODE PROPOSALS The Actors5 Equity Association has presented, the follow¬ ing proposals as the basic conditions of employment of radio tal¬ ent : Minimum wages for Artists engaged for and participating in the performance of rad.io programs shall be at the following rates: (a) Live Programs: FOR CLASS "A" Programs: Sustaining, Minimum Wage, $20 per performance; Commercial, $40 per performance. Class |:A" Programs are those broadcast after 6 o'clock in the evening over a chain of not less than five stations for a single performance. Class "A11 Programs are also those single broadcasts given after 6 P„M. from a single station whose charges are based upon an advertising card rate of $400 or over, per evening hour. Morning and afternoon programs, minimum rate, sustaining, $12.50 per performance: com¬ mercial, $35 per performance. FOR CLASS "B" PROG-RAMS: Sustaining, $12.50 per performance; Commercial, $25 per performance. Class "B" programs are those taking place in the morning or afternoon over a chain of not less than five stations for a single broadcast. Class "B" Programs are also those given after six o'clock in the evening over a single station whose charges are based upon an advertising card rate of $280 and under $400 per evening hour. Morning and afternoon pro¬ grams; Sustaining, $10 per performance; Commercial, $15 per per¬ formance. FOR CLASS "C” PROGRAMS'; Sustaining, $10 per performance; Commercial, $15 per performance. Class "C" Programs are those broadcast after 6 o'clock in the evening from a single station whose charges are based on an advertising card rate of over $100 and under $250 per evening hour. Morning and afternoon programs: Sustaining, $7.50 per performance; Commercial $12.50 per performanc It is recognized that there are many smaller stations but as these rarely employ professional talent, i.e. artists who make their living out of radio performances, no regulations are made regarding them. Including rehearsia, a performance shall constitute 5^ hours. Overtime shall be at the rate of half-pay for each 3 hours or part thereof. One-half of the wage scale shall be paid for 11 repeat" performances on the air following within 12 hours of the original performance. An artist "doubling" roles containing more than 50 words is to be paid at least one-half the minimum wage for each role "doubled" It shall be unfair practice for any employment agent artists' Bureau or others to charge the artist more than 10% net for securing employment for the artist. Artists called to the studio at the schedule time of the broadcasting, or to the dress rehearsal immediately prior thereto, and who report ready for per¬ formance are to be paid, whether or not they go on the air. (Continued on page 10) - 8 - 1/30/34 c : BUSINESS LETTER NOTES Members of Congress have been hearing from home as a result of Will Rogers, allegedly, using the word "nigger" in his broadcast last week. Likewise, it is said that many radio sta¬ tions received protests on thisc "Radio circles hear that the mos.t extensive radio set-up yet devised is being planned for Central India. The idea is to build small stations to serve 600,000 Indian villages" , James McMullin writes in the McClure Newspaper Syndicate. "Each village will have a community receiving set and the inhabitants will be called on for contributions to make it self-supporting. Scientifi : agriculture will be taught in 200 dialects. "The real purpose of this development is believed to be political. Russia is upset about it because her useful Middle Asia broadcasting station at Tashkent will probably be drowned out . 11 "A new modernistic radio console, just produced by Atwater Kent, has taken its place in contemporary straight line severity with square end pianos, vertical drapes, and steel- structure houses", according to Thomas R. Shipp, A-K publicist. "The Atwater Kent radio cabinet stylists, brushing saide previously orthodox model trends, ventured into a new field to produce the straight grain walnut set, with short silver metal stripes and silver-tipped dial knobs. An autumn brown tapestry spread ofmodern weave encloses the lower panel. The ensemble created is a very creditable addition to, and complete harmonizing unit with, the most fastidiously furnished 1933-34 type of smart American home, studio, or apartment." Those who are protesting against the raise in radio and cable rates to foreign countries may be in for a jolt, according to the comments of a radio official. "The radio companies had nothing to do with the raise in rates", he said. "The rates were fixed by the Madrid Confer¬ ence and the Radio Corporation of America fought it. However, far from the rates being reduced at this time, it wouldn’t sur¬ prise me to see them increased because of the 60 cent dollar. The rates fixed at the International Conference were based upon gold and it wouldn’t be improbable that the drop taken by the American dollar would cause another raise all along the line. 9 j: 'j 3 V V,'i 3 0 O' 1 1' 3. iO " 0 O: ■j -■sow oat o: ; , " i , : x r -• O' r" * ■ f c - VSTv r . * - .0 .• ;• J, 3B ::: no no: . e •r : / -v * ;■ : : ■ • j . & : ■ • ' a • ; i i ■ .. i..l - ,'v : ' 0 ' .D ' v -: ;; onno O \. ■ ■- •; i :.i 7 : • ' • ., o o ,r ■' . . V ■ : •" , . j .... ■ ;/ ?■;; ;■ ;i i; : o' i orsoq ■ :■ . :>i: -n ziq 0 1 ■ : ■-.£?;-£ ■■ ■.■ „ no • . ; ••••..I. : - : ' ; . . . « oc:un:.0 ./ r: t . -;.t ■ V: ' !i ' i? w "l • ? • *■ ■ -• ‘ A-' j. . . 1’ „ ?’> * •; \ i &*yi c ' / -j i V. 1/30/34 Gene Buck, President of the American Society Com¬ posers, and Mrs. Buck were among the guests at the dinner given by Vice-President and Mrs. Garner to President and Mrs. Roosevelt "Radio has the power to develop an enormous new public for music, always provided it recognizes this need, and does not warp it by pampering to the lower musical instincts", Walter Damrosch said on his 72nd birthday. Mr. Damrosch added that at present the musical population of a great city like New York might be rated at lfo of the population. A financial report of the Crosley Radio Corporation for nine months ending December 31, shows the following; Net profit after depreciation. Federal taxes, royalties and other charges, $344,452, equal to 63 cents a share on 545,800 no-par capital shares, contrasted with net loss of $255,231 in corresponding period of previous year. Quarter ended Dec. 31: Net profit after same charges, $175,647, equal to 32 cents a share compared with $64,894, or 12 cents a chare in preceding quarter, and $45,469, or 8 cents a share, in fourth quarter of 1932. The National Broadcasting Company, through its Sales Promotion Department, reports a total of 76,641 hours and 17 minutes of commercia.1 station hours over its 87 network stations for the year 1933. This is at the rate of 2 hours. 39 minutes commercial network time per outlet per day - "Considerably more than twice the average of any competing network." XXXXXXXX EQUITY OFFERS RADIO CODE PROPOSALS (Continued from Page 8) All "Live" auditions given for a prospective program buyer are to be paid for by the prospective buyer, the basis for such compensation being one-half the minimum wage for commercial performance for artists participating in said program. Recordings may be made of such "Live1 Auditions by or at the expense of the program producer, the future use of such recordings being restricted as follows: Every prospective advertising sponsor shall be required to pay to listen to any recorded radio program and the fee therefor shall be the basis of compensation at one-half the minimum wage for commercial performances for artists anticipating in said program when broad¬ cast, XXXXXXXX 10 • / ' • • * 5- '■ v : '• * ■:* ■ V - 1 " \ : - •' • . ■ V. . i,; ..i.. iv 4 l c • i : l-S'l ‘ 0. ■ - A. . >j; : L & : ' • . :: \ 3 ■ ■ ' ;i $ - . ' : \ - •' P."< •' . ' ■: j , - < ...• te I;. ii ' ‘ r ' . , ” . S ' ^ ' ■ * ' ’ '■ : . . f . . . • - ' ';.c ■ .... /-■■■ 1 'P? -i v; 'Vi. . . ':v,aA ■ ■ ■ ; .. : •: f51 £ ; .• ... . ' • '*•••:•: ■■■ ■ ' ; ■ ■ ' v 1 ' x ■ - ■. . . / - • ■ , • '• £■ i ‘X-J - • ■ - ■ V ' . ' .■ 1/30/34 AGREEMENT NEAR ON RADIO-PRESS PLAN DISCUSSION Adoption of the 10-point plan of the broadcasters and publishers to regulate the broadcasting of news seems at this writing to be assured. The plan has been under discussion at several meetings in New York of the broadcasters and publishers. Apparently few changes have been made in the original draft. XXXXXXXX ENGLISH CHANNEL MICRO -RAY SERVICE Micro-ray service, revolutionary radio development of the International Telephone and Telegraph System which makes use of one-inch aerials and radiates less power than is required to light a pocket flashlight, was commercially inaugurated for the first time last Friday, connecting the airdromes at Lympne, England, and St. Inglevert, France. The two airdromes are about 35 miles apart, and the micro-ray radio service was established between them, through cooperation of the British and French air ministries, to be used for notifying the arrival and departure of aircraft crossing the English Channel. Operating on a wavelength of approximately seven inches where there is no congestion, the commercial adaptation of micro¬ ray is considered as heralding a new era in which practical advantages of the system, first tested in 1931, will be fully exploited. Practical advantages are listed as privacy, efficiency and reliability. Direct, uninterrupted communication is said to be provided free from the possibility of interference and atmospherics . X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION January 30 - WEHC , Americus Broadcast Corp. , Americus, Ga. , authority to remain silent for 30 Cays penning construction; KUSD, University of South Dakota, Vermillion, South Dakota, author¬ ity to operate from 10:30 A.M. to 12 noon Feb. 6ch, in order to broadcast intercollegiate debate (involves simultaneous operation with WILL 10:30 to 11 A.M. ); WBBM, WBBM Broadcasting Corp., Chic¬ ago, Ill., special experimental authority to extend authority to operate synchronously with KFAB 3/7 nighttime specified hours; el so to operate auxiliary transmitter in the same manner; KFAB, KFAB Broadcasting Corp. , Lincoln, Neb. , same with WBBM, except not for auxiliary; WHBU , Anderson Broadcasting Corp., Anderson, Ind. , authority to remain silent during adjustment and reconstruction of 11 ::: i.u:i i ; ■. . - ,M •. . ; / V/iti C i .%z,t r; ■ •. ilc • " . .. ; _L ' . . 7 ■ ■ 0 3 : ; -bn/* 3 i. W >;>■:> - - ' ^ >$J ' ■ :• i.’-'.t...' ■- .r V-: , v, ” . • - :*"r r ■ ;• - .in: U ■ fik; : ;fpi s %j: ‘ . I y ■ ■ , ' ■ '■ ;1 ■' : ' ■ ! :i i : . Z. 0 i T ' t ■■ l’ ' • . . ’ J.i-aV X T’ w 7 ; .. •. 7- j/m i\: v ./ I ' ■ , 7 : ' ,i . ... :u' ■ : ' •* k . . t. 1/30/34 station destroyed, by fire, pending filing and action on formal application for C.P.; WHP, WHP, Inc., Harrisburg, Pa., extension of special experimental authority expiring Feb, 1 , 1934, to oper¬ ate unlimited time night, specified hours day, with WCAH. WFEA, WOKO and WHEC on 1430 kc. , pending action on formal application for period ending May 1, 1934; WCAH, Commercial Radio Service Co,, Columbus, Ohio, same as above except operate with stations WHP, WOKO, WHEC and WFEA; WOKO, WOKO, Inc., Albany, N. Y. , some as above, except operation with stations WHP, WCAH, WFEA and WHEC: WHEC, WHEC, Inc., Rochester, N. Y., same as above except operation with stations WOKO, WHP, WCAP and WFEA. Also, WAGM . Aroostook Broadcasting Corp. , Presque Isle, Maine, special temporary authority to operate specified hours Jan. 30; WMBH ; W. M. Robertson, Joplin, Mo., special temp, author¬ ity to operate specified hours Jan. 30; WJBK, James F0 Hopkins, Inc., Detroit, Mich., special temporary authority to operate specified hours Feb. 1, 4, 6, 8, 11, 15, 18, 22, 25 and 27, 1934 in order to broadcast hockey games provided WIBM remains silent; KG-FK. Red River Broadcasting Co. , Inc. , Moorhead, Minn. , C.P. to move transmitter and studio from Moorhead to Duluth, Minn. ; WHBL , Press Publishing Co., Sheboygan, Wis., C.P. to make changes in equipment from high to low level modulation; KDKA, Westinghouse Electric and Manufacturing Co. , Pittsburgh, Pa. , license covering changes in equipment, 980 kc. , 50 KW, unlimited time; WHAS, The Courier-Journal Co. , and the Louisville Times Co. , Louisville, Ky., license covering changes in equipment anqlncrease in power. 820 kc. , 50 KW, unlimited time; KGKB, East Texas Broadcasting Co.. Tyler, Tex., license covering local move of station and changes in equipment 1500 kc., 100 watts, specified hours; WMBR , F. J. Reynolds, Inc., Jacksonville, Fla., license covering move of sta¬ tion from Tampa to Jacksonville, Fla., 1370 kc., 100 watts, unlim¬ ited time. Also, WCAE, WCAE, Inc., Pittsburgh, Pa. , modification of C.P. extending completion date from 2/1/34 to 3/1/34; WPEN , WRAX , Wm. Penn Broadcasting Co. , WRAX Broadcasting Co. , Philadelphia, Pa. , modification of C.P. to change transmitter and studio loca¬ tions locally in Philadelphia.- extend commencement date to 30 days from this date, and completion date to June 1, 1934; WHN , Marcus Loew Booking Agency, New York City., and "/GY, General Electric Co,. Schenectady , N. Y. , authority to determine operating power by direct measurement of antenna power; WBAL, Consolidated Gas Electric Light & Power Co., of Baltimore. Md. , extension of special experimental authority to synchronize with WJZ on 760 kc., 2^ KW, when WTIC operates on 1030 until 8/1/34; KXA, American Radio Telephone Co., Seattle, Wash., extension of special experi¬ mental authority to operate simultaneously with WJZ, from local sunset to 10 P.M. PST, using 250 watt experimentally, for period Feb. 1, 1934 to Aug. 1, 1934. Also, Aeronautical Radio, Inc., Vero Beach, Fla., C.P. frequencies 2922, 2946, 2986, 4122.5, 5652.5 kc, , 15 watts; KGZR, City of Salem, Dept, of Police, Salem, Ore., C.P. to rebuild modulator unit and increase power from 25 to 50 watts; City of Muncie, Ind. C.P. 2442 kc., 100 watts, police service. X X X X X X X X - 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDE NTIA L — Not for Publication 4 INDEX TO ISSUE OF FEBRUARY 2, 1934. Harbord Mentioned Among Presidential Candidates . .2 Declares Administration Uses Radio For Propaganda . 3 Government Misses It A Mile On Radio Tax Estimate . 4 Commission Passes The Buck Re Hard Liquor Advertising . 5 Commends Plain Language Of President's Broadcasts. Radio Ship Operators Take Exception To Cooks’ Higher Pay . NBC Washington Executive Loses Mother And Father . Broadcasters’ Code Meeting Postponed . Presidential Birthday Summons Don't Save Doherty . . Roosevelt Contemplates Broadcasting Survey . Telephone, Telegraph and Radio Office All In One - Maybe.. Business Letter Notes. . . . 9 Decisions Of The Federal Radio Commission . 10 No. 694 CD CD CD !> C- 00 00 February 2, 1934* HARBORD MENTIONED AMONG PRESIDENTIAL CANDIDATES Although the next Presidential campaign is a long way off, numerous names of possible Republican candidates have been mentioned following the Kansas speech of Ogden Mills, among them being that of Gen0 James C. Harbord, Chairman of the Radio Corpora¬ tion of America, One school of thought was that if Mr, Mills were himself a candidate that he had tipped his hand too early, that he might thus become a common target and as a result a dark horse might walk away with the nomination. Other observers seemed to believe that it was a wise thing for Mills to speak out in plenty of time in order to serve notice on others not to run against him. However that may be, the Mills' speech caused attention to be focused on possible Republican candidates and among those spoken of were Representative Wadsworth, of New York. Representa¬ tive Bert Snell, of New York, Senator McNary, of Oregon, former Senator Walter E. Edge, former Secretary Patrick J. Hurley, and General Harbord. The mention of the General is, of course, of special interest to the radio industry where no doubt he would receive strong support. It will be recalled that General Harbord has previously been considered for the Presidency and at the last Republican convention was formally nominated for Vice-President, receiving 161 votes on the first ballot, but gave way to Vice- President Curtis in order to make the renomination of the latter unanimous. General Harbord was born in 1866, and at the time of the next Presidential election will be 70 years old. Although at the moment a resident of New York, he is a native son of Illinois. He enlisted in the Army as a private, was Chief of Staff to General Pershing in France, and commanded the Marine Brigade at Chateau Thierry. General Harbord has always been an outspoken Republican, was President of the National Republican Club in New York, and campaigned vigorously for Mayor Fiorella H. La Guardia of New York. The last named effort, coupled with the rapide rise of LaGuardia, and already the mantion of his name as a possibility for the Republican Vice-Presidential candidate has brought forth the sug¬ gestion of a ticket headed by Harbord and LaGuardia. If General Harbord could be considered as from his native heath of Illinois instead of New York, the combination would be satisfactory from a geographical standpoint. General Harbord is conservative, and is regular politically. LaGuardia is a Progressive and without any distinct political affiliations. Such a ticket as this would be calculated to carry the soldier vote as Major LaGuardia likewise is a veteran of the World War. XXXXXXXX - 2 - 2/2/54 DECLARES ADMINISTRATION USES RADIO FOR PROPAGANDA Representative McFadden, of Pennsylvania, Republican, accusing the Administration of using the radio for its own pur¬ poses, called attention of the House to the fact that a resolu¬ tion he introduced in the last Congress to investigate radio broadcasting is still alive* "No attention will be paid to it unless it has Presidential approval. Will the Administration get Presidential approval of this?” the Pennsylvania Representative asked. "No member of this House who reads his mail can say that there is no public demand for a radio investigation. You all knew there is, and you all know that the radio situation should be dealt with by Congress and that without delay." Representative McFadden declared that censorship, propaganda and censorship are practiced by the Administration in the name of emergency. "Particularly is this true of radio", Representative McFadden declared. "Sometime ago the Columbia Broadcasting Co. announced its intention to furnish to its listeners a daily news service. The company employed several Washington news¬ papermen and established a news bureau which has paid particular attention to proceedings in both Houses of Congress. It has been their custom to broadcast this news at a certain hour each even¬ ing. Last Saturday evening (Jan. 27). Mr. Farley, who in his one person combines the functions of the Warwick and the Sancho Panza of this administration, appeared at a political rally in Boston, Mass. He desired that his remarks on that occasion be put upon the air. The Columbia Broadcasting Co. canceled its news service for the evening, gave its local news-gathering employees a holiday, and gave the news period to Mr. Farley for his remarks. Either they valued their news service too little or the words of Mr. Farley too much. A news service that has to make way for propaganda is not an independent news service, nor can its professed ‘news* be given any serious consideration." Mr. McFadden referred to Herbert L. Pettey, Secretary of the Radio Commission being assigned by Postmaster General Farley to secure free time for the Democratic National Committee and to "revise and censor" speeches of the Committeemen. Also to the allegation of Alderman Richard L. Saunders of Rochester, N. Y. that he had been ruled off the air for criticism of Farley. "The newspaper is bound by what it says and makes no effort to avoid that responsibility", Mr. McFadden went on. "Radio, on the other hand, is limited to the spoken word, heard but once and nowhere upon record. Many times I have sought to obtain from radio stations transcripts of statements that have been made to their listeners through their facilities. Sometimes I have been successful in securing such transcripts. 3 ' - )..'X e 0 '■> O/y0; - .ti: j’J A.AiO: ■ 00 f l.r iUji-XXO:? d'Ai A v! " ;io f tsr. 0 a x. : A ; .Miii'Vc ■.!. 5. « Q 'i yj'jJo US J . ..4. ; •J.. •.- ov ...A ; .L ."l.O v .f. V A: • ; . A. .. ' ••. ' j " V A ' ■>J ■ ;* . ‘ • i . ■: ■ i ?a.\ ,f >: U .00 A , *•' 3JU(ih ■■ ■ -C ■ l ■’ ’ .. ; ? V‘ ’ A:- .A; -'A ./ r:.|: o.L;..o,i, a 00/' itifiti.fi j].; o . 'TO i ' bji c .A, - 1. A : ! v OOAOO L" O :• Li A j > ' 'X/iJ ■: .Vi : • ;? 1 y o- ■ Ao : ; 0 -a. o; i ;r . A ■' "1:00 Jj o A v Tp},l jv ; a:; ;i;3 a .... A-; v;\- Yt z A pis'tohxtfa '^;.n - A . . v . ■; ;VT • ,0:Or ' • .j f VJJ r\i ; 3‘XO iOC/A A'. i 0,-/0 ' A IAi 'v . 0 J.. AO A; a o : Aooaao oaao SA . ■ A.00 A -;AJ O' .. ' A. 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I •"'O'. ! 2/2/34 More often I have not been so successful - and. the latter instances often occurred in cases where the reported accounts of what had been said implied a legal responsibility on the part of the radio station. ’’Radio is a sort of mechanical back-fence gossip, utilizing the poisoned word, the slighting accent, the sarcastic tone and all those shades of meaning which are so much more available in appealing to the ear than in appealing to the eye* Added to its greater versatility of expression, it has the additional advantage of being able to avoid responsibility for what it says. It now seeks to have itself accepted on a. par with newspapers as a medium for the dissemination of public informa¬ tion. "Withal it takes its news responsibilities so lightly that it is willing to discard them to win the pleasure of anyone who holds a position of political power." Representative McFadden is the Republican who attempted to have President Hoover impeached and as a result was punished by the House Republicans by depriving him of his Committee assignments and refusing to recognize him on the floor. XXXXXXXX GOVERNMENT MISSES IT A MILE ON RADIO TAX ESTIMATE If the Treasury is as far off in its other income tax calculations as it was in the matter of radio, the Administra¬ tion is liable to come out at the little end of the horn. The Treasury estimated that at least $11,000,000 annually would be received from the 5 '(jo radio tax but the total radio and phono¬ graph taxes collected in 1933 were but $2,596,612. Paul B. Klugh and Bond Geddes of the Radio Manu¬ facturers’ Association, however, protested against any increase in the radio tax which in the new tax bill reported to the House remains the same. This tax indicated that radio sales had increased 45§- percent in December, and one-third in 1933. Collections for December were $570,629 as against $392,204 for the similar month of 1932. Excise tax collections on mechanical refriger¬ ators last December totaled $127,186, against $103,344 in December, 1932. X X X X X X 4 3/2/34 COMMISSION PASSES THE BUCK RE HARD LIQUOR ADVERTISING As predicted, here two weeks ago, the Federal Radio Com¬ mission has failed to take a definite stand with regard to the advertising of hard, liquor. Their advice to stations who are carrying or expect to carry this class of advertising is in effect "Let your conscience be your guide," The Commission has issued the following statement; "The Federal Radio Commission calls renewed attention to broadcasters and advertisers to that Section of the Radio Act of 1927 which provides that stations are licensed only when their operation will serve public interest, convenience and necessity ? and asks the intelligent cooperation of both groups in so far as liquor advertising is concerned. "Although the 18th Amendment to the Constitution of the United States has been repealed by the 21st and so far as the Federal G-overnment is concerned there is no liquor prohibixion, it is well known that millions of listeners throughout the United States do not use intoxicating liquors and many children of both users and non-users are part of the listening public. The Com¬ mission asks the broadcasters and advertisers to bear this in mind. "The Commission will designate for hearing the renewal applications of all stations unmindful of the foregoing and they will be required to make a showing that their continued operation will serve public interest, convenience and necessity." Having thus expressed themselves, the Commission will evidently wait for complaints from listeners, if any, and then act upon the complaints when the license of the station in question comes up for consideration. The liquor question has been before the Commission ever since the repeal of the 18th Amendment, and in the meantime they have refused to advise stations as to whether or not they would be permitted to broadcast hard liquor advertising. Evidently the decision of Station WOR, in Newark, to carry a distillery adver¬ tisement spurred the Commission into action. This program the Commission was told would be prefaced by the following announce¬ ment : "Those listening in from dry States may now tune out this station, for the next program is not intended to offer alcoholic beverages for sale or delivery in any State or community wherein the advertising, sale or use thereof is unlawful." It is believed whatever action, if any, is taken against WOR by the Commission will depend upon whether or not there are sufficient complaints from listeners to justify such a course. XXXXXXXX 5 2/2/34 COMMENDS PLAIN LANGUAGE OF PRESIDENT'S BROADCASTS In approaching the individual with the spiritual message, the Church might learn a lesson from President Roose¬ velts talks over the radio, Joseph H. Appel, of John Wanamaker ' s , New York, writes in his new book, "Man Proposes" (Fleming H. Revell Company, New York). "The President talks in plain, simple language to each individual listening in, and thus leads the masses to concerted action", Mr. Appel continues. "Each individual feels that he is receiving a personal message of helpfulness, "And what is President Roosevelts theme? It is expressed in one word: happiness. He is trying to make the people happy through a new social and economic order." X X X X X X X RADIO SHIP OPERATORS TAKE EXCEPTION TO COOKS : HIGHER PAY Union radio operators demanded as high as $200 a month at the hearing of the revised Shipping Code. A stipulation of $75 a month had been provided for in the Code. At a previous Code hearing the radio operators pointed to the fact that a ships cook was allowed $100 a month and that certainly a radio operators services on a ship were worth more than that of a cook. X X X X X X NBC WASHINGTON EXECUTIVE LOSES MOTHER AND FATHER Within a little over a month, Kenneth H. Berkeley, NBC Manager in Washington of Stations WRC and WMAL, has had the mis¬ fortune to lose both his mother and father. The latter, Charles H. Berkeley, died in Washington of a heart attack December 23rd. His widow, Mrs. Aimee Louise Berkeley, passed away January 31st. Mrs. Berkeley, who was a native of the District of Columbia, was 55 years old and had lived in Washington all her life. Surviving, in addition to Kenneth H. Berkeley, is another son, Byron H. Berkeley, of St. Louis. Mrs. Berkeley was buried beside her husband in Congressional Cemetery, February 2nd in Washington. X X X X X X X 6 i.;v. - -- j -.;.' AoAn ; s .i!fi ; AT a oAO oo b A •• . ;OC5: r.i . ; . no i .'O' -v. i. or oA' r A A a Ao in:.; . .T t • . . ■.v '-'w a/lOb V.: ;.A.X:.,A .A X • ' . • A - - 'A, v ' • • ■ • : X 'A. • ' t i « : o "i :: 0X0 .Ac ci a.. A; . : . t r. • • i-J * i :i' 0: •' . .i‘ - r ‘ V • . v x .o.i'/Uq o: J oX A iOI o b-isi i .a i: or; .A'o.:-'." ; . : •• r AXr-ohx.: aXO-AxA AAqAA - • • '-oo . n- A ' i oAnA Ac ■ >':V< Xsycvo^' ■'/ v'.t. ?’ -v •- J A '.h .•r.r'Uri T XX X A or J vr i •' .. • : ; o.;: .. ■oorXqx.oX : :.vs.®r xrx i. • ..o vi oj oA; . .00: Jo Axe 0 .x: ore or O' V" 0? AOI lAAD/X • A : axo:;:mHO Aron - .o o o'..:. ...* ...; • •• ..--b on oxoi OX' e i o o oo 'i 0 : ; X..; A ? ". .. of -A'; ;i.A:. .A o: .Ar r i A; o - rj\ ' • A A • ox co ; -a • O ;• or ‘O . .-AO ‘'DO'; •, '. } o • A.-': ■ ... n ; ; r On, o : O AT. OO 0 tp O D, : -■ A i .A- ■: . ■ ■. J. ....... buii .Ao'i d'.. o ■-''■A; A ;/AoI f o k.o: ,r. a: . o.;. aat-..v oaov/ c a A . a 1 1 c • y.wo’tv'x . .... . . a.a v.; ’ " .; . . - l > 2/2/34 BROADCASTERS* CODE MEETING- POSTPONED A meeting of the Broadcasting Industry Code Authority which was to have been held in New York, January 31st, has been postponed until Wednesday and Thursday , February 7 and 8„ This will have to do with the status of radio performers and to determine whether they should be included in the wage and labor provisions of the Code. The meeting will mark the first official appearance of Eddie Dowling, comedian, recently appoint¬ ed as a governmental member of the Code Authority, Frank hill- more, President of the Actors* Equity Association, will attend X X X X X X X PRESIDENTIAL BIRTHDAY SUMMONS DON'T SAVE DOHERTY That even a President's birthday can't stop the process servers was demonstrated as Henry L. Doherty was served with papers in three suits by a Deputy Marshal just before he stepped to a microphone to introduce President Roosevelt to his nation¬ wide radio audience. Doherty, National Chairman of the President's birthday party celebration, was named defendant in suits filed last July in District Supreme Court. A Deputy Marshal, who had been unable to secure service earlier, served the papers on Doherty in the Shorehara Hotel, Washington, shortly before he descended to the ball room for the celebration. The suits, aggregating about $18,000 were filed in behalf of the local manager and employees of Doherty’s Cities Service Securities Company. Also Doherty encountered legal difficulties in New York. After his attorneys had argued for another adjournment of trial on the ground that their client was suffering from arthritis in Florida, counsel for the plaintiff presented an affidavit purport¬ ing to show that Mr. Doherty had broadcast an appeal in behalf of President Roosevelt's birthday observance over a New York radio station the Sunday before the birthday. The action was brought by Kenyon B. Conger, of Irvington on-Hudson for $138,750 alleged to be due him for services in con¬ nection with the management of Mr. Doherty's Manhattan real estate Mr. Conger said he was listening to a broadcast over Station WABC when he heard Mr. Doherty. He telephoned the radio station and complimented the officials on the clear reproduction of the Chairman’s voice, whereupon the officials informed him that he had been listening to Mr. Doherty broadcasting from New York. In his plea in behalf of the adjournment, Watson B. Robinson, attorney for Mr. Doherty, stated in affidavits that his client had suffered seriously from arthritis and that "it would be a detriment to the public" if Mr. Doherty had to abandon his work in Florida in connection with the President's birthday party to go to New York to testify. V 7 ... L ' T ■ ' ' , -1 .. - : U • i XX • ■■ ‘ },! i . I ■ ■ ■ .• " / | ; r . . > , • : :.cn ' i f : .. • 2/2/34 ROOSEVELT CONTEMPLATES BROADCASTING SURVEY Although the scope has not as yet been determined, it has been learned that President Roosevelt has no w called upon Secretary Roper for a study of the broadcasting situation along the lines of the Communications survey just completed by the Interdepartmental Committee. It is assumed that additional broadcasting legislation will be based upon the survey « There is hardly any probability, however, that such legislation will be formulated during this session of Congress. At the most, it is not believed the present Congress will do more than to create a Communications Commission. If the session is to last only a month or so longer, as predicted by Speaker Rainey, it might not even do that. XXXXXXXX TELEPHONE, TELEGRAPH AND RADIO OFFICE ALL IN ONE - MAYBE One of the possibilities of Communication Commission regulation will be the combining of the telephone and telegraph service to a much greater extent than it is now used, whereby telephone exchanges in all small towns will become in effect tele¬ graph pick-up and delivery offices for both the radio and the wire and cable systems, Senator Dill told the American Section of the International Committee on Radio. I!lf we are to have mergers in the communication services they should be mergers that will maintain competit ion” , Senator Dill continued. !,The merger of the international radio services as against a merger of cables is far less objectionable than the merger proposed by the majority of the Communications Committee. If it be said, as some do say, that this would result in junking the cables, my reply is that the proposal for a complete merger becomes simply a plan to salvage the cables at public expense0 Any merger of domestic wire telegraph service now must necessarily be separated from the cables, else the international radio communi cations service will be without a pick-up and delivery service for its messages throughout the country. All of these complica¬ tions only emphasize the need of first creating a Communications Commission and having it study these merger problems, before legislating on the subject.” XXXXXXXX 8 }\ ■■ • .. ' • ■ v j. - ■' 1 . nc: •- • ■" :0 . '■ ;r : ;• j. ;y : !: ’ : ' ; n • •' 1 v V - - '■ "< • i : d ■r^didcd;:, A A A* , .. ■. v-r. ; .di: : •v . • f< I , i: ;■ C ''' .i , , v . ;v . ..'7 : • • •• • "■ a 'y-7; 10X2% ;■ :{.0l £, ' ■ ■' V-d.i ij.'io i A sO 0 xC; ! ■ ; ;J;'X •:/ r y A j e .r n ;■ ■■ ■ . -■ ■ ' • • s/j ! d d. i; v no ■: ..:j; a ■ . • •' » ) t i , y.a a 1' ■ a . i . a ; a- ".inix a) • :> . n ■ ■ ■■■ : ... ,s. T J ■ 1 .V, . ■ " • A- j. nsii ; r, V..i 7 0 A. Od A I l .. ; u v 7 : • o:. : . ■ . - . ?! A At O' dO- i :• ; ;l } . (<’ i’v) v, 3” i '.i’O A ; i ; .v . •. .. v: - i •*. -J j , c-,o . • '5:0 v: •; .O .07:-: :y ao • .V.i BUSINESS LETTER NOTES ; Mrs. Anne Morrow Lindbergh has been awarded the Hubbard gold medal by the National G-eographic Society for her brilliant accomplishments as radio operator, aerial navigator and co-pilot. It is the first time the medal has been awarded to a woman. Although television transmission is "ready to come out", receiving apparatus still is too expensive for mass distribution, Charles A. Wall of the National Broadcasting Company Treasurer's office said in New York. V/eather Bureau officials in Washington have announced that they hope to abandon the use of 13,000 miles of leased wires and use radio instead for carrying weather reports. The NRA hearing on the Electrical Manufacturing Code, which includes radio, is now scheduled to be held in Washington Thursday, February 80 Fair trade practices and labor provisions will be discussed. The public hearing of the Radio V/holesalers 1 Code has as yet not been set. A bill levying a five percent State tax in Kentucky on radio sales under $>100 and two per cent above, last week caused Bond G-eddes, of the Radio Manufacturers' Association to get out the old tomahawk. Also the proposal of Massachusetts to license all sets used in automobiles. A confidential note to editors by G-eorge Durno, of the McClure Newspaper Syndicate says: "The Food & Drug Administra¬ tion is willing to recede from the food quality standard clause in the new Copeland or Tugwell Bill unless there is a definite movement in favor of it. This represents their only voluntary trading point. Otherwise every effort will be made to enact the measure as it stands. Those who have worked hardest to draft it understand the President is standing squarely behind the bill and at the proper time will give it his official blessing." Col. Thad H. Brown, of the Federal Radio Commission, and Dr. C. B. Jolliffe, Chief Engineeer of the Commission, will be the guests of Station WCAE, Pittsburgh, at the dedication of the new transmitting equipment and will be heard briefly over the WEAF network at 11 p.m. EST Saturday, Feb. 10. XXXXXXXXXX 9 JOT i'; ■ /.: ■ oiuar.Lv : - . j >..! ; 7.;. vb.z-vx n i: fro.: ;k .ra-- ~.x:i noi'-i.- qu ■■ cl .. s ■ z c;i ? si : 1 v ; 7' ' ■ 7 7.0 : :> ' . • 1 • ;t r. < ;v .77: av? I .?. 3 ;l'IOY 77 .C-f . 77 O’, -j ' . 7: io Ld j. . O C i'l^O OJ VO :■ / \ ‘ 0. ; 70 77 '7/17. 7: .:-c :j 7 : 77 : . 7. .'7. 7. si : iOB'i 7 • > -i .7 a.: 7 ■ ■" ! . ! •• 7 o :•• C : 7 0 - r) ■. ' yy . ; _! . f ..■7 7 .. 7 'o : ■ Z ■■ ' 077 t .77 '■ 7 7 If: i . 77! ' 7. ’ . 77' c;.; Vfi; 7- 7,7.7 Of 7? 7 t 7 . 7" 7 ■. j . i 7. i •; 7 .7 ■ ! 7 7 it v 7.) j. i. 7 ; •' 0 •; % ; '777 7 " .7. . '..77 , 7 7/ . ' ! O . . 7.77.: 7 7. ■ * 7 • • - 7777 7 777:. 7.7'" 7 7 ' '.7 7777V.-/. -r . .77.7 1 ,77 : ,:7. 7; 7 Y 0.7 , toofi ,7; .7 ixXi'Zh 7 :7 7.1 v> 7 ' .7; 7 7 7: .7 .7,777; : :7,. .IS i". i,:. 77. jj-y 70 ■ 77 77 7: .7. . ‘77 7 : 7' 7 77',.. : 7. ,.7.7 ., ;7 77) •X,..V7i. ... ) 7 7' ' . 77 : ■ .'...7:.',' :7.y7.7 .7/ Y7, . , . . ,.7 . ■ 7 7. '' r ■ '7.7 '7 7' -j" ■■ ' 7 . ■/.. . . - 77 , . '& 7 , .. . ■ : ■, . ' ■ Ai .17; 7.:. 7 V;i 7 77 C> Iflt 7 ' 5 1 l i 7 7 . .7 7 . '"7 77 J - J .7:777 :'. I , 7 :; 7 .7/.; 7 i.; 77 . 7 7 7 : • - > • 7 "7 77 70''".' ■7 7 7.7 7 '/• 1 '7 0.7 7. ..-7 j I : t : ' '''■ ' »h .1.5 7' , .1 . 0. .. 7. :: - 7 7 . . . f.j ■ „ 7: ; . ■ ; . , . . ,i, 7 ,i : 7 : ; r-x ■■■ . ' ; -7 ; , , 7 •. t; ; . .7 ' _ . 7 Of. f ,7 ' :7:; ' '■ ' 7 7 7 » r V-' V >' •' i' 77 .77 7 7.7 7 -- •• ... ■' i 7 70 . iC. 7.7 7 : 2/2/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (Feb. '2, 1934) WRAM, Wilmington Radio Association, Inc. , Wilmington, N. C. , C.P. to move station from Wilmington to Durham, N, C, , make changes in equipment and change frequency from 1370 to 1500 kc, ; KLCN. Charles Leo Lintzenich, Blytheville, Ark., license covering local move of station, installation of new equipment and changing power from 50 to 100 watts, 1290 kc . , daytime; WPFB , Otis Perry Eure, Hattiesburg, Miss., modification of license to reduce hours of operation from unlimited to specified. Also, State of Ohio, Dept. of Highways, Division of State Highway Patrol: Portable in Ohio, special experimental C.Pt} frequency 1682 kc., 50 watts; near Columbus, Ohio, C.P. for State Police service, 1682 kc. , 500 watts; Inhabitants of the City of Plainfield, N. J. , C.P., general experimental, frequencies 30100, 33100, 37100, 40100, 86000-400000. 401000 kc, and above, 25 watts; Same - Portable and Mobile on Police cars, 5 C.P.s same as above, except power 4,5 watts; City of Durham - Police Dept., Durham, N. C., C.P., general experimental 30100,33100, 37100, 40100 kc., 15 watts; WPGO, Town of Huntington, Huntington, N. Y. , C.P. for police service, frequency 2414 kc., 25 watts, KGPZ , City of Wichita Kans., C.P. to move police station to building adjoining present location; Superior Pine Products Co. , Fargo, Ga, , C.P, special emergency service; 2726 kc., 50 watts; KGN, Coos Bay Wireless Telegraph Co,, North Bend, Oregon, C.P. to install new equipment,, increase power from 250 to 500 watts, and move locally; Henry B. Dupont , Wilmington, Del., C.P. 278 kc. , 15 watts. Also, Mackay Radio & Telegraph Co. . Palo Alto, Cal. : KWC , C.P. for additional transmitter, additional frequency 13015; increase in power from 5 to 50 XW, and add Tokyo, Japan, as a point of communication; KWJ, Same, except frequency 7737,5; KRB, Federal-State Marketing Service, Salinas, Cal,, C.P. to move sta¬ tion locally; WPGL , City of Binghamton, N. Y. , license for police service, 2442 kc., 150 watts; WPGN, City of South Bend, Ini., same except frequency 2470 kc . , 100 watts; WPGH ,, City of Albany, N. Y. , same, except frequency 2414 kc, , 100 watts; KGHG , City of Las Vegas, Nev. , same, except frequency 2470 kc . , 50 watts; W9XAC, City of Paducah, Ky. , license, frequency 33100 kc., 15 watts for general experimental service; KIIG, Department of Water & Powc City of Los Angeles, Cal., Silver Lake Camp, license, frequency 3190 kc., 30 watts, special emergency service; W8XS , Westinghouse Electric & Manufacturing Co. , near Saxonburg, Pa. , modification of C.P. extending completion date to April 18, 1934; W9XX, City of Wichita, Kans., Depat. of Police, and W9XY, Same, Portable & Mobile, modification of C.P. extending commencement date to March 15, 1934 and completion date to July 1, 1934; WMEI, Board of Levee Commissioners of New Orleans Levee Dist., New Orleans, La., modification of C.P. extending .commencement date from 6/16/33 to 12/4/33 and extending completion date from 12/16/33 to 2/16/34. 10 2/2/34 Also, Aeronautical Radio, Inc.: KQX, Kern Co. Airport, Bakersfield, Calc, C.P. to move locally within Kern Co, Airport; New, Great Falls, Mont., C.P. , frequencies 2906, 3072.5, 3088, 5672.5, 5692.5 kc. , 50 watts power; New, Glendive Airport, Glen¬ dive, Mont., CcP. frequencies (a) 2854, 3005 kc. , unlimited. 5377.5 kc. day only; (b) 2640, 2644 kc., 50 watts; WAEH, Milwaukee, Wis,, C.P. for replacement of equipment; also granted aviation aero, lic¬ ense, frequencies 2354, 3005, unlimited, 5377,5 kc. day only, 50 watts power, and granted Aviation pt. to pt. license, frequencies 2640, 2644 kc. , power, 50 watts; WAED, Harrisburg, Pa. , license, frequencies 2906“ 3072.5, 3088, 4967.5, 4987.5, 5672.5, and 5692,5 kc. , 400 watts; KGSZ , Seattle, Wash., license, frequencies 2854, 3005 kc., unlimited, 5377.5 kc. day only, 400 watts; Libby Com¬ munications. Inc..; KGOT , Molokai, T. H. , KEY, Maun a Loa, Hawaii, KGOS, Oahu, T. H. , renewal of licenses in accordance with existing licenses; KIP , American Radio News Corp. , near Redwood, Calif. , modification of C.P. extending commencement date from 12/1/33 to 3/1/34 and extending completion date from 3/1/34 to 9/1/34; Laura Ingalls , NC-974-Y, aviation license, frequency 3105 kc., unlimited, 3082.5, 5692.5, 8220 kc., 10 watts; VJ3XAZ t The Atlantic Refining Co., "SS Van Dyke, No. 4", renewal of license in accordance with existing license. Action On Examiners8 Reports granted WCAO, Monumental Radio Co., Baltimore, Md. , /modification of license authorizing increase in power from 200 watts to 500 watts on frequency 600 kc. , sustaining Examiner Ralph L. Walker in part; WICC, Bridgeport Broadcasting Station, Inc., Bridgeport ( grant e Conn. , modification of license authorizing increase in power from 250 watts night, 500 watts LS, to 500 watts, on frequency 800 kc. , reversing Examiner Walker; WCAC t Conn. Agr. College, Storrs, Conn., modification of license granted authorizing increase in power from 250 watts to 500 watts, on 600 kc. , and substituting the name Conn. State College, instead of Conn. Agriculture College, sustaining Examiner Walker in part; W0K0.W0K0, Inc., Albany, N. Y. , granted modification of license to change frequency from i440 to 1430 kc. , and change assignment of hours from daytime and part time night sharing with WHEC, to unlimited time, reversing Examiner Rc L. Walker; WHEC , WHEC, Inc., Rochester, N. Y, , granted modification of license to change frequency from 1440 to 1430 kc „ « and change hours of operation from daytime and part time night sharing with WOKO, to unlimited, reversing Examiner Walker. Also, WCAH, Commercial Radio Service Co. , Columbus, Ohio, granted modification of license to increase the daytime power of station from 500 watts to 1 KW and change hours of operation from daytime and part time night, sharing with WHP, to unlimited time, on present frequency - 1430 kc. , reversing Examiner Walker; WHP , WHP, Inc., Harrisburg, Pa., granted modification of license to change hours of operation from specified hours day, sharing with WCAH at night, to unlimited time on present frequency - 1430 kc., sustaining Examiner Walker in part; WFEA , New Hampshire Broadcasting Co., Manchester, N. H. , deniecpLicense to operate on 1430 kc. , with 500 watts power, unlimited time, reversing Examiner Walker. 11 v- 2/2/34 Also, Charles W. Phelan, Tr. as Casco Bay Broadcasting Co., Portland, Me., denied application for C.P. for new station to operate on 1340 kc. with 500 watts power, sustaining former Examin¬ er Ellis A. Yost; Portland Maine Publishing Co. , Portland, Maine, denied application for C.P. for a new station to operate on 1340 kc. , 500 watts power, sustaining Examiner Yost; WQDM. A. J. St„ Antoine & E. J. Regan, St. Albans, Vt., dismissed application for C.P. to increase power from 100 watts to 1 KW, and change frequen¬ cy from 1370 to 1340 kc. , sustaining Examiner Yost; WFEA , New Hampshire Broadcasting Co,, Manchester, N. H., granted modification of C.P. to change frequency from 1430 to 1340 kc. on an experi¬ mental basis "subject to the condition that the applicant shall net permit the signal intensity without attenuation of Station WFEA radiated in the direction of station WSPD, to be greater than 62,5 millivolts per meter at a distance of 1 mile from transmitter of "WFEA", Examiner Yost reversed; WRDQ , WRDO, Inc., Augusta, Maine, denied C.P. to move Station WRDO from Augusta to Portland, Maine, sustaining Examiner Yost. Miscellaneous The Commission today reconsidered its decision rendered January 16, 1934, in the case of Peoria Broadcasting Co., Station WMBD (Ex. Rep. 493), and Illinois Broadcasting Corp. , Station WTAD* by the terms of this decision the Peoria Broadcasting Co. was granted full-time, and the Illinois Broadcasting Corp.’s station was ordered deleted, to take effect 20 days from date of decision. The action of the Commission today in reconsidering this case, remanded it to the Examiner to take additional testimony and make recommendations based upon any additional testimony that may be presented. KIEM, Harold H. Hanseth, Eureka, Cal. , application for modification of license to increase hours of operation from day¬ time to unlimited 1210 kc., 100 watts (facilities of KFWI) which was denied as in cases of default on December 8P 1933, ’was restored to the hearing docket; Northern Broadcasting Co. ... Inc. , Laconia, N. Ho, application for new station to operate on 1310 kc . , 100 watts, daytime only (facilities of former WKAV), taken from hearing docket and granted; George Webb, Newport, R. I., application for new station re-designated for hearing, to be heard on bill of particulars dated December 5, 1933. Action On Cases Heard By Commission En Banc WEEA, Aeronautical Radio, Inc., Atlanta, Ga. , and KGPTG, Eastern Air Transport, Inc., Atlanta, Ga. , record in these cases closed and applicants afforded opportunity to file necessary applications to comply with modified rules and regulations which permit the transmission of public correspondence between ground stations at airports and airplanes in flight, subject to proper requirements and restrictions. XXXXXXXX - 12 - f ... ;> . :0 ' ' v . 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JV ■ t vQ Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication INDEX TO ISSUE OF FEBRUARY 6, 1934* Radio-Press Plan Starts March 1 . 2 Joint Meeting U.R.S.I. And I.R.E. In April . 3 Stations To Receive Their Blue Eagles . Rockefeller Denies Luring Tenants Into Radio City. . Broadcasting Survey May Determine Fate Of Radio Commission . Capt. Hooper Transferred To Navy War Plans Division. Dutch Radio Exports Hold Up . . . Radio-Police Unity Asked For Police. . Milwaukee Newspaper To Try Out Facsimile Broadcasts. . 7 Egypt To Try Mass Education By Radio . 7 Business Letter Notes . 8 Believes Without White House Help Food Bill Will Fail . 8 Group Broadcasters, Inc., To Begin This Week . .9 Direct Current Amplifier For Radiometers . 10 When Life Is Simple . 10 Decisions Of The Federal Radio Commission. . 11 No. 695 ^ -sf* in lo co co 1) February 6, 1934. RADIO-PRESS PLAN STARTS MARCH 1 News furnished and selected by newspapers and press associations may be broadcast by radio twice a day in five-minute morning and evening periods, under a cooperative plan adopted by press and radio representatives and announced in New York Jan, 31. The new plan is to go into effect March 1. Under the plan both Columbia Broadcasting System and National Broadcasting Company will withdraw from the news-gathering field, and radio commentators on current events will confine their remarks to background material and will no longer broadcast spot news. The stipulated agreement that the Columbia and National companies would get out of the news-gathering business, which was in the original proposal, is not mentioned in the new plan, although coincident with the announcement this week it was stated that both broadcasters "have announced that in accordance with their previous- ly expressed intention they have decided to withdraw from the news-gathering field." The other change is in connection with broadcast ing of news by newspaper-owned stations. The original plan carried this stipulation : "The newspapers and the broadcasters will cooperate to limit the broadcasting of news by newspaper-owned stations and independently owned stations on a basis comparable to the schedule set up above for radio chains." In the new; plan this situation is covered in these words: "A part of this program is to secure the broadcasting of news by newspaper-owned stations and independen tly-owned stations on a basis comparable to the foregoing schedule. The press associa¬ tions will inform their clients or members concerning the broad¬ casting of news from press association reports as set forth in the foregoing schedule." James W. Barrett, former City Editor of the New York American, has been designated as the head of the Bureau through which the press associations will clear the news items for broad¬ casting purposes. Commenting upon what it calls the new deal in radio news, the Editor and Publisher says: - 2 - . • ; fc mi. Vc-tel ’■ V : : w j v,:- -Wi . • ; , ■ • . . ; . j 4 otn :■ ■ ■ .. . v l v ■ - 1 http t ~v t . . ... &y ' ■ ' ? ■ ^ v. t . v, , , > . . - • ;• v ,=.i r v. ■ ;• o r ; • :• . .vvv.', V;- ■ ;« fh! v • H !,i 'U-; . i iX3'Oi ■¥ x o;sj •> - T-. •- ? • .v. ... i'.i'v'fct&i V 1 H ■ • si . ..1 >i w.' .• • W.VV ' i : ; JVj? h.i% '., .:., .. : , no a o ": 4. j. viVVVVv vwj <.>’ .. . ' ...V *. %.t is} : A : ■ . ■ ■ j" ■ . -.1 . ■ : . ' i fj , ■ 1 •: , : -J ; ' ,'V. ■' 1. . : ”• ' . •; ' i ' ■ ; i-..- •. ■ • . .. .-. . 1 . ;■ ■■ ii >; yao . j -m. 4yx;> - r, , '. . ? •; : •; ' ' v..\ " ' ■ s. ' ■. .v.: ' V t ? - v ■ -Ohm 'i’^O - %1 I ... . ;. fe r :■■■-, m'i '.• , i .• ; c • '• ; .: t L' .y * ; =; i: ,r . ; i ix j ; i • 1 , : : . > 5 ii ; ?;ri t. i .-I ;rjO? • XX- . ;Ji i'J . .. ' ■ ■ . . . : 1 v . . !0' ' ■ ; r. .0 . . • ■ , .. ••. •, .'X D V D . I ;.. . •VO:.'- : XU.:! o.: ■, • ' ; ■ . . /•- ; ... ih 1 : . X-. - • a: i ■ ■ - - y ■: S! ‘ Vj ■ ; - ! ' 7„3 » .. .... • ■ . i. I» ' V > • • .. . - i . . . : : . '■ . ' . '• ■ •' : . . •i- -■ ’ ■. •. 'Vi .: x :: x- . . f... -. , • U- ; ,r .♦ < ,.V .\ ■ • ' ‘ 1 . t ■ . . ,i; ■ i ■. -'x, .. , i ;■ x . - ■ f ■ .Vi •/ JV ii JfiV~ ii ■ ' . . . • :: 'i : S‘'> SI : Xiia, .v'i -i.; V' . " .1 .■ .u. f .r; : ; V ' ' • : . .' : .v. XiO ; r : •; , . - - a/6/34 "The ten-point agreement to end unfair radio news com¬ petition will go into force on March 1. The agreement has now been confirmed, with some minor, legalistic alterations* "This is a new deal. We believe it will work. The radio broadcasting chains agree to suspend their independent news col¬ lection services, though for legal reasons mention of this is dropped from the agreement* A committee headed by Edwin S. Friendly business manager of the New York Sun „ will set up a newspaper- controlled bureau to receive press association reports and cooper¬ ate with radio* "This, to Editor & Publisher, seems to offer a real con¬ trol, from which valuable benefits will accrue to radio, press and public policy* We do not regret our years of crusading for control of news on the air and we salute the committee that has brought about a working agreement which is remarkable for give-and- take liberality." X X X X X X X JOINT MEETING- U.R.S.f. AND I.R.E. IN APRIL A joint meeting of the American Section of the Inter¬ national Scientific Radio Union and the Institute of Radio Engin¬ eers is to be held April 27th at the National Academy of Sciences in Washington, D. C* It is expected that this meeting will become an important annual event. The session will last but one day during which time there will be presentations of papers on the more fundamental aspects of radio problems* The Washington arrangements committee is composed of J. H. Dellinger, of the Bureau of Standards; Ft P. Guthrie, of the Radio Corporation of America; R. B. Owens, Naval Research Laboratory , and Dr* L* P. Wheeler, consulting engineer* The President of the American Section of the U.R.S.I. (wnose initials are backwards but stand for International Scientific Radio Union) is Prof. A. E. Kennelly, of Boston. Dr. C. M. Jansky, of Washington, is head of the I.R.A. X X X X X X 3 c. 21/6/34 STATIONS TO RECEIVE THEIR BLUE EAGLES The Code Authority for the Radio Broadcasting Industry will begin shortly the distribution of "Code Blue Eagles" for stations complying with the Broadcasters’ Code. The Code Blue Eagle was finally hatched last week and regulations governing its use have been approved by General John¬ son. Distribution will be made by Code Authorities and each industry under permanent codes will have its own insignia.. "Each insignia, in addition to identifying the Code under which it is issued, will bear the registration number of the firm, corporation or individual entitled to display it". General Johnson explainedc "They will be distributed by Code Authorities to sub¬ scribers, under regulations to be made public in a few days." The letters "NRA" in blue appear between the outstretch¬ ed wings of the new Code Eagle and under its talons the words "Code - Trade or Industry Registration Number), 1934" „ In smaller- type are also the words "Property of the United States - not for sale", and the patent design number. Counterfeiting or mutilation of the Blue Eagle is illegal. The old Blue Eagle will designate only those who are still operating under the President’s Reemployment Agreement in the future. XXXXXXXX ROCKEFELLER DENIES LURING TENANTS INTO RADIO CITY A general denial has been entered by John D. Rockefeller in the $10,000,000 suit alleging that tenants had been lured into Radio City buildings by improper methods. The defendants are alleged to have conspired to control the large territory in which the Rockefeller buildings are situated and to be competing un¬ fairly with other buildings. It is alleged that they coerced tenants in other buildings by paying them to ignore existing leases, and that they assumed the leases of these tenants. The defendants are alleged to be taking these tenants at less than proper rates. The defendants are alleged to have induced Congress to pass an act authorizing Rockefeller Center to operate bonded ware¬ houses in the area between Fifth and Sixth Avenues and Forty- eighth and Fifty-first Streets for a display of foreign goods until they are sold or returned to the place of export, and that this act was passed as the result of representations that it would aid in the importation of articles solely for the purpose of exhibition. X X X X X X X 4 c ,'v^ I S’ » Li 2/6/34 BROADCASTING SURVEY MAY DETERMINE FATE OF RADIO COMMISSION There seems to be an impression in Washington, although it will probably not be set forth officially, that the real object of the survey which Secretary of Commerce Roper will make for President Roosevelt is to determine whether broadcasting is so distinct a business that it should continue separately under the Federal Radio Commission, or whether it should be lumped in with the new Communications Commission and the Federal Radio Commission done away with entirely. It is believed the broad¬ casting survey will endorse the American system of broadcasting and then proceed to consider the proper way of handling it. The personnel of the Committee which will make the survey has not yet been decided upon but Secretary Roper is expected to throw more light on the entire subject at an early date. There is expected to be an entirely different line-up than on the Communications Committee, In the meantime, Senator Dill is going ahead with the writing of his Communications Bill. While the President has carefully refrained from any stipulations with regard to the bill, a great deal of pressure has been exerted upon the Administration to have such a measure enacted. If Congress should close down at an early date, as sug¬ gested by Speaker Rainey, which Washington observers seem to doubt, it is believed a simple bill may be passed setting up a Communications Commission with the rest of the details to be worked out later. XXXXXXXX CAPT. HOOPER TRANSFERRED TO NAVY WAR PLANS DIVISION In the course of the regular naval transfers, which require the rotation of all Navy officers so that they may become familiar with the different duties, Capt . S. C. Hooper, Director of Naval Communications, has been transferred to the Navy War Plans division. Captain Hooper, who is a pioneer in the radio field, will be succeeded by Capt. James Otto Richardson, recently designated to be a Rear Admiral, and now stationed at the War College. Captain Richardson is 56 years old and formerly com¬ manded the U.S.S. Augusta. His last shore duty was as detail officer at the Bureau of Navigation. X X X X X X 5 r - ;■ te rgm Miui ^ ■ & t h. o fMMi • ' ' ' ' •< < <1 :i ‘ : . 1- : : J ' g n • . vt % . i t S.: i“- ■' ?/.'■ ..." ••••'. • • T i • • 7 ’’ ~:rl v i v‘r r .• 1 - e : • ../ g e v L :. h . •: c?g ,l.'; t.:‘ ■ ; 1 i ? '-i vt 'XX : ' • -v v g* ; e i :ee ■ • ■ G, . 7 ■ j;-~7 ■ ; • J •• '• • - ’ :. ’ J - • i e e : G.T G; : : 1 5 . D G t ; . . G ;? 7 ; ;• i G ■. •• V.}. - >. i ■ i ■ ’ L ;; , r •( j • G G -GXG :G , ‘ ( i ... ;; • I'S f . . v.' ,,v . £.:■ 'J. ■.'■j .. r " G ... 7; x;.. - V ilU ' J: . ■ i.H;h i> - & ■ .' . •• :• . ' G Gfc; X ^ .. ij'fiv • ■ 7 ne v: ; G.^u-.wh g . . -r-'orl gov. oo / '& G ,G: . v x : > :: n v ; G . o j : , : ■ 0 .0 . 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D i ,..gg-.G ; '} ' ' , •r X j. .G G •. j oo o ■j > . tr'iti'i '■ '■ , G : r gJ G ■ $z\ ■G : :::G .: 7 £ ' X \ ■ '.X j ; a. .> >G i ' ^ j ■■ ; c.-j- • f. ■ ; :/ ; j . .. . ; r: GJGGG 7o .;. ■ ' h G.: •: „ - ‘ • : " < , i inn P g<>.; ; g.; ^ • ■ v.: ::.r'S- • “ ■ • go ■■•.■'X ■ f: v ;i re: j -.. lie g :. .g::g,g g.'- ■ eh O r- e- ; 0 : ' , • - • . ....... , YGG r f :\„t ...;h\ .G h-G V ■ ■■ f . . n; -? hhe go rof o.vogg i Me ./ ■ ; ' 1’ hoG- * v.; a ' • C\ i ho'T 2/6/34 DUTCH RADIO EXPORTS HOLD UP Exports of radio sets and radio equipment from the Netherlands in 1933 were maintained at practically the same level as the preceding year, according to advices from Commercial Attache Jesse F, Van Wickel, The Hague, Total shipments during the past calendar year had a value of 38,715,000 florins as compared with 38,436,000 florins in 1932, and. 48,559,000 florins in 1931. Exports of metal filament incandescent lamps in 1933 amounted to 8,515,000 florins compared with 7,476,000 florins in 1932, and 13,302,000 florins in 1931, A florin was about 40 cents at the last quotation. X X X X X X X RADIO-POLICE UNITY ASKED FOR POLICE A proposal for a nation-wide short-wave radio broadcast¬ ing system linking an air police patrol with police cars to prevent crime and apprehend criminals will be laid before the Department of Justice in Washington by United States Marshal John J. Murphy, of Boston *, His plan would create a service combining national State and municipal police and. investigation units. Citing the bank hold-up and murder at Needham, Mass., recently, as an example of the crime with which his plan would cope Marshal Murphy said: "Once at the scene of the hold-up, the plane would cruise in ever-widening circles, covering all roads a thousand times faster than a police land car, and, once the air observers had spotted the suspicious car, the rest would be easy, "Radio messages from the plane to police on the ground would keep them informed of the fugitive car : s exact whereabouts and, with all police stations linked with the national system, the work of bottling up the fleeing bandits could be quickly accomplish ed. 11 X X X X X X 6 : J: • i- 2/6/34 MILWAUKEE NEWSPAPER TO TRY OUT FACSIMILE BROADCASTS The Milwaukee Journal's experimental facsimile broad¬ casts which start Feb. 21 are quite separate from WTMJ, the regular Milwaukee Journal station. The facsimile transmitter is designated W9XAG. The Journal points out that the listener requires a receiving set capable of picking up signals of 1,652 kilocycles and, in place of the usual loudspeaker, a radio pen to travel across a tape of paper. These facsimile receivers are net avail¬ able as yet on the open market and the Journal doubts if they will be very soon. John V. L. Hogan, New York City engineer, invent¬ ed the type of facsimile used by the Journal. In answer to the possibility of sponsorship, the Milwaukee Journal through Walter J. Damm, broadcast leader, explains that doubt exists that facsimile is capable of present¬ ing a highly perfected regular program schedule. The broad¬ casts will primarily interest the scientifically-minded for the time being and, while programs of interest to such persons are contemplated, the Journal has no present expectations of achiev¬ ing anything but knowledge and experience in a new development. X X X X X X EGYPT TO TRY MASS EDUCATION BY RADIO Mass education by means of radio is to be attempted by the Egyptian Government. This project, it is pointed out, has been under consideration for some time by the Ministry of Educa¬ tion and the Ministry of Communications. The large illiterate population of farmers scattered in villages throughout the country lends itself admirably to oral instruction, the importance of which in matters of agriculture and hygiene is considerable. According to present plans, a four-year program is to be instituted to cost between $400,000 and $500,000, at the end of which 2,000 villages in Egypt of over 2,000 inhabitants will be equipped for receptions from the Government Broadcasting stations. It is expected, the report states, that Government broadcasting in connection with the new project will begin some time in February but the date may be postponed until the neces¬ sary funds are obtainable. Approximately 500 radio sets will be purchased each year during the life of the plan. Local representatives for American manufacturers, it is pointed out, are making plans to obtain a share of this business. X X X X X X - 7 - • ■ - • v. - i . ' .:~0> ' ■ ■ xeJsi • V , •... . . f 7 ■ W - ■. A ■ • . ni .urox,t .. , , . 2/6/34 : BUSINESS LETTER NOTES : Powel Crowley has gone to the rescue of Cincinnati’s losing National League baseball team, which is badly in need of funds. Mr. Crosley will head a syndicate which will finance the venture next season. Walter Dealey, founder of Station WFAA, 50,000 watt power, at Dallas, Tex., died last week of heart failure. He was only 43 years old. A feature of Columbia’s new broadcasting theatre, which was opened in New York last week, is the glass enclosed control room in one of the boxes, so that spectators may view the broadcasting as enacted on the stage. Although WLS in Chicago was said to desire to break away from NBC at the conclusion of this year’s contract:, figuring it could make more money on its own, according to a New York dispatch the station over-looked, a 60-day cancellation notice clause at the end of this year’s contract and thus will have to go along with NBC for another 12 months. A daily radio talk on all stations, in which New York City will inform housewives what foods will be abundant and at low price, is planned by Mayor LaGuar&ia. With the elimination of racketeering from the city’s markets, he said, he believed the cost of food could be reduced from 5 to 10 per cent even before the establishment of his system of strategically located terminal markets. X X X X X X X BELIEVES WITHOUT WHITE HOUSE HELP FOOD BILL WILL FAIL The following is the latest comment on the proposed new Food, Drug and Cosmetics Bill by George Durno, of the McClure Newspaper Syndicate: "A powerful lobby is tearing the measure to ribbons bit by bit. Unless the White House takes a hand a feeble bill will be reported out of committee and probably will never reach a final vote. 8 r • r;..-ox- , c ■ T :..x' ,.;t ■ v ' : . 'i U ' X X XX; jj ftsr o x . x,.,.:. ■- . :. X; C.!. i; X 1. ,’C - < Xy i : X ;!' . t ••• • : OX vlx-o •>.v' i - j ZAijj. fj? D xo ;rJ' / . I herd r-i'XO Y vivM, fd 57 *.8 0; p& ,00'-!.D0' 3 , . •• o ii ■ •;• r . V 0 !' I' ,-r - 7 '• X X;,X ■j • : : j ■..• . V ■ t . .. : . Z;-[ .v: .f : X £ j OX; XOX • , i vi '.,i . ' t ' • : .... CO u .XV77, x,, . \ -xx. ' ;::OJ7.:jXv,.;X X C: X ! / . d xxx, 0 :x. X : ol; 7 odV i. ' .. 7, ' xx ox. ’X . . dux •< ! *7. v- xx .. c x X: . / x I y L: ij /. ;; ' ; f . , v . ( , i. /. j' c:.0 :d. O - .uxox; v .. j; • . . o . . x ;. . . ,v ■ xiod . x. xx: ).::■> :. : : • "d t ■ ■ • X- 7- : ... 7 . XX 'X v. ■ • ■ 7 7 x ; . XU.' X- . ■ 'X : . : . .X XU. X 1 x r p . XX, . : : , X.-. 'X r fj«t X i X X;.. 7X.7, ; X' £'* ?••'£/ 0 - .XX' X : . xJxxxx. ;;... ;r:;v(x :.,.i.x{ lx ■!,. - x, J0x;X OCX; 2/6/34 "The first few bites that the pain-and-- paint lobby took were anticipated by the Food and Drug Administration, which seems to be standing alone in the fight for the bill. All legislation is a matter of compromise0 But those bites have only served to increase the lobby's appetite. "In the original Tugwell bill it was provided that drugs and foodstuffs must have an itemization of their contents printed on the label. As re-written by Senator Copeland - who will steer the bill if it ever gets out of committee - the provision affect¬ ing drugs was eliminated. This was done on the complaint that patented formulas would be revealed to chiseling competitors. "The latest bulletin from the battlefront indicates that foodstuffs also are going to be exempted. Here again a lobbyist is responsible - this time representing a concern that puts up a concoction of cocoa, dried milk and sugar which is supposed to induce sleep. " X X X X X X GROUP BROADCASTERS, INC., TO BEGIN THIS WEEK Spot broadcasting's first combine, organized for the purpose of putting the independent station operator in a posit ior to compete directly with NBC and Columbia, makes its bow this week, according to Variety . "Included in the project to date are some 20 stations located in the largest cities that make up the basic territory east of Chicago and St. Louis. Incorporators of the proposition are calling it Group Broadcasters, Inc., and meet this week in New York to elect officers and a Board of Directors", the theatrical magazine goes on. "Creator of the group selling idea as applied to major outlets spread out over the basic territory is Scott Howe Bowen, one of the pioneers in the station representative field. As head man and stockholder in Group Broadcasters, Inc., Bowen will cease to represent or place business upon any local stations which are in competition with the members of the G. B. enterprise. "Though for the start advertisers will have some 20 stations available to pick from under the G. B. plan, they will be permitted to limit their group buys to 10 stations. "Included among the outlets that have allied themselves with Group Broadcasters are WOR, Newark, which will take care of Greater New York area; the Yankee network, which takes in New England; WLW and WSAI, Cincinnati; WGR, and WKBW, Buffalo; KMBC, Kansas City; WHK, Cleveland; KWK, St. Louis, and CKLW, Detroit." Scott Howe Bowen is claiming to broadcasters that in the past six years the Bowen organization has placed around $10,000,000 in advertising with radio stations. X X X X X X - 9 - 2/6/34 DIRECT CURRENT AMPLIFIER FOR RADIOMETERS Since the invention of the electron tube, some 18 years ago, numerous arrangements of electric circuits have been des¬ cribed for amplifying small electric currents; for example, from thermopiles and photoelectri c cells. But few of these proposals have survived, and none have come into general use for making precise radiometric measurements. This is owing to the instabil¬ ity of the electronic circuit used and to the lack of provision for electrically standardizing the amplifier - a necessary pro¬ cedure since there are no reliable sources of ultraviolet for standardizing the combined radiometer and amplifier. Recently, considerable time has been devoted by the U. S. Standards Bureau’s radiometry section to assembling various combinations of screen-grid electron tubes and resistances to give the desired amplification, and testing their reproducibility from day to day. The materials employed (microamme ber , screen- grid amplifier tubes, resistances, dry batteries, and photo¬ electric cells) are readily obtainable in commerce. The assembly is compact in form and easily transported - weight about 2? pounds. During the past month the performance of the device has been studied intensively both in the field and in the laboratory. It was found that, after a preliminary operation for 5 to 10 minutes to attain temperature equilibrium in the amplifier tubes, there is no fluctuation in the zero scale reading of the microammeter either (a) when testing the amplification sensitivity of the instrument, or (b) when making measurements of ultraviolet intensities of the sun and of artificial sources. The indicator response scale reading was found to be linear within the accuracy of the microammeter used. Owing to the selective wave-length response of the photoelectric cell, this device like all selective radiometers, must be calibrated in absolute value by means of the standard balanced thermopile (dif¬ ferential actinometer) and filter radiometer0 X X X X X X WHEN LIFE IS SIMPLE A hotel owner in Mechanicsville , Vt . has furnished a new reason for not advertising over the radio. He explained to his wife, Variety testifies, that 11 radio advertising will bring people to the hotel, and if people come it will mean more work for both of us." X X X X X X 10 0 vx-i ... v. ■ 7 7 ' 7 - -C3.D 77 . j: u o' ■. ■: x’i t ■/ . .. . ■ Tv'i ; iijn- n.1 ■ & ; ; ,1 • ;; L r:. io ; V~y : , ■ A - i: : 0.1 i : ■ -'Jr-:- ' d i i 00 .i.. ''1-.. .o ;. : ...7. ■: .. ." J: .j: . 1/ -M .■ ... :70 1. " . 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' .7 J . ■: 0 ■ : 0 j 0 7 -{ f 1 3 '7 / I J* '• ' ■ • .■ .7 , 7 . : / . , 7 j ■ ■ . • .: * o ‘ • t r. 2/6/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (Feb. 6, 1934) WTAG, Worcester Telegraph Publishing Co. , Worcester, Mass., C.P. to move transmitter locally in Worcester; WJBO , Baton Rouge Broadcasting Co., Inc., Baton Rouge, La. , modifica¬ tion of C.P. to move transmitter locally in Baton Rouge, and to extend commencement date from 2/2/34 to 30 uays after the grant¬ ing of this application and extend completion date from 5/31/34 to 120 days after granting of this application; WENC . Americus Broadcast Corp. , Albany, Ga. , modification of C.P. for approval of transmitter site and extension of commencement date from 1/5/34 to 30 days after granting of this application (March 6) and ex¬ tension of completion date from 4/5/34 to 60 days after granting of this application (May 6, 1934); WICC , The Bridgeport Broad¬ casting Station, Inc., Bridgeport, Conn., modification of license for direct measurement of antenna input, to determine power; WBSQ . Broadcasting Service Organization, Inc., Needham, Mass., authority to operate from 2 to 4 A.M. EST, Feb. 18, 1934, in order to broad¬ cast DX program; Stations WRAX-WPEN and WWJ with less than recom¬ mended mileage separation, have consented to the requested opera¬ tion. Also, KGCX, H. E. Krebsbach, Wofl Point, Mont,, special temporary authorization to operate from 9 P.M. to 10 P.M. Mountain Standard Time, Feb. 12, 1934, in order to broadcast the complete proceedings of the Wolf Point Commercial Club banquet; WMEX, The Northern Corp., Chelsea, Mass. , modification of C.P, for approval of transmitter site authorized to be determined by con¬ struction permit 4-g- miles from center of Boston, Chelsea, Mass. ; WG-ST . Georgia School of Technology, Atlanta, Ga. , authority to operate with power of 250 watts daytime for a period of approxi¬ mately 10 days on account of construction work authorized by C.P. ; WBNS , The Commercial Radio Service Co. , Columbus, 0., modifica¬ tion of license to change name to WBNS, Inc.: also C.P. tomove transmitter to \ mile south of Route 40 and mile east of James Rdr , Truro Township, Ohio. Also, WEL, RCA Communications, Inc., Rocky Point, N.Y. , C.P. for fixed public pt. to pt . teleg. to add power amplifiers to existing transmitter #45, 8950 kc. , 80 kw. , emission: Al, A2 and spec: Broadcasters of Penna. , Portable, C.P. for gen. exp. sta¬ tion for 32.100, 34600, 37600, 40600 kc., Power: 5 watts., Emis¬ sion: Al, A2 and A3; City of Lake Forest (Police Dept . , )Mobile 4 new C.P.s (gen. exp. ) for 34600, 41000 kc., 5 watts, Emission: A3; W2XZ , Bell Telephone Labs., Inc., Portable used principally in Monmouth County, N. J., license to cover C.P. (Gen. Exp.) for 1614, 2398, 3492.5, 4797.5, 6425, 8655, 12862.5, 17310, 23100, 25700, 26000, 27100, 30100, 31100, 31600, 33100, 34600, 35600, 37100, 37600, 38600, 40100, 40600, 41000, 86000-400000, 401000 and above, power: 1 KW, Emission: Al, A3 and special, for period ending June 1, 1934; KIIK , Northern Commercial Co., Circle, Alaska, license to cover C.P. (fixed public pt. to pt. telephone) 11 2/6/34 for 2994, 3190 kc. , 50 watts. Emission: A3, points of comm.: Fairbanks, Anchorage and similar stations in vicinity; Same for KIIN; W10XBU, Lehigh Valley R.R. Co., Also WlOXBV, portable mobile (for use on trains), modification of C.P, (gen. exp.) for extension of commencement date from 8/25/33 to 2/1/34 and exten¬ sion of completion date from 1/8/34 to 5/1/34; Charles F. McDonough, NC-5212 (New York), license (aviation-aircraft) for 333, 500, 3105, 5520, 8280, 12420, 100 watts; Emission: Al; KHX, Libby Communications, Inc., Honolulu, Hawaii, renewal of license (public coastal). Coastal Harbor, in accordance with existing license; Aeronautical Radio, Inc.: at Greenville, S. C. , C.P. ( av i at i on-Aero. ) for 2922, 2946, 2986, 4122.5, 5652.5 kc. , 15 watts, Emission: Al, A2, A3; WQDQ, , New Orleans, La., C.P. (Avia¬ tion-Aero. pt. to pt.) for installing replacement transmitter, Westinghouse Elec. Type C-l, frequencies: 2612, 2636, 3467.5, 4640 kc. , unlimited; 6540, 6560, 8015 kc. , day only; power: 250 w. ; Emission: Al; WM EU, license to cover C.P. (Aviation-Aero.), for 2930, 6615 kc. , 400 watts; Emission: Al, A2, A3* Also, Mackay Radio & Teleg. Co. , Inc. : 2 miles east of Chalmette, La., modification of C.P, (fixed public pt. to pt . Teleg.) to change location to Near Atlanta, Ga. (exact location undetermined as yet but subject to approval of FRC) ; change fre¬ quencies from 4675, 2535, 7745, 9290, 10820 kc. , to 4655. 7670, 8980 kc. , change points of communication from New York and Chicago to New York only and extend commencement date from 3/2/ ss to date this application is granted and extend completion date from 5/21/3 . to 4 months from date of granting of application; WMEC , modifica¬ tion of C.P. (fixed public pt. to pt . teleg.) to change points of communicat ion on transmitter #2 from Sayville, San Francisco and New Orleans, to New York and Kansas City and change frequencies from 4650,4655, 5230, 5240, 5980, 7760, 8970, 8990, 10170 kc. to 7760, 4660 kc. , also extended commencement date from 3/21/33 to date of this application is granted and extension of completion date from 5/2/34 to 4 months from date of granting this applica¬ tion; Same, 2 mil NW of St. John, Ind. , same except location to near Kansas City, Mo; and change frequencies to 5980, 7662.5, 8980, 10820 kc. and for transmitter #3. Rat if icat ion of Acts Qf C ommissi oners WFOI , Radiomarine Corp. of America, Washington , D. C. , temp, authorization granted not exceeding 60 days pending receipt and action on formal application to operate 1 KW spark aboard vessel "Point Brava", range 375 to 500 kc . , 3rd class service (date of action 1/30/34); WODE, Radiomarine Corp. of America, "Orion", Washington, D. C,, granted 1st and 3rd class public ship license (date of action Feb. 1, 1934); WFDL , Radiomarine Corp. of America, "American Merchant", Washington, D. C. granted 1st class public ship license (date of action 1/31/34) ; X X X X X X 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication 4 INDEX TO ISSUE OF FEBRUARY 9, 1934 h Government To Strike Back At Mexican Border Broadcasters 2 Lucerne Radio Plan Blankets Russia . Standard Oil Quits Babe Ruth Contest. . WOR Distillery Broadcasts Bring No Complaints To Date . bulletin . Look Upon Hearings As Anti-Radio Sounding Board . President Orders Food and Drug Bill Pressed . . Broadcast Advertising Gains; Individual Stations Drop . Hew York Catholic Station Fails To Get WPG‘s Channel . Wireless By Wire . . President Approves Communications Bill Plan . New Commission Vote System Protests Against Politicians . Britain Uses 6-M. Micro-Ray. . . Is Air Talent Or Product On Top? . . . Radio In Education Council Seeks To Revive Local Government. Sees Communications Companies Reconciled To Government Control.. 10 Decisions Of The Federal Radio Commission . 11 No. 696 to CO CD 00 00 -s3-<3-<3 CD CD CJ1 ^ WG) GOVERNMENT TO STRIKE BACK AT MEXICAN BORDER BROADCASTERS Having failed, at the North American Conference in Mexico City to put the kibosh on the objectionable broadcasting of American outlaws across the Mexican border, the Government is now moving through other channels to rectify the situation. To this end Senator Dill, Chairman of the Interstate Commerce Committee has introduced the following bill in the Senate amending the radio law, to prevent setting up of studios in the United States which are connected with radio stations in foreign countries that broad¬ cast back into this country: "No person, firm, company, or corporation shall be per¬ mitted to locate, use, or maintain a radio broadcast studio or other place or apparatus from which or whereby sound waves are con¬ verted into electrical energy, or mechanical or physical reproduct'* ion of sound waves produced, and caused to be transmitted or deliver¬ ed to a radio station in a foreign country for the purpose of being broadcast from any radio station there having a power output of suf¬ ficient intensity and/or being so located geographically that its emissions may be received consistently in the United States, without first obtaining a permit from the Federal Radio Commission upon proper application therefor. "Such application shall contain such information as the Commission may by regulation prescribe, and the granting or refusal thereof shall be subject to the requirements of Section 11 of the Radio Act of 1927 with respect to applications for station licenses or renewal or modification thereof, and the license or permission so granted shall be revocable for false statements in the application so required or when the Commission, after hearings, shall find its continuation no longer in the public interest." Senator Dill in this amendment is obviously aiming at Dr. J. R. Brinkley, goat gland specialist, who is operating Station XER at Villa Acuna, Mexico, by remote control from across the border at Del Rio, Texas. Also at Norman T. Baker, who, if he is not already doing so, is reported soon to begin operating Station XENT at Neuva Laredo, Mexico, from Neuva Laredo, Texas. Brinkley and Baker, as is well known, formerly operated stations in Kansas and Iowa respectively which were both closed down because of objectionable medical broadcasts. For a time Brinkley operated his Mexican station from Milford, Kansas, where his old station was located, but later moved to Del Rio. Brinkley’s power at XER though listed at 500,000 watts is said to be 80,000 watts which would still make it almost twice as powerful as any station in the United States excepting WLW at Cincinnati, which is now experimenting with 500,000 watts. Baker's power is listed at 150,000, 2 o.o\ . '■{' V - J : - :: v i'. i -i v ' ... ,jO: O •'• J ..V-. 4 . V .. •'. : .1 >" .1^ , 1 •. J1 ' i X .i‘ 1 Q.U ; ii X /'Vi xU-oao a ...; ,4 0 : ■:/, 04 ox 4 ; • 7o 4.0 1 ; , - ■ •; • . > : \ . ' } 0 j 1:'. l s!' '0 ': i, CO,/' ' • • i"iO ■: i . ■ 1. ■>.: ; ./ vp ; "44; >.* 4 :. .:.. '• • ' - < % : ; X. V ; x , v i: xd ij> 1 X ,1 ' 1 l * ,iV| - . •' ;4 0 7 -iV ; ) ii.v i I: X :ui| ‘U ^ ■ ..>•!' 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In doing this Mr, Baldwin also aimed at Station CKLW at Windsor, Canada, across the border from Detroit. He explained because of the difference in the wage scales and other factors, CKLW was able to broadcast advertising, at a profit, at a consider ably lower rate than the Detroit and other nearby stations. Baldwin said he proposed to confer with the American Association of Advertising Agencies with regard to withholding advertising contracts from these objectionable border stations,, XXXXXXXX LUCERNE RADIO PLAN BLANKETS RUSSIA Writing for the McClure Newspaper Syndicate, of New York, James McMullin adds the following confidential ( not— for-publication) note to editors : "New York learns that the Soviets are all het up over the Lucerne radio plan. The new wave lengths granted to Russia cut off most of the foreign reception of her propaganda broadcasts. The Reds - who have been sending their stuff out in eight langu- ages - threaten to leave the International Radio Union and work out their own wavelengths as they please. Their Moscow transmitter of 1200 kilowatts is the most powerful in the world and they won’t stand for a muzzle on it.,f Dr. August Hund, American radio engineer and Russian by birth, returning from Russia about a year ago, reported the Russians were operating a 500 kilowatt station. If the Russians have stepped it up to 1200 kilowatts or erected a new station of that power, they have evidently done it since then. XXXXXXXX STANDARD OIL QUITS BABE RUTH CONTEST The Government quashed its suit for an injunction against the Standard Oil Company of New Jersey when the latter agreed to withdraw its "Babe" Ruth radio contests. Secretary Ickes, oil administrator, alleged that "Babe" Ruth promising boys a trip to the Spring training camp of the Yankees and offering other induce¬ ments violated provisions of the Oil Code prohibiting the giving of prizes and premiums. X X X X X X X 3 2/9/34 WOR DISTILLERY BROADCASTS BRING NO COMPLAINTS TO DATE Up to this writing, a week after the initial broadcast- ing of programs by Station WOR, Newark, advertising a gin distill¬ ery, it was said that no complaints had. been received by the Federal Radio Commission, The station itself, which invited listeners in dry states to tune out, reported that "there were no repercussions" on the part of listeners. The recent warning of the Federal Radio Commission that those stations which advertise liquor ~ presumably hard liquor, though their statement simply says "liquor" - may have to justify this action when their station license renewal comes up, hasn’t set very well with the broadcasters. "It is an implied threat which may mean anything or nothing", one of them said. "The Commission’s warning is really worse than a regulation because if a regulation had been promul¬ gated, the stations would at least know where they stand. "To begin with, the Commission is vague in its use of the word ‘liquor’. They probably mean 'hard liquor* but from their statement, it could be beer as well. There is no curb on newspaper liquor advertising, excepting in dry states. Why should the Commission crack down on the broadcasters? "Insofar as children are concerned, radio is in a position to put on its hard liquor broadcasts after the children are in bed. The broadcasters are certainly not going to advertise pure rye in the morning with the corn flakes. Since the repeal of the 18th Amendment, leading hotels have begun to advertise over the radio and they mention that choice wines will be served with meals. Does that make the station violate the Commission's warning? "A certain state recently issued a regulation against the advertising of beer and wine. However, such advertising came in through the network from outside brewers and wine growers and the state could not prevent it because it had no jurisdiction over what came in from outside the state. The state brewers made a protest that they were victims of discrimination with the result that the state regulation against beer and wine was rescinded." Commenting upon the Radio Commission's liquor ukase, David Lawrence says: "The problem of whether the Government in one division shall urge the collection of liquor taxes and in another shall refuse facilities to lawful industries or merchants is not really half as important as the question of whether Government bureaus can control discussion or the transmission of sales materials, whether by radio or by printed publications or by circular letters. 4 •• ' V Y ■ • ; ^ '.M Z.Vs-Q /• ... * <1 -v \ £*ii -<• % V i. ’• » -V U -u '..J v ; . r . a a a. fttf.izi. b.ii. ^ ■ ■ ,.HCyf :vr:j. J :.r' '■ vd 77, *7;,; .. a. 7 l ■ ■ I p te'/lo;Siv: |Y;#0C a 77 v&’Axi£ /.&$$:> O: ' 7 a I? : a ‘f .7 a jay , 7 .a •• . , ./. .aa-taya aa T . ;Ca • .i^oO . .; .7 ?a 7 . ..- I ■c~£tf •;■■■-. ^pa.;* i i a; ■ o«f -.-.a .a. — :;v rtf; .7. aa — .. 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V" a - 2/9/34 ’’One of the difficulties in making a test of the new policy is that when a radio station is called on to defend its request for a renewal of a license, the Commission asks the sta¬ tion to show how its continued operation ’will serve the public interest, convenience and necessity.’ Thus the Commission is not obligated to give its particular reason for withholding a license; but the announcement of policy just made unquestionably will fur¬ nish defending stations with a cause for court action if they are refused licenses because they permit over the air announcements which are accepted by the Post Office Department for circulation in the mails. It might furnish some day the first test of the principle of Federal censorship.” XXXXXXXX BULLETIN Richard Patterson, Vice-President of the National Broadcasting Company, said to have made a personal visit to Washington and to have sounded the Radio Commission out on the subject, is reported on excellent authority to have served notice on the Commission that NBC stations would carry liquor advertis¬ ing. If this is true, it is the exact opposite of the policy of Columbia which sometime ago announced that it would not broad¬ cast hard liquor advertising. Station WMCA, New York, was reported as notifying the Radio Commission that it proposed to mention wine in connection with the advertising of a New York hotel. It was prophesied that as a result of the Commission not being more specific in its liquor advertising warning that rather than cause stations to hold off on hard liquor advertising, there would now be a general rush to get on the bandwagon and that soon stations all over the country would be advertising liquor the same as anything else. Ro D. H. X X X X X X X 5 •, t: -T -t- ■ori';- .1 t. ;/ 7. i, k: ■ '> ■ i '.c >jK- A.:; ' , v ■; " ; • ' • • • • - . .• • . , . • •' ; „ « •• • . • • - , . ... , r;- 8 . ‘ ; , . ... , , 0; / . ’•■■■■&' ' ; :-J 4-ik?¥$l 8; ;. .: ■ ;r =• , V * ' "t ' • • ■ ■ ■ \ . i , • - •; T :..••• ... . . !■; „• . . ■ ■ • ->-r ;v, ;3 -vy, , y ; .... ... . . U‘ 8 t -i::..: y.yo:o, ; ; 0 < > r ... ■> i •: Id ■ - J'8l <•' -1 8 f.K , . .; ; < ;{•, , J . ; 8,_.0, , ... ,v; =V^‘ r ■;y-Jy ■ — • - - - . , ’ ‘ x-"-' v"’ -.U : . •. • i .V i- X'.;; , ; ■ 1 8 • !■ ,' i i' '• 'VO') ,.!>x I?.V T ;.V .'o,.:. A ■.,* fi it ;>y :f j W: i 8X8*8 X i;; ,;. , 08 -:^->v8 " - 8 1 K&&4 ! 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" : : ' f 1 : i.,o • "i ■ -8,8.,,.; ... - ’v""'11- . ■•;. : , : , ; 10 88 /.Use i; ; ;; 8;. V 8 , 8 v: 8;.;;,? V = V . ' v ... }.j * ' ' ' ■ • v .... . • • • •' - • ■■ - , .:■• j . ■ • , ; ' ,i. . V,o . .8 • i ■ ' ; 8 88 Oi 2/9/34 March 20 - Ohio Forging Ahead, R. G. Atkinson, Director, The Ohio Institute; March 27 - Improving Local Government in New Jersey, Governor A. Harry Moore; April 3 - Progress in Pennsylvania; April 10 - State and Local Government in the Control of the Liquor Traffic; April 17 - From the Heart of the Depression, Mayor Frank Couzens, Detroit; April 24 - Local Government and the New Deal, Dr. William T. Foster, Consumers' Advisory Board; May 1 - Suburban Troubles; May 8 - Chicago Over the Hump; May 15 - Schools for Municipal Officials, Mayor J. Boyd Thacher, Albany, N„ Y. j May 22 - News from the South, Mayor J, Fulmer Bright, Richmond, Va. ; May 29 - The National Administration and Local Reorganization;- June 5 - The Schools in Local Revival, George F. Zook, United States Commis¬ sioner of Education; June 12 - The Voter and Local Government Revival; June 19 - What are the Prospects? XXXXXXXXX SEES COMMUNICATIONS COMPANIES RECONCILED TO GOVERNMENT CONTROL The New York Times predicts that the telegraph, tele¬ phone and radio companies, the Army and Navy will probably endorse the report which has been submitted by the President's Interdepart¬ mental Committee and which recommends unification of communications under the control but not under the ownership of the Government. "Although the report is not likely to be acted upon at once, it supplies new evidence of a trend toward the Government regulation of public necessities", the Times concludes. "In the much-discussed unification of railroads the technical factor is the rise of the automobile and motor truck. In the case of the telephone, the telegraph, radio and broadcasting, each worthy of development on its own account, we have confusion, waste of effort and an unwieldiness which would weigh heavily on the Army and Navy in time of war* In the light of Mr. Sarnoffss lecture - and Mr. Sarnoff, as President of the Radio Corporation, presumably reflects the views of others in his field - it looks as if the companies, having vainly sought to overcome the evils of duplication by modification of the Anti-Trust Laws, are now recon¬ ciled to Government control, provided they are given a free hand in management and research and an opportunity for profitable expansion," X X X X X X A 10-page printed booklet has been issued by H. W. Forster, Information Manager of the Western Electric Company entitled, "Synchronization System for Common Frequency Broadcasting", covering the proposed synchronization of Stations WBBM and KFAB„ It is a development of Bell Telephone Laboratories, the Research Laboratories of the American Telephone and Telegraph Company and the Western Electric Company. X X X X X X - 10 - I.J, < '■ • * , ssiOf&i'iO 'fr < •' r • 7 ■ ,7. 7 V . ’A 7.: ' X , r. r.’U : 3 % ■ xxXa'V « -T, 3X; ;XX , ;i X:;' " : .7- ; ■od l.'XX .30.r: ■ 3 1 . . ... ■, j .73 : 7 xco3X , I.ov.t'VijtiT ,v33oX 3 3 3'‘ .. 33 T - XI <03.7. 373 3 f o x'X xrXi' 3.^:3 3 33 $ - xx 7.33, ; X X A X X X X X X XOXTXGQ TX2U X il/OX OT x:xx::x;x;,x X... ■ .74 XXOX XXOlTACIiHlMXOC - I : -X X ? r ■. X- .3 17. iXo ■ :ta XX.Xx’I' 7.3X7 Xxl: :-a ? ■ ■ j ;f :.• .; i ’V . Iiio 37 ..■•■■;' X .• \v : /, 3X.r t •’ X..o . ' oo 0 X. .• : h : . at«; ,-I 0X3770: . •: X roll v;X X o- a; : « j ..a . ; f'xUi ;io hix . • Xvo'Xl ; 7 a . 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WIBM, Inc., Jackson, Mich., C.P. to move station locally and make changes in equipment; W CAE t V/CAE, Inc., Pittsburgh, Pa. , C.P. to move auxiliary transmitter from Pittsburgh to Baldwin Twnp, Pa; WMAS . wMAS, Inc., Springfield, Mass., license covering increase in day power and changes in equipment, 1420 kc., 100 watts night, 250 watts day, unlimited time; WFAM , The South Bend Tribune, South Bend, Ind. , license covering changes in equipment, 1200 kc. , 100 watts, shares with YiTWAE; KARK, Arkansas Radio & Equipment Co., Little Rock, Ark., modification of C.P. to move transmitter locally, extend commencement date immediately after this date, and completion date to March 11, 1934; WAVE, WFIW, Inc., Louisville, Ky. , modifica¬ tion of license to change name to WAVE, Inc, ; WORC , Alfred Frank Kleindienst, Worcester, Mass., extension of special experimental authority to operate unlimited time on 1280 kc. with 500 watts, until June 1, 1934 (normally licensed 1200 kc. , 100 watts, unlimited); WSAI, The Crosley Radio Corp., Cincinnati, Ohio, extension of special experimental authority to May 1, 1934, to operate with 1 KW power nighttime, 2j KW daytime, using special directional antenna array (normally licensed 1330 kc., 500 w. night 1 KW day, unlimited); WHEB, Granite State Broadcasting Corp., Portsmouth, N. H. , authority to operate from 3 to 4 A.M. , EST, Feb. 15, in order to broadcast DX program; WLBC „ Donald A. Burton, Muncie, Ind., modification of C.P. to extend completion date of C.P. from Feb. 10 to March 10,1934. Also, City of Hutchinson, Kans.„ C.P. for police service, frequency 2450 kc. , 50 watts; W6XBK , Daily News Co., Ltd., San Francisco, Cal., C.P. for general experimental purposes, frequencies 37600 and 40600 kc. , 15 watts; W8XM, City of Detroit, Police Dept., Belle Isle, Detroit, Mich., license, frequencies 30100, 33100, 37100, 40100 kc., 250 watts; W9XAS , City of Ashland, Ky. , Police Dept., license, frequencies 20100, 33100, 37100, 40100 kc., 15 watts; W9XBF, City of Piedmont, Cal., Piedmont, Cal., license, frequencies 30100, 33100, 37100, 40100 kc. , 15 watts; W6XBG, W6SBH, W6XBI , W6XBJ, Same, Portable & Mobile, same except 2 watts power; W5XF , City of Amarillo, Texas, license, frequency 33100 kc., 15 watts, gen. experimental service; W9XB , Village of River Forest, Ill., Police Dept., license, frequency 41000 kc. , 11 watts; general experimental service; KGHS , City of Spokane, Wash., Police Dept., license, frequency 2414 kc., 100 watts, police service; KGPE„ City of Santa Fe. , Santa Fe. , N. Mexico, license for police service, 2414 kc. , 25 watts. Also, W8X0, The Crosley Radio Corp,, near Mason, Ohio, license (Spec. Exp . ) , 700 kc. , 1 A.M. to 6 A.M. daily, with power of from 100 KY/ to 500 KW ; W2XES, City of Englewood, N, J. , modifica¬ tion of license to change frequencies from 34600 to 3010C kc. ; WCFZ, Irving H. Buck & Howard Folson d/b as Boys World Cruises aboard vessel "Buccaneer", modification of license to include com¬ munication with amateurs; Aeronautical Radio, Inc., Iowa City, la., C.P. for special experimental service 278 kc., 150 watts. 11 2/9/34 Action On Examiners1 Reports Philip J. Wiseman, Lewiston, Maine, denied, application for a new station to operate on frequency 640, 500 watts, limited time, sustaining Examiner G-eorge H. Hill; Harold Thomas, Waterbury, Conn., granted C.P. for a new station to operate on 1190 kc,, 100 watts, daytime hours, sustaining Examiner Ralph L. Walker; Willard G. Demuth, denied C.P. for new station to operate on 1370 kc., 100 watts power, daytime hours, sustaining Examiner George H. Hill; Thomas R. MoTammany and William H. Bates, Jr. , Modest o, Cal., granted C.P. for new station to operate on 740 kc. , 250 watts, power, daytime hours, reversing Examiner R. L. Walker; WMBG t Havens & Martin, Inc., Richmond, Va. , denied C.P. to increase power from 100 watts to 100 watts night, 250 watts, LS, sustain¬ ing Examiner George H. Hill; WPHR, WLBG, Inc., Petersburg, Va. , granted renewal of license to operate on 1200 kc., 100 watts night, 250 watts LS, unlimited time, sustaining Examiner Hill. Applications Denied The following cases, heretofore designated for hearing were denied because applicants failed to enter their appearances within time allowed: John E. McGoff, Julius Schaeffer and Francis Thurston, Newport, R. I., C.P. 1500 kc . , 100 w, 9 hours per day; Henry Clay Allison. Fort Worth, Tex., C.P. 1370 kc. , 100 watts, share with KFJZ (Fac. of KFJZ) ; WDEL , WDEL, Inc., Wilmington, Del., modifica¬ tion license 1120 kc., 500 watts, unlimited time; Richland Sound Systems, Mansfield, Ohio, 1310 kc. , 50 watts, specified hours (Fac. of WHBD) ; KUQA, KUOA, Inc,, Fayetteville, Ark., modification of license 1260 kc. , 1 KW specified hours. Ratification of Acts Of Commissioners Mackay Radio & Telegraph Co. , New York City: KLKR, granted 60 day authority to operate 100 watt transmitter aboard vessel "Uvira" , frequency range 375 to 500 kc. ; KJBI , Granted 60 day authority to operate 100 watt transmitter aboard vessel "American Star", frequencies 375 to 500 kc. ; KJJM, Same except vessel "Nelson Traveler", KWWE, cancelled authority, granted to "American Star" and granted temporary authority not exceeding 60 days to operate 100 watt transmitter aboard vessel "Sacramento"; WGDN. granted 60 day authority to operate 100 watt transmitter aboard vessel "Memory III", frequency range 375 to 500 kc., and 5510 to 16600 kc.; WBDA , Radiomarine Corp. of America, "American Banker", Washington, D. C. , granted 1st class public service ship license for additional transmitter aboard "American Banker"; KIIS. Harris County Broadcast Co., Houston, Tex., authorized to use broad cast pickup station KIIS, 2150 kc., 15 watts, Feb. 9 in connection with welcome of steamship "Houston City". XXXXXXXX 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication INDEX TO ISSUE OF FEBRUARY 13, 1934. Firm Of Amos 1 n' Andy Wins Patent Appeal. 2 James Barrett Heads Radio-Press Bureau.* 3 Greatly Changed Labor Provisions In Manufacturers’ Code Divisional Code Radio Wholesaling Trade Hearing . Europe's Wave Shuffle Is Nightmare . Stepping - But How? . Days of Radio Commission Seen To Be Numbered . Code Committee To Attend President's Conference . Shepard Heads Group Broadcasters . Hearing For Applicants In New Wave Band . Business Letter Notes . Hearings On Border Broadcasters' Bill Thursday . Columbia Reported Considering Public Stock Issue. . $1,000,000 Beer Advertising Association Proposed . 10 Mackay Radio Enlarges Scope . 11 Decisions Of The Federal Radio Commission . 11 /? No. 697 cd cd ^3-vi cn cn> cncn f - ■ c v/l February 13, 1934, FIRM OF AMOS • N 1 ANDY WINS PATENT APPEAL Amos 1 n' Andy, whose burlesques of legal difficulties are nationally famous, have been victorious in their effort to prevent a manufacturer from using what they have successfully con¬ tended is their firm name, "Amos 'n* Andy". The United States Court of Customs and Patents Appeals has affirmed the decision of the Commissioner of Patents denying Feldman & Sons the right to register the trade-mark "Amos ' n' Andy" for work shirts, which mark had been used on such merchandise for the past four years. The appelland contended that the real name of the firm was Correll and G-osden and that "Amos 'n' Andy" were simply the characters they portrayed. Judge Oscar E. Bland set forth in his affirmative opinion that Correll and Gosden for several years had been associated as partners in the broadcasting of "Amos * n' Andy" episodes and had made phonograph records "which records bear the firm name of *Amos ' n' Andy'"; that in 1928 they adopted "Amos ' n' Andy" as the name of their partnership. Judge Bland stated further "that their partnership agreement was an oral one and each partner contributed one-half of the funds required for the expense of carrying on the business; that they had first conducted their business from their residence in a hotel in Chicago; that in February, 1929, they had cards and stationery printed showing their firm name, Amos and Andy; that in September, 1929, they established offices in the Palmolive Building in Chicago, and purchased the necessary furniture and equipment, had their firm name, Amos and Andy, lettered on the door, and since that time have conducted their partnership business from that place under that name; that under said partnership agree¬ ment they had shared equally the profits which resulted from the business; that during the conduct of said business they had received a great amount of correspondence in the name of Amos and Andy and had answered the same under that name; that their personal represent¬ ative, Alexander S. Robb, handled their bookings and appearances in theatres, and in so doing used the name Amos and Andy, as the firm name . "Various exhibits, showing the use of the said firm name on cards, stationery, door lettering, talking machine records and advertisements, were submitted with the notice of opposition. Said stipulated facts show ownership in opposers of design patent grants ed to Louis Marx for a design patent on a toy named 'Amos ' n' Andy Fresh Air Taxicab. ' "It is appellant's first contention that his mark "Amos 'n' Andy" is printed in a distinctive manner and is therefore not barred from registration by the provisions of the disputed section. 2 ' : 1 .?oi3A 'vo : ;o: \ > - y. y y.L o:y V. y y y jo ;y .y y 'yy'y.y O £ •):<.» - 5 1 V . O 00 ■ :u/o i . v;- *:.s . , v. i. . ■ ■ - ' "i :■ ■ ;• ■ Y. 7? V l :y "ii £ ‘ . y JSSii - .77 . t . ► L‘{h . 77.: 7:'i : 77 7 . 1'- Y.' - -v 7 hi y' '."V/i I y. , V y . y 7:0 •" 7 : ; £ . ;xu;J.b:LpB : .:. j yJ 07 : .1 y..'y yy.;. y V.l ..A ‘ yV:yy/:; /r : yii.c) 7 Y.Y'; 710 tv •: •' .. ■ * ::: : * ^ ic ••••. f- •.■ -77 bot-ooi • .0. 1 1. j . .. •• y. • - ; y.:rr - :: : : -o a : a :■ .! i i . . O v.; v ? • , ! • V , . ■ dfzol Jv-: JOY'-; y^-- 'IV..’ 1 7. - y Cfii/y v* y t.:o ; ..... ?! - : 7 1 0 y y y.) •• • iryto. COO y . 'v o y;.y; ; ■ ■ 00 >7 •'.■ . yy y-y y cxo. y :• y ' • 7 y . / .. ■ 1 V 7 i ; ■ . »:.■* v : ' _-y ■ • , - 7 7. 7 . y v h ;& :ViC i v-yo y • y Y vY:/ : .y C :ot ; : t y . j : ' . o y .V : : ^ U (y. ,01 . - - '«'■ v'- ’ :./:l a,i f r:< • . : ^ . r ". 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'i 3 ; J\ i yy:; . v 0/03 y y y a ■■ . y y;. r-.i. a y . r , J . . .: : ■ 1 f : ■.yyiiry; ■ • y ! > ) 1 ' V / ■" ' f : y y yy t.* y - >i &.ti y 1 ‘I j . • ■ • ; ;■> l- - . , ■••• ; ••• ; •. , r . o?q.y , a ■ ■’ s . .u x .7 y. :: y 'I : " • ■ t ’ 2/13/34 He argues that by reason of the elision, 'n' , between the words 'Amos' and 'Andy', which is a substitution for the word ’and’, it presents a different appearance and sound from the term 'Amos and Andy', and is to be regarded as printing the term in a distinctive manner within the meaning of the statute. "It is further contended by appellant that 'Amos * n' Andy' or 'Amos and Andy' is not the name of a firm within the meaning of the act, and that all of appellees' exhibits and statements show that 9 Amos and Andy' or 'Amos 5n* Andy* are not the names of a firm, but constitute merely an advertisement of dramatic perform¬ ances, and that the design patent in evidence shows conclusively that the term 'Amos 'n* Andy' is not used as the name of a firm, but that it there, as elsewhere, assumes the nature of a trade¬ mark. It is pointed out, however, that the term is not a trade¬ mark term for the purposes of this case, since it is conceded that the opposers have never used the term in connection with the sale of merchandise." Appellant then proceeds to discuss the fact that the business in which the term 8Amos and Andy" has been used is not the same or a similar business as that in which appellant is engaged, and that the articles in connection with which the term is used are not of the same description. XXXXXXXX JAMES BARRETT HEADS RADIO-PRESS BUREAU James W. Barrett, former city editor of the New York World and of the New York American, has been appointed editorial head of the central news bureau which will select the press association news to be given to radio broadcasters for two five- minute daily broadcasts as stipulated in the agreement between publishers and broadcasters announced last week. The cooperative plan between the press and radio becomes effective March 1, a.nd preliminary work on the organization of the bureau is going forward. The committee organizing the bureau consists of Mr. Friendly, Chairman; Hugh Baillie, United Press; Lloyd Stratton, Associated Press; Joseph V. Connolly, International News Service; Frank B. Mason, National Broadcasting Co., and Paul White, Columbia Broadcasting System. Station WOR, Newark, N. J., announced that as an inde¬ pendent broadcaster it would adhere to the new rules. X X X X X X 3 • ' ... :: o : ..: ^ ..... ! . ■ . s f i .i .■« • vitj ■ T ■ ; f*.§& J;' i r >f .- . rioss ■ r no UV l si . ' vs-:; yT-y iJi.CJ ;.>yy P 'Piap •?' " V r t -:r; yy y-i yyyy-;.; y CP . r.'-'J' • ...;•:? 1 y . > ' i . ■: • :\;t rrv* yi ■ p .■ ■: : . ; y.T f ■;.,.. • ♦ ...?3 ■ - r. i : ' : -■ . frHoh :y- £if* y: irr-y: r;1:> :< ; ' y .y y; y :>?y : = ■ i. U •. ■ , •. s, • v; v • .• : ■.’•Tj'J'r le yy: yy PCP -r ; Vt, .. £ i ^ -. •' f ,, ■yy: ; ' „. : , . y : r . -,A } J ,7 - y; J '. .. ; ;y.y.y . :. •; 7 :• 6 ar v : yyy ■ 7 ■ . ' ■ - . • i . ; y - - ■ - ■ J:.: : . J; ■ 7,7 ■ J. \ M-" yy. ! V ■ •* .... . , : ; ■ ; 'j H?:* j:,hi : : . ' • ■ 7. , frVitJ , t if ' . . i 'SYti j .;.. . ... . '■••■noo ;.. :.r. ...' ' J .: ■ , J ; : ttJ Y < : ....--v -V ! I • ‘X ‘X V . V ■ : -J.;.;.? a .■ j ■! ' ■ - :■ J.r •. : : ; ,r . • rr.: . - ” vr ■■ J. fra - ' .'.a -..y ■: or.. O a, ' . . a ^ H . , :■ . .; . if 1 o 0 a t r ■ ; . L J ■ ... Tt.-. ,>;.;a > . tc •' • - • . Y ‘ll * a a - . . f ....?* V / - t r ’ . a .: a : . ■ ■ . . , . . a ., • ■ .. . . i.c i. i t Jifi : / y:' y. y. 1 ■ ' ■ : : ■ / y- 6 . ■ y- cr a ip 6 J r y- . y ; : pO xvp -f •; 'v;y; a i. P . *rf: ; ^ - j ; y ’y.' -. ay y/ a v ' ... • ' ..y. cJ y.:'c;y." ~y .y . ••a... . • r-' py- j-.-1 ... ; a yiyy hih :.ij i a i- :y.( c a v y v y ;.y > ; yy . ; yv • . • ao vy • v •• .-Ty ...... ... ,. Ki. f .. .... ... -. ■ ■ it?:.! v. ; j : y iyy / ;o ir> ...t ... ;■ 1 a ' ; , . : / . V *i. ; i.' . : . ;• i ' :■ : i < v.- [y y . , • ,. v ■ t .. . ... | t y. aa-Piy . A : i 5 y rf: T \i . y r ;; y; v . y . 5 y ; ’ ■ (y: : n , ’ . ., 'i .t .., • \\ ■ ■ ... . ; •. y. •; :. - H ■ , V V V V y l '7': • -. .. K.y 2/13/34 GREATLY CHANGED LABOR PROVISIONS IN MANUFACTURERS' CODE Virtually a new, or substitute, code for the Electrical and Radio Manufacturing Industry, under which radio manufacturers operate, was submitted to the NRA at Washington. Many witnesses, voicing strong attack upon and defense o: the proposed code revisions were heard at a session last week by Deputy Administrator H. 0. King of the NRA, attended by a number of radio industry representatives. The hearings were adjourned subject to indefinite future call. Two or probably more months may elapse before the new code, with many probable future revisions is finally approved by the NRA and President Roosevelt. In the meantime, the existing code will continue. The new amendments, submitted to NRA by the Board of Governors of the National Electrical Manufacturers' Association but without previous submission to or consideration of the electri¬ cal or other industries, propose a national uniform minimum wage of 400 per hour for males and 32-g-0 per hour for females (with a Southern differential), and would eliminate the Julyl5, 1929, sub¬ minimum rate of 320 in the present code. In North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi and Louisiana, the newly proposed rates are 32 0 per hour for males and 270 for females A 36-hour week is provided in the new code amendments but not until the metal working and capital goods industries effect a similar maximum week for similar employees. Until the metal work¬ ing and capital goods codes become uniform a 40-hour week would prevail under the proposed code. On overtime of employees, the amendments propose a 48- hour week limited to twelve wee ks annually until the metal working and capital goods codes are uniform, and a 44-hour week for any 12 weeks annually thereafter, plus a controverted provision for special overtime arrangements in supplemental codes. The present unlimited "seasonal peak" overtime clause, of the existing code, would be abolished. The "Open price" plan of publishing prices and discounts has an amendment proposed to establish resale price maintenance by contracts with jobbers and dealers, but this and, in fact, the entire "open price” plan is under sharp attack in Washington and is expected to be materially revised if not entirely eliminated. XXXXXXXX DIVISIONAL CODE RADIO WHOLESALING TRADE HEARING Notice was given through the office of Divisional Administrator A. D. Whiteside that a public hearing will be held Saturday, February 24, in Room 2062 of the Department of Commerce Building in Washington, on divisional code for the radio branch of the wholesaling trade. The code will establish fair practice rules and provide separate administration for the radio division subject to the labor provisions of the master code for the Wholesaling or Distributing Trade. ° Y Y Y Y Y Y - 4 - X X X X X X 2/13/34 EUROPE’S WAVE SHUFFLE IS NIGHTMARE Europe has had a grand reshuffle of wave-lengths, and slightly bewildered listeners are wondering why* Thirty-five countries took part in a conference at Lucerne. A new plan to clean up the ether was prepared, to which twenty-seven countries agreed and eight did not. Of these eight, Holland, Sweden, Finland, Lithuania, Luxemburg, and Poland quarreled with the long-wave allocations. In spite of this, the International Broadcasting Union, which has its headquarters in Brussels, determined to put the plan into operation in the fond hope that the malcontents would come into line at the last moment. "January 15 was the first night for Europe’s rearranged orchestra of 230 stations", the New York Times reports. "Brussels lifted its baton and began to conduct. The result was a maddening medley of shrieks and whistles beside which Stravinsky’s 'Fire Bird’ is sweet music. In the long-wave band some stations changed and some did not. Eiffel Tower (Paris), which should have closed down altogether, just kept on talking, violently hetrodyning Daventry (England). Huizen (Holland) ignored the new plan and stuck to its old wave length; so did Warsaw, Radio Paris adopted a new wave but not that prescribed by the plan. Minsk, Russia, also obligingly provided a background for England’s big station at Daventry. "Brussels changed its role from conductor to tarffic cop. Frantic orders were issued. Daventry hastily adopted another wave, but unfortunately one closer to Eiffel Tower. Meanwhile, Luxemburg, which had been banished to the medium waves, ran up the black flag in flat defiance and, seizing the long wave of 1,304 meters, began bawling away with the full force of its 200 kilowatts. "In the medium wave-band things were better but there was plenty of confusion. X X X X X X X STEPPING - BUT HOW? Someone recently called the liquor warning as a "step in the right direction." "What direction?" an official of the Commission, who was not in sympathy with the "warning" inquired. He said the Commis¬ sion’s statement was "absolutely obscure and meaningless", and that in issuing it the Commission "walked down both sides of the street. XXXXXXXX 5 2/13/34 DAYS OF RADIO COMMISSION SEEN TO BE NUMBERED It seems as if they are getting ready to put the skias under the Federal Radio Commission. President Roosevelt has approved the idea of a simple bill creating a Communications Commission. If Congress is of the same opinion, the new radio regulatory body, absorbing the present Radio Commission, v/ill be created this session. It is believed the writing of the new bill may be completed in two weeks, if not sooner, at which time it will be submitted to President Roosevelt for his approval. Senator Dill said that the bill would contain no con¬ troversial features. In that case time would be saved as then it probably would not be necessary to hold hearings. If, however, there are controversial features such as the appeal section sponsored by Senator Dill in the omnibus radio bill which was passed by the House and Senate in the last Congress but not signed by President Hoover, the industry will call for a hearing, "We'll see the bill before we start any shooting", said a broadcaster. "If it is simply a matter of patching together the Radio Act and those portions of the Interstate Commerce Act relating to Communications, O.K., but if portions of Dill’s old bill come walking in or they try to stick in anything objection¬ able, you will hear from us," Asked if he thought the rate fixing power carried over from the Interstate Commerce Act will affect broadcasting as well as communications, the above informant replied, "I think that will come later." The new bill will have "very limited powers", according to Senator Dill but will conduct a careful survey into many situations and develop its jurisdiction later. One of the big questions to face it will be the unification of the telephone, telegraph, cable and radio communication services. One report has it that the new Communications Commission will be composed of seven members, a Chairman and two Commissioners each representing the following groups - broadcasting, telephone and telegraph (wire and wireless), and cables. XXXXXXXX CODE COMMITTEE TO ATTEND PRESIDENT'S CONFERENCE A meeting of the Broadcasting Code Authority has been called for Saturday, March 3, preliminary to the members attendin the conference of Code Authorities and Trade Associations called President Roosevelt in Washington, Monday, March 5. The confer¬ ence will consider primarily a 10 percent reduction of industries’ working hours and a possible increase in wages. 6 o'cn t *!• o *: ... ' 2/13/34 The report concerning the shorter-hour proposal, if cor¬ rect, would mean a reduction for a large part of American industries from an average of forty to an average of thirty-six hours. Most of the codes provide for the average forty-hour week. It would also mean an increase of 10 per cent in the hourly pay, so that the cost of the shorter work-week would not be borne by the employees. There are industries, however, that have hours longer than the generally prevailing forty. In these the 10 per cent proposal still would be urged. For instance, if an industry is allowed to work employees forty-eight hours, it would be asked to reduce this work-week by 10 per cent. Thus, it was said, industry would further spread employment and maintain purchasing power. XXXXXXXX SHEPARD HEADS GROUP BROADCASTERS John Shepard, III, of Boston, has been elected head of Group Broadcasters, Inc., a group of stations banded together for the purpose of selling time. The Executive Committee is composed of Alfred A. Cormier, General Manager, WOR, Newark; Harry Howlett, WHK, Cleveland; I. R. Lounsberry, Vice-President, WGR and WKBW, Buffalo; Arthur B. Church, Vice-President, KMBC, Kansas City, and T. P. Convey, President, KWK, St. Louis, Though 22 stations have already allied themselves with Group Broadcasters, the stock ownership and operating control of the organization remains permanently in the hands of the 10 charger outlets. All stations outside of this 10 will take the designation of associated members. Under the Group Broadcasters* plan of selling an advertiser must contract for a minimum of 10 stations out of the group to be eligible for the group rate. X X X X X X X HEARING FOR APPLICANTS IN NEW WAVE BAND A hearing date of April 4th has been set by the Federal Radio Commission for those applying for the newly opened wave band. They are: John V. L. Hogan, Long Island City, N.Y. (experimental broadcast) 1550 kc. , 1 KW, unlimited time; to be heard by the Commission; L. M. Kenneth, Indianapolis, Ind. , same as above except 1530 kc. , American-Republican, Inc., Waterbury, Conn., same as for L. M. Kenneth; and Fred W. Christian, Jr. , and Raleigh W. Whiston, d/b as Christian & Whiston, Norco, Cal., same as above except 1570 kc. X X X X X 7 2/13/34 BUSINESS LETTER NOTES NBC gross time sales for January, 1934, amounted to $2,373,923, a plus of $504,038 over January, 1933. This is a 27 of all network revenue for the month." The condition of Thomas P. Littlepage, well known radio counsel, who is confined to the Emergency Hospital in Washington, is reported as improved. Mr. Littlepage was taken to the hospital over a week ago suffering from pneumonia. He had just recovered from a broken arm sustained in a fall on the ice early this year. It is expect¬ ed he will be released from the hospital next week. The government of Spain henceforth will prohibit all political speeches by radio, Diego Mart inez-Barrios , Minister of the Interio, according to the Associated Press. "In the event that citizens want this political information", he added, "they must attend the speeches or buy newspapers." The NBC has just released a folder announcing the fact that seven of its network stations have been granted power increases within the past several months as follows: YvBZ (Boston) to 50,000 watts; WHAM (Rochester) to 50,000 watts; KVOO (Tulsa) to 25,000 watts; WFI and WLIT (Philadelphia) to 1,000 watts; WSAI (Cincinnati), to 1,000 watts; WTAG (Worcester; 500 watts. XXXXXXXXXX 8 2/13/34 HEARINGS ON BORDER BROADCASTERS' BILL THURSDAY Hearings on the amendment to the Radio Act which would prevent studios to be located in this country with a station in a foreign country and broadcasting back into the United States will be held at the Capitol, Thursday morning, February 15, The first hearing will be at 10 o'clock with Representative Bland, of Virginia, and the House Merchant Marine and Radio Committee, The second hearing will be held at 10:30 o'clock by Senator Dill, of Washington, Chairman of the Senate Interstate Commerce Committee It will be the first hearing the House Committee has had on radio since the new crowd has been in the saddle and it is just possible they may have a few questions to ask about radio generally. Henry A. Bellows, Chairman of the Legislative Committee will represent the National Association of Broadcasters at both hearings. X X X X X X COLUMBIA REPORTED CONSIDERING PUBLIC STOCK ISSUE Columbia's stockholders, who at present comprise William S. Paley, Sam Paley, Herman Paley, L. D. Levy, Leon Levy and Lehman Bros., bankers, meet today (Tuesday) to put their stamp of approval on a stock issue for public consumption, "Variety" reports "Move, which has been under consideration for several months, will entail the pooling of 25% of each one's CBS holdings. Shares represented by this pool after the network's capitalization has been boosted will be the stock released to outside investors. "CBS Board of Directors has recommended that the old stock setup be revised, which would increase the present allotment of 75,000 shares of Class A stock to 375,000 shares, and the 75,000 shares of Class B stock to 375,000 shares. "On the 150,000 shares of the original issue there is no par value. It is proposed to give both the Class A and Class B stocks of the converted 750,000 unit a par value of $5. Of the original capitalization only 63,250 each of the Class A and Class B have been issued. "The Public was informed of CBS's proposed recapitaliza¬ tion last week when the brokerage house of Wertheim & Co. advertised the availability of the stock, when and if issued. Balance sheet supplied to inquirers by this firm gave the CBS assets as of Dec. 1, 1932, as totaling $2,462,134, and liabilities $829,607. Columbia, said the statement, earned in 1932 a surplus of $$3,676,535 and paid $4 a share. Surplus earnings for 1931 were $2,502,459. There were no figures for 1933 in the Wertheim balance sheet. - 9 ~ 2/13/34 "Wertheim statement was prefaced with the notation that the firm was not making an offering, but merely creating a market for the CBS stock when and if issued. Statement also related that the stockholders' meeting today (Tuesday) will amend Columbia certificate of incorporation by increasing the present capitaliza* tion of $2,025,000 to an authorized capitalization of $3,750,000, of which stock aggregating $3,162,500 in value will be issued, with this increase in capital to be effected by a transfer from the surplus. Under this move the present stock will be convertible into five shares of the new." XXXXXXXX ADVERTISING $1,000,000 BEER/ASSOCIATION PROPOSED The brewing industry should expend at least $1,000,000 a year on collective advertising to advance beer sales to the peak attained during the pre-prohibition era, according to C. D, Will¬ iams, of New York, Secretary of the United States Brewers’ Associa tion. Attending the 58th annual convention of the organization at Atlantic City, Mr. Williams advocated the establishment of an Advisory Research Commission to formulate a comprehensive advertis ing program for the industry. The Association hopes to be ready t submit details to the members at the Fall meeting, probably in New York next October, he said. He stated that the set-up would probably include news¬ papers, magazines, billboards and radio. The $1,000,000 suggested for group advertising is but a small sum to handle the trmendous job of bringing beer back to its place in the sun, Mr. Williams declared. The brewers them¬ selves are exceeding that sum in pushing their own output. Dr. Paul T. Cherington, of New York, consultant on dis¬ tribution problems said that estimated figures for beer advertis¬ ing done by individual brewers during the nine months ending with December were as follows: Newspapers, $3,876,000; Billboards, $2,250,000; Maga¬ zines, $677,800; Radio - Network - $348,000; Radio - Spot, $200,000; Total - $7,351,800. X X X X X X 10 I ' o • • 2/13/34 MACKAY RADIO ENLARGES SCOPE The extension of the present Mackay radio system into the short-wave communication field in foreign as well as in domestic point-to-point traffic in opposition to existing companies now operating, was confirmed this week by A. Y. Tuel, Vice-President in Charge of Radio Research in the Mackay Radio and Telegraph Co. , according to A. G. West, in the Editor & Publisher. "Hitherto the Radio Corporation of America has been exclusive in this field, but since the policy of the United States Government has always encouraged competition in telegraph and cable operation with a view to improved service and lowered costs, the present plans of the Mackay system are merely in line with the best American practice”, Mr. West continues* "Sixteen new channels ranging from 4,000 KC to 16,000 KC have been requested from the Federal Radio Commission at Washington, in addition to a number of other frequencies now pending or already obtained on the short wave band by the Mackay interests. This situation, it is said, should have the almost immediate effect of creating a decrease in former rates in the near future to such cities as Shanghai, Tokio, Buenos Aires, Madrid, as has already been announced with the new circuits recently installed to Chicago, New Orleans, Seattle, Portland, Ore., San Francisco and Los Angeles. "Construction permits have already been granted to two new stations for Atlanta and Kansas City, according to Mr. Tuel, on the domestic hook-up. These key cities, as well as the ones already mentioned above, are centers for important air transport operations, and will no doubt have interesting possibilities when air message traffic comes into its own," XXXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION WCNW, Arthur Faske, Brooklyn, N. Y. , modification of C.P. authorizing approval of transmitter site in Brooklyn, completion of construction by May 1, 1934; WHDF 8 The Upper Michigan Broadcasting Co., Calumet, Mich., modification of license to change specified hours of operation; WSAZ . WSAZ, Inc., Huntington, W. Va. , modifica¬ tion of license to increase power from 500 watts to 1 KW; WHBU , Anderson Broadcasting Corp. , Anderson, Ind. , C.P. to rebuild sta¬ tion destroyed by fire, install new equipment and move transmitter and studio within building, 1210 kc. , 100 watts, unlimited; WKBV, d/b as Knox Battery & Electric Co. , Richmond, Ind. , special tempor¬ ary authority to operate from 8:30 to 10 A.M. and from 1 to 6 P.M. CST March 2 and 3; and from 1 to 6 P.M. CST on March 10; KVOA, Arizona Broadcasting Co., Inc., Tucson, Arizona, special temporary authority to operate from 3 to 6 P.M. MST, Feb. 17 and 16; KF JB , Marshall Electric Co., Inc., Marshalltown, la., special temporary authority to operate from 9 P.M. to 12 Midnight CST, Feb. 17. - 11 - 2/13/34 Also, City of Chicago, Ill., Dept, of Police, C.P. (Gen. Exp.) frequencies 30100, 33100, 37100, 40100 kc. , 15 watts; Ralph E. Carroll, Gainesville, Fla., C.P. (Gen. Exp.) frequencies 30100, 33100, 37100, 40100, 86000-400000 kc. , 50 watts; City of Los Angeles, Cal., Dept, of Police, Mobile, C.P, (Gen. Exp.) 30100, 33100, 37100, 40100 kc., 5 watts: Same - Portable; Same, except 50 watts; Stromberg-Carlson Tel, Mfg. Co., Rochester, N. Y. , C.P. (Gen. Exp.), frequencies 30100r 37100, 40100 kc. , 100 watts; Same - Mobile; City of Berkeley, Cal. Dept., of Police, Portable and Mobile, 6 new C . P . s ( Gen . Exp . j , frequencies 30100, 33100, 37100, 40100 kc., 25 watts; Peoria Police Dept., Portable & Mobile: #9XBB W9XBC W9XBD W9XBE W9 XBF W9WBG W9WBI W9XBH W9XBJ W9XBK, licenses (gen. exp.) 30100,. 33100, 37100, 40100, 86000-400000, 401000 kc. and above, 4.5 watts; W3XS, Commissioners of Lower Merion Township, Ardmore, Pa., license ( Gen. Exp.) 30100, 33100, 37100 kc. , 15 watts; Also, W6jCBt Earl A. Nielsen, Portable & Mobile, license (gen. exp.) frequencies 3110, 34600, 37600, 40600 kc., 3 watts, for period ending June 1, 1934; W9XBA, Peoria Police Dept., Peoria, Ill., license (Gen. Exp.), frequencies 30100, 33100, 37100, 40100, 86000- 400000 kc. and above, 100 watts, for period ending June 1, 1934; Transpacific Communication Co. , Ltd. , Dixon, Cal., KWU KWO KWY KWX KWV, modification of license to add special authority to communicate with ships in the Pacific area at times when the apparatus and/or frequency is not required to provide pt. to pt. service. Action On Examiner (s Report Leo J. Omelian, Erie, Pa., C.P. granted for new station to operate on 1420 kc. , 100 watts, unlimited time, sustaining Exam¬ iner Geo. H. Hill (Commissioners Hanley and Lafount dissented). Miscellaneous WHAD, Marquette University, Milwaukee, Wis., reconsidered and set for hearing, application for consent to voluntary assignment of station license to WHAD, Inc., because of protest of Station WISN. Ratifications Action taken Feb. 9th: City and County of San Francisco Dept, of Electricity, San Francisco, C.P. granted, frequencies 30100 > 33100, 37100, 40100 kc . , 15 watts; Same - Portable & Mobile, granted 2 C.P.s same as above, except 2 watts, and Portable & Mobile* X X X X X X 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication INDEX TO ISSUE OF FEBRUARY 16, 1934. Experiments If Allowed May Banish Clear Channels . 2 Senator Dill Commends American Radio System. . . 3 Eddie Rails At Free Broadcasts And Other Things . 4 Would Tighten Up On Station Discrimination Or Censorship . 5 Congress Gets Anti-Lottery Broadcast Bill . 6 Senate Committee Approves Remote Control Amendment.... . 7 Radio Commissionership Appointment In Doubt . 8 Wave Policing Increases Shanghai Radio Popularity . 9 Madrid Treaty Consideration Postponed . 9 Congressional Members To Visit Radio City. . . 11 Printed Copies Of Radio Wholesalers' Code Available . 11 Business Letter Notes . 12 No. 698 February 16, 1934. EXPERIMENTS IF ALLOWED MAY BANISH CLEAR CHANNELS The Federal Radio Commission, sitting en banc, he*ard applications for the most pretentious and ambitious plan for simul¬ taneous operation of high-powered stations on the same channels yet attempted. Should the applications be granted and the proposed ex¬ periments prove successful, it will likely mean the Commission will change its policy regarding clear channels and adopt the proposal of Senator C. C. Dill, Democrat of Washington, Chairman of the Inte state Commerce Committee, who has contended for years that there is an awful waste of radio facilities by the Radio Commission in assigning only one station for operation on a clear channel at nightime. The applications before the Commission are thos of Sta¬ tions KTHS, operated by Hot Springs Chamber of Commerce, Hot Springs, Ark., which asks to change its frequency from 1040 kc . , sharing time with KRLD , Dallas, Texas, to 1060 kc. and to operate simultaneously with WBAL , Baltimore, on that channel from 6 A.M. to local sunset, suspending operation from local sunset to 8 P.M. Central Standard Time and then unlimited time from 8 to 12 P.M. Station WBAL, Baltimore, asked the Commission for special experimental authorization to operate from 6 A.M. to local sunset at Hot Springs and then simultaneously with KTHS until 9 P.M. and to synchronize with WJZ, New York, on 760 kc from 9 P.M. with reduced power. WTIC, Hartford, Conn., seeks to change its frequency from 1060 kc to 1040 kc. and to operate simultaneously with KRLD, Dallas Texas on that channel unlimited time. Frederick R. Huber was the chief witness for station WBAL Asked his qualifications for running the station, Huber said blushingly : "Well, that is for the Commission to Judge. I have been the director of the station since its establishment about 8 years ago. I have charge of its policies and am in control of its pro¬ grams. As to my training and experience: For some years I have been the director of the Municipal orchestra in Baltimore, manager of the Lyric Theatre, head of one of the departments of the Peabody Conservatory of Music and the Baltimore representative of the Metropolitan Opera Company." Mr. Huber pointed out how the granting of the application would extend the service of WBAL so as to accommodate large groups of listeners v;ho like its programs. 2 2/16/34 It was brought out during the WBAL hearing that the operating revenue of the station in 1933 was about $100,000 and the expenses about $4,000, leaving a profit of $4,000. For some years it was disclosed the station was operated at a loss, the deficit being made up by the Consolidated Gas & Electric Power Company, the parent concern, who charged it off to advertising. Daniel A. Reed, Secretary and General Superintendent in charge of WTIC disclosed that in 1933 the station had an income of $130,000, and that it created a deficit of $350,000, which was taken care of by the Travelers Insurance Company, the parent company. Reed testified that the ill-starred synchroniza¬ tion with WEAF, which prevailed between March, 1931, and was ended in June, 1932, when the Radio Commission refusea to renew that authorization, "cost WTIC $75,000*" Thomas Gooch, publisher of the Dallas Times-Herald, and licensee of Station KRLD testified that his station in recent years has been clearing about $5,000 per annum. He said he was anxious to secure more time on the air so as to provide a better outlet for the Columbia Broadcasting System in that area and to add some important local programs. Stout opposition to the proposed shifts of frequencies was registered before the Commission by Station WESG, licensed to Cornell University,- now operating on 1040 kc. and by stations KWJJ, Portland, Oregon, and WJAG, Norfolk, Nebr. , both of which are now operating on 1060 kilocycles. X X X X X X SENATOR DILL COMMENDS AMERICAN RADIO SYSTEM Senator Dill, of Washington, who along with Representa¬ tive Bland, of Virginia, is framing the new Communications Com¬ mission Bill, gives his approval to the American system of broadcasting. "The greatest advantage of the American system of private ownership of radio facilities as against government ownership in other countries is that our system arouses private initiative and has caused American radio to keep far ahead of radio develop¬ ment in all other parts of the world", Senator Dill said. "The rapid development of the art of radio communication is far more important than incidental objections to the kind of advertising or the amount of advertising in radio broadcasting, or to seeming temporary advantages of governmental monopolies of communication systems in other countries. These objections and those seeming advantages can be readily overcome when the art of radio communication has reached its fuller development. " X X X X X X X 3 2/16/34 EDDIE RAILS AT FREE BROADCASTS AND OTHER THINGS Although Eddie Dowling, appointed by President Roosevelt as a government member of the Broadcasters 1 Code Authority didn’t turn up at the Authority's meeting either day in New York, he found time to address a meeting of the Associated Motion Picture Advertisers and to declare that free admission to broadcasting studios must stop. As quoted in a New York dispatch, Dowling had embarked on a drive to end the much-complained-of practice of radio stations, whereby they admit large audiences to studios to witness broadcasting and charge them nothing for the privilege. He promised he would do everything in his power to’ achieve this end. "If I had my way", said Dowling, I'd stop free shows, sponsored by radio broadcasters. That sort of thing cannot continue . "It is not right that 2,000 people at one time should see free entertainment, taking all this business away from the box office. If a broadcast is worth seeing, it is worth paying for. "I wish you would all help me. This is your fight as well as mine. The fight is in the open, and they have got to stopl " Members of "Big Hearted Herbert ", Dowling ' s latest theatrical production, were introduced to the lunchers. Eddie took another shot at the industry in an article, "Radio Needs a Revolution" in the Forum and Century, in which he wrote : "It is our concern to ask why radio broadcasting today should be in the hands of electrical combines. The invention of the linotype did not turn the policy and practise of journalism over to mechanics and machinery salesmen. Nor did the invention of talking pictures turn the film industry over to sound engi¬ neers or apparatus salesmen. And yet radio, already as great a factor in our national life as one of these and rapidly becoming a serious rival of the other, is and always has been dominated absolutely by the close knit industries of its technical manu¬ facturing and production branches. " All of which is causing Eddie's fellow members on the Code Authority, several of whom have not as yet met him, to wonder how much, if any, dynamite he intends to inject into the Code sessions. X X X X X X 4 2/16/34 WOULD TIGHTEN UP ON STATION DISCRIMINATION OR CENSORSHIP Representative McFadden, Republican, of Pennsylvania, who recently accused the Administration of using the radio for its own purposes, and who has a resolution pending for the investigation of the radio industry, has introduced an amendment to the Radio Act aimed at political and religious censorship or discrimination on the part of broadcasters. The text of the McFadden amendment follows: "No person, persons, company, association, or corpora¬ tion owning and operating a radio broadcasting station, and receiving and broadcasting radio programs for hire, shall dis¬ criminate in the use of such station in favor of a program of speech sponsored by any person who is a legally qualified candi¬ date for any public office, and/or by any religious, charitable, or educational company, corporation, association, or society or any other like association or society, and against or to the exclusion of another person who is a legally qualified candidate for any public office, or of another religious, charitable, or educational company, corporation, association, or society chartered or licensed under the laws of the United States, because and for the reason that such person, religious, charitable, or educational company, corporation, association, or society holds and promulgates and advocates views contrary to those expressed in programs that have been broadcast. The owner, lessee, or operator of any broadcasting station contracting for or accept¬ ing and broadcasting radio programs for one legally qualified candidate for a public office, and for one class of religious, charitable, or educational company, corporation, association or society, and refusing to contract for or to accept and broad¬ cast for hire radio programs of speech offered for broadcast by another legally qualified candidate for a public office, or by any other religious, charitable, or educational company, corporation, association, or society within the provisions of this section, because or for the reason that such legally quali¬ fied candidate, or such religious, charitable, or educational company, corporation, association, or society holds or promulgates a contrary or different view from that which is expressed by the person or parties broadcasting programs, shall be deemed guilty of an unlawful discrimination. All persons, companies, corpora¬ tions, or associations owning and operating a radio station who shall be guilty of a misdemeanor shall be punished by a fine of not less than $500 nor more than $5,000, and in addition thereto may be required to forfeit the license for operating such broad¬ casting station. "No person, persons, company, association, society, or corporation shall by threats, or by coercion, or by misrepre¬ sentation, or any other like manner interfere with or prevent, or attempt to interfere with or prevent, the broadcasting of any radio program by any owner, lessee, or operator of any radio broadcasting station; or interfere with or attempt to interfere with, or to prevent any owner, lessee, or operator of any radio 5 t* ; ' i . 2/16/34 broadcasting station from entering into a contract with another person, persons, company, association, society, or corporation, to accept, receive, and broadcast programs of speech and music by radio. No person, persons, company, association, society, or corporation shall induce or attempt to induce any person, persons, company, association, society, or corporation to withdraw business or financial support or social intercourse from any radio broad¬ casting station, or the owner, lessee, or operator of any radio broadcasting station in the use and operation of such radio sta¬ tion or in the broadcasting of any and all programs offered to be broadcast, or which may be broadcast at any such station. Any person, persons, association, society, or corporation violating this section shall be guilty of a misdemeanor punishable by a fine of not less than *500 nor more than $5,000, or in the case of an individual or the responsible officials of an association or corporation, by imprisonment for a term of not less than sixty days nor more than two years, or by both such fine and imprison¬ ment. M X X X X X X CONGRESS GETS ANTI-LOTTERY BROADCAST BILL A bill to prohibit the broadcasting by radio advertise¬ ments of, or information concerning, lotteries has been introduced by Representative Bland, Democrat, of Virginia, Chairman of the House Merchant Marine and Radio Committee. Its text is as follows: "Be it enacted by the Senate and House of Representa¬ tives of the United States of America in Congress assembled, That no person shall broadcast by means of any radio station for which a license is required by any lav; of the United States, and no person, firm, or corporation operating any such station shall knowingly permit the broadcasting of any advertisement of, or information concerning, any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes. Any person, firm, or corporation violating any provision of this Act shall, upon conviction thereof, be fined not more than $1,000 or imprisoned not more than one year, or both, for each and every day during which such offense occurs. X X X X X X 6 < 2/16/34 SENATE COMMITTEE APPROVES REMOTE CONTROL AMENDMENT The Senate Interstate Commerce Committee after a short session reported favorably the amendment to the Radio Act intro¬ duced by Senator Dill to prevent setting up studios in the United States which are connected with radio stations in foreign countries that broadcast back into the United States, Although members of the House Committee on Merchant Marine and Radio expressed themselves in hearty approval of an identical amend¬ ment introduced by Representative Bland, of Virginia, they will have another meeting Friday, February 23rd, to give electrical transcription record manufacturers an opportunity to be heard* The amendment aims to prevent records being sent from this country to objectionable border stations as well as programs by wire. Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters, offered two amend¬ ments, the first of which was "That nothing in this section shall apply to the use of any studio, place or apparatus in connection with any program which is broadcast simultaneously by a foreign radio station and by any radio broadcasting station licensed by the Federal Radio Commission. " This, Mr. Bellows explained, would forestall any inter¬ ruption of the network broadcasts between the United States and Canada, which are now carried on regularly and have the approval of both countries. By way of strengthening the electrical transcription restriction, Mr. Bellows suggested having the sentence read, "or physical reproduction of sound waves designed exclusively for reproduction for radio broadcasting. " As an alternative amend¬ ment to this, he proposed inserting the words, "the principal function of which is to cause such electrical energy or mechanical or physical reproduction of sound waves. " Dr. C. B. Jolliffe, Chief Engineer of the Radio Com¬ mission, declared that the bill was not directed at any legiti¬ mate broadcasting between the United States and Canada. He said it was aimed principally at the stations broadcasting into this country across the Mexican border. He cited particularly the two stations which had been closed down in this country, one operated by Dr. Brinkley, XER at Villa Acuna, and XENT at Neuva Laredo, by Norman Baker, the latter of which opened up only a feu days ago. Dr. Jolliffe said the authorized power of XER was 500,000 watts and he believed the station was actually using between 75,000 and 150,000 watts. Norman Baker, with an authoriza¬ tion of 150,000 watts, the radio official had heard, was using approximately 50,000 watts. Dr. Jolliffe said that all the Mexican border stations were financed by American capital and were operated for the pur¬ pose of supplying American audiences rather than Mexican audiences and carried programs which would not be carried by American - 7 2/16/34 stations because of their character. Jollif'fe said of the 12 exclusive channels Mexico demanded of the United States at the Mexico City Conference, they desired to give six to the border stations. Dr. Jolliffe said that in all, there were twelve sta¬ tions on the Mexican border either now operated, under construc¬ tion, or expected to be constructed. Dr. Irvin Stewart, of the Treaty Division of the State Department, declared that the influence of these border sta¬ tions tended to cause friction between the two countries. Judge Sykes testified that the so-called Mexican sta¬ tions on the border were really stations owned by Americans for the purpose of broadcasting into the United States. The Judge also took pains to commend the Canadians declaring that they stoo^ with us in all our demands at Mexico City, Dr. Tracy Tyler of the Committee on Education by Radio was the last witness to testify declaring that they stood squarely behind the bill. X X X X X X RADIO COMMISSIONERSHIP APPOINTMENT IN DOUBT Although Commissioner W. D. L. Starbuck's term expires next week (February 23rd) there has been less talk than there ordinarily would have been about his successor, if he is not to be reappointed, because of the belief that a Communications Com¬ mission may soon be created with a new deal all around. Those who argue that there is a chance of the reappointment of Com¬ missioner Starbuck point to the fact that he apparently is in the good graces of at least one New York Senator since he was among the guests at the big dinner given by Senator and Mrs. Royal Copeland in Washington. The general impression seems to be that Judge E. 0. Sykes is apt to be appointed to the new Communications Commission. Also that Herbert L. Pettey, Secretary of the Radio Commission, who stands high with patronage dispenser Farley, may have a place on the Commission. Mr. Pettey, who is only 28 years old, has been quoted as saying that he would not care to be Commissioner. The assumption, therefore, is that he may be the secretary of the new Commission. X X X X X X 8 2/16/34 WAVE POLICING INCREASES SHANGHAI RADIO POPULARITY The popularity of radio is increasing to a noticeable degree in Shanghai, China, according to a report from Consul Richard P. Rutrick. There are 35 broadcasting stations in Shanghai, 29 of which are Chinese, the others being f oreign-owned and oper¬ ated. The National Government of China exercises partial control over these stations and recently assigned a definite wave length to each. This action, relieving as it did Shanghai's congested air, greatly stimulated the sale of radio sets in the city. Imports of receiving sets and parts into the Chinese metropolis during the ten months ended October 31, 1933, the latest available figures, had a value of §684,173 compared with §564,117 for the year of 1932. The improved radio business, the report states, began in 1931, in which year imports of sets and parts reached a value of §394,700. During 1930, total imports of radio sets and parts amounted to only §102,500. Local firms, the report declares, are enthusiastic and optimistic regarding the future of radio in China, particularly in Shanghai. At present there are about fifty makes of radio sets on the Shanghai market, the majority being of American manu¬ facture. Fifteen popular American sets enjoy approximately 50 per cent of total sales in this area. It is estimated by Shanghai dealers that there are between 30 and 40 thousand radio sets in use in Shanghai, ranging from crystal sets to the latest de luxe multi-tubed models. The type of receiver which is most popular is the medium-sized unit having six to nine tubes. X X X X X X X MADRID TREATY CONSIDERATION POSTPONED Consideration and ratification of the Madrid Radio Con¬ ference Treaty by the Senate Committee on Foreign Relations has now been set for Wednesday, February 21st. A strong plea against the ratification by the Senate of the amateur ban in the Madrid Treaty is made by Clair Foster, #6HM, of Carmel, Calif. "The convention of Washington in 1927 expecially was dominated by commercial corporations", Mr. Foster writes in "Radio", a magazine published in San Francisco. "That is where the amateurs lost all but their tail-feathers. Before that time they had been plucked of most of their body covering. Up to that time the United States amateurs had held all of the short waves from 1500 kilo¬ cycles upwards. Their representatives, at various conferences of no legal ste.tus, had of their own accord relinquished all but a 9 I 2/16/34 few narrow bands. When the international convention of Washington came along the amateurs had already established their reputation as push-overs, so it was a foregone conclusion that without com¬ petent representation they would lose territory. They WERE with¬ out such representation and they DID lose three-fourths of what they had not already given away. They were not only deprived of most of their territory but their rights were invaded by incor¬ poration in the treaty of provisions designed to limit amateur communication with other countries. "Now the whole necessity for international radiotele¬ graph conventions revolves about the problem of interference. Where there is no interference of signals, there is no need for international conferences. Commercial people, however, have used the mechanism of international conventions for purposes quite outside the problems of interference. The attempt to so use them is what causes the greater part of the muddled meddling with the affairs of individual nations that encumbers the treaties. It has long irked certain American commercial interests that the 1927 treaty could not be used to stop all international exchange of third-party messages by amateur stations. So, long before the Madrid convention of 1932, plans were afoot among these commer¬ cials to put an absolute ban at Madrid on such traffic. When the United States was preparing for the Hague conference of 1929, these commercials were instrumental in getting into the proposals to the other nations this one: " 5 It is recommended that amateur stations be permitted to transmit, on behalf of third parties, communications which are of the same class as the amateur is permitted, by the regulations of his administration, to handle on his own behalf.’ "This was, and was known to be, a wholly improper sub¬ ject to propose at the Hague; for the conferences at the Hague, and, subsequently, Copenhagen, were engineering conferences lim¬ ited solely to the discussion of technical problems. But the recommendation of these amateur restrictions, by reason of their submission in writing to all other nations, did in fact put those nations on notice of the attitude the United States delegation would take at the following Madrid convention which would not be limited to technical subjects. The subject, of course, was not discussed at the Hague. It was never intended that it should be. But its distribution among the other nations did serve its design¬ ed purpose at Madrid. This is an instance of making use of the mechanism of an international convention in a matter that is the sole concern of individual nations. "The question of the source, destination and content of messages - either amateur or commercial - has no proper place in the deliberations of an international convention. Madrid did not presume, you will notice, to interfere with the primary assump¬ tion laid down in the convention itself - that each nation is free to conduct its* own affairs in its own way - by specifying the character of the messages of commercial companies! If our Senate were to ratify the Madrid ban, ('Made inUSA' ) , on the free 10 2/16/34 international handling of third-party messages by amateur stations then our government would be meddling in the private affairs of every other country that is disposed to permit the free exchange of amateur communications. "We amateurs will, of course, conform with even the worst of treaties when, if, as, and for so long as they shall be or become the law of our land; but now that we know who makes them, and the kind of stuff they are made of, we need not stand in respectful awe of them and raise a crop of goose-pimples every time mention is made of ’the international treaty.’" X X X X X X X CONGRESSIONAL MEMBERS TO VISIT RADIO CITY Several hundred House of Representative members plan to make a week-end inspection trip to New York City and West Point leaving Washington Friday, March 2, by special train and return¬ ing Sunday night. All Representatives who go will pay their own expenses and there will be no cost to the Federal Government, which is something new in Congressional junkets. Heretofore Uncle Sam has usually paid the bill. The tentative itinerary of the trip is as follows: Friday night, New York City, inspection trip of Radio City and National Broadcasting studios; Saturday, inspection of the Federal Reserve Bank, Stock Exchange, Cotton Exchange and immigration station; Sunday, a trip to West Point. X X X X X X PRINTED COPIES OF RADIO WHOLESALERS’ CODE AVAILABLE C\, The proposed supplemental Code for the Radio Wholesaling Trade, as revised for the public hearing to be held Saturday, February 24, has been printed. Copies are for sale by the Super¬ intendent of Documents, Washington, D. C. , price 5 cents. XXXXXXXX 11 BUSINESS LETTER NOTES By way of giving a little more publicity to traffic offenders, Station WKBF, in Indianapolis, began broadcasting the hearings of the Traffic Courts for a half an hour each night beginning at 8:30 o'clock C.S.T. The Washington Post has taken 15 minutes of WJSV's morning Women's hour for broadcasting features of feminine inter¬ est designating the period, "Salute the Ladies". Different members of the Post staff are heard, such as the Editor of the Women's Page, Society Editor, Motion Picture Editor, and so on. A patent-infringement suit was filed in the Federal court in Wilmington against the Radio Corporation of America by Helen May Fessenden of Chestnut Hill, Mass., widow of Reginald A, Fessenden, electrical engineer. The bill of complaint asserts that the corporation has infringed two patents granted to Professor Fessenden in 1927, one for wireless directive signaling, and the other for wireless trans¬ mission and reception. Thomas P. Littlepage, radio counsel, ill with pneumonia has so far recovered that he has been removed from the Emergency Hospital to his home in Washington « Daily raio talks sponsored by the New York City admin¬ istration to advise housewives on how to obtain the most value for money spent on food were started this week over WOR, by Mrs. Frances F. Gannon, Deputy Commissioner of the Department of Public Markets . The Radio Corporation of America stated that suits have been brought under its patents and a number of patents under which it holds licenses against two of the companies associated with the International Telephone and Telegraph Co,, namely, the Mackay Radio and Telegraph Co., Inc., and the Federal Telegraph Co., of Newark, N. J. The position taken by the Radio Corporation of America is that these associated companies of the I. T. & T. are infring¬ ing patents owned by the RCA, as well as others under which RCA holds licenses. The suit against the Mackay Radio and Telegraph Co. in the U.S. District Court, Eastern District of New York, claims infringement of 6 U. S. patents relating to radio inventions used in marine, transoceanic and domestic radio communication. The suit against the Federal Telegraph Co. claims infringement of 6 U.S. patents relating to radio tubes. XXXXXXXX 12 f, ■*; • \ <> ?' \ ! »: * x ' "V ... <■* * ttvf :"A\r : V; j 3 -A; ■J ,• l • I . i (A . ~f xf.’Oi’. i'A- I I.H; 'if'; : Ji .. •' - t . - ? -A - j: A ; osiJ , r- ; j.. • "..i iir.it. -a - -j.'k" ;• •: '-"Vi v' •-j‘. - ‘i g njkt r (■ ■; u j ■ ' ■ ; U r JX'A !, A f i . J • : ' T i i A :■ 1 Cv'iT ;/[j A- 0:~ V ? : r - ; ‘ . ’ 1 i-- ■ 1 '.V A VAX .? A j A.-; kk Xt.L' ~A a ■ ' • .a f 1 • rixO oib-.H ixU" ?:»r;i ' x r , .• M\ ■.} ' ' •••:■ r •-?. j : . J": . . ‘1 a.av lev .. ? r a ; . vTl o-.; ; •••., ;; a. :: . ; .■ ' - ' a • i : : :• . -n i, .• a a ■; i . r o • r • r . AilfO.. A *1 ‘ ‘V , -.-I'UJOO Oi LaA , ■:>' . . -I i ■ »v;. - : I. • i t .• • ■.'! , A-;'; :• ki a;:: Ail rk .V- .v:: ; i. ! ' : o ■' . c ’ ’o v..; )• ■ ; "i c* ] j -n' -.VJ be . : : i.1:? . . • . r. ■. i L . ■ «: ...... • A.r : Hi •' a ■ k 'J A fr v" „f J j , . oO -■ l.V :.A A. 'I' -'• if: A -.kA CH:vJr;WS A;.:' .»:A;i . Y A.-;,- r j. ; '■ . Av'TS’-O C.iii.eX' .ki3‘ V.W i'!:.. f • 0 i ‘A: C A Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication INDEX TO ISSUE OF FEBRUARY 20, 1934, Stingingly Rebukes Commission Liquor Gesture..... . 2 Don Lee Loses Court Appeal . . . . . 5 We Begs To Re-Pologize . . . Music Group Asks For ASCAP Investigation Saltzman Resignation Is Shipping Board Mystery. . . . Canada Progresses With Its New Commercial Station. Senator Predicts New And Larger Radio News Service Musicians Complain To Code Authority Agenda For Radio Parley Discussed. . . New Globe Wireless Service Across Pacific Started.. . ..10 RCA Scores Against Majestic Distributors, Inc . ..10 NBC Issues Program Policies As Guide . 10 Decisions Of The Federal Radio Commission . 11 No. 699 CO CO N N CO CD a> February 20, 1934. STINGINGLY REBUKES COMMISSION LIQUOR GESTURE One of the worst rebukes ever given to the Federal Radio Commission was administered by Representative Emanuel Celler, Democrat, of Brooklyn, in an extension of remarks last week in denouncing the Commission’s liquor procedure. Mr. Celler said, in part: "The Radio Commission issued a warning to radio stations to observe the so-called 'properties’ in broadcasting liquor advertising, "What these proprieties are apparently are hermetically sealed within the minds of the members of the Commission. The Commission did not issue an order. It simply announced a policy by a news-release. "To my mind, this news-release is cowardly, unwarranted, and unjustifiable. It does not state that liquor advertising is banned. On the other hand, it lays down no definite rule for broadcasters to follow. If the Commission wishes to interdict liquor advertising, it should come out in the open and courageously say so. If it rears its head in that fashion, however, it can expect a ’good sock in the jaw' - if I may be pardoned this slang. "The Commission knows this and would not dare risk con¬ dign criticism. "It slyly and cowardly uses a one-half way measure which I, as a Member of Congress, who have battled against prohibition for years, deeply resent. The Commission has no right to shield itself behind a news release of this character. "The action of the Commission undoubtedly borders upon censorship. Congress gave no right of censorship to the Commis¬ sion. The Commission has repeatedly denied that it seeks to exer¬ cise the right of censorship. Yet, In its carefully worded news- release, it issues a warning which is tantamount to censorship. "Incidentally, the news release is not definite as to whether a station which has a program w hich is not commercially sponsored can debate the question of liquor, and permit a person to speak on the worthwhileness of wine or other alcoholic beverages. We do not know even if such a talk shall be taboo. They do not say the talk will be banned or will not be banned if it is com¬ mercially sponsored by a distiller or vintner or wholesale liquor dealer. The meaning is not clear, being susceptible of several interpretations. 2 ' 7 yjoPiop: - ,' • ! k n.i .( 2 ~ , i , ; ■: r-.‘ 'I : pi j.' . - » ■ ■ - ; • V- p poo P j . . '/ 0:0 Ap 2li ■ . \ ■ ' ' •• ; i ; o cto 5 ; ■ j -v -op on <* : ,v :• ■ ■ i', ■ ■ ■ i. t* A" . .f :;:- ' O; KpPU ;p :Ar v: P";A v/V.i': $ ; • * ; A / t fk i ' O.Pv >li A'C? A 30 r •“/ Pi.;: or :r. ir op a;-, : . " . • . o }\v ,~y ■- •' C. • •: ;X n : • ■ . • i'i A . OOOO .A ■. Pi ' i 00 1 H A\i U 1-bP. ■■ • , Cii'-: ‘\0 .io * . L. . : ■■ 0 O.0" PI o ui : ' o pi' 'I Col • v ■ : • : \ ' :p " pOii i :■ ; 3: j;. . O • U.i ■ ' V ‘ .. • : L /• p.L: v.' 1 ::A " l ■i ■■ .■* ■ p . ^ v. * W C . !■ • * ;-7 ‘i - i 0 1 . no 2/20/34 "But the Commission has no right to tell the public what it shall or shall not hear on the liquor question******If anyone does not wish to listen to a broadcast on the liquor question, it is a simple matter for the listener to turn off the program. "The Post Office Department no longer has the right to prevent the mailing of announcements about liquor even though the mail circulates in dry States. We recently repealed a statute which forbade the circulation in the mails of newspapers and pub¬ lications containing liquor advertisements. "Congress has stated that liquor dealers may circulate their advertisements in dry States, The Radio Commission should not now have the temerity to say to these same liquor dealers, ?You cannot broadcast information concerning your alcoholic bever¬ ages, whether the station is in a wet or a dry State, for fear the broadcast may reach the ears of those in dry States.' Such a position is utterly indefensible. "On the one hand, we have the Government getting huge taxes from alcoholic beverages; in fact the Government is encourag¬ ing huge importations of American type whisky from Canada, Mexico, and elsewhere, from which importations there is yielded to the Government $7 a gallon, a huge amounts And on the other hand, the Radio Commission says that nothing shall be said about this liquor. Certainly it is far better to spread, as much as possible, the information about legal liquor so this Government can get much- * needed revenue. Radio broadcasting helps circulate this informa¬ tion. "The President made a proclamation urging the Nation to purchase lawful liquor. The bootlegger prefers to have the public know as little as possible about good brands, lawful beverages, and decent products. The less the people in dry States know about good liquor and lawful products, the better are the opportunities for the bootlegger to peddle his wares in those dry States. "I herewith submit a letter from Henry Adams Bellows, Vice-President of Columbia Broadcasting System? " ' I have given very serious consideration to your sug¬ gestion of a radio talk in opposition to the recent press release issued by the Federal Radio Commission on the subject of liquor advertising by radio. The more I think of it, the more I feel sure that the broadcast of such a talk would be misinterpreted by literally millions of listeners. No matter how careful we might be to explain why the talk was being given, a great many people would inevitably assume that we were broadcasting it as a protest of our own against the action of the Commission. "'As you know, Columbia's policy with regard to liquor advertising, which was announced by Mr. Paley 3 months ago, is very close to what the Radio Commission itself apparently had in mind. My objection to the Commission's action is that no department of the Government has any business to try to set up a government of 3 2/20/34 press releases,, If the Commission had had courage enough to issue a definite order, we could have attacked in an orderly man¬ ner through the courts, but this vague business of getting out press releases containing indefinite threats seems to me thorough¬ ly bad. With regard to this we are wholly in sympathy with your views, and I may add that we feel exactly as you do about attempts to interfere with our freedom to advertise what we regard as suitable. ,n On the other hand, I feel, frankly, that we have built up a lot of goodwill by our stand on liquor advertising, a stand which we took voluntarily and without any compulsion. I am very much afraid that a broadcast of the kind you suggest would have a distinct tendency to destroy some of this goodwill. Since the Federal Radio Commission is not an elective body, I can see absolutely no good purpose to be served in criticizing it to the public, the place for such criticism being clearly on the floor of the House or Senate, I hate to turn down a suggestion which is so completely in line with my own ideas as I could undertake to endorse in advance very word you would say on such a subject, but I do feel that this matter is definitely one for discussion in Congress rather than before the public audience. The Radio Com¬ mission, as we all know, is tremendously responsive to what is said in Congress, and is very little influenced by what it hears from the public. Furthermore, I am quite sure that the result of such a talk would be that the Commission would be flooded with letters from prohibitionists praising it for its stand and thus the real point at issue, which is the attempt to govern by press releases, would be completely lost sight of. ,?I hope you will agree with me that it is wiser, particularly from the standpoint of getting the Radio Commission to see that it has made a mistake, for you to make the speech you have in mind on the floor of the House rather than to the public, which is perfectly sure in part to misunderstand your motives in making the speech and our motives in broadcasting it. 1 "I replied to Mr. Bellows, as follows: "'I do not agree with you that broadcasting a talk would be misinterpreted by literally tfmillions of listeners. ” ” 1 1 hope you will grant me intelligence sufficient to permit me to present my views with such clarity that it would be impossible to be misunderstood by literally "millions." A state¬ ment could be made at the beginning and at the end of the address indicating that the station over which the broadcast had been given did not, in no wise, directly or indirectly, intend to pro¬ test the action of the Radio Commission. I am keenly disappointed with your attitude. First, because I cannot use your system for the purpose indicated. Second, because you are willing to surrender without a shot being fired. Frankly, I believe your attitude is unjustifiably weak- kneed. You do not even know your own strength. You mention the 4 y ' 5 i'. ■ i? ,J' 'I i O j : ■’ ■. ■ Ji id ■. • A /. z O . ' ' •; ■ f ' ; i OJ 0.1 • ■ ' •• I -v r-' ■■ ■ • - 1 3 0 t;r ry-l - ; ; j. V 0.0 r ' v V.? ;J A .• y.:; 1 .i j f rU • • ' , O .i •' :: > V ■■■ • >\ i. •: ;,v 7 l I . MW .;.U.o w ■ MM jM mm ; ' M, ,,r-' s i V: * ; w ,mm r O'- .. • : I.* \ , ‘ :W ' wi ft? rX f ; . . M : ! ..M W O ' 'V ;• MOM ' mum l iiu mm.mm io •* ■ M-1M a MMM ,MM - • . X : ’ ■T . r ; , .7 \ • ■ } ; C .... ... 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Ic-pMiPo .'O V, : i : 7-0 ‘.r '■ (7 1 /'I ;:o • vor- 1 '} •vlJl 1 >. • ' ' ,i I'M l'T:7.r •” A- > , d 6 0 •"r ' ' , - p , ■; ■ • ' ; ;i • • { J'tiii mw .nil .. ‘ ;v .. • opal bit VO'.,! 0 i. ' ' : 7 :: : •' ■ .1; v .f v y, ;-0 : ii J ;,ff v.j I'fl.X l i H hi. h .7 . :;s . jfj'o . , ii.r J ' : : ; v. i $1 ■' .. VO i":0 ?5v"? ' -O' • :(.o.r! ! 1 .; ;7 j 0 O ' -■ l [qj 1 -TV f t,- lib . c . . ' . :i i. 2/20/34 Commission's lack of courage in their failure to issue a definite order but instead send forth a news release which contained indef¬ inite threats. I think you lack just as much courage in failing to protest and in not allowing a protest over your system. "'I think you also show the white feather and are assum¬ ing a ridiculous policy in refusing to permit advertising broad¬ casts sponsored by liquor dealers and/or wine merchants. Why should not legitimate concerns be encouraged to make known their brands? Your failure to cooperate in this regard encourages the secret methods of the bootleggers. The Government is anxious to secure as much revenue as is possible from the liquor business to help reduce our deficit, " ' It should receive cooperation from the radio broad¬ casting stations. Knowledge could be spread about liquor upon which a tax had been paid rather than have the public supplied with alcoholic beverages sold and delivered clandestinely and upon which the Government has received no tax, ' "One of the members of the Radio Commission may soon have his name presented for reappointment. Notice is hereby served upon such member and other members that I shall oppose the reappoint¬ ment or the appointment of anyone who subscribes to the recent press release. As above mentioned, any man who would continue to make liquor something romantic and something that can only be sold in dark corners and speak-easies - and this is what the order or press release encourages - is not qualified to sit on the Radio Commission. Anyone who, directly or indirectly, seeks to invoke censorship - and this is what the press release intends - is not fit to sit upon the Radio Commission. "My hat goes off to Station WOR at New York. It put on a liquor advertising broadcast after the Commission's absurd news release. I admire the courage of Alfred J. McCosker, in charge of WOR. " XXXXXXXX DON LEE LOSES COURT APPEAL The District Court of Appeals has denied a stay order for the Don Lee Broadcasting Company against a decision of the Radio Commission denying construction application to the Lee Company for a new station at Redlands, Calif. , granting license renewals to KTM and KELW and assignments to the Los Angeles Evening Herald, a Hearst publication. The Court of Appeals affirmed theCommission 1 s action in refusing to move WOQ, Unity School of Christianity, Kansas City, Mo. off the frequency 1300 which it is now sharing with KFH, of Wichita. KFH had asked for unlimited time on this frequency. X X X X X X 5 v . •«' r .Y : X’l X '• t6 V i\ •• -r ‘X ' NV 4 -""" ■•••::- ' ' '• • ,;.;W • .*■ - .XvX V c ■V f :• .)v, ixc, . .... . ■ ,v.i v.'CCX f i' '^V • VI ' . . .. • j r- ' x : • . : '■ Vr':\.- r '■/ - vC V-.- ■■ i ha . .cu xx a-xxx. : : V ,■ ... XS X ' ‘ •- .. w. i - ' ' - • ; Vi a • u' ■ . -r s '• . .. 1 ....... ; • ; ..v , . ■■■' ■■■-.. , . ; - V ' •«> . • •• •* 1 . . .... . ... v . •■ • v . • - .i::,-; ■■ ■■ '■ . , .-c., '. <. -..vs — ' X : : xx? ■'■• i X;-! '"X.fc ■ • ' , ; V V •: » : .. .. ■> i- ■ " , . ..r -. ■ . lf. iT ■" • ■ * ' ? C : f • . Ci ’ i. ; . 1 C ■; . ... ! • .• r i ; . r l ■' • ;0.i. i ■ ' T . i ^ ■ V.X • , •: ■ . ,. •. \V "x ■■ ; x'-i ! ‘XXf ;.;'s *sj ■ <*••• • *' ... .. 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Vii'A' ■■■ ... • ' i ■>■■■. i; .; " ■ i ; -v ,h ■ ■ ■ ... •• } 3: r ■■ ■; - . .. ■: i.' r .C> C; ■Ms***im " vrs- - • ’>•: i. k ' • u .« - k A S [ J ■ • V:C'V ;• ... . . 1 „ ..... i> ‘ •• . . : , iri V ; ■ " -vv . • v ; ' ■ ■ ‘ ■ • , . \ j ... ••• . ; J ' V - ,. ...... S • ■ , u } ' ■ , V ■ • • - • ■ ' , - 7 : x ■ .. ' ... - i j l .i • ; , ... i;:i ' Vi < . . ;• ■ ! i. :• * ' :':fA - V V X 2/20/34 WE BEGS TO RE-POLOGIZE The following has been received from James W. Baldwin, Executive officer of the Broadcasting Code Authority: "Please allow your next News Service issue to show that the statement attributed to me in your Service of February 9 con¬ cerning Station CKLW at Windsor, Canada, is in error. I have never authorized any statement concerning any complaint against any radio station. In this connection and in fairness to Station CKLW, I quote in full a letter dated February 10th which has been received from Mr. Keith Scott, Secretary and Treasurer of the Essex Broadcasters, Inc., which is a subsidiary of Station CKLW: "•it seems desirable that you should be fully Informed of the basis of operation of Radio Station CKLW, and its American subsidiary, Essex Broadcasters, Inc., who are located in Detroit, Michigan. "’We were one of the first in Detroit to sign the President's Blanket Code, and to receive our Blue Eagle. We are paying all of our employees, both in Windsor and Detroit, accord¬ ing to the scale set up in the code for the Radio Broadcasting Industry for a high power regional station. Besides maintaining our studios and transmitter in Windsor, we, through Essex Broad¬ casters, Inc., spend approximately $10,000.00 per month in Detroit, of which salaries and wages account for almost 50$>, "’We were late in filing our rate card, due to our having no notice of the date it should have been filed, or the authority to whom it should be sent, but we revised our rate card as at January 15, 1934, and forwarded a copy of it to the broadcasting code authority at Washington, D. C. , but as this may not have reached the proper authority, we are enclosing herewith another copy of our present rate card, "'It is our policy to live up to the code in every partic¬ ular and we have not, nor do we intend, to provide any unfair competition for local broadcasting stations.'" XXXXXXXX MUSIC GROUP ASKS FOR ASCAP INVESTIGATION The Music Users' Protective Association of America, through its attorney, Harrly L. Katz, of Baltimore, has accused the American Society of Composers of violating the anti-trust laws, of unfair methods of competition, and with racketeering in a complaint made to the Federal Trade Commission. X X X X X X X 6 2/20/34 SALTZMAN RESIGNATION IS SHIPPING BOARD MYSTERY Several reasons were advanced as to why Gen. Charles McK. Saltzman, former Chairman of the Federal Radio Commission, resigned as Vice-President of the U. S. Shipping Board Emergency Fleet Corporation. One prediction was that it was destined to precipitate revelations concerning ocean mail subsidies as sensational as those made in connection with air mail contracts. General Saltzman ’s resignation is taken to mean his efforts were consistently blocked/ It is believed Coolidge and Hoover appointments, together with private shipping concerns, arc responsible for the deadlock. That this deadlock will be broken was foreshadowed recently when President Roosevelt spoke of abolishing mail con¬ tracts in favor of out-and-out subsidies. The President believes in subsidies under certain conditions and favors calling them by their right name. Friends explained, however, that General Saltzman1 s resignation was influenced primarily by an attractive offer he had received from a private business firm. Still another version of the Saltzman resignation is that he may be paving the way to get on the new Communications Commission. In addition, it was explained that General Saltzman had been disappointed at the action of Secretary Roper in appoint¬ ing Henry H. Heimann as director of the recently established Shipping Board Bureau of his department which succeeded the United States Shipping Board. It had been thought by many that General Saltzman was in line for the appointment. X X X X X X X CANADA PROGRESSES WITH ITS NEW COMMERCIAL STATION Canada is going ahead with its new point-to-point com¬ munication station, according to the* McClure Newspaper Syndicate. "Plans for a Canadian government radio station to trans¬ mit American transatlantic messages at cheaper than prevailing commercial rates are coming along nicely", a McClure dispatch reads. "The main problem still to be solved is the matter of suitable reception facilities in England." X X X X X X X 7 ■i'S xv; U . ..... .. ,, , . ... v- h* f; -:i ; r, + f: :: -.3 .. ~ • 'r h ' ' K v ■: i • i :i , r c .^/Y; ■f n ; ■ '• •; I ‘'tv ;• v(-- ; ois" . f V r- ) ; _ ■ • ■ - ' v .«? ' " 1 ^ K.'. tv< : \ ■ ■ > •• l n: y :< y ........ ^ r ......... . '. ■ ■■ ;■ : . Cl ■ 4 : ;U: : Aaa A & ' > f ■ ' •a ? . if i: v r . f ■ cl V? . 1 ipj.'Hl a; ••• ■ ■■ '• A . hi - a . ■ a ^_;v. V -,r ;/-A ' ! -• ? ‘ " •'A j • ; . .1 S •. . - *. ' V' * v; - a : 'y. 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[: --hi 1 y-.r ; . a ; aa va.'-a j r j , !t; • .'.am.. Ill hh i ... r r- ... a; . ■ : l r ■ ' A •- .• ■ - ; * ■ • ■ ■* '.J .'.. j-. ,\ . . . . .. h chh ■ . a :u: : : ■ a '. r A.A A A." A : AAA. V.- : . ; • - A. A A ; i ■ '• V! : ■' 1 : . . ; Cv h J hit. .. . AA 1 .• ? hi .; a ■ a ; -io 1' .., .. ... ;■ . : ...; • ; J ">• ,i A. .. ;. . . '.AAA A :A V lAiA . a A 3 ■ ■ ■!. ■.. . "A a: . .A ' 1 • ' a; -A hi c a ?;y , a. : : ■ a ' ■ , ■■ ■•■ ' ' A a bj ■ . ■ h ' , ■ ■ a- -AA-, -vy-.J i- , > ?K V 'V > , . I ' ■ ' , : - . A y A A , . A ' : \ "■ A 2/20/34 NEW GLOBE WIRELESS SERVICE ACROSS PACIFIC STARTED Inauguration of a Transpacific radio service to land stations and ships at sea was announced by Globe Wireless, Ltd., in San Francisco Feb. 16, according to an Associated Press dis¬ patch. The announcement said the concern has stations at San Francisco, Seattle, Portland and Los Angeles, New York, Honolulu, Guam, Shanghai and Manila. XXXXXXXX RCA SCORES AGAINST MAJESTIC DISTRIBUTORS, INC, The Radio Corporation of America made the following statement last Saturday: An important decision covering radio tube patents has been handed down by Judge Thomas in the United States Dis¬ trict Court, District of Connecticut, in suits brought by the Radio Corporation of America and others against Majestic Dis¬ tributors, Inc., a subsidiary of the Gribsby-Grunow Company*, The Radio Corporation of America claimed infringement of eleven patents relating to radio tubes. These included patents owned by the Radio Corporation of America, and others under which it is licensed with the right to grant licenses to others. The Court held ten of the eleven patents to be valid and infringed by the defendant company. X X X X X X NBC ISSUES PROGRAM POLICIES AS GUIDE The National Broadcasting Company has mailed copies of its Program Policies to broadcast advertisers. In connection with this, Richard C. Patterson, Jr. , NBC Vice-President said: "The relationship between advertisers and the public is a matter of primary concern to all those interested in adver¬ tising, With the cooperation of leading broadcast advertisers and advertising agencies, the National Broadcasting Company has attempted to crystallize current trends of thought on this sub¬ ject in a statement, bound in handy booklet form. In the future, NBC will be guided in all its presentations by the program stand¬ ards and program procedures there set down." The following excerpts taken from "NBC Program Policies" are of particular interest: 10 'V -.7 fjj-* .. -J - iUoo \ ' • :. ;• 7-: « i?; •!. 7.u * tr ••• r ?. . ■ . : o 7 7 .7, .77 . rv. • c> • . v;- qjhii ~ -C"." 7-i 7; -.7 *7 -.'H ■- ' i.i'U J:Z- ;■ Wi 7 7 77' 77:;’7‘7'.' : ‘ v -i,. L ‘ • -■ , 7 ■ .7: " 7 .? - i ' > Vi Hi ; 7 7 , 7 7 7: J 7 : 7 C. !. • .? 7 / f; ■7 ; ' . :? r : ■ :: I j : : A i ; Q K :> J ; H ' :i ..•u'j.q -7 -7 '7"; ; 7 .7 7 • •: .7';- 7 ■ 7 ”i\f C .7 7 ' 7\i ,V7 I f 77 7/ ' : * - .( . • ; '7- : :7.:,t -7 77 I 7 777- 2/20/34 "Its (broadcast program) primary appeal should be to the listener's interests Unpleasant or gruesome statements should be avoided as more likely to offend than to instruct or entertain, " "Tiresome repetition or too much detail should be avoid¬ ed. For instance, the advertiser's street address and the like should not be reiterated to the point of annoyance, " "Statements of prices and values must be confined to specific facts. Misleading price claims or comparisons must not be used. " "....Commercial programs shall not refer to any competi¬ tor, directly or indirectly, by company name, by individual name, or by brand name - regardless of whether such reference is deroga¬ tory or laudatory," With regard to testimonials, the advertiser or his agency must submit to the National Broadcasting Company, at least three days in advance of the broadcast, "either an indemnification signed by the advertiser or his agency, or a written release authorizing its use for advertising purposes, signed by the person making the testimonial and sworn to before a notary public, and must furnish the National Broadcasting Company a full copy thereof." XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (Feb. 20, 19341 WLAP, American Broadcasting Corp. of Kentucky, Lexington, Ky. , modification of C.P. approving transmitter and studio loca¬ tions, and extending commencement date from Feb, 5 to 30 days from this date and completion date to May 5, 1934; WSOC , WSOC , Inc., Charlotte, N. C. , C.P, to make changes in equipment and increase daytime power from 100 to 250 watts; KIEM, Harold H. Hanseth, Eureka, Cal., modification of license to increase hours of opera¬ tion from daytime to unlimited; WEAN t Shepard Broadcasting Service, Inc., Providence, R. I., extension of special experimental author¬ ity to use 250 watts experimentally at night in addition to regular power of 250 watts; WJAR, The Outlet Company, Providence, R. I., extension of special experimental authority to use 250 watts power at night in addition to regular assignment of 250 watts; WNEL , Juan Piza, San Juan, P. R. , modification of C.P, to make changes in equipment and extend commencement date to 10 days after this date and completion date from April 16, 1934 to 90 days thereafter. Also, WIBA, Badger Broadcasting Co., Madison, Wis. , special temp. exp. auth. to operate with 500 watts in addition to the regular assignment of 500 watts at night, for period ending April 1, 1934; WFBM , Indianapolis Power & Light Co., Madison, Wis., special temp. exp. auth. to operate with 500 watts in addition to the regular assignment of 500 watts at night, for period ending April 1, 1934; WFBM . Indianapolis Power & Light Co,, Indianapolis, , , X-j ; : . i ; ; . . ' ... ; : • '< :• > 4 v* ; < ;f r • • • r\.-; •, : ■ i ■ H r; T : 1 ?/ jo&ftO'Xd - £.? V ••.: • r- ii X j. ••• ;iO , V ' :T X" ! ; i ; J- • ..V .J ' • . --S •/ i ; .V_ ; C ifr’&f-.f ■ i ■ : 'X ■■ 1 ■/ - ^ ,oiL-Suo. v; . ■ ■■ .. : x4 x:lf:?o ■ ..-jn .■■x ■ . :v v,i\£ v, ; it4'., - . X:' . . •- I t ' 'X' OSH t : . , t ; £ n ' : ■ ' ' ^ ’ ' - ■ : : ' ■ if . r ' -A K. 2/20/34 Ind. , authority to operate simultaneously with Station WSBT, March 16 and 17 specified hours; WHET, d/b as Troy Broadcasting Co., Dothan, Ala., authority to operate from 7:30 p.m. to 9:30 P.M. CST , Feb. 20, 1934 for political broadcast; WSUI, State University of Iowa, Iowa City, la., spec. temp. auth. to operate specified time Feb. 23, 1934; WJDX, Lamar Life Insurance Co., Jackson, Miss.. C.P. to make changes in equipment and increase power from 1 KW to 1 KW night, 2-|- KW day; WMBD , Peoria Broadcasting Co. , Peoria, Ill. , authority to rebroadcast Police Radio System for one-half hour on Sunday night, Feb. 25, 1934; KTRH , KTRH Broadcasting Co., Houston, Tex. , special exp. auth. to change frequency from 1120 kc. , to 630 kc. and increase power to 500 watts night, 1000 w. day - exp. to April 1; KSOO, Sioux Falls Broadcast Association, Inc. , Sioux Falls, S.D., spec. temp. auth. to operate simultaneously with WRVA Feb. 13, 16, 17, 20, 22 and 27, 1934, specified hours; Also, KW CR , Cedar Rapids Broadcast Co., Cedar Rapids, la., modification of £7P. approval of transmitter site authorized tobe determined at 3rd Ave. and 3rd St. , Cedar Rapids, la, ; KGDY, Voice of South Dakota, Huron, Ss D. , special temp. auth. to operate specified hours Feb. 16, 17, 24 and March 2 and 3, 1934; WCHS , WOBUj Inc. , Charleston, W. Va. , extension of special temp. auth. to operate with 250 watts additional nighttime power for period beginning 3 A.M. EST , March 1, 1934 and ending in no event later than 3 A.M. EST. , Sept. 1, 1934; WTAG , Worcester Telegraph Publish¬ ing Co., Inc., Worcester, Mass., same as for WCHS. Action On Examiner's Report Wyoming Broadcasting Co., Cheyenne, Wyo. (New) denied application for C.P. for new station to operate on 780 kc. , 500 watts night, 1 KW LS , sustaining Examiner George H. Hill, order entered effective Feb. 27, 1934. Miscellaneous WDEL, WDELS Inc ..Wilmington , Del, , application for modi¬ fication of license requesting increase in power from 250 to 500 watts night, on 1120 kc. , restored to hearing docket; KICK , Red Oak Radio Corp. , Carter Lake, la., suspended grant to move station from Carter Lake to Davenport, la. , make change in equipment and frequency, and change call letters to WOC, also authorization for voluntary assignment of license to Palmer School of Chiropractric , because of protests of stations KSO , Des Moines, and WHBF, Rock Island, Ill., applications set for hearing; WJJD , WJJD, Inc., Chicago, Ill., suspended grant of authority made Jan. 16, 1934, to move studio from Mooseheart, Ill., to 201 N. Wells St., Chicago because of protests of WGN, WENR, WMAQ, and WCFL. All Chicago stations; application set for hearing. XXXXXXXX 12 I • * Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C, CONFI DENTIA L— Not for Publication - / f r INDEX TO ISSUE OF FEBRUARY 23, 1934. Border Ban Not To Interfere With Legitimate Broadcasts . 2 Madrid Treaty Consideration Again Postponed. . . Grigsby-Grunow In Bankruptcy . New Radio Commission Appointment Has Them All Guessing . 5 Broadcasting Survey Fails To Get Under Way. . . 6 Tip That Canada Is After Out Communications Busines . 6 McCosker Makes Few Changes In NAB Committees.. . 7 Newspaper Executive Hails Radio News Agreement . 7 Broadcasters Will Attend Pure Food Hearing . 7 Dill Puts Radio Telegraph Saving At 1100,000,000 . 8 Weather Broadcasts Aid Motorists . 9 Business Letter Notes . . . . . . . . 10 Probes Charge Against Composers . . . 11 European Air Mess Gets Worse . 11 Claims Television's Greater Detail Makes Picture Invisible . lr' No. 700 BORDER BAN NOT TO INTERFERE WITH LEGITIMATE BROADCASTS It is not the intention to jeopardize the international broadcasts between the United States and Canada in the proposed amendment of the Radio Act being considered by Congress which would prevent programs being sent from studios in this country to be broadcast back into the United States. Certain persons, notably Dr. J. R. Brinkley, formerly of Station KFKB, Milford, Kans. , and Norman Baker, formerly of KTNT , Muscatine, la., who have been for¬ bidden to operate broadcasting stations in the United States have set up stations XER, at Villa Acuna, and XENT, at Neuva Laredo in Mexico and are operating studios on the American side of the line. The bill, which has been favorably reported by the Senate, will, the Committee report sets forth, "give the Commission power to stop such outlaw broadcasting. "The bill will not interfere in any way with exchange of programs between the United States and foreign countries because the Commission is authorized to grant permits to those who desire to operate legally and in the interests of the public. "The committee has recommended adoption of the following amendment : "'Provided, That nothing in this section shall apply to the use of any studio, place or apparatus in connection with any pro¬ gram which is broadcast simultaneously by a foreign radio station and by any radio broadcasting station licensed by the Federal Radio Commission. ' "The purpose of this amendment is to make unnecessary the granting of permits where a station, licensed by the Commission, broadcasts a program simultaneously with a foreign radio station." This amendment was suggested to Senator Dill by Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters, who feared that the bill as originally written might be construed in such a way as to disturb the exchange of programs between this country and Canada. Mr. Bellows was said to have especially had in mind Station CKLW, at Windsor, Canada, just across the border from Detroit and which has studios in Detroi . Critics of the Bellows amendment argued that in the case of the Mexican stations having studios in this country, they might get around it by getting a small station licensed by the Radio Com¬ mission - some little 100 watter - to broadcast their programs. The answer to this advanced by the proponents of the Bellows 2 I Vi.:'..;. t/f ", • •• * ; . •: ; • Cl . , v " aa a; ; i a :;aaa (, 0? a-al J e ; a.-. " a/ a ' /•;• . '• ana . aa.; a : . fa :>f : aaaf a? ava ■ . " v.rf : a . a • 3§n..v .i*d 6 f>A U*.-! : ■■ :■ ' Hi3 ai ; £ f .a-? a .a - ; . o . •{? g,v. a a . ‘ J , . ■ v i'i . ■ ; >t a J f a'. ? , f ; .'/'a;/- '-ij ‘Xi£ "iS/l ( ,.-J f art i "■■'■.. . :?"i? v:'a:.-''a. v " ...• ■ ’ raj O . ■ { J' ■ ■■ : a >£3 1. Cxi\ 04 ' ;*■; o yo a- :•••' . a . .A. IX,; a ,f V a . .? !. .• ' a . •. 1,'- a of • ■ • : ;aa.i ..r va-aa- a a?a. vfi J ?>vr' ' a, a a! a.: a a- .• - a. <. '■ v : i; ' a. ; . a • ' i a a / a .aa'.a a.ai. ■■ . .a fa.: is ...a; fa !aai.:a:a-a • '■ j a a la :J ;,aJ U: a?a: : aa? a a, 1 .'-a' 'a. J fa • ■ a ; a -;a.' f, a.i:a-a. otStt . ■ a.a-ai a? a.' L: ' aa: : ? ■ . aa a a • a.; a .' < ' l «,£?• a :a a.a; . 3 a- aa. :a a • • aa . i. a \f ' ' 1 : a.,aia? a;aa i a. a.: a- : aaj a -a .a ;• a aa- . - a. a i ■'V. : ■ . •'.;?? a a? ? 'ax f a.:;;;, a- a -a: -a' 1 .?■■' if .a? a : ,a a. a, .aa-a.': a ^ ,, ■ aa ■ ; ■ o a a f ; .: : . a' -■ : .a- :a ■ ■ ' vaa i i • 6 ■. aa : l: : : a a- aa- ■ a ? a? af a .a' ; ;■ fa iViii ' i . /a,: i a -/a;, a : hv'O : . a ■ • ■ a j. r ... va * • a •? /V>.i : : :: J : ' a ; ■;a.a.a:a :a: aa a: Oa - a,afJa'' Kjj - ; i i. f. a : aa;: [ 1 aa : : ■ a: i a, iy . q . > a a a a f • :> ; ; a-; f ' i. ■ v . 2/23/34 amendment is that the Radio Commission could find a way to deal with this station when it came up for its license renewal. One of the stations which XER at Villa Acuna interferes with is WSB at Atlanta, Ga. , owned by the Atlanta Journal. Former Senator John S. Cohen, President and Editor of the Journal , has written to Representative Robert Ramspeck, of Georgia, as follows: "The purposes of the bill are manifestly so fair that it seems to me it should meet with no opposition. What its effect will be I cannot foretell. "We are the innocent victims of this lack of coopera¬ tion between Mexico and the United States. We have, as you know, been interested in radio for more than twelve years, and have recently erected our newest transmitter of 50,000 watts, the largest permitted under the radio regulations of this country. We also have a clear channel so far as the United States is con¬ cerned, but as Dr. Brinkley operates his border station on a wave length very near ours, it causes us great annoyance and probably great loss. I hope some way can be found to remedy the situation. This is certainly a step in that direction." WSB, Atlanta, is within 5 kilocycles of the frequency of XER, the Brinkley station which is on 735 kilocycles. It is not the only newspaper station with which XER interferes. Although WGN, owned by theChicago Tribune . is separated by 15 kilocycles, it is reported as being bothered by the border channel which, as is the case with most Mexican frequencies, "wobbles." WIBW, Senator Arthur Capper’s station at Topeka is but 5 kilocycles removed from XEPN, at Piedros Negros. WFAA-WBAP, operated by the Dallas News and the Fort Worth Star-Telegram is 10 kilocycles from XEBC, at Agua Galientes and 5 from WHAS of the Louisville Courier Journal. Adding to the complications is the fact that our fre¬ quencies end in 10 kilocycles and the Mexican in 5. In the United States, stations are separated by a minimum of 10 kilocycles so these Mexican channels within 5 kilocycles of ours play havoc. Mexico at the North American Conference first demanded 20 clear channels of us, but said later they would be satisifed with 12. As to their needs in this, they said it was a matter for Mexico to decide and not for the United States to say. They would not divulge their program nor would they tell where they wanted to locate the stations. They looked upon the air just as they did the freedom of the seas. The Mexicans felt that they had just as much right to use the spectrum as the United States. Judge E. 0. Sykes, who headed the American delegation, answered this by saying that the United States was already there and was not going to leave until Mexico could show that it really needed the channels. As to the freedom of the seas argument, he said that if a ship was in one place, another ship couldn’t come • :"1 nj f . , ■ ■ .0 r ; '■ : ■ !: on 'v ' , / If' : 3\}OO.\0 j" "■ , / 'J Bo no.-: j •>. / B V- ooar. J. vy. * ~n..r: >. (< ' ■■ ?■■: a , ry =vVa J ;? i: .:OJ hi.u.} poJi niY'd ; r v ; ;u r „r'-. c^. O l ciffr/i ;*. t & : ■ ; j r' ;•< , y '■ , : : ; .. ■ ■■■ - o; ^£iJQ .g > ~ ;v 7 .• lV' • ■ ’ ■ ; ■■■ ';■.••• iplinni di t »ynu JpijJJ: :Yo ::r'r'0 ■■ :c . ' •' no . Y" \ j • ik - 1 r> a . -,v B B' ■ ' : .f .. .1 Ai J i ■ . r . . - , • . ' i.r-Jiyil ' ■; !■ : 7 :V'l ' 7 " ZfOj.&O J !. , Cf ,'WO "i r$ j f . B'; . t .'K> - - .0 I i'i :j a '0 \£SiV! CilOO ■ - : ;• •• ‘ -1 . ■ r 1 ■■■■ •••; :-QQll 5- . i ■ y :o ' fX B j ; J: ; '.r / ■, P.o:ua,i , : ■ r , . A nc : i ■ j : B z i rptiiid v ;i'r Y : ■ , : ' ~ i. . ■ - , * * • :-n.! i C j-J. ■ . V t; •V J !S- ; •• :: dii i r r.. !'Z. ■: ;;vO !:r. * . y ’■ ■■ . Hi V i hi'i-i'i "■ • ■ BrU! • V/ . ■ :ab': .. :r v^i ' ’ i T% • 2; ■ ;>vi. ; j: iu:.u.r ; o ; v v.:! j ■ j -i •• ■: ;■ •• e-i ii.-'-jri -z,Y H.rr S •; ■ : ‘ • . ' - : . ' L . I ■- ' i ‘ .i ’ 1 I ' l ■ '• * * ,’ii* •'(€'• s'’ •. n /j ‘ ' . •’ Y • ■: : ii‘ ■ if. ' ic? i .1 . - ' . i • ■■ ' : l . " ,f ■••• ri r-.; • : -V v'.;: -V ... <* vf X'i - ' ' ^ 1 1 ■ . . ■ . . • : ■ r , : . ; i ' ' : ■ ; - cY : ' 1 ■ ; ’ ' ' • ; v •' :• .i,; i _ •<’ • y .• I :■ -i J , v : : it v ” . . 0 , : ^ ' ■’ H'i-J J :'i ; f. •: , " v- 7 f : i ;V it.f- w .‘vl .- .v. r'.o ;; j. -■ ci, ■ 2/23/34 along and push it out and get into that same place until the other ship vacated the position. Just so the United States, Judge Sykes said, already on a frequency, was not going to get off or deprive the people on that frequency of broadcasting until they knew the exact needs of Mexico. It developed that of the 12 exclusive channels demanded by Mexico, thev wanted six for border stations, of which 2 would go to Dr. Brinkley and Baker respectively, despite the fact they had been closed down in the United States. The move of James W* Baldwin, executive officer of the Broadcasters' Code, requesting the Code Authority to consider whether or not a Code provision could be enacted to operate against the Mexican stations brought the following letter to General Johnso from Herbert Feis, Economic Advisor of the State Department.” "The Department is of the opinion that the reason why such adjuncts of Mexican stations located in the United States for the profit and commercial gain of the station owners should not be subject to the same regulations as similar adjuncts of American stations." XXXXXXXXXX MADRID TREATY CONSIDERATION AGAIN POSTPONED Consideration of the Madrid Radio Conference Treasy by the Senate Committee on Foreign Relations has once more been set forward. No date for the next meeting has been named, X X X X X X X GRIGSBY-GRUNOW IN BANKRUPTCY The Grigsby-Grunow Company, of Chicago, once one of the country's largest manufacturers of radio receiving sets, was placed in bankruptcy this week by Federal Judge Barnes, who named Frank McKey as receiver in bankruptcy, according to a dispatch to the New York Times. The company's book value, according to the bank¬ ruptcy petition, is $14,000,000, while its liabilities are $6 , 000,000. XXXXXXXX - 4 2/23/34 NEW RADIO COMMISSION APPOINTMENT HAS THEM ALL GUESSING The appointment of Representative Anning S. Prall , a Democrat, of Staten Island, New York, as a member of the Federal Radio Commission to succeed W. D. L. Starbuck, apparently came as a surprise even to Mr. Prall himself. His name had not been mentioned. John F. Killeen of the Bronx, Farley * s campaign assistant was supposed to have had the inside track. As far as could be learned, Mr. Prall has no radio qualifications excepting, as someone facetiously remarked, "probably he own s a radio set". NBC and Columbia were reported to have worked for the re-appointment of Starbuck. The naming of Prall by President Roosevelt was said to have been as complete a surprise to the networks as it was to most everyone else. The appointment was a personal selection of the Presi¬ dent. It was said that the two are political friends of long standing. One version was that Mr. Prall was facing a contest in his election next Fall and though the future of the Radio Commission is uncertain, the appointment would at least save his face if a defeat were ahead of him. If political reasons were not the principal factors in the appointment it seems certain that Mr. Prall would not resign his i$10,000 (minus the pay cut) seat in Congress to accept a Commission position at the same salary if the President had not assured him of its continuance. Which leads ip to the question - "Is Mr. Prall slated for a place on the new Communications Commission?" One report was that Mr. Prall would not resign his seat in Congress until he saw what was going to happen to the Radio Commission. Prall, a resident of West New Brighton, was born on Staten Island, Sept. 17, 1870. He was educated in the public schools and was Vice-President of Cosgrove & Company, New York. He was appointed a member of the New York City Board of Education January 1, 1918, and was three times elected its President. He was appointed a Commissioner of Taxes and assessment from New York City in 1922. He was elected to Congress in 1924, and has been there ever since. Someone remarked that Prall having been an educator, it looked as if maybe Armstrong Perry and the Committee on Radio in Education, who have been severe critics of the Radio Commis¬ sion, might have had something to do with the appointment. Prall ! term is for six years. X X X X X X X - 5 2/23/34 BROADCASTING SURVEY FAILS TO GET UNDER WAY There is apparently some hitch in the survey of the broadcasting industry which was to have been made at the direction of President Roosevelt by a committee headed by Secretary of Commerce Roper. Secretary Roper said it was felt by some in Congress that the survey should not be made until after the Communications Commission had been created. The original idea was to make the survey for the information of those who had the task of drafting the Communications Commission bill. XXXXXXXX TIP THAT CANADA IS AFTER OUR COMMUNICATIONS BUSINESS In the confidential section (not for publication) of the National Whirligig, James McMullin, of the McClure Newspaper Syndicate writes: "The Canadian government is carefully laying its lines to take over the Canadian Marconi Company and with it a large slice of American transatlantic business. Developments already predicted in this column are working to a neatly-planned con¬ clusion. "The Canadian Pacific and Canadian National railways will shortly announce a merger of their communicat ion facilities - corresponding to Western Union and Postal. These communication lines have a 99-year contract with American companies providing that all their cable business must be transmitted through the United States. The Canadian government thinks this contract can be broken. Vigorous and inspired protests against the arrangement will appear regularly in the Canadian press from now on. "Meanwhile American cable users - including several large New York banks - are prepared to guarantee Canada an annual gross business of two million dollars from the United States in order to obtain cheaper rates for themselves. "Western Union, Postal and RCA are likely to counter by threatening to withdraw their accounts from the American banks involved. But New York insiders believe the plan will go through. The only factor that worries its sponsors is possible interfer¬ ence by the U. S. State Department." XXXXXXXX 6 • 7" ,:u a n .. . \q?, -v o ' -i V." : V-T .. • V< i . V .• ’ . ; r: v'r >r r f i: r: fzoF. vjyy, f z ■ ■> " n ; \ •• I i :■ : ri.-ozi \ H ":r /*. : ■■Li ' ' ; :u ... .r • ■ V : . ; *• e: o'"."; J > fiO'i zh .-iWJ : ■ P* „ i t.tii :ir ; • ... o'/; .** aol ^ -k , ;i/ :! ; v. ; ;u i: 2 Lay :>.! £ f;; ■ : ; 1 . :q.o l f ■ i. i#‘X :.u ;■ ir '/>?’- **••• . i'iif . 1 h: i,‘. , \ ‘ ri; . t Ji A . ,vv.r ■ . z,- .■ • •: yJv £• £ ,* i :. • ■ - i . r; / i."‘. ' * i -1 A' vi-}; £■»/*/. ':i‘ : Si .f .; ■ v. :? t'oz ] >:.• ■i-juf ■'/ • • ' •" ? . i: ■ - J (•>..!. ■ ' 7 ! . , . I v, t bp.j !-( -Vf c: c : ■ ;io j;i i. i r.;. * • ^ . . : S:; : ■■■ *Xo'v si .i * r. v, • . « ■ .i . 'V ri O r1 2/23/34 McCOSKER MAKES FEW CHANGES IN NAB COMMITTEES There will be few changes made in National Association of Broadcasters committees by A® J. ''Hollywood" McCosker, who is serving his second term as president of the organization. Arthur B. Church, of KMBC , Kansas City, will become Chairman of the Commercial Committee, and H. K. Carpenter, of WPTF, Raleigh, N. C. , will assume the chairmanship of the Cost Accounting Committee. This Committee will be especially important this year because the Code requires a cost accounting system. Walter J. Damm, of WMTJ, Milwaukee, will be Chairman of the Television Committee. XXXXXXXX NEWSPAPER EXECUTIVE HAILS RADIO NEWS AGREEMENT Addressing the Inland Press Association at Chicago, E. H. Harris, Chairman of the American Newspaper Publishers' Association termed the news broadcasting agreement effective March 1st among press associations and radio networks, the "starting point of a constructively mutual relationship between these two important industries." X X X X X X X BROADCASTERS WILL ATTEND PURE FOOD HEARING Representatives of the National Association of Broad¬ casters will be present at the public hearing on the new Copeland Food and Drug Bill Tuesday, February 27th. The Copeland measure discards many of the advertising features found in the Tugwell bill. John W. Darr, secretary of the Joint Committee for Sound and Democratic Consumer Legislation, in connection with the food and drug legislation, raised the question of radio censorship by announcing that the National Broadcasting Company had refused to permit broadcast advertisers to use part of their time for a statement in regard to the Tugwell Bill. He made pub¬ lic a letter from E. R. Hitz of the NBC Sales Department to J. A. Carter of Benton & Bowles, Inc. , agency for important food and drug advertisers, which said: "'Our legal department has ruled that this is a matter of such controversial nature that it is too dangerous to use. As a matter of fact, almost any discussion of the Tugwell Bill at this time is dangerous.' I 7 ft i .i.; ?. a. • i X / «? % ■, : V X " 'a'-"- ’* • : • v ' 7 V IoH . L *A , , ./■ : ■' i 77' O' 71 ' 7:7' X 'a''’ ■' F ■;/; . X: .Ht-0 '• AA.a; on a 'as? :;.;a-: : •: ' a a rX X f. 1 ,DXV.X la, ^ra.naxX .X 'lA'a.- % .7 •: -. )k \ '-"X oi cap. 3-iiAH ■•;vr "xx x: a.-m M, ::X , i . ' f ' <: : : • ;• A • lX . .mini . AraX a:., a :.j : : \A ■i k; ; 7 val.? An. • -cnia a .A -vAO ,.7./:i,X , -A" .? , K ; ' ‘ 7 . ••• '7; .7-1. •/ 3 AC' '.a.' 7 ,J;.L l 7 7 7 7- i »J 7 X .17 7 CIO 7 .7:7 7707 7 7 7 7' ./'T7? 17’V7. 7 7 M 7 V X , V X : O/J; 'i X 7 ,"i C i ; 1 L C ■ 7 A 7 . 7 . iw ; y i jj a. ' .. .• V v ••• ' \r - . A ..i 7, / '> . t , ft. . 7 ■ 7 . X'a. -^x- XX XX xxx:-', ri-Oiir? A XJX V. . X-rXXXXA xx: X-XX- . C:.x; XXaaXAI x; c ■ ; v t : : 7 r:z \- .X 7 ; l . . p .? .1 >■: i :J0 AX' 1 7 7 7 7.q yjp 4 ■ VC 1 v 1 r. . 1 : 7;a 77 # ,;7- ; j j 7 = -v ^ . ; .7 ,7.7. 7. -X 7 .7-.Xi.7f 7> X; 7il Xj'lvVi,-' ;:f!v Xv 7 1?7 .7fv , x rax- x •i - 1 7- 7 i. . 7 : l ■ ' -• ,7.;; ■; 7 - : y 7 7 7 • 7... J .. 7-- •" 7; v7. 7 J7' i 7 X i. ' : ; 7.. 7.7i X 7 >' 7 ’77" 7 771 ','77 ■ 1. 1‘"; ... . .7 ■ . X 7 7., ■■ f .' V': ,X ’ X..7 : » : ' 7./77., - ,7.'' .. ' ' X • 77 , X 7 ,7: ; ’ • 77. X ' .7: 7r , } '■ X 7. ; 7 'Lit S. :: -V: *0 ■■■ (.7 7 , 7 7 iV x , x 7 '7' 7 j 7':7. ; '7 7 ...7 X [X H . X; a- iXL ; 1 '"x x.:; c c>X .X- \ xai ;.:a a" r. ;i ;ax a a Xa v/Lla: ■ ■■ a; :■ X,.-.;. XXX; oiiS ’XO .7, ,a niO'T't "a-,’ : . 7 ; A ' 7/7:. .ja-< .7770177; 7 7 XX 'X7-.a:aa: X ' t 7:7;! , 7 . X. "•• i"‘ " A arA'a X r“' '7 ' 7-X ; 7 jo;: 71; : 7 '7 . ; 7: i : 7 . A 2/23/34 Mr, Darr said that other broadcasters had made oral refusal of similar requests. He made public this statement: "The refusal of the broadcasting companies to transmit this announcement over the air illustrates the exact point we are trying to make in our own activities. We cannot blame the National Broadcasting Company for trying to protect itself against possible bureaucratic reprisal. On the other hand we must face the fact that it indicates the invisible hand of bureaucracy reaching out for power and control, even before legislation is on the statute books. This incident will dramatize for the American public the broad fight we are making for them in their interests - the maintenance of the American system of freedom and individual liberty versus bureaucratic compulsion and control, "We believe it will further point out the dangerous trend toward the unduly hasty type of legislation under the guise of emergency legislation which has become the style of the day in contradistinction to legislation in which all parties affected are properly considered. " While broadcasters made no formal reply, it was said on their behalf that the radio interests provide quantities of free time for discussion of public topics, but that they make it a pol¬ icy to keep controversial matters out of commercial programs, despite numerous requests of all kinds. Weakening of this rule, it was said, would result in continual pressure on sponsors to give up part of their time, and would fill the air with talk of doubtful interest to the public, beside putting an obligation upon the networks to furnish equal time in each case for presenta¬ tion of the other side of the controversy. X X X X X X X DILL PUTS RADIO TELEGRAPH SAVING AT $100,000,000 It was the competition of radio that brought the only reduction in rates across the North Atlantic in the last fifty years, Senator Dill, of Washington, declared, "The general reduc¬ tion in rates has saved $100,000,000 in communication costs between this country and Europe alone. From New York to Germany this reduction amounted to 11 cents per word and from this country to Liberia, 26 cents per word", the Senator said. "Across the Pacific the reductions are even more strik¬ ing, The press rate from San Francisco to Manila in 1922 was 27-g- cents per word. Radio reduced the press rate to 8 cents and the Navy radio is only 6 cents. From San Francisco to Tokio in 1922 the press rate was 32 cents per word. Radio reduced it to 18 cents with a deferred rate of 8 cents per word. From San Francisco to Shanghai radio reduced the press rate from 31 cents to 12 cents per word. From San Francisco to Tokio radio reduced the commer¬ cial rate from $1.20 per word to 66 cents per word. 8 2/23/34 "Some of the most striking reductions in commercial rates for communication service from the United States to foreign stations as reported in 1930 are as follows: "To Porto Rico - 10 cents per word; to Russia - 13 cents per word; to China - 15 cents per word; to the Philippines - 19 cents per word; to Liberia - 26 cents per word.; to French Indo China - 34 cents per word; to Japan, 54 cents per word; to Venezuela - 58 cents per word; to Dutch West Indies - 92 cents per word. "Since that time there may be still further reductions. If the present competition continues there undoubtedly will be still further reductions made. It is generally agreed that for distances of 1,000 miles or more, radio communication already is cheaper than wire or cable can possibly be. An international monopoly would destroy this competition and substitute the slow formal exchange of diplomatic notes to bring agreement with various foreign governments as to lower rates." X X X X X X X WEATHER BROADCASTS AID MOTORISTS Weather information disseminated for airmen by the Department of Commerce also aids automobile drivers in planning trips, according to information received by the Department from agencies which furnish route information for travelers on the highways. Comments upon this use of weather broadcasts have been received by Rex Martin, Assistant Director of Aeronautics in charge of the air navigation division, as a result of his sug¬ gestion that radio manufacturers offer automobile receiving sets capable of receiving the frequencies upon which these reports are broadcast . The Beacon National Tourist Bureaus reported that since it had arranged, in 1930, to obtain the airways reports, it has supplied meteorological information to more than 20,000 motorists, and added, "Your suggested plan, in actual practice, will no doubt be one of the most outstanding measures ever offered the motoring public that would effect an economic saving in property damage and aid very materially in the reduction of loss of life and limb. " A letter from the Nashville Automobile Club said, "Accurate weather and precipitation conditions influence many routings and the public is growing more and more to demand weathe: facts. We are grateful that we have you on whom we may call for changing conditions. The government has done a great thing for the- automobile as well as the air traveler in establishing radio stations. More than once to our certain knowledge discomfort or even hardship and suffering have been averted by accurate information given by you." X X X X X X - 9 - 2/23/34 BUSINESS LETTER NOTES For the entertainment of the family in the new "Home of Tomorrow", an 8 room model house erected by the Westinghouse Company at Mansfield, Ohio, there are seven radio sets, one being an all-wave receiver said to be capable of providing programs from all over the world. Another radio set, installed on the dashboard of the home-owner's car, throws the garage doors wide open upon the car's approach. The driver simply touches a switch. Thomas P. Littlepage, radio counsel, has now recovered from a recent siege of pneumonia and has gone to Florida for a brief period before resuming his work. A complete apparatus for the purpose of protecting his baby from kidnappers has been assembled by Marcus W. Hinson, vice president of the Institute ofRadio Service Men, for exhibi¬ tion at the organization's convention, beginning Friday in Chicago, according to the Associated Press, A small cell which emits a thin ray of invisible light is concealed beneath a false bottom in a baby's crib. This beam, shuttled between mirrors at the head and foot of the crib, focuses on a photo-electric cell and any inter¬ ruption which shuts off light from the "eye" starts a loud, alarm. An alarm is also set off if the current is disconnected. George McClelland told Los Angeles reporters that his new network is no myth and that it would be in operation next Fall. He said that L.A. would be on the network and while there conferred with Earle Anthony of KFI. A financial report of the Sangamo Electric Co. and sub¬ sidiaries for 1933 shows: Net loss after interest, depreciation, minority interest, taxes, subsidiary preferred dividends and other charges, $63,655, against $263,931 less in 1932, President Franklin D, Roosevelt will be heard throughout the United States over combined coast-to-coast networks on Monday, morning March 5, when he addresses a conference of NRA code auth¬ orities in Washington, among which will be those of the radio industry. X X X X X X - 10 - 2/23/34 PROBES CHARGE AGAINST COMPOSERS Investigating complaints against the American Society of Composers, Authors and Publishers, Charles B. Brewer, Special Assistant to the Attorney-General left Washington and spent most of Wednesday in the offices of Simon E. Sobeloff, United States District Attorney* Mr. Brewer, who conferred with James K. Cullen, Mr. Sobeloff' s chief assistant, declined to be interviewed. It was learned, however, that he went through the District Attorney's files on cases bearing on the prosecution of copyright law violations and took up with Mr. Cullen various complaints which have been made there against the Society of Composers, Authors and Publishers. Among the cases looked up by Mr. Brewer was that of William Kim, 18, of Philadelphia, who on December 23, 1931, was sentenced to a year and a half at a Federal prison camp by Judge William C. Coleman in the United States District Court. Kim pleaded guilty to violating the copyright lav/s by selling "pirated" song sheets on the streets. The prosecution of Kim was instigated by agents of the Society,, Charges of violating the anti-trust laws, of unfair methods and competition in business and of racketeering were laid against the Society by representatives of the Music Users' Protective Association of America, Inc., with headquarters in Baltimore, The charges were made before theFederal Trade Com¬ mission at Washington recently. The local association filed a petition with the Federal trade group, listing a series of complaints, including alleged monopolistic acts of the composers' organization and dealing particularly with a campaign which the latter group started recently in Maryland to compel owners of radio sets in small busi¬ ness establishments to take out licenses at a minimum annual rate of $60 for receiving copyright music through their radios. X X X X X X X EUROPEAN AIR MESS GETS WORSE Rebel stations which refuse to conform to the Lucerne agreement on wave lengths continue to gum up the ether in Europe > and drastic action is planned to stop them, a dispatch from Paris relates . Biggest offender is Luxembourg station, w hich not only refused to change to 240 meters, as arranged by the Lucerne plar 11 - 2/23/34 chose on the day of European changing over to switch from 1192 meters to 1304 meters, which interferes seriously with Warsaw’s broadcasting under thenew plan* Listeners who dial in that v/ave-band now get combina¬ tion of Polish and Luxembourg dialect out of their loudspeak ejrs , which sounds like Esperanto but is harder to understand. Luxembourg has had an ultimatum demanding that it be good. If it won't play, International Broadcasting Union plans to put another station on the same wave length as Luxembourg and drown it out so that it can't be heard outside its own country* Already some station on the Continent is deliberately sending Morse on the same frequency during Luxembourg's pet broadcasts, just to add to the pleasure of the public. French are playing their little part in the confusion. Eiffel Tower was supposed to shut down on thenight of the change¬ over, but it is still going merrily on. French say they will keep it going until they get a clear waveband for Radio Paris, their other station, which they say is being jammed, on the 1796 meter band, by other Continental stations. XXXXXXXX CLAIMS TELEVISION'S GREATER DETAIL MAKES PICTURE INVISIBLE Present television methods will defeat their own pur¬ pose, and with greater and greater refinement of detail, toward which every television experimenter is today striving, the televised picture will actually disappear from human vision altogether, Dr. Orestes H. Caldwell, former Federal Radio Com¬ missioner, declared, speaking before the Quill Club of N ew York City at a dinner held in the Yale Club last Tuesday night. "To get finer and finer detail by present methods of television scanning, more and more lines per picture are being attempted", said Dr. Caldwell. "This follows the principle by which increasing the number of lines in a half-tone -- getting finer dots, — gives greater detail. "But in present television systems, this process of increasing lines in the television picture cannot be kept up indefinitely. It involves sha.rpening, to smaller and smaller dimensions, the single flying spot of illumination, until, if high detail is to be obtained, the flying spot will finally reach a point where it must become so small, and must cover a proportion¬ ately larger area and travel, many frames per second, that the intensity of illumination of the picture will begin to suffer. A threshold minimum of necessary retinal stimulus will be rea.ched, also a rapidity beyond the ability of the optic nerve to respond, so that the 'perfected television picture' of ultimate fineness may totally disappear from human vision. " XXXXXXXX - 12 - - ■ : - ■- ?* ■ , - ? .. ./ : • .; , • • ■ • ’ \ •,%* ... • r • - . JiJQ .ffr'fr.r -J S J . •' . r'. • : ' . . £U ;j i ' 0 D .tc IrCi £ J • x. " • • t /*_J v i -' .i i A. r;ri tfrh :yT l ■ r c; rri ; 'fr" ■ ' >, * ” ; / r .H 7 .. ■’ r; ; Tfr v.v • ; ‘ : i ■J ■ • / fr ■ - • ■ . i'\ C. iT- 'C- /.•• J ; i ."V C: ".rvi.fr::, j ? ■f • ~i .. i>| : . ■ : ' £ fr?T‘V ‘ X' j Vfr s* n.;;r> iritCX ■ ; \ ?o : : ' X ■' • - ' vvv i : / X/v; r >, /. A Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication L INDEX TO ISSUE OF FEBRUARY 27, 1934. New Communications Commission Bills Introduced Into Congress . 1 Prall's Confirmation To Be Considered This We,ek. . . Brinkley Action Taken With A Pinch Of Salt . Claims Government Squelched Rickenbacker Broadcast . . . 3 Roosevelt Special Message Urges Communications Commission . 4 Radio Wholesaling Trade Code Withdraws Disputed Section . 5 German Radio Industry Makes Progress Despite Unrest . 7 Business Letter Notes . 8 RCA Cut Loss By $551,492 . 9 i \ CO CO February 27, 1934 NEW COMMUNICATIONS COMMISSION BILLS INTRODUCED INTO CONGRESS Bills which, would create a new Federal Communications Commission were introduced into the Senate and House last Tuesday by Senator C. C. Dill, of Washington, Chairman of the Interstate Commerce Committee, and Representative Sam Rayburn, of Texas, Chairman of the Interstate and Foreign Commerce Committee of the House . "The House bill is almost identical with the one intro¬ duced by Senator Dill", said Representative Rayburn, "except that in the latter bill instead of transferring the functions of the Federal Radio Commission, it repeals the Radio Act of 1927, and includes within its own text provisions relating to radio broad¬ casting. "The bill does not very substantially change or add to the existing law except in centralizing under a new Commission to be known as the Federal Communications Commission, the administra¬ tion of those provisions of Federal law which relate to wire and radio communication, including broadcasting. " "The Senate bill omits several controversial subjects" , Senator Dill explained. "It contains no reference to regulation of issuance of securities, creation of sinking funds or permission of mergers. The inclusion of these subjects would require such long hearings as to cause the bill to fail to pass this session. "Under this bill the Commission will organize and set up rate regulation first. The hearings will be limited to the advis¬ ability of transferring the powers of the Radio Commission and the Interstate Commerce Commission, insofar as communications are concerned, to the new Federal Communications Commission. "In the provisions of the existing radio law together with amendments passed in the 72nd Congress, which President Hoover failed to sign, there are some minor changes removing quota restric¬ tions for stations not exceeding 250 watts and also limitation on the length of clear channels. "The bill gives no power to regulate advertising rates by radio. Hearings will probably begin in about ten days or two weeks and I hope they will not consume more than four or five day-. Some of the provisions of the Senate bill are.’ "The new Federal Communications Commission shall be com¬ posed of seven Commissioners, one of whom the President will designate as Chairman. They shall be appointed for the terms of one, two, three, four, five, six and seven years respectively, 1 . ; .. . ■ • ; ' ’ r ! - • •: j-..;;:*.. J ; O OC X:'. ,7 .. t :■ * f - ' '• ■ > .. } ' v , i • O; - ■ vo- s v! .v ■ - i ■ ■ • w ■( r . V, .Viy ; r;77 • • o •; t 0l:0 .0-''- J 0: O' -.7 0-0 ; i i; v- 7 7 ■. • r i. V • £ j- l t r! { , i / '7.0 o- to loo': vt:c •••’■ h *. v . •'* • C. ! * •• . ■ i : to . '7 ‘.'Or,- v?v f. J -tJ ;o::, 0 . lOoi p C' o' • O “ ] i j ’> ’ 0 > i . ; J ' /• '-->v . . ' *, o: • :. 0: O-rXi toov : N* . ; 7 1 f v ■ o ■ ■ v «?.n v J i - - ■ ■: e l U i: c; . 0 *3 s , ; 1 ; c: t * , « ' ovo- v- ;,ov .■ q o :‘r ■- .-t 1 1 " - -c X : *. OOOf V t oooit . . ":o o: ov: to :v v ■ 7 7.0 , 7 o'i ;v j- V O .{ " lot A r • o- J. y • 7,: C 1 j ,v •' . . C 1 'i1 ’ ■ / ■ — ' \ Vi •j ■ • c o -i -) '* T ,, "i o Ovo: V= ‘ i 0; .V - ;J , 7- 7' 0 - / . i- ■ \ , ... ■ . - i : . ■ 0 0' 7 7, 0; ' Y ; t ;■; t Joy., q iov V.t 7 Cot :j ■ ■■ 7 ■•■ J ; ; ; . . t : O-J : : ■..0 0" VO.,; 0 'X 0 r;.;' : . o; v o.i j. ov j Oo;V n/ 7; . a 7. f _ * ' fi-t :• •• Co • • s - o . o -ot 1; Y.C V 7 .70. .0 7 7. 07 J 77. ' \ • - ,• . ,. v ,-i 1 to 'O s “ i " ■a o- -7 7 .. 7 - ■ ' ■; '77 7 ok: ■ i *A 1 ; -S* ■- . C% K * 1 * 1./ ... , 0 -V\ v 0 ,o 77.7 . p:-o; [ V ■ : .1 V : ■. j. ■' ■ .' . . .7 . to; : • i ! r> -■ j , i ooo.o ■o iooo i, 0 £ .1:7 :..v 0 yC t i ; ; ‘‘ • r » ' > f ; )?] 0 ■o' .0 ■; . J .i. 7 1 voo : 0 00.5 ... ' : J .... 7 7 1 •• • ' 1 ■ : 5 • ioo: Y'O.-OO 0:;j to . i. 'A Ivv; . " : ; ! /. *; •: . • • ,4 '.7 ' * 0 * t • * ’?■ ;.^'0- V v: t & ■ 7‘ 7,.i ..O': 7'o7; .a i > • : oto ooo ■ o .V Ai. . o.vo:'; 7,0 ': B; ■ • v ■. * C- J >o ■ . o ; i ^ i ,.C; 'O'. 7 ; 77 • v .77 . . ft 7vo;: ! '1 .V- 2-r. O; to -- , ■ i T - - ' • 0 o-C; 0.77 ::: ,7? •' .O 7 . ' ; • ■ V' 0 0 0 ; ■ r. i 77 .C ;. ■ - iiC . i: ' ! ■J : 1 i:j. n; .: r^': i ** ' ;:v ■'.;... : . 7 :i ; i ■ * ■;. *- i . » 7 . o':7 a’ i • v i. * ; XZ:\ .. ,i 0 [o i •■■••I' ... \ i ■ . .1 1 y 7 0 A vv-o:: '■“■■>' .i o ,7i ;. .7i ■■■ 7 7 r'tq j •77 ■ V ;• V ' : ooot '0 7 •' ■- . ; .: ■ • *• • ' * .; ■ 7 ' O' ; oi a ; --o ‘■•oo.o..; . 7 7 0 7' "7 It > 7 .! v 7'77 ■■ .. . r ' r ?* X -oo. to o . • - . \s o- •■■ - : it.' xtoo .1 . 7 . . . . ( .1 t ‘ 1. V. r .a. j O'. x::i it; 0:0 to 77 , 7 7., .0, 17: 7 ; : : V ;. 7-07 to o;:: f7/.» ( {• ; ■ V bo.;m.tr-qo^ o :.Kf 1 i l ■ -;7 • 7 0 ' V ■ * (.i - v 0 •: ■ ; :■<: VO- "0 o ■ o ■ -0 1,0 .7, , , .0 , V : :r 2/27/34 but their successors will be appointed for seven year terms. The salary will be $10,000. The Commission may appoint and fix the salaries of a secretary, a chief engineer and one or more assist¬ ants, a general counsel, assistants, experts, etc. The general counsel and chief engineer shall each receive $9,000 and no assistant or expert shall receive more than $7,500 per annum. Each division may appoint a director at $8,000 per annum. Not more than four Commissioners, nor more than one member of a divi¬ sion, other than the Chairman, shall be members of the same polit¬ ical party. "The Commission shall be organized into three divisions which shall exercise the jurisdiction of the Commission as follows: (1) The radio division shall have jurisdiction of all matters relating to or connected with broadcasting, with amateur stations, and the mobile service; (2) the telephone division shall have jurisdiction of all matters relating to or connection with common carriers engaged in voice communication by wire or radio other than broadcasting; and (3) the telegraph division shall have jurisdiction of all matters relating to or connected with common carriers engaged in record communication by wire, radio, or cable. The Chairman of the Commission shall be a member of all three divisions; two other Commissioners, one of whom for each division shall be chosen Vice Chairman of theCommis sion presiding over the division, shall be assigned by the Commission as members of each division. Except for the Chairman, no member of the Commis¬ sion may be a member of more than one division." Further provisions in the Senate bill are: "Allocations shall be charged to the State or District wherein the studio of the station is located and not where the transmitter is located: Provided further, That no frequency used for broadcasting shall be reserved for the use of one station for a distance of more than two thousand two hundred miles, airline, if any person, firm, or corporation, capable of rendering radio service in the public interest, make application to operate broad¬ casting apparatus on any frequency so reserved, at a point beyond the distance of two thousand two hundred miles, airline, from the station or stations already licensed and operating on said fre¬ quency, and all applications and licenses considered and granted under this provision shall not be counted as a part of the quota of the zone in which said additional stations are located: Provided further, That the Commission may also grant applications for additional licenses for stations not exceeding two hundred and fifty watts of power if the Commission finds that such stations will serve the public convenience, interest, or necessity, and that their operation will not interfere with the fair and effic¬ ient radio service of stations licensed under the provisions of this section. " "No license granted for the operation of a broadcasting station shall be for a longer term than one year and no license so granted for any other class of station shall be for a longer term than three years, and any license granted may be revoked as hereinafter provided." la 2/27/54 "Suits to enjoin, set aside, annul, or suspend any order of the Commission under this Act shall be brought in the several district courts of the United States, and the provisions of the District Court Jurisdiction Act are hereby made applicable to all such suits, and all references in said Act to the Interstate Com¬ merce Commission shall apply to the Commission. The provisions of said Act as to venue of suits to enforce orders of the Interstate Commerce Commission are hereby made applicable to all suits to enforce orders of the Commission, made under the provisions of this Act . " "No person shall broadcast by means of any radio station for which a license is required by any law of the United States, and no person, firm, or corporation operating any such station shall knowingly permit the broadcasting of, any advertisement of or information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes. Any person, firm, or corporation violating any provision of this section shall, upon conviction thereof, be fined not more than $1,000 or imprisoned not more than one year, or both, for each and every day during which such offense occurs." ■ "Nothing in this Act shall be understood or construed to give the Commission the power of censorship over the radio com¬ munications or signals transmitted by any radio station, and no regulation or condition shall be promulgated or fixed by the Com¬ mission which shall interfere with the right of free speech by means of radio communications. No person within the jurisdiction of the United States shall utter any obscene, indecent, or profane language by means of radio communication." ' "If any licensee shall permit any person who is a legally qualified candidate for any public office to use a broadcasting station, he shall afford equal opportunities to all other such candidates for that office in the use of such station; and if any licensee shall permit any person to use a broadcasting station in support of or in opposition to any candidate for public office, or in the presentation of views on a public question to be voted upon at an election, he shall afford equal opportunity to an equal number of other persons to use such station in support of an oppos¬ ing candidate for such public office, or to reply to a person who has used such broadcasting station in support of or in opposition to a candidate, or for the presentation of opposite views on such public questions. Furthermore, it shall be considered in the public interest for a licensee, so far as possible, to permit equal oppor¬ tunity for the presentation of both sides of public questions." XXXXXXXX -lb- February 27, 1934. PRALL'S CONFIRMATION TO BE CONSIDERED THIS WEEK The confirmation of Reoresentat ive Anning S. Prall, Democrat of Staten Island, N. Y* , nominated by President Roosevelt to be a member of the Federal Radio Commission will be considered by the Senate Interstate Commerce Committee Thursday (March 1), Due to the fact that Representative Prall was a member of Congress when the Radio Act was passed, the question of his eligibility has been raised. Paragraph 2 of Section 6 of the Constitution reads: "No Senator or Representative shall, during the time for which he was elected, be appointed to any civil office under the authority of the United States which shall have been created, or the emoluments whereof shall have been increased during such time; and no person holding any office under the United States shall be a member of either House during his continuance in office. On the face of this, Mr. Prall having been a member of Congress when the Radio Commission was created, would seem to be ineligible for appointment to the Commission,* However, in the opinion of one observer, the clause "during the time for which he was elected" would probably save Mr. Prall. The Radio Act was passed 7 years ago and the time for which Mr. Prall was elected (that particular 2 year term of service) has long since passed. However, if Mr. Prall did not assume his place on the Radio Commission and remained a member of Congress, w hen it passed the Federal Communications Commission Bill, if it does so this session, Mr. Prall would not be eligible to appointment on the new Commission until the time for which he was elected has expired, which will be the end of this year. xxxxxxxxx BRINKLEY ACTION TAKEN WITH A PINCH OF SALT While awaiting official confirmation that Station XER, at Villa Acuna, operated by remote control from Del Rio, Texas, by Dr. J. R. Brinkley, so-called "goat gland specialist", has been ordered closed by the Mexican Government, American officials were inclined to be skeptical. Accepting the news at its face value, Judge E. 0. Sykes, Chairman of the Federal Radio Commission, said: 2 .-o i Ac i: r v , •v: -- :■ ■; J.- .. • i. : • • •- :f - 7 :':A; . r' • A Uvt . ■ ;,-v ;-. v •. ' •:P v,r .Vfi- V-V\ ' ;"V\ . -"7.1 'T -J ' ; • ■ . ‘ .? ■ ■ ; 7- i'r ' ■ **> v M. r Si \ v, ,;y 2/27/34 "I am very gratified, to hear of the Mexican government's action in closing this station", said E. 0. Sykes, Chairman of the Federal Radio Commission. "I think it will go a long way to smoothing out radio difficulties between the two countries." This expression was regarded as a friendly gesture but other officials said they would await further advices before accepting the fact that the Mexican Government meant business with Brinkley or intended a cleanup of the Mexican border which is lined with stations broadcasting medical and other objectionable programs into the United States. "The Mexicans have a long way to go", a Federal official said. "However, if they keen up their crusade, fine!" One of these is XENT at Neuva Laredo, a short distance from Laredo, Texas, operated by Norman Baker, Brinkley and Baker were both closed down in the United States, the former at Milford, Kans. , and the latter at Muscatine, la. According to advices from Mexico, Dr. Brinkley had obtained an injunction against the Mexican Government to prevent it from proceeding against him for broadcasting in English without first broadcasting in Spanish, as their rule requires. This injunction, it was reported, had been dismissed and the Brinkley station, guarded by soldiers, would be dismantled within 30 days. If that is true, insofar as Brinkley is concerned, there will be no need for the bill now in Congress which would prohibit a station in a foreign country having a studio in this country in order to transmit programs to be broadcast back into the United States . The Senate Committee has already approved this amendment and it seems assured that the House Committee will report the bill favorably following its meeting next Thursday (March 1). xxxxxxxxx CLAIMS GOVERNMENT SQUELCHED RICKENBACKER BROADCAST A charge is made that the Government prevented a broad¬ cast in connection with the last commercial air mail flight. "The private air lines' farewell gesture - Eddie Ricken- backer's 13-hour transcontinental flight v/ith the mail - was scheduled to be dramatized over the air waves", James McMullin writes in the "National Whirligig", published by the McClure News¬ paper Syndicate. "A special broadcast featuring Eddie had been arranged by a large radio station. "At the last moment a government representative stepped in to cancel the broadcast on the ground that ' It would not be in the public interest. ' "Wall Street has plenty to say about free speech. " - (More) 3 2/27/34 Mr. McMullin adds in the "Confidential Section (Not for publication ) : "The radio station which the Government blocked from sending out the Rickenbacker report was WOR, Newark. " X X X X X X X X ROOSEVELT SPECIAL MESSAGE URGES COMMUNICATIONS COMMISSION All doubt as to whether or not President Roosevelt would press legislation for a Federal Communications Commission at this session was dispelled by a special message to Congress advocating its creation. This means the end at an early date of the Federal Radio Commission. No changes are advocated for the Radio Act which evidently is to stand intact. It is expected that the new Commission will be comoosed of seven members. The members of the present Radio Commission could be named to the new Commission but not necessarily will be. It is thought that Judge Sykes and Secretary Pettey had a chance of holding over. The text of the President's message follows: "I have long felt that for the sake of clarity and effectiveness the relationship of the Federal Government to cer¬ tain services known as utilities should be divided into three fields - transportation, power and communications. The problems of transportation are vested in the Interstate Commerce Commission, and the problems of power, its development, transmission and dis¬ tribution, in the Federal Power Commission. "In the field of communications, however, there is today no single Government agency charged with broad authority. "The Congress has vested certain authority over certain forms of communications in the Interstate Commerce Commission and there is in addition the agency known as the Federal Radio Commis¬ sion. "I recommend that the Congress create a new agency, to be known as the Federal Communications Commission, such agency to be vested with the authority now lying in the Federal Radio Commission and with such authority over communications as now lies with the Interstate Commerce Commission - the services affect¬ ed to be all of those which rely on wires, cables or radio as mediums of transmission. It is my thought that a new commission such as I suggest might well be organized this year by transferrin w the present authority for the control of communications of the Radio Commission and the Interstate Commerce Commission. The new body should, in addition, be given full power to investigate and study the business of existing companies, and make recommendations to the Congress for additional legislation at the next session. "Signed: FRANKLIN ROOSEVELT." 4 ; , • i • i fV ^ ■ *' 1 ’.a li :i‘. (i / *? S/27/34 The Administration Communications Bill will be intro¬ duced by Senator Clarence C. Dill (Democrat), Washington, and Representative Sam Rayburn (Democrat), Texas, Chairmen of the Senate and House Interstate Commerce Committees. Mr. Rayburn said he expected to call hearings soon after his committee fin¬ ishes its stock market sessions. Notwithstanding that the Radio Commission would be abolished by the Administration, Representative Prall, of New York, who has just been appointed to the Radio Commission said that he expected to be confirmed and would resign from Congress as soon as necessary. This gave rise to the impression that he would be named to the new Commission or that the President had some other business in mind for him. X X X X X X RADIO WHOLESALING TRADE CODE WITHDRAWS DISPUTED SECTION Last-minute withdrawal of a disputed section establish¬ ing discount schedules served to accord almost perfect harmony for a supplemental code of fair competition for the Radio Whole¬ saling Trade, presented at a public hearing. Benjamin Gross, Chairman of the Code Committee of the Radio Wholesalers' Association, Inc., presented the Code and offered a number of minor amendments. Explaining his request to have the proposed discount schedules withdrawn at this time, Mr. Gross stated that the original intent was to have District Agencies determine fair schedules for various trading areas, and that the specific discounts set forth in the Code were merely "to test the proposed principle involved." However, he added, there had arisen "so much misunderstanding and misinterpretation of the constructive purposes underlying the plan" that the Com¬ mittee felt early approval of the Code would be expedited only through eliminating this "major controversial issue." Mr. Gross stated that his association of 294 firms represented 60$ of membership in the trade and that these firms did 75$ of the total annual volume of business, which had shrunk from $425,000,000 in 1929, to some $80,000,000 in 1933. Total employees in the trade, he testified, had decreased from 22,000 to 4,500 in the same period; and he estimated that the Code would increase employment between 30$ and 50$ this year, James E. Aitken, President of the sponsoring associa¬ tion, stated that it was intended to have the Code cover sales of all apparatus for use in broadcast reception, but not to apply to sound equipment for theatres. It also was intended, he testifies to prevent trade prices from becoming available to individuals r firms "who merely trade on a name", but to make them apply only to firms in a position to properly present and demonstrate a variety of radio instruments. 5 2/27/34 H. G. Erstrorn, executive Vice-President of the Associa¬ tion, pointed out that the Divisional Code Authority would have its individual members chosen from zones representing various sections of the country, and that it would appoint each District Agency in such manner as to provide for administering the pro¬ visions of the Code "expeditiously, intelligently and economically Roscoe R. Howard, of the Zenith Radio Distributing Co., Chicago, spoke briefly in support of the proposed plan for protect ing dealers; and David M. Trilling, of Philadelphia declared that the mandatory filing of price schedules with District Agencies would eliminate the "chiseling" now prevalent in the trade, and that consignment sales had been limited because they had been found "rarely, if ever" effective as a means of actually promoting trade. Mr. Trilling advocated the curtailment of "prize" cam¬ paigns. Harold J. Wrape, Chairman of the Advisory Council of the proponent association, defended the proposed limit of 5 io on o. tributions toward dealer advertising as designed to prevent waste¬ ful expenditures "which must come out of the price of the product as paid by the consumer. " Speaking to the proposed rules govern¬ ing advertising, Mr. Wrape stated that these were sensible, and that "so much misleading advertising with respect to radio sets has appeared that the public has lost confidence in the honesty of radio merchandising. " Irving C. Fox, representing the National Retail Dry Goods’ Association, declared that radio departments of large stores had suffered losses of 20 $ last year due to high service charges, and that the distributor should be "absolutely responsibl for the quality of radio merchandise he sold to the retailer. Ernest F. Henderson and H. C. Smith, representing the World Radio Corporation of Boston, stated that curtailment of con¬ signment sales would force out of business some 35 small dealers operating under a sales agency plan whereby their goods were con¬ signed and their advertising paid for in consideration of their receiving a discount smaller than the customary dealer allowance. They asked that the Code be amended to provide protection for dealers of this type. J. M. Skinner, President of the Philco Radio and Tele¬ vision Corp. , Philadelphia, urged that sales promotion plans be continued without let-down throughout the year, and that whole¬ salers be permitted "to spend their money as they see fit" on legitimate sales promotion. Thomas McGuire, representing the NRA Consumers' Advisory Board, stated that withdrawal of the discount schedule had over¬ come the greatest objection of his group to the proposed code. He insisted, however, that the Code was attempting to eliminate "cooperative organizations" in violation of a Presidential order prohibiting any such discrimination; and he objected to various proposed trade practice rules, including the prohibition of consignments. 6 2/27/34 Henry H. Collins, Jr., representing the NRA Labor Advisory Board, stated his Board would withhold approval of the Code until such time as the Research and Planning Division of the NRA had completed a study of wages and hours in the wholesale radio trade to determine whether the labor provisions of the approved General Wholesale Trade Code were satisfactory for application to this subdivision of the trade. The Assistant Deputy Administrator requested the Code Committee to help expedite this survey, and the hearing was indefinitely recessed. X X X X X X GERMAN RADIO INDUSTRY MAKES PROGRESS DESPITE UNREST Germany's radio industry made notable progress during 1933 regardless of the great political strife in that country, according to a report from the American consulage-general , Berlin. At the end of the year, over 96 per cent of the avail¬ able workmen's places in the industry were occupied, which represents an increase of 50 per cent over the preceding year. December, 1933, production was more than twice as large as during the corresponding month of 1932. The turnover in the radio market showed continued pro¬ gress as a result of the extensive promotion work of the Government, which above all brought about an increased demand for the standard low-priced model. During the last five months of 1933, the total turnover reached 1,100,000 receiving sets compared with 651,000 sets in the corresponding period of 1932. The improvement in the domestic market during 1933, the report states, more than offset the continued drop in exports, which decline 33.6 per cent in value. The last year showed a change in the destinations for German radio sets sold abroad. Exports to Switzerland and France declined by about 50 per cent compared with 1932, while exports to the Netherlands and Belgium improved. The number of subscribers to the federal radio broadcast¬ ing service has already passed the 5,000,000 mark. It is generally expected in Germany that this number will show a continued increase and reach 6,000,000 in the near future. The improvement in broad¬ casting brought about by the construction of the numerous new powerful stations, the report states, will no doubt favorably influence the radio market and both the German radio industry and the trade are looking for increased business in the current year. X X X X X X 7 1 2/27/34 BUSINESS LETTER NOTES O.B. Hanson, manager of tecnnical operations and engineer ing for the National Broadcasting Co., has just returned to Radio City after an inspection of NBC divisional headquarters in San Francisco, Denver and Chicago. During Hanson’s two months' absence, NBC technical operations were in charge of George McElrath operations engineer. Leland S. Bisbee, of Jackson, Mich., who is also counsel for Spark s-Wi thing ton, addressed a group meeting held under the auspices of the NRA in Washington this week. Mr. Bisbee spoke in behalf of the Independent Aluminum Manufacturers as did Oswald F. Schuette, who is retained by that groups as well as by the National Association of Broadcasters. "Western Union and Postal Telegraph have privately b egun to fight the threat of Canadian Marconi to swipe a large slice of their American cable business", says a confidential (not for publi¬ cation) note of James McMullin in the "National Whirligig" pub¬ lished by the McClure Newspaper Syndicate. "According to confi¬ dential sources they are willing to give up their contract with Canadian National and Canadian Pacific without a struggle provided the Canadians agree not to accept transatlantic business of American origin. "American bankers and brokers who want cheaper Canadian rates may raise their own ante to counteract this move. Which¬ ever way the thing works out, Canada is sitting pretty. Lazard Freres - international bankers - are keenly interested in the situation. " Powel Crosley, Jr., now principal owner of Cincinnati’s baseball team was an honorary pall-bearer at the funeral of the late John J. McGraw of the New York Giants. The auditors who certified the accounts of Radio Corpora¬ tion of America, state that although the audit of Radio-Keith- Orpheum Corp. and subsidiaries for 1933 has not been completed, they are advised by officers of the company that R-K-0 will show a loss of $3,3 41,714 for the year compared with loss of $10,695,503 in 1932, according to the Associated! Press. 8 !"TQU j;i:£ Vlc Dr •*: ■: > r : * ■ ■■ .,r . 1. ; i- 'Li. f A a; ■ . ; . J l 77 j .< V £ f • - v- • ; Sv ; 7..7:: vi. u 'T:' ,0’. ■,-iv ; < :.»'T D 7 i-VT ■ I Cv .T , -i -'7r j. ' , ■UD1D ;• A X 77 r ii W * ? rV . ’ i ;Ki ; 1 ■ ' ' : .. 7 ' ;7 - . . f ■ ? . . . Di'Ujrr'-' j:i.: :.’v: L- A/ji) ■: •• M.ro-: ;, J 7. > !• . . ■ > ■ : A • i v J C: • ' ri : 1 & A 7 PJ : ; iT.cr.iy P: v ; i: :rrr : 7 ,7- 'io /■ o/r j;.rr nr-iP 7.7'i ;-.e.;v>P' > - .* •P... i jDAja ao: * ' 7 ; C a . 7 777 ; v' ■ " : ■ .i P . mJ a l ' I >a; s I ?• : ■■■ l \ G.- , -■( i - '"''■••o v-q a;# ;! 77... -P- P •: • V £ ;; 7 7' ' . : ; j. '. } r'f ■ - .r-: • • '4f. r-x"- [ "'D l J. ■■■",■ ' ■' ' i!D ■ n&S * r ^ &£rA ■ ■- C ,v! rio ; : rrr-r H> r , - • : i'iV; . 7 • •' J ,v.’ •• ■ :i j h " ■ : .! ' 7- d.f :v7 ; f J ' i; W J »j.r: .. &jhx ■■ ;p. ' : in-' rU' "r:. j . • i 1c 1 .• ■ ■: ■ ■; ! : ■ i ' ; , • . ’ ;-'X. w ■ • >_ ; ; | ;••• - ■ ,S C DO: ) A • . yi’1'4 S'S.f ; -'i i . . V i 7 7 r ‘7 : .■■!{.'. ' ML'iL : 7:' ■ A. i i r ■. 7 O 1 : - ■ ?Y ‘ 5‘i: § rtfe X.; ') I ■■■:-• r -7 V f o.rt 'lo : ■' ’ 7 *.l ■" 7 - v. . ■ ■ ■ ' • ijf?a -7 T ■v.7' ", r, ; $ A Al 2/27/34 Dun & Bradstreet , Inc., says the radio industry started 1934 "in themost favorable statistical position it has been able to achieve since 1930." It is "now on a more stable basis than at any time in its history, and fully capable of keeping pace with any other industry in the recovery movement." Inventories have been cut to nearly one-quarter their total of a year ago, distress merchandise has nearly disappeared and price cuting is less evident. A financial report of the Ken-Rad. Tube and Lamp Corp. and Subsidiaries follows : For 1933: Net profit after interest, Federal taxes and other charges, $77,591, equal to 44 cents a share on 175,000 no-par shares of combined Class A and B stocks, against $78,132, or 44 cents a share on combined Class A and B stocks, in 1932. Sparks-Withington Co. - Six months ended Dec. 31: Net loss, after taxes and other charges, $164,456, against $200,996 loss in six months ended Dec. 31, 1932. A revised edition of the Rules and Regulations of the Federal Radio Commission dated 1934, has been issued by the Govern¬ ment Printing Office, Washington, where it may be secured for 30 cents a copy. The contents of the edition are Part I, - General Rules and Regulations; Part II - Practice and Procedure; Part III - Broadcast Service; Part IV - Services other than Broadcast; Part V - Operator Licenses, and Part VI - The Radio Act of 1927, as amended, Annotated. xxxxxxxx RCA CUT LOSS BY $551,492 The annual report of the Radio Corporation of America for 1933 shows a net loss of $582,094 after all deductions , a decrease of $551,492, from the net loss of $1,133,586 in 1932. Surplus at the end of 1933 was $9,269,091, against $9,851,184 the year before and $11,337,789 two years ago. Gross income for 1933 was $62,333,4 96, comparing with $67,361,143 in 1932, a decrease of 7.5 per cent. The cost of doing business was reduced 8.1 per cent, however, and net earnings were $3,655,285, against $5,075,901. The report refers to scientific progress made during the year, particularly with reference to the "iconoscope", through whic. outdoor and indoor scenes have been satisfactorily received and transmitted by television on an experimental and laboratory basis. The policy of refraining from definite prediction as to the time when television may be offered to the public on a commercial basis again was affirmed. xxxxxxxxxx 9 . . ; - i j>': •••••• : . . 1 A*--- - r :• v . ! '-A' .. < - . \ •« - . ; . - /V . . . . V ■ t- r-;: r. : r>0 *'•' •■AW*-*** ' P j 1 r :- t • . .1. S • . . • .. > ' ■- i ! * :^ r, : V ' ' . ,. " ■ vV •. V V t V , . o. voi v J.: O - ';' v, :;.0O . >; . t 1 1' ■ •• ... ■ f "t i - - - • .. f J A- *■ . v r ( ,;v !• ■ • ' i ' . ; : . kl > • ■ : n ? • ' '■ - ' ; .'J- ft' V . i A~-: >: a •> . ... AvO .1 ' •’ ' : ! • • . - ■■ v/' p . ■" *• s ■. • . . , - ' .. ■ • ' : ■ " r [ . r. ; ♦ . o.. ' •• " . .. - - . ; ' ' . .O'; ,lt '4 .., ( ’ V ' -j - ?■ ' ' ■ . a-" ^ V 1 i r- '• "■■0 .' I ,j . ■ V.: s ■ ■ V V •v ' • .v • « 6-i ; , ■ r: - . -. v o. v ' . i; ■ ■ ■' v I ’ ' o ' - "V .-p & ^ J S -,,-t 1- ■■■' ' ; vdk-q 'V' "" . -r A X. J.y ■■■ .{ >. X. jaw . i. .s Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CO N F I D E NT I A L — Not for Publication INDEX TO ISSUE OF MARCH 2, 1934. Broadcasters To War On Dill Communications Bill. 2 House Takes Plenty Of Time With Mexican Amendment. . . Broadcasters Take Exception To Food And Drug Bill Clause . Radio-Operated Tel etypewr iters To Be Installed By U. S. . . New Radio Commissioner Unanimously Confirmed.... . Complains That British Side Is Hard To Uphold . . . News Censor Roosevelt Idea, Senator Asserts..... . . . Examiner's Action May Expedite Brooklyn Eagle Station... . Army Air Corps Buys 100 Sets... . . . May Confer To Straighten Out European Radio Muddle. . V/LBW Fights Entry Of New Erie Station . . . . Radio News Plan Goes Into Effect . . . 10 Grigsby- Grunow Creditors Recommend Sale Of Company Property .... 10 Decisions Of The Federal Radio Commission . 11 No. 703 COCOCO - ' : -Vv : v . 7 : C-.;Jr ' r b:i j * VVVn.vv. n. V \ I". vop Pi : o7 7 ' -V. i 7. . ■ I vc r? e 7 r= c- . 1 1 In ..v.: f 'I ! : V ' 1 ■ , : In ^ Q.6 t €}: ■ "... V” . p v tv 7 .-*■ :> • 7 v v- "■ Vo cnv / vv !./• r - v • - • < -• \ • ‘.I'..' •;C i> ; VI 1 r:V~;-i ,Kc , . .--i..' ■■ .*> t. ; VI •. ... V V ,t .: i 1 1 • ! f r o -7 7 7 V' 7 '■ ■ ■ 7 ‘ . '■ ; 77. 7 : : 7 ; o'..' v- .~'.0 07- 7.j 707 7 • ‘ ... . ; f ... - .. . .. .. .:. : 7 . . v ' ■; •• : -0. P VV ' ■ ' r - ...i'-.l/' V * ■757 > •ivvj ; r • 7 0" 007? . v 7 : 7" V. .7 V 7.".v . 7 7.: ' -■ ; ,V 7 7 7 7. 7 7 ' . :v.7' ' 7 0VV • : ' 7 7 7 77 777 , : f , V 7 ■ ■ .. ■ : ■ .; 7 0 >7.0 ■;/ v • ; ' ' 7 . V C 7 Co 7 ~ .. . . i .. o'- V 7 : 7 ' ■ ' ;'0 7. ?••?:;(.? ' o I vl -..of." .v oi.7 £!■/, coco ; v 7 v . -i *\ . . *•,*■ , v v ' ** • '• » » . . • ; . ; ; 7* • • 1 . * ... * . 3/2/34 A broadcaster commenting upon the Dill clear channel provision said: "Congress would be advising the Radio Commission how to run its business. What business is it of Congress to tell the radio engineers what to do. That is a purely technical function and Congress would be making a mistake to interfere in technical matters such as these. I believe if they permitted stations within 2200 miles of each other on a clear channel they would soon make it 2000 miles followed by distances less and less which would sooner or later result in a complete breakdown of the clear channel system. " "The sum and substance of it is that Senator Dill has included in his bill practically the same matter contained in the bill in the last Congress which, though it passed the Senate and the House, was vetoed by President Hoover", another man in the broadcasting industry commented. "It is of a highly contro¬ versial nature. "The Rayburn bill, to the contrary, re-enacts the Radio Act and I believe will have the broadcasting industry solidly back of it. If that is true, I think the industry will find itself in a strong position because it will be supporting the bill which plainly carries out the wishes of President Roosevelt as expressed in his message to Congress." The Dill bill carries a provision that no license shall be granted to "Any operating, controlling, holding or other corporation of which any officer or more than one-fifth of the directors are aliens, or of which more than one-fifth of the capital stock may be owned or voted by aliens, their representa¬ tives, or by a foreign government or representative thereof, or by any corporation organized under the laws of a foreign country. " The present law reads "of which any officer or director is an alien", etc. Hearings on the Dill bill have been set for Friday, March 9th. Judge E. 0. Sykes, Chairman, and others from the Radio Commission have been invited to be present; also Patrick J. Farrell, Chairman of the Interstate Commerce Commission and Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters. Representative Rayburn said that the House hearings on theCommunications Bill would be held as soon as the Stock Exchange considerations had been completed. He did not know how long this would be. XXXXXXXX 3 3/2/34 HOUSE TAKES PLENTY OF TIME WITH MEXICAN AMENDMENT Somewhat like closing the door after the horse has beer stolen, the House Merchant Marine andRadio Committee has continue for several days longer the period of receiving objections as to why remote control studios in the United States feeding the Mexican border broadcasting stations should not be prohibited. The House Committee is now waiting to hear further from the citi¬ zens of Del Rio, Texas, where the hospital and studios of Dr. J. R. Brinkley, the principal offender, are located. In the meantime, however, the Mexican Government has closed down Brinkley's station at Villa Acuna, so for the time being it doesn't make much difference whether or not there is a law to close his remote control studio in Texas. The Senate previously passed the amendment but it may be a week or more before the House gets that far along. One of the charges made by the Mexican Government, it is understood, is violating their la w of broadcasting in English without first broadcasting in Spanish. XXXXXXXX BROADCASTERS TAKE EXCEPTION TO FOOD AND DRUG BILL CLAUSE While regarding the revised Food and Drug bill as an improvement, a brief was filed in Congress by Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters containing certain objections. One of these referred to a section in the bill which reads: "No retail dealer shall be prosecuted under this section for dissemination other than by radio broadcast, of any advertised offering for sale at his place of business any product which is not distributed or sold in interstate commerce." "Apparently the purpose of this section is to discrimi¬ nate among advertising mediums and to say to the retail dealer that he may safely use the United States mails or any other medium with the single exception of radio broadcasting. "Why should the retail dealer be warned by an Act of Congress against the use of radio broadcasting whereas the United States mails are left open to him. This uncalled for attempt to discriminate against radio broadcasting marks a new departure in the field of Federal legislation. "Congress might with equal logic declare an advertiser liable for false advertising in a periodical but guiltless if he inserts the same copy in a newspaper. The principle underlying such discrimination, which is in effect a deliberate effort to 4 - • £: i - 3/2/34 dictate to advertisers what medium they foreign to established legislation that this section was not introduced in time at the hearings on the earlier draft of should use is so wholly it is not surprising that to be subject to scrutiny this bill . " XXXXXXXX RADIO-OPERATED TELETYPEWRITERS TO BE INSTALLED BY U.S. Tests of radio-operated teletypewriters for transmission of aeronautical weather data along the Federal airways will begin next month between Washington and Baltimore, Rex Martin, Assistant Director of Aeronautics in charge of air navigation, Department of Commerce, announces. A committee appointed by Mr. Martin in January to study the practicability of utilizing radio for the operation of the nation-wide network of Department of Commerce aeronautical tele¬ typewriter circuits, decided to install two parallel radio cir¬ cuits between Washington and Baltimore - one circuit to operate on 2,960 kilocycles- and the other on 60 megacycles. Two transmitters one for each circuit, will be located at the Washington airway radio station, and the two receivers will be installed at Logan Field, Baltimore. These installations will be used to aid in developing equipment and to obtain test data prior to the establishment of longer experimental circuits between V/ashington and Newark, N. J. If the committee finds that the teletypewriter machines on the Federal Airways System can be operated by radio, this will result in a substantial saving to the Government through the elimination of the leased land wires, of which there are now some 12,000 miles. These teletypewriter circuits are used for the dis¬ semination of hourly weather reports along the airways and for the transmission of weather maps every four hours. The committee undertaking the studies is composed of: Mr. Martin, Chairman; Paul Goldsboro, President, Aeronautical Radio, Inc., Washington; W. H. G. Finch, Secretary and Chief Engineer, American Radio News, New York; Eugene Sibley, Chief, Communications Section, and W. E. Jackson, Chief, Development Section, Aeronautics Branch, Department of Commerce. XXXXXXXX 3/2/34 NEW RADIO COMMISSIONER UNANIMOUSLY CONFIRMED The nomination of Anning S. Prall, of Staten Island, N.Y. . to be a member of the Federal Radio Commission was favorably reported by the Senate Interstate Commerce Committee and later unanimously confirmed by the Senate. Representative Prall said he had not decided how soon he would assume his new duties or whether or not he would serve out his present term in Congress. The Constitution prevents any member of Congress from serving during the time for which he was elected in any governmental body which he helped to create. Since the Communications bill was Introduced while he w as a member of Congress, this would seem to preclude Mr, Prall from serving on the new Commission until his present Congressional term expires which is next January. That is, unless there is a technicality which would permit Representative Prall to serve inasmuch as he had not been a member of Congress when the Communications bill will have been voted upon, which may be a month or so hence. If Mr. Prall waits any length of time to assume his position as a member of the Radio Commission, there may be no Commission for him to serve on unless it is the Communicat ions Commission. If a place is made for Mr. Prall on the Communications Commission, it would seem that it might have to be held vacant for almost a year before he would be able to take it. The old rumor has bobbed up that Senator Dill, who is facing re-election, himself might be a member of the new Commission, but the Senator has denied this. Likewise, Gen. Charles McK. Saltzman, former Chairman of the Radio Commission, and recently resigned from the Shipping Board, has again been mentioned. A new name is that of former Gov. Phillip LaFollette, of Wisconsin, a Republican, who supported Roosevelt. XXXXXXXX COMPLAINS THAT BRITISH SIDE IS HARD TO UPHOLD Praising the handbook the National Associa¬ tion of Broadcasters issued for the benefit of High School debaters in presenting the American side of the case, Bruno E, Jacobs, Secretary of the National Forensic League (High School Debating Society), of Ripon, Wis. , writes to Phil Loucks, Managing Director : "The handbook contains the very finest material for the presentation of the negative side of the debate of the merits of the British broadcasting system versus those of the American. Perhaps you will be interested in the fact that the only complaint I have from my schools is that the affirmative side is too hard to advance. " X X X X X X X 6 a'^ 3 / •, . i ■ - r , . v >;• U: , ■ o •' - - iv : :■ i V j.v . " . : 'I'.'.1"1 i l’ . •v : 3/2/34 NEWS CENSOR ROOSEVELT IDEA, SENATOR ASSERTS That the proposed Communications Commission might prove a censorship lever was predicted by Senator Schall, (R) of Minnesota, who said; "The newspapers of the United States are about to have themselves censored. After battling for months to force the Roosevelt administration to guarantee ‘freedom of the press' in the Publishers* Code, they now find themselves confronted with the very same censorship by the demand of the President for a Federal Communications Commission. Under such a commission every press dispatch and every cable message can be censored by the administration. What have the newspapers gained by their code fight if they permit their news dispatches to be censored? "With such a system as suggested by the President, not one word of the skullduggery committed in V/ashington could reach the people of the United States. Not a publisher up to date has sensed the danger in the demand sent to Congress. What the news¬ papers and the people of the United States need most at the present moment is a legislative bureau in Washington to follow all legislation introduced and see to it that the dictatorship now in the making is thwarted. " Schall* s action received praise as a "real public ser¬ vice" from the publisher of the Chicago Daily News, Col. Frank Knox. Colonel Knox said in an Associated Press dispatch "that the desire exists to exercise such a censorship can no longer be doubted. " The Chicago publisher declared it was only through insistence of newspapers that a "complete freedom of the press" was maintained when the newspaper code was formulated. The danger of censorship, Knox said, could be averted only through militant newspaper opposition to "these latest plans of the power-hungry bureaucrats in Washington." X X X X X X EXAMINER'S ACTION MAY EXPEDITE BROOKLYN EAGLE STATION If the Examiner* s recommendation is sustained by the Federal Radio Commission that four Brooklyn stations, WARD, U. S. Broadcasting Corp. , WBBC, Brooklyn Broadcasting Co., WLTH, Voice of Brooklyn, and WVFW , Paramount Broadcasting Co., be denied renewal of licenses, the way will be cleared for the Brooklyn Eagle to apply for these frequencies. If successful, the Eagle will combine them into one full-time station. 7 3/2/34 When the Brooklyn Eagle decided to erect its own sta¬ tion, it is understood to have made an offer to the owners of the four stations but they could not get together. Whereupon the Eagle applied for the frequencies but this application has been held up pending the outcome of the Examiner's hearing upon the renewal of application by the stations. Under the rules of theCommission , the stations now have 15 days in which to file exception to Examiner Ralph L. Walker's report which recommends their being closed. The Brooklyn stations will more than likely ask for a hearing of oral arguments before the full Commission. It is doubtful if the case could be disposed of for at least a month. The four Brooklyn stations divide time on a frequency of 1400 kilocycles and operate upon 500 watts each. The follow¬ ing conclusions were reached by Examiner Walker: "Giving due consideration to the fact that each of the applicants has suffered an economic disadvantage because of the four way division of time, it appears that in the operation of each station the applicant has placed the interests of the licensee as the paramount consideration, and that the interests of the public, fixed by law as paramount, have been, at the most, secondar "In the case of Station WBBC, an excessive amount of time has been devoted to commercial foreign language programs, and time has been sold to advertisers for whatever could be obtained. There is no showing of financial ability of the Brooklyn Broadcasting Corporation to continue to operate the station in the public inter¬ est. A large number of dishonored checks issued by the licensee indicates lax business management if not financial irresponsibility "In the operation of Station WLTH , an excessive amount of time has been devoted to commercial foreign language programs and advertisements. In addition, themanagement of the station has not retained control over all its hours of operation, but has sold time to individuals for resale by them. "Station WVFW does not serve as large an area as would be reasonably expected from a station using the assignment licensed to it. Control of the station's operations has been transferred by the licensee without the consent of the Commission. There is no showing of the financial ability of thelicensee to operate the station in the public interest, and the large number of dishonored checks issued by it indicates poor managemen t , if not insolvency. Non-payment of bills has on at least one occasion been the direct cause of suspension of the station1 s programs at a time when it was authorized and expected to operate. "With reference to Station WARD, an excessive amount of time is devoted to commercial foreign language programs and the station has parted with control over certain programs by selling time to individuals who in turn resell to advertisers. This sta¬ tion maintains no schedule of rates, affording its facilities to advertisers for such sums as they are willing to pay. It is not affirmatively shown that the applicant is in financial condition to operate the station in the public interest." X X X X X X - 8 - 3/2/34 ARMY AIR CORPS BUYS 100 SETS The Air Corps has purchased a hundred high frequency radio receiving sets adapted for use on the communications system of theDepartment of Commerce weather service between Newark and Cleveland and on other airway routes. Commercial radio engineers stated that it would take about ten days to complete all installa¬ tion. The regular Army radio equipment is built for communica' tions over distances not greater than thirty miles with ground troops for battle manoeuvres and to control pursuit flight forma¬ tions at the distance. The new sets will enable army pilots to listen in with greater facility on the Department of Commerce weather broadcast with its frequencies of 236 kilocycles on the airway and 278 at radio marker beacons, XXXXXXXX MAY CONFER TO STRAIGHTEN OUT EUROPEAN RADIO MUDDLE It is reported that the European nations may gather in London next June to straighten out the clashing of frequencies which those countries are at present experiencing. As yet no invitation has been extended to the United States to be present and nothing has as yet been heard about it by the State Department. XXXXXXXX WLBW FIGHTS ENTRY OF NEW ERIE STATION Station WLBW, of Erie, Pa. , operated by the Broadcasters of Pennsylvania, Inc., have filed an appeal in the Court of Appeals of the District of Columbia against the decision of the Federal Radio Commission for granting the application of Leo J. Omelian, to erect a new 100 watt station in Erie operating on a frequency of 1420 kilocycles frequency. In granting the application of Omelian, the Commission pointed out that Erie is the fourth largest city in Pennsylvania and that both the State and theZone were under quota. Commis¬ sioners Lafount and Hanley dissented in the opinion. XXXXXXXX 9 C X ,6 ' ‘ 'X% U •• rfVJ • ” I'/.T ■: :Vv ;• 'if- i ■ i : r .?•; :wm & ■ : d -i.'J-v .if t ■ ft* •; ■- X •-* »X-.- X.:; 1 > : V- i £ I : •• 4 . i <■ r h - J fl ' : a 3/2/34 RADIO NEWS PLAN GOES INTO EFFECT Two major radio networks and independent stations scat¬ tered from coast to coast began Thursday (March 1) to confine all spot news broadcasts to two daily reports edited and sup¬ plied by the Press Radio Bureau of the Publishers' National Radio Committee, headquarters of which is at 551 Fifth Avenue, New York. Radio commentators on subscribing stations, who hereto¬ fore have utilized spot news, have agreed to confine their remarks to local news and generalized comment or to references during evening broadcasts to ne¥/s that has appeared in the morning news¬ papers. The plan calls for a five-minute report to be put on the air not earlier than 9:30 A.M. , local time, and a similar report not earlier than 9 P.M. , local time. Each report will consist of approximately 600 words and v/ill be subdivided into twenty or more separate bulletins. The plan was worked out by representatives of newspapers, broadcasting stations and the United Press, Associa ted press and International News Service. Every broadcasting station of the country is eligible to participate in the service if it desires to cooperate with the plan of the bureau and pays a proportionate share of the expenses. The plan does not limit the use of local news by local radio stations. X X X X X X X X GRIGS BY- GRUNOW CREDITORS RECOMMEND SALE OF COMPANY PROPERTY The Creditors’ Committee of Grigsby-Grunow Company, of Chicago, has sent the following letter to the creditors of the company, by N. B. Parsons of the Belden Manufacturing Co., Chairman : "On Nov. 24th, Thomas L. Marshall and LeRoi Williams were appointed Receivers in Equity for the Grigsby-Grunow Co., and since then they have endeavored to operate the business as a going concern in the hope that a reorganization or some form of a satisfactory disposition of the assets could be found. "Your Committee shared the opinion of the Equity Receivers and theBondholders ’ Committee that a plan of reorganiza¬ tion might be effected in the equity proceedings, but as no reorganization plan was submitted after numerous conferences with various reorganization groups, there was no course open to the Equity Receivers but to ask for authority to sell the assets of the company, "On February 16th the Equity Receivers filed a petition in the United States District Court in which they recommended that 10 3/2/34 the property, assets and effects of the company be offered for sale and that a hearing be set for the consideration of said petition. "Following the filing of this petition, an involuntary petition in bankruptcy was filed and on February 20th before Judge Barnes a petition was presented for the appointment of a receiver in bankruptcy. Judge Barnes appointed Frank McKey as Receiver in Bankruptcy. Mr. McKey stated that for the present he would continue the operation of the business and carry out as far as possible the program recommended by Mr. Marshall, which is to operate on a restricted basis until such time as a sale may be made of theassets of the company. "Notwithstanding further negotiations with the officers of the company or other persons interested in reorganization plans, your Committee has recommended that the Receiver in Bankruptcy immediately file a petition for an order authorizing the sale of all of the property and assets of the Company as a going con¬ cern on due notice to creditors and that an early date be set for the consideration of said sale and such publicity given as will create competitive bidding. "Your Committee is exceedingly anxious to avoid a forced liquidation of this Company. It believes that the assets of the Company have a real and substantial value and unless a satis¬ factory bid is received for the same, your Committee should recommend that the Receiver give serious consideration to the pos¬ sibility of proceeding with an orderly liquidation which might very naturally contemplate the operation of the plant for a limited period of time in order to realize the maximum amount for the assets, " XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (March 2, 1934) Big Horn Broadcasting Co. , Sheridan, Wyo. , C.P. for a new station to operate on 1370 kc., 100 watts, unlimited time; WBAX, John H. Stenger, Jr. , V/ilkes-Barre, Pa, , license covering changes in equipment, 1210 kc. , 100 watts, specified hours; WAMC , Raymond C. Hammett, Anniston, Ala., modification of C.P. extend¬ ing commencement date to March 1, 1934 and completion date to May 1, 1934; WHEF, Atala Milling & Produce Co., Kosciusko, Miss., modification of C.P. extending commencement date to Feb. 24,1934, and completion date to June 24, 1934; WCAZ, Superior Broadcasting Service, Inc., Carthage, Ill., modification of license to increase power from 50 watts to 100 watts; WDAE, Tampa Publishing Co. , Tampa, Fla., consent to voluntary assignment of license to Tampa Times Co.; WFDF t Flint Broadcasting Co,, Flint, Mich., authority to operate without an approved frequency monitor until March 17 while making repairs; KUMA, Albert H. Schermann, Yuma, Ariz. , 11 3/2/34 special temporary authority to operate from 4:30 to 5 P.M. MST on March 25th; KFJB , Marshall Electric Co. , Inc. , Marshalltown , la. , special temporary authority to operate specified hours March 8, 9; 10, 15, 16 and 17; KRE„ First Congregational Church of Berkeley, Cal., special temporary authority to operate from 8:50 to 10 A.M. PST on April 1 in order to broadcast special Easter service. Also, Buncombe County, Asheville, N. C., C.P. for police service, 2474 kc., 200 watts; City of Austin, Texas, Police Dept., C.P. for police service, 2382 kc., 25 watts; KGZD , City of San Diego, Cal. , Police Dept., C.P. for auxiliary transmitter, 2430 kc. , 50 watts; New York Telephone Co. , New York City, C.P. for general experimental service, frequencies 31600, 35600, 38600, 41000 kc., 50 watts; City of Chattanooga, Tenn. , Police Dept., general experimental C.P., frequencies 30100, 33100, 37100, 40100 kc., 15 watts; Press Wireless, Inc.: K JAP , KM.B KJH , KOP , San Francisco, Cal., C.P. for additional transmitters, KOP , modifica¬ tion of license 10750 kc. , 1.5 watts, and add Composite VT trans¬ mitter, Serial No. SF #3; KIIR, A. M. Chamberlin, Deering, Alaska, C.P. fixed public pt. to pt. telegraph service, 3265 kc. , 2 watts; WSQD, Aeronautical Radio, Inc., Berea, Ohio, license, frequencies 2612, 2636, 3467.5, 4740, *8540, *6550, *6560, *8015 kc., 25o watts (*day only); WSDG, Same, Chicago, license, 2612, 2636, 3487.5, 4740, ^6540? *6550, *6560, *8015 kc. , 250 watts; WMET , Allegheny Co. Municipal Airport, Pittsburgh, Pa., license, fre¬ quency 278 kc., 15 watts. Action On Examiner's Reports New, Ark-La-Tex Radio Corp. , Shreveport, La. , denied as in case of default application for C.P. for new station to operate on 1210 kc. , 100 watts, unlimited time, sustaining Examin¬ er Geo. H. Hill; KWEA, Hello World Broadcasting Corp. , Shreveport, La. , granted consent to voluntary assignment of license to International Broadcasting Corp, , sustaining Examiner Hill; KWEA , International Broadcasting Corp., Shreveport, La. , granted renewal of license to operate on 1210 kc. , 100 watts, unlimited time, sustaining Examiner Hill (The order in the above cases is effect¬ ive March 9, 1934) . Miscellaneous KGFX, Red River Broadcasting Co. , Inc. , Moorhead, Minn. , suspended authority granted Jan. 30, 1934, for removal of station from Moorhead, Minn,, to Duluth, Minn., and applications was designated for hearing because of protests of City of Moorhead and Station WEBC, Superior. Wis. ; WSPA, Virgil V. Evans, Spartanburg, S. C. , C.P. 920 kc. , 2-J KW, daytime hours, heretofore designated for hearing, was denied because applicant failed to enter appear¬ ance within time allowed; KFIZ , The Reporter Printing Co., Fon du Lac, Wis., modification license 1310 kc., 100 w. , special hours, heretofore designated for hearing, was denied because applicants failed to enter appearance within time allowed; WKZO , WKZO, Inc. , Kalamazoo, Mich., special authority to operate from sunset at Kalamazoo to midnight, application heretofore set for hearing, was dismissed at aoplicant's request. X X X X X X X - 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication i Is INDEX TO ISSUE OF MARCH 6, 1954. Deny Communications Commission Censorship Charges . 2 White House Correspondents Honor Radio Leaders . 3 Question Prall's Communications Commission Eligibility . 4 -Patterson Quoted Re Network Liquor Ad Possibility . 4 News Services Formed Despite Radio Press Agreement . 5 Storer To Become WMCA President? . 6 Columbia Stronger Than Ever Declares Paley . 7 Broadcast Advertising Keeps Its Upward Trend... . 8 Wisconsin Judge Boils Over In ASCAP Prosecution. . 9 Business Letter Notes... . 10 G-lobe Wireless Only Opens Ship To Shore Traffic. . 10 Decisions Of The Federal Radio Commission . . . 11 Decisions Reached In Louisiana Cases . 12 No. 704 March 6, 1934. DENY COMMUNICATIONS COMMISSION CENSORSHIP CHARGES Administration leaders were quick to deny the charge- made by Senator Schall of Minnesota that the new Communications Commission in control of radio, telephones, telegraph and cables might be used as a lever to censor press dispatches. They denied that there was any intention of tampering with news messages. It vras said if this impression was not entirely dispelled at the forthcoming hearing, a special provision might be written into the bill prohibiting censorship of telegraph, telephones or cables. Both theDill (Senate) and Rayburn (House) Communications Commission bills include the following provision now in force in the Radio Act: "Nothing in this Act shall be understood or construed to give the Commission the power of censorship over radio communica¬ tions or signals transmitted by any radio station, and no regula¬ tion or condition shall be promulgated or fixed by the Commission which shall interfere with the right of free speech by means of radio communications." Those who fear censorship point to the fact that despite this anti-censorship clause, the Federal Radio Commission has found a way of closing several stations in the United States on the ground that they were not operating in the public interest. "When the whole picture is spread out", theWashington Post says editorially, "Senator Schall 1 s statement that the Com¬ munications bill would lead to censorship of the press is seen to be neither extreme or premature, " "On what is done to protect the public against censor¬ ship in the proposed new government control over radio, telephone and telegraph, depends the support that measure will receive from the press", Editor & Publisher observes. "I have read the bills carefully and I can find no basis for the news censorship charges", a communications authority com¬ mented. "Furthermore I am sure nobody intended there should be such censorship either by the wording of the bills or by any inter- preta.tion of their wording. " "Senator Dill is himself too much of a liberal to be a party to the restriction of free speech", an Administration spokes¬ man at the Capitol said. 2 5/6/34 It is expected that Senator Dill himself may clear up this point when he addresses the radio audience during the National Radio Forum Monday night (March 12) over the WEAF net¬ work at 10:30 p.m. E.S.T. He will discuss the different aspects of the new Communications Commission bills. By that time it is expected that the Senate hearings on the Dill bill (scheduled to begin Friday, March 9) will have been concluded. Senator Dill knowing by then the objections to the measure, will very likely undertake to answer them during his radio talk. Hearings on the Rayburn bill will begin in the House Tuesday, March 12. XXXXXXXXX WHITE HOUSE CORRESPONDENTS HONOR RADIO LEADERS David Sarnoff, President of the Radio Corporation of America, and M. H. Aylesworth, President of the National Broad¬ casting Company, were honor guests at the annual dinner of the White House Correspondents’ Association last Saturday night. One of the most brilliant functions of the season, it was attended by President Roosevelt, Vice-President G-arner, most of the Cabinet members, Speaker Rainey, G-en. Hugh S. Johnson, and other high G-overnment officials. Entertainment was in charge of John F. Royal, Vice- President of the NBC and among the performers were A1 Jolson and John Charles Thomas. Frank Black, NBC musical director, made such a hit with the boys that he was inducted as an honorary member. Mr. Black wrote a stirring new march, "We're On Our Way" dedicated to President Roosevelt and the New Deal, which was played for the first time at the dinner. "On Our Way" is the title of Mr, Roosevelt’s new book. Among the guests identified with the radio industry who attended were: Henry A. Bellows, Vice-President, Columbia; Col. Thad H. Brown, Federal Radio Commission; Gene Buck, President, Ameri¬ can Society of Composers; Harry C. Butcher, of Columbia; Vincent Callahan, of the NBC; Martin Codel, Broadcasting Magazine; John W. Guider, Code Counsel, NAB; F. P. G-uthrie, District Manager, Radio Corporation of America; Edward Klauber, Vice-President, Columbia; Oliver Owen Kuhn, National Radio Forum; Lynne M. Lamm, radio writer; Frank E. Mason, New York, National Broadcasting Co. Herbert Pettey, Secretary, Federal Radio Commission; Sol Rosen¬ blatt, Deputy Administrator, Broadcasting Code; F. M. Russell, National Broadcasting Co.; Oswald F. Schuette, National Associa¬ tion of Broadcasters; Sol Taischoff, Broadcasting Magazine; Paul White, New York, Columbia Broadcasting System; Frederic William Wile, radio commentator; Frank Wisner, Federal Radio Commission, and Former Senator James E. Watson, XXXXXXXXX - 3 - 3/6/34 QUESTION PRALL'S COMMUNICATIONS COMMISSION ELIGIBILITY There is still a question as to the eligibility of Representative Prall of New York to serve on the new Communica¬ tions Commission should President Roosevelt decide to appoint him. Under the Constitution, Mr* Prall, having been a member of the House when the bill to create this Commission was intro¬ duced, would not be permitted to accept a position on the Commission until after his present term in Congress expires. Inasmuch as the new Commission expects to make an extensive study of the radio situation so as to present a comprehensive report to Congress, those who are conversant with the situation deem it hardly likely that President Roosevelt would hold a posi¬ tion open for Mr, Prall all that time - probably a matter of 8 or 9 months. Although confirmed by the Senate as a member of the Radio Commission, Mr. Prall said at this writing that he had not as yet decided when he would take over his new duties as Radio Commissioner. XXXXXXXX PATTERSON QUOTED RE NETWORK LIQUOR AD POSSIBILITY Likelihood that the networks may take liquor accounts when the administration’s radio control setup is completed, was expressed in San Francisco by Richard C. Patterson, Jr., NBC Executive Vice-President there on a swing around the Western division, according to Variety , which continues: "Patterson cited a recent talk which he and M. H. Aylesworth had with the President some weeks ago in which Roose¬ velt expressed the intention of supporting those mediums aiding the legitimate manufacturer and dealer, who should be favored instead of the bootlegger. With formation of the new Federal Communications control system, the Federal Radio Commission, which has been against liquor broadcasting, will pass out of the picture, the President indicated. "Networks have been giving much serious thought to liquor accounts, Patterson said, though fearing that their accept¬ ance might offend many dry ears. That same fear of offense has resulted in NBC's turning down more laxative accounts, Patterson said. " V/hen Mr. Patterson visited the Radio Commission in Washington recently, it was reported that the NBC had notified the Commission that it expected to carry liquor advertising but this was later denied at NBC headquarters in New York City. XXXXXXXX 4 3/6/34 NEWS SERVICES FORMED DESPITE RADIO PRESS AGREEMENT The formation of two co-operative associations to gather news for radio stations, one in the East, the Yankee network, and another in the West, a project started by KFI, Los Angeles, is the answer to the agreement of the newspapers, press associa¬ tions, and principal broadcast chains to limit national news broadcasts to two five-minute periods each day. The principal stations of the Yankee network are WNAC and WAAB in Boston, and the preliminary plans call for alternating the news broadcasts through these stations. The affiliated sta¬ tions are those in Providence, Bridgeport, New Haven, Worcester, Springfield, Hartford, Bangor, Me., Manchester, N. H. , and New Bedford. John Shepard, III, head of the network, has organized his own news gathering corps, but the personnel has not yet been revealed beyond the fact that Richard D. Grant of Boston is the editor-and-chief . Mr. Grant is a former member of the Boston Transcript staff, assigned to the State House. Mr. Grant was in charge of the Transcript radio station until it was abandoned. It is planned to sell advertising in connection with the broadcasts. At first it w ill be sandwiched in with the even¬ ing news announcements, but later, according to the Editor & Publisher, will probably be given on all broadcasts. An instance of the opportunity to turn the service into commercial channels was demonstrated the first day. An item was flashed to Editor Grant that the Ford Motor Car Co. was to reduce prices. It was finally decided to put it on the air, even though it was question¬ able if the advertising outweighted the news value. Twenty min¬ utes after the item was broadcast, the New England Ford manager bought the announcement to go on the new broadcasts for the next four months. Other opportunities of the nature are anticipated from time to time. Mr. Shepard feels that the public ''is entitled to the news'* and that the radio-newspaper agreement limits its dissemina¬ tion to a point where his ra.dio stations are not giving the service to which the listeners are entitled. In the broadcasts announcing the new service this has been made plain. It is reliably reported that Mr. Shepard intends to spend $2,000 a week on his news ser¬ vice and that he will look to advertisers to supply this revenue. One notable example of competition with radio stations used or owned by newspapers has been in Worcester. In that city the Worcester Telegram and Evening Gazette owns radio station WTAr' From this station it has given news broadcasts three times a day. When the Associated Press limited broadcasts of its news to brief bulletins WORC, which is affiliated with the Yankee network, began a news broadcast unlimited in wordage. It was given by George Wells of the Worcester Herald , a weekly. 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J.r ■; ft c : X ,.3::r : nT » • ... XX . ; j v: ■ ; : ; ■ : \ ■ c " oX; ■} •; icX C.r l'A; ■ ' . 7. i : £ . ... :: S •: V rj : : - cc b ity$o d ■■■ im r ■7.;" h X : ' ■ ' ■ *■>? . h •; ;; ; • lh;-y X.. ‘ :.c3: -.-e-ex ic-' : i '-xh . 1 ' »' _ x; . ■ ii-y.t i ■ ' - > .3 ' ’ : j X .Vi.- x v,x H v : " .0 cree-c. .?. .C; o . xi;{ ' ,.v , ■ ' V i :• : : :A. ;? V - ; ;i • •; . Civ *X'i c/i. ; v r -'V r ' . : *‘| ; •'* 1 !' • ■■cl 7 •' : r;j; C ■ . V 0 e ■ j . ■_ \- . v i . > ;; ; C ' ■' :'X : ' ;j 'i ■ ' . o ' L '• ' : . 7 ' ; * Vi ■ .7 ‘ ! >"■' X j i . - rj'-'W 3/6/34 The following stations have joined the KFI news service network, Carl Haverlin, commercial manager said, KNX, KGFJ and KECA, Los Angeles, KJBS, San Francisco, KDYL, Salt Lake City, KFEL and KFKX, Denver, KSTP, St. Paul. It is reported this group have secured a foreign news service and that it has the use of the Dow-Jones V/ all Street Ticker Service. XXXXXXXX STOKER TO BECOME WMCA PRESIDENT? George Storer, whose aim it is reported is to have a third national chain in operation by October 1, took a step nearer to that objective when he became a substantial stockholder and operating president of the Federal Broadcasting Corp. , which has WMCA under a three to five year lease, Variety reports. "Confirmation of Storer1 s status for the minutes will take place Wednesday (tomorrow) at a meeting of the FBC director¬ ate with former Governor Alfred E. Smith, Chairman, presiding", the theatrical paper continues. "With Storer' s entry Jack Adams, who brought the Whitney-Ryan group into Federal, resigns his post as president of the holding corporation and takes the title of Vice-President, Adams' new contract is based on three month periods. He leaves this week on a vacation. "Storer’ s conduct of the station as well as the outlet's policies will, however, be subject to agreement with Donald Flamm, owner of WMCA, and licensee of its wavelength, and Allen Ryan, Jr, , as head of the group of Wall Street scions that took over the station’s operation last Fall. No changes in personnel are con¬ templated for the immediate future. "In addition to his buy-in into the Federal Broadcast¬ ing Corp. , Storer1 s broadcasting interests consists of his owner¬ ship- of CKLW, Detroit-Windsor; WSPD, Toledo, and WWVA, Wheeling, W. Va." XXXXXXXX 6 }i .. < U G, 1 ; ;> ■< i 7..- <:U & ■ >gg\v *;i ,“>:cgg ■ K ■■ '■ ■ i i.G i. 'J \ "-G 'G \'i l, , ’i G i - : v.G'i. • :/G 7;;:G", .,"i txii ;1 : =*;•’-/ -.‘.'■l; v{, G ' , •' i’i iG7>0Vi: J r-: ■■■ si~; g /, ..7 -• ■■■.■• ■ v j; 7 o r .. • • ; i "t;- \ 7 ' ' . . • ' , Hi : 1G ±J ,;V G'Gi": : ' ■ " ■ {■:/■:/' i.’tr ai..}') g-g •• - ' . • . ! .. ' ' ' , G‘ G-; . . A GoGTgVGG t - < 7 --s,: V 3/6/34 COLUMBIA STRONGER THAN EVER DECLARES PALEY The following are excerpts from the annual report of William S. Paley, President of the Columbia Broadcasting System, Inc. : "The Columbia Broadcasting System has come through a dif ficult year stronger than ever. 1933 saw broadcasting tested, and tested severely Just as broadcasting was the last to be overtaken by the depression, it has been the first to recover. Our business has reached an all-time peak and we see no indication of more than a seasonal decline .*-*** ■«■*■«'*•■* We have done things that have been spectacular and almost countless numbers that have made for quiet and steady progress. The importance to the whole country of such progress emerges when I inform you that our 1933 surveys, indicating an enormous growth in the radio audience durin the depression year, show that by the Summer of this year we shall have 18,000,000 homes equipped with radios in the United States, which at the current rate of purchase, mean, conservatively estimated, at least 54,000,000 potential daily radio listeners - compared to 14,627,000 radio owning families, or 43,881,000 potential listeners in 1930,^•*■M•,5!’■,{•,5H'‘'■5^'■^,' "It was during this year that Columbia had the unusual satisfaction of developing for the first time a radio artist to the point where he became a star of the Metropolitan Opera, when Nino Martini made his bows before the Metropolitan audience. "Our annual Price Waterhouse survey shows that we have held and increased the large margin of preference for Columbia programs in the homes of America. V/e had more listeners than any other single chain in the world in 1932. We have won more than our share of the greater audience of 1933. **•*■**■»■»■«• "In obedience to a growing desire on the part of adver¬ tisers to have those closely associated with them see as well as hear their programs, and further in obedience to an insistent clamor by the public to see their favorite radio stars, we matured plans in the year just past and early this year opened Columbia's Radio Playhouse in West 44th Street in the heart of the theatre district, **** * "Despite all temptations of added revenue, we have persistently refused to take programs which we do not believe would be welcomed by the public or by very large sections of it, and we have persistently refused to take projects or enterprises which we regarded as in any way dubious. I know that the public would be astonished were it ever made aware of the revenue sacrificed by those companies in the forefront of American broad¬ casting in the interest of good taste, good morals and honest business . "I draw particular attention to this phase of our work because from time to time, and mostly I believe from thoughtless sources, we hear suggestions of censorship or too rigorous 7 ■' r - : ■: v.w >3 . *. •.« ■S ":0.0 S\ f;-'"': 1 C\ j- . . O-O-J- ,'Oi'Of 0 O' O X - i .03 Oi O 'OO O o p . 00'.. ? ; • To oi." 0 J o s p; i i ,x.o -o-jo o •; ‘O ^ V’O- •> <3 , v • o 'X i c 4 joo'T . : f o.T o--'Of X j. , TO TOO vrp. /; • •: , .... 7 • ; , ' ‘ : . if 0;T : ■> )■■■.:?■ ;:o . . o. f ; V;r • Ia xj :T;. : ... /■*. j ‘ ; ■ ' ■ pT . 0 Oh vylz.lt 6 ; 'U- vf1 -.7 t> * :0.V if Or oo j' no; O' o o, ; > & n ; : • ; x ■ < •. * V ' 0 0 '■ ; OOf rOO'OO'T ::o . j-J o;..o. o ik o/on-' of.n.o..-' oO'. .. . •:> : OOA O ;W; o o.f v0:';0 ->oo:poo pro'' , 5 ■■■ yV-O'XX \ff !00: TO'- . "i o;,:o 0. -0.' ioc v i v.'m t •0: i 1 .0 OOVO 0 OOOX .. ;k- t jr • 'T- . o < >" *s • •; ' * ■ v ♦» " •v;-; I / 0 ; Oilvt ai. or'"0oo. . XJO ooo on i o n& n.'- j .0 : . , ; ,.o: - .7 ' •1, T. ’0 To 0 O.;" Jds V. -f ■-? 0 70 J 00;:>,T7; s 0 O. -,f ;>0n':" " ; f ff' ;.:iT ax. o o j o ; oiT ;i • V - : : toot >0;. .. o -on. -o f- 0 n ■ o- 5 . ;■ •’.J* o v j.. ;• v 00 00:0 » ; 1 i- . . . y "o : c -.-Toon: o a "r: :■ • ■:-x .f - ;-T J.- - j o - • • :t • v. A o >t •: o > . o i 0 , OGO V- •• C - X J . :■ ■ T . -f. ‘ : ,i. : ■ - r - - v. Tfo 00 . T . io.U oroo po f .•O' ■ ; ; O'. : , , 0 ; Tn.f; . T f 0 ■ 0 f \ ,■ T ■ -»'■* v '<•' v'* v? :v i • • a . • i p Jp- + o .0 n o:nf:To ' q,0 rp'-'p'' ps -niv j?er:a’'L noioi on'; ; r: .■ . •• : •/:(' :J'i; UXTCOOTnTf n:i'f O -V 0 O :: On 1 '.ToGon-. r; .■ : oo-. G oniJ oGofrrn; uwc TO OOOX n oof' vo-vo.rn c uxtoi o-o' - n v? icl I .o noo: o 7. o. "-on on }.'.■■■'/ ‘ ' 7 enoixu mo; : ' : v ■ O' [ i :>•;? CO' Got „ 0oJ TO 77: on ■« OV.-G pYf Toc/i if .oi'"'0.or 7o.iT ;l.i. ; .. ' OOO' - T 0 : • > ■*? . n ■' ■: V in* v >. ./ . . , ... . , ; j;. . • , , : •••;:; ; ?*:■ j no ' ■ o ■ ; . no ■ v : o • * o o o o Of • ' i:: : i Vi - !' no ■■ " n - - v n o • • ■. < : ’ <;■ ; v ;• / ' ' r' " : O . ' f ' ' : '■■ , : 7' ' .7 0 . I > 0 ': (of & ■ :■ i O-n.-v B'.-t O' ion: .1 'ti : : h ! j 4 ■"i ■ v v..!^ ’ • '• on-7 Y-h:ov i.t "■ "7 ■ ' P' 0i!,: l . -J'-'.''. ■' : . 0" ■ C : ;> j i ■: ■ r( ; ?i’\f C ; ■ ’ r -•/ r • 1.- • '■ V; \ V 0 • ' : •: . ..■ . ; O ■ ; ■ ■ . - : ■ : ■ ; ; o ; :n v./’Y7!- ■■ ■ • : ‘or;.;' 1 \ • " v ;; • • ..j. ■: •• ; ■ - x 0- vn ; O rVv .Of ! iC i?G ' ■; 0000 ; ro- o i n ?•.< l'r- c.: i ■ i.: . . -J /'• ■’ ) o'> o; oo QCl JK • : 1 ■ ■ f: :-j'. i : n : I, ‘ j :J o :. o or; •' , .■ £ .? OOY (I I; ;0.:0€0.“K; :• 'OO 0 ;'0;>i -• 0:.;,.':. ,.r ' r O/ O/ 0<± regulation of broadcasting. Just as the press of America has thrived best without censorship, so do I believe that radio can and must work out its problems in the public interest without having throttling hands laid upon us. I believe that anyone who really knew of the energy, thought and sacrifice of revenue that goes into our efforts to improve ourselves, and who was a careful enough listener to realize the high standards broadcasting has so swiftly attained, would believe, as we do, that censorship is an unnecessary evil which should never be allowed to be sub¬ stituted for the editorial rather than censorial function we voluntarily exercise. "With regard to over-regulation, I believe that the achievements of broadcasting in its few years of existence form the best bulwark of evidence against the wisdom of putting too much of a strait- jacket on our operations. There is about over¬ regulation a fixedness and rigidity which retards growth. I have no doubt that left to ourselves, even with the public to guide us, we shall make some mistakes. But these mistakes we can and do correct and correct swiftly, and it is my honest judgment that we should be allowed to work out our own salvation, for 1 believe I am able to assure you that we shall not fall short of what our government and our people expect of us. fl XXXXXXXX BROADCAST ADVERTISING- KEEPS ITS UPWARD TREND The strong upward trend of broadcast advertising was continued in January, according to compilations based on reports of National Advertising Records . Network time sales of the two big companies, National and Columbia, reached $3,759,995 for the month, which was the highest ever reported except for the first four months of 1932, when network broadcasting reached a peak. These figures do not include talent costs. The total for January this year was about $63,000 more than for December, which was slightly more than the seasonal increase. As a result, the broadcasting index based upon a moving four-year average rose fractionally, from 131.0 in December, to 131.7 in January, As compared with the period a year ago, the percentages are more striking, partly as a result of the downward trend then prevailing. Whereas December time sales were 123.0 per cent of those a year before, January sales were 133.7 per cent of those in January, 1933. Both companies shared in the gain. The National Broad¬ casting total was $2,373,923, a gain of $504,038, or 26.9 per cent over January, 1933. In December the NBC gain was 16.2 per cent ov the preceding December. X X X X X X X 8 3/6/34 WISCONSIN JUDGE BOILS OVER IN ASCAP PROSECUTION The following is from The Evening Telegram, Superior, Wis. March 1: "Judge Patrick Stone Thursday morning denied a motion for a new trial in the civil action of the American Society of Composers Authors and Publishers of New York against Sam Lurye, proprietor of the Ritz cafe. "Wednesday afternoon Judge Stone dismissed the action in which the music society asked $250 damages from Mr. Lurye on the allegation that he caused to be played in his cafe last July two popular songs without consent or knowledge of the copyright owners. "Thursday morning Atty. Wellington J. Brown, Duluth, resigned from the case and Atty. John Sprowls , Superior, announced that he had taken the case over and appealed for a new trial on the ground that Judge Stone had dismissed the case contrary to the evidence. Judge Stone lost no time in declaring that the motion for new trial was dismissed and declared: "'The witness (Miss Eleta Peterson, Duluth) entirely disqualified herself on the stand. Her testimony was such that I couldn't base a judgment for the amount asked for in the complaint or any amount. That is the stand the court has taken in this case and I am satisfied that I am right. " 5 To me this case is nothing but a plain racket. I don't think it is right. It is legalized dishonesty. That the plaintiff should go down into the pocket of the defendant and take $250 because these two pieces have been played is entirely unequitable. ' "Later, after Attorney Brown explained that he has been retained as an investigator and attorney by the New York Society, Judge Stone apologized for some of the remarks he had made. "Attorney Sprowls renewed his plea for a new trial and Judge Stone countered with a declaration that 'no more cases of this nature will be tried in this court. If they are tried, there'll be another judge called in to preside* The defendant in this action has been put to enough expense and trouble.'" XXXXXXXX 9 BUSINESS LETTER NOTES Oswald F, Schuette, of the National Association of Broadcasters, and former President of the National Press Club, is Chairman of the Annual Membership dinner of the Press Club to be held in Washington, Saturday, March 24. President Roosevelt, who is a member of the Club, will be the guest of honor. Invitations will be confined to members. K. H. Berkeley, Manager of NBC in Washington, accompanied by Mrs. Berkeley, is on a short vacation trip in Florida. Mr. Berkeley recently had the misfortune to lose both his father and mother. An order for thirty-eight carloads - an entire train¬ load - of electric refrigerators was received by the Crosley Radio Corporation from Chanslor & Lyon Stores, Inc,, San Francisco, Cal. This order, according to Electric Refrigeration News records, exceeds by eight carloads the largest single order ever received by any manufacturer of electric refrigerators. Herluf Provensen has resigned as Manager of WLBW, at Erie, Pa., and has returned to Washington where he was formerly Assistant Manager of the NBC. One central and four mobile transmitters operate on 30,000-40,000 kc, in the new Piedmont, Calif., two-way police radio system, which has just been installed by Elmer L. Brown, of Oakland Calif. By means of the apparatus, the roving police cars can talk to headquarters or to each other. XXXXXXXX GLOBE WIRELESS ONLY OPENS SHIP TO SHORE TRAFFIC A recent issue of the Business Letter told of the inaugur tion of a Transpacific radio service to land stations and ships at sea announced by Globe Wireless. This was based upon an Associated Press dispatch, which item, in reprinting, we captioned "New Globe Wireless Service Across Pacific Started. " Both theAssociated Press and ourselves were in error on this. We are indebted to Jack Kaufman, Executive Vice President of theGlobe Wireless, of San Francisco, for the correction that at the moment Globe Wireless has only opened its service for marine ship to shore traffic. We regret our error and hope it has caused no embarrassment to the California company. X X X X X X 10 ; f. >/' : '■ v v.: ■ '■ I ' ' ' •/•'i vr;'i . ■ t; d . . : •“ : ■ VI 'T: ,n ; ■ f.B fBctc- ■ f;i-? ■ ,!r:C .v ■ ! ' -r ~ V.:. "• Ti ’ : ■ •: ' . <^rri;v . \s ,• — .7 S'- > j : ; - *T L • ' ■ vr- vM : !• \ / • • i < , f ; 3/6/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (March 6, 1934) WICC, Bridgeport Broadcasting Station, Inc., Bridgeport. Conn., modification of license to change name to Southern Conn. Broadcasting Corp. ; WFDV, Rome Broadcasting Corp. , Rome, Ga. , authority to operate without approved frequency monitor while it is being sent to factory for recalibration; WSUI , State University of Iowa, Iowa City, la., special temporary authority to operate from 10 P.M. to 12 midnight, CST, on March 10 in order to broadcast University party program. Also, UPG-Q, State of Ohio, Dept, of Highways, Div. of State Highway Patrol, near Columbus, modification of C.P. approv¬ ing site for transmitter corner Ackerman & Olentangy Roads, near Columbus; Carter Publications, Inc« , Portable, general experimental C.P. 27600 kc. , 2.7 watts; W4XJ, City of W inston-Salem, N. C. , license (Gen. Exp.); frequencies 30100, 33100, 40100 kc., 25 watts; W4XK, City of Durham, N.C., Police Dept., license (general experi¬ mental) frequencies 30100, 33100, 37100, 40100 kc. , 15 watts; W8XAM. The Spark s-Withingt on Co., Jackson, Mich., renewal of license (Spec. Exp.), frequencies 2000-2100; 42000-56000 and 60000- 86000 kc. , 100 watts; KGSA , City of St. Louis, Robertson, Mo., renewal of airport station license in exact conformity with exist¬ ing license. Also, Aeronautical Radio, Inc.: W9XN, W9XR, W9XW, Kansas City, Mo., W2XAK, Bell Telephone Laboratories, Inc., South Plainfield, N. J. , W9XA, National Broadcasting Co., Inc., Denver, Colo., and W8XAR, Westinghouse Electric and Manufacturing Co., Saxonburg, Pa, , renewal of special experimental station licenses in exact conformity with existing licenses. Set For Hearing WGBI, Scranton Broadcasters, Inc., Scranton, Pa., C.P. to increase power from 250 watts to 1 KW, make changes in equipment and use directional antenna; Hoosier Broadcasting, Inc. , Indiana¬ polis, Ind. , C.P. 1360 kc., 1 KW1, unlimited time; facilities of WGES and those vacated by WJKS. Ratifications Action taken March 1: WJAO, Mackay Radio & Telegraph Co., San Francisco, granted 60 day authority to operate 2 KW spark aboard vessel "Missoula", pending action on formal applica¬ tion; Action taken March 3: _ WMCH, Radiomarine Corp. of America, New York, granted 60 day authority to operate aboard vessel "Maui", pending receipt and action on formal application. 11 3/6/34 Miscellaneous WGES, Oak Leaves Broadcasting Station, Inc., Chicago, Ill., suspended grant made Feb. 27, 1934, of special temporary authority, to operate unlimited time on 1360 kc. , not to exceed 28 days, because of protests of stations WHFC, WEHC and WKBI; application designated for hearing* XXXXXXXXX DECISIONS REACHED IN LOUISIANA CASES The Federal Radio Commission has entered its final order as indicated below in the following cases: Ark-La-Tex Radio Corporation (New), Shreveport, La., applicant asked for C.P. for new station to operate on 1210 kc . , 100 watts, unlimited time (facilities of KWEA) ; - application denied as in default; KWEA , Hello World Broadcasting Corp. , Shreveport, La., applicant asked for consent to voluntary assign¬ ment of license to International Broadcasting Corporation; - affirmed theCommission action of October 31, 1933, granting the application; KWEA, International Broadcasting Corp. , Shreveport, La., asked for renewal of license, 1210 kc. , 100 watts, unlimited time; - application granted. The order as above entered shall be effective at 3 A.M. Eastern Standard Time, March 9, 1934, and the commission will issue and publish at a subsequent date an opinion setting forth a state¬ ment of the facts appearing of record and the grounds for the decision herein reached. XXXXXXXXXX 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENT I A L— Not for Publication j; \f- 'C \\ j : [ if l\ I ; 1 i ^ r 11 u \Z , 4 Jx IB ' 1 1 v I IBS £ r ~~ i# h INDEX TO ISSUE OF MARCH 9, 1934. Rayburn Looms As New House R»dio Leader . / Communications Commission Held Peril To Press, /I Radio Industry Participates In Presidential Code Conferences ^ Judge Rutherford Protestants Awaken Sleeping Radio Bill . Broadcasters See Food and Drugs Bill Passage Fading. . Radio Continues To Gain In Great Britain . . . 2 3 6 7 Jumbo Columbia Broadside Offers Larger Summer Audiences . 8 Hygrade Sylvania Charges RCA and GE With Monopoly . 9 Sharp Opposition Develops To Dill Communications Bill . 10 Business Letter Notes 12 lo to RAYBURN LOOMS AS NEW HOUSE RADIO LEADER It looks as if Representative Sam Rayburn of Texas, Chairman of the Interstate and Foreign Commerce Committee will be the dominating figure in the House in radio from no w on. Since the election of V/ allace White to the Senate, it has been Repre¬ sentative Bland, of Virginia, Chairman of the Merchant Marine Radio and Fisheries Committee. Radio in theSenate has always been under the jurisdiction of thelnterstate Commerce Committee but in the House it came under the Merchant Marine & Fisheries Committee due to the fact that wireless was first used in ships. As it developed into radio and broadcasting came into existence, the same group in the House con¬ tinued to control but radio occupied so important a part of their work that the name was changed to Merchant Marine, Radio and Fisheries Committee. Rayburn came into the picture with the introduction of the Communications Commission bill since telephone, telegraph and cable regulation has heretofore been lodged in the Interstate Commerce Commission and hence has been handled in the House by • the Interstate Commerce Committee. Reoresentativ® Bland resented this invasion and moved that the Communications Commission bill be referred to his committee instead of Mr. Bland's. Finally the House was called upon to act in the matter. On a division demanded by the Virginian, the ayes were 108 and the noes 125. Whereupon Representative Bland demanded the yeas and nays but again lost, the yeas being 148 and the nays 213. Considerable regret was expressed among the broadcasters at the prospect of Representative Bland losing radio jurisdiction. "Representative Bland has made a thorough study of radio and acquitted himself with credit as a member of the American delegation to the North American Radio Conference in Mexico City", a broadcaster said. "It is a pity to lose him. Representative Rayburn, while very able and a fine chap, personally , knows nothing about radio and apparently is proud of it. He will have to learn from the ground up. " Representative Rayburn., a Democrat, was born in Tennessee in 1882. He was graduated from East Texas College and studied law at the University of Texas, Mr. Rayburn began law practice at Bonham, Texas. He served in the Texas House of Representatives for six years and was the Speaker thelast two years. He has been a member of the 63rd to the 73rd Congresses (1913-1934) from the 2 2/9/34 4th Texas district and will be up for re-election next Fall. The other members of the House Interstate and Foreign Commerce Committee now considering the' Communications Commission bill are: Democrats: Huddleston, of Alabama; Lea, of California; Crosser, of Ohio; Corning, of New York; Milligan, of Missouri; Bulwinkle, of North Carolina; Chapman, of Kentucky; Maloney, of Louisiana; Cole, of Maryland; Pettengill, of Indiana; Kelly, of Illinois; Marland, of Oklahoma; Kenney, of New Jersey; Sadowski, of Michigan; Monaghan, of Montana; Maloney, of Connecticut. Republicans: Cooper, of Ohio, Mapes, of Michigan; Wolverton, of New Jersey; Wolfenden, of Pennsylvania; Holmes, of Massachusetts; Merritt, of Connecticut, Reece, of Tennessee, and Wadsworth, of New York. XXXXXXXX COMMUNICATIONS COMMISSION HELD PERIL TO PRESS Senator Schall, Republican, of Minnesota, made another attack on the proposed Communications Commission as a menace to the freedom of the press. Also former Senator Reed, Democrat, of Missouri, held the same view. Senator Schall said: "I fear that the Senate bill to provide for the regula¬ tion of interstate and foreign communication by wire or radio, is in harmony with the purpose to centralize authority for control of all press dispatches, all press associations, all transmis¬ sions of news, and create another Federal bureau to place all interstate communication under the censorship and secrecy ban of a Federal autocracy. "That is precisely what Mussolini did under his drastic press censorship edict that went into effect January 1, 1925. He quickly realized that his grip on the people of the self-govern¬ ing communes could not be maintained under freedom of the press, the radio, and other instruments of public communication. Stalin had already done the same thing; and today Hitler and our own ’emergency1 rule are doing likewise, despite the guaranty of our Constitution. "What was the result of the Mussolini ’new deal' censor¬ ship? Even under a king, Italy, pursuant to her constitution, had 7,312 self-governing communes. Mussolini, under the secrecy ban of press censorship and control of communications, abolished every one of these 7,000 self-governing communes. By October, 1925, only 9 months after the press-censorship edict, even the municipality of Rome itself was deprived of self-government, and all Italy was directly subject to one man, Mussolini. The king 3 3/9/34 and all his dukes had been placed on pensions provided by the loans of V/ all Street. Every form of self-government had been abolished, because the people had no free press, no uncensored communication. "In the radio censorship bill, even the utterances of a candidate for public office are subject to Federal license rules. Again the straw excuse is advanced that it is to protect the public from 'obscenity' and ' lewdness ' in campaign speech. The reports of public investigations are subject to radio license. The contents of a referendum to voters are subject to license. All press despatches come under a Federal license law. "A licensed press is not a free press. A licensed radio broadcast is not the freedom of speech guaranteed by article I of theBill of Rights, drafted by the first Democrat, Thomas Jefferson. "The existence of a daily newspaper or magazine depends upon its business office. The business of a newspaper depends upon its bank credit. Control of the banks means control of all business enterprises, including the newspaper business. This administration has already expended something like $1,000,000,000 in the preferred stocks of over 5,000 banks. The other day the Chase National, formerly known as the 'Wiggins bank' , issued $50,000,000 of new preferred stock to be sold to theTreasury through the R.F.C. "Thus the freedom of the American press under article I of theBill of Rights is not only to be hog-tied by a press censorship code and hamstrung by a licensed radio and licensed control of interstate dispatches, but its financial existence is threatened by Federel ownership of the bank that has power to close down the newspaper. " Declaring that there is nothing so important in a democracy "as a free and fair dissemination of information", former Senator Ree£, of Missouri, said that the freedom of the American press is endangered by the proposed Federal control of communications lines. The extent to which the radio is controlled and in¬ fluenced by the government was seen by Mr. Reed as an example of what would happen to the press if the government were to take control or possession of telegraph and telephone lines. He said that the plan would enable the administration to "influence and circumscribe the dissemination of news. " XXXXXXXX 4 . I I'Bfl't'fi - , V : *• 1 ; v. • -r ;• 3/9/34 RADIO INDUSTRY PARTICIPATES IN PRESIDENTIAL CODE CONFERENCES The radio industry was in the thick of it in participat¬ ing in the Code conferences in Washington called by President Roosevelt and presided over by Gen. Hugh S. Johnson. There were preliminary sessions of the Broadcasting Code Authority Saturday and Sunday , advance arrangements for which were made by James W. Baldwin, Code Officer. The broadcasters later attended the group meetings and worked on a report having to do with broadcast technicians. Also a questionnaire was prepared which will be sent out seeking information with regard to radio artists and performers. The Broadcasters' Code, according to Phil Loucks, of the National Association of Broadcasters, has been working exceptionally well and has been cited by the national Code Administration as an example to other industries. It is said that the Codes of the radio broadcasting and the oil industries have been two of the smoothest working Codes that have yet been d evised. Bond Geddes represented the radio manufacturers at their Presidential Code sessions. The manufacturers are under the Electrical Code which is now under revision and therefore were especially receptive to new policies and viewpoints. One thing they were interested in was whether or not the filing of prices by competitive manufacturers was to be continued. Mr. Geddes said this was still uncertain but that the practice might be continued in a modified form. Another thing which the radio manufacturers were inter¬ ested in was the possibility of resale price maintenance. It appeared that the NRA would not include this in the Code, Also under consideration at the time of the Presidential conferences was the Code of the radio wholesalers which has yet to be submitted. The wholesalers were represented at the Confer¬ ence by Ben Gross, X X X X X X X X JUDGE RUTHERFORD PROTESTANTS AWAKEN SLEEPING RADIO BILL A bill introduced by Representative McFadden, of Pennsylvania, to prevent discrimination of stations and networks in accepting political speeches or religious programs which doubt¬ less would have slumbered peacefully throughout the session, has been revived to the extent that hearings will be held on it by the Merchant Marine andRadio Committee beginning next Thursday, (March 15). It is doubtful if the bill will reach a vote this session, maybe never, but the pressure brought by the Watchtower Society, Judge Rutherford's organization, has been so strong that Representative Bland, Chairman of the House Committee felt obliged to hold hearings on the bill. 5 .i r\ V . • •■■ot ^ j\ v-f'-O o :i -'-v^ : r'j-W df: -v-VO { to i f- , .l ;■: 0-0 o jo..- LciJ;.q.t jri ’ b — ' r } - ■*■■ • • _ *:* • • v • - , • • : V'- Pf. •’ Ob b S . '■ ■ ■ ■ • - ; , & ~t;nrio y.ASi 3 j.£yn :v : i'i :rxo - •' .in., 0 o'rvic : -,f ;o ' • " ■•••.. '0 Ob' , V, ^'x bO ') J ■ •? , . . f r;.pV; ■: O'l - ■: nn- •••- O ■ / - Y-"'. ' ' r: ■ • ■' ; ■ : ; v n ,,:fo iSd ;i ■ ' . Jr o t o;::/. 5: r. u ; i .r v . - iOJ rrn ;U; dny: ' i 0 ,M.O .irt •, 1,1 -O >*; ' , r ‘ 4*7 ,f v V ; ’ V r ‘ * s : -j ;• > :i - • ■■■■:< •• ,0- V vt 11./ 0 ..? o.-:-rr. : -:•> - on :'Ob-..v - ~ b.--' -v--, = * : net ' 'X- ■ v'on n 0 v ; ; : ' ' ,3 •:• I • 1 :-r' - n ' ' - . ’ •' ' ■''' .. v: o J. ‘'o . • : -• •' ■’ . . - ; ."3 3 on "S'-- "3 fib , 3 » ? i ’ 1 ■ ! ; • '• '1 • !C1 ;f.f .] ;ifi V > i.y'; . • . . >. - .31. ::-)i 0." n- n ' ; . ' , n.L iib , --'i i , .■ ■ >n; fi io I .0. ' ' ■ - OC-fi bCo ■' j" ■••3 •! ' :■ . .. i - . i d ■ . •.. ■ ; : . • ; . :i > - r-i'iv-y: ,/.or‘ - : ' .L ;• J-. , i:'. r-::- - • « •! . - - ■ ■ < • ; • ' 1 : ‘ ' L - i ..J. - ■ ;• i ■■■ • . : if.Oi -» t i =• ' . , • .. • ) : ■ ' < . ■ . r j -■ ,t ■ . o ;:o. .. : • ■: ; ; rOTOi -3; ,:n..:0 o- 3:!:: , . . .. • ’ ' : S. • v . • : ; ■ • ' .1 V . f i Xi i-r b.; ob- j . t - ■ !.v . -3 i.v.3 . ' O. ') (/ : ' it U:'i.i 3'- 3:1 - . , < ; .. . •• : J • • ‘r . ?'• "i i i. I V J v-‘ / ' ... , - ; • • j ■ ■- - . . • :/T v ;•••• f < : . a . * i .r , i. A. - • : i. ’• i. . r ■ !j » f . "i - ‘ •' ■ 0; • 7(4 3/9/34 Complaints that Judge Rutherford and his religious pro¬ grams have been discriminated against have been pouring in on Senators and Representatives for the past month. It was estimated that petitions received in the House alone bore the names of no less than 2,400,000 signers . The text of the McFadden Bill reads, in part, as follows: "No person, persons, company, association, or corpora- tion owning and operating a radio broadcasting station, and receiving and broadcasting radio programs for hire, shall dis¬ criminate in the use of such station in favor of a program of speech sponsored by any person who is a legally qualified candi¬ date for any public office, and/or by any religious, charitable, or educational company, corporation, association, or society or any other like association or society, and against or to the ex¬ clusion of another person who is a legally qualified candidate for any public office, or of another religious, charitable, or educa¬ tional company, corporation, association, or society chartered or licensed under the laws of the United States, because and for the reason that such person, religious, charitable, or educational company, corporation, association, or society holds and promulgates and advocates views contrary to those expressed in programs that nave been broadcast. "The owner, lessee, or operator of any broadcasting station contracting for or accepting and broadcasting radio pro¬ grams for one legally qualified candidate for a public office, and for one class of religious, charitable, or educational company, corporation, association, or society, and refusing to contract for or to accept and broadcast for hire radio programs of speech offer¬ ed for broadcast by another legally qualified candidate for a public office, or by any other religious, charitable, or education¬ al company, corporation, association, or society within the pro¬ visions of this section, because or for the reason that such legally qualified candidate, or such religious, charitable, or educational company, corporation, association, or society holds or promulgates a contrary or different vi ew from that which is expressed by the person or parties broadcasting programs, shall be deemed guilty of an unlawful discrimination. All persons, companies, corporations, or associations owning and operating a radio station who shall be guilty of a misdemeanor shall be punished by a fine of not less than §500 nor more than §5,000, and in addition thereto may be required to forfeit thelicense for operating such broadcasting sta¬ tion. " X X X X X X BROADCASTERS SEE FOOD AND J)RUGS BILL PASSAGE FADING Odds seem to be growing each day against the passage of a food and drugs bill at this session. A new bill was introduced by Congressman Patrick J. Boland which was drawn by Arthur Kallett of the Consumers Research staff which contains the following reference to broadcasting: 6 ■ V .a; • c o : ’ r .■ .. . . ■ - . ; - r. , ( V-’ 1 ' ' ■ • ! ■ • * J 00:0!' -V obfr “do A r “d y ■ : %o'l sango'ig is 1 1 ;v; i ■ - iC •XOOOfdt j-f.7; r-Oi iioro v:..-K f . ■; ••>1 :dd yl i 0,0 ,i 1 j ^ .1’ o dw nog 0 ,q V ■, :) • ; i/dl ,o,i: I jd •r.n >■; v c \bfts , od k d i : : f dr - - v.f t d OX doi . , ; i oo oc; ’XOO { ' • 1 * •''' ' : ••* - •" ’■ l£&js 0 , •v-‘ ri 000 -vo ii.r : S l ■ 1 ■ . ,v. J • ■J1U J'? too vd'ioo :y •;./ od O' ■ • • , „ ’ .i . --'■O: ■ < Vity ■ y : ; : n-r&il OyM ?.€» JO , : i ■-O -iJ; 't 0 . 1 ■' ;/ .rpOS -:.C i. ?> '• -i'i : 0: 0 Os 0’ . 0 J :.i • :C ■■ f .1 i V .• - iO > l : ; '■ . •-' :. 0 . ■ :■ .i.fiiH: ■ ■■ ly . ... f. •: J idd-dia . Os..' O i'O i’.i. v' t , /:C ■"■..I ■ o:: ro .; Aro's Ac Cc.d or* A .-"•tl- ad-rrood ;; i d .-ao . d Qri dd' ZJ.1 : >. Odd *1 a , -d •:> ,W ': v '• : »'j- . >:• ■' r dO'in ;.;i- 'SCO 0 0 ;v:;o •:01>ftCnCr j -s-’:*. o.. id of" i > .> - r ji -ioj: , t;-A- ( .1 r ■ o..;..A -:.ro >■ j. r; or, \o , or dj-rtcjj'd&bv do l A ;>£ idlsrlO; ( o r • ; ' 1 ' A. -: . . 1 . ■■ : '• ' o: v.' i .. , ru , r:."’ : n - : ■■10 ' ' . • : •. :0:.; VdJjC-O.q (J:. d £,1 VX0> ,T X;> ; : . 'Mo' ;•< O'.:.': L. '0 i ( -O ' f! V i i/OO X 1 'i;d.tOA> V.- •• V: OO i ;:d : ■d'r -i: - . O'O ;o.rI .•-; ro-ddo V,:-- -o. ; r‘- • < oo? <. o -O ■ <.,-iO-,/;00::5 . >:*' O' ' "O 'O j • ?•-' ,V... ■ . dl 'TOd If! • t t ox:- ' x ■: y a:- . o '.o ,i ‘X ; , v. ; . : d : : • O .d, , ". '"i6 , -d ;:. 0".:o"’0 . : t Vd : i . • -3 do .; ;-V: -Id ::d.U"r :. I ' . o . ' So ^ . >-ii oio-'oo . .. "r r.o : • o -aid ... -.. do -70- id . r r or ,C SJl do. , .000-0 ;.i :0; : Ov) 0; -O'O or- xd ■ , ■ j. n’o-: 0. . 0 . Sv ' •. . dd A » -O' • i .■ o' rod; r- do t.. .'d- : 0- d-o ■' ' dn:o b ’ . ■ ' . iT .:'. X H ,V • 0: . o:.r _ o.oo - :: id 0dO. OO, '0.- • ' ■ r or id J. AdM :0 i : ''OS ;• o;0- OS * i -- 1 • ■ - • : d O ri ’ ! - < V f; . . j .0 s’ V V - ‘r w J u •r V -. ‘ . -0. :• >.;..i 0 dd:)::;f; - 0 GOQd ror. . ) * o'-",.; v ■: : . --0 ;i rd ' .;To a‘f o; -o ’ r; .--. - o .- .. r 0: id ia da 0 A )• -:A sol ..r ,:r-oo ■ • ■ f r - 0 ; o , ‘ Co*; >iifT a; : i ' '• .0 . O: 0 O'dolo- ■' . : '■ 0 $ S ' ' **. . • /v > .d-v.': : O : - 1 .J - ;■ '"f . i 3/9/34 An advertisement of a food, drug or cosmetic shall be deemed to be false if it shall include any claim or representa¬ tion, directly or by ambiguity or inference concerning the effects, benefits, or uses of the food, drug or cosmetic, which has not been registered with and approved by the Board of Label¬ ing, Packaging, and Advertising Control; Provided, That nothing in this sub-paragraph shall be deemed to apply to advertise¬ ments orally communicated through and from radio broadcasting stations if no claim or representation is made directly or by ambiguity or inference concerning the effects, benefits, or uses of the food, drug, or cosmetic. A bill sponsored by Senator Patrick McCarran, of Nevada, and Representative Virginia Jenckes, of Indiana, provides that: "No person acting in the capacity of publisher, adver¬ tising agency, radio broadcast licensee, or any commercial dis¬ seminator of advertisement for another is deemed in violation of the act because of his dissemination for another of a false advertisement by another. But if any such person willfully refuses or neglects to disclose the name and address of the part” who caused him to disseminate any advertisement subject to investigation under the act, upon official request, he is guilty of a misdemeanor subject to a fine of not more than $500 for each offense. This exception is not in the present act, because it does not apply to advertisements. " (McCarran- Jenckes Bill) Faced with a seeming certainty that the bill/endorsed by drug and food manufacturers was definitely side-tracked in favor of Senator Copeland's latest measure, Charles Wesley Dunn, assailed Copeland and his bill with vigor, "Senator Copeland has written into this bill a grossly unjust, unconstitutional and discriminatory exemption of three classes", Dunn charged. "It is not the publishers, but the advertisers who will be subject to this law. They have written in an exemption for themselves - the radio licensees, the pub¬ lishers and the advertising agencies. "Responsibility for violation remains with the bill¬ board operators, street car and bus advertisers, and others. This provision could be taken to court and easily defeated. Exempt all or exempt none!" XXXXXXXXXX RADIO CONTINUES TO GAIN IN GREAT BRITAIN Radio continues to gain in popularity in Great Britain, according to a report from the American Consulate-General, London. During the month of January approximately 1,110,000 licenses were issued by the Post Office, representing an increase of 150,000 in the number of license holders after allowing for expired licenses and renewals. 7 ■ ■ r'-(.\ i. V. i. : ■ i ■ r. . . j . . : : * ; I f ' i "J ' i ;> -V- ,;-i£Kp - . ;‘V ... ; ij ■■ ■' ' : . . , -V . . r*. T : *-•' *./ • - ,.i ;:fc • r l v J i • IIP ; ; | 1 V'1 . , . : , - ■ ru: :lr . } > f Ma'ips :h ■■■'- - - ^ . o/ y/ oft The total number of radio licenses in force at the end of January, 1934, was 6,124,000 against 5,366,000 at the end of January, 1933, an increase during the year of 758,000. The total number of radio sets in the United Kingdom, the report states, is now the highest in Europe. One person in every eight of the entire population of Great Britain and Northern Ireland is now a license holder. It is estimated that there are radios today in approximately 10 million homes, creating a poten¬ tial radio audience of about 45 to 50 million people. X X X X X X JUMBO COLUMBIA BROADSIDE OFFERS LARGER SUMMER AUDIENCES A 16-page Jumbe "booklet", each page l\ feet wide and 2 feet high (about the size of the New York Times ) with boldface type sometimes as large as lp- inches, is the medium chosen by theColumbia Broadcasting System to tell the world that Columbia " now offers to radio advertisers a larger Summer audience in 1934 than the largest Winter audience of 1931, 32, or 33." "An ’Interesting Generality’?", the introduction to this huge "booklet", prepared by John J. Karol, Director of Market Research, of Columbia, interrogates and then answers. "Far more than that, when it is focused down to three specific points: Columbia offers advertisers a Summer 1934 radio audience - larger by 2,763,000 extra listeners than the peak Winter audience of 1932-33, larger by 5,940,000 extra listeners than the Winter of 1931-32 and larger by 10,119,000 extra listeners than theWinter audience of 1930-31. "Those are positive statements. They rest on positive evidence. Some of this evidence is presented in the following pages. More of it (200 pages) is available upon request." "Do you plan to be away from home on a vacation this year? How long a vacation? And when? Will you take a radio set with you? Or use one when you get there? - these were some of the question asked of 4,820 radio-owning families by 212 bond¬ ed investigators of the Ross Federal Research Service." The remainder of the large "booklet" covers the follow¬ ing topics - "Typical Radio Family - Two Summer Portraits - Spanning Twelve Summer Months"; "Only 10 in Each 100 Radio Fam¬ ilies Away on Summer Vacation"; "Your Summer 1934 Radio Advertising Dollars" (Showing how much more the 1934 dollar will buy than the Winnter dollar of 1932 or 1930); "Summer Thrills for CBS Listeners" and "CBS Presents Radio Broadcasting Over the Columbia Network in Summer 1934 as the ’Best Advertising Buy’ Dollar for Dollar, of any previous Summer or Winter Season." Mr. Karol also sent a reprint of an article "The Eye versus the Ear" by Ken R. Dyke, Chairman of the Copy Testing Committee of the National Association of Advertisers, which 8 f a If' oJ . ^ i , p.'-j " o i>.rt \ !oJb : ' fi C ? ‘I • 1 ‘ . 3 ; a :• )J I : i ■ : •; & ft f5 < . :V ”l Ijs . tr 3 ^‘icaoT: rfch : • %*% won a £ •/ 3/9/34 reviews a test made by Frank N. Stanton, Department of Psychology, of the Ohio State University. The experiment was conducted on 160 university students. The examinations were made 24 hours, 7 days, and 21 days after the presentation of the copy to each group. The "Pure Recall" test consisted in writing as many as possible of the brand names remembered from the advertising copy that was heard and read. For the "Aided Recall" test, lists were supplied of all the commodities advertised, with a blank space to be filled in with the correct brand name ( i . e . , _ toothpaste, _ coffee, etc.). In the "Recognition'1’ test, similar lists were provided, except that following the name of each commodity, were four names from which the correct brand name (the one used in the experiment) was to be chosen. Mr. Stanton summarized the tests in this manner: Per Cent Auditory Superior to Visual Test 1 day 7 day s 21 days Pure Recall 33$ 118$ 7 6 $ Aided Recall 22$ 87$ 61$ Recognition 3$ 8$ 15$ Copies of the Dyke-Stanton article reprints may be had upon apolication to the Columbia Broadcasting System, 485 Madison Avenue, New York. xxxxxxxx HYGRADE SYLVANIA CHARGES RCA AND GE WITH MONOPOLY The Radio Corporation of America and the General Electric Co. are charged with controlling radio patents in violation of anti-trust laws and court decrees in a 65-page answer to patent- infringement suits brought by these companies in Federal court in Trenton, N. J. against the Hygrade Sylvania Corporation of Massachusetts, manufacturers of radio tubes, the Associated Press reports, and continues: "The answer, which amended a previous answer, was filed by former Federal Judge Hugh Morris of Delaware, representing the Hygrade concern. "He cited agreements by which he asserted, General Electric, Westinghouse , American Telephone & Telegraph Radio Corp. and other domestic radio and communication patents were consolid¬ ated. By 1930 'the entire radio field, manufacturing, use and sale*, was brought to a head in the Radio Corporation of America, he said. (continued on page 12) - 9 - ' ■: ■. ’ gi ';o.h.!l ■ ” .. J X:'’i ' ■ : ' . • ■ - •• • t , .. , ... ; :d\ . ’T;-. •' ■- iM CM •• • . . A . . . ' V'oli • ’• U MO ) ■ j ■' , : ■■■ Oii'.- * od 111© -■ '. ■ ins;; . ' ' g . . ; ' ... : ■ . ClaosH ©iw? ' ■ M : ' . r "■ " v • r • jo • ..• IC . ■ -• . - to . ■ ■; ' ■ . ■ ' ’ A f '. I , A iOf V £ ... ' • 1A> : . n-r f ,t -■ . • .j£. x 30 j >.J r. "i: - - • is . s ■; d' C . " lai ■' - i ; i sur.tfxcQ fme , a^ocM' ■ : . - - ■ ■ ' : . ■ . . . 1 ■ I . ■ ~ ■ • fc ■; : • ' , '• 1 . > V& * . 0 1 t ■ ■ ' t nl - i wold \blfl.a jrf 3/9/34 SHARP OPPOSITION DEVELOPS TO DILL COMMUNICATIONS BILL A broadside was fired at the Dill (Senate) Communica¬ tions Commission bill by Henry A. Bellows, Chairman of the Legis¬ lative Committee of the National Association of Broadcasters at the Senate hearing Friday (March 9). Mr. Bellows said that the essential objection to the bill concerned itself "with just exactly ten words out of its total of 100 pages. These ten momentous words are "The Radio Act of 1927, as amended, is hereby repealed. " Mr. Bellows declared with emphasis: "We submit that the intent of the President’s message is perfectly clear; that the proposed commission is to take over the present authority of, the authority now lying with, the Radio and Interstate Commerce Commissions for the control of com¬ munications and that additional legislation on the subject is expressly advised to be reserved to the next session of Congress,' after the Commission has had an opportunity for investigation and study . "It is our contention that the Dill (Senate) bill does not conform to the terms of the President's message By what we regard as in some instances fundamental changes in the present law relating to radio, it would vest in the new commission an authority quite different from the authority now lying with either of the existing commissions, and anticipate the action which the President has suggested for the next session of Congre : u by materially modifying the law before the new commission has had any opportunity to make the investigation which the President recommends. It is on this basis, and on this basis alone that the broadcasters come before you in opposition to c ertain features of the Senate Bill." E. 0. Sykes, Chairman of the Federal Radio Commission advocated the repeal of the so-called "Davis Amendment" for the equalizing of radio facilities. Judge Sykes offered as a sub¬ stitute the following: "In considering applications for licenses, or modifica¬ tions and renewals thereof, when and insofar as there is demand for the same, the Commission shall make such a distribution of licenses, frequencies, hours of operation, and of power among the several states and communities as to provide an equitable distri¬ bution of radio service to each of the same." "With slight changes", the Chairman explained, "this is Section 9 of the Radio Act of 1927 prior to its amendment. Developments during the past few years have made it possible to accurately measure radio broadcast service. "The provision of the Bill which contains the "Davis Amendment" is contrary to natural laws and results in concentra- 10 c ":c • : •. ; • . 3/9/34 tion of the use of frequencies in centers of population and a restriction of facilities in sparsely populated states, even though interference would permit the operation of one or more additional stations. Because of the size of the zones this distribution results in providing ample broadcasting service in small zones and lack of service in large zones. Experience has proved that the section as proposed is very difficult of admin¬ istration and cannot result in ’an equality of radio broadcasting service. 1 In the provision suggested, service is made an import¬ ant criterion, making it possible to carry out the statutory provisions of public interest, convenience and necessity without artificial restrictions." The only other witness at the Friday session was Frank McManamy, Chairman of the Legislative Committee of the Interstate Commerce Commission who testified that the Commission approved the consolidation of communications as proposed in the Senate bill. Mr. McManamy did not comment upon the radio provisions. The hearing was continued until next Tuesday morning (March 13) at which time Messrs. Gifford, of the American Tele¬ phone Company, Sosthenes Behn, of the International Tel. & Tel-., and White of the Western Union will be heard. Because the hearings of the Senate bill will continue until that time, Representative Rayburn has cancelled the hearings on the House Communications Commission bill scheduled for Tuesday and they will be held at a later date. Mr. Bellows objected to the provision in the Dill bill that no broadcasting channel shall be cleared for more than 2200 miles on the ground that it was technical question and one for the engineers rather than for Congress to pass upon. "If Congress is going to change its entire policy with regard to radio by legislating on purely technical matters, why set up a Commission at all?" he asked. Mr. Bellows protested against the provision of the Dill bill which would cut down the licensing period also revocation without hearing. The Legislative Chairman concluded with a strong argument against the elimination of the provisions for appeal to the courts from orders of the Commission. "The new Commission is certain to have plenty of troubles without having to work out a new and untried course of legal pro¬ cedure for dealing with radio problems", Mr. Bellows said. "We cannot believe that the President, in asking that such a Commis¬ sion be set up, wanted it to come into being with such absolute authority as to deny in many cases the right of appeal to the courts. Such authority could be only a source of additional and wholly needless grief for the Commission Itself. As for the broadcasting industry, this change in the law would apparently deny a right which is implicit in our whole system of government - the right to test administrative rulings in the courts. " XXXXXXXX -11- } -!■ :J i7 / I - '■ ;ilv ■ .• v’j'.." r.l i . ■A fid i ■ ;f';? . ;P • . : C> j 0 ! •' '■ : , P0!O "Ir. ; ■ ■ /’ L v ■ ] ' V ‘ : ■; ■■ •" ; f : ■ . ' ■' ; 0 . P.; i -C • • . ■ ; i " . /■...! : . . - • . ' -- ■; n ■ .10 0 f J . ,, j'.i. . 7 a ■ • . 7: - r * • ' • •. V , 0.0! 7 0 ’■ *' •> A l : i . ; . it- i j : V»T ; : i ?• ■ • i . ' " ; i: ■ *•••» . s : j. 0 .or O' he t ■ .;.v ; ' .:. iiJ. -:'o-o »: v 0 o .07 • : ■ >: n ... 3/ 9/34 • # : BUSINESS LETTER NOTES : Because spots on the sun are returning in great numbers, stations on the Pacific Coast or halfway across the continent which have. been coming in so clear all Winter, will shortly drop out of hearing, not to be heard again for seven or eight years with any such clarity as during the past Winter or two, declared Orestes H. Caldwell, former Federal Radio Commissioner speaking over WOR. With the sun spots comes the outpouring of ultra-violet rays that break up the radio reflecting mirror, and make it a poor reflector of distant broadcasting stations. This means, Mr. Cald¬ well believes, that it will not be long before radio reception conditions return to the situation of "poor DX" which we had in 1928 and 1929, when long-distance broadcast receotion was at a minimum. A new monthly fan magazine, RADIO, published in New York by the Tower group made its appearance March 1. Among the articles featured were "When President Roosevelt Broadcasts " , by Herbert Corey; an interview with Mrs. Byrd, mother of Rear Admiral Richard E. Byrd, by Robert D. Heinl and program comments by Bing Crosby. The magazine is handsomely printed and illustrated and carries considerable advertising. Copies are on sale at all F. W. Wool- worth stores for 10 cents. s tv A * . , ,8 11 4 " ■ ; V ■ g ' Oil t ' ' ' . ' . , , . . , ' • . - ) ' c . . ' ; . ■ ■ . ti }j . - . c ' ; - j di'tte c ■ . : % t . . • >f4 . i : . ti A ' . " ■ ■ ' . 1 1 1 ;<5 8 . ; U8 t ■' C rj.i it" • mo • • ; - ••• ■ . n n ! : i qjj ;{/» .-’i6 SsrtS QX&1 j ■; . • : ' ■ . . r: Li;W .1 fcj/l •• .Q 1 : , 'l ' • . i ■ i . • ; . . . led j ; aaolttlbnoc ' : : > a BSGX .mi/; i : nlm . . . . • .. ■ ■ ■ \7 rC «-» r\7 ■ ’ a ■ . .L r\ v > • ■ D A i ' {Si . ... ’■ i'X , . ' . ■ , rt, ; ■; 1C. • ,-jv i t MM ' ; k:lq0 • t 1 ' _ ; i ■ . > : ; ; ,ainoQ’ OJc **01 /t v ■ r r /'A 5 : ; • $ -i f fartf Bl.draiJl0.D3 IBiip : .. . A ■ .-.■jxa -J’ J*T( T OiC ■ •• , fl>J -OJU* ' A ■ 1 ' J ft ■ ioi ' /. IS £ > tc 5. • , 1 '»* ■ — - ■v [ i . . nil? i 5i ri f r M .’1 p f:' ■"'< " .■'t ■: / ; rvow !c-u;.l' ; :A' ; -■ ■* - • ■ . - - A' nor: ■ !.. ■’v •/ ■ ■ "u.' t ■ •: - : ' „ A . ' ■ -i ” . . . ni r Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTS L — Not for Publication INDEX TO ISSUE OF MARCH 13, 1934. Censorship Fear Belittled By Dill . 2 Rival News Group Formed As New Bureau Serves 125 Stations . 3 Dry Senator Introduces Anti-Liquor Advertising Bill . ..5 W - J - Zed . Canadian Radio Industry Seen In Sound Condition Sees Objectionable Advertising Forcing Congress Control . 7 Object To Injecting New Matter In Communications Bill . 8 Hitler Squashes Russian Red Radio Propaganda . 9 Business Letter Notes . ..10 Schuette And Bisbee Score In Mellon Charges . 11 Brinkley Radio From Sea Hinted . 11 Decisions Of The Federal Radio Commission . 11 No. 706 CO CO March 13, 1934. CENSORSHIP FEAR BELITTLED BY DILL Chairman Dill of the Senate Interstate Commerce Committee denied that there was any intention on the part of the Administra¬ tion to use the Communications Commission as a censorship weapon. Senator Dill said there is no foundation in theory or fact for the idea that it is proposed to have some kind of censorship or some kind of licensing or some kind of governmental control of the newspapers or of the dissemination of news in this country, "There is nothing in any law on the statute hooks today that gives the Government any power whatsoever over the dissemina¬ tion of news, or as to what messages shall go over the telegraph or the telephone wires", Mr. Dill explained to the Senate. "The radio lav; expressly prohibits any kind of censorship by the managers of radio stations. Radio stations are licensed to use certain frequencies in order to prevent interference. There is necessarily a limit to the number of radio stations that can operate. There is no limit to the number of newspapers that can be printed nor has it ever been suggested there should be such a limM "I am sure it was never even in the thought of the Presi¬ dent that anything should be done by the proposed Communications Commission, either now or in the future, that would in any way hamper or hinder anyone from sending anything he wants to send over the wires, or over the radio in the radio common carrier service, and I should be as strongly opposed to any such proposal as any man outside of this body, in the newspaper business or otherwise. "The purpose of the proposed legislation is to make effective the power nov; written into the Interstate 'Commerce Act of control of telephone and telegraph business in this country. The Interstate Commerce Commission have been so busy regulating the railroad that they have not had time to give real consideration to the problems in connection with rate regulation of telephones and telegraph, and it is only in recent years that the communications business has been big enough to demand the attention of those who use it from the standpoint of getting rate regulation. "So I want to make it clear that there is not only nothing in the proposed bill but there is no idea of putting anything in the proposed law that would ever, in any way, interfere with the freedom of the press or the freedom of anybody to send new s anywhere, any time, by any means of communication. "In fact we are reenacting the prohibition of censorship in the radio law, and there is no reason or suggestion from any source that I know about even to consider any proposal that would in any way hinder the free communication of the people of this country . 2 *• ■* 3/13/34 "What we desire to do is to have a body of men charged with authority who can study the situation and make it possible for the people who have the 20,000,000 of telephones in this country over which go 27,000,000,000 conversations every year, have some chance of getting the rates lowered. They have no such chance now. Ninety-eight percent of the telephone business of this country is within the States. The State Commissions cannot regulate it. Because of the holding company that reaches down and controls the telephone business in every community, because of the interrelated contracts between the parent company and these subsidiary companies all over America, the State Commis¬ sions find themselves helpless, the State courts cannot reach the interstate companies, and the Interstate Commerce Commission has never had the power to handle the holding companies. So this is a proposal to make rate regulation effective in the telephone and the telegraph business, which it has never been, and also to set up rate regulation and control of the common-carrier radio business of this country. 11 XXXXXXXXX RIVAL NEWS GROUP FORMED AS NEW BUREAU SERVES 125 STATIONS What may or may not be a new serious menace to the recently established press-radio agreement had its inception last week at a meeting behind closed doors in Chicago where representa¬ tives of 35 independent radio stations from coast to coast met to organize the Radio News Association. Despite this competition and the details of "getting started", the Press Radio Bureau of the Publishers National Radio Committee, after a little more than a week's operation is gaining momentum, reports to Editor & Publisher indicate, and approximately 125 stations were using the report late last week. E. H. Harris, Chairman of the Publishers National Radio Committee said that reports he had received indicated that the plan was functioning "smoothly and effectively." "The plan is going to be a success", he said, "but naturally it may take a few months to work out all the details so that the final program will be satisfactory to the newspapers, the national news gathering organizations and the radio stations." Mr, Harris alluded to the "bootleg"1 efforts of collect¬ ing news for the radio, and said that newspapers would never sup¬ port stations using such a service. Although newspaper reporters were not permitted to attend the Chicago meeting, Editor & Publisher talked with two of the principal organizers of the Radio News Bureau, sponsored by the association, in an effort to learn the scope of the new radio news broadcasting service. It is understood that the group met primarily for the purpose of expanding and perfecting 3 its new service to broadcasters who are outside the agreement recently signed by the national radio chains, the press associa¬ tions and newspaper publishers. According to information given by Stanley L. Hubbard, KSTP , St. Paul, Minn, the Radio News Association is now function¬ ing through a series of news bureaus in principal cities from coast to coast on a plan similar to that established by the Columbia Broadcasting System several months ago and discontinued under the new program. Present sponsors of the Radio News Bureau are Mr. Hubbard, KSTP; Mr. Earl, KNX; Earl Anthony, KFI, Los Angeles, and John Shepard, head of the Yankee network with nine radio stations in the principal cities of New England. These men are the organizers of the bureau and as near as it could be determined were the principal representatives at the Chicago meeting, although they claim 35 stations were represented at the session. Mr. Hubbard said the sponsors of the movement have already spent over $50,000 in establishing "key” bureaus. Hubbard declared that bureau news gatherers have been definitely instructed not to "lift" news stories from the news¬ papers under penalty of being fired. Guy Earl, of KNX, Los Angeles, emphasized that it was the consensus of those present at the meeting that radio stations have the right to do what they want with the news they buy through the Radio News Bureau, indicating they may use the bulletins either as sustaining or sponsored programs. He declared, however, the project was not primarily a commercial venture in news gather¬ ing, but an attempt to give the public "fresh news. " The first week’s experiment of the Yankee network in furnishing a news service to its listeners through its Boston and affiliated stations throughout New England is viewed with varying opinions . "Shepard id doing pretty well", a Boston correspondent informs the Heinl News Service. "Sometimes he gets the news and other times misses it locally. He's got quite a staff. The papers are still printing programs but we have taken out all mention of news broadcast. This includes Hill, Thomas, Carter andothers. The Shepard stations started panning the papers over the air by telling the listeners that the programs were not complete and to write and raise an objection. The papers ignored theletters. It looks like a long hard fight with neither side giving anything, " Mr. Shepard is so convinced of the merit of the plan that he is reported ready to spend any amount to make it "go". The consensus of newspaper publishers, according to Editor & Publisher, is that it cannot continue successful for the reason that there are not enough interesting news breaks to sus¬ tain interest in eight or nine broadcast periods of from 10 to 25 minutes each day. The necessity for filling out the time with uninteresting items from foreign countries which are largely used as fillers by newspapers, the publishers feel, is likely to dis¬ courage interest. .. .. .. __ __ „ X X X X X X 4 3/13/34 DRY SENATOR INTRODUCES ANTI-LIQUOR ADVERTISING BILL Senator Arthur Capper, of Kansas, made his debut as a member of the Senate Interstate Commerce (Radio) Committee by introducing a bill which would prohibit the advertising of intoxi¬ cating liquors through the medium of radio. The full text of the bill follows: "Be it enacted by the Senate and House of Representa¬ tives of the United States of America in Congress assembled, That no advertisement of spirituous, vinous, malted, fermented, or other intoxicating liquors of any kind, or containing a solicita¬ tion of an order or orders for said liquors or any of them, shall be broadcast by any radio-broadcasting station or any combination of such stations licensed under the Federal Radio Commission, if thesaid broadcast is capable of being received by any commercial radio-receiving set at any place or point in any State or Territory in the United States in which it is by thelaws in force in the State or Territory at the time unlawful to advertise or solicit orders for such liquors or any of them In such manner. "Sec. 2 . If the owner of any radio-broadcasting station licensed by the Federal Radio Commission, or the agent of such owner, or if the dealer in any such liquors or his agent, shall knowingly broadcast, permit to be broadcast, or cause to be broad¬ cast, anything in violation of the provisions of this Act, he shal be fined not more than Si, 000 or imprisoned not more than six months, or both, and the license or permit granted by the Federal Radio Commission shall be suspended for a period of thirty days; and for any subsequent offense he shall be imprisoned for not more than one year. Any person violating any provision of this Act may be tried and punished either in the district in which the unlawful matter or publication was broadcast or in which the same was received. " Whether Senator Capper intends to press the bill for pas sage could not be learned but its introduction at this time is significant due to the fact that he is one of the die-hard drys of the Senate and though a Republican stands high with the present Administration. In fact Senator Capper has given such strong sup¬ port to President Roosevelt that he has been called "upon the carpet" by members of his own party. Senator Capper while long in the Senate has only been a member of the Interstate Commerce Committee which handles radio, about amonth but it seems logical that he should be there because the Senator is the owner of a 1000 watt broadcasting station, WIBW at Topeka, Kans. , which he operates in connection with his exten¬ sive publishing business. Only recently he turned over his hand¬ some residence in Topeka for the station to use as a studio. Senator Capper broadcasts regularly from the Capital and in addi¬ tion to addressing his constituents in his papers, he sends electrical transcription records which are broadcast from his station telling what he is doing for them and what is going on in the Capital generally. X X X X X X X - 5 - 3/13/34 W - J - Zed Senator Kean, of New Jersey, who is rotund and looks like the late President Taft, created some merriment by referring to Station WJZ, New York, as W-J-Zed. "Zed" means the letter "z", Webster informs us, "but it is generally called 1 z ’ in the United States . 11 Senator Kean expressed his displeasure at having what he called "New York" stations charged up to the New Jersey quota and said that he referred specifically to Station WOR. 'XXXXXXXX CANADIAN RADIO INDUSTRY SEEN IN SOUND CONDITION The situation in Canada's radio industry is believed to be brighter than at any time in the past two years, according to a reoort to the Commerce Department from Assistant Trade Commis¬ sioner A. F. Peterson, Ottawa, This favorable status, the report points out, is partly due to the voluntary price agreement effected among principal Canadian manufacturers, and also because of substantial improve¬ ment in the inventory position as compared with the preceding year. Sales in the last quarter of 1933, amounting to more than 65,000 units, were equal to the volume of the previous nine months. Inventory, reported as 13,000 sets, is markedly lower than for January, 1933. The threat of severe price competition resulting from the unloading of distress radio stocks appears to have been eliminated. During 1933, sales of receiving sets in Canada amounted to 130,493 units, valued at $5,383,846. The quantity was slightly lower than in the preceding year and a continuation of the trend toward cheaper sets is indicated in a decrease of more than 20 per cent in factory values. Imports of radio sets into Canada in 1933 were valued at $1,108,672 as compared with $1,298,783 in 1932. The great bulk of Canada's radio imports are of United States origina, American sets accounting for 81,063,521 and $1,254,967, respectively, of the imports during the last two years. According to figures compiled by a local trade publica¬ tion, total radio sets in Canada at the end of 1933 numbered 1,182,000. The percentage of wired homes equipped with radios is estimated at slightly more than 49. Of 10,980 automobile radios reported in use at the end of the year, 9,245 were sold in 1933. In view of passenger car registrations numbering over 900,000 in Canada, this market would seem to present an excellent field for automobile radios during the current year, the report states. XXXXXXXX - 6 - 3/13/34 SEES OBJECTIONABLE ADVERTISING FORCING CONGRESS CONTROL Pointing out that the proposed law does not give the new Communications Commission power over advertising or broad¬ casting rates, Senator Dill, of Washington, in addressing the National Radio Forum over the NBC network, nevertheless warned; "It is my opinion that unless radio station managers eliminate some of the objectionable advertising practices now prevalent, the protests and demands of radio listeners will eventually force Congress to give the Commission complete control over both rates and advertising. " Speaking of television, Senator Dill said: "When Congress passed the radio law seven years ago, television was unknown. Nov/ it is a practical reality. If those then using all the radio frequencies h^d owned those fre¬ quencies, it would have been Impossible to secure frequencies for television without paying enormous prices for them. Under the law, the Commission simply assigned some of the frequencies for¬ merly used for telephoning or telegraphing or some other service to be used for television. "Radio engineers hope they can soon perfect television so it will be as common in our homes as broadcasting. By means of radio, facsimile reproduction is already possible. Instead of sending messages or documents, letter by letter and word by word, as in the past, the radio communication service will send a whole page at once. Responsible radio engineers say that devices will soon be available for reproducing news bulletins by an attachment to an ordinary radio set. This will mean that everybody can have bulletins and pictures produced hour by hour, whether they be awake or asleep, present or at work, but ready for them whenever desired. " With regard to rates the speaker said: "As to the regulation of radio telephone and telegraph rates, there never has been any such regulation. The radio tele¬ phone and the radio telegraph are so new and so little used, that only a comparatively few people know about them. Radio telephone rates to foreign countries are necessarily quite high, because so few people use the interoceanic telephone as yet. While radio telegraph rates are still high, the competition of the radio telegraph with the cables has brought the only reduction in cable rates to Europe in the last 50 years. That reduction of 25 per cent has actually saved 1100,000,000 in communication costs between this country and Europe since it went into effect 10 years ago. "It is impossible to regulate cable or radio rates to foreign countries, because it is impossible to control the rate at the foreign end. Since we cannot regulate such rates effect¬ ively, we must depend on the competition of radio. But a Commis¬ sion can regulate domestic rates, and we propose now to give this new Commission full power over telephone, telegraph and radio rates, including the power to regulate holding companies and all of their subsidiaries and affiliates." 3/13/34 OBJECT TO INJECTING- NEW MATTER IN COMMUNICATIONS BILL Strong opposition to injecting new and controversial matter into the Communications Commission bill drafted by Senator Dill was registered at the hearing Tuesday morning by Walter S. Gifford, of the American Telephone and Telegraph Company, and David Sarnoff, of the Radio Corporation of America. Numerous changes in the text were suggested by R. B. White, President of the Western Union. At one stage of the proceedings, Mr. Gifford went so far as to say that the business of his company v/ould stop if the Dill bill should become a law. Mr. Gifford said, in conclusion: "Far from merely transferring the present authority for the control of communications of the Radio Commission and the Interstate Commerce Commission, as recommended by the President in his message of February 26, 1934, this bill would grant to the new Commission new powers of the most drastic and far-reaching character, such as have not heretofore been exercised by any Commission, and would in a large measure arrogate to the govern¬ ment the rights of management. "Among the new powers conferred, this bill would give the Commission very broad authority over all transactions relating to practically everything the telephone companies require with which to carry on their business; would subject technical research and development largely to its direction and control; would place the extension, construction, acquisition and operation of lines and circuits under its jurisdiction; might be construed to extend its jurisdiction in important respects to constituent companies outside the telephone business and not engaged in a public calling "It would remit the entire matter of accounting to the State Commissions, thereby jeopardizing the indispensible uniform¬ ity of accounts and accounting practices, including depreciation accounting, which has been established over the period of the past twenty years by the Interstate Commerce Commission; and would rev¬ ive the power that was given to the President as a war measure dur ing and for the continuance of the World War, which under the provisions of this bill may be invoked by the President upon pro¬ clamation of a national emergency, to seize the use and control of the telephone systems of the country. And the bill would do this, notwithstanding the President has not sought such power and has definitely indicated in his message that no new powers are now to be conferred. " 8 v ;.ix aLT'Aa v; r. . i XTX' DHT>H r qT ; ‘ X • • >, .ri i: c J a <: • i J 1 ■; oo •:? 0 A ■ - r'? - • v a. " i : : : =* r '■ i J ■ : ?! • • '1 0 iTiO I' X a ‘J X n>..r.:tOOD aXa A ' ; ' .... ;; ;.a.r:a a nL“ aX aX ‘ -■ l. ' ' 1 r ]. . a .br.-:. X :1 *!i. . • ’ . : ■., a •; . /. /, a fa.-- h,f c 3 OU ' A A C , 'i. ; */; : . ' ■ . ; : . , a , a \/Cj 1. ■’ -- TiU ■ - : ! ! ; . a o. La; a a. ■ l j-.’ : • . : • “ . . • . . j ; • ' .i: • a.aa" b'i.c”rXX{ t aaia ' x "'a ' a.' "l.i U: ; J i a ■ ■: •'■a.ai'>a 3-i.X a.- a a -a: a;-: a: . • / a •• ao X-. > . . . ; a 1 a ' '■ ■ • a a - ; 1 (::c . a . , -. ; 1 1 ; .: 1 • . ; f! . . . ■ . I . •. ' O alOTi iV' ‘ a.;';;; ; ft •: ■ a: 1} .. •' >. /'.a ■■ a ;;; a va . a *'U jy* ; ‘a... ...la. ; "H’ - v • ■ a , V a1 • ; a ' a iwi-j 'a a'; 1 J a'; ! na ; a j .a • - ; :i-va.a raj a-”' aa , .’Ci .a.i.a.ara ;'.i . a I v. i V ■ : t 'V • ! i 4 ;.-Zi A , A • . a'.ara ,A i - .1 . . • • f V x : X . • . .■*- j a , . V .a v . :lc . ^ . 'V a- . a i : aJ a a •;J- -a aa ■ i; a : a : r. • .a ay, a a .a.'a;a ' ' ; a. -a':* X'Ua /•/ a : ; a • v.lV.; ■ a-a.-a-J i < • a V a 'a.; a a. J a a aa-i ! v;.a av ;.ai '. •• ..... a / .• ; 1 : j .■ a a a ■ a , a . .1 ■ ; . \ .1 . 1 " »J j-.af : ■ f a- ; a a: . . a - a ; • ■ A ij ■ 1 a' - ■ , aa i a a La; LtO a X "■ S.h -Xi. -a V * X.:a,: a a. • / . : a a: : ' > i a • ■ , a. ; . i . aa a- . .. : aa a ;S in - ; • ;/ io o . ,i VC- : ; : - - ” ' : • ,f : : : : a;"' .a ’ la' " .a' a tip a .... ;: ill 1\} 1 J ' ' i ./ ; ) ■ ' 1 i:;a a; . .i: a : Aval .La’. a . :.L 'a. ala - •••.! . ' - a..: a a •> i: ’ ■ i • ■ .i a a .a ; . - A t hi i'll U \ • • . a.i a. ?a -1 a .'(J /'aaL ? ;■ a pic a -a ; a ? m :• .i . - a • V .. : : - . ; a. .a.a -. \ ; ■ a - ' ;-:"a - .a a. •/••••'. ; A :i. . 0 ■ a > a '.a- V.! .! •' ••. ' ; .. • A . ■ .; t > * l . a a. ,i i : . a, ' C) ’C .: i'T' i i a >• . .a. : - i ' i : 1 f ! ■.a a -..a;;; a- A ■ • • - nl 'l i a’ a. .'Aa. V.af ■- a ,;;i r v Vi l j VI : ; . : .. .■ :;a - ic -■ '..a a:.’.', a ; ■ a ■ a a a ; a " ’ LalX a. . la • < o' h ..A C-VT-X ■ ■ v/’.a Ilia : .tu.: a aa,.a L ". ri ;• . w f * 3/13/34 Mr. Sarnoff said, in part: "For the Radio Corporation and its subsidiaries I am here to say we are heartily in accord with President Roosevelt's recommendations for the creation of a unified Federal Communica¬ tions Commission, "So far as this bill creates that Commission and author¬ izes it to make such studies and recommendations, we favor its prompt passage, and I am here to offer you and that Commission every form of cooperation. "So far as the bill before you would create new law at this time and go beyond the suggestions of the President, we do not see how it can avoid raising controversial issues, which I understand the Committee now desires to avoid. We respectively recommend that the bill be limited to the scope of the Presi¬ dent's recommendations and that the new Commission be created promptly so that it may make the studies suggested and to recom¬ mend to Congress such additional laws and regulations as it may find necessary and desirable. "On May 1st of last year, as a reserve officer of the United States Array, I was invited to express my views on the sub¬ ject of a national communications commission policy before the Army Industrial College in Washington. In January of this year I was requested by the Secretary of Commerce to write him a letter concerning the communications problems of the United States, and I did so." The hearings were scheduled to be resumed Wednesday with Sosthenes Behn, of the International Telephone and Tele¬ graph Company as the first witness. XXXXXXXX HITLER SQUASHES RUSSIAN RED RADIO PROPAGANDA "Washington wiseacres say tha.t Hitler has a method all his own of keeping out Russian Red radio propaganda", the 'National Whirligig of the McClure Newspaper Syndicate reports. "He cuts out the messages from Moscow by s advising’ his radio dealers to sell low-powered sets that receive local stations only. As all the 40,000 radio dealers are carefully registered, he can check up any who disregard his wishes." XXXXXXXX 9 : J-: aci ;; • - • : : ; >'■ J -r ' ' >i'"' 1 " V. * •••,.••••• 7 no - v-' . ' ’ 7 -S W kVXC-SVA & ' '.'V \ t - - **’' ■<■■ ‘ . , i ; i ft t* - ■ : ■ i ,7 77 '• : r .4 ; ;vi-' v d .T 7 : O j Vt. ' fl i i ■ C : 7 ! ; . • if 7, • £ : i ■ • V: \ i - ; •■•■• . , : ; .... : ; • ?;* i£i® r ■ a r - ? ;7.'. rv:/?. 7/7' - >■ t -7 •: , r7777.o ../ , , "„ij > r 7. ;pv .*> "t \'t rri,x U 7.7 77 7 7* . :y i. V , ... . i ;i ■ ■ : ; . ,■ . w< fiA •• -7 7 { M : r -v .. , S ; ; b,..i •> f -h‘S ■ ■ ■ • ’ Z'i . ■■. 1 ■■•'v ' V. VVV-; ??-.{5 : -• it ' • V.r'V:;. 0$ : Y ; 'j : ^ . r ; \ 7 j '.^8 3 . . 7 t'.. :•» • ' ' Ovf 1 ■■ : ’ ; V' - ' V -7 , ' ‘ : V‘;' . ■ u ,-r-. m z\ ’ " . . v:. ; ; &oaf ,, .■ : : ■ * • ' ’ . '$ ■ S • : J ; ' " ‘ ' ' 7 , - . , ■ , • i . . , , : ■■ ■■■ C-X-- , ,] 7;V j7.i . ^ r ■ i'.r , . v-v.,-:. . b'' r' v;-ja -vV VI VWWW 'V :7u: : ■ J V il:' V. .V -V - ’ V ; ■ •• : 7- "" '' r : . V • VV/X,^ ,7, ..... . 707:;;-- - .v, >W ?J > it ® ’ - ; 7 ; K.J. -, ;-7 - i ‘ V < J ■ - j : : ; i%. fi ; ■ ■: jr. vi ;007 7 ' ' ^ 77:.; ; -- " % ' > •: ; : - . r . - r f v . r .. j f' 1 • • ^ J' ^ 7-' ■ .7:,,-!.: - ; . - ; '7 7 77 f! ■ ■ • :; , ... f> Mt ■ i : ' V: ■ ' ■ - ' ' . 4 : .i- ' •; ■-< ?iV .. . . - i .... ; . ; •. : \i ' av-H Vr.v-- Y7.V- ■■'■'■ 4 v?,3*\*c [. ... ;>|j! . ‘ . ."J '! ; ■■ '.• , . r,. /, . 1 4 “ .... . •'• '' : • ' " . -. -.7 £ 7 }i : . . . 1 - ■ - ■ - -■ - >• ■ ■ 'it V ' . i ■ ^ '-:v-.;v ' 7-': • ^ V '77 .V;VV: 7^7-77''77 77-. | ?.&*• • ; ^ : «'f " 'v 7 ■ ■■ *! ■ 3/13/34 BUSINESS LETTER NOTES What is described as the world's largest television machine is being built at the Horton Steel Works at Fort Erie, Ontario. It will be ready for demonstrations at the reopening of the Century of Progress Exhibition at Chicago, May 1. The building, U. A. Sanabria, of Chicago, said the machine would have a 30-foot screen and its transmitter would weigh more than 5,000 pounds. The "National Whirligig" of the McClure Newspaper Syndicate has this to say: "Cable and telegraph insiders say a shake-up is due in international cable and wireless operations. British companies fear an amalgamation of all American communications and are tak¬ ing steps to offset themenace. Experts argue that trade routes are undergoing vast changes today and that a similar reorganizing of communications in inevitable to meet these altered conditions. "10 Orfo RADIO WEEK" will be put on by the Institute of Radio Service Men of Chicago beginning April 10th. Kenneth Hatha¬ way, secretary, will endeavor to enlighten the citizens with regard to the advantages of well serviced sets. Charges made in a 1933 radio address by Joseph D. Beck, State Agricultural Commissioner, that Walter M. Singler, head of the Wisconsin Cooperative Milk Pool, instigated use of Chicago gangster methods in themllk strikes were aired at Madison, Wis. , the United Press reports. An adverse examination of Singler' s 1100,000 libel suit against Beck was held. Beck testified that dynamitings and other Chicago gang methods developed in the Wisconsin milk strikes fol¬ lowing a trip he said he was informed Singler made to Chicago to learn how cleaners' and dyers' unions were organized. XXXXXXXX 10 ;:s si/:. jV? o*X: Tt O. .X L I V* x >: JO.'- S) k O vs : ' ; . f - J c K •- o ; I J H’i s ■ ; ii.f :'r Sr/ 0 0/10 •: -d.1 oiX-H 0 ' M J lr , f •' 4.5 : id's -.4 joi' , ; "i - 1 •/ f / \ r; ’ : : ' X ':'yys. ' : : C i.l. ■ • • OX i'o ' i J .' O : \ isi ( * / ‘TO 7 - r 0 . * .00 J.o J 1 VfXf. 3 \ ■■ S‘ l r !! .... //W ■: xo'/t, j‘oo- ’• •: • is v- 7 o ::: . o; . ' ’ ,4.-' .4 O. r ! O t ■' ■ '.. ;’.S * - : ’• ‘ v O -I J d. . ■■ .i ■ ... .. • i • ■ '. x 1;..: /;./ •• •. • i .0 ..... 3/13/34 SCHUETTE AND BISBEE SCORE IN MELLON CHARGES There was considerable satisfaction for Oswald F. Schuette when Attorney General Cummings, in addition to accusing Andrew Mellon personally, announced that the Justice Department is investigating the Aluminum Company of America. Cummings characterized this concern as a "100 > monopoly in the producing field." Mr. Schuette, along with Lee S. Bisbee, of Jackson, Mich., made the original charges against the so-called "Aluminum Trust, " Both are still retained by the independent aluminum interests. Schuette is associated with the Broadcasters in their copyright fight and Mr. Bisbee is also counsel for Sparks- Withington Company. XXXXXXXX BRINKLEY RADIO FROM SEA HINTED The Wichita (Kans. ) Beacon , according to an Associated Press dispatch, says it has received a report that Dr. John R. Brinkley, operator of the now silenced Radio Station XER at Villa Acuna, Mexico, has purchased a yacht and may take his broadcasting activities to the high seas. Dr. Brinkley is said to have purchased the yacht, "Shadow K", now in drydock at Miami, Fla. The government of Mexico recently ordered Brinkley’s station off the air. X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (March 12, 1934 WAGM, Aroostook Broadcasting Corp, , Presque Isle, Maine, license covering local move of transmitter and making changes in equipment 1420 kc. , 100 watts, specified hours; WPEN, Wm. Penn Broadcasting Co., Philadelphia, Pa., C.P. for auxiliary transmitte± , 920 kc., 250 watts; WRAX , WRAX Broadcasting Co., Philadelphia, Pa., C.P. for auxiliary purposes, 920 kc. , 250 watts; WTAX , WTAX, Inc., Springfield, Ill,, C.P. to move transmitter and studio locally; WGCP, May Radio Broadcasting Corp. , Newark, N. J. , modification of C.P. to extend commencement date to Feb. 25, 1934 and completion date to June 15, 1934; WNEW, Woodaam Corp. , Newark, N. J. , license covering consolidation of WODA and WAAM, installing new equipment andincreasing daytime power from 1 KW to 2-g- KW, 1250 kc., 1 KW night, shares with WKCP; WGST, GeorgiaSchool of Technology, Atlanta, 11 ; > * iui ; , 0 li-rs .vK . ■ 1 'o;A' f. '-'ui, •;:*. - . v l j • A r>- A Ao inconoA a, ,i A r; XA o-i*X . : '•■ 1 :>0. or: ■.XCA.fr' a 0 ; • . ; 0 ;.;0 o A:.' ■ ■■ ; ' ■ . A »5 .0 : ■’ l v: ■ O 1 : • , ■ A AO* o A ,:0J • o, | ■ •? :,,r | ; :o.fo oo -o/t s' . o: vA oooii.o A:';i j • . . . i : *. *0’- ; ; J ■ i r ■ i ■ ■’ .r H v , - AA‘ ' iO : n OL'AA 1., / . ' : ;«o i:o:o- A A-A:.', :.00 AT .i - •• . . - A • •* - •: V i • , - ,0 ; ; o • : , a- , . ' A ■ ■ ' , , or orA . ■ • .. ■ ; O', /.;• A; si ' zt [ " : it: . r \ ( ; 3/13/34 Ga„ , license covering increase in power and changes in equipment, 890 kc., 250 watts night, 1 KW day; KARK , Arkansas Radio & Equip¬ ment Co., Little Rock, Ark., license covering changes in eauipment and moving transmitter locally, 890 kc.'., 250 watts, unlimited time; KFOR, Cornbelt Broadcasting Corp. , Lincoln, Neb., license covering changes in equipment and moving transmitter locally, 1210 kc. , 100 watts night, 250 watts day, unlimited; KGBX , KGBX, Inc., Springfield, Mo., license covering changes in equipment, 1310 kc., 100 watts, specified hours; KTWQ , KGBX, Inc., Springfield, Mo. , modification of license to increase power from 500 watts to 1 KW on 560 kc., daytime hours; KWLC , Luther College, Decorah, la., special temporary authority to remain silent from March 24 to April 2 inclusive, during Easter Holiday; WLBC , Donald A. Burton, Muncie, Ind. , special temporary authority to operate simultan¬ eously with WTRC from 5:45 to 6 P.M. CST, March 25th; WGCM, Great Southern Land Co. , Mississippi City, Miss. , special temporary authority to operate from 5 to 6 P.M. CST on March 25 to broadcast speech by Judge Rutherford; WSVS, Seneca Vocational High School, Buffalo, N. Y. , special temporary authority to remain silent March 29 to April 8 inclusive, for Easter vacation. Action on Examiner* s Report WEVD, Debs Memorial Radio Fund, Inc. , New York, granted modification of license to increase power from 500 watts to 1 KW on 1300 kc. , sharing with Stations WBBR, WFAB and WHAZ, reversing Examiner George H. Hill. (Order effective March 16, 1934, 3 A.M.) Miscellaneous KFJZ, Ft. Worth Broadcasters, Inc., Fort Worth, Texas, granted regular license in lieu of temporary license to expire July 1, 1934, since Henry Clay Allison, who applied for the facil¬ ities of this station defaulted his application by failure to file appearance. Case removed from Hearing Docket; WHBD , F. P. Moler, Mt. Grab, Ohio, granted regular renewal license to expire Julyl, 1934, since M. L. Meyers who applied for its facilities defaulted by failure to file his appearance for hearing; KGAR, Tucson Motor Service Co., Tucson, Arizona, granted regular renewal license to expire July 1, 1934, since application of KVOA for its facilities was dismissed at applicant’s request; KVOA, Arizona Broadcasting Co. , Tucson, Arizona, granted regular renewal of license to expire July 1, 1934, since the application of KGAR for its facil¬ ities was dismissed at applicant’s request; WINS , American Radio News Corp., New York, application for modification of license re¬ questing facilities of WNYC, heretofore set for hearing, was dis¬ missed at applicant’s request; KRSC . Radio Sales Corp., Seattle, Wash., application for modification of license 1120 kc. , 100 watts, daytime and 12 Midnight to 4 A.M. daily, heretofore set for hearing, was dismissed at applicant’s request. XXXXXXXX 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication INDEX m ISSUE OF MARCH 16, 1934, Will Attempt To Amend Senate Communications Bill . 2 Sarnoff Further Urges Single Unified System. . 5 Stormy Time Believed Ahead For A. T. & T . . . 7 Radio Wire Companies Retort Sharply To Murphy Group. . . 8 Shepard Pours Money Into Yankee Network News Service . 9 National Network Advertising Continues To Rise . .10 Business Letter Notes . 11 Decisions Of The Federal Radio Commission... . ...11 No. 707 WILL ATTEMPT TO MEND SENATE COMMUNICATIONS BILL At the conclusion of four days of stormy sessions of protest against the Dill (Senate) Communications Commission bill, which witnesses declared went far beyond anything the President intended, Senator V/ allace White, Jr,, of Maine, served notice that he orooosed to offer an amendment in committee to the bill. "It will be designed to carry out the specific recom¬ mendations of the President for the creation of a unified Federal Communications Commission" , Senator White said, and added, with emphasis, "And it will stop there." It was plain to be seen as the hearings progressed that Senators Dill and White, co-authors of the 1927 Radio Act, were out of step with the present situation. The first open clash between the Senators was while W. S. Gifford, President of the American Telephone Company was testifying. Senator White had criticized certain language in the bill. "It is very easy to say how to write a bill but hard to do", Senator Dill admonished the Main solon, "?s you would have known had you come to help me write it. " "I was not invited to help write it", Senator White retorted, his face reddening. When Col. Sosthenes Behn, President of the International Telephone and Telegraph Corporation clashed over the section con¬ cerning the extent of alien ownership or control permitted a company operating a radio station, Senator White interjected: "It looks to me as though this section was nationalism running wild. " "The company which owns and/or operates a radio station can, as a practical matter, be set up so that not more than one- fifth of its capital stock may be owned or voted by aliens", Colonel Behn testified. "When we come to the attempt in this bill to apply the same rules to holding companies, we arrive at a situation which would be totally impracticable for the International Telephone and Telegraph Corporation and, I believe, for any of the other existing holding companies. As a matter of fact, so far as we have been able to ascertain, less than ten per cent of the 2 3/16/34 outstanding capital stock of the International Teleohone and Telegraph Corporation is owned abroad. A large part of that stock is undoubtedly owned by Americans living abroad. Also I say - so far as we have been able to ascertain - for the reason that no corporation is ever in a position to know who are the real owners of its stock. "All it knows is who are registered as such on its transfer books. And, as you gentlemen know, frequently stock certificates pass from hand to hand for long periods of time without the new owners ever registering themselves as stock¬ holders. Even when an owner becomes a registered owner of stock, there is no machinery in existence at the present time, and there would not be, except at a very high cost in the case of any corporation of substantial size, to determine the nationality of the registered stockholders. The Corporation knows that 'John Smith' residing at No. 100 Central Park West, New York, is the registered owner of 100 shares of its stock. Presumably John Smith is an American citizen. He can easily be a citizen of another country. "Moreover, whatever may be the nationality of its stock¬ holders today, a part of its stock may be acquired by foreigners tomorrow or next week or next year. But the test proposed is not a test based on fact, but one based on possibility. If more than twenty per cent of the stock may be owned or voted by foreigners, it becomes the duty of the Commission to cancel the radio license granted to any subsidiary of theCorooration. Far greater thought and care must therefore go into the preparation of a section cover ing this point. " "The sentiment in favor of this alien section is strong¬ er than it was a year ago", Senator Dill warned. "It is the con¬ tention of our Army and Navy officers that they don't want foreigners to be in a position to observe v;hat American radio stations are doing. " "I am not sure that is the considered opinion of the Army and Navy", Colonel Behn replied. "We are accordingly in complete accord with what was said by Mr. Gifford, President of the American Telephone and Tele¬ graph Comoany, with regard to the features of this bill which are new and untried in their application to communications", Mr. Behn said in his opening statement. "While Mr. Gifford in commenting o specific sections of the Bill spoke only from the standpoint of hi company and the telephone business, the International Telephone an Telegraph Corporation desires to state that the sections of the Bill specifically commented on by Mr. Gifford would produce equally chaotic results in their application to the telegraph, cable and radio-telegraph business. "We suggest, moreover, that as the plan is to set up a new regulatory commission with a specific mandate to make a full and complete study of what additional legislation may be required in the public interest and to recommend the enactment of such 3 ft \ r. r \ "-f ..'v-.r-.i;: t SI ij 43-7$ i | / ,r «T : ; .. ■ : f ' f" ' n;- ;■ . v ' 'i - " ■■ ■ , ■ 3(0 C $e ' to 8*£9flt© I ■ - - is r ■ f'Q ' C ' cf; ■ \ . , ’■ . it ", , .. . .. ■ .e/ * . ' : : .. .. .. . .- ' . ’ ... . ! -•<' "/ ‘ ;*■ ? 1 * ' ' ; * • .£•< v— >. . • 1 , ■ • „ t, :. . •• : ... ~j -f* v. - • * ■: -f ;• -f • 1 - \ r-' • • i' : ‘ •• ; : * - ■ . . . ’ ' ■ : ' ■ ' , . ■ . ' ■ ' % ' . : b ; d .vri ■ ■ ' ' ■ « ■ ■ . . . Pit ■ •: ' . ' ' >{-■ s ; ■ X?* , . •' ; . , : ■ - : .-mm; ■ ■' ' 7 7 7 ' . ■ 5. -..ivy ; ■ V : C: - v: .'."V * ■ v ..o* "I ‘ l ■ - ; - ' i \ ; \ v.. . . .... i t '■ i ■; ' 1 0 '' ,. tQ' ' . ; • . . ' idi 1c ' . v :’=-d •- ■luivri.r I S'XBO .bilB 1 ■ talc • " i •' • ■ ■; IS . ' C "... . ' .. f.ul li. :. ’ 'r o' 1 ' . i. J h ■ • •. j"*, - ‘ ■ • ■ :* ■' ; 1.-. .. - j .: .: ■ . :-J i0 -it? . . : 1 (,r:V(V ... , .. . . ■ . . . ' J/q-vb ojpW ; •' • . ' \ , , t, .;. ,. ;.;vj rift*. .... .... . ; ; : ; . , .. . • . i ' ■ ■ : r< ' ■ ■ : ■ . .b : !f . . . ■ it . : •• : •• ■ ; .... . . • ■ . - ' ... . ■ ■; ' £ 3 , . f • ; J i . - i ■ ■ : ■■ •; :r“ r £ i •. ■ :lC v • O ' : '. ' ii V ' XCflJ^ S iLo it. 3/16/34 additional legislation at the next session of Congress, it is peculiarly appropriate that the Bill should limit itself at the present time to the transfer to the new commission of existing regulatory powers and not attempt to do either a half-way or what may turn out to be a destructive job in advance of such careful, orderly study being made. "The Bill does not purport on its face to be emergency legislation. The message of the President made no reference to anything in the nature of a national emergency existing in this field and we believe it would be difficult to sustain the claim that such an emergency does exist in this field as would demand the immediate enactment of additional regulatory provisions in advance of the study and report for which the Bill provides." In defense of the Senate bill, and in answer to the charges that it had gone beyond what President Roosevelt had asked for in his message, Senator Dill said that the President had seen the bill before writing the message. The Washington Senator added that he didn't want to appear to be quoting the President but intimated that the bill, including the features which had been so severely criticized, had the President's approval and that it was the Committee's interpretation of what the President wanted. The Senator told Colonel Behn that the provision of foreign owner shio was one in which the President was interested. F. D. McKinnon, Chairman of the Independent Telephone Companies said this organization had reached the conclusion that there was no need for new regulatory provisions to be enacted at this time. Mr. McKinnon testified that there were 6,000 compan¬ ies not owned by the American Telephone and Telegraph Co. , and that they served 4,500,000 telephones. One of the witnesses, F. Clardy remarked that he wasn't in favor of a certain provision as it was interpretated by Mr. Gifford, to which Senator Dill replied tartly, "If all the pro¬ visions were interpreted as Gifford interpreted them, nobody would be in favor of them. *' Capt. S. C. Hooper, Chief of Naval Communications, opposed the provisions allowing foreign directors* He said that the RCA had revised its organization so that it had no foreign directors and he didn't see why the I.T. & T. could not do it. Frank B. Powers, President of the Commercial Telegraphers' Association of America, said that the companies had kept their rates up to war-time levels without increasing the pay of the operators. He complained that the A. T. & T. engaged in the tele¬ graph business through the use of teletype machines and if there had been a Commission to regulate them, they would not have been allowed to do this. Rev. John B. Harney, Superior General of the Paulist Fathers, Station WLWL, in New York, advocated that several 4 3/16/34 frequencies be assigned, for the exclusive use of religious and educational institutions. Among other witnesses heard were Andrew R. McDonald, of the Public Service Commission of Wisconsin, John Benton, Solicitor of the National Association of Public Utilities, and E. H. Nockels, American Federation of Labor. The hearings closed Thursday morning and it is expected that the bill will be further considered by theCommittee in executive session early this week. X X X X X X X SARNOFF FURTHER URGES SINGLE UNIFIED SYSTEM While it was known that David Sarnoff, of the Radio Corporation, had discussed "Communications Control in War", at the Army Industrial College, it was only revealed at the Senate Communications hearing that subsequently at the request of Secretary Roper he wrote to the commerce head a. letter concerning the communications problem of the United States. He put both the address and the letter in the Committee record on Wednesday last . The conclusions Mr. Sarnoff stated in his address before the college were: 1. The fund of information collected by Army and Navy author ities on a matter of such high importance to the national defense and to the economic stability of one of the nation’s largest industries demonstrates the need for consideration by our Govern¬ ment of the establishment of a definite American communications policy. 2. A change in conditions is urgently required in the domestic communications field, where great waste results from duplication and intensive sales effort. 3. A change is also imperative in the field of international communications, where competition is equally intense on this side, and therefore American companies are not on a parity with foreign monopolies in negotiations affecting communications rates and services. 4. Existing conditions make difficult the formation of a satisfactory plan for coordination and prompt and efficient transfer of our communications facilities from a peace to war basis . As a solution of these problems he suggested: 5 A IS c . itt ■ . ' •• ■' . •: P • .. *•* / :.- . : : l ■ i ■ :j '"A i. •' -r - • • y.-> ■ ■ , •v ••• $ ■. < ; min . p'i , linl'T'i : " 1 i ; . : : : . ■ ; . ; : " f timio* ' e V! ’■ ■ f:- ' 3/16/34 1. Voice communication "by telephone be maintained as a separate unified system, using wires, cables or radio. 2. Internal and external communication of record be merged into a unified system, using wires, cables or radio. 3. A single governmental agency should be established, with sufficient pov/er to regulate American communication companies in the public interest. In his letter to Secretary Roper, Mr. Sarnoff said he stood on these suggestions, and then discussed communications plans that had been suggested, and said all the advantages contemplated in various proposals could be secured by a plan which would consolidate all telegraphic communications, both wire and wireless, domestic and foreign, into a single, complete and comprehensive organization* "This plan is financially and economically sound", he declared. "It incorporates the basic principles of a truly Ameri¬ can communications policy. Under adequate government regulation of rates and services, it would assure to American business - domestic and foreign - the best and cheapest telegraphic service in the world. "It would guarantee for that service the limitless pos¬ sibilities of radio. "It would create, for the purpose of national defense, a. complete communications unit that would require no regrouping or reorganizing, should a national emergency arise. "It should, in the near future, provide direct inter¬ national telegraphic communication for inland cities of the Unit 1 States, even as the present unified telephone system of wire and wireless makes possible direct telephonic communication between all parts of the United States and the rest of the world. It would end wasteful competition, stabilize an essential industry, extend its services to sections of our country now without tele¬ graphic facilities, lower rates and make secure America's inde¬ pendent position in the field of world communications. "No partial consolidation or divided set-up could secure such results, "This recommendation f or a consolidation in the tele¬ graphic field merely seeks to provide for the telegraph-using public the same privileges which the law now gives to the users of telephone services by permitting telephone companies to consoli¬ date and to utilize for their services wires, cables andwireless. Without that permission the presenthigh state of efficiency and world-wide telephonic service could never have been attained. " X X X X X X 6 ;<* 3/16/34 STORMY TIME BELIEVED AHEAD FOR A. T. & T. Apparently the Administration has it on the books to heckle the American Telephone and Telegraph Company one way or another. This was indicated by the attitude of Senator C. C. Dill, Chairman of the Interstate Commerce Committee, when Walter S Gifford, head of the A. T. & T. voiced his objections to the Senate Communications Commission Bill. Senator Dill, who appeared to get warmer and warmer under the collar about the character of Mr. Gifford’s testimony, and probably because his bill had been so generally disapproved by witnesses appearing before the Com¬ mittee, with a considerable show of agitation the Washington Senator two days later proposed an investigation of the financial set-up of A. T. & T. and its 25 operating subsidiaries. Almost at the same time a notice was issued setting Monday, April 2nd, as thedate of a public hearing for the revision of the wire communication industry code. There were those who saw in this a threat that if the A. T. & T. didn't meet General Hugh Johnson's Code wishes, that the Administration might crack down by strongly supporting the Dill resolution for an investiga¬ tion of the telephone company. There were those who believed that Dill would, if he could, carry through the A.T.&T. investigation threat regardless. "Dill is up for re-election next Fall", said one observer, "and it is hardly possible that he would overlook the red-fire advantages pitchforking the A. T. & T. would give him in the campaign. " It seems hardly probably that Senator Dill would have proposed such an investigation without first discussing it with President Roosevelt. Dill said he would like, if possible, to have Ferdinand Pecora, recently in charge of the stock market investigation, con¬ duct the inquiry. "It is necessary to investigate all the ramifications of the telephone business", the Washington Senator said. "Here is an organization that never has been investigated, but has been allowed to form a monopoly without supervision." "While the service of theA. T. & T. has been very good, there has been a feeling that the wire line charges connecting the broadcasting stations have been too high", a broadcaster said. "Therefore while we are very friendly with the A. T. & T. , I don’t believe any tears would be shed by us if they are investigated because we'd like to know more about the basis of the long-line charges. " XXXXXXXXXX 7 3/16/34 RADIO WIRE COMPANIES RETORT SHARPLY TO MURPHY GROUP There was a prompt reply to the charges made by Col. G. M.-P. Murphy, on behalf of the Radio and Cable Users’ Protect¬ ive Committee to the Senate Interstate Commerce Committee that American radio and cable companies comprise a monopolistic group and forced a rate boost from 60 to 100 percent. This came from J. C. Willever, First Vice-President of the Western Union, speak¬ ing also in behalf of the All America Cables, the Commercial Cable Company, the Mackay Radio & Telegraph Company, and R.C.A. Communications, Inc. "We wish to make the point that Mr. Murphy represents a very small but vdciferous number of stockbrokers, arbitragers and dealers in foreign exchange, who are here concerned solely in the perpetuation of the grossly discriminatory service secured by them to the detriment of the public at large, who, under the laws of this country, are entitled to equal service with them at the same rates”, Mr. Willever told the Senators. "Mr. Murphy represents 51 concerns located in the finan¬ cial district of New York City. These 51 compare with 27,000 regular cable and radio users in New York City alone. "The concerns which Mr. Murphy represents are engaged in international speculative transactions in stocks, commodities, and international exchange, and they require for their particular purposes not merely priority service but most extraordinary handl¬ ing throughout and almost instantaneous flashing between sender and addressee in order to beat market changes. "Because no other rate was provided except the excessive triple rate, the American communication companies in responding to the demand for this extraordinary service, provided at the ordinary rate the best possible service with ordinary facilities. This ‘best* was not good enough, and the small group of users represented by Mr. Murphy, took advantage of the keen competition between the British, French and American companies and of the great need of these companies for revenue at any price, to coerce the communication companies into the installation of special and expensive private wires, telephones, and teletypewriter equipment, solely for the purpose of handling this limited but exacting class of traffic. They demanded the adoption of one special short cut after another until now messages are passed between stockbrokers in New York City and stockbrokers in London, Paris and Amsterdam in less than a minute. Speculative purchase or sale orders are given, executive abroad, and the results of the deal telegraphed back in two minutes or even less. "There is no communication service which approximates this performance anywhere in the world and the exaction of it at the ordinary rate through the stress of cut-throat competition con¬ stitutes as clear a case of racketeering as any other. 8 • Ji i r 0T3H ' • 7 : ' .. Gf ilt O ' *'f • P ' V ■- ** ‘ 1 *7> 7 XiT , ' . 7-- 7 ' : . ... .V yl : ... .: ■ - . . I ■ - ■ f i ■ j ; ' . 7" . ' iiYi ., ^ ' .V 7 £ . ~ . li ; ... ■ : -• t o. ' 8 ■ - - - v . • ■' T- ■ * . ■ ; : - • ; V 7 , ■' v . I ; '. 7 Tv . ?-•>. ■ .7 7- •■■•V; ■ i : T '.-'r'T 00.... ... ..... . a . t#i n : t ' " ■ S8 ' if - i •••$ ' ' 1 ■ 7.7 i T--7 yni it ..... . • ,i - t7 • 77- - . ■ * 7i • < ;• i '. . . ,■■■'■ g H 0 ,? ■ 0 ' 7 0 \ :. I ’O ;v * V T.c- o: ... .. '=v_ Tc S:* 1 .' r : o . . - - . - ' • ■ - • w ' . ' ;.i ; . O ' : ., ? , • ; i 77 • rxJB : : • t *: - : f \ . -T • : 6 ,0.' ‘‘ ; O ' ' ■ " * r ' .■ ■ o - -. .. , ■; : : o. " ' ’ ■ 1 .. v 7. ..: ■ T-O 0 ; , o . : i ?. : ■ \ f ■:. ■ : O' 1 , • ■: O ' • . . ..: ; <■ '. i ; • -'O; ; ...i . • to ■ ..o ;.i:V .7 . . ox -.2 Oot7-; ;o7 770' j 1 ' : 0 ■r ."*. : • o ■; o. ....■; 7 .• oo • • • ' ' : • : O -- i ;; --. 7. i ft . O . ;■ 'i . : .• ... . ; ■..'. . ?' ■: T. i .. - ■ . ' ' ■ ■ ■ ■ - ■ 7 . , " '• . ' • v V V •*. t> •T i 7 ■ r .....; - . . 7.. ■ >&*■ . 777:7 O . V ro.; ■■■ \ ■ T. i. . V , S' » i Ax 'j\* l 7 1 5> ^ O •' o.* fit ;v-;.. r- ; ■ ."7 ■ o ■ < .t n X . : ” ^ ; ; • 4 . - o ! •. TO XT . ’ To r , .••■■Tot '7T .o r : ■ T' -'■•t' .., . . , ;ir . : ,• O f ■ • O ■" :. • .7 ' * 7 . 7 •••'; o 3/16/34 "Since this service is international and highly com¬ petitive and is participated in by the nationals of other countries, notably Great Britain, France and Holland, correction of the bauses and discontinuance of discrimination against the great bulk of cable and radio users - which discrimination had long been a matter of deep concern to American communication com¬ panies - obviously could not be brought about without the concur¬ rence of all communication agencies involved. It is only in this sense that there was any discussion with foreign companies and there is absolutely no basis for Mr. Murphy's statement that the consent of the British Post Office had to be secured. No foreign Government has ever attempted to fix charges applicable in the United States. American companies can do business in foreign countries only under licenses issued by the Governments of such countries and they, of course, do fix the charges made there. "There is no basis for Mr. Murphy's intimation that messages paid for at the ordinary rate are held up in order to compel the use of the more expensive preferential service." C. 0. Pancake, of New York, head of the Communications Division of the Guaranty Trust Company, submitted to the Senate Foreign Relations Committee, on behalf of the Protective Com¬ mittee, a memorandum contending that the January 1 increase in certain cable rates was inaugurated with the Madrid convention of 1932 as a "pretext." The memorandum urged postponement of ratification of the treaty "until a determination can be had as to the rights of the companies to impose such increased rates and artificially to slow up ordinary traffic, " XXXXXXXX SHEPARD POURS MONEY INTO YANKEE NETWORK NEWS SERVICE The following information has been received as to the situation in Boston where John Shepard III is making a spectacular fight in his effort to establish the Yankee Network News Service supplying news to radio stations which refuse to be bound by the recent agreement with the press associations: "Shepard has 27 men on the payroll, as of last week. Twelve of these are outside correspondents paid space rates. The others are on regular assignments at police headquarters day and night, city hall, State House, waterfront, three court houses and several rewrite men at the studio. The hours are rather peculiar for the first broadcast goes on the air at 7 A.M. That's a lot earlier than any P.M. paper hits the street so the boys must get their news in early. "I understand from sources which are reliable that it is costing about $2,500 a week and so far they have sold time before, during and after the news which runs something like $1,850 a week. That's not too bad. 9 <:\Qi fi - fi< ' / s:i* ; f a-. . . /A t v ; x 1. .1 J ' r iX ‘ Ax ■ XV : • ... X 0 • ' ; x ;■ kx \ J •••• v ; ' AlX : iOK i ft ' -XXXAV . ■ ■■ x.i Av.- AxAxx x : c . ..• ; '."V - vx:..xx • O. . x. x X. A j. , • j ■ ■ ; : Ax x o - . 'A ' xxxx x *-i ; A ' ■■ - ..A » • • • . - - •• •■’■ • . . . ■ - ~ ■ 1 '• 1 '■■■■ •' ■ -• »* k , - ! ' l ; iC: ; " X ;.i IS x. i i ... , • ■ :■ XjAx ' ..{• ' r :.“'T X ' . ; . ' .;X: ifi T-v A : x oc ■- . xi .xx x : '>vx f r:-o ; y j ■; ,v kx-xyox ;;'ixv xxx A; * x'x li :■ axa • A y"; . . rA X 1 .. ' " ;.:K' - xA'xxa .ax : -x a xx - , CA x.axa :.t$ kp cj ; V . 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A fi VJ • :: ■ • ; : j Vr v '°''A : ; : .X.;.:. X «.;1 ’Ho ; X XX"'X o f; j; .x;i k.:' AxA '-X xJ i T 1 /XXXXX:'::;' .x.xxA .. XX. XX .x.xixxA. Ai rli'Ax | * " f-p: ;-:; :Xxx ( ■ .T-;:r ; ; Vx: x.; . ' - X' OA ”'i iAxA;X --y X..':.- ' . X.. f ■ ; A AA- f xxxx • X ":' X j ■ . X: it? j x ■ ■ ■, -: ■ ,X/x -x q' ■' ; ''k' ■X'.A'Xifq.xA X:AX- 'Ai X. ;j XXx X/Al? x ; ; ■ ■ ) A'i AX ;xx xx-. ■ '■ - : : ' 1 ! X ■-.X.-X'.xf C!,X X - X X , ■ X') :X • X i ■ '■'X '-‘xxcxi XX ! -i x unAx A • , . x,A '■ j : ^ i : : •• ••’••'fi. !ix X . ;X.XX'X j f X .'(• X; . A XV x.' A .A A xx XXA- x X X.x ; ■ . Xx ■ X,A: Ax : ‘ ■ ‘X v: ,W -i . .k'., kk'i • V • • : .. J.'j , * f i A . . . . . . ■ a J: x v x: ■ :: t xX ;; •XT?; it. ; ' x A.A.xX . xxA XV x. k/.t x xxx ■ Ui x/xxx- i JtU .vJ O.X ' V;x.: '■■■■. . xA ''XX'. X' txiy\ X' ■ ;> /. :LX '.X X X X. X X X XX X O . X Xu Xx XX'; f X" C X .. A ' ; r \ « . . . * ■ . . ■ . V. ... X . . ^ = • xx.!- .;.Xr-x * X : •• •' 0 '.X 3/16/34 ’’The papers have been scooped by several hours on several important items in the past by this radio system. You see it takes much longer to set type, etc. than it does to oper a mike and put it on the air. ’’Protests are flowing in to all papers. The Boston Globe has received over 2000 (they broadcast through WEEI) , and I understand that WEEI is going to start some sort of a news broad¬ cast. Just how or when has not been decided. WEEI is being forced into it by listeners and advertisers. The Boston Herald- Traveler has received about 400 letters and the American (Hearst) over 1500. Right now, because none of the papers are listing the time of the Yankee Net news nor Lowell Thomas, Carter, Hill, Kaltenborn or the others, the Yankee Net is telling listeners to write in that the programs are not listed correctly. The Yankee Network also says at the start of the broadcast that ’this new s has been gathered by the Yankee Network news service and reproduction in whole or in part is forbidden to newspapers unless full credit is given the Yankee Network news service.’ That’s a smile. "Shepard insists that he is going to broadcast news and right now is doing a pretty good job. The publishers feel that it will die, but you can’t make Shepard believe it as long as someone pays for it. " XXXXXXXXX NATIONAL NETWORK ADVERTISING CONTINUES TO RISE Broadcast advertising during the first month of the current year showed slight gains over December, 1933 volume. Total expenditures for time on the part of advertisers during the month amounted to $6,165,011.00, a gain of two tenths of one per cent over the previous month. National network advertising continued its remarkable rise of recent months. January network revenues amounted to $3,759,995.00, having increased 1.7$ over the December figure. Network revenues for the current month were 34.0$ above those of January, 1933. It is also of interest to note that January na¬ tional network revenues were but 5.6$ below those of January, 1932. which in turn was the third highest month in the history of natio- al network advertising. Individual station advertising decreased .9$ as com¬ pared with December, and amounted to $2,351,438.00, The January individual station volume was 4.5$ under that of November, the high month of the current season. The decline in individual sta¬ tion revenues was due almost entirely to the normal season down¬ swing in retail advertising. Local advertising for the month decreased 10.7$ as compared with December. Retail advertising declined 13.4$ in spite of the fact that advertising by automobile dealers considerably more than doubled as compared with the previous month. Department and general store radio advertising was approximately 50.0 $ as high as in December, X X X X X X - 10 - 3/16/34 BUSINESS LETTER NOTES Among the out-of-town unofficial observers at the Communications Commission hearings in the Senate were M. H. Aylesworth, President of the National Broadcasting Company; Col. Manton Davis, General Attorney for RCA; Frank W. Wozencraft, Assistant General Attorney, RCA; William A. Winterbottom, Vice- President and General Manager of R.C.A. Communications, Inc.; ,:Tug'' Wilson, Vice-President, A. T. & T. , Frank Page, Vice- President of the I. T. & T. , and Alfred J. McCosker, President of the National Association of Broadcasters. Richard C. Patterson, Jr., Executive Vice-President of the National Broadcasting Company, announces the inauguration of a complete electrical transcription service for advertisers, effective April 2nd. Former Commissioner W. D. L. Starbuck is still in Washington and reported to be trying to line up something for him self on the new Communications Commission. XXXXXXXXX DECISIONS OF THE FEDERAL RA.DIO COMMISSION Applications Granted (March 16, 1934) WRHM, Minneapolis Broadcasting Corp. , Minneapolis, Minn C.P. to move transmitter locally from near Fridley to Richfield, Minn.; KYW, Westinghouse Electric and Manufacturing Co., Philadel phia, Pa., modification of C.P. to extend completion date from Feb. 27, 1934 to October 27, 1934; KERN , The Bee Bakersfield Broadcasting Co., Bakersfield, Cal., modification of license to change frequency from 1200 kc to 1370 kc. Also, The Associated Press, Portable and Mobile, C.P. and license (Gen. Exp. ) for a period of 15 days from March 19, 1934; frequencies 31100, 34600, 37600, 40600 kc. , .5 watts power; City of Boston, Police Dept., C.P. (Gen. Exp.) 30100, 33100, 35600, 37100, 40100 kc., 500 watts; same same for 5 other portable and mobile applications, except 10 watts; also C.P. 1712 kc. , 500 wass, for police service; City of Piedmont, Cal ♦ , portable and Mobile (10 applications), C.P.s, frequencies 30100, 33100, 37100, 40100 kc. , 5 v/atts; New England Tel, and Tel. Co., near the King' Highway, Provincetown, Mass., C.P. 63000 and 65000 kc. , 15 watts; to determine usefulness of the very high frequencies for radio¬ communication in pt. to pt. tel. service over short distances where wire lines are not available or are impracticable because 11 : • ' 3/10/54 of, excessive cost; also at Marshfield, Mass., C.P. same as above, except location Marshfield, Mass.; Shepard Broadcasting; Service, Inc., Quincy, Mass., C.P. 61500 kc. , 100 watts, for special high quality telephony; City of Mobile, Ala., C.P. for police service, 2382 kc. , 400 watts; Press Wireless, Inc.: at Little Neck, N.Y. , Hicksville, N. Y. , and New York City, C.P.s Gen. Exp. service, 31600, 35600, 38600, 41000, 86000-400000 kc. , 100 watts; also granted license covering same; WIF, Mackay Radio & Telg. Co., Inc., Sayville, N. Y. , modification of license to change serial No. of Transmitter; The Penna. Railroad Co., Portable and Mobile on R.R. Rolling Stock, two licenses, frequencies 31600, 35600, 38600, 41000 kc., 5 watts; WPGC , State of New York, South Schenectady, N. Y. , modification of license to change frequency from 1534 to 1658 kc., and change power from 1 KW day, 500 watts night, to 5 KW day, 1 KW night; KNRA, National Broadcasting Co. , Inc. , aboard Schooner "Seth Parker", license (3rd class private ship) to add frequencies 12345, 8230 and 6160 kc.; Action On Examiner* s Reports WMCA, Knickerbocker Broadcasting Co. , New York City, dismissed application for special authorization to use 500 watts additional power experimentally, sustaining Examiner George H. Hill; W SYR . Sentral New York Broadcasting Corooration, Syracuse, N. Y. , denied application for C.P. to increase power from 250 to 500 watts and to operate unlimited time on 570 kc. Miscellaneous KLCN, Chas. Leo Lintzenich, Blytheville, Ark., regular renewal license dated from March 10th granted; station has now installed satisfactory equipment; Western Penna. Broadcasting Co. , C.P. 800 kc., 250 watts, daytime hours, heretofore set for hearing was dismissed at request of applicants Ratifications Action taken March 12; KWCR, Cedar Rapids Broadcast Co. , Cedar Rapids, la., granted special temporary authority to operate on 1430 kc. , 250 watts, for a period ending at commencement of program tests, but not later than July 1.; WLEQ, Star and Crescent Boat Co., San Diego, Cal., granted 60 day authority to operate aboard vessel "Cuyaraaca," in accordance with previous license; Action taken March 15: WGST , Georgia School of Tech. , Atlanta, Ga. , granted special temporary authority to operate with reduced daytime power of 500 watts for period of 10 days; Action taken March 14: WJCR, Radiomarine Corp. of America, New York, granted 60 day auth. to operate 200 watt transmitter frequency range 313 to 500 kc. , aboard vessel "Felix Taussig"; WKBV, William 0. Knox, d/b as Knox Battery & Electric Co., Richmond, Ind. , granted special authority temp, to operate specified hours March 16 and March 17. xxxxxxxx 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. / CONFIDE N T I A L — Not for Publication i i ■ : L£ \[ jl Pu MAR 21 1S34 ' L M ' j | *5’ £i j 1 1 1 I jg, :-! ; r f INDEX TO ISSUE OF MARCH 20, 1934. Confirms President’s Interest In Alien Stock Limitations . 2 Increased World Sales Of American Radio Apparatus . 3 Chain Rumors Anew With Storer WMCA Head . 4 Copeland Bill Contains Discriminating Radio Clause . 5 Boston Next For Hearst? . . . 6 Rayburn Communications Commission Bill Hearings Soon.. . 7 Claims The Yankee Network Lifts Its Foreign News From Spain.... 7 Code Authorities To Determine Size Of Studio Audiences Radio Voting Device Tryout News To Washingtonians “Via RCA” . 9 British Radio Chief Answers Critics . 10 Repeat Administration Censorship Charges..... . 10 Business Letter Notes . 11 Will Ask Clear Channels For National Air University . 12 Powerful Station For New Zealand . 12 /i 3 f CJ Jl No. 708 co co March 20, 1934. CONFIRMS PRESIDENT'S INTEREST IN ALIEN STOCK LIMITATIONS The White House let it be known that President Roosevelt is against any expansion of foreign influence in our communica¬ tions systems. It is evident, therefore, as intimated by Senator Dill, that the President is behind the alien restriction section in the Senate bill. This means a strong fight will be made for its retention. The section provides that no officer or more than one-fifth of the Directors shall be aliens or that more than one- fifth of the capital stock may be owned by aliens. Capt. S. C, Hooper, speaking for the Navy, reminded the Senate Committee that the Radio Act of 1927 prohibits the hold ing of a radio license of which any Director is an alien. "The present Senate bill permits the holding of such license by an operating corporation of which no more than one- fifth of the directors are aliens", Captain Hooper said. "This provision will slacken U. S. control of the radio-telegraph system of the United States and will permit foreign influence to gain a straonger foothold within it." To remedy this, Captain Hooper suggested an amendment which would prevent any officer or director from being an alien. When Col. Sosthenes Behn, President of the International Telephone and Telegraph Corporation testified that it would be entirely impracticable for such a holding company as his to abide by the anti-alien section of the Senate bill. He said, as a matter of fact, that less than 10 percent of the outstanding capital stock of the International Telephone and Telegraph Corpora tion is owned abroad. Colonel Behn maintained that no corporation is ever in a position to know who the real owners of the stock are. All it knows, he contended, is who are registered on the transfer books. "Even when an owner becomes a registered owner of stock" Colonel Behn concluded, "there is no machinery at the present time and there would not be, except at a very high cost in the case of any corporation of substantial size, to determine the nationality of the registered stockholders." Emphasizing the importance of a unified communications system in National Defense, Captain Hooper said to the Senators: "One of the most potent factors which will operate either for or against our success in any future war is our vast system of internal and external wire, cable, telephone and radio communications over which this Commission is now being placed in 2 3/20/34 control. While the demands of national defense in time of peace affect our communications lightly, nevertheless, a firm founda¬ tion must be built within our communication companies on which our wartime communication structure may be placed swiftly and safely. The transfer of our commercial organizations from a peace to war basis cannot be accomplished in a month or even a year unless the groundwork is carefully laid. The Communications Act of 1934 should recognize this fact.* * * * * "The Navy is interested in many questions which involve the set-up of our communications, the manufacture and development of new material, inventions peculiarly adaptable for use in naval communications, the perfection of wartime communication plans and the training of Reserve communication personnel, some of the details of which must not be made public and which are of necessity intimately related to questions under the jurisdiction of the Commission. In many cases it will be necessary for the Navy Department to divulge information to the members of the Com¬ mission which, in the public interests, must be kept secret. For these reasons, it is recommended that in Section 4 the follow¬ ing words be inserted after the word ’interested1: ’except that the Commission is authorized to withhold publication of records or proceedings containing secret information when such publication would be prejudicial to the requirements of national defense. ’ " XXXXXXXX INCREASED WORLD SALES OF AMERICAN RADIO APPARATUS Exports of radio apparatus from the United States during 1933 were valued at $16,125,719 compared with $13,312,136 for 1932, an increase of $2,813,593, or 21 per cent, according to the Commerce Department. Increased sales during the year were recorded in four of the six export statistical classes. Transmitting sets, tubes, and parts, valued at $743,423, were sold abroad during the year com¬ pared with $663,750 for 1932, statistics show. American radio receiving sets were accorded increased favor in foreign markets during the year, sales abroad totalling $9,323,535 compared with $7,321,849 for 1932. Radio receiving tubes were exported from the United States during the year to a value of $2,623,261 against $2,012,656 for the preceding year, while foreign sales of receiving set com¬ ponents amounted to $2,783,730 against $2,517,287. American loud speakers experienced a lessened demand in foreign markets during 1933, sales totalling $338,055 compared with $455,840, while foreign shipments of other components totalled $313,725 against $340,754 during the preceding year. 3 -• & ■ . ' , ' y . 0! •' ] - It ~ ! • ■ •: v ... . ; •• • •••' , : • : ; -y V V . ; • i- yc- - . / • . . . i . ' • . • - B 9 ■ $3* '$ ) i it v ; : ; t l - H f ' ' & Hi fty t ■ ,1 i Sw 1 ‘ ‘ . ; ■■ y : . : l \ pp 3? . : : ; y- Id • '■ ■■■ 2 $ ^ ! \ ’■ 7 . • > ■ • . , fV| y . ; 1 • ? fj '' ? •" f ■■■: : : • t>li ! ; \ : - : y ; y y. : * Q iHf ' ■ -n -v; yy i -f:‘ : ■ ‘ » ' ' ? '.(S,y 10 y'.' KyU 3/20/34 Sixty-seven countries are shown by the records of the Commerce Department to have purchased more American radio apparatus during 1933 than in the preceding year, while forty-one countries are shown to have purchased less American equipment. Notable increases in sales during the year were recorded in the case of Belgium, France, Spain, Mexico, Argentina, Brazil, and the Union of South Africa, according to export statistics. Exports to Belgium in 1933 were valued at .*$941,670 com¬ pared with $862,199 during 1932. Shipments to France during the year totalled $1,557,391 against $888,944. Sales to Spain registered a notable increase during the year, being valued at $1,857,746 compared with $1,014., 354 for 1932. Despite the intervention of many obstacles including tariffs, quote systems, exchange restrictions, and other forms of trade restriction, American exporters of radio apparatus have been able to maintain an important trade with the countries of the world, especially those of Europe. XXXXXXXX CHAIN RUMORS ANEW WITH STORER WMCA HEAD With George B. Storer, of Detroit, becoming president and majority stockholder of the Federal Broadcasting Company operating WMCA , New York, rumors flew thick and fast to the effect that this was the beginning of the new Federal network. John T. Adams has been elected Vice-President. The new arrangement culminated negotiations which began last December with the objective of establishing a new chain with WMCA as the New York key. The proposition under which Mr. Storer was enabled to purchase stock in Federal, however, developed only a fortnight ago. It was effected through issuance of additional stock with original Federal stockholders having the option to buy in the new issue in equal amounts. Mr. Storer, however, procured enough of the stock to win election to the presidency. Mr. Storer is the principal owner of CKLW, Detroit- Windsor, WSPD, Toledo, and WvvVA, Wheeling. XXXXXXXX 4 3/20/34 COPELAND BILL CONTAINS DISCRIMINATING RADIO CLAUSE Despite the protest of Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broad¬ casters the following clause appears in the "dealer section" of the Copeland food and drugs bill which was favorably reported to the Senate last week: "No retail dealer shall be prosecuted under this section for the dissemination, other than by radio broadcast, of any advertisement offering for sale at his place of business any pro¬ duct which is not distributed or sold in interstate commerce." Senator Copeland said there v/as no attempt to discrimi¬ nate against the radio and that there is no legitimate article which cannot be advertised over the air in the same fashion that it is advertised in periodicals. He said the section to which the broadcasters object was incorporated to protect small newspapers carrying advertising of local manufacturers who are engaged purely in intrastate business while the newspaper itself might have inter¬ state circulation. The bill prohibits: "The dissemination of any false advertisement by radio broadcast, United States mails, or in interstate commerce for the purpose of inducing, directly or indirectly, the purchase of food, drugs, or cosmetics. "The dissemination of a false advertisement by any means for the purpose of inducing, directly or indirectly, the purchase of food, drugs, or cosmetics in interstate commerce." "No person acting in the capacity of publisher, advertis¬ ing agency, or radio broadcast licensee shall be deemed in viola¬ tion of paragraphs (b) or (c) of this section (Section 17) by reason of the dissemination of any false advertisement. Any such person who, on reasonable request of an officer or employee duly designated by the Secretary, willfully refuses to furnish the name and post-office address of the person who caused him to dis¬ seminate such advertisement shall be guilty of a misdemeanor and shall on conviction thereof be subject to the penalties prescribed in paragraph (b) of this section (Section 17). "No publisher, radio broadcast licensee, or other agency or medium for the dissemination of advertising shall be deemed to have violated the provisions of this section by reason of the dis¬ semination of any false advertisement, but the liability shall rest upon the manufacturer, packer, distributor, or seller who caused the dissemination of such advertisement. Any publisher, radio broadcast licensee, or other agency or medium for the dis¬ semination of advertising who, on reasonable request of an officer or employee duly designated by the Secretary, willfully refuses to furnish the name and post-office address of the person who caused him to disseminate such advertisement shall be guilty of a mis¬ demeanor and shall on conviction thereof be subject to the penalties prescribed in paragraph (b) of this section (Section 17), - 5 - ....... . la , 2 " - : ' ' I j P ) •. / C* d O . :• • :! • ■ !- i : . . :j . ■■ ■ • " : ' ' ■ n.f ftnop L * _ '' ' ... ■ ' vf.f 4; - ■■ '■ ; :V : ■ • ; ■ ■' ■ ’ . . ' • ' ‘ • o ■ •: - ! ■ - ■ ' . ■it-1-: ■" ■ •- ‘ '..t'.i: -Vi. !. - ’ ■ . > : > - ' ' i-S- b-ii ■' ' '--■ if &vH« ■ . ■ ■ ' I- \ ' fli , ' O': i; '.:Q ' ■ • ■ : v < ", >' ; ■ ; • •. ; ; ■ BnimBc EJfc ...... ' 1 :• : .:. ! . • . ■ . r ■' ; V; ■■ 1 TO i ; . WiCB : : ■ ■■ \ t [ t : ■ v ;■ ; i ■ •' V*' ' _ . : . . ■ .■ ; !: 1 V ... '. '■ ■ ,«■ ■ -■ . .' .■ ■ .i a, .i- .... > * 1 '• ■ • . V-r" i i •• - v ' S 2 Li p 0 « f b pt - ... /■’• ■■■ f~- ■•■'•■ \ ■,■■■ ■• ■>)' - p r ....... ■X : .■ . . - .• ' ■ i * . ■ ' -h(:i ... .. .' d'v,.\. • • 1 i , f ■ ; ■ ■ V " j " , , n ■ 'if if ii a ...;v. oJ fr f . ... ' : 'f C* ‘ . . , >..v • : . fx y '• ■ m 1 • rH ' ‘ ' ' a 1 f ' _ . ' ■;> 'I : ; /. j ’ ‘ ■ • t : ; . ■ 3/20/34 "No dealer shall be prosecuted under paragraph (b) of this section (1) for having received in interstate commerce an article and in good faith sold it, unless he refuses to furnish on request of an officer or employee duly designated by the Secretary the name and address of the person from whom he pur¬ chased or received such article and all documents pertaining to the delivery of the article to him, or (2) if he establishes a guaranty or undertaking signed by the person residing in the United States from whom he received in good faith the article of food, drug, or cosmetic, or the advertising copy therefor, to the effect that such person assumes full responsibility for any violation of this act, designating it, which may be incurred by the Introduction of such article into interstate commerce or by the dissemination of such advertising. To afford protection, sue guaranty or undertaking shall contain the name and address of the person furnishing such guaranty or undertaking, and such person shall be amenable to the prosecution and penalties which would attach in due course to the dealer under the provisions of this act. No retail dealer shall be prosecuted under this section for the dissemination, other than by radio broadcast, of any adver¬ tisement offering for sale at his place of business any product which is not distributed or sold in interstate commerce.” Senator Copeland expressed confidence that his bill would become a law before Congress adjourned. X X X X X X X X BOSTON NEXT FOR HEARST? The report that William Randolph Hearst is about ready to step into the New England picture with a broadcasting station in Boston follows closely his new chain reaching from coast-to- coast with the acquisition of KYA, 1000 watts on 1230 kilocycles at San Francisco. In addition to Station KYA, the following are operated and managed by the American Radio News Corporation (Hearst) , of 235 East 45th Street, New York City: WINS, New York; WEAE, Pittsburgh, KYW, Chicago, and WISN, Milwaukee. The Federal Radio Commission has awarded the license and wavelength of Station KTM-KELW at Los Angeles to the Hearst paper there but an appeal has been taken and is still in litiga¬ tion. A decision in Hearst' s favor has just been confirmed by the D. C. Court of Appeals. XXXXXXXX 6 : 77. -‘T- : •777 77 u 7 f ■ 7 7 ■ ■ " • “ - ;: r:| iVi ‘7-S. 7 7. ' v ■ . ' t ' : ' ■■ ■ 7 • ' - . ; " ■ ■ J;i - J 3 : - 4 ■- 4 s 7 ! i H .7; ' • i? i 7 ' % I ; v -V j - ' : '•* ^ '1 . 7. ■ ■ l§ ,] 0 - G;< ; '&■ ' ' 7 71 7 ■ ; ' ,7 t '• s I 7.7,, ■ ■ - j - " - d ■ • . (>;•. ') '‘id * : *5>i Jf • ; . ■■ •• • . ■ 3 ■ . i: . : r en 7 ' -Tv a v.: •• "< ^ : ■ : , : 7 U> ; v : , \}:-i l ; :j 7 r 7 ■ ■ -77 • ■ '7 ■ •• i t • . J 7 . . -- Wt . . ■' ■■ 7 , j .flj 7 • ■: , ;• • - , ; i ■ ' : 7 • - : ; 7 7 '7 ■ 7 ' • 7 7.;. 7, ? V-U ; . v ; 77' . 7 ■=• . ' - 7:' i ' : mi " 7 i i ■ 4 7:; : ; > 7;;. . . ! ; ■ . : • : ' : ■ 7. .7 ' : 7 "v : ; ■ ; .. t . ; , .7 t f WffJ E 7 ■ ■ i ■ •; ; ■ : • ■ • ' ' . 7 ■ • . ; i '77 ' ’ ■ JV, 3/20/34 RAYBURN COMMUNICATIONS COMMISSION BILL HEARINGS SOON It is expected that hearings on the Communications Commission Bill introduced in the House by Representative Rayburn will begin at an early date. Where the Dill Senate Communications Commission Bill met with violent opposition from both the broad¬ casters and the communications people, it is expected that the Rayburn Bill will meet with their unanimous approval. Also, it appears at this writing that the Rayburn Bill will probably be the legislation eventually enacted for the reason that it contains fewer controversial features and simply transfers the Federal Radio Commission and the powers of the Radio Act to the new Communications Commission,- which, in the opinion of many, is all that the President has asked for. X X X X X X X CLAIMS THE YANKEE NETWORK LIFTS ITS FOREIGN NEWS FROM SPAIN It is reported that the Yankee Network News Service for radio stations, sponsored by John Shepard III is getting much of its foreign news via short wave. EAQ,, Madrid, Spain, has a news broadcast in English from 5:15 to 5:30 daily. The YNS gets this. EAQ, is on 30 meters and is said to come into Boston like a local station. There is also a broadcast from a German station early in the morning of news in German, English and French. Also other news broadcasts in foreign languages.- Establishment of a Press-Radio Bureau for the Pacific Coast, acting in cooperation with the Press-Radio Bureau in New York, was started with a preliminary meeting in San Francisco, March 14. The Pacific Coast and the New England territory have been termed the "hot spots" operating against the success of the conciliatory program of the broadcasting and newspaper interests to govern the broadcasting of news* Joseph R. Knowland, publisher of the Oakland Tribune, and a director of the Associated Press, was elected temporary chairman of the Pacific Coast group,- the Editor and Publisher reports. The committee is going ahead in contacting various radio stations to find out the extent of service necessary, and plans are to put the Coast Radio-Press Bureau into operation as soon as physical arrangements can be made* X X X X X X 7 3/20/34 CODE AUTHORITIES TO DETERMINE SIZE OF STUDIO AUDIENCES The Broadcasting Code Authority is preparing to send out, under the supervision of James W. Baldwin, Executive officer, a questionnaire on the question of free admission to broadcast programs. Complaints have been made by moving picture and theatrical people that the radio studio audiences have been mak¬ ing serious inroads on their box office receipts. It has been estimated that the weekly attendance in the radio studios of New York and Chicago aggregates something like 50,000 a week, persons who otherwise might be paying to see a movie. "I believe the Government figures will show that the free attendance at broadcasting studios nightly is much higher than have heretofore been estimated”, an official commented. "It is a question upon which the industry has never been poled and the outcome will be awaited with interest.” X X X X X X X RADIO VOTING DEVICE TRYOUT NEWS TO WASHINGTONIANS No confirmation could be secured that a new device, buttons marked "yes", "present", and "no" attached to a radio set, designed to register the likes and dislikes of a radio audience, was soon to be tried out by the North American Company in Washing¬ ton. An official of the former company told a representative of the Potomac Electric Power Company in Washington that he knew nothing of such an experiment. The "radiovoting" machine is the invention of Dr. Nevil Monroe Hopkins, of New York. If the question were whether a certain program was enjoyed, the listener would press a button on his set marked "yes", or "no". The total would be received through the electric power house, the count being determined by the increase in the current load as the buttons are pressed. "It would take a tremendous number of responses to make a heavy enough load to be appreciable at the power house", a radio engineer said. "Assuming the scheme practicable, it would be quite an undertaking to have these buttons installed on 18,000,000 receiving sets. "The wired wireless people were working on a device within their home receivers which would automatically show which program was being received, whether it was No. 1, No. 2 or No. 3, but I don’t believe this scheme would be feasible in a broadcasting set. " Dr. Hopkins was quoted as saying that a radio set could be equipped with "yes" and "no" buttons for about 25 cents. X X X X X X 0* 8 r< Pj BW • f-SS 5/20/34 "VIA RCA" "Via RCA", Just issued by the Radio Corporation of America is unquestionably one of the most informative and handsom¬ est pieces of advertising literature of the season* A foreword by David Sarnoff, President, concludes: "Radio has swept aside many of the limitations that were inherent in earth-bound communication. It has continually unfolded new methods. Its research laboratories look upward and outward. None can forecast the future of communication so long as the ether wave may yet be harnessed to new tasks. Man is still reaching into mysteries beyond his accustomed sphere, labor¬ ing on a much broader foundation, seeking to push on the sequence of invention, certain that no hope of making communication a faster pace-setter will be overlooked. " A story of the radio communication services developed and conducted by the RCA includes the following chapters: "Place of Communication in Radio Progress"; "Inaugura¬ tion of RCA Service"; "Immediate Advantages from Radio"; "RCA’s Long Island Stations"; "Volume of Radio Traffic"; "Radio Circuits in Operation"; "New Domestic Circuits"; "Customer Contacts". Marine Communication - "The Imperative Service of Radio" is discussed under these headings : "Vacuum Tubes in Marine Radio"; "Radio Apparatus for Ships"; "Radio Direction Finders"; "Medical Service By Radio"; "Radio on Lifeboats"; "Automatic Radio Alarm"; "Land Stations in Marine Service"; "Additional Marine Services"; "Training of Operators. " A chapter is devoted to aircraft radio. Important phases of communication progress are dealt with under these sub¬ heads : "International Broadcasting"; "Facsimile Transmission"; "Multiplex Radio and High Speed Facsimile"; "Automatic Operating Circuits"; "Frequency Control and Monitoring"; Technical advancement of Radio Communication is treated as follows: "Long Waves"; "Short Waves"; "Fading"; "Ultra Short Waves"; "Long Line Frequency Control"; "Future Radio Applications". A chapter is devoted to supervision over research and one on Radio in National Defense. There are twenty-eight attractive half-tone illustra- X X X X X X X - 9 - tions 3/20/34 BRITISH RADIO CHIEF ANSWERS CRITICS Sir John Reith, Director General of the British Broad¬ casting Corporation, met his critics on the Conservative side of the House of Commons with a memorial signed by nearly every member of the broadcasting organization, who expressed '’disgust" at recent newspaper attacks and affirmed their loyalty and gratitude, according to a London cable to the New York Times, "This took the wind out of the sails of several critics, v/ ho had been informed that disciplinary conditions at Broadcasting House were worse than those at the War Office during the World War. "Sir John declared that out of the listener' s annual 10 shillings license fee his organization received only four 4s 6d the remainder going to the government. Later, in the House, the Postmaster General refused to order an inquiry into the corporation’s charter, which he said still had three years to run. Washington took with a pinch of salt the story from London that David Sarnoff and Roxy had attempted to "seize" contro of the British Broadcasting Corporation's charter which terminates in 1936. That either or both might endeavor to acquire an inter¬ est in such a company, if there is to be an opportunity, seemed plausible enough but that they would try to "seize” the franchise seemed a bit wild. Also the combination of Sarnoff and Roxy didn' sound just right as these men have not been noted for being especially close to each other in past dealings. X X X X X X X REPEAT ADMINISTRATION CENSORSHIP CHARGES The Administration's policies on regulation of the com¬ munications industries were attacked in statements issued simul¬ taneously by Senators Dickinson and Schall, They declared an attempt was being made to establish a press censorship by regula¬ tion of the telegraph companies. Senator Dickinson said that the summons to the tele¬ graph companies for a hearing on a code April 2 for their industry was "the fourth attempt of the Roosevelt Administration to censor the press. " "General Johnson, having failed to force censorship into the newspaper code, is now attempting to secure the same result by forcing a censorship on the telegraph companies conveying the news dispatches to the daily newspapers", he added. £ j \us\s ; r n t , • Cl * • - co-’toO ;■! 'V4, 4 •• •* ' r ■ ; -v rt . 's. *•;* :.T '•'* • “f • X ' ■ '/V- . ... :'l ■■■•: ■ -4 - 2 ' 2 / -■ " . . • •’,H .. U , ' ■■ ? • ri ■ 2 ■ : ” %C niiJj i U •• . - 1 c- 1 1 ; : j ' - .f. fe'Tc ■- s'. I ”£r> v>;-i,0'^tr£ ' £ i t. -r :"v ;r}?r?i t .. :'-y- : ' . ■ -£jig :xJ.; - ffi %■$ t ; : ■' j' . Vi .■ »t&§ £ ' 'V X : ^T ft ;v '!■; v. ... ? XX X ? 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H ; ! • .. » ... .• a 3 . .... ' r.'?' ■ ■ ' . /;•: ;• .noi** Jrtcq 'y. . ! ■- ■ 1 ■ -• # 'VS / -■ ■.;. • . ' ... S . , i ; .... ' : ■ ■' : ' . ■ ‘ ' S #w ’’ > . ■ ns: - . ' ... ‘ ■ - ' ■ ■■ . / .. . " " • : . v", i - d . . , • •■■■• ; •• ' • a ■■■■•■ • ' ' . ■ V, - >' .« • . - .. ' o fj V- .i, ., ■ ' . . - *'• ■ ;• r r r- - • *l , t-i- . . -t ■ c ... . V. • . • •' • .is i»*C* »:. . ' • l .. p '■ , . - ; ; -V . • ' . • fe Ki • 3 e ■ ■'i. 0X1 • d Jr. ;;0*id .9*13 3"l<' ■: ‘.j .au u . t . t f •* Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication / Compulsory Religious Program Acceptance Appears Unlikely . 2 Do Not Take Brinkley’s Yacht Broadcast Idea Seriously . .....5 Radio Cases Keep Appeals Court Busy*.....,., . 5 Priest Would Allocate Non-Profit Organizations 25^ Facilities. . .6 Dill Hopes To Report Communications Bill In Two Weeks . 7 South Africa’s Broadcasting Facilities Extended . 8 Radio Commission To Move Quarters For Fifth Time . . . 9 I.R.E.-I. S.R.U. Will Delve Into Technical Re a. lms . 9 Correction . 10 18,000,000 Homes Now Estimated Equipped With Radio Sets . 10 Chicago Civic Broadcast Bureau Organizes . 11 Columbia Issues Broadcasting Bibliography . 12 No. 709 I v 1 . - COMPULSORY RELIGIOUS PROGRAM ACCEPTANCE APPEARS UNLIKELY There seems to be little likelihood of a favorable report by Representative Bland, of Virginia, Chairman of the House Merchant Marine and Radio Committee on the Bill introducted by Representative McFadden, of Pennsylvania which attempts to compel the radio station, or stations, or broadcasting companies to accept all programs offered by "any religious, charitable, or educational company, corporation, association, or society or any other like association or society chartered or licensed under the laws of the United States", where there is controversy or difference of opinion. The only proponents of the Bill were Mr* McFadden and representatives of the Peoples Pulpit Association which is headed by Judge Rutherford. Those who opposed it were M. H. Aylesworth, President of the National Broadcasting Company, Henry A. Bellows, Chairman of the Legislative Committee of the National Broadcasters' Association, Phil Loucks, of the NAB, Henry Caravati, of the National Council of Catholic Men, Dr. Frank C. Goodman, Secretary of Federation of Churches of Christ in America, and Judge E. 0. Sykes, Chairman of the Federal Radio Commission, Mr. Bellows dwelt upon the significance of the fact that outside of the "Witnesses of Jehovah" (Judge Rutherford's followers), the representatives of no other religious sect had appeared during the four days over which the hearing extended, to endorse the bill. Neither Mr. Bellows pointed out, was there endorsement from any charitable or educational association. Mr. Bellows said the Bill was totally unnecessary* Representative McFadden asserted that the networks exercised a degree of censorship not only over advertising but in subjects discussed. He also said that big business owns and con¬ trols the radio. Likewise that a secret pact of international bankers exerted an influence over what was heard on the radio. When Mr. Aylesworth testified, one of the Congressmen asked him if Mr. McFadden would be allowed to speak over the NBC. "Tonight, if he wants to", Mr. Aylesworth replied. Mr. Aylesworth was then asked if it were true that on one occasion Mr. McFadden had not been permitted to spee.k over the NBC. "When was that?" Mr. Aylesworth inquired. "In the Farm and Home Hour", McFadden replied. 2 XnX x.-X.X/ . X.. i.-> xxxx y.m: . c r: i; X kIX X ri x;vD . ■> c--:' ■ ■ / • ■> v ( .r .. t t; , ! X •• , r., • - , . , "i/ 7 : *: . ; ; f ;xx ■ X i .• ' ,T \K? , "■■■ ' '■ ' ■ ■■■ a ; : - i ■ . •! o- ’ : •• ■ : aP ; I X • • i ' : e . : ' ; - — - 1 ' r ... : .. \ AC - ..i. • . ■ /V f V-:-. Jf , V ij ; ‘ 'V A A' ,« .x\i ■' , c :a -. ' - A - i , x . X ?• X 5 X X’ ■ ' "i X '■ "?/ : J "■ V V -v • f -. V , f - • 1 ' . ,1; : i ... .; • >. . ; : : •'*; i V . x . iV i :■ xr' jt-'v.' [ X M -■■I? lx X- :v 1 : • • * 'V;.. } , . . . - . . . * v ' : h a a i A TX : f-3'3 ' • :y$"M i ■ '• ^ • v; s ; : ■ . • "• ^ - li . .'. X : 'r-' ’ ■ ■ l , k'"- a if X ■: . ESOJ/C J i i ^ ,r^O:?'A Ks* StrrtdB r^‘ lii : • ^ ' rG : 1 S'.:' ;■ • '• '.■‘■U f ; .. t . ; r • . i U'l ; ; r- ; -;. J •; ; '<■ :•!; 1 •' ■ "ib h v-0 •’ ■ ‘ .. " - A i). X ■: ” - -.X J-OA-: ' A A j r? t X :<'i 'l r • A'j Ai .>Ki* ilM - A;. A . t V A : ... 3' . • .• ; - - X -A a : ..; n4.iSi f ! " : * it o .: . . .; : •: "pR'} Ra X'irj c i- =■•• X:<.. i/i’ X? -J :i •; . . ..• ■ - ■; ■ v S. AC ' J C ■■■ O ; X C -2 H '• O v. . : V." ':;X : ; :i.n •' X.o .5- ■■ •' .1 • ’ VC .; v/VJv i 1C l A A . ... d J it;?r X- : ks . I a '■ it * *j .1 • i. . -X AC ic ? "I g- it < it , i .-.i ■ :• ; i G:; . -X"..:. . > • : C i • • • ‘ • > '• xi i. • jS.fj r - : : . ; ; a a- . ; : -;:r tAPAA'-'A xv.o . ... y * ... ■ ■ ..... f . : • •••. X ' ' L A‘-A j !} ;■ u aCJ r x iid X > i • : ;'>;X .'If ™ 3/23/34 "What was your subject?" "Taxation" . "Maybe it was because it was felt that the subject did not fit into an Agricultural program - I can think, of no other reason", Mr. Aylesworth answered. Mr. Bellows in response to an inquiry as to the owner¬ ship of Columbia said that the Paley family owned practically all of the stock. "Then no international bankers control this network?" Representative Sirovich, of New York, inquired. "I have never seen any evidence of international bankers controlling Columbia's policy", Bellows replied. "Accordingly you don't think the two big broadcasting systems are dominated by a secret international bankers' alliance?" "I believe that is a myth", was the reply. Mr. Aylesworth when asked if political speeches are charged for said, "Never, excepting during a campaign", and then evoked a laugh from the Congressmen by adding in an undertoke , "Of course we never expect to get paid.." "Has any Nudist Colony ever applied for time over your network?" Representative Wilford, of Iowa asked. "No", Mr. Aylesworth replied and then brought forth another laugh by saying, "It was probably because they couldn't be seen." Mr. Bellows said there was a lot of difference between selection and censorship. He told the Committee that during the past season there had been heard over Columbia - 6 Episcopalian clergymen; 6 Baptists; 5 Methodists; 6 Presbyterians; 5 Lutherans; 3 Unitarians; 13 Jews; 5 Christian Scientists; 1 Mormon, and 20 Catholics. The objection to the (Jehovah's Witnesses) Rutherford sect voiced by both Mr. Aylesworth and Mr. Bellows was that they attacked other religions. Mr. Bellows said as far as he knew there had never been any attack of a religion over Columbia. "If such an attack were ever made", he said, "it would simply mean that the clergyman making it would not find it easy to have our facilities again. "There never has been a Catholic program, for instance, that could not have been listened to by any faith. They have exercised the same tolerance and courtesy towards other faiths as the Jews and the Protestants have to them." 3 v. w v; w n yv:i,v a: ' ‘ i v .VV'-' -j | W VV ."V V * ; ^ "V ''V ■ V vav . : t .inf; Z . : -yy'Vv f - v '1 ivA . v '■ ' ' v - V ; V :VV; ,!■: v ' ' ; ‘A V" i. ' X v vvvv - : v * ys : v:vi • W vvnvc yv-v y : ' , ; ■ - A/-. x y A., v ■•■■■,■ ; • : - , v yv w ; :g - ; . V V.. . VV. ; V, ■ . "' . V.A; : ' V • .VV Vv..' 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V-V\ lU ivv;v.v- ,iv.A , ,v v.| I yd-'-AZ -- VV/ J 1 !? , V . ; VV- • V f» s t v - V ;vj' v v- v: wvij ; -v; : ; y\ , . .viv ;; ,i'v; •••;-“ '.wrv wD ^ iv)- « V ; d ' :■ “V ; . ; V-:- V' ■ - '• >' 'V ; .L- ' *3, ■ v.iv f -V; ■ Vv ' ' i- i.V’iV>.:: V v:v .-V : V- ■ Vh’k&A# ,/i • •_? • . • ■ '"V ;T j '■ r ■ . • V \ ...-1 ;. ; j . - . _ . i Z .' . / ' • t. <.... •• t v : .v vv“.. ,... v v .... v- , ■ ‘ p; : ; . >3 V-vV'O . VVr : .V : ! .Vv^'i? V V'i '■ v 'V . V ' v.- / .V; V iV" . ri; J J IK- / .. ' .■/: V w? .V - .. : . : ' ; 3 • . V V : ' . • - - VV: : i. V.i% V. ...... ' , 'V . : v V V -.V.: <- ' V- } ’V V ' . . ' -V.V . VV ■ 4 ,v- "V ■ V w / ,v : v .- V ii VV -; , ■- lm t ' ■ ih-#® - ■ '■ - m '■■■ ■ ; v: : v vv i*v» .,t| vv - :i :-v: v wvvy- .■ r; " i :v'. ■ .v « v i •'/ ;.• ■. b v J { : i '. ■ ■. v v J , v.4,’V1, , V :'vvvi‘.r / J.v.V .V; S • W ‘.V* V ■- - . . yy .... • y v..v -. ; v- v .v .v- y ;-v .»ff ?v»dt v : ‘ ;. v' V .... V--\ . W. V ... ! ■ ' V- . • ' . u' :V ■ . -Vi •...! .-VV .. :... ’ ■ - ’ ' 1 v , V::iv vvV-:.; :Z A aA-) v; "■ • v.' vv.' ' v v. V' v v v 3/23/34 "We make only one request", Mr. Aylesworth testified. "It is that religious bodies do not attack each other." "Is the statement made by the American Society of Composers true that the network programs are 95$> musical and 5 fjo educational?" Dr. Sirovich asked. "About as true as anything they say", Mr. Aylesworth retorted. After checking with Frank Russell, Vice-President of NBC, and Kenneth Berkeley, Washington manager, Mr. Aylesworth said that he believed 60-40 about the correct proportion. The Congressmen were interested in finding out how much money the networks "were making". Mr. Aylesworth replied that NBC had cleared about 11,300,000 in 1932 but that the profit had dropped to about $400,000 in 1933. He added, however, that the receipts of 1934 were coming up again. Mr. Bellows said the orofits of Columbia for 1933 were approximately $700,000 and for 1932 about the same. Asked if there was room for a third chain, Mr. Aylesworth replied, amid laughter: "Ed Wynn thought so.’" Mr. Bellows said the difference of views on religion was as nothing compared to the difference of views on education. "In religion we have well defined groups", he continued. "In education there are as many ideas as individuals. Yet this Bill says if we put on a person with one educational point of view, we have to put them all on, and it simply can't be done." Mr. Bellows said Columbia had one rule which NBC didn't have - that all political talks should be confined to 15 minutes, "I think that is in the public interest", a Congress¬ man interjected. When the system of selecting the relgious speakers was explained, Representative Edmonds of Pennsylvania asked: "What would you do today if Robert Ingersoll wanted to get on the air?" Mr. Aylesworth and Mr. Bellows both expressed approval of the President's call for a consolidation of communications activities . XXXXXXXX * 4 - v-j.i'i -i .'C.l ' , i- ] ■ yi cio '.Xr.,: • ••.. •.•X-:. i i b. ion o.& u^ibod eitotgi £v*i j ar? • si alf- - V.?-: IOC* py OlTOiSX OBJ v\B v.4 #££ S if«f 3la X X c - ;;9 diB n**3CTq A'YOWt on j.-iriJ .:e-iv SO$3©C7:no0 , X ; X / d vi Vv- t i S .rid '5?..r,.$r;c ? ■•'• c e • ;iX , * • n I ;■: a vn s g .■> •. • s : os J'fJvdA?s , *? ■ 3 *x •■ . ! v Yc '• •• >C'.f:V , X £>r ei/n XuktI dJ\i v .• £ r> i XtA , x . '•: ‘ : nc-x;:;- i xo •• V; ,•£«.$ . v:.- 8 on .a OHM *»:ci J'ioi7c*TCf j1: n; ©da OX *06 itvyoil atf -x. d&iit ou-;: wo;t : • ..i' ni : nx i J4 x n x .: r'ibw asmsa rtgnoO . X bvXXQvd. 44 lows -j vA .ii? .^gnitfan x- vtn ■ v ; , ■ ■■ xx; -;ix ■■•;<■:• ;? 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L ' i :-ta ' x<5W ;vtx xx -a ‘to inx.Txv^ sii.; nx.xV.' :; X x x; v-\ xx, -0 ‘.to x x ■■ ^ i i x v.i x. ■ ;. x r }I , .x . . ■ .1 ; £qxs x .7 ii .x’v f.: x xx .x xl xx xxiCiX 'ii v;b.xcj xx xrov; Olxov4 ;XiX no X '■ ■x;x'x:.;x4o ■ , -x- xo t-iod awollxe .xx bax rfirEcwee £vA • 'd ‘ s.x*: to ■ ; . ■ ’xoo fcc noi.t'^itXXoanoo a xx ■ XX/30 : ’X; ii X X X X X X X X 4 i j l 5/23/34 DO NOT TAKE BRINKLEY'S YACHT BROADCAST IDEA SERIOUSLY Federal radio officials seemed to feel that if Dr. J. ¥ Brinkley, goat gland specialist, whose station was closed by the Mexican government, attempted to broadcast from a 150 foot yacht, he is supposed to have purchased in Miami, that it will be com¬ paratively easy to handle the situation. To begin with, they felt that Brinkley would encounter mechanical difficulties. His aerial, Government engineers, figur ed, couldn't be more than 50 or 75 feet long and not very high up. Besides the bulk of the broadcasting apparatus, it would be difficult for him to generate sufficient power. It was said that large ocean liners' transmitters are only 2000 to 5000 watts power. Even if Brinkley could get up to a thousand or so watts power, it would be feeble compared to the 80,000 he was using in Mexico and would penetrate very far inland. Brinkley's greatest difficulty in the opinion of Washington authorities, would be his ability to secure a broad¬ casting license. In the United States he would have to apply to the Federal Radio Commission and, of course, wouldn't have a chance there. If he succeeded in registering his yacht under a foreign flag, and thus secured a broadcasting permit, it was believed the State Department wo uld have no difficulty in having that country rescind the license. There is only one such case on record. An American chartered a boat on theWest Coast which was used as a Night Club and broadcast advertisements of the night club and other advertising from it from beyond the three mile limit* The boat was registered under Panama but when the State Department complained to the Panamaniam Government, not only the broadcasting license was cancelled but also the ship's charger. X X X X X X RADIO CASES KEEP APPEALS COURT BUSY The District of Columbia Court of Appeals acted in several radio cases during the week. Station WOQ,, Kansas City, whose time was given to KFH, Wichita, was denied a rehearing. Station WLBW, Erie, secured a stay order against the erection of a new station there. A stay order was denied to Stockton, Cal., station against the construction of a station at Modesto, Cal. Also a stay was refused the Portland, Me. Publish¬ ing Company in its effort to stop the erection of a new station in Portland. X X X X X X - 5 - . ! ; f ■■ : ■ ■ • . ;■ ; y ■ \ : ' .• i ■ v . y - i • V.J f - -i ~’.l i ; * y; ;r . . yyy y-ijl;yrtd - y. i / y 1 J v. ; : y ' : ,r't ? s y i 3 iy y ; y , iO ; y ■■lyy Y;i ;{y Id :;x V: y/y i.y ■ >' ■■ ■ s XX -t::. X; ■ 'bUj cy -i t •’?:*» A*i'.n . • ■ . id • , •: ■ ■ > : : j y ,yyy * V * .v z . l; 2 . i y • •' i -vi : : . ; a .y yy v.y y.y . ;.;i ,yyy i: ' ;y : \.y ? ■ . y , >y .fit- J yya.rvr :: , ■ : j„ :jv v-;-- ■ - ■ ' HK-' - ... .. : ■ - . i ; ."V- ; • i ■■■ .* .;yv :H. c, Y.'V. V • r h'-Mcy?' 01J.ZZ- . 1 ml ■■ : l . : : c> 1 •: is& i v.l J.i ss "■ &. te y T) IXy i ir iy •• .s' /.? . • / ; - . x htf ■ ' /.;r j i; -y ?, .?v: ;?.tC -yt rij 5f‘? ; , .r'-a-oo to t ha:) Ziakwlwq'd zdh.sei . y • - : id ;,t i ';i "j xu . y s v yy . ' - : , • l .y •/ .v: yy:. : C"i i n ' b .yyy . 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T ' .' y. r j • ; ./; 'i; ; . vy y: yy . y • n l X 3/23/34 PRIEST WOULD ALLOCATE NON-PROFIT ORGANIZATIONS 25 fo FACILITIES A proposal ha.s been made to the Senate Interstate Com¬ merce Committee by Rev, John B. Harney, of New York, Superior of the Paulist Fathers, that “to eliminate monopoly", all radio licenses be cancelled and that a reallocation be made giving 25 °jo of the present broadcasting frequencies to educational, religious, agricultural, labor, co-operative, and similar non-profit making associations. "Have you been having difficulty?" Senator Hatfield, of West Virginia asked. "Difficulties?" Father Harney replied. "From the beginning. " This referred to the fight the Paulist Father station, WLWL, in New York, has made to secure full time over the 1100 kilo¬ cycle frequency which it shares with WPG at Atlantic City. The following dialogue ensued: Senator Hatfield. - "You say your average is 2 hours?" Father Harney. - "We have 15-g- hours a week, and the commercial station WPG which shares that frequency with us has the balance of the time. " Senator Huey Long of Louisiana - "How much is that?" Father Harney - "it is something like 1104 hours, I believe." Senator Long. - "I think you got a good break. They put our sta¬ tion out altogether down in Louisiana. " Father Harney - "Well, we extend you our commiseration, but we do not want to be put in your position, and that is what we are con¬ fronted with. " Senator Long - "You will be in our position soon. You are grow¬ ing to it. " Father Harney said his proposal to give 25$> of the broad¬ casting facilities to religious and education institutions was designed "to forestall the possibility of a monopolistic control of radio communication facilities, and to secure permanently for responsible religious, education, cultural, social service, and other human welfare agencies of a non-profit-making type such an assignment of radio facilities as is in keeping with their high character and unselfish aims; such also as will give them all a chance to be decently self-supporting and free from the overlord¬ ship of mere coramercialists whose dominant purpose is to accumu¬ late wealth even at the cost of human decay." 6 iM ;v.. • -x $ m : v & \ i x. xx ; . mm - ". ■ S' '• . ■ . W ;XX..7 H&t 77 .7. 7 £ " ■; r ; v '■ >■ X'x' xirfoL . v v-. 77 ; . i ■; 7 : ■:;v" 1 - /' ; xxxxxx' .• ; ;x X...- j : c&f*1 :.F/4Ct . X. X x: ; • ; : • . ; xxx j? i ... xx:; -. t ■ ' 7' . ; .-■■■ -X;:;,-: -- cp i&ttmsillp - : r lU ■■'"■x,x; < x . ,-•■ - ' ; j ' ■"X; W:Mtzt2V. Jmst . X: X 7x7: , • : ' . ; . -.■■ i _ . y [ > & X’X.' "'XX;';.'.' XXM/ ' . ..": 1 V nr. : v X v . ‘‘ XXXVv ; ‘ ■ 1 X X V j V ' S - • > ?• ; 2 .. ?iij "X.:- , x r 7.' srjuoii ' • : 777ir XX : ' 3 ; itt'J® %!>ne : -■ 7 i.;-"' "!; '.7;'; xr •' - * t ■ f » . •; * ; £uum wo H* - ^n.a ? : xpj 7 V aOli: .7X; / 7;: : :' V fij x/77.; 'ic ; r- . 0 vX X.7 :-;:X:." ' “ . -.7,.. 7 - : : • • •. | « x ; f... : i ■’ '• - 77^ ; ■•7 X 'v .. - •' ; . . X.,-V 7; • ; r Sj ; ' ; ; f i? ,XX- 7:. "7; i"I7 -'.'j. 07 117.' 7 .;7L.X"’ .. ,v • -.X; •.••7 • - . ■: . . > ", * 77. r . ; • i ;' . ;7i ' : ■ -r ' X' ! 7 X'X -' 7; .7 m 7 7" x 7- 7 ■ ' "7 - X • ; : B U ■ ; " ; : j 7 7 ; ■ ; 7 ■' V X- jX ...7 .. j 7' * ■ ; - 7 "7 .. ■ ; ; ) 7? 7 , . ;■ : :i ; . / ? 7: ,,;V 7, .... ; . .. . 7 - • ■ 7 ; ' • , ri* X7 • : ; 7 f7| H ■ ; 7 •- *'7 ' '7r-'":''- > 7 • . ' • i > ^ . .7-- ’ '• ; • :' 7,i 77:.x; ; ' l •; .. "7-; X;X : 'v , : 7. - x in :-rn -x:.:- .7 7. x.. 7 ; ■; n i hV ..7 7 ••x'7 - ■ ' "V' • ' X -7 . '■''' !-7. : 1 7, V i'i 7- • tfj - •: ■ r ; ‘ v ' ' • • 7 V 7.7 q 7X ... ; . - ' .7'- X : . 7 ; . - - - , ■ ; ■ . . ; a .v . - ;-.1 7. ... . \i 7- 1 .■ ' . . i ,7-.-. 7 1 • _ : ; • : •_ ; ' i X ‘ ' f \ 3/23/34 Father Harney, submitting a statement by the National Committee on Education by Radio, disclosed that there are in the United States 30 stations classified as educational. These sta¬ tions have assigned to them a total of 817 hours' broadcasting time each week. "That may seem to some a goodly allowance for educa¬ tional institutions", Father Harney said; "in reality it is beggarly and outrageous. The total quota units of all assign¬ ments in the United States are 44.37. Of these educational institutions have but 9.61, less than 2^ percent. Think of that in a country whose proudest boast is its devotion to the cause of education. " XXXXXXXX DILL HOPES TO REPORT COMMUNICATIONS BILL IN TWO WEEKS Following an executive session of the Senate Interstate Commerce Committee, Senator Dill, of Washington, last Thursday said that the Committee hoped to report the Communications Com¬ mission Bill out in about two weeks. Senator Dill said that a sub-committee, the personnel of which as yet he had not decided, would be named to consider the Bill further. Representative Rayburn is understood to be considering Monday, April 2, as the date to begin hearings on the House Com¬ munications Bill. The Rayburn (House) Bill will have the approval of the Broadcasters but is expected to meet about the same opposi¬ tion from the communications people as the Dill Bill did at the Senate hearings. Both the broadcasting and communications industries have expressed approval of the amendment offered by Senator White, of Maine, in the nature of a substitute for the Dill Bill. Senator White said that it was designed to carry out the specific recom¬ mendations of the President with respect to a single commission with unified control and stopped there without adding new legis¬ lation which might jeopardize the fate of the Bill this session. The White amendment contents itself with transferring the Radio Commission and those matters of the Interstate Commerce Commission having to do with telephone, telegraph and cable, to the new Communications Commission. The set-up of the White Communications Commission, insofar as personnel is concerned, is the same as the others excepting that although composed of seven members, it doesn't provide for three divisions - radio, telephone, or telegraph - but would leave this detail for the new Commission to work out. The White Amendment carries practically no new legislation. There was some comment when the Senate hearings were printed that a letter which David Sarnoff , President of the 7 .i. . " - H • ' ‘ . • *. 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' i ' ; . 5.: j 0 O J. ... : li,h . r -wnno-ir: . -V • v ; a or; .• as-’r- .0 r.n •: ■ , M r> . ! • t V.‘ » • • 3 ■ . ' J. • >>U'J • j i . . - ■ v ;y"t; •• ' . : " , j , ’ \? ;<.t c /. , ■ .. . , .. , , IS--' V %ls: VVO :: v io.. .. ■ ‘ i ‘ !. i ; ■ .7 0 . ■■ ■ ' '■ { : i r: -v 0 • -:hA sS y .'\: ■ r >!*" t : . ; 1 r ? Xv; i ! -■v ■i ■ - :v v on ' 0'.. ’ '• v . :■ ■ rv 7 r snJ • '' , "r. ftlwd . o- ' Vr : 0 v.V v .v ; v 3/23/34 Radio Cornoration of America, wrote to Secretary of Commerce Roper, urging a single unified Commission had been left out, also the failure to print an address "Communications Control in War", which Mr. Sarnoff had offered in his testimony. It was noticed that the printed hearing, nevertheless, included a letter written to Secretary Roper, presenting a different point of view from that of Mr. Sarnoff, by Col. Sosthenes Behn, Presi¬ dent of the International Telephone and Telegraph Corporation® X X X X X X X X SOUTH AFRICA'S BROADCASTING FACILITIES EXTENDED The most powerful broadcasting station in the Union of South Africa was recently opened near Capetovm, according to a report from Consul E. M. G-roth. The new station, operated by the African Broadcasting Company, replaces the original station which was opened in 1924. Broadcasting from the original station, the report states, was done with a one-kilowatt unit, which although fairly satisfactory insofar as local broadcasting was concerned, was not sufficiently powerful to overcome the adverse atmospheric conditions which prevail throughout most of the Union during the greater part of the year. The new plant which has a 10-kilowatt transmitter was erected at the cost of 37,000 pounds® It is expected that this powerful equipment will enable listeners throughout the Cape Colony and other provinces of the Union to enjoy the programs which w ill henceforth be broadcast from Capetown. At a later date, it is intended to erect another broad¬ casting station at Durban, a duplicate of the one just opened in Capetown. When this is done the five principal South African urban centers, including Johannesburg, will all have modern broacF casting plants and no part of the Union will be deprived of regu¬ lar programs. These five units will be self-contained, but will be connected with each other by land lines. No definite solution has as yet been found to overcome the problems arising in certain sections of the Union in connec¬ tion with transmission difficulties, the report states® A relay station is at present operating at Bloemfontein and other relay plants will probably be erected later at selected points. XXXXXXXXXX 8 * • V -* v x ‘ v.' P PCPpP « ... • ’ ■ ■■ P -v cXpcppoX .:?... Xp pc i :\u t.ir.oO* pcpppp pp .•: ,/p. . p.c rep •...,. cr pc j - X-' - cp X'pp r.Xr $£ ppp ■ ■■ ■ . -X ,-p'e . " pX' . , .• < •' v- vv k ,;y f f -i .£. . P; .1 ■...' .• : .. ' .PP o ■ ■ ... X ' 5 .. X : y . rp; •i * • J XpCXp,- v ■,}. ,;p.,p.. . 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X P X . j.jj : v CvC id f ■; P..; ,p p '.'.PPp.. .cX"'. :.:pP;c : p '■ c. - ' f C’:.C c; p Pi pp; ..... .PPPP P..CP C :; {. ,p.-p ...Pp... Cpp- pp p -p' ; C;-'P. . ■ PP.C, .PP:.. i. pp J A 1 -.1 PC y r XppC ■•;pp,. yC! ^idXqppp i,i |:?f P p; vp[. : X X X x X 3/23/34 RADIO COMMISSION TO MOVE QUARTERS FOR FIFTH TIME While waiting for the Communications Commission axe to descend, the Federal Radio Commission will again be forced to move its quarters - the fifth move in seven years. The Commis¬ sion is now slated for removal to the new Post Office Department at Pennsylvania Avenue and 12th Street, next to the old Post Office Building. The Commission was originally housed in the old Commerce Building at 19th and H Streets, N.W. Then it was moved to the Interior Department at 18th and 0 Streets, then to the National Press Building at 14th and F Streets, then back to the Interior Department, and finally to the Architects Bulilding where the Commission is now located at 18th and E Streets. The Commission moving into the Post Office Building brings the old suggestion to mind that someday maybe the Communications Commission may be taken under the wing of the Post Office Department since in most foreign countries, mail, wire and wireless communications control are merged into the same department. X X X X X X X I.R.E.-I.S.R.U. WILL DELVE INTO TECHNICAL REALMS A preliminary program has just been arranged for a joint meeting of the Institute of Radio Engineers and the American Section of the International Scientific Radio Union in Washington on Friday, April 27. All sessions will be held at the National Academy of Science. The following papers are scheduled: The Development and Characteristics of 9 cm Radiation - C. R. Kilgore (Westinghouse Co. Vacuum tubes for Generating Frequencies above 100 Megacycles, C.E. Fay and A. L. Samuel (Bell Telephone Laboratories); Facsimile Radio Observations During the 1932 Eclipse, E.F.W. Alexanderson { (General Electric Co.); Notes on Propagation at a Wave Length of 73 Centimeters, B. Trevor and R. W. George (Radio Corporation of America); Some Recent Work on the Ionosphere in Canada, J. T. Henderson (Canadian National Research Council); Studies of the Ionosphere by Multi-frequency Automatic Recording, T. R. Gilliland (Bureau of Standards); Ionosphere Measurements at Low Altitudes, L. V. Berkner, and H. W. Wells (Carnegie Institution of Washington); Also, High Frequency Ammemeter, H. M. Turner (Yale University); The Thermal Method of Measuring the Losses in a Vacuum Tube, F. P. Cowan (Harvard Universith); Frequency Standard and Monitor Stations of Canadian Radio Commissions, Col. W, A. Steel (Canadian National Research Council); A Method of Measuring Noise Levels on Short Wave Telegraph Circuits, H. 0. Peterson (Radio Corporation of America) , and other interesting subjects. X X X X X X - 9 - ; *y < . r: , , X ■ j fc . ■ • - .. V y.j :v;' ' • • : no <863 .v' o«3 tftVQ®-y% ‘>;.i ’. ".# ni b sk il v ..V X. ■ r t*se- i? nvl -■ I l.f - r ' t v XT * v; .H , r t • ■ . ■ $■& H baM & t L ■#* V j - X 0 !>.£*'& d.:?! X .?& X ■ ' B : - £ St • : XcXerf ,•; i ' , J ’ t £?&’£& »Ji : • l •’ ; .. - o.-:- o ; :: j X .• ; : >{ i JV 3 j • • hu t 3ft ■' ■" t £fC It ; v I ■ • ;•■ - v.: ; ' :' i V V \ ■> .1 l X :’C 3 -3 ' q -.;; n.v X ( XiSO v i'-W.: ; V r; X \ : ,] ' ".O'J: £ -L? 'ifi.:. 's X,; -•• ;• X X :-v f. :rv:v - vBOi . •• '• • • r : . ' • , ;■ '■ 1 .k x x x , i . . . -.j*; r ; : •• • v { ; : • ^ . i . i . ■; :»? >u j gut . fki n :"V'^ • ; v n ;.i r ■ ; . mil ■' - : ■ : : ' • 7 \ ' . . ■■ : ■ i r r X i ! " ; ;1 : ; ! 'V :\.U ’ ■ : ■/. X .C X . ' • ,i ' ' ■ -V f; j ••■' >’ » . 4 /i XX ■ - ! . '•• • y . . A i i. I t !.'■}. Jj ' S*X . t ' • . , ... ;'IV J • - ■ • ■' ‘.i 'i . ^ ?. ' ' • ■ ■ • | vfii C‘ ; Ci’v.Xl) i : V ' - - : . • ■ • ; •aa : .... Sx j.- 'i ;. ar • . i. X . jXXiix 1 j no $:u ' raiifCU . h L.-- s .■ ’ • : -X •a-JxrX OI, X:X! • : v-X ; ' . oO . ■ > . I ~ ■ . ;:v 'icv 'X ■ : ' ■'» '• XV ■ > i -1 ' < ■. ■ • •> I - «'A ( • ■ r ; ;S ; ; .:"0' O: .O :>{X. O') it*-" ’ «•■ ;'i rOv'I ; ( *• ■ X.: ' t Vi /X ,X X;':-.-: , ; \ 1 ♦ ^ r- ■ . -.I; "X V-; )\.l V V \ 'X;I '.TX • : ' ' . t. n ^ i. V . : v. X ‘SO a ^ j ■ i. L . : . a •••./■ ; : . ; ■: 'Xi : : ;? v; J j | Ftf*% . ' . • L'iT J H ■ I ■::■■■ :i,i 1 i ■: ;X,' ■ &*!>• V^bH) .X . . t. ■■ ^,X, 2ti VO® ■ ; Jinot) m £ httiXtit! 7c 8 ; : m ■ s, ; i J. ,{ ■ • . V. ■ D ii ■ V; /{ • j5.ftc ■ ; • ■ ' ' ' V' U ■ ' ‘ ■ ; : : o ' : i X ? q a ; • - j .> T v ruV q : q i J j • dv r . \ ;:•/ X- -r X. v X v • ; ; - i : ■! i .“vrc neX ctt ■ ' ‘ *y • CORRECTION In the comment captioned ''Stormy Time Ahead for A.T & ^ " in the Business Letter of March 10, the first sentence read: "Apparently the Administration has it on the books to heckle the American Telephone and Telegreph Company one way or another „ " This was indicated, the article explained by Senator Dill announcing that he would introduce a resolution to investigate the company. "Almost at the same time a notice was issued setting April 2 as the date of a public hearing for the revision of the wire industry communication code", a following paragraph stated. "There were those who saw in this a threat that if the A. T. & T* didn't meet Gen. Hugh Johnson's code wishes, that the Administration might crack down by strongly sup¬ porting the Dill resolution to investigate the telephone company. " "The April 2 hearing is on the telegraph code and has nothing to do with the A. T. & T." we are now informed, "so there is apparently no relation between Dial’s activity and the NRA; nor does it seem at all necessary that Dill's resolution has anything to do with the Administration. It rather appears to be a private enterprise of his own. "What he apparently wants to do is to investigate the American Telephone and Telegraph Company and Western Electric Company contracts. It is not certain that he knows there is a very complete and voluminous record of those contracts going into every possible detail taken before the three-judge court in the Illinois Bell rate case. "That case is before the Supreme Court now. Consequently there is no news in the facts about the contract and the Supreme Court will probably render its decision on these matters before any investigation could get very far." X X X X X X 18,000,000 HOMES NOW ESTIMATED EQUIPPED WITH RADIO SETS Columbia Broadcasting System and the McGraw-Hill publica¬ tion Radio Retailing, have just released the figures on their annual count and analysis of the distribution of new radio sets. Last year these two organizations cooperated in the first determination of the distribution, by States, of new radio homes since the 1930 Census. The tabulated data -1 based on confidential reports from leading manufacturers of radio sets, and 783 distrib¬ utors and dealers in 48 States - was published by CBS in a - 10 - 3/23/34 brochure titled "The Flood Hits the Valleys,'* This year the figures are based on an even greater number of reports, for more than 1100 distributors and dealers submitted their confidential data, John Karol, Director of Market Research for the Columbia Broadcasting System, reports. The total number of radio-equipped homes in the U, S. as of January 1934 is 17,950,000. This figure is based on Radio Retailing's tabulation of the sales of new sets, less the number which (according to dealers' and distributors' figures) were sold as replacements of old sets or as "extra" sets to homes which already had radios. Sales of radio sets in 1933 were greater than 1932 sales in both number and dollar volume. According to Radio Retailing, a total of 3,806,000 sets, at an estimated retail value of $130,800,000 were sold last year. This represents an increase of 1,186,000 sets, or 45.3$ more than in 1932. The cooperative Columbia-Radio Retailing investigation shows that the percentage of total sales which went into homes already equ ipped with radios was higher in 1933 than ever before - 65$. A total of 55,600,000 radio tubes were bought by U. S. radio listeners in 1933, at an estimated retail value of $56,600,000. The type of set which had the largest increase in 1933, according to the Radio Retailing figures, was the automobile radio. A total of 724,000 automobile sets were sold last year - compared with 143,000 in 1932. xxxxxxxxx CHICAGO CIVIC BROADCAST BUREAU ORGANIZES Attack against the traditional setup of commercial radio has been inaugurated in Chicago by the charter secured last week for the Chicago Civic Broadcast Bureau, which is organized under the auspices of the City Club of Chicago. The purpose of the Bureau as stated in its charter is "to act as a specialized repre¬ sentative for public-interest organizations or agencies, in Chicago and vicinity, which may desire to carry on radio broadcasting under direct federal license, with the purpose of serving the public convenience, interest and necessity." The G-eneral Manager of this Bureau is Harris K. Randall who for years now has been attempting to rearrange radio through his Radio Audience League. "The League of vague membership kicked up a fuss about the duplication of programs, the amount of commer¬ cial copy and the type of commercial programs", says Variety. "Proposed angle of the organization is to help non¬ profit organizations to invade the channels now held by regular broadcasters in the Chicago area and the Bureau intends to manage the applications and business affairs of these new organizations 11 ■ ■ r j; :• . , : • r V • • • ■i'- - v. • t. ' . ■* ‘ *m •. ,'r . . Xv • i"; • ■ ' , . , • f ■ 1 • .= f . :• • J!i /i'-VX ' v . ' ■ s : 1 "i . - . ■ * . ? . : iy n ;ri:Vl , no t*. yi.i /. '7 . ■ ^ . % - */•;; . • . ? '? 1 C •• -X.-;,; J : '• \r ■ ;y> ■ • " T" nd if! ; t- xi, :• , := v. v: -• ; •Go i • l: ;'\ "V ;• 1 '.Tito1. ■ ; t ■ • ■- • ‘ ■ f 'i "m .j ■ '..if .y vy. ;; 1 ; “ = .r s' :• -v y'lrri ■ -y ■ ’ ";"TC ■: L •'J | V.n. ; ';x ..r -v : • -.'.V 'v.-. T / ii ' ■ ■ ■■ <' --.it '* i .1 \J • : . - 5< «'S*X ?1 ?;r G w.: J : i L X : - 1.- 1 ; -i ».->o for;.' x ■ - nix •y- •' .ni ■’ no :.i o-; n-'Ci ' : v ^ yX A >; i ■■ tfi: .i,;vt .naLn iov -y’A. r ;i ... O yy :o i'; v v l j zrx&'St k--- it:? x- . ',iy; i X, I' : t •• :■! r -vV:!);, {• i j *. 1 ; ^ * . ■ .7 r-ni. Me: XXX . '• I.-. 0 nni: :;£• to , ..?■• - Sy • i ■f . ‘ 'V >•. . / ■ .•* . (' lV ri •: , ' ’ . < i ' • ih n-'-n.;:c U:u : 1 vO o' yyy\" : . o .! \ ; ‘ ..t ; V- TC.M •• fi:.n£»C Xn •; ' . ; ?. , nD v aZiH \ix •T j .i E •• . V • n •T- *-.< «•<* .. .. i. • . . . *, * ■* r f: ii.i,' i. i'X'f: < X ID , 000 , To to Jx ' . . , . - 1 •- \ * 1 ■ -V '■ * ■ , -V j. .( T ' , t l-ln Ox TO ( : TT T : :iyj. ■ * * *y ! - • -• rr'i . s «• i'M .i. j i T - ’ ■ <{ l 0 ' ’ .T.* .. ’ .. j | . ?' r.-'r ' ..V.'; j ;onvv . f. It fit 't - r. \-;X- . ;? ' * '* . ■ y If ■ 1 • •• < . ‘ - v* n C- • : ■. ' •: ■ ■■■ r ;? •>s OOC.^tV tn In.xn: •v . . ' : 4 vi'C.-ni i'i'0 ? ’ i ( v ’ 'v X X X X X X X X X r - • . /■, >'• iA vl i ; Divio or a:v:t: i ns •* IV r* r , • % v * •i • - > •» * • ■ nj.n ; nx,,'-.- y • :iJ v • o:.;- onlO .-OID l v ■>. . .. r* .. • ■ ■•%b b S< ' ! ■ ; ys ; • VTi ssp. v •:.;u v ,y> ;.nivv ' ■: r; '0 <.:'J bn?. ; A. i V - ; i ■ v 3/23/34 in their appeal to the Federal Radio Commission for channel and time allotments on the ether. "Following the acquisition of time by these organizations (if time is acquired) the Bureau will supervise the management of the stations; under the plan, the stations of these groups will obtain their revenue in a manner much similar to the present com¬ mercial setup, selling time on the air for advertising but reserv¬ ing a considerable portiqq.of the time for public service programs, whatever that means. *■-■* * >*> • besides Manager Randall "The Directors of the Bufeau/are Arnold R. Baar, Herbert Bebb, Mitchell Dawson, Frank N. Freeman and T. V. Smith. The first three are Chicago attorneys and the latter two are professors at the University of Chicago. "In their program of policies the Bureau boldly claims that the aim is to improve the city's broadcast service by getting the station channels into hands better qualified to manage them wholly in the interest of the listeners. Not possessing any station plants of their own, many organizations wjaich are pecul¬ iarly competent as sources and judges of good program material have left to the station owners all the control of licenses and hence of program bookings. " XXXXXXXXXX COLUMBIA ISSUES BROADCASTING BIBLIOGRAPHY A bibliography of broadcasting has been prepared by John Karol, Director of Market Research, of the Columbia Broadcast¬ ing System. It first gives a list of books on radio divided into the following classifications - general, radio technique, educa¬ tion, foreign broadcasting and those books containing articles or chapters devoted to radio* There is a list of radio magazines and periodicals con¬ taining radio sections. Also a list of British publications* There is a complete list of the publications of both Columbia and NBC and finally a list of miscellaneous publications including pamphlets and brochures. All deadwood has apparently been cleared out by Mr. Karol. His listings are up-to-date, and complete, and show evidence of painstaking work on the part of the author. X X X X X X X 12 S* v « t . 4;vr ;^XMX*»SX. X ■■ ■'■■ ,; ■' X «#• X ■xxxa^va..- -•; • •• ' ' - : '• y‘ ■ - Xfe.. .'-:. .XC .'XX-« v . , .: :. i ■ X Xi- •■- . !-■' O ux--; ?.■ ■■; . * >v, ".X'...,X: ' U -r;vX . : X.X|x ; - W'M v^v;:‘^fH ■■*&?**■ * ' l" ‘ ’\ v.i Xx X' V •J “ :• X I ; ! .1 j '* :\i 0 :': ■: : - j ; xX . i. XX .XX' X\ :■■ |0. X ... U. ■■;. ;,jj 'X;- hiidt IP ; \ v ■ ... >■. >,.<“,/• • t :'. I j. ■; 1 - v . ' • » ** * '* *• .i* * . ,- ;... .• • ' ■ ; ' ' X XX : . ! >. | ; X.a. •■•:- .•.;•>;■ f t .x:' . - ■■■ ' ' ‘ •«■ VX - • " '■■■'■'' "" . X' . . . • . ; ■• ...x' jf x I-'..,- •. h \ &ijn x. ■ ■ ■■■-■ '•:■■..■ • &>r - # ... * *XiX .’ f* . ■ • ■ ■■:: . oCftii f ■ a«'-i ■ f *'■ rt* , X ■'*' * . : x ».. . * X"’ ' ' .•■ '— * ’• ' .T^ .♦>■)*' x. . rX^.'i, uiS’-- • •;• - j • x' . : . £ i xxj? ■ -- -;;'- , ' v -X ••'• T X'i > C . v ft k :V u:. A •-• , ' x X# X X XI ..X, , v ,, ^ ■ : ■■••(■•■: ■ C\”, r -‘ XX X,rn.;r.s.* ,v. • ! •• • • " . . . . ax -x xxv: ex it I . r. .K •; x : ... X? a,.:. ?' X.. n ■■ U elX xx X?. ' : X X ' .1 >• •' ' - - •'• ' .... V r - .-. ;•. .' i • Xi T'f i. « ix ■ ■ ? ,-x. . xp'i : T: " *• 1 ■ ’ ~ ' ~ ■ • f X - ] ^ ' "V X X .. ~r.k.i ■ , ■ A M;-.. :X^"e ■ ■■ > ■ -e t' • ■' X' v-: ■'£•7.^ oo - • . . ' •. , -.v x- - ' X- ....;-e ..i ' - ■ ; :XVl‘X X '-.I X; ...;; i'-X.x:';' ' x ■ ' e: 'e.' XX f 1 x es.XX x:.- . i ^ /' * _ , .. ^rtUrta, &«. «w»i . *» »■ 1 : . : • r; ■ t ■: : .XX XX. X‘ x . . rX •, pjii ■'t%4rr% xX : -X- \ : • • / - x.. • •" ' • • .* l ■ * ....-'i .:v x"r H .% *1 •». v» • - • i • . v • x.; -•v.-'-.i •• - • • x » " ' * > .... if . V . •- .. •• :... T j ( Q XK ■■ ..-■■■■ ■' ' - ■' r a Ji f.X ;■• v v ;•• Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication ■' ' * .ic 1 ! ‘ • / i i } 'AftTMEWT Li U [■ p If $ P ® IF If j p MAR S 8 1334 11 ' |7|8|9jX •’ * , 31 . i ' ' 1 i’), ^ J . * < • t j Vl| -• i ‘ ! . i v: INDEX TOP SSUFT 'OFTKRBR' ! •••:'! 1 $££ 27, 1934. Squier Rites From Cathedral With Military Honors . 2 NBC Furnishes Presidential Dinner Entertainment . 3 Intense Interest At Capitol In Coughlin Broadcasts . 4 Encouraging Outlook Seen For Radio Sets . 5 Senator Intended To Omit Both Behn And Sarnoff Letters Opposition Gets Laugh On Johnson When He Balks Mike. . . New Commission May Undertake A. T. & T. Investigation. Communications Opposition May Jeopardize Passage . Radio Station News Service Seeks Short Wave Facilities Alec Should Observe The Gridiron Rule . . 9 Business Letter Notes . 10 A. T. & T. Reported Buying Postal . 11 Decisions Of The Federal Radio Commission . 12 No. 710 co co r- cd co March 27, 1934. SQUIER RITES FROM CATHEDRAL WITH MILITARY HONORS Funeral services of Maj. Gen. George 0. Squier, inventor of "wired, wireless", World War Chief of the Army Signal Corps will oe held at the Washington Cathedral. Bishop Freeman will officiate at the service tomorrow (Wednesday) and burial will be in Arlington National Cemetery with full military honors. General Squier who was 69 years old, although not as active as formerly, was about the city until a short time before his death. He died of a complication of pneumonia , kidney and bladder infections. General Squier was very fond of the young people, particioated actively in social events, loved to dance and only a short time ago acted as master of ceremonies at a great military ball. Although small in stature, the General had a military bear¬ ing. He was always immaculately dressed. A bachelor, the General lived at the Metropolitan Club having quarters for years alongside those of General John J. Pershing. One of General Squier' s last accomplishments was to see to it that an impostor received a penitentiary sentence for rais¬ ing a large sura of money presumably to purchase a bust of General Pershing. Squier discovered that the impostor was using his (Squier1 s) name and lost no time prosecuting him to the limit. General Squier’ s last publication was a little book, "Telling the World" published in May, 1933, by Williams and Wilkins Company in cooperation with the Century of Progress Exposition. It dealt with different forms of communication and a chapter was devoted to the history of radio. Glancing over an autographed copy of the book which General Squier gave to this writer, there was noticed for the first time the General’s private book-mark which bore the inscription, "Erectus Non Elatus", which freely trans¬ lated might be construed to mean "hold your head high but not haughtily. " The General was always kindly and courteous. He was a joy to newspaper men and one pretty generally had a good story aft r talking with him. He was so prolific in ideas and theories that it was next to impossible for anyone to put them all on paper. Pro¬ bably no man had a more vivid imagination with regard to the realms of possibility of radio than General Squier. He was a master publicist. Wired programs received through electric light sockets or over telephone receivers he regarded as a certainty - it was, in his opinion, only a question of time until we would have them. 2 • , V v ,v«v : Hv’.VV. r-r'V .; ; ; - : j : /. ; • • ' ; • • ----- • iv.; « -j-T r ; ■v - J, • }'<: i V ( , •- - ’ ■ ■ ‘ : ■ : - ' ... : - . ; - , • $ '? i fi-a' LSIZ0 < ,-r • .--V; mKwtm* - ■ : v;,{: •- -- v /* * i; jj.; - ■ -i -;. • ’•• i J ... ii J J iV : r ' ' < i i • . .... i„ . 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'..• ' ' .. ^ •' ¥ i ■■ H *S ; : il ■ i ■ ■ 1 k‘ f J H. ■:.:r 1 -s ■ V/; •■■.{,' : 1 ■ . V; r* i n : '.ft 3/27/34 General Squier described before the National Academy Sciences in Cambridge, Mass., his plan for a combined sound and light distributor which, he said, would beautify homes cluttered with inartistic furnishing and would add to the pleasures of moto: ing. His plan proposed establishment of "radiolites" , or graceful tower-like devices of tremendous size at intervals along super-highways. The devices would both issue music and illuminate the countryside. XXXXXXXX NBC FURNISHES PRESIDENTIAL DINNER ENTERTAINMENT If John F. Royal, Vice-President in Charge of Programs for NBC, and Frank Black, versatile NBC musical director are called upon to furnish much more entertainment for the President of the United States, they may find it more convenient to establish a Washington residence over the week-ends. Royal and Black brought down a company of stars several weeks ago for the White House Newspaper Correspondents' dinner at which President Roosevelt was a guest. The show they put on made such a hit with the Capital newspaper fraternity that the obliging broadcasting executives were called upon to play a return date last Saturday night when the National Press Club entertained the President. This time they brought with them the Revelers. The newspapermen put on a skit "Under Three Codes" based upon the influence of the NRA on the life of a city room. President Roosevelt enjoyed the show so much that he remained until 11 o'clock and said he would have stayed longer had he not had the automobile strike on his hands. Dinner arrangements were in charge of Oswald F. Schuette, of the National Broadcasters' Association, who was a former president of the Press Club. There were no out-of-town guests because the attendance was limited to Club members, an exception being Frank Mason, chef de publicity of the National Broadcasting Company, who came to Washington with Messrs. Royal and Black to make doubly sure that nothing got into the newspapers about NBC's part in the performance. Among those identified with the radio industry who attended the dinner were: Federal Radio Commissioner Harold A. Lafount, Harry C. Butcher, manager of Columbia's Washington station WJSV; Frank M. Russell, Vice President, NBC; Vincent F. Callahan, assistant to Mr. Russell; Kenneth H, Berkeley, manager of WRC and WMAL; Paul Siegal, formerly of the Radio Commission; Lynne M. Lamme, radio writer, and Martin Codel and Sol Taishoff, radio publishing magnates. XXXXXXXXXX 3 5 ■■■■'■ : i ■ • i * ■ X !. V* ip';;! X :: X X. ;i .xxxx & ■■ j; i V ; ■ > ip -Vi X X X X x x X ■ . ' XX ! X : x ; .. X 'd ••■ ; V :" V , ! V..V;; , •: . •. •; 1 ' v . x; : ■:■ ; xx xxx X.x x *. 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U, X ' : X ■ ■ • . - X . j X ' :. p v .; ' XX.’’ ; . ■ pi r; ; .. . X .■’. . . , ; . ti X i : , ; ; ,-i .X •. . X . vX .X . . ' ' . . ..... X ' : X. X iX : ...X, X -X . XX | ...X:: C i , i ..x • .X ,;X ;X ■' L- ; ■ ■ : ■ -X . i : i ■ X X X;,'.X ... ■. ^ 2 : : • ; . I' 4. ''X . :x , X. . . ' X'XX:;;; X;!,. .' x- ,1 X i. X XI .1 'X X V s. A ,t’. X ••• A A 3/27/34 INTENSE INTEREST AT CAPITOL IN COUGHLIN BROADCASTS Next to the handling of political speeches, Senators and Congressmen seem to show more interest in the broadcasts of Father Coughlin, of Detroit, than anything else on the air. An example of this was when Rev. John B. Harney, of New York, Superior of the Paulist Fathers, who operate WLWL, testified at the Senate, He was interrogated as follows by Senator Couzens of Michigan, and Huey Long of Louisiana: "In computing the fact, Father Harney, that educational institutions have only 2-g- percent of the total quota of all radio assignments in the United States, do you compute the hour that Father Coughlin has, for instance, Sunday afternoon, and all the stations?" Senator Couzens asked. "No, sir", said Father Harney. "He pays $14,500 a week for it", Senator Long replied. "I am not concerned about that; I am concerned with the fact that this is an educational hour distributed among all the educational stations which he is hooked up on", Senator Couzens replied. "Yes, sir; and this computation has nothing to do with educational programs paid or donated on the commercial chain", Father Harney declared. "That is what I wanted to find out", Senator Couzens answered. "Known as commercial broadcast", Senator Long interjected "No; but he buys commercial broadcast stations for educational purposes, so the station is, so far as the public is concerned, used for educational purposes", Senator Couzens replied-. Newspapermen were so anxious to make a story out of what M. H. Aylesworth, President of the NBC said about Father Coughlin at the House radio hearing that they disregarded Mr. Aylesworth' s prepared statement in their eagerness to put down what he said about Coughlin. "Mr. Aylesworth was asked if the National Broadcasting Company had ever had Father Coughlin on the network. He replied, 'No.' Then a Congressman inquired if Father Coughlin had ever been refused. Mr-. Aylesworth explained that several years ago Father Coughlin came to his office relative to broadcasting, and he was informed that the NBC does not sell time commercially to any religion. "The National Council of Catholic Men submit the names of those who speak on the Catholic hour. They are solely resDonsible for the Catholic speakers on the NBC networks. They have never submitted the name of Father Coughlin." - 4 - 3/27/34 "If Father Coughlin should come to you today and ask for time on the NBC what would you do?" a Congressman inquired. "Send him to the Catholics", Mr. Aylesworth replied, referring to the National Council of Catholic Men. Unfortunately for Aylesworth, when some of the newspaper men wrote the story, they made it appear that he had refused the NBC network facilities to Rev. Coughlin. In the afternoon Henry A.. Bellows, vice-president of Columbia, was asked similar questions with regard to the cleric. He told, in detail, why Columbia had been obliged to cancel the Coughlin broadcasts because of Columbia1 change In policy to accept no commercial religious time. However, no newspaper men happened to be present at this particular time and Mr. Bellows escaped unscathed. XXXXXXXX ENCOURAGING OUTLOOK SEEN FOR RADIO SETS The most encouraging outlook which the radio set business has presented for years, is again evident in the situation confront ing the receiver manufacturers, according to Electronics in present ing statistics for the 1933 sales which follow: Radio Receivers Unit Sales, 1933 . 3,806,000 Midgets . . . .2,226,000 Consoles . . . 856,000 Auto radio . 724,000 Total value, retail (less tubes) $130, 899, 000 Radio Tubes Tubes made, 1933 . 63,295,000 Exported . 7,690,000 Sales in U. S. . . 55,605,000 Total value sales in U. S. at retail ...... .$56,599,000 XXXXXXXXXX 5 3/27/34 SENATOR INTENDED TO OMIT BOTH BEHN AND SARNOFF LETTERS The mystery of why the Interstate Commerce Committee printed hearings on the Communications Commission Bill carried a letter which Sosthenes Behn, President of the International Telephone and Telegraph Corporation had written to Secretary of Commerce Roper but omitted a letter from David Sarnoff, Presi¬ dent of theRadio Corporation of America to Secretary Roper presenting a different viewpoint was cleared up by Senator Dill, Chairman of the Committee. "I intended to keep them both out”, the Washington Senator said. "They were controversial, having to do with the proposed merger, one being an answer to the other. Mr. Behn advocated to Secretary Roper that the merger be a two company affair, one domestic and the other foreign. Mr. Sarnoff addressed the Secretary advocating a single unified communications system. "I had made every effort during the hearings to keep anything controversial from getting into the record so that we could proceed as rapidly as possible and not have to call wit¬ nesses who would be entitled to be heard if disputed questions were raised. "Mr. Behn's letter slipped into the record unknown to me and that is v/hy it appeared and Sarnoff1 s didn't. I have written to Mr. Sarnoff explaining the situation and he under¬ stands it. " However, when Senator Lonergan, of Connecticut, dis¬ covered that the Senate Committee had failed to give Mr. Sarnoff' s side of the case fully, he had printed in the Congressional Record not only Mr. Sarnoff 's letter to Secretary Roper but the copy of an address which Mr. Sarnoff made at the Army Industrial College entitled "Communication's Control in War." Although printed in agate type, it filled seven pages of the Record and this probably attracted considerably more attention than if it had appeared in the Senate report which as a rule is only read by the Senators on the Committee, whereas the Congressional Record is seen by everyone in Congress. XXXXXXXX OPPOSITION GETS LAUGH ON JOHNSON WHEN HE BALKS MIKE General Johnson can make industries respond to the crack of his whip but he ran into a snag when he tried to have microphones removed which enterprising representatives of the Columbia Broadcasting System had set up to broadcast the Code Administrator' s testimony at the Senate hearing on the Wagner "labor disputes bill" last Monday. 6 3/27/34 General Johnson declared he didn't propose to have his testimony go on the air. The Columbia people told General Johnson they had the permission of Senator Walsh, of Massachusetts, Chair¬ man of theCommittee , to broadcast the proceedings and until he ordered them to they would not remove the microphones. Senator Walsh stood pat with a result that a message was received that General Johnson would not testify that day, the reason given to the public being "that his arduous labors in connection with the automobile strike had kept him at his hotel." When General Johnson didn't appear to testify the next witness, James A. Emory, general counsel of the National Associa¬ tion of Manufacturers, was called. Emory launched a spirited attack on the bill. About this time Senator Wagner entered the room. He protested vigorously when he learned that Emory's testimony was being broadcast and remarked: "I am sorry the broadcasting company was not as inter¬ ested when those appearing in favor of the bill were here." Senator Walsh said that he had tried to be fair in the matter and explained that the microphone had originally been set up for General Johnson, one of the Bill's strongest proponents. Representatives of Columbia confirmed this saying that they had intended not only broadcasting what General Johnson had to say in favor of the bill, but what Mr. Emory had to say against it and that General Johnson's balking had given a lucky break to Emory. At that Columbia broadcast a spirited imprompty debate between Emory and Senator Wagner which gave pretty much both sides of the question. X X X X X X X NEW COMMISSION MAY UNDERTAKE A. T, & T. INVESTIGATION There seems to be a possibility that the investigation of the American Telephone and Telegraph Company, which Senator Dill proposed, if finally made, ma.y be undertaken by the new Federal Communications Commission rather than by the Senate, as the Senator from Washington originally intended. Senator Dill said that no decision had been reached as to this but that one of the things the Senate Committee would con¬ sider would be the possibility of conferring upon the Committee power to make such an investigation as he had proposed of the American Telephone and Telegraph Company. Senator Dill said that he was completely occupied with theCommunications Commission Bill at this time and that if the A. T. & T, investigation was not disposed of in the Bill, it would have to go over until a later date before he would have time to give it further consideration. XXXXXXXX - 7 - ; V 7 _ 7 ■ • 5 •. :• •••.. ' 7 ' • ■ : :i ] j •• : r' : -..a,'- • j • a t y ■ - i. y ' ). 7- ■' • \ -i ' iiJ v. 1 y - : , 7 ■ i ■ ~ ■ • - j. . I aY.i 00 .CK " i\'- '■ ■ .1 ilvCvi: : : . 'i-i ;i J Z- i "• ■' ■: •; i r: J ,p •: ' . .'rv^bj X -;X ■: : ■ | i ■■ 7 ■ ' Xt T?:\ < \ C . 7. b- 7 ir.llOAt l . • \ r ; bb 'V'5 r i .b.b7. i>-$ ■ -7. '■ . SV-3 - X. 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J .if x.; ■■ xM .74 c-!; ■; ; 7 : : t bib) V tii.iOw 11 . 7- 7 . i 7 i .1 7 ;"ii| ■ i : ■■ ’ ’ 4 . 7 . . i ..• ■ : ■ - - ■ - ’ f X X X >■ X X X 3/27/34 COMMUNICATIONS OPPOSITION MAY JEOPARDIZE PASSAGE Although Tuesday, April 3, has now been definitely set for the beginning of the hearings on the Communications Commission Bill introduced into the House by Representative Sam Rayburn, of Texas, the belief is growing that unless things are speeded up an opposition to the House and Senate Bills is lessened, the legis¬ lation may fail of passage at this session. There will not be as much opposition to the Rayburn Bill as there was to the Dill Bill because the broadcasters will not oppose it but there promises to be considerable resistance on the part of the commercial communications companies. This may cause delay in the hearings and doubtless a prolonged fight on the floor of the House. The same may prove true in the Senate and if that is the case, there may not be time enough before the session ends, now tentatively set for the middle of May, to get the Bill passed. Senator Dill has appointed his sub-committee to consider the Communications Commission Bill in the Senate. Besides himself, it is composed of Senator Hatch, Democrat, of New Mexico, Senator Thompson, Democrat, of Nebraska; Senator White, Republican, of Maine, and Senator Hatfield, Republican, of West Virginia. All sessions will be executive and it will probably be a week or ten days before the sub-Committee reports back to the main Committee and then probably another week or ten days until the latter Committ reaches its conclusions. Assuming the House Committee to work on about the same schedule, that would give the House and Senate about a month to pass the Bills, which is very little time at the end of a crowded session. XXXXXXXXX RADIO STATION NEWS SERVICE SEEKS SHORT WAVE FACILITIES The Radio Newrs Service of America, of 260 East 161st Street, New York City, organized for the purpose of furnishing news to radio stations, has made a formal request of the Federal Radio Commission, that it be allowed to send news to stations throughout the country by means of short-wave. This would necessitate a modification of a rule of the Commission which provides short wave facilities exclusively for the transmission of news for "publica- tion by press associations and newspapers". As the rule stands today, it would prevent the use of these facilities for the purpose of transmitting news to stations for them to rebroadcast. The Radio Commission has Wednesday, Aoril 11th for a hear ing of the case. At that time it will consider whether the present rule applying to short-wave transmission to newspapers should be amended to read "and for broadcasting to the public over any regularly licensed broadcasting station." In other words, the proposition is whether the rule should be amended so news could be sold to broadcasting stations. 8 3/27/34 "Public interest cannot be served when the press services are prevented from transmitting news traffic intended for broad¬ casting", Ivan Johnson, President of the Radio News Service of America, said addressing the Commission. "In the belief that these facilities would be available for the transmission of news matter intended for broadcasting, this press association has made con¬ siderable investment in establishing news gathering bureaus and is now suffering heavy losses through the refusal of the fixed public press stations to handle our traffic. It would appear that the rule of the Commission in its present form encourages a restraint of trade, sets up unfair competition and discriminates between news¬ paper press associations and radio press associations when there should be no such discrimination whatsoever. " Determined to fight West Coast independent radio stations which are broadcasting news in opposition to the A. N. P. A. 10- point agreement, publishers of Pacific Coast newspapers have launched their own radio nev/s bureau, operating along lines of the national Press Radio Bureau. Norman Chandler, Vice-President of the Los Angeles Times and secretary of the publishers' committee said that this new move has the approval of the A. N. P. A. and the Publishers' National Radio Committee as a necessary step to cope with local problems. The West Coast organization is known as National Radio News Bureau, and will service newspapers, the NBC, the Don Lee Columbia chain, and independent radio stations west ofDenver and from border to border. It will put its first report on the wires this week. Mr. Chandler declared that all the Los Angeles papers and all the San Francisco and Oakland papers have agreed to take the new service, but there are no indications as to just how many members of the National Radio News Bureau might actually start opera¬ tions with. X X X X X X X ALEX SHOULD OBSERVE THE GRIDIRON RULE Apparently Alexander Woollcott got away with the off- colored stories he told to the New York Advertising Club which, unknown to him, were being broadcast, Hollywood McCosker of WOR says they didn't receive any complaints. Hereafter Woollcott should bear in mind the rule of the Gridiron Club banquets in Washington - "Ladies Are Always Present." As a matter of fact no woman ever attended a Gridiron dinner but the rule is so well observed with regard to off-colored references that the wife of any member could be present without being offended. X X X X X X X - 9 - 3/27/34 BUSINESS LETTER NOTES : The Milwaukee Journal , owner of radio station WTMJ, is co-defendant with Joseph D. Beck, Commissioner of Agriculture and Markets, in a slander suit brought by Walter M. Singler, leader 01 Wisconsin milk strikes and president of the Wisconsin Co-operative Milk Pool. The suit is based on a radio talk over WTMJ by Beck on May 15, 1933, criticizing Singler. Following a hearing of the cas.- at Milwaukee depositions will be taken, after which the ca.se will go on the calendar for trial this Spring at LaCrosse. A new 500,000-watt transmitter has been ordered for the United States Naval Station at Annapolis, Md. It will rank with WLW, Cincinnati, as the most powerful radio station in the United States, The call letter is NSS. The equipment will be built by the General Electric Company, "Some Aspects of Police Radio Communication" is the topic of an article in the March issue of Electronics by Harry E. Thomas, of the United American Bosch Corporation, of Springfield, Mass. The Cooperative Analysis of Broadcasting is to be expand¬ ed, and will be carried on by a committee composed of D. P. Sraelsei1 Proctor & Gamble Co.; Chester E. Haring, Batten, Barton, Durstine & Osborne, Inc.; A. W. Lehman, Association of National Advertisers; George Gallup, Young & Rubicam; C. H. Lang, General Electric Co.; George W. Vos, Texas Company. Rear Admiral Richard E. Byrd, whose second expedition to the Antarctic has revealed a new page in the history of communica¬ tions, has been designated as recipient of the Columbia Broadcastinr System Medal for Distinguished Contribution to Radio, Presentation will be made during the expedition's broadcast to the United States over the Columbia network on March 31st. Presentation of the medal will be made by Henry Adams Bellows, Vice-President of CBS, before an invited audience in the Radio Playhouse, New York. Both Bellows’ address and Admiral Byrd's acceptance speech, coming from Station KFZ, Little America, will be carried over the CBS network between 10:00 and 10:30 P.M. EST. WGN, the Chicago Tribune station, will take the news stuff sent out by the Press-Radio news bureau. This decision w as reached last week when Col. R. R. McCormick, publisher of the paper, was consulted, Variety reports. Col. McCormick is on the 10 - '■c «■* .1- -'I. >. J' . >.■ X: ■ : ! •!.- "}i • '■ • -- ’ i : :: i y; y ■ y a ■ y X f: -’-'iy X -IV - • - X> , X OX y>(y'yy.y Zj* U • ' i, "/ ■ - 1 T ■ : : :oq X : : .. i r r. •' ,":0 .y: i-:M : J 'Sv/X ; « y . ■. ; -o ?. 0 a i ; : • ’ ■ J , ; y /-a. :y\i ,v i ; i ,r !.n y,! j -.; : Vi.i;y ; :; : j 0 ' y ?hM; f • • y.O • y . r ') -y;y y '• i;'r . • J .' a ’ f ,;y? ''■■■ T i.,o .j, : : y i, ... : y'i'; 0 (iO'J yv y t .-y" ' :r*i : . te y . y :<} y J -vf{ ,,yyy . • .. . XO ; ..<$ yO ':<■ :: ; .yf / yt?.: * 0 • 0 : . ‘ • ; • < • •: t ' J! • y y - :n:-y - yv . ao '■ y- : ; ^yycf.; -;T c • vi. .-C- ;y ; T' , y. " y y: . i:iyy/' - , : .. \ iilyy , y;i; ■ ;c y-y’; »/? . .;y.y) . yy .'....•a. ■ “v . '-y; ? fy .XoD „ . 'y. v J y - , \ •’ 'i: .... ' f .... 3/27/34 the Board of Directors of the Associated Press and decided that his station should go along with the policies of that press organization. With night testing of its new 500,000-watt transmitter now virtually complete, the Crosley Radio Corporation has just been granted authority by the Federal Radio Commission to embark on a series of day-time tests. At the conclusion of these final tests application will be made with the Commission for permission to operate this Gargantuan transmitter on WLW's regular day and night schedule. Exhaustive tests conducted almost nightly between 1:00 and 6:00 A.M. during the past two months have found the new transmitter equipment meeting all the extremely rigorous require¬ ments originally set forth as to its performance. xxxxxxxxxx A. T. & T. REPORTED BUYING POSTAL A special dispatch to the Washington Evening Star from New York read: "One of the biggest deals in the history of Wall Street is under negotiation. It is learned that the capital stock and bonds of the International Telephone and Telegraph Co. , have been under quiet accumulation for several months in anticipation of the consummation of the deal. "It involves the acquisition by the American Telephone and Telegraph Company of the Postal Telegraph and Cable Co. , now held by the International Telephone, which means that the latter company will retire from the domestic field and confine its activities abroad. "The I.T.& T. already has a profit of about $10,000,000 on foreign exchange transactions as a result of the depreciation of the American dollar. "With the proceeds of the sale of the Postal, the company will be in a position to pay off its bank loans and retire its 4-§- percent convertible bonds due in 1939 and at the same time put its capital stock on a substantial dividend paying basis. It is reported that for every $1,000 Postal Telegraph bond the holder will receive $600 in cash and $400 in a preferred stock of the new company, to be formed by American Telephone which will also handle the teletype business of the Bell System." XXXXXXXX 11 ' . V i, ... ■. . ; i .. .. >3 . ■ ■ . ■ ' ' ' ' * ' ’■ ■' ■ s ' ■ ■■ 1 ’ ■' - V. . ' J.-L f' / ; -..is -■ t } ' ....... ' ' <■!.:. { 1 ■ . . X fa ,■ . .. ^ v' • ; v J i' './■ j O , r. . •■/ .i.v; J l O . .a t \ '■ ■ .. • C; i ; • [ • .f ::U:r 4 . . ' -'i •: ' f i . .r V J ' ■•'/;>'.? bbffa o-.; ar. • • . 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Xi *- 3/27/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted March 23 - WCFL (Aux. ) Chicago Federation of Labor, Chicago, Ill., C.P, for 250 watt composite auxiliary transmitter; KGHI, Loyd Judd Co., Little Rock, Ark., license covering local move of transmitter and studio; 1200 kc. , 100 w. night, 250 watts day, unlimited time; WSOC , WSOC, Inc., Charlotte, N. C. , license covering new equipment and increase in daytime power, 1210 kc., 100 w. night, 250 watts daytime, unlimited time; KTUL, J. T. Griffin, Tulsa, Okla. , consent to voluntary assignment of license to Tulsa Broadcasting Co., Inc.; WWVA, W. Va. Broadcasting Corp., Wheeling, W. Va. , license covering auxiliary transmitter 1160 kc. 250 watts, for emergency purposes only; KLRA, Arkansas Broadcasting Co., Little Rock, Ark., modification of license to use auxiliary tube in conjunction with interlocking switch. Auxiliary tube and regular licensed output tube not to be used at same time; WMBD, Peoria Broadcasting Co., Peoria, Ill., authority to install auto¬ matic frequency control; WCFL. Chicago Federation of Labor, Chicago, Ill., modification of C.P. extending completion date to Sept. 1, 1934; KMBC, (Aux.) Midland Broadcasting Co., Kansas City, Mo,, modification of C.P, to extend completion date from April 5 to May 5, 1934. March 27 - KMLB , Liner's Broadcasting Station, Inc., Monroe, La., C.P. to make changes in equipment; WBBZ , James F. Kyler, Ponca City, Okla., extension of temporary authority to operate station on 1200 kc. , 100 watts unlimited time, from April 1 to June 1, 1934, pending action by Commission on applica¬ tion for consent to involuntary assignment of license; KUMA , Albert H. Schermann, Yuma, Ariz., special temporary authority to operate from 2 to 4 P.M. MST, April 3; KFIZ. The Reporter Printing Co., Fond du Lac, Wis., special temporary authority to operate from 1 to 2:30 P.M. CST, March 28th; WDAH , Tri-State Broadcasting Co., Inc., El Paso, Texas, special temporary authority to use transmitter of KTSM for period of 30 days while transmitter of WDAH is being moved locally; WSVS . Seneca Vocational High School Buffalo, N. Y. , granted special temporary authority to operate from 8:15 to 9 P.M. EST, April 9 and 16. Action On Examiner's Reports New, Herman Radner, Lansing, Mich. , denied application for new station at Lansing, Mich., to operate on 1210 kc., unlim¬ ited time, sustaining former Examiner Elmer W. Pratt. Order effective March 30, 1934; New, d/b as Capital City Broadcasting Co., granted application for new station at Lansing Mich,, to op¬ erate on 1210 kc, , unlimited time, sustaining former Examiner Elmer W. Pratt. Order effective March 30, 1934; KGIR, KGIR, Inc., Butte, Mont., granted application for modification of license changing frequency from 1360 kc. to 1340 kc., sustaining Examiner R. L. Walker, Order effective April 20, 1934; New, Herbert H. Fette, Meriden, Minn., denied application for C.P. for new station at Meridian, Minn. XXXXXXXX - 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L — Not for Publication INDEX TO ISSUE OF MARCH -30, 1934 ■ «; Dill Says ^e’s On The Fence In Seeking Re-Election Anti-Liquor Advertising Bill Slumbers In Committee 2 Commission Confirms Adverse WMCA-WSYR Recommendations Extortion By Radio Promises Soon To Be Outlawed . Amateur Tells Of Thrill Talking To Foreign Countries. Will Post Public On All Wave And Other Set Types . House Communications Commission Hearings Postponed. . . N. Y. Auto Club Drivers Oppose Car Radios . Code Officer Says 30 Hour Week Would Spell Disaster. . Socialist Charges Minority Fares Badly On Air . Wireless Telephone Service Extended In India . 8 Commission Decision Breaks Down Clear Channels . 9 Sees Brain Trust Program Direction Possibility . 10 Giant Telegram Proclaims 265,567 Telegram Responses . ,11 Business Letter Notes . 12 Applications Granted By Federal Radio Commission . 12 No. 711 CT> cnoi i DILL SAYS HE'S ON THE FENCE IN SEEKING RE-ELECTION Reports from the West that Senator Dill, of Washington, may not seek re-election and that he might be defeated if he did, have developed the fact that the Senator is decidedly uncertain as to whether or not he will even make the race next Fall. "I'm pretty much fed up on it all", Senator Dill said to this writer in apparent weariness. "Whether I'll seek re-election is a question about which I am very much undecided. I feel that I am stronger now than I have ever been and therefore if I should decide to quit this year, I could do so without the inference that I was doing it to avoid defeat. My friends are urging me to run again and maybe I will. You never know what you will do until the time comes but at the moment I am pretty well tired out by the whole business and haven't much inclination to sign up for six years more of it. " Senator Dill said there were many demands for money to finance the campaign and that he didn't see his way clear to make these donations. It was explained that beca.use of the few industries in that section of the country, there were not so many large donations as in the East and "it takes a small fortune to make the race out there", one of Senator Dill's friends added. He said that great pressure would be brought on Senator Dill to run again. If Senator Dill should not seek -re-election, or if he should be defeated, a man who has been a dominating figure in radio in Congress for the past 10 years or more, will drop out of the picture. Senator Dill, along with Representative (now Senator) White, of Maine, was co-author of the Radio Act and is Chairman of the Interstate Commerce Committee which handles a.ll radio matters in the Senate and is at present considering the Federal Communica¬ tions Commission Bill. If Senator Dill did not return, and the Democratic majority were still maintained in the Senate, Senator E. D. Smith, of South Carolina would be in line for the Interstate Commerce Committee chairmanship, with Senator Wheeler, of Montana., who is a.lso up for re-election the coming Fall second, and Senator Wagner, of New York, third. It is assumed that considerable legislation may be recom¬ mended by the Communications Commission a,fter it ha.s had an opportunity to study the situation and if Senator Dill is out of it, much opposition which he ordinarily would raise and drastic measures which he would advocate, will be missing. 2 j :.i j i ' jr- -;u no .Xu/a 7 V i -..v • • -■ . • 1 Y 1 - Vf . '■ I ; i 0 i. i • ; ■ • :Y X -r / . .ri; r :.J i.W O', ; . r i -.0 •vf- a X 0X0 X '• '0- •• • . n>Xn.x s)£oy,: - J “ j. o." j J ■ ' - • « - . y a '■ a ;V- : ' CUO OCX •• ' - ' • • ;.j \ . ' ft • van-i ; : : ? w /: Xj .t.i a a . : iv 'V • ••_. ‘ . : .\0: 0 '■■■•■ ■ i.'i ' ■“ -y 7; aXa i> .aX y - . • . :• , V V. ‘ .0. ia"' t : r :: : ~ .5 .. i - ■ ■ <4 aoaXXv 0 j :i V.rui Y:.' - -aO fa i, -.v no >- : M , , ~ : ■ 1: u • a X u.- 5 a • ' Xn V ■■■' -:i - ■ • ’ i. , r r ...a- nr a ■ • c , / 1 0 .0'.:. n. ij'XJ :,:a too... an. ■JLJ'.i. : ' , , ■ ■ f : I X ' ... .• f O , T, ’ " a-;?- ‘J . • a XO •' ■ ' *• 1 ‘ ,X:oX , ; ;• i-. ■ • X- r • ' / •• ■ < : ■ } .. ■ : w. ■ * ■ ■■ 0;-'X iXu.-O' :/ -’j l ■ ..r/Jjij . i ,;5 - *! '• •;;r : :v«7 ■ XniJDV • an -M-X •' a., .: a i n .‘..-fiv X; o n or : - .rcj v • .- -•'/'tXa,-: y:X:-: a- a: X-Xa- a.-' a!:. ,a. . ^ . • ... . r ' ■ ■. -T t'Ja.a'V’ U: «X.;r • ;.i iY -. *' -1 3/30/34 The sole outstanding radio authority in Congress would be Senator White but who, because of seniority, would be prevented from serving as Chairman of the Interstate Commerce Committee for many years even if the Republicans got back in. The dispatch which revealed the fact that Senator Dill was uncertain about running again was from James D. Brown, a cor¬ respondent in Seattle, and read in part as follows: " The Democrats despite their control over both State and national patronage in the State of Washington, find that many of their following are swinging into the independent progressive clubs of Washington, an organization of which John Caffee, brother- in-law of Senator Homer T. Bone, is an outstanding active member assisted by Judge W. H* Pemberton, a Democrat, now State Inheritance Tax Collector, and Otto Case, the Democratic State Treasurer. "This progressive group, so-called, has been active in placing candidates in some of the more lucrative Federal posts and this success leads to the belief that United States Senator C. C. Dill may not ask for renomination and election. Reports from Dill’s home city, Spokane, are to the effect that some of his former politi¬ cal lieutenants are quietly beating the highways of the State for a prospective candidate to succeed Dill. This is taken to mean that the senior Senator from Washington does not desire to make another race. " The Senatorial nominations in the State of Washington are by direct primaries which will be held early in September. Dill, a former teacher and newspaper reporter in Ohio, served two terms in the House of Representatives from Washington State and was elected to the Senate in 1922. When re-elected in 1928, he received 261,524 votes and his Republican opponent, Kenneth Mackintosh, 227,415. In the same election the Democratic presidential nominee, A1 Smith received 156,772 votes and Hoover 335,844. XXXXXXXX ANTI-LIQUOR ADVERTISING BILL SLUMBERS IN COMMITTEE Thus far there has apparently been no effort to expedite the Bill introduced about three weeks ago by Senator Arthur Capper, Republican, of Kansas, which would prohibit the advertising of intoxicating liquors through the medium of radio. Asked if hearings would be held in connection with the Bill, which has been referred to the Committee on Interstate Commerce, or if he intended to try to get it passed this session, Senator Capper said: "I hope to have early consideration of the radio anti¬ liquor advertising bill. However, those who wish to appear in favor of it have asked for sufficient time to prepare their case. " XXXXXXXX - 3 - 3/30/34 COMISSION CONFIRMS ADVERSE WMCA-WSYR RECOMMENDATIONS Upon consideration of the entire proceedings, including the Examiner's report, the Federal Radio Commission is of the opinion that the application of the Knickerbocker Broadcasting Company (WMCA, New York) for 500 watts additional power experi¬ mentally should be dismissed with prejudice for failure of the applicant to prosecute the matter to a final determination after being allowed ample opportunity to do so; also that the granting of the application of the Central New York Broadcasting Corporation (WSYR, Syracuse, N. Y. ) for a construction permit and a consequent increase in the power of Station WSYR of 250 watts, would result in increased and objectionable interference in the reception of several other licensed broadcast stations. The Commission also is of the opinion that the alloca¬ tion of the additional power applied for to Station WSYR would increase the quota of facilities assigned in a State which is now over quota in broadcast facilities; and, that public Interest, convenience and/or necessity would not be served by the granting of the application of the Central New York Broadcasting Corporation. XXXXXXXX EXTORTION BY RADIO PROMISES SOON TO BE OUTLAWED A step nearer to the enactment of the bill applying the powers of the Federal Government to extortion by means of radio, telephone, telegraph or oral message, came with a favorable report on the measure without amendment by the Senate Judiciary Committee of which Senator Stephens, of Mississippi, is Chairman. The Bill reads: "That whoever, with intent to extort from any person, firm, association, or corporation any money or other thing of value, shall transmit in interstate commerce, by telephone, tele¬ graph, radio, or oral message, or by any other means whatsoever, any threat (1) to injure the person, property, or reputation of any person, or the reputation of a deceased person, or (2) to kid¬ nap any person, or (3) to accuse any person of a crime, or (4) con¬ taining any demand or request for a ransom or reward for the release of any kidnapped person, shall upon conviction be punished by imprisonment for such term of years as the court, in its discretion, shall determine. 11 "This bill supplements the Patterson Act which makes it a Federal criminal offense to transmit threats through the mails, with intent to extort any money or other thing of value", the Department of Justice explains. "Realizing the effectiveness of the Federal Government's investigating agencies, criminals are pur¬ posely refraining from sending extortion letters through the mails, using instead the telephone, telegraph, radio, and other means of conveyance. The proposed bill is virtually an amendment of the Patterson Act, based on the Federal power over interstate commerce, to prevent this evasion of that act. " X X X X X X X 4 . V 3/30/34 AMATEUR TELLS OF THRILL TALKING TO FOREIGN COUNTRIES Thousands of people are fully awake to the benefits they get from the amateur stations, declares Clair Foster, W6HM, of Carmel, California, noted West Coast amateur. 11 And more learning of this every day”, Mr. Foster con¬ tinues. "-Some day - through the work of the amateurs - it is going to break suddenly upon the consciousness of the general public, ’By golly, this is OUR air] And we are going to use it - not permit it to be monopolized by a few commercial people for their own private gain. " Amateur radio is the forerunner of domestic radio. Especially the amateur telephone stations - of which there are many with just as fine an output as the best of the broadcasters. We were talking across the Pacific, by voice, long before the A. T.&T. had its telephone service going even to Honolulu. "When a man or a woman comes to one of our West Coast telephone stations and talks directly to his personal friend in Shanghai, or Singapore, or Australia, maybe you think he doesn’t get a thrill out of it] Utterly different from whatever kick he may get out of listening to a line of talk from a broadcast sta¬ tion, to which he can make no response. " XXXXXXXX WILL POST PUBLIC ON ALL WAVE AND OTHER SET TYPES The public will be advised as to what they may expect to receive when they buy an "all wave", a "short wave" or "Stand¬ ard" broadcast receiver, if recommendations are adopted which wo on will be made to the Board of Directors of the Radio Manufacturers’ Association. These recommendations are now being drafted by the Receiver Committee, of which E. T. Dickey of RCA-Victor is Chairman and General Engineering Committee of which Virgil Graham, of Stromberg-Carlson is Chairman. "There is apparently considerable confusion in the pub¬ lic mind as to just what they are getting when they buy an fall wave set' or a 'short wave set’", said Bond Geddes, Executive Vice- President of the Radio Manufacturers' Association. "Most everyone knows what a ' standard' wave set is but the concensus of opinion is that the situation needs clarifying on the question of the receiving standards of the various types of sets so that the pub¬ lic can be advised as to what they may expect to get. " Mr. Geddes said he believed that next year most every manufacturer, if they are not already doing so, will offer at least one type of "all-wave set". X X X X X X 5 3/30/34 HOUSE COMMUNICATIONS COMMISSION HEARINGS POSTPONED Another delay has been occasioned in the consideration of the legislation to create a Federal Communications Commission by the postponement for a week of the public hearings on the House Bill. These were originally set by Representative Sam Rayburn, of Texas, Chairman of the Interstate and Foreign Commerce Committee, for Monday, April 2, later were scheduled for Tuesday, April 3, and now have been postponed to Tuesday, April 10, Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters, will tell the Com¬ mittee that the broadcasters endorse the House Bill insofar as it does not repeal the RadioAct. Mr. Bellows will also offer an amendment to theBill but has not as yet made known what this is to be. It is believed the communication companies will oppose the bill vigorously. of the Senate Interstate Commerce Com. In the meantime, the sub- commit tee/composed of Senator Dill, Chairman, and Senators White, of Maine, Hatch, of New Mexico Hatfield, of West Virginia, and Thompson, of Nebraska, have been meeting almost daily trying to get the Senate Bill into shape. The sessions are executive and it is not known what progress the Senators are making. X X X X X X N. Y. AUTO CLUB DRIVERS OPPOSE CAR RADIOS Responding to a questionnaire sent by the Automobile Club of New York, 56 percent of the replies voiced objection to radios in cars. Of these objectors, 68 per cent had not had radios installed in their automobiles. Thirty per cent of all who answered favored radios in the cars, William J. Gottlieb, Execu¬ tive Vice President of the Club said. Those opposed gave three reasons: "Distraction to the operator", "distraction to drivers of passing cars", and "more noise added to the present din. " Those who favored the radios said they "added to the joy of driving", "were restful on long trips", "relieved driving fat¬ igue", and "tended to reduce their rate of speed." The answer of Bond Geddes, Executive Vice-President of the Re.dio Manufacturers’ Association, to the Automobile Club’s canvass was: "These people don't know how much the automobile set has been perfected. They don't know what a joy it is to have one in the car. " XXXXXXXX - 6 - ’.v r vx ' .: vA>; r.vr. r- r, - j ' . ;j.. ; vx -:;v rib : rs ! yi: ~f JO VOX rJ O OL‘ ■ .V V V.-' - V-V '-v- 1 J"0. "i VO-XiaO' I.V ;• XX ; OXX-VX Q,? ; : . / 0 y-S-O.i • ; X :r: • • > . -.ill X ,X' OX : L jViV" V. o v xx: o .i v‘_l :v i- (/r.u.‘ J ;x-7 - xvA xxJ x ... x. v ; ;x • , vx xi x'x/vx ■■: £ ■ ' x • • w ■ XiaO-D v :0:'" XX,X : ‘?o'T xxx:, ,/ a Of. J a 7 %p x xx-v iodL . B & £ S’ v 3 S.ipq^i . v • x rSO'l o j ix x ..xx:., x o ■ v I 7v..;A 4 „x7 Xi.-tqA . /,• AX C-t /> qv)c:; :.;oq a-?, A -a. wo a xi q d Ip-ipf. ivi. ;• .oSav/ .-I 7; . ; x ' . d‘ ,.•• I .•' .. "'.•XX . .:. v '..■■> .:'... X iv.’ .-' r ' .1 : • .'XX Cii.;; ’ . d S. ... x ■■ y;o0i\ 7 LI i o :o . • ri j -ax. ,■ ■ • . V'M X a -i,. 7 7 o ov iA r x i a J: o. i 4 qX XX; X t : ■'■ X .. 0 i L- . X ri£i ■] ' -oaa j . *.* ; : ■ : : : : : . ' .. - .. ;; X XX L: 0 J -j u . , L v XX.--; ■p jnl J :■!; :>X :,:lj Xo ■ v: ivt j 1 ' iss|>/ . v.,.. ( ; i . • i : X " i O , |.i;V> XX 1 .T .-Xil ' . : r . i i. -i ■X |4a.o , X s x : •: . X x - , . ' >H •; ianxX ox ; Aq ( X • j': ; v.1'1 '' • x' • Xx x, ■ . ..xx.Xi.>i Jen xx XX :;v? xxlXx/xx ..... ; .■■■ = ; 7 . . : . • : ; ■ ' :\-'3v., X X X X X X ■ X.X ; : LJ 7707 7- XXxx'XxrxX XX r> xl xcX X- >y v : tfi-sa ■ - i.oxxx' -. ^ax x-. O-X ; x; x ‘V :,X lo :xx: oiiJ lo Axx'-'i .-O 1C i ; ; ■ ■ ■■ ‘ x; U X: X ; - .> ‘ % ,t? -XX , :i 1 : . , X V , ;X -v‘ . X i X 7:-.- .X.;,ax .7 ... X X -x ;xi.x: X; ax o? ' --x : vv*. . . .. 'to X ■ ? ,”j! Vv XV: ' v ■ r .a xx ; ; .,x. ;x .. , . t; ... .. '3 x x.x : .- 3 : X.X y : pp 'XX X .1 ■ l -l 00 000 • ' .. X.: :X . •> > ... T' i q a i xx ?. .>j: <1 ">X;CO ■ OX "Ol.t'0 i ■-Xx . - •? XO J : 0. ,-..:0 .. f-C'V ' .. x.x 51 7;.;.:.vxv.;' 3-,; 7 ox ij'xf J.x : .'..'V. Xa xx: -XX 0.7 X:,X .XXX; ..‘t OX ; ■ ;x.L: •X ■-■J.L -X! X XV. X X.L Ji/DxXX . . O;.:.v0 IXfOXX ? O . ; jA u47 j , n x t 5 * . ' a x O’xiOXX. VOX VvX..vO'.;i JL.;O0 vlpo:- vH ••> .X.va'xv X/X c? 7 -Oi:? vox: ' v v v v v y- y -V » , x.1,7 3/30/34 CODE OFFICER SAYS 30 HOUR WEEK WOULD SPELL DISASTER Addressing a letter to William P. Farnsworth, Deputy Administration of the NRA, James W. Baldwin, Executive officer of the Broadcasters’ Code Authority, raises strenuous objections to the former's request that the Code Authority appoint a Com¬ mittee to consider the adoption of a shorter work week. "I do not hesitate to say that in my own opinion, based on the recently completed study, the enforcement of your proposals to reduce the forty hour week people to thirty hours, and to reduce those working more than forty hours to thirty-six hours with a ten per cent increase in wages for all, would spell disaster for the Industry", Mr. Baldwin writes. "Such a plan is inequitable and impracticable. It would utterly destroy all small broadcasting enterprises and, would make it impossible for the larger broadcasting enterprises to recover from the reverses suffered during the drpression years, "You appreciate, I know, that the radio broadcasting industry has always extended its most willing cooperation to the NRA in its efforts to bring about industrial recovery. Already our industry has greatly increased the number of employ¬ ees, We employ today a greater number of workers than ever before in the history of the industry. Moreover, we have sub¬ mitted evidence of a substantial increase in weekly wages. I am sure you will agree that nothing should be done to jeopardize the financial stability of broadcasting stations and consequently the present employees. "I am confident that if the NRA officials responsible for these recommendations can but find the time to study this matter thoroughly and give due consideration to the readjustments which have been required during the three months operation of our Code, their own mature judgment will dictate a withdrawal of their recommendations," XXXXXXXX SOCIALIST CHARGES MINORITY FARES BADLY ON AIR Establishment of a "highly competent commission" to study the "whole field of broadcasting" and that all broadcasting activities in the United States be "conducted by a non-profit making body set up by the government", were advocated by Norman Thomas, Socialist leader, in a talk on "Radio and Propaganda", broadcast over WEVD, New York City, Mr, Thomas contended that new or minority ideas or "any genuine discussion of great issues", fare badly on the air because radio is largely commercial; that most of its time is allotted to advertising, and that advertisers are not interested 7 '■ ■; ; -7 77 , iU 77". 7? 7- X ■ ■ 7 if' 7 J, I ix; j X ■; Xl.X.C -'1 -'X 7 cx/X- • t A:\'Z 7-;.; 'tr- vu - -x ; ; 77 X.7X S ■ J Q i : -X. 7 ::;X. ;-7 'T. 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XX 7 7 ' -7.V.7X?, 7 '7 7: ! ; X7 ; : • V. 7.7 ,,-j . . 7. /. A. J ’7';- ■ 7 i'i ' : X77X: : • ?' ? : jrocxoo.. X *' ... , . >• v ,. ... . . . . i . .. ...... ., . . ... . r : 77X7 i.J.7 .' ' .7.'' 77/, ,:" y . j 0 .'XXX.'iX.XJ Cv 0 J. . .'. • ,.'77 i» .. .> • ' XX 7 'X 7 7 7- X . 7 , 7 7 V • 7': . . -i ..." - ... . ■ •■'. i , .1 : ■»! r ■7' ... .. . • X- , .7 ...) „ ., .. .: •: . . V .7 5 .. : 1 '7’-' r 77 v;-j ■ i. :.i'a , " ,:v; 7.7.: 7-7, V 7. > 7 X.J '7 7 TjX ■7 0 ; V 7' XXX. X7i . •' .. c '• . 7 . , .. ... ;■ • * ... f y •7 . 0; 777:7 c , -.. . r ... ■ ■ • • 4 x.;. i. . . •.< - * , • k • 7 ' : 0 b .7 : .'.X 70 7: 7 7 7 i \7. :. 7. ,7.77: 70 "7 ■1/ j 0A7 ; . 5 .1 h > . / ' : 7'.. XC V.x . ■ ■ > n • .. ■ ... . - i .. 7 7 . - : , ■ 7 . (10 ■ 7 : ■- r, •::x X 7 ! . • j ; . 7.7 vAx't ■ X 7; ?L' 0.'- ..tX 3/30/34 in controversial programs which might "alienate any section of their possible buying public" from the charms of the products sponsored. "Direct radio propaganda, even when paid for, is not welcome to the companies and their prospective advertisers", said Mr. Thomas. XXXXXXXX WIRELESS TELEPHONE SERVICE EXTENDED IN INDIA The long-distance wireless telephone service inaugurat¬ ed in India last May is being steadily extended, according to a report from Trade Commissioner C. E. Christopherson, Calcutta. The popularity of this service, the report states, has increased rapidly since its inquguration, the average number of calls increasing from 100 in May to 150 during January. During the first ten days of February, 90 calls were put through for a total of 354 minutes, which is practically the same as the total for the entire month of May, 1933. Most of the calls made from India are from Bombay, Calcutta and Madreas, and London and Paris are spoken to most frequently. Calls have also been made to New York and Czecho¬ slovakia. Most of the calls are in connection with business, the report states, but the half rates during week-ends are increasing personal calls. Steady progress has been made in extending the trunk telephone service in India and it is expected that by the end of March new lines in Southern India will link up a number of additional points in that area. Progress has also been made in the provision of alternative routes in case of interruptions of the ones nomally used. There has been a steady increase in traffic on trunk lines and the revenue from trunk telephone service during the six months ended September 30, 1933, was nearly double that for the corresponding period of 1931, the Trade Com¬ missioner reported. XXXXXXXX - 8 - V* n . ; ij itoid'u eo-voA'id .iJoi;iboT:q -di ‘io eaoxsilo end sotS noxS.--i»q ?i£ti\pd sXui siscq .: no. 'otru: o n (ii o . ■: - ■ SxtSG ■-■■■■■': % £ 1 ' " ■ '■■ I - <*» •-• . • ?•: ■••;■ ; •■ 'Cf^i'j'XO O : i j : (:■' 8 OlfiiiZuiO?} ~>d--’ Og >00.. O.;..' - n ' . . . . 4 vrrl' . id U..+J..S \ vl iX.OuJ '? vnlvd Yd- .. d.iii . ; .ridv V A V .1 • . '..f. ' tnn.r Y'T-'V ' r.. -.f t . .•no ,.snJ" ■ vo i; .L:. :i n n • I : vi..v • ,.nn \ atf&j ; vsin &&Jt >ino,n ■ •• . noio oni. On.t Cv V,; -d u-t ■ ...I i-o - do' .. >■ . v. i : ... . 'to too. 0 i V ' : .; , ;. -v J -• 1 ; • •;o" 0: 1 ■■ ■ V '•/ "£ J t ; •. r • o ■ . oooo-oo.O l •; : •.,: vi X.voj to; :• v i. ; a, . o • V ?•'-•• ' • • ,;'0. i < % m o 0 i'n • . o.;i oof or id v.t ,'i o it. •; o o ; tin on- .. - I oo.o.o no J c i -t ■ or: to ::. tmto;: on in o v . !;;ii to no ; to:. oio . . ’ 0 o ...i’Oi:.-. - j j: or 0 ..C ,;0 too; ... r ,-r ,n 1 ■ . .. J . o o vi ;.4' : 'ro;''* v >;■ -• r.rp: } o' 1 ’ . o ' : '! . ; »• r ; -■ •• r .* : A-- > • v; . « , .1- . . . Si Oil 0:.0 . L ' ; j ; . d; o'. 3 r? Oi . ; 0 . Ojo : ■ :: 3 00. 4 .1 V J : 0; ’ -,vO:' t . ;.x .r • • ... 0-. O • "• 0 on -.01 ,0T >w, y i V :o .t o '. ; - -J. ' t :;t ■' . o.vvO:; ..- 0.v >o . ■ . t i ; It.'.'. 0 y' ; • : t.j. 'to :rSoi'z :.O.L,t-v'Ot o o.V'< • ■• • • 1 j. .. - Xno or'; -.0-0 0 .".o.: .0’ 0 • O.<'0 •it'. : o 1 , • •' o j • . ■ ;.Xv3 ■ . f. s4vf o j . olto 0> ■ v t ; ^ f.r ,/. a 4 A ft 3/30/34 COMISSION DECISION BREAKS DOWN CLEAR CHANNELS The first real break in the clear channel system was authorized in the following action taken by the Federal Radio Commission today (Friday): KTHS, Hot Springs Chamber of Commerce, Hot Springs, Ark. , granted special experimental authority to operate on 1060 kc. , 10 KW, simultaneously with WBAL 6 A. M. to LS, suspending LS to 8 P.M. , CST; unlimited time 8 to 12 P.M, for a period of 90 days; Commissioner Lafount dissented (Order effective April 29) KRLD , KRLD Radio Corp. Dallas, Tex. , granted special experimental authority to operate on 1040 kc., 10 KW, simultan¬ eously with WTIC, unlimited time, for period of 90 days; Commis¬ sioner Lafount dissented. (Order effective April 29). WTIC, Travelers Broadcasting Service Corp. , Hartford, Conn. , granted special experimental authority to operate on 1040 kc. , 50 KW, simultaneously with KRLD, unlimited time, for period of 90 days; Commissioner Lafount dissented. (Order effective April 29). WBAL, Consolidated Gas, Electric Light & Power Co., of Baltimore, Baltimore, Md. , granted special experimental authority to operate on 1060 kc., 10 KW, 6 A.M. to LS at Hot Springs, Ark.; simultaneously with KTHS, unlimited time LS to 9 P.M. , synchroniz¬ ing with WJZ on 760 kc. with 2-| KW from 9 P.M. for period of 90 days; Commissioner Lafount dissented ( order effective April 29). WE SO, Cornell University, Elmira, N. Y. , granted renewal of license to operate on 680 kc. , daytime hours, 1 KW power, for period of 90 days; Commissioner Lafount dissented. Order effect¬ ive April 29 (Station formerly licensed daytime hours on 1040 kc). KWJJ, KWJJ Broadcast Co., Inc., Portland, Ore., granted renewal of license to operate on 1040 kc. , 500 watts, limited time, for period of 90 days (order effective April 29) (Station formerly licensed limited time on 1060 kc. , 500 watts) ; WJACx, The Norfolk Daily News, Norfolk, Neb. , granted renewal of license to operate on 1060 kc. , 1 KW, limited time, for the regular period (Order effective April 29). In explaining his dissenting vote in the foregoing cases Commissioner Lafount said: "We have before us for consideration and decision, applications for facilities inconsistent with the allocation of 1928 and existing rules and regulations of the Commission, The applicants in the cases here referred to were well aware of the Commission's rules and regulations at the time they filed their applications and desired to be heard regardless of the existence of such rules. "It is not clear from the applications whether they believed it would be in the public interest to grant them special authority inconsistent with well established rules, or whether in their opinion the rule should be modified or abolished. Certainly no evidence or testimony was submitted on that subject. The cases 9 AF \ l > \ V'i. x .• V:.i JOrt . ' o. 3:, .0 ^|D a; ,a j . ;:A ? OU ;\o .,..3.\ - :QC 0.7 i,;.' .;v0:n:N]0; Jon1 . -".j- , Hd o4 di , -• , Cl ..-•ViV. •<• .livS '" V. 0330:30 ,-’ Xv.;;aiB <03 OX , Oo - ■.•• o O' : , . • o:.o .0,0 Oj. ,:-t o :j o / 0 1 0 33 : '0 0 v.01oi 0 3$ 00 0 ■' • Id ■ ; cr 0 - v .t ; •. • :v 1 'i .* d: jJ&fljD } >; g / o v a § f -• 7 o : i 0 O • c : ..- a .' X i :■ .1 0000 ; $ v. - - 0 % J .7-'- 5 '■ ■ ■ > '■' > , X ,:i , -7,,. ; v . ; 3. ' • 3 j. 0 • 7;.,^;'. \ -d--t ... -.5 . . 0,| . f.'-; .00 0 X :,o - = 0 :o:. :.0 v. o;. ' O .; - .i. \ - *■* 3 -104^3^ i • ■' • ■ ■ *' V ./.i. nP'-i ■ ' ' c •• •.* r ' ’.. • _■ - j , i v • • ■’•• y :J (.' i . 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V;': . . . 0- ■ ■ -0;v ... y --O; 7.V . ;.:0 , ; 0^ O'.0:: 0 V J : -j j . . , ; ' i. ‘ . X . , : ; i. . ^ J ^ ' -- ■ ■ . ' f i ]U « h&Zi ;00 ::. '.• . --"O O.i ; «:y r . •. ’ ..4 V V .{. -j ' v j. O’ 'i ■;.• / •,:/ ' < , { : - ' 000 . „ . O-.. X. a c, . 0 - . 0 ; 0 . oXvO oo 0 , -0. -/IO.0: : ■ - a .: -o l;0.: , . : 0: .< , .0,; : ... K.O. - , V "**!• •*'*. * .t/ st.K'.i • , ’ - • I ■- ' .J/::: 0 i x ,.0-i )-0 :O'0t .> 0 ij X • •/ Ofii-Oi.O; 30 o. .331 • t .>a oo.;o':0, 0. O. • : -v : -.0 ..3 o.- : xo ■•::;0>O v ■..: V 0 0 , ..o, : 3 \ i i -■ , : 5 j. i. ' • 0 . 0 0-; : : • OO . - • 1 0: ' :,0j i . -oO... 0 ■ 3 „ .3 ; .• • 0 U> -O,:^ 0':. ....: 0:. O' %1-ddid ' "" ■■0- .■••>• j i-v; ,.3 ■•O; ■X ' ?v: v .OoIiO . . . :iu O' - -.0 .j > i ' .. . r Xii't : , . :j'o '• . l.X : ■ .:. : 0 . :. . X ; 7 ■■■ -i m 0, 0 . . O.v 0.0.00: •• ; • '-OO * r • 'c . :. ; j . - ‘ .0 ■ O00;. ■ : 'v - ...' ■ .. . .: 0 ■ ■■■ ; iV. .. 0 a $■;: ^ U cj u : . ,• n l " t ■; :. U l " ■ } - 0 3 r .: •, i 3 "0 , 3 ,00 , ' d< (:% .. ii i ., ',i^£..do:£- ..£k:O:;0 to io ho boS'llhom ■ LX/icria •„ 0 .Xo 0,0/.; >•< OoO .? .0::= diu. :z~ Oj V.o ooXo .3 ' : . o.io o .3;’ :: i :>rO. ■: ••< .: ; :. j qo o i ' .0: ,-'-;:3io ' V3 Oil 3/30/34 were heard regardless of the fact that the applications were incon¬ sistent with the Commission's plan of allocation. I, therefore, submit that before any action be taken upon these cases the Com¬ mission should decide whether or not the rule here involved should be continued, modified, or abolished, not as to any particular application but with reference to all stations generally, and that therefore, if and when the Commission revises its rules, it can consider whether the granting of a particular application b efore it would serve public interest, convenience and necessity.” XXXXXXXX SEES BRAIN TRUST PROGRAM DIRECTION POSSIBILITY An article, "Censorship On The Air”, by Mitchell Dawson in the American Mercury Magazine for March, has been caus¬ ing considerable comment. After reviewing a number of cases of alleged censorship, Mr* Dawson concludes by saying: "The air channels could be taken over at any time by the government under the emergency clause of the Radio Act; and if that should happen, the Brain Trust might be tempted to try its hand at directing programs. "But we do not necessarily have to choose between com¬ mercial control and government operation. A compromise is pos¬ sible, and no matter how much one may dislike compromise, the radio situation calls for just that. One of the most interesting plans so far made public is that of Harris K. Randall, director of the American Radio Audience League, who proposes to entrust 'the financially valuable broadcast channels to competent agents representing the audience, rather than to sellers of transmission. 1 The transmission service would 'continue to be sold by private producers in all cases, while the rights to occupy dial space (licenses) on the more important broadcast channels should be held instead by agencies of the audience. ® These agencies would sup¬ posedly be non-profit organizations representing every type of public interest. They would apply for licenses to certain air channels, or perhaps for all channels in their particular area to be administered through a central bureau, with the idea of renting out part of the time over such channels to advertisers in order to provide revenue to cover the cost of broadcasting non¬ commercial programs of all sorts. The agencies controlling the licenses would not have to build broadcasting apparatus but would arrange for transmission service from the owners of existing plants. "This brief outline does not do justice to Mr. Randa.il 's plan, but it is sufficient to emphasize his underlying idea of turning the control of program traffic over to agencies of the audience and divorcing such control from the ownership and opera¬ tion of stations as electrical properties. 10 no:; t. 'V I 3V i ' ' • i — X XX ■ • - - a j - • • . ; - t; , v:.li > ■ 'X x x >. X X X X r ; *•# oom txxxx hta.hh xx.x-x xx.A n x. ZiO 2 .XX ■ XX. 0.. 7; XX n : 0 .;. X X' •xixxx-x.xxX'" c,:i . . 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X;U:>- •<;; 1 'i.x - -i x r; xg :-v;. ■•••■ = • ■ : •. itOl-S * "■ *>d-$ ■■■' ■ Xilw fans --0-; : X ■ +*-8 V X .X1.;.:: -: }?.; &f\ XXl ¥? -T vi ••’ •>••'•., d b'C| 1 aa,- TC IXISSXiVX - •■■■:•': V.i • ,.U il ; etc - i -a i : m - f g. . / :• . .; i. X/7? ■. . • G :'i :-: : >: % % X 7. >: a MMlMiM 1 ’ ■ ■- ■ iX 3/30/34 BUSINESS LETTER NOTES The following acted as honorary pallbearers at the funeral of Maj. Gen. George 0. Squier, World War chief of the Array Signal Corps, in Washington, last Wednesday: Maj Gens* John M. Jenkins, Charles H. Martin, William Crozier, Charles McK. Saltzraan and William M. Wright; Brig, Gens. Frederick D. Evans, Michael J. Lenihan, Thomas H. Slavens, Nathaniel F. McClure and William E. Horton; Col. Alonzo Gray, Col. Reginald L. Foster, Lieut. Col. James H. Van Horn, Maj. James R. Pursell, Walter B. Howe and Charles F. Wilson. Services were held in the Washington Cathedral where former President Woodrow Wilson and Admiral Dewey are buried. Burial was in Arlington Cemetery. David Sarnoff, President of the Radio Corporation of America, has been initiated into the Mystic Shrine and is a member of Mecca Temple, New York City. Because of difficulty in collection of the private owner's receiving set license fee, the Canadian Government may decide to abolish the levy - but impose a tax on radio tubes as they leave the factory or are imported. Present licensing system of the $3 annual fee brings in a revenue of $1,500,000 but it is admitted there are plenty of evaders. XXXXXXXXX APPLICATIONS GRANTED BY FEDERAL RADIO COMMISSION March 30 - WHN, Marcus Loew Booking Agency, New York, exten¬ sion of spec. exp. auth. to operate with 1 KW power from 1 A.M. to LS; WINS, American Radio News Corp. , New York, special temp. auth. to operate from 8:45 to 10:30 P.M. EST, April 7; KTRH, KTRH Broad¬ casting Co., Houston, Tex., extension of spec. exp. auth. to oper¬ ate for 30 days with 250 w. night and 1 KW day, and set for hearin application to operate with 500 watts night; KFPY, Symons Broad¬ casting Co., Spokane, Wash. , auth. to make field intensity tests during daytime hours on freq. 890 kc. , 10 watts, for period of 20 days; WIBA, Badger Broadcasting Co,, Inc., Madison, Wis. , exten¬ sion of spec. exp. auth. to use additional 500 watts night, for period of 30 days and set application for hearing; WFEA, New Hamp¬ shire BroadcastingCo. , Manchester, N. H. , 30 day extension of authority for additional time in which to make field survey and submit data on authority to change frequency to 1340 kc, X X X X X X X - 12 - . : • ,r y . . 4 •V "■•• '-•.! . X. • . :' * * . •. • - . ,/ ' r-H » ,aL ... >.. { ' r ■ . : vs.b ,V '* ! J (f|ii •••.:' y| § ;.r; LM *- > • .: • . . 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'• ; ' .'.i ; ; r: ;k. 1 < oO X ; T j-. ;'s . . ,.' •';« ; V h ! ■ t : y < » l y. i )§ a . rik no y / i £ M ■,;4, by: rL- *? # ■ t ■* * * • ’ » ' . . . > . ■ . m m .'.-tj.-.i / v- / i-u i 4 HI i n \* ' • ■t : diin a hf ,v'; 6^ Igi is i y i ..I , d J i./;» ; v # . • - . ,.• ;■> yi ■.j i'l « .■ I/;-,! . X :. J 4) Xa-i P V . • ! •v 4 ' ' Is1 i| ;. 1 J B i i ri . y . ■: '...i Ob f> Oi •'4 ( ' v ,Y b:Xl :: A- f •?-' • ■ x • : XX >:; j. s ^ • « A ‘ • ': \ .4 ; -. n d : k •..‘-*2 X b-'WlYOjn € -I V.J i: J ; J- Y.'. t i ; a: 3 X X X X X -• * Heinl Radio Business Letter 2400 CALIFORNIA STREET r WASHINGTON, D. C. CONFIDENTIA L — Not for_ Publication ’ tp*: V:.' u W] v? \n IT?) '? u n i s vjj ® \m m r, - 4 f Yx \%\% INDEX TO ISSUE OF APRI& 5, 1934. Discounts Yankee Network News Service . 2 Grigsby- Gpunow Properties To Be Sold April 16 . . . 4. Radio Commission Issues Warning . 5 Communications Companies Have Family Fight Over Code. ........ 6 A. T. & T. Buying Postal^Seen As Pipe D: Broadcast Advertising 36/o Ahead of 1933 Steinmetz Voice On Radio . 9 Dill To Introduce Substitute Communications Commission Bill.. 9 Business Letter Notes . 10 Ceremonies To Mark Erection Of WOR 50 KW Transmitter . 11 Decisions Of The Federal Radio Commission . 12 No. 712 r CO CO I April 3, 1954. DISCOUNTS YANKEE NETWORK NEWS SERVICE Newspaper interest in the experiment of the Yankee net¬ work news service in broadcasting frequent news bulletins through¬ out the day is being rapidly dissipated by developments, the Editor and Publisher declares in the course of a critical survey of the situation at Boston. The radio news has not affected the circulation of any of the numerous afternoon and morning editions, and the normal increase under the impetus of big news stories has been maintained. News editors, however, are paying less atten¬ tion to the broadcasts which for a time gave them concern in selecting their leaders. The reason may be apparent from the facts of a recent Sunday night broadcast. The principal broadcast on that day comes at 11 o’clock at night and continues for 20 minutes. Analy¬ sis of the last broadcast reveals that of 30 items given over the air in 20 minutes, 19 had been given on previous broadcasts of that day without change of a word, and two of the 19 were in the Sunday morning newspapers. Thus the listener who turned on his radio for the early evening broadcasts and then for the 11 o'clock final heard repeated 19 items that he had previously heard, including two that he had read in his morning pa.per. There is a current report that the Yankee network, which is operated by the Shepherd Broadcasting Co. , is making $800 a week from the advertising before and after each news broadcast. Thus far no attempt has been made to sandwich advertising in the news items. The statement was attributed to an executive in the service that the news broadcasts are costing $1,200 a week and that the advertising revenue from them is about $2,000 a week. The broadcasts have not been without difficulty, however. Recently the service broadcast that Carl Dreyfus was to retire as publisher of the Boston American and would be replaced by former Mayor James M. Curley, of Boston. The American, referring directly to the broadcast, denied the report in a two-column front-page box, at top of column. The Yankee network broadcast an apology and the Hearst tabloid, the Boston Record, ran an inside news story of the apology, but paid tribute to the complete retraction. In connection with the coming trial of the Millen bro¬ thers and Abraham Faber of Boston, on the charge of murder in con¬ nection with the holdup of a bank in Needham, Mass. , counsel for Faber filed a motion for a postponement of the trial on the ground that it would be impossible for him to be given a fair jury trial at this time owing to the Yankee Network broadcasting the fact that alienists had found Faber sane. He claimed it would now be impossible to secure an unbiased jury. 2 4/3/34 It is understood that Judge Nelson P. Brown protested the broadcast by the Yankee network of a baseless report that Mrs. Millen, a minister's daughter, had been definitely linked with her husband, his brother and Faber in the actual participa¬ tion of the robbery. Efforts of Los Angeles publishers to write a peaceful finis to the controversy waging there over radio news broadcasting were repulsed this week when representatives of KFI and KNX, of Los Angeles, definitely turned down an opportunity to buy the service of the newly organized National Radio News Bureau. The two Los Angeles stations declared they would continue with the operation of their opposition radio news association. KFI and KNX were offered the Radio News Bureau report, which is compiled from the files of the four principal wire ser¬ vices just as the press radio bureau report is compiled in the East at the same rate paid by others - $12.50 a month. Haverlin, who is commercial manager for KFI, gave two reasons for turning down the offer: First, that he desired the privilege of broadcasting news at any time without regard to the a.m. and p.ra. limitations imposed by the publishers, and second, he desired to have commercial sponsors for his news periods. Captioned "Radio Slickers", Editor & Publisher last week printed the following editorial: "Everyone in the newspaper business, so far as we are aware, has wished to be patient and tolerant pending a readjust¬ ment under the 10-point radio-newspaper news agreement. But it is evident in some quarters that the new rule is not being taken seriously. There is a type of citizen who will gyp right up to the point of the gun. "He will not believe, for instance, that the United States Supreme Court has ruled that news is property, and that to appropriate it constitutes a theft. He makes sailor law to suit his own convenience and stands in defiance, totally blind to the decencies involved and sure that when he pays a couple of pennies for a newspaper he has a right to resell its news. Some of the more crafty independent radio news thieves are attempting to build up legal defenses, all more or less transparent to ex¬ perienced newsmen. If they can get a couple of words over the cables from London, concerning the Insull flight, for instance, it seems logical to them that they can spin a 200 word report, largely taken from newspapers printed here, and at the same time win the case when the newspaper publishers start injunction suits. There is a deep fallacy in such reasoning, as experienced newspapermen know. "Chiseling radio broadcasters have, it seems to us, played out their game. Their "independent collection" of news from the whole round world deceives no one. The law in the case is clear. Stenographic records of their reports, made at a 3 4/3/54 number of points, would be damning evidence. In our view, the time for readjustment, on a basis of toleration, has expired. The thing to do is trap radio news thieves and proceed against them. Newspapers have recognized radio's news rights liberally and in good faith. We believe the chains, and most of the new s commentators, are playing fair, Tho trouble lies, as was antici¬ pated, among the smaller broadcast outfits whose managements thin they have the world by the tail. " X X X X X X X GRIGSBY- GRUNOW PROPERTIES TO BE SOLD APRIL 16 "Pursuant to an order of the United States District Court, Frank M. McKey, of 1219 First National Bank Building, Chicago, Ill, Receiver in Bankruptcy offers for sale to the highest bidder, or bidders, all of the property, both real and personal, belonging to the Grigsby-Grunow Company, with the exception of cash in possession of the Receiver. "Bids may be made to the Receiver at any time up to the date of sale, which is set before Referee Edmund D. Adcock, Room 1201, 100 West Monroe St., Chicago, Ill., for Monday, the 16th day of April, 1934, at 10:00 o'clock in the forenoon, at which time the property will be offered as an entirety, or in parts or lots, as set out on the following pages of this notice. "All bids must be accompanied by a certified check, draft, currency, or other security as the Court may order, for 25 per cent of the amount bid." The properties and assets to be sold include: Real estate and buildings at 5801 Dickens Ave. , Chicago a 5/15th beneficial interest in a trust of the Continental Illinois National Bank and Trust Company of Chicago, as Trustee known as Trust Number 20949, which trust has title to the equity in a group of buildings at Kolmar and Armitage Avenues, Chicago, Ill. ; the machinery and equipment located in the Dickens Ave. plant; the machinery and equipment located in the Armitage Ave. plant; Inventory of raw materials and parts suitable for the manufacture and servicing of refrigerator units, radios and radio tubes; Inventory of finished merchandise, consisting of refrigera tors, refrigerator units, radios and radio tubes; Accounts receivable totaling approximately $800,000.; Notes receivable totaling approximately $370,000.; Also, 100 shares capital stock of Michigan Majestic, Inc. , being all of the capital stock of said corporation; 250 shares capital stock of California Majestic, Inc. , being all of the capital stock of said corporation; 79,076.45 shares capital stock of Columbia Phonograph Co., Inc., of a total outstanding 4 ■ . ■ 'J j £ . . . - c .: o ■ * A IaAC i ■ U - iLi '■ , 1 . ii:l , i.L ' l _ V . . .1 -l •: i .., .>65.3 :: < '. U< .. ipj i 4; ,"J. a a: i „ :V.A J'l’Q' - A X '■ $$ £ C* JXs . :.- i . ... ■ ". ■ ■ ■ " •• s VI ■ :• . ' • •• , •> a.\ ■ i . r "0 - A-' xP Q~gj £?« -- Vr * . ; dH .v/iw 5;o hcOce^a^icd ;.fi a-. '• ; ' ■ t * • . r - • : ; . - V. L\: ij 'Xu. 'v i y 0 .'■ •' f £" . . ■ i j '&&'i : ; !'ic;r A A A AAK.: ; ' ■ . :■ . p v • •- - • • * ’ .-'i.- ' - ; ' •• . J C vO'j i ■ 7. i r ‘r ■- - f T .5 210 pXif ‘ f ; I 0 a , ■■ 4i . 4 - ; 'a ,i 41 ", .i i A - : : " . , l ■ . - . ' V . 1 - - . - . , a 1 . "V - (£ ■ ..io 4C o i’b \ . '■ X. . ' J o? -ii', O-l p ; f £ Bij i ' ■ ... : : /, -o; ; oio: oi : eip t ’■ ■ J0-; coo : • { • - 05 ■ . - ; ■ . ; Uew U?;ix i- ' >-2 . ■r-y • % - vi : ii.O i'.' ,7 0 .... .... > ' • ' . J ■ . . . i . , r ’ •- • ■ ;/ ... ■ ...■■■• ■■..■*•••. _ . .. .. V,.- •• • • l • ' '0 • : • •..••••' — ■- - ' ; .i,i ; i . , : ... O - • ._ , . , : ..:■ i : ir. . ., i f. ' L ' : i .. ■ . < . . . i- • ' ; . • . - • - ’ *. \;i '. v. A . iArf. . . I -, . ;. ; iy - ■ ■ . ; j r- • .. : '.. .-..-.I :. I , ' , . " ., ,l i, ;;m .. • , ,v ; V"; 0,0 v 0. v. , iJ .:■ . i . ■ ■ . 1 : - -. • . y V. ^ .• ■ . : . . ' - i. .. : 1 . . < -v t .; ■ ’ . ' . \'7. • v " - ; ' ... .... ir .1 .: ■ o£ , " : . 7 '. ;;.p :. -f L: '0 v.r . ' , 0 -. : .j - : .; <1 . ; . • t V.J X «■ i -- ^ j- ' - 'v.: 1/;^ . lO < '■ ■ v.s . • a. j*. • •: •« A '.10 ■ :■ . •...a-. .;■■■= . • ’ - •* * . Afl- "■ 4/3/34 shares of capital stock of 82,523.89; 8,084 shares of Rogers Majestic Corporation, Ltd. (Toronto, Canada), consisting of 7.070 shares Class A and 1,014 shares Class B of a total outstanding shares of 125,549; 12,000 shares of Majestic Electric Company, Ltd. (England); 3,960 shares of Voss Hutton Company; 20 shares Majestic Household Utilities; Office furniture, fixtures and equipment; Good will of the bankrupt corporation, includ¬ ing the right, title and interest of the Receiver and Trustee in the name " Grigsby- Grunow Company 11 and especially in the trade- name "Majestic”, including all foreign and domestic patents, applications for patents, trade-marks, trade-names, copyrights, design applications, list of customers, orders on hand, incoming orders, stationery and supplies; All other property of what¬ soever kind, nature or description belonging to this estate, now in the possession of the Receiver or to which he or the Trustee, when elected, may be entitled, not hereinabove otherwise described. Any further information that may be desired will be furnished upon application to the Receiver. X X X X X X X RADIO COMMISSION ISSUES WARNING In view of the increasing sales of combination broad¬ cast and shortwave radio receiving sets to the public, the Federal Radio Commission calls attention to provisions in the Radio Act of 1927, regarding the secrecy of certain radio messages and the heavy penalties including imprisonment provided for violations. Reports reaching the Commission indicate that the public is increasingly intercepting police and other shortwave communica¬ tions. Only in rare instances, it is believed, is this information abused. However, it was brought to the attention of the Commis¬ sion that a young man in Baltimore intercepted a police call on a shortwave receiver in his home and notified law violators that officers were coming to arrest them. The young nan himself was taken into custody and found guilty in a police court for violat¬ ing police regulations. A Bill was introduced by Representative Ludlow, of Indiana, providing that "no person shall use, operate or possess, in any vehicle within the United States, or any place subject to the jurisdiction thereof, any shortwave radio receiving set with¬ out a permit. Provision is made for xoermits to be issued by District Attorneys, to applicants Virho must furnish two affidavits executed by bona fide residents of their districts, vouching for the good moral character of the applicants. 5 • q rf6 > - V'7 ' . 7 »t A : ; • . i' , .YS;;iC fi 'i ... . . .r. -v t . .• IJsU.jP , C j. •;. ; : . ■ ■ o : .v •: . • .•£■••: ct . r\c -X 'O •.'SCO ■5 XO Y : oX xij xx m -.7 £,•)£:.; V : ;x . j Sfi : i-^vi ■:0';7fi .. dJ 1 •• 3?. ex Jc. i. )H 1 * i .... ,17 2 j .. j ... • :■ i X ..■ = :. 7 pp't- f . fM *Y; 1 ;’£Y..:^:.:Y * %i l 5qClO0 WOW30*5 77 7 ; ■' , .. ' •■; :-i.r ; «. .77 \b tan) npd^xot I Is &albu£mu. ;■ . ; . • it i ■ '■■■ V • • ,• 77 Vv. 77 , ' Vv* ;.q:;v::;V , to ; 7 o’v 7 q" >J J A . J. 177 77 ; : :: ' : ;. , W <7 7 rV\-.p.r:A -tWyo; \/r: oW ••.; WvWo j. PA W'£ . - oi i; :j 1* , .77. £ 7v } -.7..:7 77W7:7 £ r: ' I 7 ;J r i.- V'vif; V> i 0 . 7.7 "'ao,.; o: W rwS-:rc 77 0?, t 'xc 777 W 7 7 . 7' . ; Vvy 7 7 70 -i ,:V j ..7 orW %<: . c ..... 77 j. ; V joo ;.0: ,7 qoo. ..O' V - W> . - v : . ? ' w - V 70' i' ;. .:o7v7. - . 77.77' 1.J .. .; . . •».t ■ .XC O.OO 'CX.: . ....... ■ - ■ : :>D . ; ; . ; V/lpo jo,-. © ;Sii :: . o i ‘C4 yX • h I S . i,; , •. 4 ;s ,, Ut a '■ c. o: x ox X T 7 ; .. > ’ C.:'.X -1 X. 1 1: i%L *Up. '. t . . ’ ; ■j 'Xii-'i :s pnwWl . i. : ■„ ..f ^ ^ V | - • J . :: : m .4 .■ C. ■ ■ / ■ ■ ;; 0 .'Pi •: - :'W; -il.--. V.:. -.s.; - '£ \ o- X-Y.7 D i .; ? ' : . ; ec !; -C _ ^ irir.4 f-;i TiOX : ,, U.F - ; i. i ■ 'COX..1 .> X C.i V 'V '■ ^ la . . -6th ■: tetemiiX ly f ;. - : f * X.X ;i i-v, ;> X ' 4/3/34 Police officials in some cities are in favor of such legislation as they claim their work in apprehending criminals and in protecting law-abiding citizens, in some instances, has been interf erred with by persons who intercepted messages intended solely for the police. However, the Commission is hopeful that no such legis¬ lation will be necessary as it is claimed it would have a tend¬ ency to hinder experimental work in the shortwave field. George 3. Porter, Acting General Counsel, says that if any serious abuse is made by the general public of private radio messages vigorous steps will be taken to invoke the law. In order that the public may be fully informed concern¬ ing the protection thrown around private radio messages, the Commission suggests that each purchaser of a combination broad¬ cast and shortwave receiver be furnished by the salesman with the excerpts of the Radio Act concerning the secrecy of radio messages and the penalty for violations. XXXXXXXX COMMUNICATIONS COMPANIES HAVE FAMILY FIGHT OVER CODE There was quite a row among the communications companies when their representatives met in Washington to argue on a pro¬ posed code for the telegraph industry. Sitting on the side-lines but not actually participating in the discussion were such celebrities in the industry as David Sarnoff, President of the Radio Corporation of America, Sosthenes Behn, President of the International Telephone & Telegraph Company, Gen. Gibbs, Presi¬ dent of Postal and A, Y. Tuel, Vice-President and General Manager of Postal. The Postal Telegraph Co. supported a code. RCA Com¬ munications, Inc., said it would sign one if its competitors did. But the Western Union, most powerful operator in the field, could see no necessity for one. The Recovery Administration has initiated the negotiations in its first effort to impose a code where the industry affected did not take the initial steps itself. R. B. White, President of the Western Union, declared: After a very careful study, we have reached the con¬ clusion that there are no advantages which our company can proper¬ ly seek under a code of dealing with competitive practices and there is no provision in the law for a voluntary application by an industry for any other sort of code. " Mr. White said that the Western Union had never been the subject of complaint on the score of unfair trade practices and would not, therefore, apply for a code. He pointed out that "continued, active competition" was compulsory under the law. 6 4/3/34 Col. Manton Davis, represent ins the Radio Corporation of America, said that he had not expected that the NRA would con¬ sider a code of regulation for an industry which was already under the Federal Radio Commission and the Interstate Commerce Commission and which was the subject of a study leading to com¬ prehensive legislation for the entire communications industry. However, he submitted a hastily prepared set of trade practices making it unfair to attempt to induce a foreign govern¬ ment to break an existing contract, to extend franks and favors to other companies in the hope of obtaining foreign contracts, to lease or sell equipment to ships at less than cost in an attempt to get their business, to vary rates because of wholesale busi¬ ness, and to split tolls with foreign companies in return for aid in obtaining contracts. While he did not mention the Mackay interests by name, he stated that "a company which has made several charges this morning", was doing all these things. Frank W. Wozencraft, Assistant General. Attorney of the RCA said: "The position of the Radio Corporation of America and its subsidiaries is now what is has been at all times since the NRA was organized by the Government. The manufacturing subsid¬ iaries of Radio Corporation of America, the RCA Victor Company and the RCA Radiotron Company, employing approximately 15,000 men and women, have long ago signed the codes applicable to their respective industries, and are operating thereunder. "R. C.A. Communications, Inc., and Radiomarine Corpora¬ tion of America now operating under the President's Reemployment Agreement, will gladly cooperate in the preparation of, and sign any code covering wages, hours and conditions of labor in ’the tele¬ graph communication industry which is agreed to by the Western Union Telegraph Co. and the Postal Telegraph Co. and other sub¬ sidiaries of the Internationa.! Telephone & Telegraph Corp. , and approved by the NRA." Col. A. H. Griswold, Executive Vice-President of the Postal Telegraph Co. attacked the Bell Telephone system for leas¬ ing private telegraph wires "and in effect setting up a series of private telegraph companies, subject to none of the regulations and obligations imposed on the commercial telegraph companies. He also condemned the exclusive contracts the Western Union Co. had with railroads, which "excluded the Postal Tele¬ graph from large railway terminals for no other reason than that they are a competitor of the Western Union." X X X X X X X X 7 4/3/34 A. T. & T. BUYING POSTAL SEEN AS PIPE DREAM There was a speedy denial of the story in the Washington Evening Star, reprinted in this letter, that the American Tele¬ phone and Telegraph Company intended to buy the Postal Telegraph Company. It is learned on good authority that the statement is absolutely false. Years ago the American Telephone and Telegraph Company owned the Western Union and was ashed by the Government to give it up, because the Government felt that there should be competi¬ tion between the telegraph and telephone systems. Until a change is made in that legal status, obviously A. T. & T. could not buy the Postal or any other telegraph company. It is said that the A. T. & T. has not ashed for any change in the law. "So" , our informant concludes, "you can see that the Star story is about three degrees removed from possibility not to mention intention. " X X X X X X X X BROADCAST ADVERTISING 36^ AHEAD OF 1933 Network broadcasting in February was $957,000, or 36.4 per cent, greater than in February, 1933, according to figures of National Advertising Records for sales of time by the National and the Folumbia chains. In percentage of increase over 1933, February made a slightly better showing than January, but as compared with the averages for the last preceding four years, February was a little lower than January. This is explained partly by the decline of February, 1933, and partly by the fact that the averages reflect the rapid advance of broadcasting figures in the comparatively short life of radio advertising. Here are the records, with those for January. Talent costs are not included 1934 1933 Dollars Dollars February January $3,585,120 $2,627,761 3,793,075 2,811,350 The fact that figures in the last column of this table show a gain of almost a third over the averages indicates that radio has resumed its rapid upward trend, although the January and February figures were still some $200,000 to $300,000 below those for the corresponding months of 1932, when broadcasting was approaching its all-time peak. 8 - I h':\ 'll •: 4/3/34 Columbia Broadcasting System shows the bigger percent¬ age of gain, although its total sales are less than those of National Broadcasting Company. Here are the figures for the two systems: 1934 1933 Dollars Dollars NBC - February $2,197,297 $1,742,784 NBC - J anuary 2,387,127 1,869,885 CBS - February 1,387,823 884,977 CBS - J anuary 1,405,948 941,465 XXXXXXXXX DILL TO INTRODUCE SUBSTITUTE COMMUNICATIONS COMMISSION BILL A substitute bill will be introduced into the Senate clarifying the original bill to create a Communications Commis¬ sion. There will be a number of changes such as reducing the number of Commissioners from seven to five, and the divisions of the Commission shall number only two, one devoted to broadcast¬ ing and the other to include other communications such as radio and wire telegraph and telephone and cable. Senator Dill said that the Senate Communications Com¬ mission had been meeting every morning and sometimes in the afternoon in an effort to expedite the report. He seemed certain that a Communications Bill would pass both Houses and be in the hands of the President for signature before Congress adjourns, which will be about six weeks hence, according to Speaker Rainey. There will be no further developments with regard to the House bill until after the public hearings which have now been set by Representative Sam Rayburn, of the Interstate and Foreign Commerce Commission, for Tuesday, April 10th. XXXXXXXXX STEINMETZ VOICE ON RADIO The pallaphotophone, invented at the Generali Electric Co., in Schenectady, whild Dr. Charles P. Steinmetz was carrying on his experiments with machine-made lightning, will carry that scientist’s voice to the radio audience of WG-Y next Saturday (April 7) two days before the sixty-ninth anniversary of his birth. Dr. Steinmetz, speaking on lightning, was recorded on the pallaphotophone years before his death. X X X X X X X 9 •oe : . i VC , •, Cl. ; /•. r 2. vc 3 , v - r , cr< ;V^:> SLitf vav , i. f^r>.'N f YO i- M v/irCT-oX V-XB/r.r-:'!;.:-'? viiii.. ... : V or:-; **■ G ' ! ■•■ " / •' v ■ • ; ' - - ... ... . . .... . .. • , • - ••• •••■ C , ^O-OOvOV r; .1 .LiTO." ...ui .• , l:. " o A ^ ^ O’ 0 O' ; .i. : . .. .•.A . :v'-r ■ oi:^.r If? -j • :o ,0. ';y^X- vX vy.. XJ-vto - : " .' .. w - o ... ■. -Ip&UvkAC o y.. u:; o; •.. ;.sui\>r. i . ..a . • ' , ::},d X.Y ■ A.A.O A '. A; ■'? J. . . ’ . .. ■■ . .. . .... . ... V. • V \ - 1 .... .... > - , c%cq:r« ■.:. X ,. /X ..-O OJ OAO H i ; " .' ■, i .. ' foil A,? ■. ] ;• j;; £ .. . g $ £.t 0 i X ■ ' : • /.A - . ■ .. v ■ ... ' ; : ... - ! . ■ . ......... ;-.j ; ■ - ; • ■ .- . . - \ . ■ :■ . - . r.. C- ' ' . . - : ; . £a ;i ■ ;0Vy ;■> ' ; : ' .. o : A (>& .'..;..:0 fto - 0 . ... -. ■ ■ : r: 0 i.:i 3l iC': < ,■ ,0 X to. O' PJ l ■ ■- ....o A 1 >if A. ,irsoc- v -rr --'/J: 4 3VSSPO • ' •.. ; .4 !:J ... I : v !;■ i ,J. ... .v • # *: v v V v ..OO V i -- ' -y'. ■* • ■ \ xr •; ».r. , r A • i o ; A ' . . ‘ • i ; :.h ; :0r .,: v ..-; U . :: . . : ' L v i r?i ' fiJ r, : ■ ■ y - -t'T - • ■ V :.v. . C ■0" .... -V;. C.X' •••■ Ov- . K : .O . O >/■'. :_r. i “• v ‘ • . ; } .1*. • > ' ;.:...:0 )l 4/3/34 BUSINESS LETTER NOTES Dr. C. Francis Jenkins, television inventor, was believed by his physicians to be recovering from a heart attack suffered Tuesday in his home 5502 Sixteenth St. , in Washington. Ill health has confined Dr. Jenkins to his residence since an attack in June, 1931. Much of this time he has spent in bed. A sharp recurrence of the ailment led physicians to fear for his life the last few days. He is 66 years old. Phil Loucks, of the National Broadcasters’ Association, and Sol Taishoff, one of the wealthy publishers of Broadcasting Magazine . are in Bermuda for a Spring vacation. They are accompanied by their wives and expect to return in about two weeks. A new high sales mark was said to have been set in Cincinnati by the receipt of a single order calling for 40 car¬ loads of Crosley Shelvador and Tri-Shelvador Electric Refrigerators It was placed by the Apollo Radio Co, , of Newark, N. J. It exceeds by two cars the previous Crosley record order when the Chan si or- Lyon Company of San Francisco placed one for 38 carloads. The May issue of Tower Radio , the new fan magazine, con¬ tains articles, "Comedy Is No Laughing Matter" by Ed Wynn, "Maestro Stokowski" by Louis Reid, "Mexico Menaces American Radio", by Robert D. Heinl, and "How to Get a Radio Audition" by Jesse Butcher. The sale of the first issue of the magazine, which is sold through the F. W. Woolworth stores, as well as on newstands, is reported to have been tremendous. The current issue of Harper' s Monthly contains a criti¬ cal article, "Why Isn’t Radio Better?"- The Chicago Better Business Bureau has established a department to investigate and correct inaccurate continuity in con nection with commercial radio broadcasting. The feasibility of the plan has already been demonstrated by cases handled to date, according to Kenneth Barnard, bureau manager. The bureau has installed a receiver and a device for recording individual broadcasts, and by this means is ablt o make permanent records of commercial programs. Radio stations are cooperating with the bureau by providing copies of continuity upon request. X X X X X X X - 10 - I • '0?< V;V:1VT • U OcfB ri. i s- .• y.-i 3^-KUKU.!^ ; f- jXi , i ;v\; imr*- m ' m-.v • nX jinnionu odX 2s>s.i$ no ; om. on a.;,' X; m . mono. . :■ xI'a *$y A.i^.rJaaJ 3 .0 u.-X! rovri n. n !• . .. -0 , .- ‘ - - • : :. ;• ■■ .. ' *.■ to Si. 0 :0 OO'U/ Xi ■ Ui. v..mr: 1 X' ooU. O'' .0 . OiU] on-i U; UO . : 0 n-:v .. .■ .-on-urnn O'YV ; I. 0 0 ■ . 0 0 .•:.'. .. • ■».; '• >• ono.no ;. oto' no 0 o • • .i i* ' ■ •. ' . -uOi' o Ul.:; ; 0 : ‘ , . v- C - ": X 0 nonj. X unrooo 0.: .* : ' ■'.) Z x x . . N .V - .. •’< j vV onn.1 .;-;u -un IX u- - I ■’ '* o x oo.:oo:.o.:o::;:! ..our t oo uni 1 uo-'T' , • ' . uo; non. rouxu.ro' ... .u - r , . "wo": IZs •xrjv'Ov- niu mnx 1 XI.no- •• . , olu 17 -:•$ r^. * : .T ;• • ; r .k- .. . ; •* . i . - n* To- Uv no- oo i.o.o/..ur ■•..£. i.u •: 'no J.onoo u : /; - o . \ , . . o .; • nr ;nu:uo; * inis'*! OS on.; n‘ . noun ;uo :un: ,; tiq'S uuuo ,n n io . :•-"•■■ unn .no :■ obloorno 'Ts : 0 O'. IX on'iu no..!., ,o . . on-. n o : - 3 j.rls -o n. -"nun u i-ur: Xru: non./ .ni.u ;oo u.-o i U 00; : ...•? o i 1 , .5 .. n. . o~ -on-. ;•...•• o .;>.n oix'.; nuooco. Xo on,:'. nr ,n- n. j'n •... . n ,f ■; . !. .;. :. . r .t . ... . • i > I \;u ouoo i-ooq n.oio'uounrur o oven": .uni. j o /I •.• oj. - rr . Xn; ■'.'•■o 0 ::.o 0 : j ; 1. on o li 0 .o: 5 ■ • ..; . . 1 ■ ■ .0 0 . 0: 0 n o . ;. . ■ on ini , -0 'I or ..violoi rulo!- oj ,onr - on non .nia Xo aojjo u n- .ooV oon : a on ' ' . .mu no s 9xC4 on m . ; x u x x >: > x x .•:. . n ■ i'v O': 4/3/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (April 3, 1934) WTAGr, Worcester Telegram Pub. Co. , Inc. , Worcester, Mass, license covering changes in equipment and increase in power, 580 kc., 250 watts, for auxiliary purposes only; WHBU, Anderson Broad¬ casting Corp. , Anderson, Ind. , license covering rebuilding of station destroyed by fire; 1210 kc. , 100 watts, unlimited time; WRJN; Racine Broadcasting Corp., Racine, Wis. , license covering changes in equipment, 1370 kc. , 100 watts, unlimited time; WNRA, Kathryn Jones, Muscle Shoals City, Ala., consent to Voluntary Assignment of License, to Muscle Shoals Broadcasting Corp.; KUSD, University of South Dakota, Vermillion, S. Dak, , special temp, authority to remain silent on April 5, 6, 7, 8 and 9, 1934, during Spring vacation; WQ6C , Delta Broadcasting Co. , Inc. , Vicksburg, Miss., special temp* auth. to operate from 6:30 to 7:15 P.M. CST from April 8 to April 30, 1934; WTAG-, Worcester Telg. Publ. Co. , Inc. , Worcester, Mass. , special temp. auth. to operate aux. transm.- with power of 250 watts, for period beginning April 15 and ending in no event later than May 1 in order to move main transmitter as authorized by CP; KSCJ , Perkins Bros. Co. , Sioux City la. , special temp. auth. to operate from 7 to 8 P.M. CST April 4 provided WTAQ, remains silent. Miscellaneous KFNF, Henry Field Co. , Shenandoah, la. , granted regular license and hearing scheduled for April 13, 1934, cancelled, as licensee has corrected complaints; Dale Robertson, Portable and Mobile, Jackson Co., Mich., C.P. for new G-en. Exp. station, hereto¬ fore granted, was retired to closed files for want of prosecution; WKBO, Keystone Broadcasting Corp., Harrisburg, Pa., C.P. to move transmitter and studio locally and make changes in equipment here¬ tofore granted, was retired to closed file for want of prosecution. Ratifications Action taken March 28: WJCT, Mackay Radio & Telg. Co. , New York, granted 60 day authority to operate aboard vessel "Lewis K. Thurlow" , pending receipt and action on formal application; WFEM Franco Italian Packing Co. , Terminal Island, Cal. , granted 60 day authority to continue operation of station aboard "Santa Margarita" pending action on formal application for renewal; Action taken March 30: KOTN, Wm. F. Chaplin, Pine Bluff, Ark. , granted modifi¬ cation of C.P. approving transmitter site at Hotel Pines, Pine Bluff; also granted license 1500 kc. , 100 watts, daytime; WFA, WFB, WFC , WFP , WFE, Tropical Radio Telegraph Co. , New Orleans, granted special temporary authority for these stations to communicate with Belize, British Honduras, for period of 30 days; Action taken March 01 : KHVBY , Examiner PrintingCo. , NC-12196, granted renewal of license subject to filing of formal application; KRGV, KRGV, Inc. , Harlingen, Tex., granted extension of special temporary authority to operate unlimited time for period beginning April 1, and pending action on application on file, but not later than Oct. 1, 1934. XXXXXXXX • M Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication i 84H06HI f. inc, ; | „ LE&AL DEPARTMENT INDEX TO ISSUE OF APRIL- 6, 1934 Wire and Wireless Code Final Draft Conference April 12 . 2 Coolidge Never Reconciled To Will Rogers1 Broadcast... Luxemburg Seen As Good Market For U. S. Radio Sets. . . . Dill Apparently Has The Votes To Report His Bill. . Senate Radio Leader Takes Shot At A. T. & T. Head . Code Authority To Consider Drastic NRA Recommendations Hogan To Stage Facsimile Demonstration. . . Would Give 25$ Of Channels To Religion And Education. . State Police Not To Oppose Clearing Experimental Band. Monitoring Station Seeks Better Summer Reception . Secretary Roper To Be House Communications Witness . 10 Replacement Sale Figure Now 63 Percent . 10 Arcturus Claims Sales To 43$ Of Set Manufacturers . 10 Decisions Of The Federal Radio Commission . 11 Informal Hearing Of Radio News Service April 11 . 12 No. 713 COtO ^ <£> f> 2> CO tf> Ol April 6 1934. WIRE AND WIRELESS CODE FINAL DRAFT CONFERENCE APRIL 12 J. C. Willever, First Vice-President of the Western Union Telegraph Co., replied to labor’s demands for higher wages by declaring that any attempt to increase costs and pass them on to customers "merely would drive them to the telephone. " Willever, who testified at an NRA hearing on a proposed wire and wireless telegraph code, also criticized statements of pre¬ vious witnesses that the practice of leasing wires to business organizations, which is carried on by telephone companies, was not detrimental to the telegraph companies. He pointed out that leased wires are "invaluable adjuncts in many businesses." Willever said that the Interstate Commerce Commission had approved the principle of telephone concerns making combination leases, whereby both tele¬ phone and telegraph operated on the same cable. In defense of his own company, the witness also declared that its exclusive contracts with railroads, which had been attaches by the Postal Telegraph Co., had been permitted by the I.C.C. H. Edwards, representing international communication employees of the Radio Corporation of America, urged that either a separate code be prepared for workers in his group, or that the pro¬ posed code be amended to provide higher wages for "this highly skilled type of workers. " He recommended a minimum wage of $40 per week, with time-and-a-half for all hours worked in excess of 48 per week. As a further suggestion, the witness recommended that a time limit be placed on profits derived by operating companies from exclusive contracts. Frank B. Powers, President of the Commercial Tele¬ graphers Union, contended that the telegraph industry "has suffered from the worst management of any industry of which we have knowledge" and declared that telegraph officials have been "most ingenious in discovering ways to nullify the NRA." Deputy Administrator Leighton H. Peebles recessed the hearings and announced that he would meet privately with representa¬ tives of the industry on Thursday, April 12, to confer on the final draft of the proposed code, which then would be considered in additional public hearings. XXXXXXXXX 2 ..dbob iaoo .b..:;b bw -bo :b": . < y .. ; v. ■ ; • o, . •. i : , ...... _ .. . . • ■ - ; j. vM J ' ■ ' ! f d . 7 0 ‘ O Vi' .- ' 1 ! '• .-v Ou hC:.J 8 • ■ £ ■ ■. • V j;-. . ■ . O. ' i :• • . b V V! f ; Of b * F. .-j OF' — Uotbi Of lo . .D :o .boo \ . . - a vbo ; .i ; /.f.L 10 {'Oil ■; . F ■ - ; r'ji'! v! •: - F J 1\U i.'- : l ' i O ' D' F i . F . Fv-'Fbv' oK . :.0 foo ffo foo V ■/ i . .0 t OOf 0 0000; jfi Ft 0:0 0. ' F boF'.f O' : !?.■ ’ 0 i3 if i; : J-, ; ■ ; ’ .. - ." V : ' ■ ' : F .O'O' ;vOO.;:Onoo- v :■ Jo • Mf4 a ■.=!' J ,f ■ o O r of ■ f-c , ■' .; • i i ■ . ; b OrbO F.b: TfO f-, ,o-; ;n i !. J'-’ C.O'l.l~ jyi ;IJ J.Vv i.*v 0. “:‘l -Jj :«Y .i :..o.fF j .OF ; . O Fi ;i’o O , vol; O' j . ."f - ' : . OOr -.: on j !>#&••: a = :■:&?&!?* [■.■ ... 0 I O „0 i ' ■ ■. . : ... O- .' 1 i ../ooo OO'O 0 -j .FOG ; FO : :i/'00..' ;.'0 0:r - O.f b-oioo.. •• 'o‘ ■ OF': Of ..-.::. O F ..',.:,0:00 ;.' 0: FiC ; : . ?'.VF V-HJO.O OF- ,F. FF. ' : ■ ■ . ' i: ? . > ■ ' F\ - F-aFJFV." oFK;; ,;FF!,j ] 'O;;:..0.. F FOO'"- • F. f ... < ..'F- •; o vd‘ b :-f i - do ’ boioj . : ' ■ ?.■ ; r- ^ •• V O OFF i. ; O i AOOdOOoFj O dd J ... - F ;:^F ':OF ' .. . : ■ ' ■ O ; Id \ ; ,f J U0>n •' 0 f :i' b Sfi . f- ' . : F 4 : •; 11 o; f ■ F . - ■; J : i o : bF. ..•> F.. f ' i: -O ... ..bo a.f'f. o'f.: ;;.o/i ; o.i Jo ,.b FOOO ‘‘ :.v’ . , F .. .O". . O' : ; ilti / : i :o.o ■y O..o F.0:O -O.-.' : .".o ■. ;F , • -. , • - ..:;O0/'.:o...:d ■0-,d:F : /. .. • F ■■ b: 4/6/34 COOLIDGE NEVER RECONCILED TO WILL ROGERS BROADCAST Although. Will Rogers subsequently furnished all sorts of alibis to prove that he had been forgiven for mimicking President Calvin Coolidge on the radio, the late "Ike" Hoover, veteran White House attache, whose article "The Strangest Presi¬ dent" appee.rs in the current issue of the "Saturday Evening Post" reveals the fact that Mr. Coolidge never forgave the offense. "Rogers offended Coolidge when he imitated him over the radio", "Ike" Hoover wrote, "President Coolidge especially resent ing the nasal tone of the voice Rogers used. "Rogers sent a letter of apology when he heard about it but he never got back into the coolidge good graces. The President remarked that the actor had been a guest in the White House once, if he ever was again, some other President would have to do the inviting. " X X X X X X X LUXEMBURG SEEN AS GOOD MARKET FOR U. S. RADIO SETS The Grand Duchy of Luxemburg offers an excellent market for American radio receiving sets, according to a report from consul George P. Waller. The Grand Duchy has felt the depression less than probably any other country in Europe and unemployment is at a minimum. The standards of living, general education, and purchas ing power, are today probably the highest on the Continent, the Consul reported. Most all of Luxemburg’s citizens speak both French and German and is keenly appreciative of radio programs in both languages. At the present time it is estimated that there are about 12,000 radio sets in use in Luxemburg. Because of the general situation, the Consul states, there would appear to be a market for about 12,000 more sets, plus the eventual replace¬ ment possibilities. The 12,000 sets now in use are mostly expensive sets. Small, thoroughly good sets, for the table or desk, priced at from. 1000 to 1500 Luxemburg francs, should find a ready sa.le, Consul Waller believes. The broadcasting stations, located in Luxemburg, is so powerful, using as it does 200 kilo¬ watts, that low-priced sets, for use on these waves should meet with a good demand. Referring to automobile radios, the report states that there seems to be a potential market for from three to four thousand sets in the Grand Du cloy. As far as Consul Waller has been able to ascertain, there is not a single a.utomobile in Luxemburg equipped with a radio receiving set. X X X X X X - 3 - •JX ;•/, o ■ A - i ■ V. r )• A . , • . ■ 1 f< fii, : 'it ■: 4 C< o i. 3 1 ] ' iX.oc-0 riivi&is tf'sH** f. i&voqK t*oJi>jani .fc » ■■■ -oc„ 0O; 301 OV Wi'Cw lo -Mtcd I 0 m ! ; Cw i:\ i ' •■ ..'i •. iS , ;i i o ir'i' /i <£:• >X0 a 1 - 't&Sj , 1 a 4 :v .. .. . j \.--j . I .it ■ ■ 2 '0'7i - ." ■ ..-v > ; . . v* . tD-v-C X \ jl • • ‘ - ' •' ' "i i-dx : o ?.ff 108 . Oi.ooc ; ; * . v ^ .' I . : : 3 3 o. V v v O' V V j. \ „• v : *. .= v . j. . r r v>. .. ... i\',- • - . . - -i •• r- • v\ - •* f- -• • • t •*•••:■ v : ' .c , J .. - 5 • . b . . A. t mUy : :a id % ■ ■ - X 2 m ■ xQ . Vi : ks4 m ;v^ V i ■ o:. c !!>§,• t nm t ' , i .i/' vi ■ i ■. - • ;xo o ■■ ! &C a..'..' ; . . , 3 Xsi 1 1; : ft ts>. t :i V.: ’3 hesj\ -i' V v : i 5C -3 .... , , •„ . : . .’ . l it* xj.4 . ^ ib , ^ ■ i , a«; j-’UJ ■ . r' : ■' . . .■ : X . il ■ i&iM .. . ■■■ - 1 i$s zntiC : V ■■ V v ' . : ' . ' . ■ V .i . .... . . ■ ’ . . :: • L. .V ..i ■C 4 :■ . i ■...■ . ..a r l .:J 3-j .ya •; - ■ ' -j - .v j ' . . . '■ r . ' .. ' i - i • i'w . •- • . ’S XfLsii \ i ■; - .•'•;• . . • •• J 'fOiti & ' - -:i ■ . >;! 1 . , - ? .j .doc;. ’V1 c. X- ; .Cl.:- 0.0 '.DDJOl -O 'cl Oj CO vX ,oX .r.o'CO : J',.0. .. COO: , 0 V . » ’■ >T •*'. c- j /. >:• . o , L : . ; t. . . .- • ■ •• . C v.". • •o' '.o o : .to -V; CD.: OC .■.0:o , .id . o;o.,o ., .■ . ,.c a ml at . ,0.-0 COO o:. ■ 1 .* , .. V- Xj o‘t to'1: oo co: lo:.: .- .? o >o: -do o ... . "v .■,,.o .. : ■ ' : D nJ .. i - i . . a ■ s o ,oo: i , j mi ■- .• T ■ '• ■■ . .. .. ... s '.O' ■ , :: i : 0 , OO 0. O- o: Qi , : » ■ .-.Oo-’ : . sis i o ,. A X S' X X X 4/6/34 DILL APPARENTLY HAS THE VOTES TO REPORT HIS BILL The Senate Interstate Commerce Committee’s agreement to consider Senator Dill's substitute Communications Commission Bill, although on this occasion he only had about a vote to spare, revealed the fact that the Senator evidently has enough votes in Committee to report out whatever kind of a bill he desires. The Committee is meeting every day and it was said might be able to report the bill to the Senate as early as next week. There is still skepticism in certain quarters as to whether or not a Communications Bill will be passed this session. There were no shouts of joy or approval either from the broadcasters or the commercial communications people with regard to the substitute bill. "It's worse, if anything, than the original Bill so far as we are concerned", a broadcaster said. "Cutting out the fine of $1,000 a day and allowing the license revocation to stand in Section 312 is pure poppycock. If Dill succeeds in reporting this Bill out, he will have a terrific fight on the floor of the Senate. I have not entirely given up the idea that Senator White's amendment for a simple bill may not at that time receive serious consideration. " The Section in question (No. 312) in the substitute bill reads: "Any station license may be revoked, or suspended for such period as the Commission may prescribe, for false state¬ ments either in the application or in the statement of fact which may be required by section 308 hereof, or because of conditions revealed by such statements of fact as may be required from time to time which would warrant the Commission in refusing to grant a license on an original application, or for failure to operate substantially as set forth in the license, for violation or of failure to observe any of the restrictions a.nd conditions of this Act, or of any regulation of the Commission authorized by this Act or by a treaty ratified by the United States. " "If the A. T. & T. or the I. T. & T. can get any comfort out of the substitute bill", a communications man said, "I don't see where it can be. It looks to me as if Senator Dill has incorporated many of the recommendations of the Interstate Com¬ merce Commission and the Re.dio Commission but has paid very little attention to the protests of the communications companies. "Senator Dill made his last campaign on how he protected the public from the 'great big radio monopoly' and it looks to me as if he proposes to try to get himself re-elected by telling his constituents how he protected them from the 'great big radio, telegraph, telephone and cable monopoly. ' " 4 •r ^ ;rXr. . ■. iJ cj x.i.'i .. cr J" xo... \ . -X'x ; oj &;.■? v- c-. ; feUp : i ::i ;;p. j. ■- x ;• .iii-li ii -:ri . ;0 v , !■ , ’ v 'i •in ■ i "i.".: ; i'rv . -ix v^l X’ : XV- V £& -"III- W-.V Av.S’: '■ " . . XX .■ : vX ; .v vw XXXX'X'-* 1.x , v ••• x x ■' XX Xri : • . ' .-iXX; XXx • -ct" h , u W", X .•;• = . ' .• • /'i , • f ■■■■'(. • . . : ,T ; v.i XX . . •. •. ■ . ■' X‘ ££& Y5. XxxXxbX ■■'v. / i\! • .X X. -i 'i I.'".: ■ v X IS '; . ' ■ - v v =. :: U - Xx v, 7 . :. X:X : - ' v- <■ - s . . ..•■ . X. ; v 1. V.i Ir,: ..= ... :l W W •. ' .\ ■ ' fu : £ ’ ■ X p i*:t . ■ • J piX 1 . V X; V'vX';: XV, itQXDTqjf ■ :l ' t Q ■ .. m . . .. .:. .:. .; . J ■ . • • ' : i :? • : 7 [ r i.r i n f£ , - |> : ; : " '. ; i . 4/6/34 There has been a slight change - from one- fifth the number of directors to one-fourth, in Section 310, which now reads that no station license shall be granted to or held by "Any corporation directly or indirectly controlled by any other corporation of which any officer or more than one-fourth of the directors are aliens, or of which more than one-fourth of the capital stock is owned of record or voted, after June 1, 1935, by aliens, their representatives, or by a foreign government or representative thereof, or by any corporation organized under the laws of a foreign country." Senator Dill's statement on the new Bill follows: "Many of the changes made in the bill are technical and the new bill has been introduced to avoid the necessity of detailed amendments for each one of these small changes. In addition, several important changes have been made. "The definition of 'interstate communication1 has been altered so as to permit intrastate regulation of carriers where the line passes incidentally through another state. "The definitions of 'parent' and 'affiliated person’ have been eliminated because of the controversies as to any definition of control. Instead, where it is intended to reach parents, subsidiaries, and affiliated corporations, this bill uses the language 'persons directly or indirectly controlling, or controlled by, or under direct or indirect common control with any such carriers. ’ This will enable the Commission to determine the existence of such control. "The Commission is reduced from seven to five members, appointed for six-year terms. This necessitates two divisions, one for radio and the other for telephone and telegraph, instead of the three divisions originally intended to be created. "The Sections dealing with valuation and with extension of lines have been modified to meet changes suggested during the hearings. The Commission may authorize temporary or emergency service without regard to the provisions of this section. "The section dealing with contracts between carriers and subsidiaries and affiliates has been modified so that the Commission is required to investigate all of these contracts and recommend to Congress whether or not the Commission should be given power to modify or declare void such contracts if not in the public interest, "Likewise the Commission is directed to investigate and report on the desirability of permitting the states to set up independent accounting and depreciation systems; and also the desirability of having Congress allocate by law fixed percentages of radio facilities for educational, charitable, religious, labor and other non-profit organizations. 5 4/6/34 "Several questions of policy are yet to be decided by the full committee. "This bill contains a new appeal section which provides for review in three-judge United States District Courts of orders of the Commission which revoke, modify or suspend radio station license. Refusals to grant applications for new stations or renewal of licenses, may be appealed to the Court of Appeals in the District of Columbia. "The statute of limitation for reparation order has been shortened to one year in accordance with the recommendations of the Interstate Commerce Commission. "The power of the President to take over communications systems has been limited to war or threat of war. " XXXXXXXXX SENATE RADIO LEADER TAKES SHOT AT A. T. & T. HEAD Showing further resentment of the testimony of Walter S. Gifford, President of the American Telephone & Telegraph Co. , at the recent Senate hearings, Senator Dill, of Washington inter¬ jected some rema.rks into a speech being made on internal revenue taxation by his colleague Senator Bone, of ’Washington. "At that very moment reverberations of the panic were to be heard everywhere", Senator Bone declared, "but, says Mr. Gifford, the head of the Telephone Trust, one of the wise men of the East, from whence comes much of our financial wisdom: 'The foundation of our present-day standards are sound and enduring. ' Of course, the people of this country had a right to believe one of these outstanding business leaders, because he was tied in with an unusually effective organization that was cleaning the pantries of the American people as rapidly as possible, and that ought to qualify the head of the outfit to give plentiful advice to Americans. " Here Senator Dill interrupted with: "I want to call my colleague's attention to the fact that this is the same Mr, Gifford who appears before the Committee on Interstate Commerce and denounced as unthinkable, legislation that would give the pro¬ posed communications commission the power to declare void the inter-service contracts between the parent and its subsidiary and affiliated companies by which enormous rate bases are built up for telephone structures in various States, and thereby high rates for telephones are maintained to pay a return, if you please, upon the investment of the operating companies, when the parent company of which Mr. Gifford is the head owns the manufacturing company and the operating company and reaps profits from all of them. " 6 4/6/34 "I thank my colleague for that statement", Senator Bone replied. "Of course, it is obvious to every intelligent American that the men heading these monopolies are interested only in one thing, and that is dividends. They are not inter¬ ested in the welfare of human beings. They are creating by their greed a Frankenstein monster that will crush them. Instead of one man rising in the Senate to challenge this brazen affront- ery, a lot of men will sometime rise to denounce this truculent infamy that makes men tramps instead of free men." XXXXXXXXXX CODE AUTHORITY TO CONSIDER DRASTIC NRA RECOMMENDATIONS A meeting of the Broadcasting Code Authority has been called by James W. Baldwin, Executive Officer, for Wednesday, April 25. It will be held in Washington. Its principal purpose will be to enable the members to consider the sweeping recommendations of the NRA with regard to shorter hours and increased wages. If these recommendations are carried out, some fear it may jeopardize the entire broad¬ casting industry. The meeting will also discuss the report on broadcast technicians having to do with working conditions, will consider further the questionnaire having to do with radio artists and performers, and will take up complaints of alleged violations of trade practices. XXXXXXXX HOGAN TO STAGE FACSIMILE DEMONSTRATION John V. L. Hogan, television expert, will give a facsimile demonstration at the Hotel St. Moritz in New York, Monday, April 9th. It will be attended by representatives of the Federal Radio Commission; also other invited guests, includ¬ ing newspapermen. XXXXXXXX 7 4 4 A .AiC . - i :• 4/6/34 WOULD GIVE 25 % OF CHANNELS TO RELIGION AND EDUCATION Following the suggestion recently made by Father Harney, head of the Paulist Fathers in New York, who operate Station WLWL, Representative Rudd of New York, has introduce a bill in the House which would give 25% of all the broadcasting frequencies to religion and education.^ Senator Fess sometime ago sponsored a bill allocating of the channels for this purpose. The Bill of Representative Rudd reads: "Be it enacted by the Senate and House of Representa¬ tives of the United States of America in Congress assembled, That to eliminate monopoly and to insure equality of opportunity and consideration for educational, religious, agricultural, labor, cooperative, and similar non-profit-making associations, seeking the opportunity of adding to the cultural and scientific knowledge of those who listen in on radio broadcasts, all existing licenses issued by the Federal Radio Commission, and any and all rights of any nature contained therein, are declared null and void ninety days following the effective date of this Act, anything contained in this Act to the contrary notwithstanding. "The Communications Commission, herein created, shall prior to ninety days following the effective date of this Act, reallocate all frequencies, wave lengths, power, and time assign¬ ments within its jurisdiction among the citizens of the five zones herein referred to. "The Commission shall reserve and allocate only to educational, religious, agricultural, labor, cooperative, and similar non-profit-making associations one-fourth of all the radio-broadcasting facilities, within its jurisdiction, excepting those facilities issued to ships and to the use of the United States Government departments or agencies. The facilities reserv¬ ed for and/or allocated to educational, religious, agricultural, labor, cooperative, and similar non-profit-making associations shall be equally desirable as those assigned to profit-making persons, firms, or corporations. In the distribution of radio facilities to the associations referred to in this section, the Commission shall reserve for and allocate to such associations such radio-broadcasting facilities as will reasonably make pos¬ sible the operation of such stations on a self-sustaining basis. " X X X X X X 8 ; ;•"? . •. v;I ! [T x; xx.X.tx jx?;tu : ■■ j i?ol Eex ■: yr;:c,X X:' x ril xvXx -*';: '!• Xi 4 i.H-' ■' .X.x \X' X.'X.i. pXli , :XV .:. ...• xi x ; X: i .x 1 i*$ X .xxX ; v ■ ... U ■ a ■ «. ... .X.- ' J U .... . ; !J .1. . X X ;. .1 f ...• .c.UJ ;'■■■■ i in.!-:' ■ .. :■ ? . X.XV- W ... f f; f: U:; Ve v;:x V,; n. ■ ,■■■■■■: xxx J . i ? 1C • . "•ll-irv-: ■V;.! ; f .* ; .. . ; ■ j ■■■ ... I". v.:i xl-v- -vccnl Xv w \ i .:qc.- x: • ' . . . . Ci - :: J.:. I 1 i j . X ;:xx x: : xx" ix'i ni : • ■ . x ' . . .. :,i . .x ' x ■ I; -:. •■> :xx.v ;; :x- ,1; ; ■ .pro:; xCi.v pc XX: -: j‘ X.x ■ ' 'C >/ xX.X £ V •■•Ja ex ; >rr,r,r ' ■ * x V-' ; J. • '/'..‘a. ’ X .•'.£ ' t' i V. ’ XX .; X X , , . .. x ■; r X px...: h'sd : x - : .(xxx x-xX . .." '... x x-. xu.x; : > x- .s' ■ v' . ; ;i xlxxo- ix.x ; X ■. ■; • * * ?• . •* ; xv i •: c *t *'v • \ : - ; •• " •* ' • r • •• . • • *- s.* - > : f. ; x ,, x ,v j .... x. px-x x > *, x .■ x x . xx ; 5 ", f;/; . ;Ox xxx i ' x- ■ ’ . x.X:.' ■.. .../X V...i / .. XXX ; pX .X'X.) .1 l XX X X. X ; v x:.; .XX Xj: XX >•••■■ . .x.x: X 'k% : X , ; “• t" • • •• ■ “• Xv . f < •. A X' ?• "V > *» ■ - ; • ' •••• - ■ •*- - ,;>4 -• - - *"■ c -r “ * ; : - r,i ' X '. r T.i 4/6/34 STATE POLICE NOT TO OPPOSE CLEARING EXPERIMENTAL BAND Following a conference with Judge E. 0. Sykes, Chairman, and Dr. C. B. Jolliffe, Chief Engineer, of the Federal Radio Commission, Captain Joyce of the Massachusetts State Police, Captain Lyons, of Michigan, and representatives of New York, Pennsylvania and other State Police systems, the police officials returned to their homes and decided not to oppose the clearing of the band of 1500 to 1600 kilocycles band now occupied by some police stations for experimental broadcasting. The police officials were assured by the Radio Commis¬ sion that changes will be ma.de on- the proposed police radio channels reallocation, to go into effect May 1, which will eliminate most of the difficulties complained of and will provide good police radio for the complainants. Engineers were much impressed by the complaints filed and it was agreed that some shifts are necessary but they are convinced that operating conditions of the State Police systems can be improved without abandoning the proposed reallocation. Just what changes can or will be made has not yet been decided upon. The police officials will have another conference with the Ra.dio Commission before the end of the month when it is expected the proposed changes will be decided upon and approved by the police officials. In the meantime the engineers of the Commission are giving serious thought and study to the problem. XXXXXXXXX MONITORING STATION SEEKS BETTER SUMMER RECEPTION Identical Bills were introduced by Senator Thompson, and Representative Burke, of Nebraska, which would authorize the purchase of ten additional acres of land adjacent to the U. S. Radio Monitoring station at Grand Island, Nebr. This is to provide space in which to extend the station* s antenna so as to improve summertime reception. The Grand Island station was erected in the center of the country so as to be in a position to keep accurate check on whether or not stations keep to their assigned frequencies. Grand Island is likewise able to check frequencies of stations all over the world. X X X X X X X 9 .. .. . . -v r <' : • ■ ‘ ' .. - :r: :r : X'9-J . . .• ‘ *• ■ ■ '■ .. . i • ; nor. " ■ ■ ' IS fO ,:v ■ "i^srlO .'..•if. V .0 a 5 • i -A' : i ■ :• V: v;;:;.:'LO H: :.ij i o OX . <1 q :;V.ir:-A '% . . /T " ilSZlrfXjXM "\jh .A. AO I x , : . o A A' A. ol I o'* -...‘Ate -: j v .s : . /.V:, . v . >; : :yi > n ,v iu j a ... va-a - : ■-/; . .A v l oJ A "i q >. : < r>: . r. -ji-T "1!Cr r: -i'' I AAV A ■.'? . : •' ." ' ' -'... 0. \ i ■ ’ i ' j.e.'; V. ' ■' ■ v‘-' A ■ ■; A; . ■ 09 if1 OCi .A ' ■ AO. o ' : .a oSi V; Xors'iU :■ c$ aa A a A AA t L ... :S' .... A ■ ; : - ■ V 3 5 J. -i. ' : ‘ .i ■' ‘ ' '■ : .. . • - . J :AA .. . i . .A? .A . A . ; . %i.i Xt OXZQti -1. - i j j . ! ■; ■ j -il : . . :V r. v ; o 4- /: * l O : • / *:' • - ; ; • . i ' « , : : • i\ j : i : ’ ’Cr V-'-iw. j;1 ;c ; Cut J :4 iXMi O x J ■ :•••; i r f . . ;CtJ Hi" : fi VS > •- J. : a J:: o' 11 X '? .. •- i = o v • v . _ ' bcihlorkou o:iX :i . ; : . v / '■ ■■ . : >0 i ;:VX V . : tJCUv ./ V . --i . -.V. 'X c. •_ -.1 i . ';v> ' V', .i: .■ . ... ■ I ■ . ill . ; ; . j. . .V , . y. . \ .i.: .9 Lh OOjoX ■ i w ^ to •- C i- v i t. u.V.1 t J- J • i iv. V.:v rs,i. - V; j . ' a v ? V- ns x. ■■ ■ .. i ' boss ; f • C ? WH .it :C?V? V >3 i Sls-i; ifw :t f.- i-v}j -;vt n • . :.:i i, • i . v: ..xciX xl . '?• v-p "i;l K'-.jO’j op ■ J. ;• i j : ■ o; ■ : V t A A A >: 4/6/34 SECRETARY ROPER TO BE HOUSE COMMUNICATIONS WITNESS The first witness to testify at the House hearings on the Communications Bill introduced by Representative Sara Rayburn, of Texas, will probably be Secretary of Commerce Roper. So far as could be learned at this writing, there is to be no further postponement and the hearings will begin next Tuesday, (April 10) at 10 o'clock. Interstate Commerce and Federal Radio Commission representatives will then be heard followed by Henry A. Bellows, representing the National Association of Broadcasters, and repre¬ sentatives of the communications companies including the A. T. & T. I. T. & T. , and RCA. The hearings, if they begin as scheduled Tuesday, will probably last well into the week. X X X X X X X REPLACEMENT SALE FIGURE NOW 63 PERCENT Columbia has issued a brochure entitled "The Flood Hits the Spillways", a 1934 sequel to the 1933 report, "The Flood Hits the Valleys. " This is an allocation by States of radio homes as of January, 1934. "Through the cooperation of the McGraw-Hill Publishing Co. , we have obtained records of set sales by States from all leading radio manufacturers and have surveyed over 1100 radio distributors and dealers throughout the United States in order to determine the percentage of replacement sales for each State", writes John J. Karol, Director of Market Research for Columbia. "It is interesting to note that the 'replacement sale' figure has now reached 63.1$. While 3,806,000 sets were sold during 1933, only 1.138,600 were sold to homes which previously had no radios." XXXXXXXXXX ARCTURUS CLAIMS SALES TO 43$ OF SET MANUFACTURERS A recent survey of accredited radio set manufacturers in the United States shows that the Arcturus Radio Tube Company, Newark, N. J. , sells its tubes to 43$ of the total, according to a statement given out by that company. "It is believed that this constitutes a high point for the number of set manufacturers who use one make of tube", the statement continues. 10 r. • • o. . • : X . . ...o . ■ a. x „,>,1 x-x.XX vtf . • . X i . . : . x" on . 1.- :!x.. xxx: xx;r xx ; x.Ixc .T »A xt xx:.o;:.xx..i zpXczHiiinti'i. hiXQ'J. j or .irooxo. ■Xiigtc TJ: . , . ; o - ' i ' ■ , • •' ; ; -z-jctt ll.-v r .» m- ■ ■ ... , i- X X X X X X X U'x:x; id vyi ..xrx:rx xjas t~- x; ■. xi X'Ixtj/X y xxsXtxiX'x; ,;. ix xc i :x;X XX::;; .LX" . •; XX 3 ;; bf lyi-p :,z • i ,:.xx. .... v;:., n o 1 : '• 1' X . • , .r *; ; v . ; ■ 1 . X X; x XX :. jqcQo vX ;;V;: Xto X X X X x . x. v O h bx '• XiX': .'X X . • : • I -ox.X . . .; : . ■ . ' X • :X X;XX XX . X ■ XU ■ 2> x.x X'XXxr jx jC:::X>;;-.jXXvX XX ■■ -.X:. x - tdJ Xilzr: XT X -Xx'. : - :.X' XxXxxX tc T-X; C! iol . r : : X . y. x x a .... . , , , . •; V-. .‘V . , ,xv ; X ■r :XX.!AX x.xX .xi.x . X xx \j- .. ; ; .... ... • J •- ... .• - V. . ...^ Xo v. .• XXX .' .-•: -x -ij ■ ■ -'X:. .XX X .xlt yv< X ..t Xx' Ixx X''’4-’ C- J A A X ,v X X X X ii.:X * vriXviXiQ.':) ,:X JX vj :>X'. :,,.; .x; xx . . ■ . : .; ,X- a xx, T'X-f Ho zhti ■■ / . LX. A] xr X x: t o u . ; i '■ r. :x. OiV*' n ,'i ;.xXx-x to; to to; r.'i» 4/6/34 "Many receiver manufacturers in the 78 foreign countries where Arcturus are sold, also use these tubes exclusively in their sets. Collectively the number of these foreign manu¬ facturers totals considerably more than those served in the United States. " X X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (April 6, 19341 KEX, Oregonian Publishing Co., Portland, Ore., C.P. to move transmitter from Portland to North Portland, and install new equipment; KRMD . Radio Station KRMD, Inc. , Shreveport, La. , special temp, authority to operate from 7:30 to 9 P.M. CST, April 8, 15, 22 and 29, 1934; WSFA, Montgomery Broadcasting Co. , Inc., Montgomery, Ala., C.P. to make changes In equipment and move transmitter locally; WQDX , Pape Broadcasting Corp. , Inc. , Mobile, Ala., C.P. to make changes in equipment and move trans¬ mitter from Springhill, Ala. to Mobile, and move studio to same as new transmitter location. Also, KG-CR, The Greater Kampe ska Radio Corp., Watertown, S. Dak., C.P. to change transmitter locally in Watertown; KBTM, W. J. Beard (Beard’s Temple of Music), Jonesboro, Ark. modification of C.P. extending completion date to May 2, and change studio location in Jonesboro; WHAM , Wilmington Radio Association, Inc., W. Durham, N. C. , modification of C.P. to change corporate name to Durham Radio Corp. ; WSUI , State University of Iowa, Iowa City, la., special Temp. Auth, to operate from 4 to 6 P.M. CST, April 13 and 24, 1934, and from 5 to 6 P.M. CST, April 14, and 28. Also, Mackay Radio & Telg. Co. , Inc. : WIV, Sayville, N.Y C.P. (fixed public pt. to pt. telg., 10490 kc. , 50 KW; New, New York, C.P. (Exp. Gen. Exp.), 86000-200000 kc. , 250 watts; New, Southampton, N. Y. , same as for New York; KWC, Palo Alto, Cal. , license (fixed public pt. to pt. telg.), 8850, 13015 kc. , 50 KW; Veryl R. Fuller, College, Alaska, special exp. C.P,, frequencies 2398, 3492.5, 4797.5, 6425, 8655 kc. , 150 watts, also granted license covering same; WNC, American Tel, and Tel. Co., Hialeah, Fla. , modification of license to add Barranquilla, Colombia, as pt. of communication; Geo. Carlyle Whiting, Camp S-82, Waterville, Pa. , and Harold 0. Bixby, Baltimore, Md, , applications for new amateur stations for use in C.C.C.; KHNCX, National Construction Co. , NC-447-W, and KHPKP , United Airports of Conn. , Inc. , NC- 13300, renewal of aircraft station licenses in exact conformity with existing licenses. 11 - , -.si ' - : : w : ; t A ' ' r v . ' • ■ ' ■ &! •*■; • . Vi. rjrj rr'SJa, cO r$&&% ; o ,. i ’■• f t Oi j ,; ■ > \ \i f .. . ; , ’ ' i •■•■'’ ' <* t ■ .;. •.,• ... •. ... v ' : t : l-'V’.or. , v ; -i •...-{. • LVv'fi ,v.< : ■ r OX ■■>0 . ; < : -• .v. ■ :■ ■■ fj..5..;V> 0>/>. %■ C vo: :/-ooo. ■ uit&i .O.'jX BO :;o :; .XXOV.; ; V.r '? ‘ ; ; . ■ v\"': is pa .i u :o;.o.n:olv: • j U V- r'. .... i ... . . .... ,. o x/:X,X ; S;. JL X ; ; ■ *: l a BOX ; *• • . *• ; f >1. ;rO:.L ; CO X:. ;b:'-'0 j.'O l 0 :v ' ; ' ; •' •; ■■ * . ; > i " . . ' 1 ’ o,i. 0 v..t :'i; :a: oo-Oo = * * * » - •. ; s " 5 c T o’irr, • . * • • , • V./" <:.! ■./ »S0 .1 ■:. ' :v.L f..; •• • ■ •“ • v % . • && rPJ>i f‘ : :►■ : . . . i . . ' : "a fO.‘ -V. -AX v;o'. rvl a X .;j • <" , • v r ■- £■»■ • ■' v-v ;»•. • , .-.-i ’**" • .... +* .*./ f ; / r U - - * •- • vo-.v,-. ,v . ■•; SiJU , *• , * -0> . • . . - ; i , , ..Aol X ^ ♦ ?'O0'" Oi .. M i ■. , ;; ' r':. X>Br; x .. :;’v i • ■ i •>- . v.: • ' ■ Pi i ' "■ ■ , ■ ■ . ?. .... ■. /.■us :.: lUv MiLl ■■■■■; \.0;M - /■V ;'/v ■ ■■ - v ' ■; . ; ■ : .,;-v -• " •• -s "V/-. .* . * . w. , .. , . . , . -.. ; V. ■ o ■ irc ’ • - I.-.;-' i/. . ; . t . L -i.r . ^ " \7>^ ■ • ’ . ■' : .X .-'j r; . .yXl-' i-'Sj'L r .v c-‘« ■■ ' i\?t ■ ■ : | . .■ . ' .. 'l-v - ' j j .1'-; . <.(■■■■'■■ v;. ; .. ; S.+A': ,x: i:i\r. : .C. . . " r..i X-'-r' o':.: ^-/rr;. f ; x- - ••••• x (1 .c ?e IX :.u.; X : X:-:.o . .: I ..Li! vX'-I ■> • 4/6/34 Also, W2XBH , Radio Pictures, Inc. , Long Island City, N. Y. , W2XAI and W2XDJ, Bell Tel. Laboratories, Inc. , Portable and Ocean Township, N. J. respectively; W2XA, American Tel. & Tel. Co., Rocky Point, N. Y. , and 7/3X0, same co. , portable; RCA Communications, Inc. : K6X0, Kahuku , T. H. , and W6XI , Bolinas, Cal., W10XC, RCA Victor Co., Inc., on any aircraft initially NC-292-W - all granted renewals of special experimental station licenses in exact conformity with existing licenses. Miscellaneous KOIL, Mona Motor Oil Co. , granted regular renewal of license as company has amended charter empowering it to engage in radio broadcasting business; 1/70 DX , Mobile Broadcasting Corp. , Mobile, Ala. , Examiner ordered to render report on application for modif ication of license substituting the name of Pape Broad¬ casting Corp. as Commission previously granted permission of receivers to assign license to that corporation. Report held up by legal complications which have been removed. Ratifications Action taken April 1 - WDDQ , Willis Navigation Co. , Seattle, ’Wash., granted 60 day authority to use additional fre¬ quency 2126 kc. , vicinity of Seattle, aboard !iZaporau; Action taken April 2: City of Oakland Police Dept. , Portable & Mobile, granted 10 new CP's to communicate in the police service on an experimental basis in accordance with Rule 320; frequencies 30100, 33100, 37100, 40100, 2 watts; KMOU , Mackay Radio & Telg. Co., New York City, granted 60 day authority to qperate 100 watt transmitter aboard "Edward Pierce", 500 kc.; KFWF, Same Co., granted 60 day authority to operate 100 watt transmitter aboard motorship "Ranger", 375 to 500 kc. ; WSCL, Radiomarine Corp. of America, New York, granted 60 day authority to operate aboard vessel "Eagle", frequencies 375 to 500 kc. , 500 to 17000 kc. ; Action taken April 3: KJOI , Mackay Radio & Telg. Co. , Seattle, Wash. , granted 60 day authority to operate 1 KW spark aboard vessel "John C. Kirkpatrick", frequency range 3 75 to 500 kc. ; Action taken April 4: WMEX . The Northern Corp. , Chelsea, Mass. , granted modification of C.P. to extend completion date to May 15. XXXXXXXX INFORMAL HEARING OF RADIO NEWS SERVICE APRIL 11 There will be an informal hearing on the petition of the Radio News Service of America for modification of Rule 232 of the Radio Commission's Rules and Regulations. Other concerns notified are: Radio News Service of America, New York City, Postal Telegraph Co., New York City; Western Union Telg. Co., New York City; Press Wireless, Inc., Hicksville, N. Y. ; American Radio News Corp. , Tropical Radio Telg. Co. , and Mackay Radio & Telg. Co., New York City; Globe Wireless, Ltd., San Francisco, Cal, and RCA Communications, Inc. , New York City. * XXXXXXXX - 12 - r a a: 0 r. "■ i 0,f ;• .r ;-Y .• jay ; :• a ; . ,, ,o;) 1.10 ,;... t.u. '• ; I- U: a. jO yMM; : .M: , XOOg rpabrirarra ..MM .. ». ,= ,, - : / •' .. | : M, “i -a a.MM / £:^VJp';-C a/.M.aM'. , , ;M ,;Ma a' *0 hM OM? MilJcS-X O' ft ' ■ i ‘ i. ' r • • 7 * V.r .MO,; ? ■- > .... -M Mm .M aac; . i . . i ■ ,MMa M.M ':■* i-:- t a. • : M • ■ ' M M.$. jMManM MM ."! v o a: .r M 'M NATIONAL BROADCASTING COMPANY, Ins, GENERAL LIBRARY, ROOM 615 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. G. CONFIDENTS L — Not for Publication INDEX TO ISSUE OF APRIL 10, 1934. Broadcasting To Be Taken Up In Final Splawn Report . 2 Ralph Atlass Increases WJJD Holdings . Senate Reports Madrid Radio Treaty Favorably . RMA Code Changes Delayed . Senate Committee Adjourns Until Friday . Arcturus Issues Booklet On Century Of Progress . "Radio Pen" Demonstrated . House Starts Communications Commission Hearings . Listeners' Reactions Tested By Electric Light Rules. Business Letter Notes . 10 General Harbor d Kids Sol . .10 Broadcasting Code Authority Meeting Postponed To April 30 . 11 Some Recent New And I enewal Accounts Of NBC . 11 No. 714 uOio c- cococo o> cr> April 10, 1934. BROADCASTING TO BE TAKEN UP IN FINAL SPLAWN REPORT Although the preliminary report on communications companies submitted to the House Committee on Interstate and Foreign Com¬ merce by Walter M. Splawn, Special Counsel, contained certain references to the broadcasting industry, notably salaries of its executives, a more complete report may be expected later. The first half of the report, about 100 pages, is devoted to the telephone, telegraph and cable companies. Approximately 50 pages have to do with the communications companies and but 9 pages with broadcasting companies. "In the final report on radio companies", Mr. Splawn states, "broadcasting companies will, to the extent that the nature of their operations permits, be given consideration similar to that given to radio communications companies. " In the conclusion of his preliminary report, Mr. Splawn say s : "Some of the big companies are very much interested in being permitted to consolidate with other corporations. The fol¬ lowing proposed amendment to the Interstate Commerce Act seems to embody the policy tentatively agreed to by representatives of the big companies: "Upon application of one or more companies solely or principally engaged in the transmission of written messages by means of telegraph land lines, cables, or wireless, for authority to consolidate their properties or a part thereof into one or more companies, or for authority for one or more such companies to acquire the whole or any part of the property of another such company or companies or the control thereof by the purchase or exchange of securities or by lease or in any other like manner, when such consolidated company or companies would be subject to this act, the Commission shall fix the time and place for a public hearing upon such application, and shall give reasonable notice thereof in writing to the Attorney General of the United States and to such other persons as it may deem advisable, and after such pub¬ lic hearing, if the Commission finds that the proposed consolida¬ tion, acquisition, or control would be of advantage to the persons to whom service is to be rendered and in the public interest, it shall certify to that effect; and thereupon any act of Congress making the proposed transaction unlawful shall not apply." Mr. Splawn says that back of the immediate urge of con¬ solidation are the financial difficulties of the Postal Telegraph Company and that the I. T. & T. is anxious to be rid of the defic¬ its being accumulated by the Postal. 2 . A---:.; - n j ; A / • T'V. • :;7 rs~ ; j.;vr • .'. v . •••'• " v,A ; ; > 'V;:..r : « : £ • - ,,f. rr^pTi S. • ./ ‘b ; i'-. : , ■ ;V:\ ' ?. : :/•'■. :i- : , -i- & 7 : :/'i- 5"Tyslv '• -i v-;. ' V -J ■ ■-• .. - :'c-.- .* •' j . ‘i < J M. ■• .' 7/ : A . \ ■ - .. i •'■ : Xr /'V,..;. v “ , , ■ ^ =oj. x-.-ot <.V ,v;: ■ . ■ j a ' ! r ■ ■ ■ ■ ; .• , : ,• •• ■ ■; .. :v 1 ‘'vj-.' • . ; .rsc' Xxxv. ; •* I *’ •• .• - i h! » /l -1. j V’ *.'• "*'J .‘ij O' y-U i •A--’-' f •? . r •_- v\t c an ' • •• sa r •! /j* •*% :■ - • » , • 1 v -7i.A f; 'Vviii ‘-.A. vV !• i!".! 1- i U ; . •. " , • J' -vv.r: li&iy; > " ;■ . : r ; f . "• . yj- Jr v'/;.. . / :■ !. ’•’ < •• ’*• ■ ; ' Ci-f4»P i. • i J. ; 1 j ' 1 - v v.v. j. ; 1 si.;. ■ ! ■ . .Ui ■ Uji'. ■ ' ■; ■ T\ •/: . . / , '-'.V.L v5-V: .. C • 1 1 .0T: \.j. . ,,;:j •.>!'•! ... .. • ' ' ‘J[ ’Cirri' ■■■' . J: li'jup oAtWH ■' ■ v j 'T)w£i 'X : ■::J . .;• v.;-;-; v..; . J ’• i.J Xyr-f .Jr.i--'’ :: • .•-• :i : -';.TO ':J; K; ■ -’1C . J J ^ : vto V:;:-VC-0'p •.=. ‘ r, : ;»i,t ;; i \ jj :,L U^yjy, . Djj . •/ ' : ' • ■ . : J. r... "/ .■ : ■ \r Syj !•; >0 v_. ;r •( . ir\o o,: •' • • / rr;v . -..if-' 4. v- - l: £■ <•. ' ■■ . ••• .J jyjlr-'-'-'bj X • ‘ic "• ■■ JJ \bO )j4 ni Xx -'. .Vi ■ vX; ; .: ..: u'i .. f. : y ■ , V.I : - .1 OH IX I;./ V,-' Xi C-; . : . - X I i ' sV ' .'• : . . :■ X 3.'i . . V • , . : ■.:! ;4i y:i j ,%ii5 , .'. V ■ ; .:-j.S J > L j- X S ‘ 1 l.v'...- X .■ .1. bbJ ■ i. . ,•>: .,.' . T • . T XI !..I > ' ' . j v-i r • X U- . : ■ ,t ' ■' ■■ ; i b 4/10/34 "Such a proposal is however contrary to the spirit of the times", Mr. Splawn concludes. "If such a consolidation were to be authorized, Congress would no doubt take measures to pro¬ tect the present employees of existing telegraph companies againgt summary and arbitrary dismissal. Again Congress would want to be satisified that if telegraphing by radio were to be furnish¬ ed by companies that own lines that the merger would not be the death warrant to the new and developing wireless industry. " The annual salaries of some of the executive officers of different companies for 1932, as given in the Splawn prelim¬ inary report follow: Radio Corporation of America: Owen D. Young, Chair¬ man, Executive Committee, $40,000; James 0. Harbord, Chairman of the Board, $48,000; David Sarnoff, President, $55,625; Manton Davis, General Attorney, $18,645; Alfred N. Goldsmith, Vice President, $16,500; Otto S. Schairer, Vice President, $23,250; G. H. Porter, Vice President $12,000; George S. DeSousa, Treasurer, $15,000; Louis McConnach, Secretary, $9,375. RCA Communications, Inc. : William A. Winterbottom, Vice-President and General Manager, $15,200; Charles H. Taylor, Vice-President, $15,200; Arthur B. Tuttle, Treasurer, $5,225. Radiomarine Corporation of America: Charles J. Pannill, Vice-President , $14,250. R. C.A. Victor Co., Inc.: J. R. McDonough, President, $25,000; W.R.G. Baker, Vice-President, $25,000; E. A. Nicholas, Vice President, $20,000; I. E. Lambert, Vice-President, $15,000; J. D. Cook, Treasurer, $7,500; Paul G. McCollum, Comptroller, $8,000; Francis S. Kane, Secretary, $5,040. R. C.A. Ra-diotron Co., Inc.: E. T. Cunningham, Presi¬ dent, $28,296; G. K. Throckmorton, Executive Vice-President, $20,000; W. T. L. Cogger (succeeded in 1932 by J. C. Warner), Vice-President, $11,326; G. C. Osborn (succeeded in 1952 by J. M. Smith), Vice-President, $12,376; F. H. Corrigan, Secretary- Treasurer, $13,096; F. H. Thorp, Assistant Secretary and Assistant Treasurer, $5,238. R.C.A. Institutes, Inc.: D. Orland Whelan, President, $3,775; Charles J. Pannill ( elected president July 28, 1932, suc¬ ceeding D. Orland Whelan. Mr. Pannill has not at any time receiv¬ ed salary as president of this company); Frederick R. Bristow, Vice-President, $1,138; J. C. Van Horn, Vice-President, $1,400; Ernest C. Elliott, Treasurer, $2,185. Radio-Keith-Orpheum Corn. t David Sarnoff, Chairman of Board, None; Hiram G. Brown, President, $80,000; M. H. Ayles- worth, President, None; Joseph Plunkett, Vice-President, $45,000; 3. B. Kahane, Vice-President, $36,000; Herman Zohbel, Treasurer, $18,000; William Mallard, Secretary, $13,500. 3 4/10/34 $22,917; John L. Merrill, $39,685; Henry B. Orde, $24,750; Frank C. Page, $17,415; Frank W. Phelan, $22,915; George E. Pingree, $29,790; Wolcott H. Pitkin, $22,915; Lewis J. Proctor, $23,835; William F. Repp, $23,165; Logan N. Rock, $17,665; John K. Roosevelt, $18,700; Lester R. Scovill, $16,040. X X X X X X RALPH ATLASS INCREASES WJJD HOLDINGS John F. Ditzell, President of the Columbia Phonograph Company announced the sale of all of the Columbia Company's stock interest in the Public Broadcasters operations of Radio Station WJJD, Chicago. The Public Service Broadcasting Company, Ralph Atlass, President, is the purchaser. The Public Broadcasters was the wholly owned sub¬ sidiary of the Columbia Phonograph Company and was operated by the same executive personnel as the parent company. The consider¬ ation or terms were not announced. The Receiver for Grigsby-Grunow Company has announced that all shares of the Columbia Phonograph Company, now owned by the Receiver of the Grigsby-Grunow Company, will be offered for sale April 16th. 79,076.45 shares of Capital stock of the Columbia Com¬ pany of a total outstanding shares of capital stock of 82,523.89 are among the assets for which Frank M. McKey, Receiver in Bank¬ ruptcy for Grigsby-Grunow Company, will accept bids. X X X X X X X SENATE REPORT*?- MADRID RADIO TREATY FAVORABLY 1 The Senate Foreign Relations Committee considering the international telecommunication convention, the general radio regulations annexed thereto, and a separate radio protocol signed by the U. S. delegates of the United States to the Inter¬ national Radio Convention at Madrid in 1932, has recommended them to the Senate favorably, without amendment. A dozen or more countries have already ratified the Madrid Treaty and it is expected that the Senate will follow suit in behalf of the United States. The Madrid Treaty contains no radical changes, it was said, but simply brings up to date the Washington Treaty in 1932. The telegraphic regulations attached to the Madrid convention, in effect, increases the rate 20 percent on all messages over 10 words. This is caused by reducing the number of letters allowed in a code word from 10 to 5 but by reducing the charges only 40 percent. Although the United States is not a party to 5 4/10/34 these regulations this country will nevertheless be affected by the increase since so many other countries are parties to it. Judge E. 0. Sykes, Chairman of the American delegation said that the convention signed by the American delegation at Madrid contains only statement of general regulations, most of which are applicable alike to radio, telegraphy and telephony. "An inspection of the General Radio Regulations of Madrid and a comparison of these regulations with the general regulations annexed to the Washington Radiotelegraph Convention will show that the general radio regulations of Madrid follow the regulations of Washington along broad basic lines, and that it is only in matters of detail here and there, where an improvement in the existing regulations could be made, that changes were found necessary". Judge Sykes said. Under the Madrid Treaty an amateur radio operator may only exchange messages with the permission of the two countries. American amateurs protested against this and in reply to a question on the subject, Irvin Stewart, of the State Department stated that under the present radio regulations amateur stations may exchange messages. "The committee reports of the Washington conference which drafted the present regulations show that the most. active members of the committee were intent upon protecting the reven¬ ues of the public telegraph service (in most countries a govern¬ ment monopoly) against competition by amateurs handling inter¬ national messages free of charge", Dr. Stewart continued. "The official French term which was translated as 'private nature' is *caractere personnel.’ The debates at the Madrid Conference showed that most governments interpreted this to mean remarks of a character personal to the two operators, i.e., as not permit- ing amateurs to excha' .ge messages for third persons. "The principal difference between the provisions now in effect and those against which a group ofamateurs is protest¬ ing is this: Under the American interpretation of the present provisions an amateur may exchange international third-party messages unless the exchange is prohibited by one of the inter¬ ested governments; under the Madrid regulations he may exchange such messages only where both governments affirmatively permit. In both cases both governments must agree; the difference is in the way the agreement is indicated. In all other respects the language governing amateur stations is unchanged; and most govern¬ ments insist that this is not a change but merely a clear state¬ ment of what is intended by the present regulations. "At the request of an amateur radio organization the Department of State is requesting 15 governments to agree to the exchange of third-party messages by amateurs. To date only one has replied; China has refused on the ground that all amateur stations are illegal in that country and those which are operat¬ ing are doing so in violation of Chinese laws." X X X X X X - 6 - 4/10/34 RMA CODE CHANGES DELAYED Further and indefinite delay in revision of the Electi - cal Code has occurred in Washington. No action is expected before May 15 and probably later. The March meetings in Washington of 4,000 code authorities and trade association representatives, the automobile labor situation and other matter £ deferring decisions on new labor and other NBA basic policies, have combined to delay action on the Electrical Code, according to Bond Geddes, Executive Vice-President of the Radio Manu¬ facturers’ Association. Conferences between the NRA and the National Electri¬ cal Manufacturers* Association, the general Code Authority, are continuing. The Code Committee will meet in New York tomorrow (April 11) to consider responses to NRA for further and import¬ ant revision of code hours, wages, the "open price” plan, trade practices and other features. An unsettled general policy of NRA, the future of the “open price” plan, also requires final determination by the Government before the Electrical Code and its "open price” plan can be finally revised. The "open price” plan has been referred to a special Cabinet Committee consisting of Secretaries Roper of Commerce, Ickes of Interior, Perkins of Labor and Wallace of Agriculture. Other factors in delay on the Electrical Code are indicated but as yet unofficial policies of the NRA, setting up in each industry s labor adjustment tribunal similar to that established for the automobile industry and consisting of one industry, one labor and one neutral representative. Also NRA has informally announced plans to place labor and consumer representatives on all code authorities. "Open price" operations are being considered by RMA variable condenser and also fixed resistor manufacturers. Mr. A. Bloom of New York is Chairman of the vairable group under appointment of Code Supervisory Agency Muter, and Mr, Ernest Searing is Chairman of the fixed resistor group. Following a meeting in New York last February of the variable condenser group, another meeting was held in March to continue study of operating under the "open price" listing plan. XXXXXXXX 7 a:;iVAd>c xx-cxAio 3cioo mn .1 • \;XX XX '■'.. .v?cX .; fv itj V-'I >i> f.Xj :v.\X -a/Li h , t - t- ;’\rxx •*.- uj: - T ' . 'V • A -:/X.T X. A -v r v ; '-X \..X. • • ■"?: xv- : a At ; : . qocf..;.f. a.CAX XX0tA .••• ;.c A; . ,.r i’-s; ; ; . . t :: • U;/A -i,: Ti Xu > i ■ • . ; •. 1 ■ • .•■ .t ■ . - j- ■ .L-i.} vi •. ■ * v o * no i~ i.c j .» cv.:* Viiioo c ■ *) sn c5-^ ;;aaX ‘X/" x iuv'.X -5/ Y ■/ vX/ix;/ vx-i , a atAxO i ra ,;ici-v :: ; :>C .‘LA r XT •: J.:. - X iX : .-XX .;.vx;> .A; vX . I A/UI o*;.t : axj-v: a xu: /-/ /Anx ' • w , '.X • a: • ••X-. 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X r. ■?: vr ' ■■ - • v/X .cfA.n: a- / •. v ■ X .::o- .;/.> • vq j X/'.-Xv-.-a.;: ' ’ z XI : a x .X:/, . .•vXxaxx ;aix .X'X.r ;■ . a/it n;/ XV /.X X;a- tocli^l aaria ... • hx^O-iV-i: i.l.- ■ ■ ‘In ■ 3 .a Xli- i;C* / •/ ' ' X /.Xi'IS sh.. rJv..:-: Lav as > i u • . X X;u- . v 'fv- v-- ; : . i xa vX v.X; Vr:lv X-f,:- ; ■ -V -i/A/ •r.-:;. v:" •;*/. X-vX- a - : XX ./-.'Lei if; X v.. ;Xr'- a/ ;..:.Xv/ ■/ r f :,v ; ' •• '1 ' a ■../ - ' -i “ r*- ^ • c/- c-j qi .t-Iv;: / xniXv .ax xaxX :.t/ - T: - . ,./A.v ’v.X/: i. ";0/fq : q a : \ r\ A A ; . 4/10/34 SENATE COMMITTEE ADJOUNRS UNTIL FRIDAY The Senate Interstate Commerce Committee considering the Dill Bill has adjourned until Friday and will not meet before that time unless especially called. A report to the Senate on the Dill Bill was expected early this week but evidently more time is required. XXXXXXXX ARCTURUS ISSUES BOOKLET ON CENTURY OF PROGRESS The daily feature of opening the Century of Progress with the light from the star, Arcturus, has served as the basis for a booklet and a window display unit just put out by the Arcturus Radio Tube Company, Newark, N. ,;j i' O'-O • •• •’ ' • i • . . '■ : . <-• T w. TB-I.v ' ' .i oTr vj JJ(.; j:; T, .v.: i r.ii woiToiw -TT . - • //.' , TTivoT'; ^vci^qhoO To / : .o v/o.;i ovTT o •; J.: j ."Too VI "ircV •; •• it o o.V i o: o ; ..-'1:,', O.VtJV- Vf? . ..OTtV 0 TOT VV’T? ITf, j;.OTO >-1 TOO *, ?: O ... •. O'"' OW'-T Woo i'V oVt owtT: 0 Wv cVo.oT iuWW’Vo V? Ou:, .‘.0 0 T V 0 ii\: 0 b oT o' .0 i. OTO v._: - ; • .or: yi!.? To "Tineqc oHo ;Vo iw * o V V - » : r A. i'r A " : ^ ^ ... ; . T. - . ]< • - ~ \ C •? 4/10/34 HOUSE STARTS COMMUNICATIONS COMMISSION HEARINGS The House started hearings this (Tuesday) morning on the Communications Commission Bill introduced by Representative Rayburn, of Texas. The first to appear was Secretary Roper, who made but a short statement. He was followed by Dr. Irvin Stewart of the State Department who pointed out the differences between the Rayburn Bill and the presenting handling of the various communica¬ tions companies business. Ca.pt. Hooper was the next to take the stand and his statement was very much along the line of the one he made at the hearing on the Dill Communications Commission Bill in the Senate hearings. He argued for protection against foreign ownership of communications systems. He did not finish his statement due to the fact that the hearings were recessed until 10 or clock tomorrow (Wednesday) morning. XXXXXXXXXX LISTENERS' REACTIONS TESTED BY ELECTRIC LIGHT BULBS The recently announced plans for allowing radio listen¬ ers to record their reactions as they listen to a program receiv¬ ed a preliminary test April 1, when a poll by air was taken of listeners in the region of Hackensack, N. J. Prompt responses from 6,100 auditors more than satisfied sponsors of the experi¬ ment. The test was carried out from the broadcast ing studios of WOR, in New York, under the supervision of Dr. Nevil Munroe Hopkins, of New York University, who has invented instruments which will enable householders to "vote” by pressing a button in their homes and supplementary meters which will permit power sta¬ tions to read this "vote" by measuring to a high degree of pre¬ cision the drain upon electrical current caused by the voting devices. Crude substitutes served at each end of the line for the proposed devices at the April 1 test. To register their reaction each auditor turned on an extra light bulb in his home, and the cumulative response was calculated by the outward surge of power at the Hackensack station. The question on which the poll was taken was an organ recital. Before the recital began at 9:45 p.m. , an announcer explained the test and asked each who enjoyed the program to turn on an extra bulb for one minute at 10 o'clock, when the program ended. Engineers watched the power meters at Hackensack and reported a few minutes later. The response from 6,100 auditors, about 10 per cent of the population in the Hackensack region, pleased Dr. Hopkins, who said a 3 per cent response would have been good for the first test. XXXXXXXX 9 f;j' fti'iftX : i ft -LX .Uftftft ■i - ; J ft.//' •'! /.ft.. . - ft./;? a^.IV ft-ft/ft.: y;.; ' v.: vv ,.q :j ; ; ■ > s < v. i,i • ;;< .v; ...> . ' vVi'. ,i. X : Aft ::. .i\; 'A: & ft.\;.;.ft ■. , XOL ?i.-;Z'£ iyo .ftft.ft ■ '^.ft /'/.Aft ftftLi. LvLftfA 5? Si * * •••ft';ftft r;.. : ft.": a- ft ;A,; AqXfUl ■; -.: All ft-H , ft: a; ; ft ft.': : ' :/: : A.:ft ftp/; Lt '.ft.. ft ft .■: ■S:l> ■ a ft /ft ft- ft ■ :: AftftA:ft..:- aa: . ; . .aa/j Laa ■ •. •. ‘ ; a a, ft: \ ‘a/L ft uni -S ) '.VAftAA' : LaL V X v v 'v y v - V r « .-i a i - v. ..A*--: vv;!'ott:;a: .* v ' . : . .. ,» 5. 7 vr-T * * > ' V i> -}• . :■, ■ vV j ,v , . v ; 1 ;,i • . . •••■ vy:i X:;cvv V-.. A -AW: ' a: . A; A A -US'S. 5-K-vy* V'v./A : .Aft jIaa a '■ A; Aft i ra A# A vy: .ft . •. ft.; i ••• ft /T/iAAv- X y j ■" X - VlCKit; Aft. -aa ■ : i , . ft i -j .ft ■ : ft - ■■ ..j • } «} ft ft- ' / o •: •: ■',> lurS ■ v y/xr • . Xo/ft! : ( ; nl . ££ . ftA..;:, ft. A' | a. hi -i : '} ftft ■ ■ h'x a ■ . ft;.;.' ... ;■ .; • ft”; f SS jg ; ■ - ft '■ ' . . ft ft ; ft? 10 ft-; •• 3C| Ol $ IH ft o aw c ftftft f.sCrpH . boa Xq ? ft ft fti-: ft,-, ft ft ft:X (Aft'v: 4/10/34 BUSINESS LETTER NOTES The radio industry has just escaped an increase in the 5 per cent excise tax on radio and phonograph apparatus. Termination in 1935 of this '’nuisance" tax now seems probable, Bond G-eddes reports. Efforts of the Radio Manufacturers' Association to secure modification or repeal of the radio excise taxes appear to have been effective at least in preventing immediate increase in the tax which, it is reliably learned, has been under consideration by Congress. Women have raised $171,000 and radio listeners gave $46,000 in the drive in behalf of the New York Philharmonic Symphony Orchestra, Mrs. Vincent Astor has announced. Marconi International Marine - For 1933: Net income after taxes, depreciation and other charges, $93,222, against $148,692 in 1932. Donald E. Gibbons, brother of Floyd Gibbons, the radio commentator and war correspondent, has been appointed a mis¬ cellaneous construction foreman in the State Park Emergency Con¬ servation Work program and assigned to White Water State Park in Minnesota, it has been announced. Floyd Gibbons was born in Washington. XXXXXXXX GENERAL HARBORD KIDS SOL Gen. J. G. Harbord, Chairman of the RCA, is noted for his good memory. As a result he brought fbrth a good laugh at the expense of Representative Sol Bloom, who piloted a delegation of 100 Congressmen about New York last week. Sol likes best to be known as the man who "discovered" George Washington, but at luncheon General Harbord introduced him as "the man who has many other achievements, but on whose tombstone should be inscribed the fact that he wrote the music for Little Egypt's famed hoochy-koochy dance in the Columbia Exhibition of 1893. " XXXXXXXX 10 ,-H f' . . • ' :: .• ; '■ : " ‘ : • • • . . „ . t ..>■ : ■ m . . . ■ ■■■; - ' i: 1 V . ' " L ; ? ; r- ' .S. : ; ■ •: ' ■ 1 ■ , .. - I ii f zo l i .:■■} L . ;-j. " ■ ; V q 'A:i V ? . * ■ . - h .Vi . Dvi: > k & l :i yziM-n’:: -r.; fri ■ ,'c j Vli iZO ; v < v. ■ ; x >• ? i - ; V ( xK ,t.V :"- t :: l i \C:'{. ■$ 'M -.slit V: ; ,'i . ■ai : ■ Mzi : %4a , • . : •. ; ; ■ " ro'l '• ‘:vr ‘ £:?:• ; ; •. rr ■ • Ivol Ui'0-.lV SA: J ;; i ■ ifO-TS 6Z'\ '• tf-S ; ./( j n i IX i'-’ZyZ O j; - . J . : : , > § : p ; 553 ; ; : 7. . .7 : . :v ' 4/10/33 BROADCASTING CODE AUTHORITY MEETING POSTPONED TO APRIL 30 The meeting of the Broadcasting Code Authority which was to have been held in Washington on Wednesday, April 25th, has been postponed until Monday, April 30th. At that time, as originally planned, the recommenda- tions of the NRA with regard to shorter hours and increased wages will be considered, as well as other pertinent questions of vast importance to the broadcasting industry. XXXXXXXX SOME RECENT NEW AND RENEWAL ACCOUNTS OF NBC RENEWAL - Health Products Co. (Feenamint), Newark, N. J. Agency - William Esty & Co., New York City; Starts August 20, 1934, Mon. Fri. , 7:30-7:45 P,M. EST; Network - WJZ WBZ WBZA WBAL WML WSYR WHAM KDKA WGAR WJR WCKY WENR-WLS KWK KWCR KSO KOIL WREN KYW WCFL; Program - George Gershwin and Louis Katzman's orchestra. RENEWAL - Tastyeast, Inc. , Trenton, N. J. ; Agency - Stack Goble Advertising Agency, 400 Madison Ave. , New York City; Started March 18, 1934, Sundays 12:15-12:30 P.M. EST; Network - WJZ WBZ WBZA WBAL WMAL WSYR WHAM KDKA WGAR WJR WLW; Program - "Baby Rose Marie. " RENEWAL - Northam Warren Corp, (Cutex and/or Odorono) , New York City; Agency, J. Walter Thompson Co. , 420 Lexington Ave., New York City; Started March 23, 1934, Fridays 9:00-9:30 P.M. EST; Network - WJZ WBZ WBZA WBAL WHAM KDKA WGAR WCKY WLS KWK KWCR WREN KOIL KSO WMAL CFCF WSYR WSM WSB WAP I WSMB WKY WFAA WOAI KGO KFI KGW KOMO KHQ KOA KDYL; Program - "Let's Lister to Harris"- Phil Harris and his orchestra, Leah Ray. Commercial talk given by "The Fashion Reporter". NEW - A. C. Spark Plug Co., Flint, Mich.; Agency - Campbell Ewald Co. , General Motors Bldg. , Detroit, Mich. ; Started March 21, 1934; Times - Wednesdays 9:00-9:30 P.M. EST and 11:15- 11:45 P.M. EST; Network - 9:00 WJZ WBAL WMAL WBZ WBZA WSYR WHAM KDKA WGAR WJR WCKY WKBF WLS KWCR KSO KWK WREN KOIL; ll:lr - WTMJ KSTP WRVA WFLA WMC WSB WAP I WSMB WKY WBAP KPRC WOAI WSOC KOA KDYL KGHL KGO KFI KGW KOMO KHQ KFSD; Program - "Raymond Knight and his KUKU Program" - Music and dramatic. NEW - General Foods Corp (La France), New York City; Agency - Young & Rubicam, 285 Madison Ave., New York City; Started March 10, 1934; Time Saturdays 9:30-10:00 P.M. EST; Network - WEAF WEE I WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI WMQ KSD WHO-WOC WOW WDAF KSTP KOA KDYL KGO KPO KFI KGW KOMO KHQ; Program - Beatrice Fairfax - advice on marriage. 11 - ax* 77 ;•/- •* R ' 3JJ f i ?. 7 ... : ■ -■ ^3 ' & \^r-2 r..:u: • - ' ■ - • i'c i . fii . ;, :A. : r- - ‘ ' r: \ r-2 - *. •- • . . ■ • . ! ..." 1 ■ - • 7 • • V \* -v 4 • v. *;/> ” V- 7 .• ■ ;7 * ii ~4.r*5&. &r' ! • , . C ■ ; ... : ••••' S\ : 7 . . . • • ... ... . . , . . 1 " ", ' -■ i ; •&*! it : ■. : :. •• J ■-■ 7,../ • ;7 '7.7- ; 7 v7.'7 JSSaSSi 2 ' .V'"'7 '■ 7atB ■ - $Y$& 2 £ .7 . .. A 'i :f ; j. : a.;- V •• ’ * •* T : , r .7. . ■ • . • . - -v ; . . a m ■' ' * - a . ;-.. v; : ^ , , i. ; 1 )' >- ■ ; ; . ; 7? ;i -• ...! ■ ' ” • • x i; • : ■ U ■■■ . ^ :• ■ .--••• , - • .. . v: " : -a ; j . . ■ ■ ‘i ■ V . 22022 - " 1 V ' ' ■■■■ . • ■■ : ' '2iM k : :• ■V:vi • . c~. . . .. R 5 *' •' ^ =:-’ u;.-. • ' • n'V'' ' ■ ! • r { 'J. It ' . ■ ■ , i ^ a-. ... : : :: . ■ • - ■ « . ■- :.A7/./;a v . ,v.v . f ; ' • " :R: i l ~ ; 2-“SJl ;A73 V -7 f r : ; . ■ ‘ . . - :r ; V; ii! , ; » ... :f : i;' i 4/10/34 RENEWAL - Ralston Purina Co. (Ry-Krisp), St. Louis, Mo.; Agency - Gardner Advertising Agency, 330 W, 42nd St. , New York City; Started March 27, 1934; Tuesday 10:30-10:45 P.M. EST; Net¬ work - WEAF WEE I WTAG WRC WGY WBEN WWJ WMAQ KSD WOC WHO WOW WTMJ KSTP WIBA WEBC KGO KGW KFI KOMO KHQ KOA KDYL; Program - "Madame Sylvia and Movie Stars", Madame Sylvia and impersonations of varied motion picture stars; orchestra. NEW - William R. Warner Co. (Non-Spi) , New York City; Agency - Cecil Warwick & Cecil, 230 Park Ave. , New York City; Starts April 25, 1934; Time Wednesdays 9:30-10:00 P.M. EST; Network - WJZ WBZ WBZA WBAL WHAM KDKA WGAR WJR WCKY WENR KWK KWCR WREN KOIL KSO WMAL WSYR WKBF KGO KFI KGW KOMO KHQ KOA KDYL; Program - undetermined. NEW - Bauer & Black (Blue Jay Corn Plasters), 2500 S. Dearborn St. , Chicago, Ill. ; Agency - Needham, Louis & Brorby, Inc., 380 N. Michigan Ave., Chicago, Ill.; Started March 20, 1934; Time Tues. & Fri. 4:15-4:30 P.M, EST, 5:15-5:30 P.M. starting May 1 as repeat program; Network - 4:15- WJZ WBAL WMAL WBZ WBZA WSYR WHAM KDKA WGAR KTHS WJR WCKY WKBF WRVA WPTF WSM WSB WAP I ( KYW KWCR KSO KWK WREN KOIL KSTP KVOO KTHS WFAA. KPRC WOAI KOA up to and including April 27, 1934); 5:15 - starting May 1 WENR KWCR KSO KWK WREN KOIL KSTP KVOO KTHS WFAA KPRC KOA WOAI; Program - musical - dramatic; NEW - Mohawk Carpet Mills, 295 Fifth Ave. , New York City; Agency - Batten, Barton, Durstine & Obsorn, New York City; Started March 20, 1934, 10:30-10:45 A.M. EST, Tues. & Thurs. ; Network - WEAF WFI WFBR WRC WGY WBEN WTAM WWJ WLW WMAQ WOC WHO WOW WDAF (WTIC WTAG WEEI WJAR WCSH on Tues. only); Program - "Mohawk Treasure Chest" - 15 piece orchestra, male singer and female announcer. NEW - General Tire & Rubber Co. (Tires), Englewood Ave. , Akron, Ohio; Agency - Hays MacFarland & Co. , 333 N. Michigan Ave. . Chicago, Ill.; Started April 6, 1934; Fridays 10:30-11:00 PM EST; Network - WEAF WEEI WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI WMAQ KSD WHO- WOC WOW WDAF WKBF WRVA WSM WMC WSB WJDX WSMB WKY WFAA-WBAP KPRC WOAI KTBS KTHS KOA KDYL KGO KPO KFI KGW KOMO KHQ; Program - "The General Tire Program witl. Jack Benny" - Don Bestor’s orchestra and Mary Livingstone. NEW - General Foods Corp. (Certo), 250 Park Ave., New York City; Agency - Benton & Bowles, 444 Madison Ave. , New York City; Starts May 18, 1934, Fridays 3:00-4:00 P.M. EST; Network - WEAF WEEI WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI WMAQ KSD WHO- WOC WOW WDAF WLW WTMJ WIBA KSTP WEBC WDAY KFYR KOA KDYL KGIR KGHL KGO KPO KFI KGW KOMO KHQ KFSD KTAR; Program - "Show Boat Matinee" - Variety - Musical Gus Haenschen - orchestra, Lanny Ross, and present Maxwell House Showboat cast. NEW - Colgate Palmolive Peet Co. (Soap), 105 Hudson St., New York City; Agency - Genton & Bowles, 444 Madison Ave., New York City; Started April 3, 1934; Program - "Palmolive Beauty Box of the Air". X X X X X X - 12 - .• ;• " f. ; ■ 4;.; ; • V- ; • n =' r v ■}>: ' i\Y V Ctiti • X".. . . • > J_ ' ; i. J ' i . s ' ■ :? .-jil • v , c,'; X ’ v 1 ■- : II .x *^4-4 >■ L : x : •• ~-:U. : v . 1. t x . . -\C . J ..' . '7 :Zt-.OV .-x„ \j :xt;xt p x : x /' x. x...: ■' x-,-x: • l . - - ......... • frV ' ' . ‘ .» , • ... . . -- . ■ . • . .. : . . . • ' . X '. ‘ J ■ ' •. S.’A • • X. ' X. . . X -• • '■ - •• • f tx,ts ■■■ ■■J.jC ; ;•( XSX pv vLxx'; :J .x. vxx: - x . $/.XiV - V f . A . . I • x .. f X.i ■ •>%**& ~ ''-‘4 b : x.- . hi •: ; .xxXxX ;,'x.:'.; & ■ -.x, & ;. . ..x qp ;■ ' . ; :■ . -'X.xx . v. . • ■. JV . . £&'h : . P’: ;. :;v v ... _ - i'SO •. : • . - J '■ -r .. ...... » . i.-. f, rtf ... ?C:r '• '• ■ - rJX'/iO - ; ~ ' ■ 4 ' - ' - . : ; . . , - • . < ; ,.'v .... • ; ;; ;.;:v ;C| . V i:-'. ■' ...... .j. < - * . • . , . • . s'; : .. ; , :i ): . :; i : IT; \? .. :: . . ; f . y •; . v?A ;t . . ^-v .. ■ - ;"r V •' ' ' ■ •' ' ' ' ,i ■ . ...... . ■ . •... • . ; A i. .£ TS- v'.; y;.j L' : V . - , ; ,v ■ ■ ■ j rts ■ . .■ ■ "■ / ■ • | V.-r ■ ' . ■' . : .• . A--, '-..;, r'- ^ I . 1 v : ' . s‘ : .'A xv ' V V / . . Y . ... Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIA L— Not for Publication M te i if S $ f IffJ tu ii , _ „ ■ ? ■■ ; i>; m ^ 1334 - ■ INDEX; TO TSSUE OF APRIL 13, 1934. I— 1 "V ; j J j //j i re: ^ ^ £ ,j j Broadcasters On Grill At Coming Educational Conference . Communications Commission Bills Make Haste Slowly . Commission Advocates Repeal. Of The Davis Amendment . Commission Grants Permission To Broadcast News To Stations. . . .2 Dill Bill Reported Favorably Without Amendment . Highest Wooden Tower Completed For German Radio Station Saltzman Again Spoken Of To Head Commission . Treasury Estimates 50 % Increase In Radio Sales . Business Letter Notes . 9 WJJD 3rd CBS Chicago Station . 10 Asks Press Alliance With Radio In Britain . 10 Tommy Sarnoff Furnishes Wallaby Mystery To N. Y. Zoo . 11 Decisions Of The Federal Radio Commission..... . 11 No. 715 00 CD -0-0 CD CA ZA . , , :*• i. ■ .1 BROADCASTERS ON GRILL AT COMING EDUCATIONAL CONFERENCE "The Use of Radio as a Cultural Agency in a Democracy" is the subject of a forthcoming conference announced for May 7 and 8 in Washington, D. C. Invitations to the two-day meeting have been sent to leaders in education, recreation, government, and civic affairs. Called by the National Committee on Education by Radio, general sessions are to be held in the auditorium of the Interior Department Building, while group meetings are being arranged for other nearby buildings. The National Committee on Education by Radio is a severe critic of the so-called "American" (i.e. commercial) system of broadcasting. It favors either the British system or out-and-out government ownership. It was this Committee which inspired the debates as to the superiority of the American system versus the British. Unquestionably the broadcasters and the net¬ works will come in for quite a "panning at the forthcoming con¬ ference. Formed late in 1930 as a result of the Chicago Confer¬ ence called and presided over by the then United States Commis¬ sioner of Education, Dr. William John Cooper, the National Com¬ mittee on Education by Radio is an organization representative of nine large national educational groups. These groups are the National Association of State Universities, Association of Land- Grant Colleges and Universities, National Education Association, National Catholic Educational Association, National Council of State Superintendents, American Council on Education, Jesuit Educational Association, National University Extension Association, and Association of College and University Broadcasting Stations. The Cha.irman of the Committee is Dr. Joy Elmer Morgan, Editor of the Journal of the National Education Association. The Vice-Chairman is Dr. John Henry MacCracken, Associate Director of the American Council on Education. The other members of the Com¬ mittee are: Dr. Arthur G. Crane, President of the University of Wyoming; Dr. James N. Rule, State Superintendent of Public Instruc tion in Pennsylvania; Rev. Charles A. Robinson, S.J. , Saint Louis University; Prof. J. 0. Keller, head, Department of Engineering Extension, Pennsylvania State College; Dean H.J.C. Umberger, Director of Extension, Kansas State College of Agriculture and Mechanic Arts; Charles N. Lischka, Assistant Director, National Catholic Welfare Conference; and Prof. Jos. F. Wright, Director, Radio Station WILL, and Publicity Directory , University of Illinois The Committee's full-time staff consists of Dr. Tracy F. Tyler, Secretary and Research Director, who is in charge of arrangements for the conference; Armstrong Perry, Director of the Service Bureau; and Eugene J. Coltrane, special representative in charge of field service. XXXXXXXX - 2 - •’ *• 4/13/34 COMMUNICATIONS COMMISSION BILLS MAKE HASTE SLOWLY It is still any man’s guess as to whether or not there will be a Communications Commission Bill passed, this session. President Roosevelt has indicated that he would like to have Congress adjourn June 1st, which is only about six weeks off, very little time the way Congress works. Senator Dill’s Committee will try to finish its labors in considering the Senate Bill this week. It is reported, how¬ ever, that Committee consideration of the Communications Bill in the House may extend over the next two or three weeks because of the number of witnesses expected to testify and due to the fact that the Rayburn Committee is entirely new to the subject, this being the first Radio Bill they have had to handle. X X X X X X X X COMMISSION ADVOCATES REPEA I* OF THE DAVIS AMENDMENT After two days’ sessions the hearings on the Communica¬ tions Commission Bill introduced into the House by Representative Rayburn have been postponed for about a week until the Interstate Commerce Committee, which is considering the radio bill gets the Rayburn Stock Exchange Bill out of the way. The high light of the two days’ session was Judge E. 0. Sykes, Chairman of the Federal Radio Commission, who advocated the repeal of the Davis Amendment. Judge Sykes suggested, in behalf of the Commission, that the Radio Broadcast Division have jurisdiction over the broadcasting and amateur service, the Telephone Division shall have jurisdiction over telephones, other than broadcasting, by wire, radio or cable, and that the Telegraph Division have juris¬ diction over telegraph communication by wire, radio or cable. Judge Sykes suggested the addition of the following paragraph to Section 211, which deals with contracts: ” The Commission shall have authority to require the filing of any other contract of any carrier and shall also have authority to exempt any carrier from submitting copies of such minor contracts as the Commission may determine. ” To Section 214 having to do with extension of lines and circuits, he offered the following: "Provided, however, that the Commission may upon ap¬ propriate request being made, authorize temporary or emergency service preliminary to any proceeding under this section. " 3 ti |{j : : -■••Hr 'H. '*>. wxi j.? ibbbb :o. ' V'f . a -• - ;f i. ...iv £ X ; c v _• sn .r ah , :i.J iJ l; < -'-.v i ;-j A . 'ia .no' a > : ■ ■■ .. ■/ ; iv : . •: ; rid 7 -'fp •? ; - •: ' ■ ■ • ; ' i - !,■ • ’ . if -o A ;■ f . ;;.X'V‘ p.f -V -n i - V , .I f i ffp:;. < . .• ; 4 .■;i & M • • ■■ •• -a J <■ - A ; - •: £ ' C'f; •VP'V. O' ■ • X.,'.;-' a X X XT ; : , •X A r~ :.',U t .‘x ■11, : r A/i 7 T( : ;; . ' 7 V ' '.>? ... XX : ... £/i :• .X : 'XT fycXvx TO-;' .0 . X; Oq-1 X.: xx Xv . b .'. tot; e X ,t i:b :: : . v 4 V XX '. ) :? Xx£. J:d : : X' r • ■•."> Ixtax XX ? X « -■ : .. * • •' • r r b -J T • ;'j , iVji -yv- ?. -t:.r ;? j. P., '} iPvy j’ Tj A- ' ■ , : ’ • „■ . * • : : .. A, '■ ' : V : X X.-V ;rf ;l J IA . ;7 V ‘ : ■ r ; , : a bvi '/■ :■ } ' :T . : ■ : ■ ; X X ■ r r: ri.fi A i: i f ;.V ' f . iiii : as Aa.kX ' a;X:T i v ■ V {bi.biiStsh , .. ’ • r-iiii'r A, A:;;A ;■ . , ; V VA: /A- * 1 i.i . • : X-i 4/13/34 Judge Sykes said that if no changes should be made at this session, the Commission, with the single exception of an amendment which has already been submitted to take care of the Mexican situation, to withhold its further suggestions for amend¬ ment until a later date. This exception would prohibit a. studio in this country transmitting from here to Mexico to be broadcast back into the United States. If changes are to be considered at this session of Congress, Judge Sykes advocated that a section be added to the bill prohibiting lotteries. Also that the so-called Davis Amendment providing for equal radio facilities for all parts of the country be repealed. As a substitute for the Davis Amendment (Section 9 of the Radio Act), Judge Sykes suggested the following: "In considering applications for licenses, or modi¬ fications and renewals thereof, when and insofar as there is demand for the same, the Commission shall make such a distribu¬ tion of licenses, frequencies, hours of operation, and of power among the several States and communities as to provide can equita.ble distribution of rrdio service to ea.ch of the same." "With slight changes, this is Section 9 of the Radio Act of 1927 prior to its amendment. Developments during' the past few years have made it possible to measure accurately radio broadcast service", said Judge Sykes. "The provision of the Bill which contains the 'Davis Amendment' to the original Section 9 of the Radio Act of 1927 is contrary to natural laws and results in concentration of the use of frequencies in centers of population and a restriction of facilities in sparsely populated States, even though interfer¬ ence would permit the operation of one or more additional sta¬ tions. Because of the size of the zones, this distribution results in providing ample broadcasting service in small zones and lack of service in large zones. Experience has proved that the section as proposed is very difficult of administration and cannot result in 'an equality of radio broadcasting service.' In the provision suggested, service is made an important criterio: making it possible to carry out the statutory provisions of public interest, convenience and necessity without artificial restrictions. " Judge Sykes advocated the following amendment to Section 16, the appeal section of the Radio Act: "An appeal may be taken in the manner hereinafter pro¬ vided from orders of the Commission to the Court of Appeals of the District of Columbia in the following cases: "(1) By any applicant for renewal of an existing radio sta-tion license whose application is refused by the Commission, and 4 - . . .J. : * t ;?j a '■ > • ■ MX U v. if i ; y ■ *£ if lj W a J f. i • A 0 Ai A- f. . A {$$&%( ( &&i$qbcX &£■£$ . ;■■ lit- 4 .7 - • M- .; y.U'iii ■ i- . a' -"'I o ■ ; •' ' . ;Vr ..a ’-Ti ' . if •; AX vaXam 1:--; a. A ; ; 7 •f .-; •:. : . ■• : ' • . s -• ■ •• . . ■ . : ■ ' ■ ' .. ". i,(J. - i . . .;-. .i .7. .r. XX 7Mr ■ 4, i- V A - I ■ ■, .. :: ■ •i-.f .0 ? *Af b » X 7 ; - - 1 7._ v A 7 j. ■?. [:■ ■■■■'' $ if.’-; A' 'A; J: i J :A7 f?% ■ M7A. A A. 7 A;' AA -V— • Aa\: ; A . 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A A A ■; •: - s .-Ava <8 ;-A : 'XAri ! . , . •. X'aXA/vi A a.’ % A .. :A- . . , AiC 7 .. u 7 . :;A A A - . i . ■ . .A A ' lj L l ' ' ■ i .. i'1': . ; ; ' A ' ';7 1:7 • ,7 A, A.: . A I . / . 7‘ . • ?v.i 7 ; 7! 1 77-7 ' A7 7./ ' 'A A -7 ; 7 -7 A77 - A . : • ' ■ ; ' : v, J ■:■ '.7 ■ r ... •• 7 : ■ ;,7:.. A. 7- 7 .A A .....77 .;, : A '■ . .. . •, . !.: - 7. : A. ; A ■ i 7 A 7. :7: ?'• A;rA'7 I i A' A : ' .A7 7: A 7. .... ■ •' . •• r-i : ! . . '•! A. -A , ■•.'...7 ' ; 1 7 : ■ ".A A ■•A A: 77 A' 7 A • 7 ' 7.-: ,= > f 7: 7 7 77., .777 1(7 .l.;7Ai • : 77 . ’ .7 77 7 7.7 ’ ' A 1:^7 7.7 ' ■ ^ 7 1 - A' 7: A 7. A A- ■ :■'.! . : .7 ■ 7 7 ■ ■ . ' ! 777 7 k A .7 .l- AX ■ ' 7 4/13/34 "(2) By any licensee of a radio station whose license is revoked by the Commission. "Such appeal shall be taken by filing with said court within 20 days after the decision complained of is effective, notice in writing of said appeal and a statement of the reasons therefor, together with proof of service of a true copy of said notice and statement upon the Commission. Unless a later date is specified by the Commission as part of its decision, the dec¬ ision complained of shall be considered to be effective as of the date on which public announcement of the decision is made at the office of the Commission in the City of Washington. "Within 30 days after the filing of said appeal the Commission shall file with the court the originals or certified copies of all papers and evidence presented to it upon the appli¬ cation involved or upon its order revoking a license, and also a like copy of its decision thereon, and shall within 30 days there¬ after file a full statement in writing of the facts and grounds for its decision as found and given by it. "At the earliest convenient time, the court shall hear and determine upon the record before it, and shall have power, upon such record, to enter a judgment affirming or reversing the decision of theCommission and, in event the court shall render a decision and enter an order reversing the decision of the Commis¬ sion, it shall remand the case to the Commission to carry out the judgment of the court; Provided, however, That the review by the court shall be limited to questions of law and that findings of fact by the Commission, if supported by substantial evidence, shall be conclusive unless it shall clearly appear that the find¬ ings of the Commission are arbitrary or capricious. The court’s judgment shall be final, subject however, to review by the Supreme Court of the United States upon writ of certiorari on petition therefor under Section 347 of Title 28 by appellant, by the Com¬ mission, or by any interested party intervening in the appeal, "The court may, in its discretion, enter judgment for costs in favor of or against an appellant, but not against the Commission, depending upon the nature of the issues involved upon said appeal and the outcome thereof. Provided, however, That this section shall not relate to or affect appeals which are filed in said Court of Appeals prior to the passage of this Act." K. F. Clardy, member of the Michigan State Utility Com¬ mission endorsed the Bill but urged that a provision be not incorporated which might deprive the State Commissioners of rights to govern intra-State rates and services. Paul A. Walker of the Oklahoma Commission said State Commissions were unable to deal with telephone companies. 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'. ■ ■ . -- -A- : : A : ' * -M ' £ A-:, la a L ■ l - L A ALL, . i • ■ ’ ' x i AX .. ! / -'i .... : ... : ... ’? ' :.A.. ... .A'V L A-L - XL-.- - AAA' i .A . A. " L B .A A. A -X-.7 /. . .x . ik- ALL Li • - A 4/13/34 COMMISSION GRANTS PERMISSION TO BROADCAST NEWS TO STATIONS An action which may be of far reaching consequences to the press of the country was the amending by the Federal Radio Commission of the rule with regard to broadcasting news so that it may now be transmitted direct to stations by short wave. Previously news could only be broadcast for publication by press associations and newspapers. The new amendment to this reads "or for public dissemination by any class of radio station, the emissions of which are intended for the general public. " The amendment was made following a hearing of the Radio News Service of America, a New York concern, which had applied for the privilege of broadcasting news to stations by short wave, the stations in turn to rebroadcast the bulletins to their listeners. The apparent object of the Radio News Service of America is to set up a rival service to the bureau recently established by the press associations and newspaper publishers in cooperation with the broadcasters. In the latter service, only two bulletins are broadcast each day. It was the contention of the Radio News Service of America that listeners demanded more news than this. It is evidently the plan of this service to sell news to stations which in turn will seek commercial sponsors for these bulletins. Ivan Johnson, President of the Radio News Service of America, told the Radio Commission that 92 small stations had agreed to take his news service. Johnson declared that he fully expected to be able to sign up 300 to 400 stations. He said that he had made arrangements with Press Wireless, Inc. , and the American Radio News Corporation (said to be owned by Hearst) to send out his bulletins. Johnson said he proposed to broadcast from 5000 to 10,000 words a day and to charge the small stations $10 to $15 a month and the large ones more. He thought the average would be about $100 a month. He expected to establish branches in New York City, Chicago and San Francisco and that the stations them¬ selves would serve as news feeders. Although it was said at the Commission that press assoc¬ iations and newspapers had been duly notified of the application of the Radio News Service of America, no one appeared to oppose it. The Commission expected bitter opposition on the part of the press and was considerably mystified when opponents failed to appear. It was said that this left no alternative to the Commission than to amend the rule. "It looks to me as if the newspapers have been caught napping on this", an official of the Radio Commission said. "I am not sure that the Radio News Service of America is of enough substance to carry the thing through but it has been the medium of letting down the bars to others and in my opinion may result in setting up direct competition between broadcasting stations and the newspapers in the dissemination of the news. " XXXXXXXX 6 4/13/34 DILL BILL REPORTED FAVORABLY WITHOUT AMENDMENT The Senate Committee on Interstate Commerce Friday afternoon reported favorably upon the Communications Commission Bill introduced by Senator Dill, of Washington, and recommended its passage without amendment, or with but few minor amendments. This means that there is apt to be a spirited fight on the Bill when it reaches the floor of the Senate. Both broadcasters and commercial communications companies are opposed to it and this will certainly be manifested. It is not possible to say at this time how soon the Senate will take up the Bill. In the Dill Bill, as reported, the Communications Com¬ mission is reduced from seven to five members, appointed for six-year terms. This necessitates two divisions, one for radio and the other for telephone and telegraph, instead of the three divisions originally intended to be created. The bill contains a new appeal section which provides for review in three-judge United States District Courts of orders of the Commission which revoke, modify or suspend radio station license. Refusals to grant applications for new sta¬ tions or renewal of licenses, may be appealed to the Court of Appeals in the District of Columbia. The Commission is directed, in the Dill Bill to invest¬ igate and report on the desirability of permitting the States to set up independent accounting and depreciation systems; and also the desirability of having Congress allocate by law fixed per¬ centages of radio facilities for educational, charitable, religious, labor and other non-profit organizations, XXXXXXXX HIGHEST WOODEN TOWER COMPLETED FOR GERMAN RADIO STATION What is reported to be the highest wooden tower in the world has just been completed at Muehlacker, Germany, for radio broadcasting, according to advices to the Commerce Department from Assistant Trade Commissioner Rolland Welch, Berlin. The new tower is 190 meters in height (about 625 feet) and has on the top an antenna ring weighing 1,320 pounds, 10 feet in diameter. The ring is said to guarantee fading-free reception within a circumference of 130 kilometers. This Muehlacker sta¬ tion also has a vertical one-wire aerial connected with the wooden tower. XXXXXXXX 7 : : ; ' ■ f: • '....vr. ax ) . . i • - - . a. .i. • v - „ ‘ . . * • ; ■ ' 1 X . . ; ... ; ’.*■ ‘ ■ • - - '• * ■ : \T X. X ; _ x: AX'; .XX X-..' - X.' .j.. • : ■;J rU \ ■' ^ .. f ) AX X 1. ;- X ,'i X i '.Si 1 V a;.TO i-t ,:;o Xxx vy-lJ X Xvt 0 . . . ; - - • i. . . ■t ... ... . . : • ■ . : ?-b ■ . , : x.x ■ S X X :>X -::ii • l 5 ->•? ■■ : X ivxxv: xa Ira' .-.V-.T ■ . X. i: ' . 3 i X ; ; x i a % , JXCXa ::XJ- -Ax :• j' iJi J y.-i ' :> C. ;.v .. 7 AO \v; 'AXA '.i :• 0.X :x J: '■ X & ■ *s.!.o ■ z r« ■■ r aux-oaoX" x r r r «• X XX. X : oj :.i XxX ,. • 5 / . > j .v -■ ‘ J V •: > a; aX i • A f X r : ; X j ;f v A OX XX o .0 x- '•> ■ X ‘ . X -iX .j ].■ ;:u* o.-; t;ioJX>X o .-X: a ■ l 7 ? . ;; j : .a \X X aAX ; i >•' /; ox*, jo ■■ XX-: x ".aa; a o-'t 1 a jnoo iJ.XX ■ 1 '• aa,JX. :: a -s a.vX i-oXX-iU .i.'x.' X. — • a..: fil " . 'A x . ■ \a vX.Xa,..; .s^ovy“: jio.iX'X* : aa. aa -• ■ [$■ '.-a - ■ r: ... a;.L j\:u. -? :,f o !a20?..X a: ’ . . ; : : • ‘ t \ X .. .. I 1 j a a. . i : • ’ ’ X X V xx-rxr 4/13/34 SALTZMAN AGAIN SPOKEN OF TO HEAD COMISSION The name of Maj . Gen. Charles McK. Saltzman, former head of the Federal Radio Commission, has been again mentioned as a possibility as Chairman of the new Federal Communications Commission. It was pointed out that General Saltzman was well qualified for aside from his radio experience, he also served as head of the Army Signal Corps where he had experience with telegraph, telephone and cable as well. It was further stipulated that General Saltzman was well thought of by Secretary of Commerce Roper and had a good deal to do with framing the report of the so-called Roper Com¬ mittee upon which President Roosevelt based his Communications Commission message to Congress. Nominally General Saltzman is supposed to be a Republican but as is the case with most Army officers, politics are said to have been subordinated in his career. If the partisan point were raised, it was pointed out the General could easily qualify as a minority member of the Commission, inasmuch as two of them will be Republicans. General Saltzman has been somewhat out of the picture lately due to the fact that on February 23rd he had the mis¬ fortune to slip on an icy pavement and broke one of his legs. He is now up and about but still walks with the aid of crutches. XXXXXXXXX TREASURY ESTIMATES 50$ INCREASE IN RADIO SALES Figures presented by the Treasury Department to Congress in connection with the pending tax revision bill contain an esti¬ mate by the Treasury that radio sales will increase 50 per cent in the two years ending July 1, 1935. In consideration of the tax revision bill by the Senate Finance Committee, the Treasury submitted estimates of revenue from radio and other taxes. The actual receipts in radio and phonograph excise taxes for the fiscal year ending July 1, 1933, were $2, 206, 763. 39. The estimate of the Treasury to the Senate Committee for tax receipts from radio and phonograph sales for the year ending July 1, 1934, are placed at $2,800,000, while the estimate for such taxes for the year ending July 1, 1935, was $3,400,000. These Treasury estimates were a part of the figures considered by Congress in calculating its revenue from the excise or !!nuisance,f and other taxes in connection with the federal budget and are an indication of the opinion of Treasury actu¬ aries regarding prospective sales in the radio industry for the next two fiscal years. An increase of 56 per cent in radio manufacture last February is indicated by Federal reports of radio and phonograph excise taxes collected. Internal Revenue collections during February 1934 of the 5 percent excise tax on radio products and phonograph records amounted to $272,335.09; this compares with excise tax collections of $173,987.28 in February, 1933. X X X X X X - 8 - . j j A * .'A' •A. An- - . '■ y » - ,-Vv. . : 5-3 ■ "• '• ■ ' ' ' ■ ■ -c. v,; ;; ; .H.:; ' . “v <' X.'Oqxn AA.iAinnX: A.- : ^ ^ -:,v ^oc,, &A~m . . - M ■ . ' > Tr hm f, : **%??*£ ! ^ i : >J$ . .; • t - \ : -•• •'- ; w ■■' t>j. a ■ a ££ , ,. -• •■ • v.^ . . -. .• i ;••• • ; . 4 . . * •• • * *• : -A A • ■ A- . . . * - ■■■ '• •■ 4 'An. i?l e ■ f XX y/ " V ; j * ;a a \C** ® a f a i ; ■ 1 ■ £0 On; Aj i ^ f •a :• i :XS \’A A: r i - * V . X ; J *- . •••'aaaj Ann J/i jv. vn.i ' » A-.-n A.: a n o;-:- ■■ \.i • x.:: Ai/ n ,.A A /. A 4/15/34 • • BUSINESS LETTER NOTES: : David Sarnoff, President of the Radio Corporation of America, was among those invited to attend the reception given by the Russian Ambassador and Mrs. Troyanovski at the re-dedication of the Russian Embassy in Washington, This was the outstanding social event of the season in the Capital with practically every one in official. life present excepting President Roosevelt. Station WOQ, United School of Christianity, Kansas City, Mo., recently removed from the air by the Federal Radio Commis¬ sion, and later refused relief by the District of Columbia Court of Appeals, has now appealed to the Supreme Court of the United States. Senator Key Pittman, of Nevada, Chairman of the Foreign Relations Committee has appointed the following sub-committee to study the International Copyright Bill: Senator Duffy, of Wis¬ consin, Senator Van Nuys, of Indiana, and Senator Fess, of Ohio. Mrs. Thad H. Brown, wife of the Vice-Chairman of the Federal Radio Commission, is spending a short time in New York, and was the guest at luncheon of Mrs. Frank Mason, wife of NBC's Vice-President in Charge of Publicity, who entertained at the National Woman’s Republican Club on 54th St. in New York. Other guests at the luncheon were Mrs. Frank- -A. Vanderlip, Mrs. Merlin H. Aylesworth, Mrs. Kent Cooper, Mrs. Rex Cole, Mrs. Phil Lennen, Mrs. Charles Speaks, Mrs. Hattie Bell Johnston and Mme. Schnitzer. The number of radio receiving licenses in force in Great Britain at the end of March was 6,254,400, as compared with 5,497,000 a year before. Work in preparation for the next meeting of the Inter¬ national Consultative Committee for Radiocommunications is being coordinated by the Federal Radio Commission. The agenda contains about twenty-five technical questions. The meeting will be held in Lisbon, Portugal, in September. XXXXXXXXXX 9 ... ;■ » :J v". xxx x; . . ; ... ' . . ■ . . x.v— r x.x X xdx fij:- V V/ • i ; V' i -i i/i-iC X .tv.';-; XXX; : i X . ' . ' ' X ' i x ' .1 i • it v cf X: X X X v > ; •; : ' ' ;• , ; v *; ; -f* : "■< f < • •.* r\ ? *. . •• x ; ;.X' X;X -• x . , ' ?•••** • t j x xX-XxXX X xx . . . ■ : . . ' .V . Y XX X'.x. -XX'.V. a X-. 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' ;• o XvX.: : xv .1 ... i. •. ■' • ...;.X" x'. di;X' .- v V S. \ ■ •X.X.-x. 4/13/34 WJJD 3rd CBS CHICAGO STATION By gradual absorption, WJJD is becoming a Columbia System station in Chicago, being added to WIND, Gary, and WBBM, as CBS outlets, according to Variety , which continues: "Due to public howls over the kicking off of the Phil¬ harmonic Symphony for baseball broadcasts, CBS has arranged to have WJJD take the Philharmonic on Sundays and also the Union Central Life Insurance Company's "Roses and Drums." "There now is the rumpus whether or not WJJD will be able to announce itself as of Chicago instead of Mooseheart, Ill. Federal Radio Commission has granted that permission but the other stations in Chicago, with the exception of WBBM, have put up a protest, claiming that it is unfair competition and adding to the number of stations in Chicago, which is already stated as being overcrowded. "Ralph Atlass, operator of WJJD and WIND, is the brother of Les Atlass, Vice-President of CBS and operator of WBBM." N X X X X X X ASKS PRESS ALLIANCE WITH RADIO IN BRITAIN An appeal in the "interests of civilization" for a permanent alliance between broadcasting companies and the press was made by Maj. Gladstone Murray, one of the original heads of the British Broadcasting Corporation, before the influential Institute of Journalists in London. Taking the recent violent attacks against that corpora¬ tion by a section of the British press as "symptom of the under¬ lying apprehension of newspaper proprietors, shareholders and editors", Major Murray said there was no reason why on this side of the Atlantic, British tradition should not advance on a basis of equitable adjustment of interests leading to a partnership in the public service. "Under such well-established conditions all concerned with newspapers and broadcasting would stand to benefit", he said. "Thus far by agreeing with nev^spapers and news agencies about the supply of material and news bulletins, also about the time and conditions of broadcasting such bulletins, the B.B.C. has gained a distinct advantage over the United States broadcasters. "Nevertheless permanent relations are still far from being established and problems of the ultimate effect of broad¬ casting on the printed word, on sales, on advertisements and on public opinion remain unsolved. I believe the majority of the British people desire to see an early adjustment of these dif¬ ficult relations. " X X X X X X X - 10 - 4/13/34 TOMMY SARNOFF FURNISHES WALLABY MYSTERY TO N. Y. ZOO When two wallabies (miniature kangaroos) presented to Tommy Sarnoff, 7 year-old-son of David Sarnoff, President of the Radio Corporation of America, and his brother, by E. T. Fisk, Managing Director of the Amalgamated Wireless of Australasia, arrived in New York this week, the crate was turned over to the Central Park Zoo, The New York Times carried a two- column cut of Tommy and the wallabies and went on to say: "Under the direction of Capt. Ronald C. Stout, consult¬ ing zoologist of the department, and Robert Hurton, head keeper, the crate was opened and the little gray creatures ventured cut into the yard next to that occupied by Maggie, the new Canadian black bear, "The baby wallaby reported born last week in Los Angeles was nowhere in evidence. A search of the crate failed to reveal it. " ■* She must have died1 , remarked Mr. Hurton sadly. "’No1, replied Captain Stout. 'I don't believe so. Look at the way the female is looking into her pouch. I think the baby’s down there.’ "’She’s not carrying it’, said the lion keeper. ’She’s too thin. ’ "’She may be’, insisted the captain. ’Look at that.’ "The argument over the existence or non-existence of the baby wallaby continued until the breathless arrival of Tommy, who had just heard the news and had demanded he be taken to the Zoo immediately* "At Mr. Sarnoff’ s office inRockef eller Center his secretary explained that Mr. Fisk had been in New York last December and at that time had made the acquaintance of the Sarnoff children. She was positive that a baby wallaby had been born before the crate left Los Angeles last Friday. "Captain Stout said he did not wish to examine the female’s pouch until she had become more accustomed to having people around her. If a baby were in it, he said, it might not come out for several weeks. ” XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (April 13, 1934) WJR, WJR, The G-oodwill Station, Inc. , Detroit, Mich. , modification of C.P. for approval of towers' location, formerly authorized in C.P. ; also granted authority to extend commencement date to 4/16/34 and completion date to 10/16/34, to move trans¬ mitter from Pontiac to near Detroit, Mich. ; KYW, Westinghouse Electric and Manufacturing Co. , Philadelphia, Pa. , modification of C.P. for approval of transmitter site at Josha Road, White- marsh Twp. , Pa., and install new equipment (original C.P. covers move of station from Chicago to near Philadelphia), 11 - 4/13/34 Also, WMAL, National Broadcasting Co., Inc., Washington, D. C. , C.P. to install new equipment, maximum power 500 watts, for auxiliary purposes; WCAE, WCAE, Inc., Pittsburgh, Pa,, license covering local move of transmitter 1220 kc. , 400 watts, for auxil¬ iary purposes; WLBC, Donald A. Burton, Muncie, Ind. , license cover¬ ing change in equipment and increase in day power from 50 to 100 watts on 1310 kc. , 50 watts night, simultaneous day operation with WTRC, share night with WTRC; WGN , WHN, Inc., Chicago, Ill., license covering changes in equipment and increase in power from 250 watts to 50 KW, 720 kc. , unlimited time; WJBO , Baton Rouge Broadcasting Co., Inc., Baton Rouge, , La., modification of C.P. extending com¬ mencement date to 10/1/34 and completion date to 12/1/34; WPTF , WPTF Radio Co., Raleigh, N. C. , modification of C.P, to change type of equipment authorized by C.P.; KVI , Puget Sound Broadcast¬ ing Co. , Inc. , Tacoma, Wash. , authority to take measurement of antenna power; WMPC, The First Methodist Protestant Church of Lapeer, Mich. , modification of license to change frequency from 1500 to 1200 kc. ; WIBM , WIBM, Inc. , Jackson, Mich. , modifica¬ tion of license to change hours of operation from specified to unltd Also, WBAL, Consolidated Gas Elec, Light & Power Co., of Baltimore, Baltimore, Md. , consent to voluntary assignment of license to the WBAL Broadcasting Company; WJBK , James F, Hopkins, Inc. , Detroit, Mich. , modification of license to change hours of operation from specified to unlimited and change frequency from 1370 to 1500 kc. Action On Examiners8 Reports KFDY, S. Dak. State College, Brookings, S.Dak. , modifica¬ tion of license granted to operate on 780 kc. , 1 KW day, specified hours, daily except Sundays; 12:30 to 2 P.M. CST, sustaining Examiner Geo. H. Hill; KFYR, Meyer Broadcasting Co. , Bismarck, N. Dak. , modification of license granted to operate on 550 kc. , 1 KW, 2-jr KW LS, unlimited time, sustaining Examiner Hill (effective date in the above May 13, 1934); New, Jos. G. Mayer & Clarence R. Cummins, Erie, Pa., denied C.P. for new station to operate on 1420 kc. , 100 watts, unlimited time, sustaining Examiner R„ L. Walker (effective date of order April 20, 1934); WDBJ, Times-World Corp. , Roanoke, Va. , granted modification of license to operate on 930 kc. 500 watts, unlimited time, sustaining Examiner Geo. H. Hill (ef¬ fective date of Order April 20, 1934) Miscellaneous WDAS, WDAS Broadcasting Station, Inc., Philadelphia, Pa., denied informal request for increase in nighttime power from 100 to 250 watts from 10:15 to 10:45 P.M. EST April 13, 20, 27 and May 4, 1934; WKOK, Charles S. Blue, Sunbury, Pa., granted consent to voluntary assignment of license to Sunbury Broadcasting Corp. ; WTAG, Worcester Telg. Pub. Co. , Inc. , Worcester, Mass. , temporary license made permanent increasing power from 250 to 500 watts; WESG, Cornell University, Elmira, N. Y. , KWJJ , KWJJ Broadcasting Co. , Portland, Ore. ; WJAG, Norfolk Daily News, Norfolk, Neb. , reconsidered action of March 30, 1934, granting renewals of licenses on a regular basis, and directed special temp. auth. be issued for the period ending Aug. 1, 1934, during the conduct of experiments involving stations KTHS KRLD WTIC and WBAL XXXXXXXX . _ - 12 - . ..■■■ > wj i : " o-p.z nil t «/4. . / J'.T iiJjh 4 ,4': •:: . • - ' /. 4 . v- : : ^ c - ‘ * 4 ../■ b.r- -j.z .tr..-4; / O-- : V i / %oi ; £ ; :;;1 ■ . -5 i • j 4 £ .‘.4 / -■/■'• , .-4 .. V, . i..-,' 2 .-••• • ' . ; J . ' ' • 1 • ' ‘ '/;./4 .;/:// ..:,/v 4; j . 2 . • •. /X ,im :■■■<] - / : i i QJ tC £LC '4 Si - 1 ; fl 4/4 , . 4^ ; j -b ^ *'•*&£ ,;4.l44; /■//:. ./ ;'-/-: 4: / ifia’-la : i/4 v 2/ 4,u/- :! : £dj$aito &$ •.:*&&&&'£ 4 il ■' 4 C; . ’ ' ‘ j, '• , ' , :.'... X .' 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I® 1 rh |y li APR ¥ *■ \ *1 , gjty lOill I Iff! 1 1 SjjM-i f INDEX TO ISSUE OF APRIL 17, 1934. Would Break Down Clear Channels And Censor Programs . 2 Radio Notables Enjoy G-ridiron Dinner . . . 5 Telegraph Code Hearing Postponed Two Weeks . 6 23 Stations Getting Radio Bureau News . 6 Hogan Facsimile Machine In Regular Broadcasts Next June.. K. C. Chief Of Police Sues For Libel On Radio . Doubt Communications Commission Bill Passage This Session Would Give One-Fourth Time To Education And Religion . Business Letter Notes. . . * . . * . 10 •'Milestones Of RCA Progress" . 10 Decisions Of The Federal Radio Commission . 11 No. 716 oo oo -a April 17, 1934. WOULD BREAK DOWN CLEAR CHANNELS AND CENSOR PROGRAMS There are now too many clear channels, Federal Radio Commissioner James H. Hanley* of Nebraska, declares. "More people would be served and better service render¬ ed, if we had more regional channels whereby several stations could be accommodated on the same frequency rather than preserve for the exclusive use of favored stations an entire channel when it is well known that the reliable service area of even high powered stations is less than 200 miles”, Commissioner Hanley said at the conclusion of his first year on the Commission. "The success of these experimentations will result in better, more diversified and more continuous programs to many sparsely settled communities which now have very inadequate radio programs. "Since coming on the Commission I have received numerous complaints from all parts of the country, particularly from the Fourt, or Middle Western Zone, which I represent, objecting to the character of the programs broadcast, particularly to the qualifi¬ cations and culture of the performers or so-called talent; also to the substance of programs broadcast both musical and otherwise, and too, much criticism of the language employed and excessive time occupied in advertising various products which millions of listeners do not use, but we Commissioners are powerless during the regular licensed period of a station to interfere writh such broadcasts because of the section of the Radio Act which prevents censorship. "The general public, on the other hand, says to us that we must see that the stations are operated in the public interest. There is nothing else to a radio station than its programs, ex¬ cept its inanimate and inexpressible equipment. The Commission of necessity must consider the programs of a station when called upon to decide if its license should be renewed or not. " Commissioner Hanley, who is a Democrat, said as a matter of fs.irness and equity that the Radio Commission should be clothed with enough authority to warn stations that certain classes of programs are undesirable and may lead to embarrassment if not actual punishment, if they are put on the air. In other words, it would seem to him unfair to stations for the Commission to be muzzled regarding the rendition of programs and at the same time be clothed with authority to arbitrarily and summa.rily put off the air a station which consciously or unconsciously has rendered - 2 - r 4/17/34 an objectionable program. It puts the Commission much in the attitude of a spider sitting in its web waiting for some prey on which to pounce, said Mr. Hanley. The Commission had adopted press released in the past. One, with reference to broadcasting lotteries and recently, one with reference to advertising intoxicating liquor on the air. These releases were in the form of a warning that the Commission would take cognizance of the character of programs and might designate for hearing the renewal application for a station’s license when the license for the current period expired. "This, of course, is nothing more than a ’gun behind the door' policy, or a ’stop sign' warning on a highway, announc¬ ing the speed limit", Commissioner Hanley continued. "It seems to me that the Commission should be given some authority by an amendment to the effect that it could without being regarded as censorship, say that such and such a program broadcast by a duly licensed station is not being broadcast in the public interest, or is not supplying any public convenience, or is not meeting any public necessity. "The air being the common property of all used as it is to convey radio communications, is comparable to any other public way.* * * * * * * "Consequently this question of program content and extent, particularly in commercial advertising is one that the Commission has been considering and will sooner or later have to solve. Of course we are conscious of the fact that regulatory statutes such as the Federal Radio Act must await the decision of the courts to determine just to what extent we can regulate and control without violating the anti-censorship section of the statute, but the Commission has been and will continue to be, and I think rightly so, petitioned by listeners protesting lotteries and games of chance being broadcast over radio sta¬ tions, as well as other programs. Eventually Congress will make provision for penalties and punishment against stations which per¬ mit flagrant misrepresentation of goods during sponsored programs. Many advertisements over the air are reeking with superlatives regarding certain mediocre if not harmful products. There is no doubt in my mind that the general public is being grossly deceived in many instances. You will recall that only recently an invest¬ ment house used much time on the air sponsoring a program primar¬ ily to sell its securities which proved to be practically worth¬ less. One of the greatest abuses of the radio today is the dis¬ position of advertisers to take advantage of the general public and the law as it now stands affords little protection. We look for relief through the measure designated as the Tugwell Bill now pending in Congress and I sincerely hope it will be enacted into law. "The listening public expects more in the way of proper, considerate, informative, tolerant and cultured broadcasts from a duly licensed radio station than from the ’soap box' unlicensed - 3 - 4/17/34 broadcaster. The licensing authority should be given power by law to say to the licensee, whose broadcasts are grossly improper 'Stop, your broadcasts are not in the public interest, conven¬ ience or necessity. 1 "Programs should be of wide appeal so that they will foster good-will and cooperation among all classes of our people and not stir social, political or religious strife or antagonisms They should avoid, particularly in the advertising field, what is commonly known as 'bad taste'. "While I firmly believe that the American system of broadcasting is the best in the world, there has crept into our system certain practices and abuses which are very apparent and tend to discredit, if not disrupt, the whole institution. We must correct the present abuses and injustices in our system otherwise public opinion will demand that we recapture all the government radio franchises and work out a new allocation, using as a yardstick in the New Deal the welfare of all listeners, "Under the present setup it is common knowledge that there is too much concentration of facilities in the hands of a few who have found it financially advantageous to use them in the congested areas, as a result we have an appalling duplication of programs in the congested areas while in the wide open spaces, in rural and agricultural districts, there is a dearth of facilit¬ ies. Constantly, we are forced to deny applications for radio facilities to serve outlying districts, many of which have no co; munication with the outside world because in the generous treat¬ ment of the big fellows the system has nothing left for the little fellow. "Again I believe we should set aside a liberal number of channels for the exclusive use of educators and educational institutions. It has been clearly demonstrated that radio earn be used most advantageously as an aid to classroom work and as a means of conveying worth while information to the general public. Opponents of that proposal claim that only a limited number of people listen to educational programs, but I contend that it is more in the interest of the public welfare and well being that 10,000 people listen to a learned discussion or lecture on some important public question or scientific subject, than it is for 1,000,000 people to listen to a great many of the programs that are now being broadcast. As I said in one of my recent dissenting opinions involving the rights of an educa¬ tional station: "'Many mature thinking people are not as much inter¬ ested in jazz, grand opera, or any other music as they are in listening to addresses, sermons, convention proceedings, agri¬ cultural and home economic information, and various other matters of sectional or state interest. ' "Whether or not Congress has the power to legislate on the question of rates has long since ceased to be a debatable question. My native state of Nebraska is a pioneer in 4 4/17/34 legislation on this subject. The Democratic and Peoples Inde¬ pendent parties back in 1892 advocated the fixing of rates to be charged by railroads doing an intra-state business. The late William J. Bryan favored such legislation and in the 1893 ses¬ sion of the Nebraska legislature there was passed such a measure. Its constitutionality was immediately challenged by the rail¬ roads interested and suit was commenced in the Circuit Court of Appeals of the United States for the district of Nebraska against Constantine J. Smyth, the then Attorney General of Nebraska, to enjoin the enforcement of the law. The United States Court for Nebraska sustained the law as constitutional but an appeal was immediately ta,ken to the Supreme Court of the United States. Mr. Bryan was one of the attorneys who appeared with the Attorney General of Nebraska in defense of the law, contending that it was within the police power of the State to legislate on the subject. The Supreme Court of the United States, however, held the law unconstitutional on the ground that it was repugnant to the Fourteenth Amendment to the Constitution of the United States, in that it deprived the railroads of their property without due process of law and of equal protection under the lav/. "The Supreme Court did not challenge the right of Nebraska to pass legislation on the subject." XXXXXXXXX RADIO NOTABLES ENJOY GRIDIRON DINNER Numerous persons identified with the radio industry were favored with invitations to the Spring dinner of the Gridiron Club in Washington last Saturday night in Washington. It was the first public appearance of President Roosevelt after his return from the West Indian fishing trip. The only speech of the even¬ ing, besides that of the President, was made by Senator Reed, of Pennsylvania,, who presented the Republican side. The radio people present at the dinner were: M. H. Aylesworth, President, NBC; H. A. Bellows, Vice- President, Columbia Broadcasting System; Capt. Taylor Branson, leader U. S. Marine Band; Gene Buck, President ASCAP; Harry C. Butcher, Manager of Station WJSV; Louis G. Caldwell, counsel for WGN, Chicago; Martin Codel, editor "Broadcasting Magazine"; Senator C. C. Dill, of Washington; Archer Gibson, New York City; William Randolph Hearst, Jr. , New York American; Robert D. Heinl, Heinl News Service; A. H. Kirchhofer, Station WBEN, Buffalo; Harold A. Lafount, Federal Radio Commissioner; Frank E. Mason, Vice-President, NBC; Richard S. Patterson, Jr. , Vice-President, NBC; Herbert Pettey, Secretary, Federal Radio Commission; David Sarnoff, President, RCA; Thomas R. Shipp, Washington , D. C. ; Frank Wozencraft, Assistant General Counsel, RCA. XXXXXXXX 5 4/17/34 TELEGRAPH CODE HEARING POSTPONED TWO WEEKS Deputy Administrator H. L. Peebles Has announced that when the continued public hearing on the proposed Code of Fair Competition for the Telegraph Communication Industry convenes in the Auditorium in the Commerce Building on Wednesday, April 18th, it will be forthwith recessed to reconvene at the same place at 10 A.M. on Wednesday, May 2, 1934. X X X X X X X 23 STATIONS GETTING RADIO BUREAU NEWS Twenty- three Western radio stations are now receiving the service of the Press Radio Bureau, it was announced by W. R. Gordon, editor of the Bureau. Of these, six are independent sta¬ tions, and the rest are affiliated with NBC, CBS and Southern California .Network. Although formerly known as the National Radio News Bureau, the name of the Western Bureau organized last month to give Pacific Coast newspapers and radio stations a more localized service, has been changed to harmonize with name of the eastern bureau and to avoid confusion, Gordon said, NBC stations taking the report are KDYL, Salt Lake City; KEX, Portland, Ore.; KFSD, San Diego; KGA, Spokane; KGHL, Billings, Mont. ; KGIR, Butte, Mont. ; ^KSG, San Francisco; KOAj Denver; KTAR, Phoenix, Ariz. ; KPO, San Francisco. Columbia stations are KDB, Santa Barbara; KFRC, San Francisco; KGB, San Diego and KHJ, Los Angeles. Southern California Network outlets are KFOX, Long Beach, KFWB, Hollywood and KFXM, San Bernardino. The Independents are KFAC, Los Angeles; KGER, Long Beac_ KLX, Oakland; KMPC, Beverly Hills; KMTR, Hollywood,, and KRKD, Los Angeles. KMPC, latest station to subscribe to the service, is installing a Bell System teletype to receive the report. Other local stations now pick up the report by messenger. Copy is delivered to out-of-town stations by Postal and Western Union. Gordon stated, however, that within a few weeks, service will be speeded with the installation of a Bell System No. 19 teletype, with 60-word speed. X X X X X X X 6 4/17/34 HOGAN FACSIMILE MACHINE IN REGULAR BROADCASTS NEXT JUNE The equipment for John V. L. Hogan’s facsimile trans¬ mission, recently demonstrated in New York, has been shipped back to Milwaukee and broadcasts will be begun there in June under the auspices of the Milwaukee J ournal which is pioneering in this new broadcasting development for transmitting photo¬ graphs, cartoons and printed material. The facsimile receiver is small and compact. A roll of paper a little larger than adding machine width is concealed in the lower part. It threads upward under the radio pen and into the open. The pen, a combination well and pen point, rests on a horizontal bar. As reception begins a motor synchronizes movement of the pen back and forth across the paper with the up¬ ward roll of the paper. A glass panel placed over the pen allows the observer to watch the reception of the picture or story as the pen moves back and forth. It draws a three- inch picture or three inches of print¬ ing in one minute and in an hour the observer will receive 180 inches of picture, cartoon or printed material. In the test the receiver operated at a speed of 40 words a minute, turning out comic pictures, a bridge problem, an outline drawing for children in color, and then used a children’s story with sound. X X X X X X X X K. C. CHIEF OF POLICE SUES FOR LIBEL ON RADIO A suit seeking $250,000 from the Columbia Broadcasting System, Remington Rand, Inc., and the Midland Broadcasting Co., for alleged libel and slander was filed in Kansas City by Robert J. Coffey, Chief of Police, according to an Associated Press dispatch. The suit was based on a recent radio broadcast depict¬ ing Kansas City’s March 27 municipal election in which four men were slain. The action charges that the words "acting chief, ex-convict, served time in the penitentiary", were used in the broadcast and are false. The Remington Rand Co, , office equipment manufacturers, the suit charges, sponsored the broadcast ("March of Time"). The Midland Broadcasting Co. operates radio station KMBC in KansasCity. James A. Reed, former Senator, is Chief Coffey’s attorney The fact that former Senator Reed has been engaged to handle the case may mean that it will be bitterly fought. Sen¬ ator Reed is noted for his vigorous prosecutions and not any too friendly to radio because one of his political broadcasts was cut off. Mr. Reed was also the attorney in the suit filed by the Grigsby- Grunow Co. against the so-called "Radio Trust. " X X X X X X - 7 - 4/17/34 DOUBT COMMUNICATIONS COMMISSION BILL PASSAGE THIS SESSION The conferences held by President Roosevelt with admini¬ stration leaders in Congress, apparently haven1 l decided the fate of the Communications Commission Bills now pending in the House and Senate. According to one source of information, the Bills were definitely doomed but according to another, they were not even discussed with the President and will not be until the disposition of other bills, considered more important, have been determined. The President was quoted as saying, upon returning from his Florida trip, that there were several major bills he desired considered 'and if, after these had been disposed of, there would be time to take up the Communications Bill without delaying adjournment, he hoped this could be done. If Congress is to adjourn anywhere near May 15th, it would seem that only great pressure could bring about the passage of the Bills this session. Senator Dill's Bill has been reported to the Senate but it may take sometime to pass it. House hearings, partially com¬ pleted, have again been postponed, this time to Tuesday, April 24th. This is but three weeks before the tentative time for adjournment and even if the session were extended until June 1st, the House Bill would have to go some to be passed by that time. It might then be considerably different from the Senate Bill with a result that time would be required for conference. Altogether the prospects for a Communications Bill at this session therefore do not look very bright. XXXXXXXX WOULD GIVE ONE- FOURTH TIME TO EDUCATION AND RELIGION Apparently a follow-up of the proposal made by Rev. John B. Harney, of New York, Superior of the Paulist Fathers who operate Station WLWL, that such a redistribution be made, Representative William F. Brunner, Democrat, of Rockaway Park, New York, intro¬ duced a Bill in Congress which would give 25$ of all radio facil¬ ities to religious and educational institutions. The text of the Bill is as follows: "Be it enacted by the Senate and House of Representa¬ tives of the United States of America in Congress assembled, That to eliminate monopoly and to insure equality of opportunity and consideration for educational, religious, agricultural, labor, cooperative, and similar non-profit-making associations, seeking the opportunity of adding to the cultural and scientific knowledge - 8 - 4/17/34 of those who listen in on radio broadcasts, the Commission shall require that all radio broadcasting stations allocate not less than one-fourth of their operating time to educa,tiona.l , religious, agricultural, labor, cooperative, and similar non-profit-making associations. The facilities so allocated shall be equally desirable as those assigned to profit-making persons, firms, or corporations. " Numerous petitions urging similar legislation as this are beginning to be received by Senators and Representatives* In this connection the following letter from Mary Filser Lohr, President of the Catholic Women's Union of New York State, was presented to the Senate by Senator Robert Wagner, of New York: "This is an appeal on behalf of Radio Station WLWL of New York City, the only Catholic broadcasting outlet in the entire Northeast section of the United States. "For the past several years WLWL has courageously struggled against many of the obstacles and handicaps so that this station could continue, and that the work which is being done by the Catholic Church in one of the principal Catholic cen¬ ters will not be jeopardized or completely wiped off the air. "Since 1927 WLWL has been discriminated against unjustly. Once a station with unlimited time, it is now reduced to 15^ hours a week. Columbia Broadcasting has profited by the curtailment of WLWL ' s time, contrary to the regulations of the Federal Radio Commission. "The efforts to obtain WLWL's just rights from the Federal Radio Commission up to the present have been unsuccessful. Columbia Broadcasting holds the wave length on which WLWL has only 15-| hours and refuses to give it up; its attitude is clearly ex¬ pressed in a letter received by WLWL from Mr. Edward Klauber dated March 7, 1934, in part as follows: "'Let me say once more, in order that our position may be entirely clear, that we do not feel that we can conscientiously or with due regard to our own interests or those of our audience surrender any of this wave length to you, nor do we know that the Commission would allow you to have it, even if we were willing. * "Educational and religious radio stations that are striv¬ ing to render real service for educational and moral life of their listeners are given but a few hours and are thereby sacrificed for unnecessary and commercial programs. "The Radio Commission has consistently discriminated against educational agencies in the allotment of broadcasting facilities, though the development and extension of education is a deep-rooted policy of our people. "I would request that you carefully consider the amend¬ ments as follows: Section 301-A, 301-B, and 301-C, and use your Dest endeavors to support these bills. By so doing you will aid the cause of moral, educational, and religious progress in our country, whose proudest boast is its devotion to the cause of education. " XXXXXXXX - 9 - 4/17/34 BUSINESS LETTER NOTES Herbert L. Pettey, Secretary of the Federal Radio Com¬ mission, has been appointed to the Legion of Honor of DeMolay, it was announced by Grand Scribe Frank S. Land, of Kansas City, Mo An RCA Victor Public Address System, just installed in the Willard Hotel in Washington, D. C. , was used for the first time the night of the Gridiron Dinner. It worked so well and voices were reproduced so naturally that guests were hardly aware that mechanical devices were being used. The banquet hall is a city block in length but the voice of President Roosevelt was heard perfectly in every part of the room. Roger H. Eckersley, Director of Entertainment for the British Broadcasting Corporation, arrived in New York aboard the "Georgic" this week to begin four weeks study of American radio technique. Mr. Eckersley is the first of a group of BBC depart¬ ment heads sent to this country as a result of Sir John Reith' s visit here for the opening of Radio City, Mr. Eckersley made a brief inspection of the Radio City studios yesterday. He will remain in New York for three days, then visit NBC studios in Chicago and Washington. XXXXXXXX "MILESTONES OF RCA PROGRESS" A 45-page booklet, pocket-size, has been issued entitled "Milestones of RCA Progress." The preface of the booklet reads: "The Radio Corporation of America has held a position of leadership in laboratory research and in the development of radio services throughout the years in which the radio industry in the United States has risen swiftly from halting beginnings to its present place. So many of the important forward steps in radio have been initiated by the Radio Corporation, and in so many others has it been among the leaders, that the story of RCA 10 4/17/34 outlines the larger story of a radio era. In the following sum¬ mary of important events in RCA history will be found many of the milestones of that era. The milestones begin with the year 1919, the highlights of which are set forth as follows: "First move to offset world communication dominance in foreign hands in letter written by Franklin DQ Roosevelt, Acting Secretary of the Navy, requesting the General Electric Company to suspend negotiations for the sale of Alexanaerson Alternator to the British Marconi Company until after a conference with the Navy Department - April 4. "Conference at General Electric Company’s offices relative to retention of Alexanderson Alternator in American hands, attended by Admiral Bullard and Commander Hooper of the Navy and the General Electric’s representatives, including E. W. Rice, Jr. , President of the Company; Owen D. Young, Vice-Presi¬ dent; Albert G. Davis, Head of the Patent Department; E. P. Edwards and C. W. Stone, of General Electric - April 8. "Radio Corporation of America organized - October 17. "First effort to unlock United States patent deadlock by cross license agreement made between Ra.dio Corporation and General Electric Company - November 20. "Marconi Wireless Telegraph Company of America assets and business ta.ken over by RCA - November 20." Then follow other "milestones" up to and including Christmas Day, 1933. X X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (April 17, 1934) WLW, The Crosley Radio Corp. , Cincinnati, Ohio, special exp. auth. to operate with 500 KW power using transmitter of W8X0 for period ending August 1, 1934; WSFA, Montgomery Broadcasting Cc. , Inc., Montgomery, Ala., special temp. auth. to operate simultan¬ eously with station WALA from 6:15 P.M. to 12 midnight, CST, April 23, 24, 25, 26, 27, 28, 29 and 30, 1934, with 250 watts power; KFPY, Symons Broadcasting Co. , Spokane, Wash. , special tern; . auth. to operate station without an approved frequency monitor for period of not more than 2 weeks from April 20. Also, New City of Stockton, Cal., Police Dept., C.P. frequencies 30100, 33100, 37100, 40100 kc. , 15 watts; New, Sun Oil Co. , Portable #1, Recording Station and Portable #2 and 3, C.P.s (Geophysical) 1652 kc. , 5 watts; WNEE , Superior Pine 11 - .. ; £ ' •> I.-.: i - u -t... :i r 8 1 • ■ . ■ He ini 4/17/34 Products Co., Fargo, G-a. , C.P. to install new equipment and in¬ crease power from 50 to 100 watts; WSDM, Albany, N. Y. , and WSDD , Boston, Aeronautical Radio, Inc., license, 2612, 2636, 3467.5, 4740 kc. , unlimited, 6540, 6550, 6560 and 8015 kc. day only, 250 watts power; WSDK, Memphis, Tenn. , same except licensed operator at control point only. Miscellaneous WG-BI , Scranton Broadcasters, Inc. , Scranton, Pa. , C.P. 880 kc. , 1 KW, to share with WQAN, heretofore set for hear¬ ing, was dismissed at request of applicant; New, Victor Beverly Pitts, Raton, New Mexico, C.P. 1500 kc. , 100 watts, daytime, heretofore set for hearing, was dismissed at request of appli¬ cant; Lloyd G-oodstorf. Marion, Wis. , barred from examination for radio operator privileges, for a period of 6 months from this date, because he unlawfully operated an amateur station without having first obtained a license from the Commission; Milton Davis, Marion, Wis. , same. Ratifications New, Monty G-lennwood Mason, 527-E, granted license to operate aircraft station as broadcast pickup station, frequency 2102, during period of blind flying endurance flight; Same, at Alhambra, Cal. , C.P. to communicated on experimental basis granted in the aviation service, frequencies 31600, 35600, 38600, 41000 kc. , 10 watts; Action taken April 13: KQV, KQV Broadcast¬ ing Co. , Pittsburgh, Pa.. , granted extension of special temporary authority to operate simultaneously with WSMK from 7:15 P.M. to 12 midnight, for period beginning April 15, and ending not later than May 1, 1934; WSMK , Stanley M. Krohn, Jr., Da.yton, Ohio, granted extension of special temporary authority to operate sim¬ ultaneously with KQV from 7:15 P.M. to 12 midnight, for period beginning April 15 and ending at not later than May 1, 1934. Also, WPG-U, Town of Cohasset, Mass., Polict Department, granted license to cover C.P., 1712 kc. , 24 watts; KIFS, KFJI Broadcasters, Inc., Klamath Falls, Ore., granted authority to use broadcast pickup station on April 21, Lakeview, Ore., fre¬ quency 1622 and/or 2150 kc. , 50 watts; KIKX, American Hawaiian SS Co., San Francisco, granted 3rd class public service ship license. Set For Hearing New, Joseph Pappalardo, Methuen, Mass., C.P. for new station, 1120 kc. , 500 watts, daytime; New, D. J. Burton & L. C. Davis, Temple, Texas, C.P. for new station, 990 kc. , 250 watts, daytime; WDGY , Dr. G-eorge W. Young, Minneapolis, Minn., C.P. to make changes in equipment, increase day power from 1 KW to 2 KW (l KW night) and change hours of operation from limited to unlim¬ ited to be heard before the Commission en banc on June 6. XXXXXXXX 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Not for Publication { U L L INDEX TO ISSUE OF APRIL 20, 1934 New Device Shows Aural Radio Range Signals Visually Paley’s Salary Estimated At $275,000 . . 2 3 February Broadcast Advertising A Trifle Off . Radio Merely Peanut Vendor, Says Educator . Auction Sales Of Radios Bother African Merchants Ally At Radio Also Held Guilty As Aid In Holdup. NB0 Sales Department Reorganized. . . Senate Bill May Be Called Up Anytime . Radio Commission Soon Moves To New Quarters . Squier Bequeaths Estate To Sister . . . Business Letter Notes. . 8 *v Coughlin Receives Half Million Dollars Year By Radio.... . 9 Educational Programs Volume Increase, Says Aylesworth . 10 NBC Boosts Hedges And McCarthy. . . . . 11 Decisions Of The Federal Radio Commission . 11 No. 717 a oicn ^ April 20, 1934. NEW DEVICE SHOWS AURAL RADIO RANGE SIGNALS VISUALLY A device which visually interprets the signals of aero¬ nautical radio range beacons which are received through headpohones and are relied upon by airmen for directional guidance under condi¬ tions of poor visibility, has been developed by W. E. Jackson and L. M. Harding, radio engineers of the Aeronautics Branch, Depart¬ ment of Commerce, it was announced by Rex Martin, Assistant Direc¬ tor of Aeronautics in charge of air navigation. "The device includes an indicator which fits into the instrument panel", fir. Martin explained. "It is similar to that developed for use with the Department’s experimental radio system for blind landings and can still be used for this purpose if desired. It has an open face with two needles, one vertical and the other horizontal. The vertical needle is the chief indicator. If the aircraft moves off the course defined by the radio beacon, this needle moves accordingly in the same direction. If the plane is exactly one course, this pointer remains in the center of the dial. The horizontal indicator shows the volume of the received signals which can be adjusted by the pilot. "In addition to the indicating instrument, there is a small converting set which is attached to the aircraft's regular radio receiver. This set fits into a small box 6 inches long by 7 inches wide and 7 inches deep. No changes are necessary in the regular receiving set. "When the signals are received they are passed into the converting box and changed into impulses which actuate the visual instrument in front of the pilot. The signals may be received through the headphones simultaneously, thus giving visual or aural Indication as the pilot desires. "If the headphones are used, however, the pilot will hear a predominant dot or dash when off course, depending upon the dir¬ ection, instead of the familiar Morse code A („-) or N (-.). It is necessary to change the character of the signals transmitted by the radio range beacons in order for the visual indicator to function. The airman would still hear a steady signal when on course. "One of the chief advantages of the new device is that it requires only a slight and inexpensive change in cams at the radio range transmitters. "The general problem of making radio range signals avail¬ able to airmen in a visual form has been before the Department of Commerce for several years. One of the first solutions considered 2 4/P0/34 was that of installing visual type transmitters at radio range stations which would actuate two vibrating reeds on aircraft instrument panels. However, this method would have cost about $500,000 for the entire airways as against less than $500 for the system just developed. "The arrangement developed by the two radio engineers has undergone extensive flight tests which have shown it to be satisfactory. However, no definite plans to place the new system in operation on the Federal Airways will be made until it has been given practical service tests by those airmen who fly the airways regularly and not then unless these expert users of the aids to air navigation signify their wishes for the new device." Mr. Jackson and Mr. Harding have been working on the development of this arrangement for several months. XXXXXXXX PALEY'S SALARY ESTIMATED AT $275,000 With the stockholders estimating that profits of at least $5,000,000 will be garnered this year from the sale of net¬ work facilities and the operations of the CBS Artists Bureau and CBS-owned stations, William S. Paley stands to take in as Presi¬ dent of Columbia around $275,000 for 1934, Variety figures. "This coin is exclusive of what he will collect in dividends as or of the web’s major stockholders", the theatrical publication goes on. "Paleu’ s status as a money earner from the angle of youth has its parallel in pictures. He, like Irving Thalberg of Metro, is only 34 years old. "Paley1 s salary arrangement with the CBS Board of Directors was revealed in the executive payrolls for both that network and NBC released by the Spiawn report made to the House Interstate Commerce Committee. Paley* s contract calls for a guarantee of $40,000 a year plus 2 of the profits up to $600,000 and 5% of the network's earnings above $600,000." An aftermath of the Spiawn report was the Board of Directors of the American Telephone and Telegraph Company backing the big A. T. & T. salaries. Julian I. Pierce, librarian of the American Federation of Labor, owning 11 shares, moved that the salary of W. S. Gifford, President of the A. T. & T. $206,250 a year be reduced to $75,000 and that no other officer receive more than $20,000 a year. The secretary of the company read a state¬ ment by the Directors of the A. T. & T. indicating that if they could get "better men by paying more money, it would be wise to do so. " X X X X X X 3 4/20/34 FEBRUARY BROADCAST ADVERTISING A TRIFLE OFF Broadcast advertising in February showed a slight decline as compared with the preceding month, the National Association of Broadcasting reports. Gross sales of time amount¬ ed to $5,943,820 and were 4.1$ less than in January. National network revenues were 36.4$ above February 1933, though showing a drop of 5.5$ as compared with the preceding month of the cur¬ rent year. Non-network advertising decreased 2.0$ as compared with January, while regional network advertising increased slightly. Slight increases in advertising were experienced by stations of 1,000 watts and under, while minor recessions took part in the higher power classes. All geographical districts tended to hold their own as compared with the previous month, the drop in Southern revenues being largely offset by a small increase in Middle Western business. Spot advertising exhibited slight gains, while local advertising decreased approximately 4.0$. Electrical transcription volume continued strong, while spot announcement volume showed added recessions. The large gains in spot and local beverage advertising, the marked increase in national network automotive advertising, and the equally mark¬ ed shrinkage in spot and automotive advertising were the princi¬ pal features of the month in the field of sponsorship of advertis¬ ing. XXXXXXXX RADIO MERELY PEANUT VENDOR, SAYS EDUCATOR Radio should be used as ,fan instrument for spreading culture rather than as a peanut vendor", Dr. Tracy F. Tyler, educator, told a conference on radio control at George Washington University in Washington. Discussing the question, "Should the United States Adopt the British System of Radio Control?" Dr. Tyler said there is "evidence of growing dissatisfaction on the part of the American public with present broadcasting." American broadcasting methods were championed by Dr. Henry A. Bellows, Vice-President of the Columbia. Broadcasting System, who held that commercial sponsorship has placed some of the finest talent on the air. "Most of the complaints as to radio programs come not from the public, but from those who like to tell people what is good for them - from professional reformers", he said. X X X X X X X 4 4/20/34 AUCTION SALES OF RADIOS BOTHER AFRICAN MERCHANTS The introduction of auction sales to dispose of new radio receiving sets in the Union of South Africa has served to complicate competitive oonditions in that market, according to Trade Commissioner E. B. Lawson. Auction-room sales of radios, he points out, are steadily increasing in the Union, especially in Johannesburg. There have been increasing instances, Lawson reports, where local auction rooms have placed orders with manufacturers' agents for shipments of new radios, which have been put up for auction to the lowest bidder, and thus set up additional com¬ petition to the established radio dealers and distributors. These stocks include not only cabinet sets, but automobile sets which have only recently come into the market. Inasmuch as the prices obtained at these auction sales are reported to be substantially lower than comparative dealer prices, there is a growing fear in the local trade that auction sales will increase unless dealer- importers are able to prevail upon manufacturers' agents to refuse indent orders from auction¬ eering concerns. It is recognized that purchasers of radios at auction do not receive the usual ninety days guarantee given by the regular dealers and enjoy no established servicing facilities. However, there are numerous radio service men who will supply service at a price, equally as low as the authorized dealer, and the individual purchaser is content to make a saving on the original price of the equipment. X X X X X X X ALLY AT RADIO ALSO HELD GUILTY AS AID IN HOLDUP Staying home and listening to a police broadcast of a holdup can be as felonious as taking part in the robbery. An alibi was interpreted as admission of guilt in Washington in District Supreme Court when Charles Potter Haynes, alleged to be one of the four men who robbed a Childs restaurant near the Union Station, told the court he was home at the time listening to a radio account of the holdup. Any premature hopes of acquittal were dashed when he was promptly sentenced to serve from a year to 14 months. Police claimed it was Hayes' role to stay home and listen to the radio alarm so that he might inform his confederates. X X X X X X 5 cl ot1 XI • . ’ r • noj i jj . " ■ “ ; '■ \ . .. ■ . \ ; ■ ■ . ■ O ' . . •, > ; < o a o a ft ; . if o t- j : i. f : V'; ■ •• >; ' J C Q ■ ... .Oij i.j jinx a j ii n \ 5 k'X< ' . ' . v • ’ ' v . ‘ bft pd - Dri, .. .. ■ .1 ,6 * * .f: . . . n; G - .. ’ ' A’i " G ' ni ■ i : ■ ioq ' ; y:.r y;; [y ; : ' .... :'g . ;;;• . * ; 'me r.i s ; - .s . j ‘ - . V""... . XUMt \ 53 t la sc . f, ' G- g. ; * ‘ ,i v- Ip- !\no . . .... . •- ■- * .- • , t . . .' . ■ ;r; 3 i J'C ; ■ .XI ■■i. i . .. • - ij . ■ v i j . . . 5 4- ’ ? . - ; ' . . :, r. ■ ; ' bhfx ■ . . r cr - ••• - ... ■ . Mi'? ::g - ' J.- ... . ■ ■ r, ■■■ • o ' i .. , ; - f ■ •...u i f •••• - £ g 4/20/34 NBC SALES DEPARTMENT REORGANIZED At a meeting of the NBC Sales Staff last Saturday, April 14th, Edgar Kobak, recently-elected Vice President in Charge of Sales for the National Broadcasting Company, announced a new sales set-up, "organized to serve the convenience of the advertiser and his agency rather than that of the NBC itself. " The local and national sales staffs are now merged, with all salesmen reporting to the Sales Manager of their respective NBC territorial Division - Eastern, Central or Western. All advertisers with national or semi-national distribu¬ tion, whether they wish to use networks, transcriptions or local programs, will be served by the salesmen assigned to national accounts. Strictly local advertisers such as department stores and banks will be served by other men specializing in this type of business. All salesmen in each NBC Division, whether working on national or local business, will be members of a single Sales Department and report to one Divisional Sales Manager. The reorganization becomes effective immediately in the Eastern Division office and will be extended to the Central and Western offices as soon as practical. Kobak is now in Chicago for the purposes of gaining a first-hand acquaintance with the personnel in that office and organizing a similar coordination of Sales Departments for the Central Division. He is a,ccompanied by Roy C. Witmer, NBC Vice- President, who will now act as operations head of all NBC Sales. When the reorganization is completed, every NBC-managed station will represent the National Broadcasting Company as a who] and will not confine itself to so-called "local, spot or trans¬ cription'1 representation, as formerly. While no new titles have yet been announced, it is understood that sales in the Eastern Division will be headed by Donald S. Shaw (previously Eastern Net¬ work Sales Manager) assisted by James V. McConnell (previously Eastern Division Manager, Local Sales). Lloyd Thomas will continue to give his personal atten¬ tion and supervision to the development of local business through all stations represented by the National Broadcasting Company. Simultaneously with this Sales Department reorganiza¬ tion, a realignment is announced in the advertising and sales promotional staff. Four definite groups are established, report¬ ing to E. P. H. James, Sales Promotion Manager. The respective heads of the four groups are - B. J. Hauser, Presentations; J. K. Mason, Merchandising; W. C. Roux, Advertising, and Paul Winchell - Marketing. X X X X X X X 6 1 ■ * ; i. K :• ■ ; ; V,(JO ■: T'.: . -t • • . r."0.0: v.cij • ; cl ■: r 1 ■*« ; ‘ . 1 .r.oi. • , ... ; • . ;• O • • • v.: ’ ..l r.-O l-..- ... ’ . . ■ ? iv ; » - ; il., , o ■ * ■' ,, ooi /. fv.i -jog . :* ;■ .. . . JO ‘";£ r !> iw. i . A:' '.j i Oci ..A;.:'- CCJ.'-v- b:; /• . - i . . I :oo,i” - i I id-03 0v 01 •. . . . •• • -r. ii !■> i, - ■ ■ :i ' i.o: J l;C:i o l,: Ino ;;; 1 !. ' v j., xq ) a oil .1 : IniicC vfi boh, . o ■ / ,Y ; 1 . . j o c on . ( , 1 1 -ocd 4 o • * A ■ .o • 3 • 0- •- • ; . ..V .i. LIP'} 0 JSC ■ ■■ oj no. I i Sit OB S 1 V.lOUV n i- •> ioc -r . x Ini '• !• c; r.o 0: 1 • : iO: : .J . •: . • • • ; . 1 -f • •. ,.T, ,Q ■- O'Y: o. • X; j TDU* / ' • . ) - . : ’ . . . - t - J. , - 4 • . 4/20/34 SENATE BILL MAY BE CALLED UP ANYTIME The Senate Interstate Commerce Committee, which had previously ordered a favorable report on the Senate (Dill) Com¬ munications Commission Bill, has now formally reported the Bill to the Senate. This serves to place it on the calendar and at anytime now it may be called up for consideration at the will of a majority. While there is a possibility that the Dill Bill may be passed by the Senate this session, the fact that Representa¬ tive Rayburn, of Texas, is apparently not making any particular effort to expedite the House Bill makes it appear unlikely that a Communications Bill will be passed by both Houses this session. Hearings twice postponed will be resumed by the Rayburn Committee next Tuesday and may last for several weeks. If so, this may slow up the proceedings and put the entire fate of the Communica¬ tions legislation in jeopardy. XXXXXXXX RADIO COMMISSION SOON MOVES TO NEW QUARTERS The Federal Radio Commission is scheduled to move to the new Post Office Department Building on Saturday, March 28th. This is located on Pennsylvania Avenue, the next block west of the old Post Office Department building. X X X X X X X SQUIER BEQUEATHES ESTATE TO SISTER Maj. Gen. George Owen Squier, U.S.A. retired, who died March 4, left his estate of at least $120,000 to his sister, Mary Squier Parker, of Dryden, Mich. , it was disclosed in Washington when his will was filed for probate in District Supreme Court. Mrs. Parker was named executrix of the estate. Besides personal property and real estate totaling $120,000, Gen Squier owned certain patents, the value of which is unknown. The will was filed by Attorney James A. Purcell. XXXXXXXX 7 4/20/34 BUSINESS LETTER NOTES In granting special authorization to the new 500,000 watt transmitter of WLW, operated by the Crosley Radio Corporation at Cincinnati to continue experimentally until August 1st, the Federal Radio Commission reports that no complaints have been received that this super-powered station has caused any interfer¬ ence to other stations. The transmitter has been temporarily designated W8X0 and has already been heard in many parts of the world. A message of greeting flashed from the headquarters of the International Telephone and Telegraph Co„ in New York City, was received at the same address three minutes and forty-six seconds later, after it had traveled 25,000 miles around the world by tele¬ graph and cable. The message was sent by Col. Sosthenes Behn, President of the International Telephone and Telegraph Co. to William S. Paley, President of Columbia, in connection with a broadcast entitled "Spanning the World. " The American Society of Composers, Authors and Publish¬ ers last week distributed the largest dividend plum in the history of the organization, Variety reports, and adds: "For the first quarter of 1934 the Society collected over $800,000, with approxi¬ mately $650,000 of this constituting the amount split up among the members. Jump in royalty check figures was about 35/ above what they were for the final quarter of 1933. " A Bill has been introduced by Representative DeRouen, of Louisiana, to authorize the transfer of the Otter Cliffs Radio Station, operated by the Navy Department, on Mount Desert Island in Maine, as an addition to the Acadia National Park. The station occupies about 12 acres of land. XXXXXXXX 8 - COUGHLIN RECEIVES HALF MILLION DOLLARS YEAR BY RADIO Some amazing statistics are given in connection with a lengthy article about Father Coughlin which appeared recently in Fortune Magazine , excerpts of which follow: "Early in 1932, Father Charles E. Coughlin of Royal Oak, Michigan, preached a radio sermon on the topic, 'Hoover Prosperity Breeds Another War. ' And within a week after he had finished speaking one million people sat down and wrote to him. Six hundred thousand people wrote to him after he had dubbed J. P. Morgan, Andrew Mellon, Ogden Mills, and Eugene Meyer the modern 'Four Horsemen of the Apocalypse.' At this very moment thousands of letters are en route to Father Coughlin in the U. S. mails. In his parish in the suburbs of Detroit there are only a small number of regular communicants, but Father Coughlin receives 80,000 letters a week. "So far as response is concerned, Father Coughlin in just about the biggest thing that ever happened to radio. Radio men say that each of the twenty-seven Sundays during the year when Father Coughlin preaches over twenty- seven radio stations, there are thirty million people listening to him. Discounting all radio statistics, set down ten million. But an audience of ten million is probably the largest steady radio audience in the world. It is hard to make comparisons because the radio fans usually respond heavily only to offers of free goods. A big star like Rudy Vallee gets only 2,500 unsolicitied letters a month. But when the silly Grade Allen, of Burns and Allen, offered a book of her wisecracks, she got 300,000 requests in a week. Father Coughlin dwarfs even this record; he has touched the million mark and several times approached it, and there is that average of 80,000. He has to have a clerical staff of 150 women to deal with his audience. If you are thinking of comparing him with other famous radio preachers like S. Parkes Cadman and Harry Emerson Fosdick, you may as well stop at once; his mail exceeds theirs by at the very least 1,000 to 1. "And here is the most astounding fact of all. Father Coughlin's mail contains not coupons but - cash, cash, cash - hundreds of thousands of dollars in voluntary contributions. He got enough cash in 1933 to pay a radio bill of $380, 000 and start a new stone church which is expected to cost $1,000,000. His probable radio audience of 10,000,000 gives perhaps $500,000 a year to his works and ways. Father Coughlin walked into a Detroit bank one Tuesday morning and deposited $22,000 in one-dollar bills which had arrived in Monday's mail. He does that sort of thing all the time. Every cent of his expense is met by voluntary con¬ tributions, Some say he has delusions of grandeure and point to the small number of regular communicants. What does he want with a church seating 2,800? But Father Coughlin will tell you that once the new church is built, he will attract the people to fill 9 8iL [JO < MC IJI3 .. A so: ih >U ‘ - ~ > f ' ■ ' byo;H “id nll% . yW ; il.d . . . , .. $oi* - . f . ■ ■ ; . • . : . , . ‘ >#A~'e ' .. v.C ■ ah .5.a.d, ,-x /: ■ : - • ' 3. Lq - . ■ bid : < >i - ff • ... ii ■ ■ ■ if oQ • X • ‘ '.X;i a x n l Jui&if oO *x •; xij »■> ..... ; : v, n son ... ; X- .. . ; > . < . X . •. xA ' 3 ’ "• . i ;}'a ix:; . : ... f , t ; ujixo - ' 1 ... .... .00 SI 38 Q r/ 4 - Oq ! . .v • ?4 i (lq . xi 3 . . V : • ' .i A rvimr '■* /-v • ' f r 1 s | i .. - i ' x q : : . ■' ' ; 1 .< •• » . “ ' , .t- . % : ; i :-c . ';X . i iu :s ■ . . . ■? .. c:; i i . . . . .... ... i , . • } S h] -;> , • • rf.9. . ; ; % 'j . : > u ' : .. r ' S ‘ 1 ' ... ■' .. . ■ : [ -! ■ - g ,. • ; .! . Vi ■ u . ' .• v X' i Q £ , . . . : ;v I • ii ■ . .* . •. • * "r* . . • •• ••■; ; •••• • . ' 'V . . V... ."..i . ■ 1 J l ’ ‘i.. J> ' a r\ . . ■ ■ i c ■ 1 ' ■■■ V - ' yo '■ . . Ur i.:: r >• r.: Uy • : .= ... ... ..... . . - . . / ' . f; . it .. % E> % ,1'Ib to Joat 3 n ■; . . , .. ■ • » - 1 >•. '* ! . • r' • -v. ' ' : • , j V.X-H.1 x*-.. : i’ ; • ‘ r r £•. (”' ■0 . - ai et • ■ . - . : fit • . : ■ • • q ■ . ■ : ; .• .. AtI . ,x; - i- ' c • .." : ... ■•'. t' • J . . . q ■ ‘ - L .S? X.-. ■ ■ : ■ ' • ■ i .. .. : iO. ■ i r •; . • : ■ $ i ..ll j ■ • ■ ' i £ . .. : % a. ., J ' : ...• , •' V • ' • . " ,x ■ ilk’ ■ .1. - ■ M 0*3 X ' i ■ '' -f 5 ■ : ..' : ; ' . .* , j : [i ■ , , . ' f he \ , ;■ rf . ■ ’ . • 'J . .. . . '•vrXL f.( ' '' • ; v*' \ . ;• ' f0* %■ .i . ‘Xac ‘ L: 4/20/34 it. And since he now has to turn away four times as many visi¬ tors as he receives at six Sunday masses, he has some claim to being believed. Leo J. Fitzpatrick of Station WJR, in Detroit, is ref¬ erred to as the technical guide of Father Coughlin’ s entire radio career. "Mr. Fitzpatrick was friendly enough to squeeze Father Coughlin into WJR's Sunday litany of jazz bands and ballad singers. He was friendly enough to slice the rates for Father Coughlin’s benefit. Instead of paying $450 an hour, it was agreed that, until the results had been tested, the parish would pay only $100. Four weeks later a microphone stood on the lectern at Royal Oak, and on Sunday afternoon Father Coughlin broadcast a gospel sermon. During the next week he got eight letters about the broadcast. He answered them all by hand because he had no typewriter. " XXXXXXXX EDUCATIONAL PROGRAMS VOLUME INCREASE, SAYS AYLESWORTH The volume of educational progra.ms over the radio is far greater than generally believed, M. H. Aylesworth, President of the National Broadcasting Company, declared at the annual meeting of the Advisory Council of the NBC held in New York City.. "Education by radio in the schoolroom must of necessity be generally localized to the community where the curriculum and local time make possible broadcasts that do not interfere with local school activities or with the established course of study", he said. "In other words, radio cannot assume the place of the school teacher in the classroom. On special occasions outstand¬ ing national radio broadcasts may be heard in the classroom which serve to put the classroom in touch with the world of public affairs. Instances of this occur where a member of the Cabinet or the President of the United States addresses the nation. "The prime importance of so-called radio education is ii programs to adults dealing with a much broader phase of the term 'education' than that known in the classroom or university. It is here that radio can best serve all the people of our country. The programs which are of the greatest value are those that definitely serve the most immediate need. We have learned this if we have learned nothing else over a period of seven years in broadcasting. " William Green, President of the American Federation of Labor and a member of the broadcasting council, said that the network had consistently maintained the democratic principle of free speech. He declared that during political campaigns the representatives of all parties had received the privilege of broadcasting political messages and "in the few difficult situa¬ tions which arose great tolerance was shown by those in charge. " XXXXXXXX - 10 - . • : ' ft = '-r vr'' : ; r '? ,5 t 'ioX • - 7 XX 7 :a.„7. >.o , iJ . • , ' -x • ; ! • . . • 3 . . . / ttB i®d > - , , . 1/ : ■ ' ■ ... : . . ■ * ,00 ■ ■ ' '■ - • . - ■ ,-v *• . ; ft'/: ' . •£. v -V • • *1 r -V* ./ ■ 7 //: ; " -tj SC 0* 'X "X . x . . . x . • fj 77 ■ :;7_-v . - f: , . .' '■ • X. 7 7 ' X. ' ; .X';.; •. .. ..." X , W ft .• ; ; 'X 1 :7; : ■ " •' ‘X ■ - f; •- . ’ ; ■ ft ! v ; » ; ... ft-. .;. .. • X;.: ■ ; - ' ; ’ •; _ • X- ' : '■ - .... i ■ ■ . i ■ 3'Ot Xft 4 '$ loi V" ^ ridx i . ■ '- j.. ... • ' X n ft !" i :.X ; ■■ ; . ' , X ■ • ; x _ • nbj .- .XrXd ,ir •; ■ ■ .X, ;. •• X :X ' : ;•:« x- x . --v. « .... ■ • . • •• * • - • . . ' ! ♦'* "• - ■ : .' tt ■ ( Li f fi - " " '•Xv -• ' : i. - ■ ' .* v':,v;X.' ■ ' . .-r : }' .‘X .77 ;V . • Hi ., " ; ft. ^ - ■ - ■ . . .ft. .ft ,' r - - • • . .: f ■' 7- 4/20/34 NBC BOOSTS HEDGES AND MC CARTHY An expansion of the station relations department of the NBC has been accomplished through the advancement of William S. Hedges and C. L. McCarthy to new positions under Donald Withy comb, department manager. Hedges will be manager of all NBC managed and operated stations. He formerly was manager of KDKA, Pittsburgh. McCarthy, associated with the NBC's Pacific Coast activities for the past seven years, becomes manager of the associated stations section of the station relations department. Both Hedges and McCarthy are veteran radio executives. Hedges' radio career started in 1922, when he established the radio department of the Chicago Daily News. Later he became president of the WMAQ, the News station. In 1928 he was named president of the National Association of Broadcasters, and in 1931 was made chairman of the NAB executive committee. McCarthy has been with the National Broadcasting Co. since the inception of its Pacific Coast division in 1927. After serving in the engineering, traffic and station relations depart¬ ments, he was appointed assistant to Don Gilman, NBC Vice-Presiden on the Pacific Coast, four years ago. He has been in charge of operations of Stations KPO and KGO, and his duties generally have been of an administrative na.ture. XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Action On Applications For Facilities In The Band 1500 to 1600 he, New , John V. L. Hogan, Long Island City, N. Y. , granted C.P. for new station to operate on 1550 he., 1 KW, variable; such part of the full 24-hour day as is necessary for conduct of planned research (effective May 11, 1934); New, American Republi¬ can, Inc., Waterbury, Conn., granted C.P, for new station to operate on 1530 kcs. , 1 KW, unlimited time (effective May 11, 1934) New, Pioneer Mercantile Co., Bakersfield, Cal., granted C.P. for new station to operate on 1550 kcs., 1 KW, unlimited time (effect¬ ive May 11, 1934) ; New, First National Television, Inc. , Kansas City, Mo., granted C.P. for new station to operate on 1530 kcs., 1 KW, unlimited time (effective May 11, 1934); New, Unity School of Christianity, Kansas City, Mo., denied C.P. for new station to operate on 1530 kc. , 1 KW, unlimited time; Fred W. Christian & Raleigh W. Whiston, Norco, Cal., denied C.P. for new station to operate on 1570 kcs., 1 KW, Maximum unlimited time. The above applications for facilities in the Band 1500 to 1600 kc. to develop high fidelity broadcasting were heard before the Commission en banc on April 4, 1934. . - 11 - 4/20/34 Applications Granted (April 20, 1934) WTOC , Savannah Broadcasting Co, , Inc. , Savannah, Ga. , C.P. to install new equipment and increase day power to 1 KW, and set for hearing application to increase night power to 1 KW; WHEF, d/b Attala Milling & Produce Co. , Kosciusko, Miss. , consent to voluntary assignment of C.P. from J. Niles Boyd Wholesale Grocery Co. , to Attala Broadcasting Corp. ; KGHF, Curtis P. Ritchie, Pueblo, Colo. , C? to make changes in equipment and increase power from 250 w. night, 500 w. day, to 500 watts (Judge Sykes voted to set appli¬ cation for hearing) ; KSO, Iowa Broadcasting Co. , Des Moines, la. , application to change frequency from 1370 to 1320 kc. and increase power from 100 w. night 250 w LS to 250 watts, withdrawn from hear¬ ing docket and granted (Judge Sykes dissented); WILL, University of Illinois, Urbana, Ill. , special temp. auth. to operate simul¬ taneously with station KUSD on June 11, from 10:30 A.M. to 12:30 P.M. CST, provided KFNF remains silent; KUSD, University of South Dakota, Vermillion, S. Dak. , special temporary authority to operate simultaneously with WILL on June 11 from 10:30 A.M, to 12:30 P.M. CST, provided KFNF remains silent. Action In Case Heard Before The Commission En Banc KNX, Western Broadcast Co. , Los Angeles, granted modifi¬ cation of license to increase power from 25 KW to 50KW effective April 27, 1934. HEARING SCHEDULED BEFORE COMMISSION EN BANC APRIL 25 WMAQ,, National Broadcasting Co. , Inc. , Chicago, Ill. , C.P. for 50 KW, 670 kc. , unlimited time; present assignment, 670 kc. , unlimited, 5 W; Others notified: WEAF, New York, WSM, Nash¬ ville, Tenn. , WLW, Cincinnati, Ohio, WPTF, Raleigh, N. C. , and WTMJ , M ilwauk e e , Wi s , Miscellaneous WAAT, Bremer Broadcasting Corp. , Jersey City, N. J. , application for renewal of license designated for hearing; New, S. George Webb, Newport, R. I. , application for new station at Newport, redesignated for hearing because application has been amended to request unlimited time on 1200 kc. ; WBAA, Bay State Broadcasting Corp. , Boston, Mass. , application for modification of license redesignated for hearing on bill of particulars dated December 7, 1933, since amended application involves portion of facilities of WKBF; KQV, KQV Broadcasting Co. , Pittsburgh, Pa. renewal application designated for hearing to see if broadcasts are in the public interest. XXXXXXXX 12 - h 1 I itsfin -3 ... ■ r'- t • •• ■ ■ ‘ - . . • . •’ ; . ; • j ■ ■ . ... - iVSJE .U: V )T\ > » j x i 1 * ■!.c, - ; .; t : noJ:J v " - Ew : ; \\- ■ • : ' ■ ■ ■ A - • • ; V- ' ■. . <■ '• •*' ‘ : • ■ ••• ' : U . . f! f i TP ! ’& i ■ ■ J - :i . gill ; : • u ■ ■ c • : ; . ; : 0 ’ , - . % , J 4 ; - ' ■ ‘ : . ’ . ' • ®M | II i|t|±f l •' /■-, U : , /' • • .- i •• : T : . • • IMU •: -•:••• X i • : : Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL- Not for Publication INDEX TO ISSUE OF APRIL 24, 1934. Radio Savants To Gather In Capital . 2 Editors Foresee Censorship In Communications Commission . 3 Code Authority To Meet May 2 . 4 Communications Commission Legislation Stymied . Marconi Plans "Surprise" In Radio In Year Or Two. . . Public Appealed To In Coast Radio-Newspaper Quarrel Ohio To Discuss Radio Education . Radio Wholesale Trade Code Approved . Business Letter Notes.. . J. Leslie Fox New WMCA V-P . . . NAB Reports Record Breaking Membership . Grigsby-Grunow Sale Postponed Account Of Low Bids. . Sees American Plot To Capture British Radio . 10 Decisions Of The Federal Radio Commission. . 11 No. 718 tocoto CD -3 -O CT) CDCJI April 24, 1934. RADIO SAVANTS TO GATHER IN CAPITAL A final draft of the program of the joint meeting in Washington Friday (April 27) of the Institute of Radio Engineers and the American Section, International Scientific Radio Union, embraces the latest field, of scientific endeavor. Scientists are necessarily leisurely but this meeting will last but a day and each paper will be limited to twelve minutes, to allow time for dis¬ cussion. There will be two sessions, beginning at 10 o'clock in the morning and 2 o'clock in the afternoon to be held at the National Academy of Sciences. The program follows: The Development and Characteristics of 9 cm Radiation, C. R. Kilgore ( Westinghouse Company); Notes on Propagation At A Wavelength of 73 Centimeters, B. Trevor and R. W. George (RCA Communications, Inc. ) ; Vacuum Tubes For Generating Frequencies Above One Hundred Megacycles, C. E. Fay and A. L. Samual (Bell Telephone Laboratories); The 1932 Eclipse Observed by Radio Facsimile, E. F. W. Alexanderson (General Electric Co.); Some Recent Work on the InQOsphere in Canada, J. T. Henderson (Canadian National Research Council); Studies of the Ionosphere by Multi¬ frequency Automatic Recording, T. R. Gilliland, (Bureau of Standards) . Also, Ionosphere Measurements at Low Latitudes, L. V. Berkner and H. W. Wells (Carnegie Institution of Washington); A High Frequency Electro dynamic Ammeter, H. M. Turner and P. C. Michel (Yale University); Some Thermal Methods of Measuring Power Loss In Vacuum Tubes, F. P. Cowan (Harvard University) ; The Frequency Standard and Monitor Station of the Canadian Radio Broadcasting Commission, W. A. Steel and K. A. Mackinnon (Canadian Radio Broadcasting Commission) ; A Method of Measuring Noise Levels on Short-Wave Radio Telegraph Circuits, H. 0. Peterson (RCA Communications, Inc.); Frequency Distribution of the Intensities of Radio Atmospherics, K. A. Norton (Bureau of Standards); Developments in Automatic Sensitivity Control, G, E. Pray (Signal Corps Laboratories); Phase Angle of Vacuum Tube Transconductance at Very High Frequencies, F. B. Llewellyn (Bell Telephone Labor¬ atories) . Also, A New Method of Determining the Operating Character istics of Power Oscillators, C. N. Kimball and E. L. Chaffee (Harv¬ ard University); Grid Circuit Losses in Vacuum Tubes at Very High Frequencies, B. J. Thompson and W. R. Ferris (RCA Radiotron Co. Inc. 2 ' V • j ' At ■ . . - . 9 • . -. r , , 7. ' a f it)/ . "■ l- • - ' • •• 470-313' ..... . I i r •. ! i 6 D ■ 1.3 ' . V T 4- ■ . .. i ...7 . ... i 7 . . ■' ; . . ■ 77 7 ■■■■.■. 774' H . . , ; - ' " . : : '•■-■7 f J . " ' | .7.77 ' ■ 4.!. 7 ; ;7 ' 1' , •' .• a • .4 •? i. B '* . . s. ' : j • . . - ; ■ ■ . - . ’. . ... • ■ : .• '1. • ;.4 ' 7 7.: 77. ' . ■ : ■ t ; ■ ' s . . U a. / -t A Short-Cut Method for Calculation of Harmonic Distortion of Modulated Radio Waves, I. E. Mouromtseff and H. N. Kozanowski ( Westinghouse Co. ) ; Space-Charge Effects in Piezo-Electric Reson¬ ators, W. G. Cady (Wesleyan University). Supplementary Program - Low-Frequency Transmission Over Transatlantic Paths, H. H. Beverage (RCA Communications, Inc. ) and C. W. Kenrick (Tufts College); Input Impedance of Vacuum Tube Detectors at Ultra Short Waves, A. B. Crawford (Bell Telephone Laboratories); Ionosphere Studies at Fairbanks, Alaska, H. B. Maris (Naval Research Laboratory). XXXXXXXXX EDITORS FORESEE CENSORSHIP IN COMMUNICATIONS COMISSION The possibility of censorship as an outcome of the Federal Communications Commission was a subject of vigorous con¬ sideration by the American Society of Newspaper Editors in Wash¬ ington last week. In opposing the large grant of powers that have been proposed the mission in Washington, added: "Despite all safeguards hereinbefore mentioned, the likelihood that such a Federal Communications Commission might try to inflict a measure of censorship on the press, along with its domination of the telephone and radio business, is not too remote. " Foreign censorship of control of news destined for the United States was another object of attack. There was a warning by Col. Frank Knox, publisher of the Chicago Daily News : "The bureaucratic Federal control of all means of com¬ munication can readily be converted into an efficient machine for censorship overnight. That the desire exists to exercise such a censorship can no longer be doubted. It has shown itself in a dozen different directions." In his address to the editors, General Johnson said that were he "as competent as some of the newspaper articles have charged, or were I the blustering jackass of some verbal and pic¬ torial cartoon, s you may be sure I would not have lasted a month. "We have been accused of a diabolical desire to impose a censorship on the press and on the radio", he added. "Considering the articles and speeches in opposition to the President’s program, we certainly have made the poorest kind of fist if control of the agencies of publicity was one of our sub-objects. "As a matter of fact, the constitutional prohibition against interference with the press has been taken into account with every draft of the newspaper code since the first appearance of the publishers' committee in the matter. 3 - D t :v ?0' ; •> ■ J. ; LX) ■£ ~’x B ■ dM : ! i'lo: 18- ' & ■ . ■. i'.v § Ll-vXriU ;. :jV , • t ■j . .. v - -- 39 [.? ; iO I~ 0 XH . . • " ■ . . • ■■ ■’ ; ■’ irti ' ■ - ' ■ ' ■ . . - XI ‘ ■ c ’ • < ■ i ■ i ■ : - ) U’J.. ; ; ' . • to • U . ; , ' I ] . ; ' . .. ii . I'm . it : i ■■ ..... : : , [ ■ : ‘ '■ ' ■ ' . ■: ' .... . . ik, mi ‘ : ' '.X \ r ' : ' ' ■ :• . 1 . ' t&M ■ ■ f ' . ' v.: ■ & ' ■ •' ! i; I V- « ■ . ; :: 1- ?p O' n ■ " - ' . • . 5 . : '. ; ' / ; — ' . .. V , : . •. .- ii’-. - • • . , o : or. : - ?a,y •, - T.; ' ... . O'i .. .. .. -■ xonl n i .1 ; • •TT ;; - ■ j; ■} . : ■; j > ■ b ■ ■ ' ~ . ' i .. y-r ’ . . t. : . . ... . J < ■ '... ... ■ 1 3 Gb ’ • . ' . .. ' ■ i • . • ■’ ■ i ; . . ; s :-n^ - : 'v :iO'T«Jrtso Lr L v-; no cXxi'irxoartoc V ■- ii'lrj ■ • ■■ ’ :■ . . . ; y • r t : . ; » •• • ■ - ' .X ' ' ... ■ : ' -tC • is'' no l.j J n . ■ [i ..... :• . • . .al > - v.S ’ -4 ' : . ' . : ' -'';i .. ' ' ‘ f- ■" ' fi ' .■? I :. 4/24/34 "Although I could see no more reason for reasserting the sanctity of liberty of expression in the newspaper code and in reaffirming the whole Constitution of the United States, we have all along reiterated that provision because the publishers wanted it inserted. "As to the radio, let me give you my personal assurance that never at any time have we asked that a critic be kept off the air or have we sought in any way to trammel the broadcasts of such gentlement as Colonel McCormick, Mr. Hearst, Mr. Sanders, Senator Dickinson or any of the others who were minded to tell the people how monstrous was what we were trying to do and how wicked were the people who were trying to do it. " XXXXXXXXXX CODE AUTHORITY TO MEET MAY 2 A busy day is anticipated at the meeting of the Broad¬ casters’ Code Authority in Washington, Wednesday, May 2. It has been explained by Division Administrator Sol A. Rosenblatt that the letter to which the Broadcasters took such exception to, suggesting a 30-hour week with a 10 percent pay increase, was a form letter sent to all Code Authorities operating in his divis¬ ion and that the radio industry had not been singled out to the exclusion of others. Mr. Rosenblatt's division includes, in addition to broadcasting, the pvmusement, transportation, advertis¬ ing and apparel industries. Nevertheless, the letter is expected to be the basis of animated discussion as many broadcasters feel that it would be impossible for the industry to comply with this provision and have registered a strong protest against it. The Code Authority at the forthcoming meeting will also take up complaints arising out of alleged trade practice provisions. G-uy Earl, of Station KNX, of Los Angeles, has brought the conflict between the Los Angelesnewspapers and KNX to the attention of the Code Authority. KNX has asked the Code Authority officials to sustain its interpretation that it is an unfair trade practice, and therefore a violation of the code, for any radio station to broadcast news programs for newspapers without charge, receiving their return in the form of free publicity. Doubt was expressed as to whether the Code people would consider this complaint. "It looks to me as If Earle had gotten himself into a jam with the newspapers in Los Angeles and expected the Code Author¬ ity to pull him out", an observer remarked. "I don’t see why the Code Authority should get mixed up in the press-radio row or a phase of it, such as this appears to be, and it would greatly sur¬ prise me if the Code officials took any action in the matter. " X X X X X X - 4 - -SY + • rnc J .SIS;': i'J; ,C: ? on 0‘ - ■ i £sj oo. I r gc.'Cil+XA” ■ ■ ' -1 . : ' - oS bA i . .... 9W 9Vi • . ' : ■. ) 39J& li .... x ©ftJ: to pa "to nooi)Yjj.( MB 0!o Oi ,: : j. rlo S'le W 9 .' ol c . :• 5; ■ X x X X X r BiSJO'S X'BfiOXI WO.- ojdw Micros a 9rf.J T YTl.tOHTXA aao! x I" ! : » - t " • . ' HLi.'- j \ 1 . MOT. .r.^-1? f;V i :■ • . X X: . XX '..X.- ■ : X. - ' : . . ; V - ■ .X ll V ■ X.- ? v’tJiJCi ti. I n tfj$ ■ 0 1 1 £ ■ •" • - . X'.. ‘ t ' , : , ; ;; ;'.v-M .• : ‘ ■ • x y - ; : '‘x ;x- : ■ ' • • ‘ : i . v, ■ : j .: x; -j 0 v.; ' -x ■ • .■ x : v ■: '.$£ -x : 7- " * : '. . ■; v y ■ r v - B ,Xy ■ :•••.• ; i :M0 V - V? : v,xX.,: X:- XI - •, • ■ . . X £ X - • .■ ’ ; - ' Mr x9-3*x.xn -Y r> f ■O' . y-.XXjX, .. ■ x ■XTi • K * ^ X :: ,:xX -10 3tXii X -Yi.fi to . .j r . . .. X- x '• : - - ■ |8V?; X - x : x n •• . ■. '.. ' .r x. x.; ' : ; ■ . ' '-■ X { XX fj - . : ; x. : X ; . - x ; ■ •. :• . ... ... ; • x .’-x ^ £ rJ, : .• • • -v < • . .' ; : . *• j 'lion j . ' ■ ■ : .! „ ’> 1.. • k .i l . . 00. IlA SOU. • X ,xxx-xx. . .. X 0 X U j*. OCX© nnj i ■ '■ .' . • x ■ .. ‘ : • 0? ■ x ■ : v..'. . : ' ■' , : : d v. ° pVi "J' .1 1.1 nO,:. G 3 Jl L d )qi • • . ' ’ '■ it a "£: . ; J': : B V ' ■ ' ■ : : ... 4/24/34 PUBLIC APPEALED TO IN COAST RADIO-NEWSPAPER QUARREL The radio news situation in Los Angeles flared into the open following adoption by local publishers of a policy of omittin from radio column listings those stations which have declined to cooperate in the matter of news broadcasts, according to Editor & Publisher. This action resulted in the complete elimination of mention of KNX, independent station operated by Guy C. Earl, Jr., and partial elimination of KFI programs. Each of these stations broadcasts news gathered by its own organization. KFI is a member of NBC, and local papers are listing only the chain programs it broadcasts and the Press Radio News period of the Los Angeles Post Record, read over this station. The Los Angeles Time s in "A Plain Statement" explained to its readers, its action and the reasons therefor, asserting that the Press Radio Bureau "is directly in line with the expressed desires and policy of the Federal Radio Commission to protect the listening public from irresponsible and often highly damaging broadcasts of wild rumors, ’grapevine' reports, and not infre¬ quently purely imaginary ’news.’" In answer KNX included in all its news broadcasts a statement of its position, terming the creation of the Press Radio Bureau an attempt of the American Newspaper Publishers' Associa¬ tion to dictate to radio stations, and describing the Press Radio reports as "censored set-ups." KNX added to its statement that to all listeners inter¬ ested the station would send weekly listings of their programs for six months, on receipt of $1. Meanwhile the working agreement between KFI and KNX for local news coverage has been terminated. Each has arranged for its own local coverage, and is buying foreign and national news from eastern bureaus. KFI is served by the American Radio News Associa¬ tion Earle Building, Washington, D. C. , and KNX by the Radio News Association, 342 Madison Avenue, New York City. The American Radio News Bureau is said to be staffed chiefly by the same men who comprised the Columbia Broadcasting System news service, Frank Connor, Jr., Cecil Owen, and Wallace Werble. After CBS discontinued its news broadcast service, the Buffalo Evening, News retained Mr. Connor and his associates to bulletin Washington events for its radio programs. From this stai the service has branched out to embrace a considerable number of stations not parties to the agreement formed by the four large press associations, the newspaper-operated radio stations, large newspapers and many commercial stations. 6 . . r • . -- 4/24/34 The principal federal buildings are covered in Washing- ton but Congressional doings are being reported from the public galleries, since the radio correspondents do not qualify for membership in the press gallery under existing rules. White House happenings are being received through various channels other than direct coverage. None but accredited correspondents for news¬ papers are allowed White House press privileges. The Washington office of the American Radio Newrs Bureau is one of a number operated through the country on the same principle. Assessments are made on the stations served, these being based on population and telegraph tolls are paid by the stations. News is bulletined for three daily broadcasts. X X X X X X X OHIO TO DISCUSS RADIO EDUCATION Plans have been completed for the Fifth Annual Insti¬ tute, Education by Radio, which will be held at Columbus, Ohio, April 30. Among the speakers are Governor White, of Ohio; Dr. George W. Rightmire, Ohio State; H. V. Kaltenborn, news commenta¬ tor; E. A. Corbett, University of Alberta, Canada; Miss Judith C. Waller, educational Director NBC; James E. Pollard, Ohio State; C. H. Milan, American Library Association; Eugene J. Coltrane, National Committee on Education by Radio; A. Lee Henderson, Ohio Emergency Junior Radio College; Joseph F. Wright, President, Association of College and University Broadcasting Stations; Dr. Herman S. Hettinger, University of Pennsylvania; Frederic A. ’Willis, Educational Director, CBS; H. B. McCarty, Station WHA; W. I. Griffith, Station WOI; Allen Miller, University of Chicago; H. M. Buckley, Cleveland, Ohio; Annas Higgins, Chicago, Ill, ; Luther Meyer, San Francisco; Helen Johnson, American School of the Air; Philip G. Loucks, NAB; Grazella ?. Shepherd, Cleveland College; Elmer G. Sulzer, University of Kentucky; E. B. Kurtz, University of Iowa. XXXXXXXX RADIO TOOLE SALE TRADE CODE APPROVED The National Recovery Administration has approved the supplementary code of the radio wholesaling trade, a division of the wholesaling or distributing trade, effective May 1st. This Code covers approximately 500 concerns whose total annual sales in 1929 amounted to approximately $425,000,000. The trade employs about 4,500 persons. X X X X X X X - 7 - f >£> lortliq acfT .v.n jVJ £Li.- ; l . • I Q ■■ . . jg* r-i’rj r '»•' •• A QOW *B . >■ • • bM i m o ■' i , *£ ■ . .. . . as 3t Ui • ■ ■■ v ■ >ft ft? A A A ■ . . . V : -• j-; •; : - \ • • - . \ . . ■ . . 3 v'rg 3 A 0VI • $■ al r . . . . • . ... jog '? • _ ... j. . • ■ . ■■■■ -■ : ■ ■ = — • : < - - ■ • V V . ; o' •, . :■ V : ■ 0.-. • .. 1* ' . • ’ . >. * • ; ; . £'• ;"f -i r> ■ •• _ • . . > • • ■ - . f . . v / ■ '> -v / • ■ ■ • . ■ - "i ' ■ ' i ■ ■ • " -V- •, ■ . , . - - : ■ .. . ■ .. .■ Hi: . j £i.' ■ mqJ ■ V.... c-7 , - . • • »- '■ . jUfi • ■X :j 1 X ■' • • . - ' ■ ft 3 ■ ■ ■ ■ ■ j ■ • ' • . ' ' ’ a. j -,v ■■ I ! iC C • : • ..T" 7. ' ■ ■■■■ rC- Xx U • vt iX * 4/24/34 SEES AMERICAN PLOT TO CAPTURE BRITISH RADIO A conspiracy to extend theAmerican system of broad¬ casting to England is seen by the London Daily Sketch, which tells its readers: "There has been a suspicious lull in the baiting of the B.B.C. during the Easter recess. Mr. Samuel L. Rothafel - "Roxy", of New York - has gone home after his flying visit to London. On the fact of it, the latest attempt to capture wireless in G-reat Britain for American advertisers and exploiters has failed. "It is by no means certain that the danger is past. It is a very real danger. For months the assault on the B.B.C. has been pursued with a relentless subtlety that has sometimes won to its support influences which were unaware of the purpose behind it Watch for a renewal of the campaign when Parliament reassembles. "Criticism of the B.B.C. is inevitable, and is, of cours thoroughly legitimate, in so far as those who provide it with its revenue through license fees are entitled to express their views about programmes. "Not one in a thousand of these critics would wish to s the chaos of American broadcasting conditions reproduced over hert by the setting up of a wireless station in rivalry or in conjunc tion with a defeated B.B.C. for the broadcasting of advertisement programmes. That, however, is the definite objective. "It is on the American side that the campaign is being waged most hotly. "The Daily Sketch learns that one American syndicate has agreed to defray the cost of cabling from New York to England to facilitate the putting over of American 'advertising1 programmes. "Behind the whole plot stands one of the big American corporations with 4,1, 000, 000 of capital waiting for investment in what it foresees to be a rich new field for exploitation. British advertisers who fell into such a trap would be the first to rue tli consequences. "Cautiously as the project has been engineered, the arriv al one after another of powerful emissaries on exploratory mis¬ sions has at last robbed the scheme of disguise, though some inside the House of Commons and outside are not yet aware of the extent to which it had been hoped to make use of them. They have been approached by the most plausible arguments through apparently disinterested third parties. "Some of the B.B.C. methods have paved the way for the attack. The autocratic atmosphere which prevails at Broadcasting House to a greater degree than in any Whitehall department has irritated even those who recognize that with all its faults broadcasting in Britain is infinitely better than in any other country. 10 4/24/34 ’’People are constantly being told, how much brighter are some of the Continental broadcasts. The proof is within the reach of the owner of the most modest receiving set. How often do you tune in to a foreign station and find it more satis¬ fying than your National, Regional or Daventry programmes? "There may be ground before the Corporation’s present contract expires for a full inquiry into the future control of British wireless. "The worst thing that could happen would be that M.P.s should allow themselves to be hustled into a policy of carping criticism or into doing something that would deliver control to a far more dangerous body than the present corporation. X X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (April 24, 1934) WNBX, WNBC Broadcasting Corp. , Springfield, Vt. , C.P. to make changes in equipment and increase power from 250 to 500 watts; no change in frequency (1260) or hours of operation (day¬ time); KG-BU, Alaska Radio & Service Co., Inc., Ketchikan, Alaska, C.P. to move transmitter and studio locally in Ketchikan; WDBO , Orlando Broadcasting Co., Inc., Orlando, Fla., special experi¬ mental authority to increase day power to 1 KW, a.nd set for hear ¬ ing the application to increase night power to 500 w. ; KSTP , National Battery Broadcasting Co. , St. Paul, Minn. , extension of special experimental authority to 11/1/34, to operate with 25 KW daytime only; also license covering changes in equipment 1460 kc. , 10 KW, unlimited time; WHBL , Press Publishing Co. , Sheboygan, Wis. , license covering changes in equipment 1410 kc. , 500 watts, SOWROK. Also, KPJM, Scott & Strum, Prescott, Ariz. , license covering changes in equipment and move of transmitter and studio locally, 1500 kc. , 100 w. , unlimited; KTFI , Radio Broadcasting Corp. , Twin Falls, Idaho, license covering local move of trans¬ mitter, and studio, 1240 kc. , 500 w. , night, 1 KW day, unlimited; WBRCr , Birmingham Broadcasting Co. , Inc. , Birmingham, Ala. , authority to determine operating power by direct antenna measure¬ ment; WDAF, Kansas City Star Company, Kansas City, Mo. , authority to determine operating power by direct antenna measurement. Also, H. B, DuPont, NC-500, Aviation-Aircraft license, 3105 kc. , 10 watts; KG-ZD , City of San Diego, Cal., Police Dept., C.P. to move transmitter locally, install new transmitter, increase power from 100 to 500 watts, and change frequency from 2430 to 2490 kc. ; City of Quincy, Mass. , Police Dept. , C.P. 30100, 33100, 37100, 40100, 86000-400000, 401000 kc. and above, 50 watts; Same, Portable and Mobile, 6 C.P.s same as above 11 ' ' l , ■ ■ B ' tC . . *fC J ' i ttfjoC ■: I : ro to' swaoa a*i . '•u/gv; i-..: v X . « i :-*‘T ? CIXS j O Vi* ' "isi ** r A A A A 4/24/34 except 4,5 watts power; Sun Oil Co, , Portable (Shooting Station); C.P. for geophysical service, 1652 kc. , 50 watts; National Broad¬ casting Co, , Inc. , Portable & Mobile, C.P, (General Experimental) 1614, 2398, 3492.5, 4797.5, 6425, 8655, 12862.5, 17310, 23100, 25700, 26000, 27100 kc. , 250 watts; also granted license covering same; Same Co., Seth Parker (Ex-Georgette), Special experimental license, same as above except 55 watts , location: Schooner Seth Parker; W3XF, City of .Ventnor City, N. J. , Police Dept. , license (general experimental), 30100, 33100, 37100, 40100, 86000-400000, 401000 kc. and above, 25 watts power; KGH? , City of Lawton, Okla. , Police, Dept., license, 2466 kc. , 50 watts; KGHN , City of Hutchin¬ son, Kans., license 2450 kc. , 50 watts, licensed operator at control point only; W10XAG , State of New York, Conservation Dept. , Portable and Mobile, modification of license to change frequen¬ cies from 60000-80000 kc. to 31600, 35600, 38600, 41000 kc. Also, W10XBE, State of New York Conservation Dept. Portable in New York State only, modification of license to change frequencies from 60000-80000 kc. to 31600, 35600, 38600, 41000 kc.; Tropical Radio Telg. Co. ; WFB . WFC, WFP , WFT, WFL , New Orleans, La., modification of license to add Belize, British Honduras as an additional point of communication, and delete San Salvador as a point of communication; WFF , modification of licer; . to add Belize, British Honduras as an additional point of com¬ munication; The Northrop Corp. , Portable mobile in any aircraft, special experimental license, 3125, 5690 kc. , 50 watts; Miscellaneous WGES , Oak LeavesBroadcasting Station, Inc., Chicago, Ill. , granted special temporary authority to operate the following specified hours, instead of sharing with WJKS: Mon. , Tues. Wed. , Thurs. and Fri. 6 A.M. to 11 A.M. and 5 to 8 P.M. ; Sat. 6 to 11 A.M; 5 to 7 P.M. ; 11 P.M. to 2 A.M. ; Sunday, 7:30 A.M. to 1 P.M. : 3:30 P.M. to 7 P.M. ; 11 P.M. to 2 A.M. CST, for period May 1 to Nov. 1, 1934; Virgil Evans. Spartanburg, S. C. , application for radio station at Greenwood, S. C. , remanded to Examiner for additional testimony; W6AEF, Kenneth S. Kneedler, El Monte, Cal. , renewal of amateur license, heretofore designated for hearing, wat denied because applicant failed to enter appearance with time allowed; WPFB , Otis ?. Eure, C.P. to move transmitter and studio, change frequency and time, heretofore designated for hearing, was dismissed at request of application. Ratifications Action taken April 19: KIZP , Radiomarine Corp. of America, New York, granted 60 day authority to replace ET-3628 with ET-8004 aboard " Shi ck shinny " , 50 watts, frequency 5500 to 17000 kc. ; WCEL , M. Crivello, San Diego, Cal., granted 60 day authority to operate station aboard vessel "Europa" , pending action on formal application; Action taken April 30: KVOS, KVOS, Inc., Bellingham, Wash., C.P. to move station locally, granted; Alamo Broadcasting Co. , San Antonio, Tex. , granted 30 day author¬ ity to operate portable-mobile gen. exp. station, frequencies 31100, 34600, 37600 and 40600 kc. , 3 watts. XXXXXXXX - 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL- Not for Publication "tt £ j) G ,/ u •; I.’" ? l,j) ' * £ li ty' if ji } ( i M APR 30 (934 ) j f ■ $/ j^f ?*, ry -t , f .* INDEX TO ISSUE OF APRIL 27, 1934, Canadian Head To Address Radio Educational Conference . 2 American Radio 70^ Of Greece Sales..., . 3 Broad A. T. & T. Probe Sought By Senator Dill . ’ . 4 Radio Official Host At Baltimore Press Club Anniversary ....... 5 Idaho Station Appeals Commission Decision . 5 House Communications Hearings Still Indefinite. . . 6 S^Hajor Clement New RCA Victor V~P. . . . . 6 Educational and Religious Stations Code Exempt. . . . 6 New Frequencies For Mass, and Mich. State Police . . . 7 Million Watt Cuban Station Regarded As Stock Promoter . 7 RMA And Jobbers To Hold Chicago Conventions Together . 8 RCA Inaugurates Inter-City Radiotelegraph. . .8 Business Letter Notes . 9 500 KW WLW Transmitter Triples Signal Strength . 10 Wage Rise By Hygrade Sylvania . . . 10 RMA Defines "All Wave " And Other Receivers . . . 11 Decisions Of The Federal Radio Commission..,.. . 11 No. 719 CANADIAN HEAD TO ADDRESS RADIO EDUCATIONAL CONFERENCE Hector Charlesworth, Chairman of the Canadian Radio Broadcasting Commission will be one of the principal speakers at the conference on "The Use of Radio as a Cultural Agency in a Democracy" to be held Monday, May 7, and Tuesday, the 8th, in Washington. Dr. Arthur E. Morgan, Chairman of the Tennessee Valley Authority, and Dr. John Dickinson, Assistant Secretary of the United States Department of Commerce, are representatives of the Federal Government appearing on the program, according to Dr. Tracy F. Tyler, Secretary and Research Director of the National Committee on Education by Radio, under whose auspices the Confer- ence is being held. Dr. G-eorge F. Zook, United States Commissioner of Education; Dr. William John Cooper, his predecessor, now professor of education at G-eorge Washington University; Dr. Edmund A. Walsh, S. J. , Regent, School of Foreign Service, Georgetown University; and Dr. John Henry MacCracken, Associate Director, American Council on Education, will each preside at one of the four general sessions of the conference. Acceptances of membership in the conference, limited in number to provide better opportunity for discussion, have been received from leaders in education, recreation, government, and civic affairs. The general sessions at 10 A.M. and 2 P.M. on each of the two days of the conference will be held in the auditorium of the Interior Department Building. The Monday evening session, which will be devoted to group meetings, will be held at the head¬ quarters of the National Education Association. The National Committee on Education by Radio is a repre¬ sentative organization of national educational groups interested in a wider and more effective use of radio broadcasting facilities Its nine-member board consists of authorized representatives of each of the following: National Association of State Universities Association of Land-Grant Colleges and Universities, National Education Association, National Catholic Educational Association, National Council on Education, Jesuit Educational Association, National University Extension Association, and Association of College and University Broadcasting Stations. The Chairman of the Committee is Dr. Joy Elmer Morgan, Editor of the Journal of the National Education Association. The Vice-Chairman is Dr. John Henry MacCracken, Associate Director of 2 V/T 4/27/34 the American Council on Education. The other members of the Committee are: Dr. Arthur G. Crane, President, University of Wyoming; Dr. James N. Rule, State Superintendent of Public Instruction in Pennsylvania; Rev. Charles A. Robinson, S. J. , Saint Louis University; Prof. J. 0. Keller, head, Department of Engineering Extension, Pennsylvania State College; Dean H. J. C. Umberger, Director, Division of Extension, Kansas State College of Agriculture and Applied Science; Mr. Charles N. Lischka, Assistant Director, National Catholic Welfare Conference; and Prof. Jos. F. Wright, Director of Public Information and of Radio Station WILL, University of Illinois. The Committee's full-time staff consists of Dr. Tracy F. Tyler, Secretary and Research Director, who is in charge of arrangements for the conference; Mr. Armstrong Perry, Director of the Service Bureau; and Mr. Eugene J. Coltrane, special representa¬ tive in charge of field service. XXXXXXXX AMERICAN RADIO 70$ OF GREECE SALES Sales of American radio receiving sets in the Greek market have been very satisfactory during the sales season which closed at the end of March, Commercial Attache K. L. Rankin, at Athens reports. In Greece, Rankin points out, the end of the first quarter of the year marks the close of the active radio selling season, which normally lasts from September through March The number of American sets sold in Greece between September and the end of March was between 950 and 1,000, repre¬ senting about 70 per cent of total radio sales in Greece during the period in question. Short and medium-wave combination sets of the mantel type were practically the only models in demand, the report declares. Sales of large cabinet sets, with or without phono¬ graph attachments, have been very small, owing to the prevailing cost in Greece. The price which the public in Greece expects to pay for a radio set, Rankin points out, ranges from $100 to $130. After payment of duty and transportation, an American set retails in Greece for at least twice its list price in the United States. X X X X X X X 3 ' . ■: r-?riA sx!4 ■ ;■ .* t:'\\ 'V ' tl ' V v . v v k 4/27/34 BROAD A. T. & T. PROBE SOUGHT BY SENATOR DILL A sweeping investigation into the affairs of the Ameri¬ can Telephone & Telegraph Co. was demanded by Senator Clarence C. Dill (Democrat), of Washington, in a resolution introduced in the Senate. No action was taken on the resolution. It is believed if the Communications Bill becomes a law at this session, Senator Dill might move to pass the investigation along to the new Com¬ mission. Otherwise, it is expected that he will propose that it be made this Summder during the recess of Congress. The resolution would direct the Interstate Commerce Committee, of which Senator Dill is Chairman, to conduct the inquiry, and appropriates $25,000 for cost of the investigation. Senator Dill would have his Committee empowered to "make a thorough and complete investigation of the operations, relationship and activities of the American Telephone & Telegraph Co. , its subsidiaries, affiliates e.nd other concerns in which it or they have any direct or indirect financial interest, or in which any of its officers or directors hold ejiy office or exert control. " The Committee would be directed to investigate and report particularly on the relations of the A. T. & T. with its employees and "the extent of its reduction in number and wages of employees while maintaining exorbitant salaries for high officials and a continuous high dividend rate" and why local telephone rates have not been reduced "during the past few years of generally falling prices. " Other aspects of the company's activities, which the Committee would be specifically directed to investigate under the resolution, are: The extent of interservice contracts between the company and its subsidiary companies and particularly contracts with Western Electric Co. and other manufacturers of electrical com¬ munication equipment. Activities and expansion of the company and affiliates into fields other than telephone communications, including tele¬ type service, telephoto service, broadcasting, motion picture distribution and manufacture of electrical equipment. Methods of competition with other companies and indus¬ tries, with reference to equality of service, reasonableness of rates, accounting practices, discriminatory practices, suppression of patents, sale or refusal to sell equipment to competing com¬ panies and the company relationship to Electrical Research Products, Inc. - 4 - 4/27/34 Methods by which the company has sought through propa¬ ganda or the expenditure of money or control of the channels of publicity, to influence or control public opinion oi* elections. Senator Dill issued a brief statement in which he asserted that the 11 telephone monopoly” should be investigated this Summer and Fall, irrespective of whether the Communications Bill is passed by Congress before adjourning. Much information is needed for further regulatory legislation, he said. XXXXXXXXX RADIO OFFICIAL HOST AT BALTIMORE PRESS CLUB ANNIVERSARY Frank Wisner, in charge of publicity of the Federal Radio Commission, and formerly President of the Baltimore Press Club, was the host of a party of Washingtonians who attended the celebration of the twenty- second anniversary of the Press Club in Baltimore last Tuesday night. Prior to the formal exercises of the evening the Washingtonians were the guests at dinner with Gov. Albert C. Ritchie, of Maryland, and Mayor Howard C. Jackson, of Baltimore. An interesting thing the visitors learned was that the grave of Edgar Allan Poe is in the perpetual care of the Baltimore Press Club. Those in Mr. Wisner' s party were United States Senator Tom Connolly, of Texas; Representative Louis Ludlow, of Indiana; William C. Murphy, Jr., President, National Press Club; Paul Woo ton, New Orleans Times Picayune ; Carl Ruth, Columbus Disptach, and Robert D. Heinl, Heinl News Service. X X X X X X X X IDAHO STATION APPEALS COMMISSION DECISION Station KSEI, of Pocatello, Idaho, which was ordered back to its old frequency of 900 kilocycles, has appealed to the District of Columbia Court of Appeals. The station had been authorized to use the 890 kilocycles frequency but this was given to KFPY, of Spokane. X X X X X X X X 5 ori.t dol.in \ , ' >0 ii c j Li.O v. * Q -i- ,-V ■ : • ; i- . rij'XUl twl £ y y y x X ; ■ ■/ fzi is ,< . • ' * ; ■ • . ; ; • :■••;•••/ . * ,'v ... ; \ r* • - _ - . I •• . 4 ■ •; . .: • • • . :• »* 1 no It .' o -t .ii o •• • . . : . . . ; ■ : - , j -.4# ... M • •'■ ■! .. < •. ' i 1 V ' ; ’ ' - •• ■ a £ ;V ; • < * • -i , * 1b&' •' •• - • ■ . >nalY**M to , • - ■ . J ‘J ii J- : .. ‘ • . ■ ■ ; - > , r VJ i. j ■; i oh 4/27/34 HOUSE COMMUNICATIONS HEARINGS STILL INDEFINITE The date of the hearings on the House Communications Bill is still indefinite. The Senate Communications Commission Bill has been advanced on the calendar and is said to be slated for early con¬ sideration although the exact time has not yet been set. XXXXXXXX MAJOR CLEMENT NEW RCA VICTOR V-P The appointment of Major J. T. Clement as Vice-Presi¬ dent of the RCA Victor Company, has been announced by G. K. Throckmorton, Executive Vice-President. Major Clement was born in Charleston, S. C. , and is about 50 years old. He was graduated from the Virginia Military Institute and was appoint¬ ed to the Army from civil life in 1912. He served at many posts including the Philippines. During the World War he was wounded in France and was cited for bravery in action. Major Clement received 13 decorations in all, includ¬ ing the French Legion of Honor. He retired from the Army in 1922 and entered the service of the RCA Victor Company about 1925. First he was a traveling salesman for Pennsylvania, and some Southern States, and later was at the Camden plant. Recently Major Clement has been the government sales representa¬ tive in Washington of the RCA Victor Company. XXXXXXXX EDUCATIONAL AND RELIGIOUS STATIONS CODE EXEMPT An Order was signed granting examption from the pro¬ visions of the Code of Fair Competition for the Radio Broadcasting Industry to the members of the Industry listed herein: WKAR, Michigan State College, East Lansing, Mich.; KPOF, Pillar of Fire, Denver, Colo. ; WAWZ, Pillar of Fire, Zarephath, N. J. ; WILL, University of Illinois, Urbana, Ill. ; WLBL, Dept, of Agriculture and Markets, Stevens Point, Wis. ; WOSU, The Ohio State University, Columbus, 0.; WMBI, The Moody Bible Institute, Chicago, Ill.; KUSD, University of South Dakota, Vermillion, S.D.; KFDY, South Dakota State College, Brookings, S. D. ; KWLC, Luther College, Decorah, la.; WCAT, South Dakota State School of Mines, Rapid City, S. D. ; WOI, Iowa State College, Ames, Iowa,; WTAW, Agricultural and Mechanical College of Texas, College Station, Texas; WSUI, State University of Iowa, Iowa City, la.; KOAC, Oregon State Agricultural College, Corvallis, Oregon. 6 1. :.i. ..r " . r . .aw -in; (a ■ -■ • - ; i , h ; . . . : ■■ a 7 i p7 . .a i - . .. a: i .'.'.V.' V.'-' V- '■ 4.'-k, .P.: . it): „ : • ’’ ■ XX:’xiJ al ' \;\r ■. iM. I j i- dU&fadaii pp . t- : .. .. p . • : ' . .p aav"-:-- .. Hi .7.71 i.iv ; : . x : a.\ :.7 7av7' aa.7"a7 : ah o ■ i i i s-rlssr vaa7. ; l-ap n.( v a r/'P 77: aahp • a-...-./-. . a.;. r pr £ia -..a r. r : : ■ " a77p ' i. ~ : . ; V .. . { : . ■ • :• .• - -r ... - X‘ "■ •> r : ' ... ; . •. . . ■• .... r. ■ "j ■ ■ * . 1® . . • . • ' .... . . -f ■>' . . '. ... x .- -i .. ; . . • ■ 7/.a\ a a; '?L.i ■?.' pa 3 : ■ . ." : .7 • . : 7 • P'XL pa® il .7 7 . . : , : . • Lii ■ : : . - ■ • • v,.. £■ ■■■ ■ f. : "■ v ; •. . .• ' r :":.rc : np £ ; ; . ■ ; ; sfrjt ; ■. - jap : s t r fl ' ■> ■... . -fioi'i ':■> .P 'v- i:\l ■ ..■ ■ l - V .p.y ,v> ' ■ .■ '. . " j Y ■ . • • r* • l.i'c-1' yap .•a... ‘jx- xaLUP . ' : , :. iiiaM tU a"--. t'W- v . . . I , a -yaC' a v '■ . . r>M Y iii\> .Y ' itj&ity -;a i i£ ■ o : :■ ha..; ; at. a - ' .-h • a : c? ;t .- i. a hrf • ‘ ' . it^ a I. a: ',.a;,y ;at p ..a •, •’ y’ t , • ■ . • . /. ; ■ .' U .• : l t * ' . S •• ■: ; • a P I- ;. , - ;X ■ i po . j IP ; . . • V .. ">a ;.aah i ■ ' : ' , a ■ W - ■ / -a h -a:>yh ., .: .1 ' , a. '.; pa'. v;.;;aay,a>.a'.:,aA i; •• * r.rx .. - a ; - • .... ;n p. . ah- V. ; ■ -r 4/27/34 Also, WLB, University of Minnesota, Minneapolis, Minn. WBAK, Commonwealth, of Pennsylvania, Department of Justice, Harrisburg, Pa.; WCAD, The St. Lawrence University, Canton, N.Yt KSAC, KansasState College of Agriculture and Applied Science, Manhattan, Kans. ; KSAJ, G-rove City College, Grove City, Pa.; WBAA, Purdue University, LaFayette, Ind. ; KFSG, The Angelus Temple Radio Beacon, Los Angeles, Cal. ; KBPS, Benson Polytechnic School, Portland, Oregon; KWSC , State College of Washington, Pullman, Washington. XXXXXXXX NEW FREQUENCIES FOR MASS. AND MICH. STATE POLICE The Federal Radio Commission straightened out the Massachusetts and Michigan police radio muddle by adding four additional frequencies for use by State Radio Police stations. In this plan, the Massachusetts State Police will be changed from 1574 kc. to 1666. Heretofore the Massachusetts and the Michigan State stations have been operating simultaneously on the same frequency, 1574. Under the new plan, Massachusetts practically has a clear channel although provision has been made to put other State Police stations on this channel when applications are received. However, the line of separation will be much greater than that now existing between Massachusett and Michigan, thus avoiding all interference. Under the new plan, Michigan's frequency has been changed from 1574 to 1642. XXXXXXXX MILLION WATT CUBAN STATION REGARDED AS STOCK PROMOTER The 1,000,000 watt station talked of for Havana is regarded in Washington as largely a stock promotional venture and doubt was expressed as to whether or not it would ever be built. "Up to now there has never been' such an animal' as a million watt station", a Federal official remarked. "Such a str tion would cost from §750,000 to §1,000,000." Nothing was known ’what, if any, connection Dr. J. R. Brinkley, closed down by both the United States and Mexican Governments, had with it. Since such a station as the one pro¬ posed in Havana would be heard in both this country and Mexico, the opinion was ventured that complaints would quickly be made through diplomatic channels to Cuba by both countries if Brinkle tried to operate from Cuban shores. XXXXXXXX 7 - , ... . ■ . : • ' " ... - [qm« , “Y f | f ; ; >:•' 1 0 4/27/34 RMA AND JOBBERS TO HOLD CHICAGO CONVENTIONS TOGETHER Annual conventions of both the Radio Manufacturers and the Radio Wholesalers will be held at Chicago June 11 to 14. There will be no trade show, this having been post¬ poned until next year because of the continuance of the Century of Progress Exposition, nor will there be merchandise displays of any kind. No radio, phonograph, refrigerators or other house¬ hold goods or musical merchandise will be permitted in either the Stevens or Blackstone Hotels. The RMA membership in its four Divisions will hold their annual meeting and elect Directors and officers, June 12-13. A feature of the celebration of the founding ten years ago of the RICA, will be a "President's Dinner", tendered by President Fred D. Williams to all past presidents and directors and officers of the Association who have served on its Board during the past ten years. The annual RMA banquet will be held Wednesday evening, June 13 in the Grand Ball Room of the Stevens Hotel. Paul B. Klugh, of Chicago, Chairman of the Convention Arrangements Committee, will be the toastmaster. The meeting will conclude on June 14 with a radio golf tournament at the Calumet Country Club. X X X X X X RCA INAUGURATES INTER-CITY RADIOTELEGRAPH R.C.A. Communications, Inc., inaugurated the first of its new inter-city radiotelegraph services last Thursday (April 26) between Boston, New York, Washington and San Francisco. Before June 1st, Chicago and New Orleans will be added. Applica¬ tions for construction permits have been filed with the Federal Radio Commission for authorization to join Seattle, Los Angeles and Detroit to the network. It is anticipated that other import¬ ant cities will be added later. The radio rates are based upon fifteen words at the regular wire-line rate for ten, and sixty lettergram words for the usual price of fifty. The collection and delivery service of the hundreds of Western Union offices in the cities mentioned, in addition to the offices maintained by RCA, will be available to the public for the sending of Radiograms "Via RCA". The arrangement pro¬ vides R.C.A. Communications, Inc., with complete facilities for pick-up and delivery without the expense of establishing and maintaining duplicate offices, call boxes, etc, X X X X X X - 8 - u ' j ■ 4/27/34 BUSINESS LETTER NOTES Chairman E. 0. Sykes, of the Federal Radio Commission, and Mrs. Sykes were guests at the White House at a dinner which President and Mrs. Roosevelt gave in honor of Governor and Mrs. Pinchot, of Pennsylvania. James M. Skinner, President of Philco Radio and Tele¬ vision Corporation in Philadelphia, has announced that factory employees of the concern will receive a 10 per cent increase in wages, effective April 30. It was stated the pay will equal that of 1929, despite shorter hours. A. Atwater Kent, prominent radio pioneer, was identify as holding 675,334.46 ounces of silver in New York City. The Radio Manufacturers' Association has decided to develop, trade-mark and protect for the industry a new name for the so-called "high fidelity" receiver which is being gradually developed in the laboratories. Commercial presentation of the "high fidelity receiver is not possible in the opinion of the RMA for many months, possibly not before next year. Inability to trade-mark the name "high fidelity" because of its general scope, and the application of the term to current set models far in advance of commercial introduction, prompted the RMA to adequately safeguard future commercial pre¬ sentation if and when it may be developed. Gen. James G. Harbord, Chairman of the Radio Corporation of America gave a luncheon at the Union League Club in New York for Maj. Gen. William D. Connor, Superintendent of the United States Military Academy at West Point. The guests were Arthur W. Page, Vice-President, A. T. & T. ; James R. Sheffield, former United States Ambassador to Mexico; S. Sloan Colt, Col. William J. Donovan, Samuel W. Reyburn, Benjamin L. Winchell, John Callan O'Laughlin, of the Army & Navy Journal, Thomas A. Buckner, David Sarnoff, President of the RCA, Col. J. Mayhew Wainwright, Brig. Gen. Samuel MeRoberts, Edward W. Harden, Martin Egan, Henry E. Armstrong, Courtlandt Smith, DeWitt Millhauser, Andrew W. Robert¬ son, Ogden Reid, Frederick Strauss and Louis Wiley. XXXXXXXX 9 :r'7 ;cv’ 3B33I6133; : : ■ ,'C S. j P:P : - . .. . •: . TC . . *?o! ' J si i . • . s , ■ • . ; 8 3’ fj ■ ■ • .... . ' ' - 3 , ..... ■ \ I a o"l . ' i ... • :.V 3 i; • il? • O', '■ j .. . : . . . 5 aupa JL±. 3£iJ • t -• :• C? . * . 3 : . ■ ' . - ■ ■ • : ■ ; :•)£) J. ;i3*X v-- ■ ■ ad . . " : . . 3 ; i* ■ ... ■ ■ ■ ■ - .... : , - ■ ;j;n - ■ oi . I • t ■ r -** • Pit . si . li 3 . •;> ... : ' . : ' Xp j. k si . vi • sn 1 - •’ • ■ I 3 ' * ; i C S. O ' .vj I ‘ .■ 1., - ■ ■ . j *10 HI : ' ' ' ’ ’ - p • £>j Dw ■ - ' 3 . . . : i l i \ .. : : • i \ '•••! , ■' ' 3 • > ;; - ■' . . . ■ ■ d.j ■ ■; .... -3 ’ • . 3 W J \t 3 . . - - ’ - - 1 ■' . . . ■ • .' ' V . . .3. ‘.jaalifsA ■ . " hJ *rV ' •*.' '■ • ^ ■ ' , : tv. ’ 3 : ^ i ' "V 'M - ' :v • ' 3 i v • r i}y 4/27/34 500 KW WLW TRANSMITTER TRIPLES SIGNAL STRENGTH Actual operation has revealed a number of facts which - although predicted by Crosley and RCA Victor engineers respons¬ ible for the design and construction of the new WLW 500,000-watt transmitter at Cincinnati - existed in the past only in theoretical supposition. "It has been proved that a 500- KW station, with a tremendous 2,000,000-watts undistorted peak of modulation, can be built so that in actual service it will modulate fully 100 percent, that is, provide the greatest possible program signal on its carrier wave", a Crosley statement sets forth. "That an exceptionally high quality can be obtained is established through the fact that its frequency characteristics are essentially flat (within two decibels) from 30 to 10,000 cycles - a range extending from slightly below the lowest note to twice above the highest note on a piano keyboard - and that its audio harmonics are of negligible quantity being below 10 percent, a quality rarely found even in the most modern transmitters. "The ten-fold increase in power over WLW' s present 50,000-watts has increased that station's signal strength at all points approximately 325 percent while increasing its secondary service area by about 1000 percent. Satisfactory reception in many sections where static and interference have in the past made such reception impossible, has been reported." Reports from virtually every part of the United State s; according to Powel Crosley, Jr. , "answer with finality the groundless fears earlier voiced that this tremendous power would 'blanket' the dial. "These reports, together with our own tests, under the direction of Mr. Joseph A. Chambers, WLW Technical Supervisor, prove conclusively that the use of this added power interferes in no way with the listener's enjoyment of broadcasts from other stations. " XXXXXXXXXX WAGE RISE BY HYGRADE SYLVAN I A The Hy grade Sylvania Corporation has increased wages 10 per cent. The action affects 3,323 workers and involves an increase of about $250,000 a year on the basis of present employment and production schedules. XXXXXXXX 10 : r-£u;y: u l }. i.;.;.- £-\ .k\ X .oLi :li . j. - . { .-1 4/27/34 RMA DEFINES "ALL WAVE" AND OTHER RECEIVERS To inform the radio buying public as well as the trade, means to establish identification of "all wave" and other receiv¬ ing sets have been adopted by the RMA. The "standard broadcast" receiver is defined to include sets having the regular frequency range from 540 to 1500 kilo¬ cycles. The definition of the "all wave" receiver applies to sets with frequency ranges from 540 kilocycles to at least 18,000 kilocycles. The "standard" and "short wave" or "dual wave" receiver as defined by the RMA will apply to sets having frequencies between 4,000 and 20,000 kilocycles with a short wrave range cover¬ ing a ratio of maximum to minimum frequencies of at least two and one half to one. XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMISSION Applications Received and G-ranted - April 27, 1934 WDRC , WDRC, Inc., Hartford, Conn., C.P. to make changes in equipment and increase day power to 2-g- KW; WJJD, WJJD, Inc. , Chicago, Ill., C.P. to install new equipment; KGAR, Tucson Motor Service Co., Tucson. Ariz. , C.P. to make changes in equipment; KPCB . Queen City Broadcasting Co., Seattle, Wash., C.P. to make changes in equipment and increase power from 100 to 250 watts; KG- IX. J. M. Heaton, Las Vegas, Nev. , modification of C.P. extend¬ ing completion date to July 1, 1934; WHBD, F. P. Moler, Mt. Orab, Ohio, consent to voluntary assignment of license to Veebee Corp. ; WRGA , Rome Broadcasting Corp., Rome, G-a. , C.P. to move trans¬ mitter and studio locally. Also, WHP , WHP Inc. , Harrisburg, Pa. , modification of license for additional time; (Hours heretofore used by WEAK, which station will be discontinued effective May 1, 1934) ; KFAB , KFAB Broadcasting Co. , Lincoln, Neb. , modification of special experi¬ mental authority to operate synchronously with WBBM from 8*30 to 9:30 P.M. until April 29, and 7:30 to 8:30 P.M. from April 29 to August 1, 1934; WBBM, WBBM Broadcasting Co. , Chicago, Ill. , same except with station KFAB; WFEA, N. H. Broadcasting Co. , Man¬ chester, N. H. , special experimental authority to operate on 1430 kc. instead of 1340 kc. , unlimited time and simultaneously with WOKO, ’WHP, WBNS and WHEC, until July 1, 1934; also granted modification of C.P. to extend completion date from May 2 to July 1, 1934. 11 - 4/27/34 Action On Examiner* s Reports WGAL, WGAL, Inc. , Lancaster, Pa. , modification of license to change frequency and hours of operation from 1310 kc to 1500 kc (frequency to be abandoned by WPEN). From sharing with WRAW to unlimited time, 100 w. effective June 1, 1934, Examiner Ralph L. Walker sustained; WRAW, Reading Broadcasting Co. , Reading, Pa. , modification of license to change time of operation from sharing with WGAL to unlimited time 1310 kc. , 100 watts, effective June 1, 1934, Examiner Walker sustained; WTEL , Foulkrod Radio Engineer Co. , Philadelphia, Pa. , dismissed application for modification of license to change frequency from 1310 kc. to 1500 kc. , from sharing with WHAT, WTAL 1/3, WHAT 1/3, WTEL & What not permitted to operate when WCAM is operating to unlimited time, 100 watts, Examiner Walker sustained. Action In Case Heard Before Commission En Banc WMAQL National Broadcasting Co., Inc/. Chicago, Ill., granted C.P. to install new 50 KW transmitter, changing site and increase power from 5 KW to 50 KW, 670 kc. , unlimited time, effective May 4, 1934. Miscellaneous KFBK, James McClatchy Co. , Sacramento, Cal. , C.p. to move transmitter locally, make changes in equipment, change frequency from 1310 to 1390 kc. and increase power from 100 w. to 5 KW was ordered returned to applicant because in conflict with Rule 49 of the Commission; WESG, Cornell University, Elmira, N. Y. , effective date of order changing station to new frequency, extended to May 8, 1934; Robert Lowell Burch, Salem, Ore. , application for new experimental broadcasting station reinstated. To be heard before Commission en banc, June 13, 1934. Ratifications Action taken April 20; WBAA, Purdue University, W. Lafay- ette, Ind. , application for modification of license redesignated for hearing on Bill of Particulars dated Dec. 7, 1933, since amended application involves portion of facilities of WKBF (Note: in Report No. 22, dated April 20, 1934, it was inadvertently stated WBAA is operated by Bay State Broadcasting Corp. , Boston, Mass. The Bay State Broadcasting Corp. is in no way involved in this case); Action taken April 21: KMWQ, Tropical Radio Telegraph Co., New York, granted 60 day authority to operate aboard vessel "Copan" , pending receipt of formal application, frequency 312 to 500 kc. , 200 w. ; Action taken April 23: WBEL, Radiomarine Corp, of America, New York, granted 60 day authority to operate aboard "Comet" pend¬ ing receipt and action on formal application, frequency 375 to 500 kc. , 50 watts; WIEX, National Broadcasting Co. , Inc. , New York, authority to operate broadcast pickup station from April 24 to April 30, frequency 1566 and 2390 kc. , 50 watts, in connection with trial run high speed train, Union Pacific; WLAP , American Broad¬ casting Corp. of Ky. , Lexington, Ky. , extension of program test period granted for 30 days. XXXXXXXX - 12 - 0>H - , 0 r Xo no i a 30 V.O I0!TI gC t ' ; v '■ -r ' n f< - ij, ni \V.T T / 1# • > .< 0?1 OXSI acxc J. ioi i . 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' Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL- Not for Publication r be. .)) !c lln \£ [] U -\Y 5 - 1S34 ■fl , Cr . i'-k INDEX TO ISSUE OF MY 1, 19,34. Catholics Behind Renewed Educational Facilities Fight . 2 Attributes Large Political Vote To Radio . FCC-Judge And Prosecutor Too..... . Senate Communications Bill May Come Up Anytime . 5 Believe New Allocations Will Lessen Interference. . 6 Supplementary Standard Frequency Transmissions . 6 Honking Fowls Used As Wireless Crossing Signals . .7 Business Letter Notes . . . . . 8 Zenith Makes Big Financial Gain . . . 9 Mackay Quickly Answers RCA* s Intercity Challenge . 9 Sees No Cause For Fear In Federal Trade Radio Study . 10 Marconi Making Important Tests. . . . . 11 New And Renewed CBS Contracts . . . . . . 12 No, 719 i£- ^ May 1, 1934. CATHOLICS BEHIND RENEWED EDUCATIONAL FACILITIES FIGHT Senators Robert F. Wagner (Democrat), of New York, and Henry D. Hatfield (Republican) of West Virginia, jointly submitti: an amendment intended to be proposed by them to the Communication Commission Bill to have one-fourth of the radio facilities allocs ed to educational, religious, agricultural, labor and similar non profit-making associations, is further evidence that the testimony of Rev. J. B. Harney, of New York, Superior General of the Paulis t Fathers, before the Senate Committee has started the battle anew. A Bill along similar lines, backed by the National Education Association and labor organizations, was introduced in the last Congress by Senator Fess (Republican), of Ohio, but it asked that 15$ instead of 25$ of all facilities be allocated to this special purpose. In the meantime Father Harney, who operates the Paulist Fathers’ station, WLWL in New York City, sharing time with WPG at Atlantic City, had been unsuccessful in securing more time for his station. Whereupon he asked to be heard by the Senate Inter¬ state Commerce Committee considering the Communications Commission Bill. He told this Committee that while WPG, at Atlantic City, was allowed 110-g- hours of broadcasting time a week, WLWLS s quota was but 15^ hours a week, or, as Senator Wagner later put it, "only about two hours a- day on the air." Whereupon Father Harney offered to the Committee an amendment, which was similar to an amendment later offered in the House by Representative William F. Brunner, of New York, and Senators Wagner and Hatfield, which would give 25$ of all radio facilities to the organizations in question. The Wagner-Hatf ield amendment reads, in part, as follows: "The Commission shall reserve and allocate only to educational, religious, agricultural, labor, cooperative and similar non-profit making associations one-fourth of all the radio broadcasting facilities within its jurisdiction. The facilities reserved for, or allocated to, educational, religious, agricultural , labor, cooperative and similar non-profit, making associations shall be equally desirable as those assigned to profit making persons, firms or corporations. 2 5/1/34 "In the distribution of radio facilities to the associa¬ tions referred to in this section, the Commission shall reserve for and allocate to such associations such radio broadcasting facilities as will reasonably make possible the operation of such stations on a self-sustaining basis, and to that end the licensee may sell such part of the allotted time as will make the station self-supporting. " In the meantime, petitions are pouring into Congress from Catholic organizations all over the United States asking the passage of such an amendment. In addition to this, the Senate has just received a copy of a resolution recently passed at Albany by the New York State Senate which rea.ds, in part: "Whereas Station WLWL was assigned 15-§- broadcasting hours per week and WPG- was assigned 110-g- broadcasting hours per week; and "Whereas the license of WPG was renewed despite the fact that, in violation of the rulings of theCommission, it had leased not only all its broadcasting hours, but had surrendered control over the programs and operations of its station to the Columbia Broadcasting System; and "Whereas there are 30 radio stations in the United State classified as educational, enjoying a total of 817 hours and 40 minutes of broadcasting time each week, or an average of 4 hours per day for each station; "Whereas the broadcasting time assigned to educational radio stations amounts to but 2 •§• percent of all broadcasting time; and "Whereas it is the proud boast of the United States that its people are devoted to the cause of education and to freedom in the exercise of religious beliefs; Now, therefore, be it "RESOLVED, That the Congress of the United States be, and it is hereby memorialized, to enact with all convenient speed, such measures as may be necessary to increase the broadcasting time of* educational and religious associations to one-quarter of all the radio broadcasting facilities; and be it further "RESOLVED, That Radio Station WLWL owned and operated by the Missionary Society of St. Paul the Apostle, in the city of New York, State of New York, be granted a reasonable extension of its broadcasting time." XXXXXXXX - 3 - 5/1/34 ATTRIBUTES LARUE POLITICAL VOTE TO RADIO Col. Thad Brown, of Ohio, speaking at the dedication of the 500,000 watt transmitter of Station WLW, May Snd, said that radio had revolutionized political campaigns. "Thousands may now be reached, compared with the hundreds of former days, and it is not presumptuous, in my opinion to say that the tremendous increase in votes manifest in the last national election was due in large measure to an aroused public opinion by radio", Commissioner Brown declared. Once more, through WLW, said to be the most powerful transmitter anywhere, the United States assumes world leadership in radio broadcasting. "To my mind, one of the greatest blessings of radio is the opportunity it gives us to learn 'how the other half lives'", the radio official continued. "No longer are we isolated from other members of civilized society, simply because we do not have the wherewithal to travel, even though there be many intervening miles. Radio bridges time and space. Through it we learn that our economic and social problems are world problems; we get first¬ hand information on the politics of other nations, and they on ours, which makes for sympathetic understanding. I believe radio wrill be a potent factor in creating international good-will and peace. "In the United States, radio is no longer a luxury; it is a necessity to the comfort, happiness and welfare of our people That is why we hail any and every advancement in the art which will result in better service to the listening public. No longer is the radio considered an instrument of entertainment solely; it has become a dependable means for obtaining information in many fields. The President of the United States uses this media in keeping our citizens informed upon the state of the Union. To the farmer, it is an absolute blessing, bringing him market reports and crop information vital to his vocation; to the house¬ wife, helpful hints to lighten the burden of the day's work and make leisure for other things; to the business man, a means of keeping informed on current events; to the bedridden, a new life. " XXXXXXXXX FCC-JUDG-E AND PROSECUTOR TOO "The most serious complaint against the Federal Com¬ munications Commission plan continues unchanged. A Commission like the FCC is a combination of administrative and judicial functions", says 0. H. Caldwell, former Federal Radio Commissioner "First, it issues its orders. Then, if it thinks it detects a violation, it hales the supposed offender into its own court, and sits in judgment on the case which it itself prosecutes! " X X X X X X - 4 - 5/1/34 SENATE COMMUNICATIONS BILL MAY COME UP ANYTIME While it is uncertain as to whether or not the legis¬ lation will be finally enacted during the remaining month or so before the adjournment of Congress, it is expected that the Communications Commission Bill at least will be considered by the Senate. It is on the calendar and may be called at any time. It was thought that most of the controversial features had been eliminated from the Senate Bill but the eleventh hour introduction of the Wagner- Hatfield amendment, which would allocate one-fourth of all radio facilities to religious, educational, farm, labor and other non-profit making stations will be bitterly opposed by the commercial broadcasters. The National Association of Broadcasters, through Henry Bellows, Chairman of the Legislative Committee, and Phil Loucks, Executive Manager, have sounded a general alarm. It seems to be the opinion of broadcasting executives that if the Wagner-Hatf ield amendment should be adopted that it would wreck the American system of broadcasting, economically at least. This would be brought about by the greater opportunity afforded to educational stations to sell time in opposition to established commercial stations. 11 In the last analysis, I think such an amendment would be declared unconstitutional", said one broadcaster, "because it would be taking the time-selling privilege from station 'A* in order to give it to station m3’. At any rate, I am sure such an amendment might be tied up in the courts for years. " It is believed Senators Dill and White, radio leaders in the Senate, will oppose the Wagner-Hatf ield amendment and will favor the Interstate Commerce Committee recommendation that the new Commission study the proposal and report back its recom¬ mendations for Congress to take action at a later date. The hearings on the Communications Bill in the House have been tentatively set for Tuesday, May 8, but may have to again be postponed to make way for more urgent legislation. XXXXXXXX 5 . i jji : . . • ' ■ v- • ; - ?is. . n tpr.bz . . i ■ - l?noo a a 11-' w visel -1b ll.tS not ■ ' ' . 1 ...... - ' ' " • : - - - \ - BO ji : • ' • •- * ■ ;. . v «... t •- • - ■ h • ?£ ' ' 1 J M ... 1 ■ 6 8 r - • \ ' . . *:• i Ci. . : . ' ' . - I 1: i:;l l.i - ' ■" ■1 " ' ■ v : . : [ .. • • ft 0$: \ fcl I- IJ { :• £> ■ - ; rCrl"* : - . •' . . . bilk i *.-• W - :• JL’. ? C . - ■ • • ±r}f " - ; ■ . . ill ■ ■ •> • T ■ .-.V . Vj % \} ....... ‘ ■ '$ ji. SQft - , • - • ■ • 31. ■ : 3 ' .1, ' - : ' ■ • ' • . r ,’l . •• . • : • SM • 3 ■; - ■ • ' . < ' , jj 1 • ' -• -v 11 1 - ;..i itq f. -■ .. . ' n ' ’ - . b ■ ■ . . - ■ ■ o/ia & .... ' • 1;.-' n i -l. •• v t - . -1 ■ f: . i . j i ' f i cyy i . o ■ >, . i. f ^ ./ X - : ‘ > •!* -J .w X/ , ,« ij . . .••.-.i, : • ■ T 1 ; t , \ / ' • . h ’ 1 ' ' ■ '■ ' . " •;. .. ' :: • ' . .... . r ■, ■ M 1:. 2 , g r; ; ' 4 , JS- . 1 . ■ r ' , - aao ) ' T ' ■ ■ ■ /, : • . : - isjh?- ii ; A . • 5* . ■ ■ g . •• ' .. , ’ ; ir -r ,.io at ju b&Zi ?cf ,tri : i i ns j dosjv. < ■ 1 ■' - ■ ■ . ' ' ;■ . • • . ■ 1 • . f ■ ■ ' ' -j r ] ~ J ■ • ■ - - : - / - osrcro ^ • X< - •' ' •' . . . ■’ •• ’ . •• r.’ ■ • ... 1 V 1 ■ ; ■ ■ ■ - \ \ ■ : '• ". ; ; - - • • -•••• •v -'i - I *' ■ ; : • v,m wfi'd 8 %:■. . '■ ids 3i/T ‘ ' ' . ” Si . . . • ix t , ■; ; - - -i 5/1/34 BELIEVE NEW ALLOCATIONS WILL LESSEN INTERFERENCE The Federal Radio Commission has allocated 4 additional frequencies to the Emergency Service for use by State Police sta¬ tions, on condition that no interference will be caused to the Maritime Mobile Service. The additional frequencies are 1610 kc. , 1626 kc. , 1634 kc. and 1642 kc. At the same time the Commission allocated 6 additional frequencies for shared-use between broadcast pickup stations and experimental visual broadcasting stations. They are 2020 kc. , 2060 kc. , 2090 kc. , 2760 kc. , 2790 kc. and 2830 kc. An allocation of frequencies to state and municipal police radio stations was approved by the Commission on February 13, and was effective May 1. Under this plan only 8 frequencies in the band 1655 kc. to 1715 kc. were made available for State Police stations. In providing an allocation of frequencies for use by State Police Departments, the Commission found it necessary to anticipate in advance the filing of applications by all of the 48 States, and to allocate the frequencies in such a manner as to permit existing licensees, as well as future applicants, to receive approximately the same benefits. To formulate such a pie. ' on an 8-frequency*duplicate frequency assignments with insufficiee mileage separation to permit simultaneous operation at night with¬ out interference. (^Kindly insert - "basis was found impractic¬ able and inadvisable, since it would be necessary to"). The plan for operation of broadcast-pickup stations is so designed that when it is accomplished both of the major broad¬ cast chains, and at least two unaffiliated stations may transmit broadcast-pickup programs in the same area without creating inter¬ ference. X X X X X X X SUPPLEMENTARY STANDARD FREQUENCY TRANSMISSIONS The Bureau of Standards announces a series of supplement¬ ary experimental radio transmissions to be made on 10,000 kilo¬ cycles per second from its standard frequency station WWV, Belts- ville, Md. , each Thursday during May, from noon to 2 P.M. , E.S.T. These transmissions are additional to the regular 5000-kc/s trans¬ missions and will be conducted in a similar manner. The Bureau desires to receive reports on these supplem¬ entary 10,000-kc/s transmissions, particularly from points more than 500 miles from Washington. This should provide standard- frequency service to the western half of the United States, and 6 . ' , •• rv nr; r. )£J S'. 5 ■ y . ! XJ • -- •. ... : - ; ' . . >,o no .. .. • :. .X-- , •< c-^cl aw& iiiic -J- ~«,rfE 'in’i ; £ flOj ‘ fcSU ‘ . V ■ ; .. . • . s . " • . •• •• , • ( f f a :J . * ■ "■ _ ~ i ’• ’ ■■ : ••• " : 'S ■' ■ ■ • : \ ?* m on su p '!... £.\ rt& ;--v Mr . . t ■ - S ■■ ■ ■. ' : ' '■ ' , ' : . • ■ - \4 ■. ■ r- .1 X ■ . v Oil: ■ .5-.' ; '. . .. . • y v- ?■ tdd . £ e £ ■ id . $/5 p ' ll& ■ ■ ' ' ' i :i\ , • t ■ im ■ • * • • **a- - • - * . ... . r : . : : 1 * 3 :-9 " : * ' . . ' • w . .. - ■ . -• , -• .. . . .. .r f - , . „ ; i\m . >%% . , ■ V, \ \ -x- - 1 35 ' • ; • ; ” ■■ . . •• . . ;V?i\4 Hii*’ ' £ n ml ' < ■ . I 5 ; ■■ : 7 id . ‘i :pM ' : ) . m:i\; u • '■ .. .... ... i .. ^.pps HBiq Si: •• Vjf ■-. ■ • •• ■ • : ''■,v i s : q - 4# .- % ■ Xq- -v. .5 " ‘ f rn £■• " v .■ ... 8 • .. . ■ X „■ £ .x-- i r Q1 C1Q • ‘ ' . ^ ” : . , ;• - •• ' : v :i t - •■■■ ; ... . t . f •: •• v . , . ; .> . . . -G . • - ; ■ • 5/1/34 served by this company to an even dozen, the others being New York, Chicago, New Orleans, San Francisco, Los Angeles, Seattle, Port¬ land, Ore., Tacoma and Oakland and San Diego, Cal.", the Mackay reply set forth. "This new service is available at any Postal Telegraph office in any of the above cities and Postal Telegraph will also collect and deliver messages at these points for Mackay Radio. "Rates between all of the points are on the basis already established by Mackay Radio which was not only the pioneer in inter-city radio service on this continent but also was the first company to establish the fast and direct service which per¬ mits the telegraphing public to send 15-word messages for the regular wire line rate for 10 words and also increased the initial number of words which may be sent in a night letter from 50 words to 60 words. "It was further announced at the offices of Mackay Radio that permission has already been secured from the Federal Radio Commission to erect radio stations at Atlanta and Kansas City and service will be extended to these points later in the year. Still other points, it was said, will be joined to the inter-city radio telegraph system as business and traffic conditions warrant. "The Mackay Radio and Telegraph Company, which pioneer:" point-to-point radio service between American cities more than twenty years ago on the Pacific Coast and established service between New York and San Francisco in 1929, brought Chicago and New Orleans into radio contact with its Atlantic and Pacific Coast points last December. " XXXXXXXXX SEES NO CAUSE FOR FEAR IN FEDERAL TRADE RADIO STUDY Commenting upon the sudden interest of the Federal Trade Commission in radio advertising, Broadcasting Magazine has this to say: "While one naturally looks askance at any sort of in¬ vestigation, the broadcasting industry really has nothing to fear from the Federal Trade Commission1 s survey of radio advertising. It is not in the nature of a hostile attack upon radio, but simply a procedure under which the Commission' s Special Board of Investi¬ gation can examine commercial credits just as it examines printed advertisements in newspapers and magazines. 10 s'xsrUo i-dj ^asob nsvs ns of Tytisqm* ’■! : ■ v d I. 5 ,r4 ? V . i ~‘, r .d" ^4 44 s44 . \ . He *-■ ' . • ■ - • V •• ' n ; -visa i, 44 T ’’ > : f. J i c v i ■' :t'£ ' . : - r"l ' . ' ' 5/1/34 "In the past the Commission has not devoted any con- siderable amount of time to radio advertising, despite the fact that there is unquestionably some program material on the air which borders on the fraudulent and misleading. It has been handicapped because it has been unable to get the precise langu¬ age used in commercial credits and also because of lack of appropriations. "With networks, transcription companies and stations supplying to the Commission their commercial announcements in programs advertising commodities sold in interstate commerce, the Commission feels it will be able to check radio advertising in the same way that it reviews publication advertising. It is obvious that in scanning these scripts it will find a few things of a questionable character. The parties will be notified and the advertiser asked to correct the condition. Only when the advertiser or station or both refuse to abide by the Commissions 1 s rulings will punitive action be taken through the courts. "Based on past experiences of the Commission in the few radio cases handled, and on its experience with publication advertisers, we feel that there is little reason for alarm. Few advertisers have been forced to discontinue their advertising altogether, and only a small percentage of the cases handled ever get beyond the stipulation stage, in which the parties agree to cease the objectionable practices." XXXXXXXX MARCONI MAKING IMPORTANT TESTS A revolution in the field of wireless communication is seen as a result of experiments with very short waves now being carried out by Senator Guglielmo Marconi, the London Morn:; Post reports. Senator Marconi, who has just celebrated his 60th birthday, is conducting the first regular communication tests over hundreds of miles between stations near Genoa and Leghorn, Italy, employing the new micro-wave lengths. He said the experi¬ menters were obtaining "very fair reception, although not so good as we want. " There was no apparent difference between day and night reception on the new wave lengths, the Italian inventor declared, but there were other variations, the cause of which they had not yet discovered. He added the new waves greatly extended the range of radio broadcasting and probably would be applicable to television. The Post * s interview said, pointing out the advantage of operat¬ ing the new "band", at which "there will be no interference of any kind. " X X X X X X - 11 - \ I. 5/1/34 NEW AND RENEWED CBS CONTRACTS The following are some new and renewal accounts of the Columbia Broadcasting System: RENEWAL - Union Central Life Insurance Co. , Cincinnati, Ohio, started April 15, 1934; Sunday 5 to 5:30 P.M. , April 15 to April 22, 1934, EST, Sunday 6 to 6:30 P.M. April 29 to June 3, 1934 EDST, suspends for Summer, Returns Sundays 5 to 5:30 P.M., Sept. 9, 1934 EST; Network - 16 stations; Program - Roses and Drums; Agency - J. Walter Thompson Co. , Inc. , Chicago. CONTRACT EXTENDED - Hudnut Sales Company, New York, Contract extended four weeks beyond May 4 to June 1; Friday - 9:30 to 10 P.M. EDST; Network - 23 stations; Program - Marvelous Melodies, Jack Whiting, Jennie Lang, Jack Denny; Agency - Barton, Batten, Durstine & Osborn, Inc. , New York. ADDITIONAL BROADCAST - S. C. Johnson & Son, Racine, Wis. , May 6, 1934, Sunday 5:15 to 5:30 P.M. EDST; Network - 22 stations; Program - Tony Wons, Keenan and Phillips; Agency - Needham, Louis and Brorby, Chicago; Product - Johnson’s Auto Polish. NEW - Elizabeth Arden, New York; Product - Cosmetics; Started April 24, 1934; Tuesday 9 to 9:15 P.M. EST; Program - Maury H. B. Paul (Cholly Knickerbocker); Don Bestor’s orchestra; Network - 23 stations; Agency - Blaker Advertising Agency, Inc. , New York. NEW - MacFadden Publications, Inc. , New York; Starts May 4, 1934; Friday - 8:30 to 9:15 P.M. EDST, rebroadcast 11:50 P.M. to 12:15 A. M. EDST; Network - 35 stations coast- to-coast; Program - The True Story Court of Human Relations; Agency - Erwin, Wasey & Co. , Inc. , New York. NEW - Individual Drinking Cup Co. , Easton, Pa. ; Product Dixie Cups; Monday - 6:45 to 7:15 P.M. EDST; Network - New York, Boston, Albany, Chicago, Washington, Baltimore, Detroit, Phila¬ delphia, Minneapolis, Charlotte; Program - Script act listed as Dixie Circus; Agency - Young & Rubicam, Inc. , New York. REVISED CONTRACT - Continental Baking Corp. , New York; Starts May 18, 1934, 9:15 to 9:30 P.M. , EDST; Network - 21 sta¬ tions; Program - Little Jack Little; Agency - Batten, Barton, Durstine & Osborn, Inc. , New York. RENEWAL - Household Finance Corp. of America, Chicago, Ill., Starts May 3, 1934; Tues. and Thurs. - 6:45 to 7 P.M. EDST, WABC only; Program - Anthony Candelorl's Salon Orchestra; Theodore Ernwood and Eazo Aito; Agency; Charles Daniel Frey Co., Chicago, Ill. XXXXXXXX 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Not for Publication A j MAY 5 ~ 1334 ' j.< r I t ‘H -/A f I *\ ',•! ' h&x c JYYiBq.3 . & bn& to * ; ■ - . . . ...... . Y’ . , SJ C l. • I/SV5 . . j ' ■ ix.-r; aao £ . ^ . ..'4. i ■ • ■ ■ • - •’ ; . . 05 .' ' ' 31 pi : ' - '' ' % ..... l . . at ' as cal . - . o . . tc : XX- ,. -v tv- DS 4 OY -,!■ : ... .- - ' • ■ : . ‘ '• Si : . ; . . . ' - ' ■ .... .j 6i£?fv V 4 - -' . . . . - . - - - - - -r ■ ; » i i .; ' ' . ■ ■ . . $ ,4. . .. - - . , . ... — . . ..„ .- .. — .. ~ . - - • ; • ' - t [ < •. . .. r , ..... ' • - '- ' ■- ....• ■ .. .. a ■t-2S‘ v . . 4 ' ” - • ' . • : • .- ' r. ■ ' .. ...... , : ■ :v •. ... i : ^ ’> -*■-.* ' ‘ 'j. . . - : f ; . . '• . .« • i- • - ■ ; ■ ' ’• ; .. ■ ‘ ■ . Y .. ':Y'. : ■ • ■ i •. : - v " ' ". . - . ■ - . - - ■ - ■ ’ v 4- ' -.. .' '4 'f ; ' . -4 ' ■ -r ■ .4 ' ■ . ■ : . 5/4/34 forms of communication are dealt with. I may say that the plan of this convention responds to the thought and purpose and to the proposal of the United States Government and of the delegates of the United States at this international gathering. "The convention is composed, first of all, of provisions which deal only with the general principles relating to communica¬ tions. It next has an annex embodying general regulations which seek to amplify and make effective the general principles contained in the convention. Then there is a second annex dealing with what in this country our communications companies are disposed to regard as managerial or operating functions. Such authorities are all grouped in this annex to which the United States is not a party, the United States adhering only to the terms of the convention and to the general regulations." "I had a considerable number of complaints from amateur radio operators and organizations of amateurs interested in radio, but the Senator from Nevada has explained that the hearings entirely satisfied these amateur radio complainants, as I under¬ stand", said Senator Dill of Washington. "I cannot go so far, probably, as to say that it satis¬ fied all of them, but those on the Committee who were looking after their interests and caused the hearing to be had advised them that they thought the treaty afforded to them more protection than they ever previously had", Senator Pittman replied. "I may say that since the hearings I have had no further complaint, so that I take it that they are satisfied", Senator Dill said. "I think they are", Senator Pittman said. "I, too, have had representations from amateurs with respect to this treaty", Senator White interjected. "I recall that in 1927 the amateurs were greatly disturbed at that time as to the provision to be made for them in the then pending radio treaty. The delegates from the United States then did everything possible in behalf of the amateurs of this country. I also feel sure that our delegation did everything possible for them at this Madrid Convention. I am fully persuaded that if it were not for the pro¬ visions inserted herein in their behalf, the amateurs of the world and the amateurs of America would have, so far as international cor¬ respondence goes, a very much more difficult time than they now face under the terms of this treaty. In other words, I think, as does the Senator from Nevada, that this is a shield and a protec¬ tion to them in their international interests. " "That shield and that protection, however, come largely from foreign countries rather than from the Government of our own country", said Senator Dill. "I think that the governments of foreign countries have been more unfriendly to amateurs, probably than has our own Government. " 3 •i. • i- 5/4/34 "I think the Senator is quite right, and when I refer to a ’shield and a protection', I mean that the United States has secured from foreign countries concessions in behalf of amateurs which could not be had except under the terms of this treaty" , Senator White answered. "I feel that with the continued development, the enlarg¬ ed development, in fact, of the use of the short wave the amateurs1 claim becomes even more worthy of consideration than when the number of frequencies available were fewer than they now are", Senator Dill concluded. "Personally, I am strongly in favor of the ratification of the treaty." The Madrid radio treaty is printed in full in the Congressional Record of May 1, covering 35 pages. Copies of the Record may be had upon request from any Senator or Representative. XXXXXXXX SUPREME COURT GETS DE FOREST SUIT AGAIN Once more the Supreme Court of the United States has been called upon to decide who was the first inventor of the radio feed-back circuit and oscillating audion, DeForest or Armstrong. The Second Circuit Court of Appeal in New York recently decided in favor of Armstrong but other courts have backed up DeForest. The Second Circuit Court of Appeals declared that when the question of priority of investion was previously before the Supreme Court, it was not decided on its merits and that the action of the court did not constitute a finding that DeForest was the first inventor. The present case arose out of a suit brought by the Radio Corporation of America, the American Telephone and Telegraph Company and the DeForest Radio Company, as owners of the DeForest patents, alleging infringement by the Radio Engineering Laborat¬ ories, Inc. of Brooklyn. XXXXXXXX ADDITION TO NATIONAL MONITORING STATION FAVORED The House Committee has favorably reported, without amendment, the bill authorizing an expenditure of $1200 for an additional 10 acre tract of land for the constant- frequency Monitoring Federal Radio Station at Grand Island, Nebraska. More ground is needed there to erect antennas. X X X X X X X 4 - \ ■l - 5/4/34 U. S. MARINE BAND CONCERT PICKED UP IN CAIRO A letter has been received from Staff- Sergeant E. T. Malloy, of British Army, telling Capt. Taylor Branson, leader of the United States Marine Band that he had heard their concert in Egypt. Sergeant Malloy pointed to the Band's "Dream Hour" pro¬ gram as a good example for the British Broadcasting Company to follow. He listened to the concert in the British Army Barracks in Cairo, which came to him from Washington by short wave through Station W3XAL, Bound Brook, N. J. , outlet of the NBC-RCA. The British sergeant's letter follows: "For the past few days I have been trying out an Ameri¬ can Radio Set, to be exact, a "MIDWEST" 10 tube model G-10, and I have been more than agreeably entertained by what you describe as 'your morning transmissions' which you radiate at 8:30 A.M. Eastern Standard Time, although I received them at 3:30 P.M. Cairo time. "I have been going to write to you for several days past, but kept putting it off through pressure of duties. However, I feel that after tonight's reception of the U. S. Marine Band and their wonderful 'Dream Hour' program, no words of mine can ade¬ quately express the appreciation that must have been felt also by millions of other listeners. It was the goods. I can offer you no better suggestion than that you should send to the BBC in London a few hints on what the average listener in the Empire Short-wave zone really appreciated. I can assure you that after a hard day's trek in the desert one returns to Barracks with a keenly developed sense of appreciation of 'Bach - Fugue in C-Minor' or something or other Opus 3349, or alternatively a talk on Scottish Customs by Professor McSporran, which seem to form a feature of the London evening programs.??? "I am not only writing to you on my own behalf but in respect of at least five other members of this far-flung colonial empire army, who prefer such items as the Dream Hour, the RKO Cinema Organ (Give the player our kind regards - he's a spanker) and the H. J. Heinz program put over by you last week-end. "Your transmitter on the 16 meter wave comes in wonder¬ fully well, and so does the announcer's pleasant voice; why he might be an Irishman, his voice has such a lilt. "Here's wishing you every success, and if you would be so good as to pass the enclosed copy to Messrs. Midwest Radio Corporation, Cincinnati, you would earn the grateful thanks of Yours very appreciatively, Staff-Sergeant E. T. Malloy." XXXXXXXX 5 5/4/34 BRITAIN CONSIDERS NEW TELEVISION SYSTEMS Two rival systems of television, the new invention of J. L. Baird, and the 120-line or "higher definition" system spon¬ sored by the Electrical and Musical Industries, Ltd., are to be tried out by an expert committee appointed by the British Post Office with the view of giving the public the best service through the British Broadcasting Corporation’s transmitters, a dispatch to the New York Times discloses. Sir Kingsley Wood, the Postmaster General, stated in the House of Commons that he hoped soon to announce the composi¬ tion of the committee and the terms of reference. At present the British Broadcasting Corporation is using Mr. Baird's earlier thirty-line system, but it is e,rgued that both new systems have rendered its installation obsolete. Another company concerned is the Gaumont British Film Corporation, which recently closely identified itself with the development of transmission of films by television. L. Sterling, Managing Director of the Electrical and Musical Industries, Ltd. , in which there are many American inven¬ tors, said: "If the committee works as it should do, Britain will be placed in the forefront of the television industry." Mr. Baird also welcomed the inquiry, saying, "The time is ripe to form a future policy regarding the science of televi¬ sion. " X X X X X X X SALARIES UPHELD FOR RCA OFFICERS A large majority of the stockholders of the Radio Corpora tion of America at the annual meeting of the company held in New York the early part of this week signified their approval of the salaries paid to officers of the company despite persistent criti¬ cism on the part of five of their number. All of the 11,448,396 votes present in person or by proxy at the meeting were cast in favor of directors whose terms came up for renewal this year. Of 272,683 stockholders, 256,055 of whom own common shares, eighty have expressed criticism of salaries or managerial matters in letters received by the company in response to requests for proxies, General James G. Harbord, Chairman of the Board, said at the meeting. David Sarnoff, President, who presided at the meeting read a statement in which he said that "no bonuses have been pah. to officers of the Radio Corporation of America for the years - 6 - £ .. Vi ■■n onj . j. ! _ ■ ■: •> “Eli/ £ . . ■ .. 7 ; ov:7 • ' • • , bl ' € J9-IOB ; . . " ■ "... '7 ' - ' . -ab’ao ti ' . ; 's : * ■' S ... ; ■ :■ : ■■ . • . ■; ■ \ . ■ . ■ - - . ■ . . . • 1 " ' ' ■ ■ \ • til ' . ' . ■ 3£E ■ 5- , ( • . l D f • . J-BSJJ'XJ . .iJl QJLj . . ■ ■ snr ■. : • • , :.. t&i i . • . . ' ‘ ... " - . ; . _ . - ■ il di ' ■ .. ■ f • • ■ ' ' ’ 1 ^ ».-.,[07 . - . - - ' ■ ' ' ' . t XI ,r» fn u ■ *xJ . , Vi '■ • • * .. flO JOV . : O i £ ' '■ . ! ! i ■' ' ' , . xo ■ . . . cb8:- 0(3'. Oft ■ ■ i ... i . ■ £ 5/4/34 1930, 1931, 1932 and 1933. Similarly, no bonuses have been paid to officers of RCA, subsidiary companies since 1931". As to prior years, he said, supplemental compensation was paid in 1928 in the amount of $165,815, representing less than 1 per cent of net profit in that year, and $187,386 was paid in 1929, or 1-1/6 per cent of net profit for that year. Beneral Harbord said that the salaries of all the officers in 1933 amounted to 4.4 cents a share on the common and preferred stocks of the company. Mr. Sarnoff announced that net profit for the first quarter of 1934 had amounted to $1,235,725, comparing with a loss of $478,164 in the 1933 period, and $24,448 more than the profit for the final quarter of 1933, normally the most profitable period of the year. Gross income from all sources amounted to $19,133,919, comparing with $13,222,054 in the first quarter last year, a gain of 45 per cent. X X X X X X X ROOSEVELT OPENS 500 KW WLW WITH GOLD KEY The pressing of the gold key - connected by direct wire to the Crosley Transmitter Plant at Mason, 0. , - by President Roosevelt in Washington last Thursday night inaugurated a six hour program dedicating WLW, the new 500,000 watt transmitter of the Crosley Radio Corporation, which will be on the air con¬ tinuously from now on with the most powerful carrier wave ever transmitted through the ether. Marconi cabled Mr. Crosley from Rome that "You may well be proud of the addition you are bringing to American broad¬ casting and of your own contribution to the further development of the use of this most powerful and practical means of spreading news, education and enjoyment throughout the civilized world." Senator C. C. Dill congratulated Mr. Crosley on the opening of the new station saying, "You deserve great credit for pioneering in high class radio broadcasting and I wish you every success. " Another congratulatory message came from Einstein. Speakers at the ceremonies, in addition to Mr. Crosley, included Thad Brown, Vice Chairman of the Federal Radio Commis¬ sion, and Harold Lafount, a member of the Commission; Mayor Russell Wilson, of Cincinnati; E. A. Nickolas, of the RCA Victor Co. , that built the new transmitting equipment, and John L. Clark, General Manager of WLW, Joseph A. Chambers, Technical Director. David Sarnoff, President of the Radio Corporation of America, spoke in New York, and his address was relayed to Cincinnati. X X X X X X X • ' V-; . . . : ; ■ • . 8*190.1 3ii , • ■ ' ■ . ■ i. a • t ■ ■ 4 ■ ' I i ■■ : ■ .. • • - . it >. o: k \f a / r: o’l^rjo '■ . : • ■ ■ - . . A ^ ’ ; • ■ .• , ; . " oil- io ■ . .ina o leq to i' *IW . :'7 &r -o: :i: v •1?' : ' : noy ; ; y ; - ; ' ;} ■ iiiso a t-'i 4 , ftc& oM JazIZ *xa J l) * j . ■ ; 1:: uX 1 11*3118' ■ 3 SO ' £ . ' I. • • . ; Oil - ; ■ • • ; '■ - f J a..-. ' ' J - ■ ?! ; . . . . "a d 1 > ’ . c ■ • - t ■ . I ■ • , ■ ' ■ - ■ < oil . t . • . . Y . 101 ■ :0 .• ■ • • ‘ • . rXoai m; . . ... 6fo 3:jM . . '• ... : ,/ V tojoIV AO R oiii to X’TOsXO ,d nxioT* 5n , ■ . '■ V-” > ... . : . ; V- . A V A- x ,v X X a; 5/4/34 BROADCASTERS BELIEVE EDUCATIONAL AMENDMENT BEATEN Confidence was expressed by broadcasters that the amendment which Senators Wagner, of New York, and Hatfield, of West Virginia, will offer to the Communications Commission Bill, i.e. the one- fourth of all radio facilities be allocated to educational, religious, agricultural, labor and other non-profit- making organizations, will be beaten by a substantial vote. "If I were betting", said one broadcaster, "I'd bet 25 to 1 that the Wagner-Hatf ield amendment hasn't a chance of passing. " This expression was based upon what was said to be very satisfactory assurances following an S.O.S. sent out to the broadcasters of the country. On the other hand, those sponsoring the amendment, such as Rev. J. B. Harney, Superior General of the Paulist Fathers, who operate Station WLWL in New York, the Committee on Education by Radio, and oertain labor interests are apparently just as confident that it will be passed. A prominent labor leader has bet a leading broadcaster a steak dinner that the amendment will prevail. Representative Stephen A. Rudd, of New York, who introduced an amendment in the House similar to the Wagner- Hatf ield amendment, revealed that a meeting was held in the office of Congressman Connery, of Massachusetts, Chairman of the Committee on Labor, which was attended by Congressman Maloney, of Connecticut, many other Congressmen, and representatives of labor, various religious denominations, and other organizations favoring the legislation. The meeting was addressed by Father Harney. There is every assurance that the Wagner-Hatf ield amend¬ ment will be vigorously discussed at the conference called by the National Committee on Education by Radio in Washington Monday (May 7). This group has been very critical of commercial broadcasting and doubtless will not lose the opportunity to hurl a few brickbats at the American radio program system in general. It now appears that the Communications Commission Bill will come up in the Senate sometime next week, perhaps following the Stock Exchange Bill and before the Tariff Bill. Hearings on the House Communications Commission have been tentatively scheduled to be resumed by Chairman Rayburn of the Interstate and Foreign Commerce Committee next Tuesday morn¬ ing. Those to be heard at this session will be representatives of the Interstate Commerce Commission and the War Department. Among the other witnesses will be George Shouse. Despite all this activity, it is still considered doubtful as to whether or not there is a chance for the bill to be passed before Congress adjourns. X X X X X X - 8 - r • /A • ' • . * "'u G.&n.aop . -■ .. X ,.;7.:. • .• • ; / A T r et T y -> • . . r ; < *.* r - p ( f j: ... - a ... . U.-t,: : . .. .• 0 : ;;•/ f- y ... , W i ,ti il : - . ; c . i . • • ' f ; , , ... . ? ' * -w • ■ a aBVv &bi b ■ • e aii'.T r v aa-'.S-.O-;* Me IS. o’ SV. l: . r-; ■: : . i — - q; ; .qf- C"XO o a • •. r .. o ...l .« prfij Ct0 ■. - 'ion ...... ■ ,3 , : ... ' - / . • rq • ?* - .. 4. . 4 - ■- ri . . . - n 1 ' - " ' * • ' "■ ■ ~ ■ ' . ,■ a . ■ . b : i 1: t t ‘ » ' C. JX'lC ' ' rv ' - ‘ . ■:■. • ' . . . ■. - • : • 1 ° ' J •' . , .. . , ' K ■ ■ , ; ' ' > . . ..... -V . . ' • . r . '■ ';-.7. ' ..77.7 • J B • ac . : '! . : h‘ - " ■ • .. , • ■ ... , yl . /: :qo v. q : ' o ' ' ' - .- • : •• • ; .. : J \ • " . q '7.77..- : q - , . i l: , .t L t ■ : " - . .... . ■ ... -i . ■ ; / 0. . ... ' ■ . - . " ?v- J i.f V pD- • : v. lit . ; •. ' - • i . >D. M ■ , ■: "'r’i . '•! > '' ■ .y.. r t a ! . ft f . J ■ ■ Tf ft ....... : cl - .9 \ Vs® f V C v"/' - ' ; .. ■ , ' •" 0± r.ill't&r :i oil ? . ■ :!'■ 9;i 3 ‘ V,: &S 9 JLjL ■ ' ' ■. - X ■ . ■ ' 1 l nc..i .v n- ; ■ I’ll oX~ ‘ a J :Cvt ■W ;i • . / ... . .. , ... ' .• £ • - ‘ .!. X ' - CfJ'i 5/4/34 many of the practices which were attacked by the Postal offi¬ cials as unfair and did not express any particular alarm over these conditions. Willever at that time admitted there was possibly some competitive practices which should be considered, but expressed doubt that a code for the telegraph industry alone could properly include them. Frank W. Wozencraft, Assistant General Attorney of the Radio Corporation of America, reiterated much of his testi¬ mony presented at the last session and charged that the pro¬ posed code would new be in effect it if were not for the objections offered to it by the Postal group and the Inter¬ national Telephone and Telegraph Company. "We are still ready to support a code of wages and hours" , he told the Deputy Administrator. X X X X X X EXPANSION OF RADIO IN GERMANY CONTINUES Fostered by the Government, the use of radio receiv¬ ing sets continued to make progress in Germany during the first quarter of 1934, Assistant Trade Commissioner Rolland Welch points out. From Januaryl, to April 1, 1934, a total of 372,148 radio sets were added to the tax rolls, a number which reflects accurately the total sets sold in that period. The total number of radio receivers in Germany on April 1 was recorded as 5,424,755, an increase of 1,116,753 over the figure recorded on the corresponding date of last year. The majority of the radio receiving sets sold in Germany since the Government opened its campaign during the latter part of 1933 to increase the number of sets in use, have been a special three-tube model retailing for approximately $20. This special set is not capable of receiving distant stations. During the first quarter of 1934 the German radio manufacturers placed on sale a new standardized loud-speaker. Another new development during the quarter was the introduction of a radio receiving set to be operated with batteries. XXXXXXXX 10 5/4/34 CORNELL WITHDRAWAL CLEARS WAY FOR 4- STATION OPERATION The way for the simultaneous operation of WBAL, Baltimore, and KTHS, Hot Springs, and WTIC, Hartford, and KRLD, Dallas, has apparently been cleared by Station WESG-, of Ithaca, Cornell University station, applying for another wave. WESG, which has been blocking the new allocation and had expected to go to court about it, has applied to operate daytime hours until sunset Dallas time on 1090 kilocycles, the clear channel allocated to KMOX, St. Louis. With its applica¬ tion, WESG filed a consent agreement so that it now appears to be a mere formality for the final approval of the Radio Commission and the court action of the Cornell station will be abandoned. Station WSEG will only have to be moved slightly from its present assignment and thus makes it possible to put the new scheme into action. The case will probably come before the Radio Commission at its meeting next Tuesday. XXXXXXXXX RADIO COMISSION MOVES TO NEW POST OFFICE BUILDING The Federal Radio Commission has just moved into its new quarters in the recently completed Post Office Department building at 12th and Pennsylvania Avenue, next door west of the old Post Office building and two blocks east of theWillard Hotel. The moving began Friday night and was expected to be completed by Monday morning. X X X X X X RADIO REMAINS AN ADVERTISING BUSINESS The plain truth about radio is that it is, in America at least, a business, an advertising business. And it remains an advertising business whether you can tune in on the Philhar¬ monic Orchestra or on Amos 1 n* Andy. - Samuel Chotzinoff in Today. XXXXXXXX 11 - ■' ■ ' f v : 7x7 7 ■ 7. ,■ . f-Q 9*10 . . •'■■■ . ' ■ -• . .• i . . ■ ;r ■ •• • r . • .77 ■' . . 7 • ■ . : - 7 v . ■ ■ ' ■ * '■ riC-xC:iM . . ■ « - f< ’ ■ C 7’ ■ 7 f a s is iiuDSS'Tq ajl • -.ft to '■ ■ ■ ■ ■ - ■' , ■ ' 7 . - . £ ■ ■ ■ " ' ■ • ■ ■ ■ ■ - ■ : " ' ■ . ' ' ' ' . • . . KiMiXKJ * ■ : ' ' • it' ■ ■ :: "7: 7.: .. . 7 • . ' • • • ..... ’ fix &Z ■ ■ 7 :urxsu oiix • : ■ ; ■ '. ' ' . . /•"' - • ■ • • ' ' ■ "■ - • x j — 5/4/34 DECISIONS OF THE FEDERAL RADIO COMISSION Applications Granted (May 4, 1934) WEED, Wm. Avera Wynne, Greenville, N. C. , C.P. to move transmitter and studio from Greenville to Rocky Mount, N.C. ; WSGN, R. B, Broyles Furniture Co. , Birmingham, Ala. , modification of C.P. extending commencement date to May 1 and completion date to June 19, 1934; WLAP , American Broadcasting Corp. of Ky. , Lexington, Ky. , license covering move of transmitter and studio from Louis¬ ville to Lexington, Ky. , and change frequency from 1200 to 1420 kc. ; WCHS } WOBU, Inc. , Charleston, W. Va. , modification of license to change corporate name from W03U, Inc. , to Charleston Broadcasting Corp. ; WHET, Troy Broadcasting Co. , Dothan, Ala. , consent to voluntary assignment of license to Jno. T. Hubbard and Julian C. Smith d/b as Dothan Broadcasting Company. Set for Hearing WERE, Louis G. Baltimore, Wilkes Barre, Pa., application for renewal of license designated for hearing; WMPC , First Method¬ ist Protestant Church, Lapeer, Mich. , application for change of frequency from 1500 to 1200 kc. , granted by Commission on April 13, set for hearing because of protest of Capital City Broadcasting Co. ; WJBK . James F. Hopkins, Detroit, Mich. , application to operate full time on 1500 kc. set for hearing. Grant of April 13, 1934, sus¬ pended; WIBM , WIBM, Inc. , Jackson, Mich. , application for full time on 1370 kc. , set for hearing; grant of April 13, 1934, suspended. Miscellaneous KRGV, KRGV, Inc. , Harlingen, Texas, granted application to move transmitter and studio to Weslaco, Texas, formerly designa¬ ted for hearing; KXA, American Radio Tel. Co., Seattle, Wash., granted regular renewal of license to expire August 1, 1934; former^ set for hearing because KOL, Seattle, applied for its facilities; latter application withdrawn; WWVA , West Virginia Broadcasting Corp. , C.P. to make changes in equipment and increase power, heretofore set for hearing, was dismised at request of applicant; WNBH, New Bedford Broadcasting Co. , modification of license to change frequency heretofore set for hearing, was dismissed at request of applicant; C. G. Phillips and Frank Hill, d/b as Boise Broadcasting Station, C.P. to erect new station, heretofore set for hearing, was dismissed at request of applicants; W8FVI , George Bereza, Grand Rapids, Mich. , application for amateur station license, heretofore set for hearing, was denied as in case of default. XXXXXXXX 12 - V Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Not for Publication # - INDEX TO ISSUE OF MY 8, 1934. Educators Advocate New Deal For Radio In Education . » . . . 2 Radio News Services Get Havas International Report . 5 Johnson To Crack Down On Communications Industry . 5 Bellows Protests Against Radio Act Repeal . 7 New Mackay Direct Radio Circuit To Japan . 9 Dubilier Concerned Over Soviet's Gains . 9 Eddie Dowling Bobs Up As Senatorial Nominee . 10 Secrecy of Shortwave Messages Must Be Kept... . 11 Business Letter Notes . . . 12 American Radio Sets Dominate Brazilian Market . 12 No. 721 May 8, 1934. EDUCATORS ADVOCATE NEW DEAL FOR RADIO IN EDUCATION The keynote of the conference called by the National Committee on Education by Radio in Washington seemed to be "A new deal for radio in education." The present system of support¬ ing radio broadcasts by advertising was criticized by many of the speakers. About 100 educators and others were present at the conference. Father J. B. Harney, Superior General of the Paulist Fathers, operators of Station WLWL in New York, who was to have spoken at the conference was prevented from attending by illness. Father Harney inspired the Wagner-Hatf ield amendment to the Senate Communications Commission Bill which would allocate one-fourth of the present radio facilities to educational, religious, agricultural, farm and other non-profit making institutions. Dr. George F. Zook, U. S. Commissioner of Education presided at the opening session. Jerome Davis of the Yale University Divinity School, and Member of the Executive Committee of the American Sociologi¬ cal Society, said, while recognizing the many fine things which radio has brought to America, "it is the unanimous consensus of all impartial experts that the present radio set-up is defective so f ar as educational and cultural broadcasts are concerned. " He said that Levering Tyson, the Director of the Nation¬ al Advisory Council on Radio in Education, summarizes the unani¬ mous consensus on this matter when he says, in his official report: "If the American radio system continues as it has been going recently with commercialism rampant, nothing can save it." Dr. Davis went on to say that Connecticut State College was not permitted to have a powerful enough station and the interference was so bad in the evening with the commercial stations that their costly programs could not be heard one mile from the station. All evening broadcasts finally had to be discontinued. "If it is impossible to change our present system as radically as the British set-up would involve, several alterna¬ tives are possible", Dr. Davis continued. "It would be possible for the Federal Government to set up a fund to duplicate money advanced by individual states so that each State might, if they desire, have a State-owned station with leased wires to every college in its territory. Commercial or other stations could then tap in to provide wider distribution. 2 T-i re/ A' . 07CAH . . ■ £Xb ■; . . . : _ ; .. . • • • •. •. . ' • ; ) h'i'l ‘ i , : ' . V - ' i : c . noui 5 no : ■ - .. • - i ' • ; 4 ■ . r. -j ■ oxt -a out ■ ' . ... ■ : ' % ' ■ - ; ■: . W. I'i q ; E .... - . ' ; : : ••• T : " ' . . . * r . : cliS flsjtbq-s : ■■ ■■■• : ? ? ; " - : IX . r ; ' ' 'U r " - ' i . . . • - : i ■ c -■iK)-' - r.i/\ y::t'... \ >■ t;. roi ! - . . : . p % -- ; • ' PC ' ■ f ■ ■ 1 - - ; • : ' . '' ' •; J • • . • r • t ‘ * ‘ . . * p ft *rfT . . ■ ■ • ■ ■ S . . ■ . ■ ■ ; ■" -• ■ : ' :v'.“ '■ . - • : 'Vi>' : ; ' . v .. . ‘ 4. ai p.* i . . . . vu' ii . • ■ ' ; ; iij ' , - ■ ■ . '' . ! ,■ ••• ■ . • ■ ■ • i " ■ . . ; ; r ' ' " ‘ ■ ^ ' f , * •. .X . • w • r. , : ■ ' : . . . :: ^ ~ -f'v • f ai : • -. .v. ■' ■ ’ ' ■>' ' • ! •: -itn f: -> L L \J. ' / .. .• : • . . • . ... ip . . *• , ■. . v . ■ • -94 . ’■ • : , ' , ■ ■ ' . ' ; • ■■■ ' . ■’ . ■ ' J&y ■ . . • td$:i - ' D i -Vi; '• 4- x , ■ : • ■ ■ : ‘ .... ■ i. • . . i- :C - 4 • e ': :) ;jdi‘ 4 4: ,&tl j-3'.h 4 : , • ; V '' ' 4' , : ... 5/8/34 "A less radical alternative would be to have the U. S. Government tax the amount of time devoted to advertising on the radio. Each advertiser might be permitted to state the name of his company and use four additional words to mention his product without charge. Any additional advertising time up to 30 seconds could be charged for at the rate of 25 per cent of the total paid by the advertiser to the radio broadcasting company. If addi¬ tional time were used, the tax would be proportionately greater. The proceeds of this taxation would go to a National Educational Radio Commission appointed by the President, who would serve without pay. The money would be used not to pay the broadcasting companies, but to pay for educational talent and for the promotion of educational broadcasting in general. At the same time the private broadcasting companies would be required to set aside without charge at least 20 per cent of their time for such educa¬ tional broadcasts. "The control now in power is in effect commercial mono¬ poly, not so much because of unfair treatment of educational interests by the Federal Radio Commission, but simply because the educational interests are not organized to carry on the costly warfare waged by the commercial interest. There is no hope for the small college station in a system where the criteria for fair¬ ness evolve from commercial competition. What hope is there for educational broadcasting so long as the phrase 'public interest' is interpreted as commercial interest, convenience, and neces¬ sity? The radio must be made to become a genuine cultural force in the future as it has not been in the past." Dr. Thomas E. Benner, Dean, College of Education, Univer¬ sity of Illinois, said since radio is the most effective and the most economical means of providing this needed adult education for the rebuilding of the national culture, it is obvious that there should be reserved, for public use under public control, radio channels sufficiently broad and well chosen to make possible the carrying forward of the program. James A. Moyer, State Director of University Extension, Massachusetts Department of Education, adding that college pro¬ fessors may shine as "brain- trusters" but the part of radio educa¬ tor has not been their star role, said, "on their doorstep may be laid much of the blame for the failure of educational broadcast¬ ing to hold its own with commercial radio entertainment in this country. "Lack of any sense of showmanship, too much 'academic self-consciousness' , too many inferior lecturers and inadequate financial support are the chief reasons why the radio programs of collegiate institutions have reached fewer and fewer loud speakers", Mr. Moyer continued. "Collegiate institutions lost ground steadily by con¬ tinuing to put on programs by inferior artists and lecturers which a discriminating public simply would not listen to. - 3 - 5/8/34 "The time is at hand for constructive efforts towards the development of new educational programs, planned for the gener¬ al public by people who know what the public is interested in, and most important, by individuals who know how to ’put it over.' "The issue resolves itself into a question of whether or not the American public is going to continue to be hoodwinked by commercial radio interests. Education by radio should be the objective of national planning, not the incidental by-product of private enterprise. Only by adequate public control of radio time will this be brought about, " Dr. Joy Elraer Morgan, Chairman of the National Committee on Radio in Education said freedom of thought on the radio was inconsistent with the idea of making profit. Referring to children's programs he said, "I can think of no greater sin than what we have done in exposing our children’s minds to commercialism. "As you go along listening to children on the street, it is not the prayers of the churches you hear them repeating or the lovely songs of the nursery and schools but the songs and recitations of the advertising agencies", Dr. Morgan said. Father M. J. Ahern, of the Jesuit Colleges and High Schools of New England, Weston, Mass. , said there was no censor¬ ship on the freedom of thought on the part of New England sta¬ tions. "The stations in Boston give us everything we ask for without qualification", Father Ahern declared. As to the children's programs, he said he didn't believe even if an attempt were made to purge everything harmful that the child could be helped much without the supervision of parents. He thought the responsibility lay with the mothers and fathers as to what the children should listen to. Father Ahern was asked, if educators were given control of early evening programs if the situation could be improved with regard to children. "I believe it could", the priest replied, "and I believe that the stations would give us the supervision of this time if we ask them for it. " Hector Charles worth, head of the Canadian Broadcasting Commission, explained the Canadian system. The Conference began Monday morning and was scheduled to last two days. X X X X X X X - 4 - 5/8/34 RADIO NEWS SERVICES GET HAVAS INTERNATIONAL REPORT The world-wide news report of L'Agence Havas, corres¬ ponding to the Associated Press in France and one of the greatest foreign news services, is being sold to two independent organiza¬ tions furnishing news to radio stations, the Editor & Publisher learned last week. Camille Lemercier, manager for North America of the French news agency, when questioned in New York last week, said his agency had signed contracts with the Trans-Radio Press Service and the Radio News Service of America. The latter organization recently successfully petitioned the Federal Radio Commission for short-wave radio facilities for the purpose of transmitting news. Both are competitive in principle to the Press-Radio Bureau established by newspapers, news services and broadcasters to settle the controversy over news broadcasting. The Trans-Radio Press Service has been receiving the complete Havas report since April 23. The contract with Radio News Service has not yet become operative. Mr. Lemercier said both contracts were for short terms. He said there was an agreement with the radio organizations that they do not give Havas credit in any form. Each receives the full Havas reports, comprising, according to Mr. Lemercier, some 12, CC_ oabled words a day. The Havas report does not cover events in the United States. The report is received in the United States by short-wave radio from headquarters in Paris. It is received on Press Wireless, Inc. , facilities. Mr. Lemercier said he had not attempted to sell his ser¬ vice to United States papers as yet, although the agency has been supplying its report to the Canadian Press since the middle of March. X X X X X X X JOHNSON TO CRACK DOWN ON COMMUNICATIONS INDUSTRY A bold plan to ’’crack down” on the communications industry and impose the first code ever forced on an industry group was announced Monday (May 7) by Gen. Hugh S. Johnson. The Recovery Administrator made public a proposed telegraph code and called a public hearing for May 16. His action was expected to precipitate a loud outcry from many corporations which maintain leased wires, as well as from three of the com¬ munications ”big four" - American Telephone & Telegraph Co. , Western Union, and Radio Corporation of America. 5 5/8/34 Observers regarded as significant provisions in the tentative rules of fair competition calling for control of rates by the Interstate Commerce Commission. The industry was charged with "abuses inimical to the public interest and contrary to the policy" outlined in the National Industrial Recovery Act. Postal Telegraph-Cable Co. , other member of the "big four", last month petitioned for a code and in public hearings charged Western Union and A. T. & T. with unfair competition. Postal executives protested their company faced extinction unless prevailing conditions were remedied. A decision on the code proposal will be made by Presi¬ dent Roosevelt. Should he ultimately approve it, the companies may seek a Constitutional test in the courts. The code bears the usual standard stipulation that in its present form it merely reflects the proposal of a code for the industry and that none of the provisions are to be regarded as having received the President's approval or that of the National Recovery Administration. Also that every provision in theCode is subject to change and those concerned are asked to come to the hearing May 16 with these changes in mind. One of the Code requirements would ban exclusive tele¬ graph contracts with railroads and hotels. The Code would end unusually low rates for teletype¬ writer service, would require an equitable division of charges for intercompany business, would prohibit telegraph companies from furnishing free facilities, such as call boxes and would restrain any company from offering service below cost or from enter ing exclusive agreement. A 40-hour maximum work week would be established throughout the industry in place of the 48-hour week approved under the substitute President's reemplqyment agreement. It was said if the Code went into effect in its present form, the RCA, because it has fewer employees, would be the least affected, and that the Postal would suffer the most. XXXXXXXXXX - 6 - 5/8/34 BELLOWS PROTESTS AGAINST RADIO ACT REPEAL When hearings of the House Committee on Interstate and Foreign Commerce on the Communications Commission Bill were resum¬ ed this morning (Tuesday), Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters, protested earnestly against any proposal for the repeal of the Radio Act. He urged that Congress confine itself to the intent of President Roosevelt’s message to simply transfer to the new Commission the present authority of the Radio Commission and such authority over communications as the Interstate Commerce Comraissic now has. nWe believe that the intent of the President's message is perfectly clear; that the proposed commission is to take over the present authority of, the authority now lying with, the Radio and Interstate Commerce Commissions for the control of com¬ munications and that additional legislation on the subject is expressly advised to be reserved to the next session of Congress, after the Commission has had an opportunity for investigation and study", Mr. Bellows said. "From our standpoint, the essential feature of the House Bill is that while it necessarily does away with the Federal Radio Commission, it leaves intact the Radio Act of 1927. " "If it is suggested to you that Title III of the Senate bill is really the Radio Act of 1927, with only a few minor changes, we want to urge upon you, from our years of practical experience in radio, that the changes are neither few nor minor; that one of them seems to us to throw into utter confusion the whole legal structure which seven years of work have painstakingly built up; that another establishes a punitive policy chiefly at the expense of the listening public, while a third destroys all hope of reasonable stability in the radio industry. Still another would, in practise, virtually bar all political discussion from the air. But even if the changes proposed were less drastic, we would still contend that this is no time to repeal the Radio Act, that repeal is absolutely unnecessary, that it is contrary to the advice of the President, and that it means the imposition of a serious and needless handicap on the new Commission." Mr. Bellows then called the attention of the Committee to a few suggested changes in the bill "less in any spirit of criticism than in order to offer to you our practical experience in broadcasting to assist you in the drafting of this tremendously important law. " "There is one point which seems to us of vital import¬ ance", Mr. Bellows continued. "This is the confusion which is bound to arise under Section 302 of this Bill because of the failure to adjust the procedure under this section with that pro¬ vided for in Section 16 of the Radio Act of 1927, as amended. Since the Radio Act will remain in force after the enactment of this new legislation, it is essential that the law should clearly - 7 - 5/8/34 set forth what suits may be brought under the provisions of the District Court Jurisdiction Act, as specified in Section 302 of this bill, and what suits fall within the quite different scope of Section 16 of the RadioAct. "Accordingly, we submit the following amendment to Section 302, and urge its adoption for the purpose of eliminating this dangerous conflict between the two laws: IM(a) Except as hereinafter provided in paragraph (b) hereof, suits to enjoin, set aside, annul, suspend, or otherwise review an order of the Commission under this Act, shall be brought in the several Districts Courts of the United States, and the pro¬ visions of the District Court Jurisdiction Act are hereby made applicable to all such suits, and all references in said Act to the Interstate Commerce Commission shall apply to the Commission. The provisions of said Act as to venue of suits to enforce orders of the Interstate Commerce Commission are hereby made applicable to all suits to enforce orders of the Commission made under the provisions of this Act. M,(b) Decisions and orders of the Commission involving radio broadcasting stations or other radio stations which are not common carriers as defined in paragraph (h) of Section 3 hereof, shall be reviewed only by an appeal which may be taken to the Court of Appeals of the District of Columbia in the manner pro¬ vided by Section 16 of the Radio Act of 1927, as amended by Act approved July 1, 1930. ’ "We cite these points to indicate the sort of coopera¬ tion we shall be delighted to give you in the final drafting of this bill if we can be in any w^ay helpful to you. Our principal reason for appearing before you today (Tuesday) is to express our complete accord with the manner in which, so far as radio broad¬ casting is concerned, you are undertaking this difficult and com¬ plex task, and to assure you of our whole-hearted support in your effort to carry out the purpose and intent of the President’s message by establishing this new Commission without destroying or impairing the Radio Act. " The House hearings will probably continue for several days. Senator Dill is still waiting for a chance to bring the Communications Bill up in the Senate and hopes it may be consider¬ ed sometime this week. X X X X X X - 8 - o oaciaivo k;- : life oiiiip J IV, aii - . . i> A x ' . [ ' .... ' . ■ . t ■ aoi ' ■ o .1 j ~ -3 " . - •" ' r-i ilarta ’• ■ • •• :• ■ • ' . . :.l . ; J : , i..; 3 3. i ‘o ' . ; ' ■' • ■ : ' . . j ■■■ - ■; • L:- • ■ - ■ ■ , . . , •' • ' ... ~ - X ' ' fit cs .. . 1 . f.I.S • ' • : ' lOJJi ■: . . : ' ■ . i :C • .... 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" . t j 0 lliw . : : ■ T .... ■ ’ ; . - ■ -o. i i li ' i ' K : ■ ; . ■ ' • o / y/ NEW MACKAY DIRECT RADIO CIRCUIT TO JAPAN Mackay Radio, an affiliate of International Telephone & Telegraph Corporation has concluded an agreement with the Japanese Government, signed on behalf of the Minister of Communications by Naotaro Yamamoto, Director General of Telecommunications, and Takeo lino, Chief of the Foreign Traffic Department of the Depart¬ ment of Communications, which provides for the establishment of a new direct radiotelegraph circuit between the United States and Japan. Additions to the Mackay Radio station at San Francisco are completed and preparations for the new circuit at the Japanese end are under way, according to Ellery W. Stone, Operating Vice- President of Mackay Radio, who expects the circuit to be ready to open within a few months. In Japan the transmitting station for the new Mackay Radio service with America is at Oyama, and the receiving station at Fukuoka, both near Tokyo. Mackay Radio service to China was opened in 1933 as one of the major extensions of a year of widespread expansion for this company which has opened within the past year four new trans¬ oceanic circuits in addition to the eight transoceanic circuits which it operated previously. Within the United States it has recently extended its domestic network by adding Washington, Boston, Chicago and New Orleans to New York and the seven princi¬ pal cities of the Pacific Coast. X X X X X X X DUBILIER CONCERNED OVER SOVIET'S GAINS William Dubilier, radio inventor, returned last week on the White Star liner "Majestic" from a two-months trip abroad, during which he spent ten days in Moscow studying conditions in the Soviet factories. In an interview in the New York Times, he said he had left the country with the conviction that some of the Western nations will have to revise their attitude toward Russia immediately if they hope to compete with her in production. "As a scientist, I am enthusiastic", he said. "As a business man, I would be deeply concerned. Germany and the United States, by lending their engineers, have built an economic Frank¬ enstein with which they will be unable to compete. It is time for other nations to realize what Russia is doing for the working people. It is dangerous to underestimate what they are doing. In ten years other countries will want to copy what she is doing. "The work in the factories is done by groups which have their own committees, and they will not permit any outside inter¬ ference. All the names are marked on a slate and a record kept 9 \ V- . ^ : . . ■ ; . ..... ■, . : • •: oaodqeieT to oSsl £.?.TfcB n.r» ’ : ' . nine? ■ ... . '■ ■ : . . . ■. . . s ■ ■ ■ ■ . •. : : . £ mol ■ v 101 ■ ■ . . ,LT£q£l, r. - • -i- *’*■ • ■ s ra-j ac 1 1 . , M . - o - ■ , ■* ■ • - - I tii ' . nc . sqs*i l Iqsio . . i ■ v: ■ .? . , . t 1 i £ X nf- fa? ... . ■ v X v - .... ; , . . ... a v . ■ . .'V... v-i: ' 1 i . : . i* ; . ■ : • • ' • • .: ; < .. ; V B ‘ X : - ‘ : ’ - I qc I’i:-- * ' •' ;• - J . ” *'?.■*- 'rr- . ,r i ; .. . i t. . _ * i* _ •_v - • • “ y ' ‘ " ■ v v- • ■ J. l.L V uy ■- UiT/: . Bad :> ... j*. ■ anr - § a . . -Cv J • ;■£ O 'X.:fv; ;,.io , oiiio :,o : a J. rJ :. d y S, XSM • ..... - . ' . ' • " : - : .' . .." ■ !. ' ' ' . ’ ■ ‘ ~ : sr." ■ . . ... y '. " ; ” : " ■ ■ M : . '. ' ’ ; , ; . ■ -*J6Xi r ’ iS -■ il . . ~ ‘ - ' • . f f . .■ . d C. [ i r ■■ ' ■/ 3 " .. : • : a . ' ' ' • ' ‘ ' ' ; . . : r 5/8/34 of the amount of what they do each day, the labor being on the piecework basis. A man who does not come up to 70 per cent of efficiency is fired. Those who go up to 120 per cent are rewarded. "It would be a fine thing for the United States Govern¬ ment to send all the Communists to Russia and pay their expenses, as they would return wiser men or not at all. There is a wastage of 50 per cent, but it is a part of the education system. Boys and girls continue their education up till 17 and 20, but their latter years are spent in part-employment, so that when they leave school they have a certain amount of technical efficiency. "They make mistakes and damage efficiency, but they grow out of it and learn", the scientist said. "The youngsters are fired with enthusiasm which I would like to see in the West. " Mr. Dubilier visited Soviet courts and listened to contract and other cases. XXXXXXXX EDDIE DOWLING BOBS UP AS SENATORIAL NOMINEE The following is a special to the New York Times from from Providence, R. I. : "Eddie Dowling, musical comedy star who humiliated the Democratic leaders of Rhode Island last Fall by obtaining the United States Marshal’s job for his brother, William F. Goucher, in the face of opposition from former Senator Gerry and Howard McGrath, Democratic State Chairman, has tossed his hat into the ring for the party’s nomination for United States Senator. "Coupled with revelation of a message from Louis McH. Howe, President Roosevelt’s secretary, to a Federal job seeker, advising that Governor Greene and not Mr. Gerry is the man to whom the President listens on appointments in the State, the Dowling bombshell gave credence to reports that the Gerry star is on the wane. "At the time of the battle over the post of Federal Marshal, Postmaster General Farley was reported to have said that Mr. Dowling could have ’anything he wants.' "Mr. Dowling, whose real name is Nelson Goucher, has not been a registered voter in Rhode Island for several years but en¬ rolled last October at the town hall in Lincoln, his native home, where his family resides." Eddie Dowling was prominently mentioned for a place on the Federal Radio Commission. He was later appointed a Governme.^ member of the Broadcasting Industry Code Authority but "ran out" on this job after attending one meeting. He offered to resign but never formally did so. X X X X X X - 10 - o ^n-9D XOO ■ . . V •; . . ;./ • fc v . J ; i \i C tom . Stt&D t - . OS Ofiw QBOifJ JiO'li 1 @Jt ■ .-V' •: ; , mU xdj' 'KH £ Xi. . ■ K ■ : ■■ ■ - '7-. ■ X » Ai ■ J . tf£S ' ■ : ' , Hit . ; ■ ' r ...... 1 carlo 2 a:'Ut -H < y.:lqni3~d'l,sq j - . ,".. :-str ■--.... ■’. j ’ . . • • r •*> ^ £ X : ■ ■ .'-;i ... ' . / . . , UQllii.4K Jv c . . . -7 N-- £; ' ■ ' ... Y y .. A A ‘ X V y X - : J ' " r V» ■ • -Cl v.’ ' • ;r - *" i *t - l.' ■„ , x .. . , • . / ; . / a ... . q a yx ?'n l,u o ..... V f ' ' • '■ : ; : : • i-jj >• J. \\ i. ft 4 . '• \ 1 .. . V 1 1 isb 89 ' &:> ....... - • . . .. ... . ' ■ ■; - ■' •• IB 2 .' . : ' . ;l : •. , : ■ : .. . [i or ' ' . ; ■ ; ? i ■ ; / . . '. a.! .. \ .. j ■ \ . . mot ■ ' ■ 1 ‘ , - ■ ’ . . 0 j { Siv " . . - ... ' - ’ . ' ; ' \ ‘ ■ UJ . . .... • . ... ‘ . ■. ... ;; • b ...... 3Q ' ■ o 4 ‘ . r . .. . mu . . . - ' ' ' ' . '-J ,i n h ' .... 1. '• ' - ... • \ . . ' . ‘ • . ... . . • • . ' : . ' p 9 die • . :• j V’V .£r ' - 5/8/34 SECRECY OF SHORTWAVE MESSAGES MUST BE KEPT In view of the ever-increasing sales of combination broadcast and shortwave radio receiving sets to the public, the Federal Radio Commission issued a statement calling attention to provisions in the Radio Act regarding the secrecy of certain radio messages and the heavy penalties provided for violations. Section 27 of the Radio Act of 1927 provides: "No person receiving or assisting in receiving any radio com¬ munication shall divulge or publish the contents, substance, pur¬ port, effect, or meaning thereof except through authorized chan¬ nels of transmission or reception to any person other than the addressee, his agent, or attorney, or to a telephone, telegraph, cable, or radio station employed or authorized to forward such radio communication to its destination, or to proper accounting or distributing officers of the various communicating centers over which the radio communication may be passed, or to the master of a ship under whom he is serving, or in response to a subpoena issued by a court of competent jurisdiction, or on demand of other lawful authority; and no person not being authorized by the sender shall intercept any message and divulge or publish the contents, substance, purport, effect, or meaning of such intercepted message to any person; and no person not being entitled thereto shall receive or assist in receiving any radio communication and use the same or any information therein contained for his own benefit or for the benefit of another not entitled thereto; and no person having received such intercepted radio communication or having become acquainted with the contents, substance, purport, effect, or meaning of the same or any part thereof, knowing that such information was so obtained, shall divulge or publish the con¬ tents, substance, purport, effect or meaning of the same or any part thereof, or use the same or any information therein contain¬ ed for his own benefit or for the benefit of another not entitled thereto: Provided, That this section shall not apply to the receiv¬ ing, divulging, publishing, or utilizing the contents of any radio communication broadcasted or transmitted by amateurs or others for the use of the general public or relating to ships in distress. w Heavy penalties are provided in Section 33, of the same act, for violations of its provisions. In order that the public may be fully informed concern¬ ing the protection thrown around private radio messages, the Com¬ mission suggests that each purchaser of a combination broadcast and shortwave receiver be furnished by the salesman with the excerpts of the Radio Act concerning the secrecy of radio mes¬ sages and the penalty for violations. XXXXXXXX 11 - I 5/8/34 BUSINESS LETTER NOTES Tiie Seventeenth Annual Meeting of the American Associa¬ tion of Advertising Agencies will be held at the Mayflower Hotel, Washington, D. C. , May 22 and 23, at which, as usual, a session will be set aside for the discussion of radio advertising. F. P. G-uthrie, District Manager of RCA Communications, in Washington, reports the new RCA land radio telegraph service is coming along nicely and that considerable business is being developed between the National Capital, New York, Chicago and San Francisco. Printed copies of the supplementary Code of Fair Com¬ petition for the Radio Wholesaling Trade are now available at the Government Printing Office in Washington for 5 cents a copy* Experiments in treating diseased teeth with a simple short-wave broadcasting set were disclosed at the annual conven¬ tion of the Pennsylvania State Dental Society by Dr. J. S. Oartel , of Wilkinsburg, Pa. He said experiments have shown that 30 per cent of the germs in diseased teeth may be killed by placing the tooth between sending and receiving plates. Thus far the experiments have been limited to extracted teeth. XXXXXXXX AMERICAN RADIO SETS DOMINATE BRAZILIAN MARKET The dominant position of American radio sets in Brazil is revealed in a report from Assistant Trade Commissioner J. Winsor Ives, Rio de Janeiro. Estimates just completed show that there are at present in operation throughout the country 120,000 receiving sets, of which 70,000 are in the Federal District a.nd 40,000 in Sao Paulo. It is estimated that about 96,000, or 80 per cent, of these radio sets are of American origin, while the remainder are of Dutch, Swedish, German and local manufacture. During the past yer the report points out, there has been a notable increase in import of American sets, and sales of one Swedish set have appreciably increased. Although no specific figures are available, it is believed that the German and Dutch manufacturers lost ground in the Brazilian market during 1933. Less than 1 per cent of the total estimated number of receivers in use are thought to be of domestic manufacture. XXXXXXXX - 12 - . ... »\ 1 : * >r tV v* - • . Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Net for Publication INDEX TO ISSUE OF MAY 11, 1934. Code Authority Asks Johnson To Hold Off For Year . 2 Amendment Would Prevent Broadcasting Station Monopoly... Educators To Present Basic Radio Principles To President Globe Wireless Makes Airmail Radio’s Freight Carrier . 6 Paulist Father In Educational Fight To Finish . 7 Wire Control Bill Assailed By Phone Head . 9 Say Harney Amendment Would Destroy Broadcasting . . . 9 Admiral McNamee New Mackay President . 11 Business Letter Notes... . 12 No. 722 to to 1 May 11, 1934. CODE AUTHORITY ASKS JOHNSON TO HOLD OFF FOR YEAR In a letter addressed to G-en. Hugh S. Johnson by James W. Baldwin, Executive officer of the Code Authority for the Radio Broadcasting Industry, the recommendation is made that no action be taken within a period of one year from the effective date of the Code to change or alter any of the provisions effecting the hours of labor or wages of employees within the Radio Broadcast¬ ing Industry. In support of this Mr. Baldwin writes that a recent survey concerning the technical employees within the Radio Broadcasting Industry discloses: 1. That the employment of broadcast technicians has increased 11. 9%. 2. That the weekly hours of labor for broadcast tech¬ nicians have been reduced 9.8$. 3. That the weekly payrolls for broadcast technicians have increased 21.1$. 4. The true effects of the labor and trade practice provisions contained in the Code of Fair Competition for the Radio Broadcasting Industry cannot be accur¬ ately determined within the period of approximately five months, during which our Code has been effective. 5. Commercial programs which furnish the only revenue to sustain the operating of Radio Broadcasting Stations fluctuates materially. It is a general practice of advertisers to curtail radio advertising during the so-called Summer months which in this case include the months of May to September, inclusive. 6. The Radio Broadcasting Industry today employs a greater number of employees than have been employed at any other period within the life of the Industry. 7. Although the Code Authority does not have specific data available, it is confident that the percentages refer¬ red to in No. 1 above apply with equal force to all classes of employees within the Industry. 8. Any reduction in the hours of labor or any increase in the wages paid, in the opinion of the Code Authority, will oppress and eliminate small Radio Broadcasting Enterprises and promote monopolies. XXXXXXXX - 2 - ,11 v,gM ■ KOSl - . 1 • ... 'f f • ■ ■■ ' ' ' ' -'■■■• • • u \ ■ o ■ 3X to ST3J « .SKI C ' ■ 5 ' " - ' ■ ‘JUrthAf^a * ***- J» ._ . . - -r I X : s ■ ‘ i' • •'- •■ Y, J 3 iJX> il I £ .: i i J -J • •; .3 C : ■ • ' ’ ■ • - Y’ ■ ■ 1 : CT9( J ■ . ■ : • » 'Kr~ * XX X 0 a jl> 3*t o.u SG,; ;sv Yabaoicf iui ‘.“'is. >0 sTucii ^JEafaev: siij ■ 3d ’ . • ■ . . . ■: . . - - X . ■ . .. ‘ . , ■ 1 ■ " effi . . : ■ [i . . 1* ... Si ?j £ Y - \ . ; ■.! ■; : j; '-■■/■' •. .*/:•• ■ ' . ;... 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'• • • ' ' ■' •• y . • • • • ..... 5/11/34 AMENDMENT WOULD PREVENT BROADCASTING STATION MONOPOLY Described by him "as a precautionary measure", Senator Dill, of Washington, introduced the following amendment to the Communications Commission Bill: :iIn granting applications for licenses or renewals of licenses for frequencies to be used for broadcasting, the Commission shall so distribute such licenses that no one licensee or organization of licensees, whether effected by purchase, lease, chain broadcasting or other method, shall be able to monopolize or exercise dominant control over the broadcasting facilities of any community, city or State, or over the country as a whole, and the Commission shall, so far as possible, by its distribution of licenses, provide for broad diversification and free competition in broadcast programs to be presented to radio listeners." "The amendment is more for future protection and simply would give the Commission a chance to break up a monopoly of stations in any one community", Senator Dill said. "For example, if you could imagine such a situation as NBC taking over Columbia and there being only two stations in a town this would give the former group a monopoly and that would be pre¬ vented by the amendment. "I look, for instance, for a great rush in the broad¬ casting of news over the radio. New companies are being formed for this purpose and I believe it is only the beginning. I don't think there should be a monopoly of news broadcast by radio in any one city. No one man or any news crowd should be able to control the news in a city. "I know of a city where there are two principal sta¬ tions. One of them is affiliated with a network and the owners of this station, through a separate corporation, is trying to get hold of the other station which would virtually give them a monopoly. It is this sort of thing the amendment would prevent. " X X X X X X X X EDUCATORS TO PRESENT BASIC RADIO PRINCIPLES TO PRESIDENT Fundamental principles "which should underlie American radio policy" will be presented to President Roosevelt by representatives of tire National Committee on Education by Radio. These principles agreed upon at the conclusion of the two day conference held in Washington by the educators are based upon the following report: 3 5/11/34 "Your committee is commissioned to prepare a statement of what this conference, consisting of representatives of national groups interested in the cultural, non- commercial values of radio broadcasting, believes to be the important fundamental principles which should underlie American radio policy. Your committee under¬ stands its function is not that of the conventional resolutions committee nor yet that of summarizing the reports and recommenda¬ tions of the special group conferences which have already made their individual reports. If many of the recommendations and ideas from the special groups reappear in this report, it is because they present basic principles. "Radio broadcasting, an instantaneous , universal means of communication, reaching literate and illiterate, young and old alike, exerts an inevitable educational influence upon American standards, ideals and actions. This influence is either good or bad. It either improves or debases American standards. Radio broadcasting, this great, new agency, should be so guided and con¬ trolled as to insure to this nation the greatest possible social values. The social welfare of the nation should be the conscious, decisive, primary objective, not merely a possible by-product incidental to the greatest net returns to advertisers and broad¬ casters. "To achieve the greatest general welfare the following principles must be observed: "Listeners' Choice - The wholesome needs and desires of listeners should govern the character, the content and the rela¬ tive extent and frequency of programs broadcasted. Variety suf¬ ficient to satisfy the tastes of all groups of effective size should be provided. Matter detrimental to the welfare of listener groups should be eliminated regardless of commercial profit. The present operation of commercial stations secures neither a genuine expression of listeners’ choice nor an effective fulfillment of that choice. "Minority Voice - Responsible groups, even the minorities, should not be debarred from broadcasting privileges because of their relative size, for radio is but the amplification and exten¬ sion of the individual's free speech and discussion. touth Protected - Positive, wholesome broadcasts for youth at home and in schools should be provided. The impressionable, defenseless minds of children and youth must be protected against insidious and harmful, degenerative influences. "America's Best - The control and support of broadcasting shoulc be such that the best obtainable of culture, of entertainment, of information, of statescraft, shall have place on the air available to all the people. 4 i IJjfOY !S f ,5 - .0 r- = : • ••-'-r.. x"' ■ ;; i . ;. sr \ 0 X a v i ' 1 X fc V X , ... f< • ' ' X . ill; .1. " QCJj' xrj ■ . • , . • - ; : . . . L.t ■ x T ... - ... . 2 . . tii " b md : OJ A .. ’ . c si nc *. • 91 s 3 s;oq r di \ X ; 0 _ i .. ■ fK0! i ' ' do i ' . >6 pr f r/i ' ' • ■-..■J .0 Ynstl : X : "1 Six'" Cl ":I ; iC ‘ VAal acr - ,.ayIq.to/vxiq ■ .. : o- i.' .- i , ' «. . 0 , ' _ .'X ; ' " : ‘ . • X ' ■ . . i ; • ' ; .- . X Sboc* p.i. ... . • '• . .. • . , • ' . - 1 - V -v •? • : x- f . O-i1 3B .: - .. Il-r-i ■ .. . • X j" ■ Y • • v -f ' • -V .L . V. . -**’ v ; ; i# , V ,:.T: • ■ J. . ' ; x ■ r . • ... .1 X.-. ■T 5/11/34 "Controversial Issues - Discussion of live, controversial issues of general public concern should be encouraged for the safe and efficient functioning of a democracy and should not be denied a hearing because offensive to powerful advertisers or other groups. "If a universal means of communication is to be used fcr general social welfare, it must be controlled by the people's agency which is government. A private organization is incapable of exercising adequate control. This need not imply full govern¬ ment ownership or operation nor should it preclude governmental units owning and operating stations. Neither must offensive censorship necessarily follow any more than it does in the post office or the telegraph today. Government must be the umpire. "If these objectives for a national broadcasting pro¬ gram are to be realized, adequate support must be provided. The individual listeners whose investment in receiving sets is already 90$ of the total broadcasting capital are deserving of the best possible programs. The Government should cease incurring expense for the protection of channels for the benefit of private monopoly without insuring commendable programs satisfactory to citizen listeners. If general public welfare is to be promoted by radio communication some specific recommendations immediately present themselves. "Impartial Studies - Thorough, adequate and impartial studies should be made of the cultural implications of the broadcasting structure to the end that specific recommendations can be made fc the control of that medium to conserve the greatest social welfa values. These studies should also include: An appraisal of the actual and potential cultural values of broadcasting; the effect¬ ive means for the protection of the rights of children, of minor¬ ity groups, of amateur radio activities, and of the sovereignty of individual states; the public services rendered by broadcast¬ ing systems of other nations; international relationships in broadcasting. "We recommend to the conference the appointment of a committee to wait upon the President of the United States to urge that the recommendations of the conference be put into effect by the President. " The report was signed by Dr. Arthur G. Crane, Chairman, President of the University of Wyoming; Harold B. McCarty, Secretary, WHA, Wisconsin State Station; James Rorty, writer; Armstrong Perry, National Committee on Education by Radio; Walter E. Myer, Civic Education Service, Washington; Dr. Tracy F. Tyler, National Committee on Education by Radio; Rev. Charles A. Robin¬ son, S. J. , St. Louis University; Dean W. G. Chambers, Pennsyl¬ vania State College; Dr. W. W. Charters, Ohio State University, and Dr. Jerome Davis, Yale University Divinity School. Before the sessions adjourned the conference turned down a suggestion by Dr. Davis that the President appoint a com¬ mission to make a special study of the whole question of radio - 5 - Xsl p Vi .. . • 0 < 37 I 1c i:\lAJ03 13 1) arfi . . Ox:to 0 0 '« _>.i i to 3 Or.T 3 O' .1, * o • g ■ 1 ' C\ ^ r 1 n J3 16 O'/l I'ngio’ O f ; • C- ■ : 2 : 7/IitRIO 80 f- : cr Cat o,Vj' ¥/• ... jLlon-J-. to 1 •; V! 9'XB't .C s 1 0 03 . 0 ~ 2 I cf • r . ,. 2 , fitsnut'isroz j d •. i ■- .; a s ■}& ’ ■ : • . ■2 Cl 00 !■■• ;. 0 f o 'TBX ,i : i • ’ ■ j -. ■ I.o’.oxla >.r.rf . 2 . V.3 •. - J-H9 if! . a r. .. i • - •? ;■ Snict n 0 8 3 .a;.; -J r"t -? w VJ ■ 'f n 2 OCI V>: n, v;o \;i . v ■ .3 •7 3 if- rfasjzi ' n v-r * rri. . VB.bo2 ri ‘ vt\: i: .t&i Cl S 'XOl iio 1, CfO 689X1.2 1 . ' . r ■ . ■ 3 •1 ni e't-Xa 3 2 021 ' ni . - • . rf /. - ; ' - • ■ • Xb nfry/| - ,-»> f- ,f n in c > ■■ v oD riT ' 3 0V‘r . V i t . .- i ' o T nfiBif. r, 'iu 0 02 J - 3 ■' 9 " .• . • | .. n't , S'lmnoo • ' • . 2 ;rt „ J.. ' • '. rJ.U..; Xbt. ... • T ‘ • • .. 22 o ttnoi ij aqe - . - > • ' . •• , . : ■ . ... x :x ; ■■ ■' ; " ■' ; • ■ • • ■ ’ . ■ ; "V :) ' ■ • ' ■ • 3 • • ' .. . ' , " .: .. t. ' ; . . ■■ ; . ' ■* ' • • :- .' '• i ‘ ’’ lor ■ - . . . ' : ■; ' : : V; • is ; ' fi ' : :h r • - h : , pfb ■ ; o ...... , , i? end ii vxjj . i p ■ ■ i . i . tO ttiQ&t ' ■ : " ‘ ‘ ' 4. ' . . . M .J’noi'iooT:'! eifl V-n: -Dtic' ' rr: ■" ... ... V '.iJ - '• - ’ ... p X ti tovi !.. ; ■ ' ’ •' ' . • l-l h. v to • • ■■ :- .1 . i ; ■ . . ■ . o C ' ■ . i 10 .1, ..i ■ . ■ ' ) X ■ jl i : : " ■ V' ’ - o ; . - C-'.-'. ?i; , \f nC-32X! 5/11/34 control. He proposed that 10 prominent educators be named on the committee and 15 members of the House and Senate. Although it was the first conference of its kind ever held, the Committee expressed itself as highly pleased with its success and the representative attendance. There were about 100 educators present from all parts of the United States and as a result of the interest shown in the initial conference, it is believed others will follow. XXXXXXXX GLOBE WIRELESS MAKES AIRMAIL RADIO’S FREIGHT CARRIER A new service known as Radiomail, whereby airmail is combined with radio as "the freight carrier of the communication business" has been inaugurated by Globe Wireless, Ltd., of San Francisco. The sender of the message is simply required to pay a small additional fee on a message which upon receipt in the country is sent from the nearest station to its destination by airmail. As an example, in a message from Manila to Minneapolis, the rate for 24 words from Manila to the Pacific Coast at 13 cents a word is $3.12. To this is added 8 cents, the charge of airmail from the Pacific Coast to Minneapolis. "’Radiomail’ moves messages by wireless over the long haul, pickup and delivery being effected mainly by means of the Post Office", Jack Kaufman, Executive Vice-President of Globe Wireless said. "It passes to the public the benefit of the efficiency of modern shortwave apparatus with the excellence of modern mail service in all its branches. "While primarily to be used in conjunction with airmail, all other services rendered by the Post Office are available. "The new idea in ’Radiomail1 service is to make avail¬ able to our clients the speed of wireless communication over the long trans-oceanic haul. It saves the long delay entailed in waiting for a letter to go across the Pacific, two months thus being saved in one interchange of messages. "It is not our intention to compete with high priced instantaneous contact. As in the freight hauling business, we will bend every effort to move traffic as quickly as possible but no specific time guarantee of delivery can be made." X X X X X X X 6 *: o,t. ■ o sj * . - i : iftB ■ ' h 3 e GO o>x*?. !. • v ' C N . B i3 . • d ■ . ,, . i •• .. . U ■ ■ . ) I - . ■ ' ' ’ U ij ■ ■ ■ • ■ ■ ; $rrob ' . ; : : fa i ’’ • C ; as s-A • ■ > si ' : . • ■ : ■" r " ' • ■■ ' j ' ' j : ; ■ j - : 5/11/34 PAULI ST FATHER IN EDUCATIONAL FIGHT TO FINISH Regardless of whether or not the amendment to the Com¬ munications Commission Bill introduced by Senators Wagner, of New York, and Hatfield, of West Virginia, is rejected, Rev. J. B. Harney, Superior General of the Paulist Fathers, owners of Sta¬ tion WLWL, in New York, who inspired the amendment, declared following a dramatic plea before the House Interstate Commerce Committee that he was in the fight to a finish. The amendment is in three parts, first, that 25$ of all broadcasting facilities be reserved for educational, religious and other groups, which Father Harney described as "human welfare organizations - those who have for their object the betterment of human life and not making profit"; second, that these organi¬ zations be given facilities as desirable as those for purely commercial stations, and, third, that enough broadcasting hours be allocated to educational institutions to enable them to sell time and to become in a fair way self sustaining. "It would surprise me very much if the amendment passed the Senate", Father Harney said, "but whether it is successful in the Senate or not, I can assure you we propose to keep up the fight. Have you noticed the petitions coming in to Congress from religious and educational organizations from all over the country? Well, that is only the beginning." Commenting upon the amendment, Senator Dill, Senate radio leader, said that it was badly drawn. "If it should be adopted, educational and religious stations would lose their identity - they would simply be com¬ mercial stations run by educational people; commercial stations operated by another crowd. As it is, about 2/3 of the commercial stations now are not making any money. " The strength of Father Harney in the House was the fact that about 5 Congressmen were present with him at the hear¬ ing, Representative Rudd, of New York, read into the record the names of approximately 25 Congressmen who, he said, were inter¬ ested in doing what they could in behalf of the priest, and who had hoped to be present. Father Harney testified before the House Committee that the Radio Commission had handled the educational agencies "most ignominiously . " He said there were once 105 educational stations in the United States and today only 30. "What has become of the other 75 and why?" the priest asked. "Educational and religious institutions have but 3 percent of the broadcasting facilities while those who exploit them for commercial gain have 97 percent. It is a situation which needs prompt attention. - 7 - 5/11/34 "Anyone who dared come out in the open and condemn the heart of this amendment would make laughing stock of himself. It is as much in favor of the Protestant and the Jews as it is in favor of the Catholics; it is as much in favor of the Masons as it is of the Knights of Columbus; it is as much in favor of educational institutions as religious organizations; as much in favor of the laboring people as the farmers. No agency which contributes to human welfare would be neglected. Nor are the commercial interests left out. They would still have 75 % of all the radio facilities. We are asking Congress to keep one-fourth of the pie while the commercial people are getting fat on the other three-quarters. "Commercial interests are not supposed to have vested rights but they have such a hold on their broadcasting channels that even the Radio Commission can’t take them off, and it is necessary for us to go to Congress to secure effective action. " "If a quarter of the time of WPG-, Atlantic City, were devoted to promoting moral principles would that not be just as good as having a religious station?" Representative Wolverton, Republican, of New Jersey, asked. "No", the priest replied. "It leaves the station the lords and masters of the situation. " "Do you mean to say in such a program as the National Catholic Hour that the speakers are subject to censorship?" Mr. Wolverton asked. "Father Gillis speaks on the Catholic Hour and has told me of one subject after another which should be brought to the American people but said he couldn't talk on any of those things over the radio," the Paulist replied. "I know more about moral principles than the whole Columbia Broadcasting System, and I don't want to hand my speeches over to them and to William Paley to change this and that. " Father Harney said that WLWL costs about $40,000 a year to operate and that because they are only on the air about 15 hours a week (as against WPG, with which the station shares time, 110-| hours) their advertising revenue doesn't amount to $300 a year The House Committee didn't seem especially friendly to Father Harney. He was frequently interrupted and was abruptly cut off at the closing hour, so that the Committee might hold an execu¬ tive session. The priest had not finished his testimony but apparently decided to call it a day and returned to New York. X X X X X X X - 8 - awst. sri? A '.r Silo 3 £ ' \ ' ; . ■lX.Qib: d’» Oil.: Ip TEOvS'l fli. 8oX‘-wn>I r :i:r to a i ,> i v •:■ b ctox ; . •’> .• •: ' ;■ ■ ."v MO 'lOV/Ai »./ ‘ • yyf ' a - . s 0 .■ ■ i : . ioc ■ . $W - , ■■ • S ' ■ 9 . c • ■; 131 " ■ ■ ••• • M-iM j B '1 1 1! ■ ' ' : ' . ■ rr -V A I' o C ■ I"'; ■■■ •• . . . ; - . : ,4 3 ’ • * . • , • : ■ ■ .. ' ' 1 o a ■ , T.'-Iirod l 3 . . • Co rLf J . ■ ■ 5/11/34 WIRE CONTROL BILL ASSAILED BY PHONE HEAD The telephone business is now adequately regulated and the Rayburn Communications Bill is an attempt to set up a regime of public management over private property, Walter S. Gifford, President of the American Telephone & Telegraph Co. told the House Interstate Commerce Committee on Thursday (May 10). Mr. Gifford said that he had no objection to a regula¬ tion of rates and services, but said he thought the Communications Bill permits Government regimentation of the A. T. & T. and would seriously interfere with private management. "Federal control will wreck the telephone industry", Gifford told the Committee. "Present decentralized and adaptable operation would be transferred into rigid, centralized bureau¬ cratic operation. This would devitalize the very principles of management which have been responsible for progress of telephony in this country." He defended his own salary of $260, 000 on which he said he pays $103,000 income tax, on the ground that there must be adequate reward and incentive for ability in such a large organi¬ zation. R. 3. White, President of the Western Union, followed Mr. Gifford. Previously G. M-P. Murphy, Chairman of the Cable & Radio Users' Protective Association asserted that R.C.A. Com¬ munications, Inc. , Commercial Cables Company, Western Union Telegraph Company and the French Cable Company, together control service and have "exercised their powers to raise rates to an extraordinary extent. " The hearings will be resumed Tuesday morning (May 15). XXXXXXXX SAY HARNEY AMENDMENT WOULD DESTROY BROADCASTING Following the appearance of Rev. J. B. Harney, Superior General of the Paulist Fathers, the National Association of Broad¬ casters addressed a statement to the House Interstate Commerce Committee declaring that the Harney amendment would cause the destruction of the American broadcasting system. Copies of the statement are being rushed to broadcasters all over the United States in the hope that they may be of assistance in blocking the proposed amendment. Both H.A. Bellows, Chairman of the Broadcasters' Legislative Committee and Phil Loucks, Executive Director, have expressed the opinion that the amendment will probably be beaten. 9 i'.-tlB OSbI U c,tzJ:g6'x b 'if r. M' rxfak’bx j i ■ $ j , ; 3 .. ; . tsii r ..: - • 3 : tH 3 1 ' ... , ' raj ■ . ■ ' • •' .. - , u-:f El • . . I J ■ XJ - . • ■ I ■ ■ l : ■ ■ XXJ ■ \ jsnsro . '. j. "-''I /! ' .' : j mosiq . ■ - . . r ttrie j , /. k '• : : . :. ' I ’ I : Hi " , - ; ■ •• . if \ i*di : " • •; .. : ; ... *' ' . . k e ■ . . . . .. . 1 ; ' v “ bs A > j incrilfi sr.l ... . . ■ - }: . • c!J ■ ; ■ ‘ • ■ • ; ; f ! ■■ . M Xi ■■ t ntitqp; ■ " \ y ■ '■ iX£ l ■ ; . • •... ■ : ' : ' ‘ >v . . V' - • • ;r • - ■ MX ,:MM YXXAH YA. r M . xO >nn •• < , m orfi • I wol left ■ w ■ . . _ . ■ ;• . .• ■ : v" ■ ' ; .. ■■ . t . . : • ■; • • JX'; ; ' ' ' . . . • , ■ ; . • • ; ' . ' a : .. •• . ,. s .% . i . ■■ p. - . ; r . •• . : & ii . . ; -• ■' ' * , • : ,V: ' ' • ' • - - ■ . ■ '■ L- : . 'A.'.’- . y • ^ v 5/11/34 Nevertheless they are evidently taking no chances and have sent an S.O.S. to every member of their organization. "The proponents of the Harney amendment, in suggesting that a complete new allocation be made inninety days, evidently have no conception of the enormous task involved", the Broad¬ casters said, addressing the House Committee. "The mere mechanical mapping out of such a reallocation would require months of inten¬ sive work by a corps of experts, and that would be only the begin¬ ning. Every existing license is, by the amendment, declared void in ninety days, and this without giving the licensee any right to a hearing, for if the Commission were to hold hearings every day, it would require at least two years to get through the list of the present licensees. " "It was stated before your Committee that no one had dared, or would dare, to oppose the basic principle of this amend¬ ment, the principle that a considerable proportion of all broad¬ casting facilities should be allocated to certain organizations. "The National Association of Broadcasters, without quali¬ fication, does oppose this principle of allocation. It maintains that the sole test of fitness for a broadcasting license is ser¬ vice to the public as a whole, as distinguished from service to any particular class, group or denomination." "It was alleged before you that the special allocation of broadcasting facilities to particular groups or denominations is necessary to protect the right of free speech. "The National Association of Broadcasters maintains that the exact opposite is the case, and that such a system of special allocation would, in fact, deprive millions of people of the right either to utter or to hear free speech. In the field of religion alone, it is obvious that an assignment to religious organiza¬ tions of twenty-five or even fifty per cent of the total facili¬ ties would by no means take care of every one. Suppose that religious organizations were assigned ten ’cleared* channels. There are three or four times that many religious denominations or groups of national scope, many of which would inevitably be shut out in the race for broadcasting facilities of their own. Would the Methodist, the Christian Scientist, the Jew, be invited to make free use of the facilities controlled by another denomina¬ tion, as today they are all invited to use the facilities of the general-service broadcasting stations? There would be freedom of speech only for those groups lucky, rich or influential enough to secure all the available allocations; for the rest there would be no freedom at all." "These stations which would thus be sacrificed are the pioneers, the stations which, after the first years of experi¬ mental development and the harrassing years of the depression, have just begun to look forward with reasonable hope. It is their investment, not alone of capital, but of effort, which this 10 or; . il.3l t J.'.: . o ^JV9 OS .8.0 8 - r , in n'j ' .zb sir. lovo . J.;: , , j , £3 " ■ v. • • . ■ 16 a£> . - m&\ o .j V'- .. . 82 ■ .. . rfi C '■ o.b ''{I'jV'j 2 ’x ,s yi; mJLoxI . • ■ • •• . . . '■ :■ .. . ' ' ' - • , fc fr , ■ - . ... ■ V- ~ i’ ' ■ . ' s ... I ... .. , ; -v ... ' i ' ;■ ' !- . . ‘£0 , ■: ' /: ‘ ” ■ ' ' i l . . t ‘ ' ~ iohtf " '■ ' i J; i?3m ’o- i ; : •• i ‘ * .• , •• ‘ - ■’* j i ; *• * v'^ ■■ '■ . • 1 • * ■) '• ... ;* : :v ■■ '■ ■ . - . . : ....... , ■/ ;; “ : v, ' ■■■ .: v ' £- • 'i. ‘ . ' ''' ’ . 5/11/34 amendment would sweep away. The mere knowledge that all licenses were to be cancelled would of itself mean the immediate loss of a large volume of current business, with hundreds of men and women thereby thrown out of work. "And what of the listening public, with its eighteen million radio-equipped homes? Would the drastic reduction or complete loss of service from the stations to which it now listens be compensated for by the expectation that some day there would be other stations built to take their places? This amendment appar¬ ently disregards utterly the rights of the public. In order that one particular church station may secure more time, it would sacrifice the rights of sixty or seventy million radio listeners, who in ninety days, would find every station to which they had been become accustomed to listen either crippled or silenced." X X X X X X X ADMIRAL McNAMEE NEW MACKAY PRESIDENT Clarence H. Mackay, President of the Mackay Radio and Telegraph Company will become Chairman of the Board on July 1 next. Rear Admiral Luke McNamee, upon retirement from the Navy on the same date, will become President of the Company. Admiral McNamee is at present of the Naval War College at Newport, R. I. He graduated from the United States Naval Adademy in 1892. He served in the Spanish- American War on the "U.S.S. Princeton" and during the World War on the staffs of Admiral Caperton, Admiral Benson and Admiral Sims. He was a member of the Naval Advisory Staff to the American Commission to Negotiate Peace in Paris, December, 1918 to August, 1919; and Director of Naval Intelligence, 1921-23; he was U. S. Naval Attache, American Embassy, London, 1924-25; Commander of the Destroyer Squadrons, Battle Fleet, 1926-27; and was Director of Fleet Training, Navy Department, 1928-30. In 1931, Admiral McNamee was appointed Vice-Admiral in Command of Battleships, and in 1932 appointed to the full rank of Admiral in Command of the Battle Force where he served until appointed to his present position. X X X X X X X 11 - 5/11/34 BUSINESS LETTER NOTES The rise of $6,433,109, or 9.5 per cent, in gross earn¬ ings of the International Telephone and Telegraph Corporation and subsidiaries in 1933 over 1932 was due principally to an improvement of $4,654,870 in operating revenues of telephone and radio telephone companies, Sosthenes Behn, President, says in his report. Gross revenues for 1933 were $73,959,948, and telephone and radio telephone revenues, $26,759,893. Net income from the telephone and radio telephone opera¬ tions of the system was $4,706,289, compared with $3,227,923 in 1932. Heralded as a successor to ”100,000,000 Guinea Pigs” is a book on advertising, "Our Master's Voice" by John Rorty, pub¬ lished by John Day, 386 - 4th Avenue, New York (Price $2.50). A chapter devoted to radio advertising is headed, "Rule by Radio. " The District of Columbia Court of Appeals dismissed at his own request the appeal of Herman Radner, who had been denied a permit to build a new station at Lansing, Mich. Neither would the Court reconsider its action in the cases of KSEI, Pocatello, Idaho, and WLBW, Erie, Pa. The National Recovery Administration has indicated that it does not intend through the proposed telegraph code, the public hearing of which is set for next Wednesday, to affect present relationship and rates between the telegraph companies and the press. Those who feel that such' relationships would be affected were urged to file protests with the NRA. The statement invited protests by letter or otherwise, "if it is felt that a,ny provisions in the proposed code interfere with present relationships existing between the telegraph communi¬ cation companies and the press." The Federal Radio Commission has held no meetings since it moved to its new quarters and so there have been no decisions, therefore, available to be carried in the last two issues of the Heinl Radio Business Letter. X X X X X X X - 12 - . . y n ....I'- • LuV > : .-V\ , ' f rk . ; !. '-x «,:■ . - ■ . >) • ■ V .. V. ■ : ... . ’ • . 'vx 1 r* 3 i \ - :j.i • 4 j .nfrf.s? . • • . • ■ : £;• '..V V ■ • ' : : ...V ;■ ... ; . jo&TtJ-l -d . ‘ . ■' ! x t 3 a t rfoi ( 1:o 3rd . . :■ ' " ; ;• / : ,i.. : . . •. • ' j ... .. .' V . ' • ‘ .. v; . ■ P- ’ r~ \ "• x: \ • , i r • \ r* ?• ■ Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL - Not for Publication ; i INDEX TO ISSUE OF MY 15, 1934. New Radio Commission Quarters Prove Confusing Maze . 2 Charges White House Influences Radio Control . 4 March Broadcast Advertising Picks Up . 6 Cincinnati Next NAB Convention City.. . V Code Authority For Radio Wholesalers Named . 7 Advisory Copyright Committee Appointed . 7 Business Letter Notes . 8 Telegraph Code Meeting Wednesday Promises Fireworks . 9 Shanghai Contemplates Public Receiving Sets . 10 Decisions Of The Federal Radio Commission . . . 11 No. 723 BULLETIN THE COMMUNICATIONS COMMISSION BILL INTRODUCED BY SENATOR DILL, OF WASHINGTON, WAS PASSED BY THE SENATE LATE THIS (TUESDAY) AFTERNOON WITHOUT A RECORD VOTE. THE BILL WAS UNDER DISCUSSION ABOUT FIVE HOURS AND NOW GOES TO THE HOUSE FOR ITS CONSIDERATION. THE AMENDMENT INTRODUCED 3Y SENATORS WAGNER, OF NEW YORK!, AND HATFIELD, OF WEST VIRGINIA, WAS DEFEATED BY A VOTE OF 42 TO 23, THIS AMENDMENT WAS SUGGESTED BY REV. J. B. HARNEY, SUPERIOR GENERA" OF THE PAULI ST FATHERS AND WOULD HAVE GIVEN ONE- QUARTER OF ALL RADx FACILITIES TO RELIGIOUS, EDUCATIONAL AND OTHER INSTITUTIONS. THE SPEED WITH WHICH THE COMMUNICATIONS BILL PASSED THE SENATE LEADS TO THE PREDICTION THAT THIS LEGISLATION HAS A GOOD CHANCE OF BECOMING A LAW BEFORE CONGRESS ADJOURNS. May 15, 1934. NEW RADIO COMMISSION QUARTERS PROVE CONFUSING MAZE Broadcasters who come to Washington on business to the Federal Radio Commission are apt to be in for a perplexing experience in trying to find the Commissioners' new offices in the huge partially completed Post Office Department Building. Due to the fact that no guiding signs have as yet been placed, and furthermore because the building is a semi-circular affair, with diagonal corridors running in all directions like the streets and avenues from a Washington circle, visitors to the Commission have been floundering around the place hopelessly. Nor has this difficulty been confined to outsiders because employees of the Radio Commission, who are quite used to such gigantic structures as the new Commerce Building, have found themselves hopelessly lost and several days were required before they go in and out of the building twice the same way. Friends of Judge E. 0. Sykes declare it took him two hours to find his office the first day, an hour the second day, but that now he is getting so he can find it with slight delay providing he always goes in the same entrance. Adding to the confusion of the labyrinth of corridors is the fact that the offices of the Commission are on two floors. Lynne M. Lamm, a veteran correspondent and one thorough familiar with the expanses of the Commerce Building, pronounced the new Post Office Department Building "the darnedest place you ever saw". Mr. Lamm located the Radio Commission quarters with the greatest difficulty his first day there but thought he had solved the problem. The next trip he got lost worse than ever. A man at a desk gave him some directions. Lamm walked and walked and finally came back to the same man. It seems almost a quarter of a mile from the Pennsyl¬ vania Avenue entrance to the Commission offices as one winds around the corridors. "For God's sake, will someone help me find the hearing room", exclaimed Judge Stephen Stone, of Pittsburgh, here on a radio case, after he had roamed about the place about a half an hour. Really it is possible for a person to walk a mile through the confusing network of passages. Not only are offices of the Post Office Department encountered but it is impossible to tell where the offices of the Post Office end and those of the Inter¬ nal Revenue Bureau begin. Apparently no one there ever heard of the Radio Commission. 2 V-' XV ') ■m . '.o:.' ’ > i n i x 5/15/34 Employees of the Radio Commission allowed a half an hour for lunch complain that they are not able to go to Pennsyl¬ vania Avenue and vicinity and get back in time. The cafeteria in the building is reported to be jammed so that it is almost impossible to be served within the required time. So congested is the parking space around the building that Frank Wisner in charge of Press Relations, the first day had to park on 22nd Street and go the rest of the way to the Commission quarters at 12th Street by bus. Mr. Wisner and a number of others were originally assigned office space in rooms intended for dead filing, without windows, depending upon arti¬ ficial light and ventilation. Frank managed to escape to an outside office but the supplies, telephone, and mails and files divisions are still housed in "blind" quarters with the rest of the employees ready to pray for them when the heat comes. When anyone finds the man he is looking for in the new Radio Commission quarters, he is greeted as a traveler from the outside world. Even workmen who have been employed building the structure for a year or so can’t tell you where anything is. This may seem exaggerated but it will be corroborated by broad¬ casters as they drift into Washington. Even when signs indicat¬ ing the direction of room numbers are placed, they will not annihilate the magnificent distances. Those intending to visit the Commission might paste the following room numbers in their hats: Judge E. 0. Sykes - 6205 (sixth floor); Commissioner Thad Brown - 6211; Commissioner Harold Lafount - 6215; Coramissione James Hanley - 6233; Herbert Pettey, Secretary of the Commission - 7115 (7th floor); Dr. C. B. Jolliffe, Chief Engineer - 7233; George B. Porter, General Counsel - 7242; W. D. Terrell, Chief Radio Inspector - 7338; William P. Massey, Chief of License Division - 7213; Frank Wisner in charge of Information and Press Service - 7215. The telephone number of the Radio Commission remains the same - District 1645. A tip to visiting broadcasters is to stop off at the 3rd floor and see the new office of the Postmaster General, now practically completed but as yet unoccupied. The lavishness of the office of Secretary of Commerce Roper was criticized but Farley's office promises to be far more ornate. XXXXXXXXX - 3 - ►A & & Lit . ■. - fcminoO zrX&jsH lo asa^oXqi :■..' tit tqrcioo donul tot titod . . so • a tJ . ■ ■ ■' 6 i i i j-js ci mis , . • ■ si &nJ /. »fl V . ' j ; | . . . . . to Xaa'x . ■ ns so nqs o.’i Vto iB noqn ^niJbntqsX) t tts O j sq.8089 '. > "" *a»u;o' .■(X 'il. *tol snXaCooI al mo-Tl l , B x;f e i D0 5 ;'. 00 ' ' . ** i / ■ X 3 X IQ : , '"'1 . w* V.4 -> '* ' ••:/ i- 5/15/34 CHARGES WHITE HOUSE INFLUENCES RADIO CONTROL The influencing of decisions of the Federal Radio Com¬ mission is charged to the White House by Arthur Sears Henning, Washington correspondent of the Chicago Tribune. "Of all the instances of White House dictation to the Radio Commission, probably the most notorious is that of the Shreveport-New Orleans case", Mr. Henning writes. "In this instance the White House summoned the Acting Chairman of the Commission (Col. Thad H. Brown) and procured his promise to reverse the Commission1 s decision. "If the White House does not hesitate to use its trem¬ endous power to shape the decisions of the quasi- judicial Radio Commission, contend opponents of the pending Communications Bill, it may be expected to dominate the quasi- judicial Commission which this legislation proposed to set up to control the telegraph and telephone systems and radio. "In the manner in which the White House dictated the decision of the Shreveport-New Orleans case, the White House would cause the Communications Commission to prohibit transmission to newspapers by wire or wireless systems of dispatches critical of the Administration. Thus would a censorship of the press be achieved. " According to Mr. Henning, the Commission in executive session voted full time to Station WWL, operated by Loyola Catholic University at New Orleans, which would have meant the deletion of Old Man Henderson's station KWKH, at Shreveport, who, when realiz¬ ing he was to be put off the air, had assigned the station to a new corporation. WWL was backed by Senator Huey Long so, the writer declares, the KWKH interests enlisted the aid of Senator Robinson of Arkansas, Democratic leader. Whereupon, Henning relates, Senator Robinson called the White House with the result that Lous M. Howe, President Roose¬ velt's secretary, telephoned Herbert L. Pettey, Secretary of the Commission. Also Howe summoned Col. Thad Brown, Acting Chairman, to the White House. "Mr. Howe painted a distressful picture of what would happen if Shreveport were taken off the air", Mr. Henning con¬ tinues. "The New Orleans station, which Mr. Howe said was under the thumb of Huey Long, would pour forth a stream of propaganda designed to injure Senator Robinson, whom Long bitterly hates. "Acting Chairman Brown is said to have assured Mr. Howe that he for one would be willing to change his vote to accommodate the White House but he pointed out that the decision had been unanimous and that it would be necessary to change three votes. Later Mr. Brown and two other members of the Commission changed their votes, the application of the New Orleans station for full time was denied and the Shreveport station was left on the air. " - 4 - 5/15/34 The influencing of decisions of the Radio Commission by the political lav/yers is so notorious as to have loosed a flood of gossip the Chicago Tribune writer alleges, adding: "Although the Radio Commission is supposedly a quasi¬ judicial body, many applicants for privileges, whether legitimate or illegitimate, have found themselves butting their heads against a stone wall until they hired one of the lawyers reputed to have the 'inside track' at the Commission. Tips on the lawyers to be employed for the most favorable results are procurable at the Commission itself. - "A Communications Commission as proposed in the pending bill with its power of life and death over wire and wireless systems and the telegraphic news of the press, would be a bonanza for the political lawyers, if one may judge from their operations in and about the Radio Commission. "They have garnered rich pickings at the Radio Commis¬ sion, pickings that are small change, however, compared with the fees which might logically be exacted if the infinitely greater investment in the telegraph and telephone systems and the press for protection of rights threatened by governmental regulation, experimentation, censorship, and persecution were involved." Arthur Mullen, floor manager for Roosevelt at Chicago, and Robert Jackson were referred to as having large Radio Com¬ mission practices. "Both were forced off the Democratic National Committee by the President's declaration that he considered it improper for national Committeemen to be accepting retainers from clients on the assumption that the Committeemen had access to the back door of the Administration", Mr. Henning went on. "Commissioner James H. Hanley owes his appointment to the Radio Commission to Mullen, with whom he was associated in law practice. Elmer Pratt, former Chief Examiner of the Commission, now a radio specialist, handles all the radio business for the clients of Mr. Mullen. " Following this the writer tells of a case of a station in Peoria, WMBD, having lost the first round of a fight with a station at Quincy, Ill., hiring Pratt. "The appearance of Mr. Pratt in the case generally was supposed to indicate that the powerful Mr. Mullen had been retain¬ ed", Mr. Henning concluded. "After the second hearing of the case, Mr. Mullen's appointee, Commissioner Hanley, changed his vote and swung the decision in favor of Peoria. " , The Henning articles appeared in the Chicago Tribune on May 7 and 9. - Q - XXXXXXXX 5 5/15/34 MARCH BROADCAST ADVERTISING- PICKS UP Broadcast advertising in March showed marked gains over the preceding month, official reports of the National Associa tion of Broadcasters show, and presented the most encouraging picture exhibited by the industry since the peak period of 1931-32 Gross sales of time amounted to $7,020,744, a gain of 11.8$ over February. National network volume was 32.7/ greater than in March 1933, practically equalled April 1932 time sales and was materially exceeded only by March of that year. Non-network volume rose 28.2/ as compared with the previous month and was higher than any time since the Statistical Service was established Stations of more than five kilowatts in power exper¬ ienced important gains in non-network volume, as did those in the 100 watt class. Marked increases in business occurred in the New England-Middle Atlantic Area, all sections of the country showing gains as compared with the previous month. Live talent volume rose appreciably, national spot business of this type increasing 48/ during the month. Electrical transcription and spot announcement volume also rose materially. Practically all industrial groups using radio advertis¬ ing showed important increases during the month. Clothing advertising rose 43.1/ as compared with February, due principally to local sponsorship. Marked gains were recorded in national net¬ work and national spot food advertising. TOTAL BROADCAST ADVERTISING VOLUME 1934 Gross Receipts Class of Business February March National networks Regional networks Individual stations $3,585,270.00 54,932.00 2,303, 618.00 $4,000, 698.00 66,516.00 2,953,530.00 Total $5,943,820.00 $7,020,744.00 National network time sales during March rose 11.5/ as compared with February, being exceeded materially by but one month, namely, March, 1932. Marked gains were experienced in the non-network field, advertising volume of this type mounting to 10.9/ above the peak month of November, 1933. The current month's non-network volume was 28.2/ greater than in February. Regional network time sales increased 21.1/ as compared with the previous month, but still were considerably short of the December high point. X X X X X X X 6 r ■* . ■ . . • £m ■ ■ \7.': :.■/•'■/ 1 f ' ‘|l iai?i-3' 'iq «tl$ isv o ' • . ■ . 3 . t - - nsbi %d r . \ ■ . i ■ . . ■ ■ .. L* . . : 1 i.O'X , • . n- • .. . ■ ' ' . • '■ ■ l ■ . ■ i- I ■ E -o - ' . ■■ , J7>1'7. omiX Xn* nes&t 'Xdifc . q . . o tit &SS ■ . . to . : ' , ■ ■ ■ i . sis : dv ' a 3C • sr - d ■ > ■ ■ - - C% tnuo . • a art o ; • . . . . ol a&S. Jtfeiil Bt&tt . i : ' ' IS ■ ■ V . 38 • ... to aeni if f snoi n - £i ' .• . s ■ .8 8t ' amnm •. ■ i v? n, . :r t o q 1 . • t . b o ; - g n i , -J Xi . • : . , . ^ ,-v r - :r/‘- ,v . , J - . . ■ - : r :: J a: Y Y Y -A , yf . _ A. ' • • • • : - ■ '0 ■ . ri Ulf\: V <:i r. .• > V' j i •' ■ ronnA ■ . .■ ■ V-- •' ; : : + ' 1 ; ' . ' ' ' ' ’ i3 ■' XT hi' . i Jg ... . . ■ ' ■ ■ • : , j . ■ • • • ■ ' ■■ • Ibb XL 1 '• ' ■ t » ; I : -r.sr ■ • . . • * 1 V ' ’ • i?;XXpK!i ■ • : • ’• • ■ : ’ ' ' ’ ' - ■ • '• ■' ; ■ ' . ■ ■ ; ■' . ■" ■■ ' . ■ ■ . ,L '? ; •' ■' •' ■ ■■ ' : • • " ■■ ; : ■ . ' Oii, 5/15/34 •: BUSINESS LETTER NOTES President Roosevelt has written to Robert Underwood Johnson, Secretary of the American Academy of Arts and Letters approving the ratification of the Rome Copyright Treaty now being considered by the Senate. "Needless to say", the President wrote, "I fully concur in your sentiments and assure you that it would be most pleasing to me if, early in' my administration, I should be empowered to make the United States a party to this convention. 11 Charles Thomas, general manager of the London (Ont.) Free Press was elected President of the Canadian Newspaper Radio Association, a newly formed organization of newspaper owners of radio stations. Other officers named were Howard P. Robinson, St. John (N.B.) Tele graph- Journal , Vice-President; Philip H. Morris, London Free Press , Secretary- Treasurer. There was an increase of 5.7 per cent in radio factory employees in March, 1934. Collections of the 5 per cent tax on radios and phono¬ graphs for March, 1934, were $268,136.45, an increase of 79 per cent over March, 1933. The collections on mechanical refrigerators during March. 1934, totaled $295,307.92, as against $125,340.70 in March, 1933. Donald Mackenzie, 35 years old, Eastern representative of several radio manufacturing companies, died in Brooklyn last Saturday. Mr. Mackenzie was a son of the late Augustus Mackenzie, an insurance broker, who left an estate of more than $1,000,000. His second wife, Mrs. Ethel Mackenzie, was cut off in the will, and to the children of her marriage, Donald and Dorothy Mackenzie, he left $1,000 each. Mrs. Mackenzie has filed objections to the will. Word comes that Paul W. Morency, of Station WTIC, is convalescing. For the information of those who want to write to Paul, his address is 1 Kingswood Road, West Hartford, Conn. - 8 - I i 4 * i. p * - - . 'jctzn?' 6 :• ' ,■> ; ber'i -.f un.o - L j < w vsa d : ...- . a ■ . Oit 8 i3 > •■'bVin a $ ... ... i •'/t z . ■ • ;r, ; -£Q, . ■■ ...... ; . . ' w . - • ' - ■ •' '• -V- - " ■ •. * ■ S -i .■ . . . .. ' ... . • \ *ci *ia / nxiot .xj'iuo.sadif 1 • . . . - ■. ■ ■ • 1 r'sa 3 i ? tv'-jui Knxo ■■-■..Ao \t { - i ■ % • ' . : I SI C 1 ■ ■ j ■ • Iv:; r )f : .43 ‘I • . ■ ■:-J c •' •' •[•••• / ; • ....<« , .. ■ ■ ; £ ... :i ■: 4xi . Iifsci 5/15/34 Emily Holt, a New York attorney representing the Actors' Equity Association, has been appointed a labor representa tive on the Broadcasting Industry Code Authority. She has sug¬ gested numerous changes in the questionnaire to be sent to all radio stations about radio talent. It will be sent out within the next two weeks. It is believed by the National Association of Broad¬ casters that stations generally will cooperate with the special board of investigation of the Federal Trade Commission by comply¬ ing with its request for copies of advertising announcements and thereby make unnecessary the work of monitoring stations. The survey is not a campaign against radio, it is explained, the Trade Commission simply decided to include radio in its routine investigation of all advertising in the future. XXXXXXXX TELEGRAPH CODE MEETING WEDNESDAY PROMISES FIREWORKS Although Gen. Hugh Johnson denies that he intends to crack down in imposing his Telegraph Code, there is plenty of assurance that the Code hearing set for Wednesday afternoon (May 16) will be a spirited one. The Western Union openly charges the Postal with having inspired the Code regulations and the two sides are lining up for the fray. R. B. White, President of the Western Union, testifying before the House Interstate Commerce Committee assailed the National Recovery Administration' s move to regulate the tele¬ graph industry by code, a step favored by his competitor. He urged that a new Commission be created to have exclusive juris¬ diction over communication systems, alleging that Postal Tele¬ graph had provided a basis for the proposed code. Opposing the House (Rayburn) Communications Bill, Sosthenes Behn, President of the International Telephone & Tele¬ graph Company, however, added: "The companies which I represent are in favor of the enactment of legislation providing for the transfer to a new Com¬ mission of the existing powrers of Government over communications and a mandate to that new Commission to make a complete study of the problems involved upon which to base recommendations to the next session of Congress for additional legislation. " General Johnson said that the proposed code will not affect newspaper leased 'wires. X X X X X X X 9 5-nC: ' . . . , . L£ffl3 i ■ X ... : i . : ' ■ ■ l f to : . . t fC fa , XX it - 8 . - • 0 . •••’, Mssw ow$ f >:sn s&$ • ' - t ■ i&i : ■ - •- t ■ • X X. X X Z X X . - >~ T V.V ■ ' . X .•••■• x '■ A; ; :rl . : X " •; . X : ■ j . , 1 'X- ■ -?XX 'X. < ; o X \ t'O x Y.:X . ■ • . - ?.vni ■ . ; lQ- ■ ' J.1 Hay: otoo X ' oqo*K\ :-,X p: ■. ; . ■■ .• j. v "■ x.y- yX ' " ' ■ . . 5/15/34 SHANGHAI CONTEMPLATES PUBLIC RECEIVING SETS Radio is making consistent progress in Shanghai, accord¬ ing to Assistant Commercial Attache A. Bland Calder. Broadcasting conditions in the Shanghai area, he points out, are much improved over what they were a year ago; there is very little interference and transmitting stations can keep to their own wave lengths satisfactorily. Advertising by radio is steadily increasing and rates are rising. The demand for radio receiving sets in Shanghai, Calder states, is chiefly for the small or midget types, with diminishing sales of the console models. American radios predominate, with Gemran distributors now putting on a more intensive advertising campaign to promote sales. Plans are under consideration to install a small broad¬ casting station at or near the Civic Center of Shanghai, China's most populous city, with receiving sets in public places for the enlightenment and entertainment of the laboring and farming classes now embraced within the citylimits of Greater Shanghai. Efforts are being made to register all receiving sets in Shanghai for the purpose of determining the number of sets in use, their location, type, and certain other details so that policies may be developed as to location of broadcasting stations, type of broadcasting equipment and like matters. So far, however, only 3000 receiving set owners have registered, although there are probably no less than 50,000 sets in use in Shanghai and the immediate vicinity. Imports of radio sets and parts into China during the two months January and February of the current year were valued at 287,936 gold units as compared with 221,391 gold units in the corresponding period of 1933. The approximate average value of the Customs gold unit in terms of U. S. currency for the first two months of 1934 was 65.8 cents as compared with 40 cents in the corresponding period of 1933 before the devaluation of the U. S. dollar. XXXXXXXX 10 - ■ : . ■ ' fi I I . ■ lA l V. - ■ . -/ 0 9 ■ 0 ? tOQ -a ■ ' ■ • ■ . •- ■ • ■ tJUjiy ■, . ■ _ . ■■ ' •- .. : ' v. . : _ ... , . 4‘uiX-eirs o-xo ■J's-'x . • - - .. • • ' j : ; 9* j • fa . ; - . . - . ■. •- • * ' . ;■ . . f ' ■ | • , ; Fj. = C0 ■ ■■ ■ ' ■■ r. s ■ ’ ' V. . . • ■ ■ ■ ; • i . . . ' • o : . ' L . :>-• -v a© j 'dq ... f .. • • 4-. J ■ , ■ ■ Of -. ■ ■ v -.1 ..... . . . ■ -v.- "■ „ •' - ' ; . '••••' ' l . ' .. ' . ,.55.61 <• , ' '• ■ O 5/15/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (May 11, 1934) KRKD, FiresideBroadcasting Co., Los Angeles, Cal., consent to voluntary assignment of license to Radio Broadcasters, Inc.; WLBF, WLBF Broadcasting Co., Kansas City, Mo., C.P. to install new transmitter; WJDX , Lamar Life Insurance Co. , Jackson, Miss. , extension of special temporary authority to operate with 250 watts power for period beginning May 11 and ending not later than May 15, 1934; KPCB , Queen City Broadcasting Co. , Seattle, Wash. , special experimental authority to change frequency from 650 to 710 kc. ; WKBO , Keystone Broadcasting Corp. , Harrisburg, Pa. C.P. to move transmitter and studio locally, and make changes in equipment; KBTM, Beard's Temple of Music, Jonesboro, Ark., modification of C.P. to extend completion date from May 2 to July 15, 1934; KSOO , Sioux Falls Broadcast Assn. , Inc. , Sioux Falls, South Dakota, license covering move of transmitter locally and making changes in equipment 1110 kc. , 2-g- KW, limited time; KOHL, Northwestern Auto Supply Co., Inc. , Billings, Mont., special experimental authority to make changes in equipment and change frequency from 950 to 780 kc. ; WAAT, Bremer Broadcasting Corp. , Jersey City, N. J. , temporary license to operate on 940 kc. , 500 watts, daytime, pending outcome of hearing on application for renewal of license. Also, WP J » Press Wireless, Inc. , Hicksville, N. Y. , modification of license to delete Buenos Aires as primary point and substitute Madrid, Spain; Borough of Deal, N. _ J. , C.P. 30100, 33100, 37100, 40100, 86000-400000, 401000 kc. and above; 20 watts, to communication on experimental basis in police ser¬ vice; Same, Mobile - 2 C.P.s same as above, except power 4.5 watts; City of Modesto, Cal. , C.P. 30100, 33100, 37100, 40100 kc. 15 watts; W9XAU , City of Chicago, Dept, of Police, license, fre¬ quencies 30100, 33100, 40100 kc. , 15 watts; W3XU, City of Philadelphia, Dept, of Public Safety, Mobile, renewal of experi¬ mental special experimental license 2474 kc. , 25 watts; City of Bethlehem, Pa. C.P. 30100, 33100, 37100, 40100, 86000-400000, 40100 kc. and above, 25 watts; Same, Mobile - two C.P.s same as above, except 4.5 watts. Also, D. Reginald Tibbetts, Portable & Mobile, Berkeley, Cal., C.P. 31600, 36600, 38600, 41000 kc. , 1 KW; Ronald G. Martin, Portable & Mobile, San Francisco, C.P. 34600, 35600, 37100, 37600, 38600, 40100, 40600, 41000, 86000-400000, 401000 kc. and above, 15 watts; W10XBU . WIOXBV, Lehigh Valley Railroad Co. , Portable- Mobile, modification of C.P. extending commencement date to May I and completion date to August 1, 1934; WQEH, RCA Communications, Inc., Boston, Mass., modification of C.P. extending completion date from May 16 to August 16, 1934; WQEI , RCA Communications, Inc Chicago, Ill., modification of C.P. to change proposed transmitter location from Chicago to St. John, Ind. , change frequency 5100 to 5180, and extend completion date to August 16; and to operate station with licensed operator at control point in lieu of trans¬ mitter location. 11 - ' a: a A ; : : ' a " : . - • \ . rv r r .vvy - 0 'iS i j b- fboh 003 a ol j6a. - 3 oil to a- Yp..idr:LrIov od dnoanoo J* ■ x. y : • xfc - t:cS ’ ’.AW d;. A ■; . ■ A if- a t • - •' - 4 ' 1- v' A ' J '' 1'T :.l i ■ ,A ,0 • : ..." '30 O id; ; at sj£ - is h MOO- ; ix© ad i: . ; < I d , . - A 3 A Add ' . A, A- A. A A 3 : . . £ ‘ - * - w .. . tJ - .. . a a ,1: ' t eslau .a: ... -X ■ . • - - . - ■ . - " • A' ■ ; . t or ' r A. MX.;.' . * .. f j . ... ■ . . . BV' ' __ ' J&G SO 6 ■- ■ . . : i . ■■■ ■ . ..to sab AH; , A.-.L,*- . . . • • . • : : 3 , _ a ■ ; - ■ . L rt ,€3wCA p . r., .i, . o J 1 t o n o X d b o 1 1 X b c ta - * . ; j . Id. ; : I on 3 ) yg o 30 . • A A .00X0-3 . ,addBw OS .. •. ■ • • V a ■ r . ? V - - - ■ c r i ■ - , ' .A . ; . , o • - ev. •• ■ . ; ; V ■ . ■ V • - • ’ - -;i '.a*. A/p to "i • - A- £ ; AqXaX.a.A Ax Add.Bd a r> - . ’ll- . ■ . 1 . • V . • - i ■ • i i’i’.'-J; f. L *- u .-V- , : a. .... . ♦ ■ ‘ ) *- xic* -i o v. jL^o/vy = . ‘ • :: :j .''v stv.-o do ri.r n ' . ,■ " Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON,©^ C.~ I Ho!?* i\u.\ j;'. s • < jii C.,v he, i Lt*J lieation CONFIDENTIAL — Not for Publication . — . . f"1- MAY 21 1934 ft* f 1 \?<\ 1 1 % % 4, S|o| INDEX TO ISSUE OF MAY 18, 1934. Politics Seen In Selection Of New Commissioners . 2 Federal Trade Commission To Scrutinize Radio Advertising . 3 Educational Amendment Support Proves Weak . 4 Increasing Number Of Radio Listeners In Denmark . 5 Telegraph Industry In Spectacular Code Fight . 6 N.A.B. Convention Changed To September 16. . . . . 7 House Committee Toils To Complete Communications Report . 8 Declares Columbia Has White House Inside Track . 9 Commission Serves Notice On Publisher. . 11 Decisions Of The Federal Radio Commission . 12 No. 724 POLITICS SEEN IN SELECTION OF NSW COMMISSIONERS Whatever chance those technically qualified to serve may have to he appointed to the Communications Commission, it seems certain the new Commission will have on it bigger and better politicians. This will prove true not only of the commissioner- ships but for the rich political plums in the subordinate posi¬ tions such as the secretary (which seems assured to Herbert L. Pettey, present Radio Commission secretary and Farley's fair-haire boy) , the directors of divisions; and so on. One theory advanced is that all the present Commissionei will be transferred to the new Commission and their places filled by others as their terms expire. Another is that Judge Sykes, Democrat, and Commissioner Lafount, Republican, will be retained. Commissioner Hanley, who secured his appointment through Arthur Mullen, Roosevelt's floor manager at Chicago, recently pried loose from the Democratic National Committee, is said to believe they will not try to put the skids under him. In making his only radio appointment, the President sprang a complete surprise in selecting a man whose name had never been mentioned - Representative Prall, of New York. Some think the President is likely to spring more dark horses and that many new faces are apt to be seen on the Commission. If Prall is appointed to the new Commission, he couldn't according to the law, begin serving until January 1st, until his present term in Congress expires. Neither could Senator Dill, who is up for re-election and who has repeatedly denied that he would serve on the Commission. Their coming in January would be pretty late as the Commission is required to submit its recommendations to Congress by February 1st. Dr. W. M. W. Splawn, economist and counsel for the House Interstate Commerce Committee, who in his report recently tried to put a bomb under the A. T. & T. , is talked of as Chairman of the new Commission. Also Judge Ewin L. Davis, of the Federal Trade Commission, who, as a member of Congress, helped frame the Radio Act. He was the author of the Davis Amendment giving equal radio facilities to all parts of the country. Judge Davis, too, had much to do with shaping Secretary Roper's report upon which President Roosevelt' s message calling for a Communications Commis- sion was based. Judge Davis is close to Roper personally, he having offered Davis an Assistant Secretaryship of Commerce which he expected at the time would have under it the Communications Com¬ mission, G-en. Charles McK. Saltzman, former Chairman of the 2 fj . ■ >iea: ; »c ■ " ■ . < . v . n >lrt i ' j V ixrf r T t 'tn ?• I a QZA: .. . vnr • I-.: 0 -••J.SiO O' f: d ! ... la L . ' ' . Ec jdol i . R V* . '. .... . v’ s ■ . - . . j tw ) • ■ ■ ■ .. 0 ■ • ' . . "■ •: ■ . , r, ■ ' ■: r •' ■/. . ■ ■ . . •' ; ■ '■ ' ... : , :■ ... .. 1... ' . . . . • a :: ■ t * J - . . ■ - .■ .. ' 2 Ss . . I . . v'i :-s: ■ ■ : :■ ' . • : " ;• • . .. ; . ; L ■ C-: : ■. . . .. ■ . ' . . : n r . ■■■ ■ ■ r,; ■ ■ ’ r ■> ■ ■ y . ■ . - ■■ v*—- . .. ' - J ... . . ‘ ' V. ....' . " • . :• • ■ '. ...... . • ' ; ' i '!'■••• D' ' J ilJ B B rt.i : : <: ' . ... ..... . /.. ; : . oe ■ . . . V . , • • • : . . • • : ...... . • ' a - ... ... . i ; . . i- j-'.y x ■ i • i ' ; , . - * • . 5/18/34 Radio Commission, likewise who had a part in framing the Roper radio report, has been mentioned as a likely candidate. General Saltzman, through having been head of the Army Signal Corps, knows telephone, cable and telegraph as well as radio. The same is true of Capt. S. C. Hooper, Chief of Naval Communications, whose name has likewise been heard. Captain Hooper knows communications from the ground up, having been a telegraph operator before entering the Naval Academy. Hooper, a Californian, while having a thorough knowledge in telegraph, telephone and cable communication, is frequently referred to as the Navy's best man in radio. The latest name to be mentioned for a Commissionership is that of Oswald F. Schuette, who has charge of copyright matters for the National Broadcasters' Association. Mr. Schuette has been identified with radio for some time, coming into the picture in a fight against the so-called "radio trust". Mr. Schuette is a former Washington correspondent and was President of the National Press Club. These are some of the men technically qualified, but judging by past experience, it is believed politics will play the major part in the appointment and it is believed the politically deserving may fare better than the technically deserving. XXXXXXXXX FEDERAL TRADE COMMISSION TO SCRUTINIZE RADIO ADVERTISING As had been foretold in these columns, radio advertis¬ ing is to be subjected to the scrutiny of the Federal Trade Com¬ mission. "This means simply that the Federal Government will extend to radio advertising the same principle that for many years has been applied to newspaper, periodical, and other forms of advertising, under Section 5 of the Federal Trade Commission Act, which gives the Commission jurisdiction over unfair methods of competition in interstate commerce", the Commission said in its formal announcement. "This the courts have uniformly held to embrace false and misleading advertising. The Federal Trade Com¬ mission has handled thousands of such cases. "Anticipating a fine spirit of cooperation from the radio industry, as already manifested by some of the leading executives, the Commission is approaching the radio field in a spirit of friendly cooperation. Consequently, instead of adopting a plan of monitoring broadcasting programs, the Commission is asking for copies of advertising announcements to be furnished by the networks and broadcasting stations. Pursuant to that plan, the Commission has addressed letters to the broadcasting stations requesting them, beginning July 1 next, to mail weekly copy of commercial continuities, which will be checked to determine whether or not any of them are in violation of the Federal Trade Commissif Act. - 3 - ' -:n-. ■ " : • ’ .. , u • *. :: ■ ■ ■ • ■ • . . .r - * taw %a&JxariQt££dO ■ oiJ' ' : ri nr. .r-s :ryv,^. l ' • ns-te t . r J.. 1. .. ; i c . iH .i.srro 1 o . • „• ■ - •' SM 4 90 I . \ " " - ■ • , i ■ ■ f ■■■ ■ . !■ ■ r • ' •' ■ Vi t :■ "■ ■ v- ■ ■ :i ■ : .; r i- 1 sae/iT ■q. \’:5 ft \ ^.cri .. '■■■' ■■ i - .. . , ' ... ,v • <./'. .. '• : f ■ •' ;■ V: ■ ; : ' : .. ; XY . X. . • t. • ! •• : ' ■ . • fO : : " • : . ' ...■ s 8 ri ' - £ ; .: v 6 £ ■ s ". >' >rij. m p xsc : r - J. • • ' ' ' ' I -r ' - • "l ■ ’ i ' •' • '* •• ' 4 . , • • 1 •. or; ; ' . ' ; '• ; • . . : ;■ - ■ ■ - • •. ; ... X . :A v-.-'o; ■; . > noiaaici i !i i X. ■ 7 - ‘.I’ ■ „ - J ■ ■ 'r' 1’ T . O' •' • ; ' •: 1 J 'l 3 f » ' ■' ’ t ' /■ ' ' . ■ ■ : iVsii i i-iiw : ' ■ • ■ ' ; ■ ' ■ ; ; ■■ ■' 1 . . 5/18/34 "Whenever statements occur in commercial announcements which appear to be false and misleading, or otherwise constitute an unfair method of competition in commerce, notices will be sent both to the advertiser and the radio station broadcasting the advertising, with the view of effecting a stipulation under which the advertiser and the broadcaster agree to cease and desist from the practices complained of. Execution of such a stipula¬ tion would end the case. However, should such compliance not be effected, the case would then proceed through a public hearing, with argument before the Commission, decision by the Commission, and perhaps appeal to the Courts. " X X X X X X EDUCATIONAL AMENDMENT SUPPORT PROVES WEAK A surprise in connection with the passage of the Com¬ munications Commission Bill in the Senate was the weak support given the Wagner-Hatfield amendment. This amendment was based upon the proposition of Rev. J. B. Harney, Superior General of the Paulist Fathers and provided that one-fourth of all radio facil¬ ities be allocated to educational, religious and other non-profit making institutions. It was defeated by a vote of 42 to 23. The Senators voting in favor of it were: Ashurst (D. ), Arizona; Borah (R. ) , Idaho; Copeland (D. ), New York; Cutting (R. ), New Mexico; Duffy, (D. ), Wisconsin; Erickson, (D. ) , Montana; Frazier (R. ) , North Dakota; Hatfield (R. ) , West Virginia; Hebert (R. ), Rhode Island; LaFollette (R. ), Wisconsin; Lewis (D. ), Illinois; Lonergan ( D. ) , Connecticut; McCarran (D. ), Nevada; Metcalf (R. ) , Rhode Island; Norris (R. ), Nebraska; Nye (R. ) , North Dakota; Patterson (R. ) , Missouri; Schall (R. ), Minnesota; Shipstead ( Farmer- Labor ) , Minnesota; Townsend (R. ) , Delaware; Wagner (D. ), New York; Walsh (D. ), Massachusetts and Wheeler (D. ), Montana. Addressing the Senate, Senator Fess, of Ohio (R. ) , who offered a similar amendment a year or so ago, excepting that it provided 15$ instead of 25$, said: "I do not like the kind of legislation that the amend¬ ment carries, and yet at the same time it seems to me that it is quite essential that something of this sort should toe done. "Ever since the radio has been an agency of communica¬ tion, there has been complaint about the slight attention given to matters of an educational character, cultural, as well as religious. I very much dislike to write into the law any com¬ pulsion. It is rather antagonistic to my way of thinking of things; and yet I believe everyone must be impressed with the pollution of the air for commercial purposes until it is actually nauseating. The practice is to turn off the radio about as quickly as one gets to it, because so much of the matter broadcast 4 rrr v : i 1 ■■ 5/18/34 is offensive. Whether or not the extent to which we are going here is justifiable is still a question in my mind. "The Senator (from New York) probably will recall that some time ago I offered an amendment to the Radio Act allocating not less than 15 percent of the time for educational purposes. I never could get any reaction in favor of it. As soon as it was offered, the stations began a propaganda against it; just why I do not know; and the same thing would be true here. "Whether or not this is the way to place a greater emphasis on the things that are really worth while than merely matters of trade and barter is still a matter of doubt in my mind. I like the suggestion that the Commission shall be authorized to make a study of the subject, but I rather feel invlined to vote for this amendment. " However, when it came to voting, Senator Fess voted against the Wagner-Hatf ield Amendment. Discussing the amendment, Senator Couzens (R. ), of Michigan, also voted against it and perhaps one of his reasons for doing so may have influenced Sen¬ ator Fess. "May I point out that section (g) of this amendment does not require any one of these stations to broadcast any religious or educational programs at all", Senator Couzens said. "After having once gotten a license under the provisions of this amendment, the whole time allotted to the station can be used for commercial purposes. That is permissible under the provisions of the last few lines on page 2 of the amendment. "I could hardly support a proposition of that kind", Senator Fess replied. XXXXXXXX INCREASING NUMBER OF RADIO LISTENERS IN DENMARK That radio is becoming increasingly popular in Denmark is pointed out by Assistant Trade Commissioner Paul H. Pearson, Copenhagen. On April 1, 1934, the report shows, there were 522,573 licensed radio listeners In the country as against 492,260 on the corresponding day of 1933. In addition there were 25,108 listeners exempted from the tax as against 21,167 in 1933. Finally, there were about 4,000 who have been granted a respite, approximately the same number as last year. Thus, there are now 551,681 registered radio listeners in Denmark compared with 517,427 a year ago, a gain of 34,000 listeners against an increase of 30,000 for the preceding year. It is the reported opinion of the State Radio Council, according to Pearson, that the total number of listeners will con¬ tinue to rise and should eventually reach 750,000. XXXXXXXX - 5 - v v t rj 0 C ... / • - ' • : •: t. - ■ ■ ... .. • ; •"» : ■ ' i'. .f .; ... . . ■ .Vi - . ' ... ' ■ ,j r ■ . ., . . ■- '• i. : V 7 . . ,i f . ■ >=;}£;$ ■ . }[. -'.7' . ■ ' 7, .H? .v';. | (.-• . . ? - r;' . = .- • >■> . .. • . ...• .■ . ' • ; . ■ m -7 . .1 : . ./ .:. ■- -U 7 L Li. c .: i . : r. 7 ;J; r . 7; • ■ j > x » .• ^ \J . • i .t V f.,> ... •: '• 7 , 7 , - .. T 7. .' •: ' f • ■' • : ■ • ,, *• : • : •: L 4 ■ 1 r ■ ■ f ^ : • 77-7” ; : 7-7 ... ;r 7 hr.-* v,? : . . . ■: ; . > 5/18/34 TELEGRAPH INDUSTRY IN SPECTACULAR CODE FIGHT All sorts of fireworks developed at the telegraphic communications Code hearing, the highlight of which perhaps was the threat by counsel for the We stern Union to appeal to the courts against the imposition of a Telegraph Code. An open fight developed between the Western Union and the Postal, the latter being charged with having inspired the Government to bring the telegraph industry under the NRA. The hearings extended over Wednesday, Thursday and Friday, the second day's session lasting almost until midnight. Unyielding opposition by A. T. & T. , which followed a similar stand by Western Union and the Radio Corporation of America, renewed speculation over whether Gen. Hugh S. Johnson, Recovery Administrator, would execute threats, later modified, to inflict a code on the communications business. The last comment by the recovery chieftain was that he wished to avoid imposing an agreement and expected to achieve his purpose through negotiation. There seemed to be a feeling that this might result in a limitation of hours of work and minimum wages, in which the dif¬ ferent factions seemed to be fairly well in agreement, but with¬ out some of the other provisions over which there has been so much controversy. C. P. Cooper, International Telephone & Telegraph Vice President, complained there would be little opportunity to avoid raising utility charges should the NRA be granted supervision over rates. Both Mr. Cooper and Col. Manton Davis, of RCA, pointed to the fact their companies already are regulated as to rates and trade practices by the Interstate Commerce Commission, and to the probability Congress shortly will enact a law setting up a Federal Communications Commission with jurisdiction over all types of com¬ munication. Colonel Davis said it had been his understanding that no attempt would be made in the Code to regulate international com¬ munications, and reminded that foreign nations had as much right to regulate international radio circuits as has the United States. He declared the RCA had always stood ready and would "sign on the dotted line" whenever the other communications concerns could agree on a Code. He said his company would "have trouble comply¬ ing" with the proposed 40-hour work week and $15 minimum wage, but "will accept it as long as it applies equally to our competitors. " Referring to the impending enactment of the Federal Communications Bill, Colonel Davis said: "It seems impossible to me that the Government would provide two methods of regulation and 6 ' : . : >" ;f.' , ; i 5/18/34 two regulatory bodies, each of which would have authority to determine the reasonableness of rates." Mr. Cooper, for I. T. & T. , said his company likewise was willing to accept the labor provisions of the proposed Code, but did not believe that the power to regulate trade practices and rates rested with the NRA. He declared the "inevitable result" of the Code would be to raise rates and this would be against the public interest and adversely affect employees rather than help them. Since signing the PRA, he said, the com¬ panies controlled by I. T. & T. had increased wages to the extent of $30,000,000 per year. Arguing that Congress had no intention of bringing the telegraph companies under the NRA, Francis R. Stark, counsel for the Western Union, said that if a Code were imposed, his organiza¬ tion would have no alternative but to wage "a legal contest along all fronts. "I do not believe that there is any fear, should this proposed Code or anything like it be imposed, that it would be enforced by any court", he added. "I have too much respect for the fellows of my craft to suppose for a moment that your own legal advisers will give you any encouragement to believe that it would be upheld in a legal test. It does not seem conceivable to me that you would invoke the test. " XXXXXXXX N.A.B. CONVENTION CHANGED TO SEPTEMBER 16 The date of the National Association of Broadcasters' convention at Cincinnati has now been definitely set for Sunday, September 16, Monday, the 17th, Tuesday, the 18th, and Wednesday, the 19th. Sunday will be occupied more or less by registration and there will be no regular sessions on that day. A program of recreation, including golf, will be provided. The National Association of Broadcasters' engineering section will meet in Philadelphia May 28th in connection writh the Institute of Radio Engineers' convention. The Commercial Committee of the NAB will have a joint meeting in connection with the Radio Committee of the Advertising Federation of America in New York, June 19-20. X XXXXXXXX - 7 - -J. . ' o;:,t 5/18/34 HOUSE COMMITTEE TOILS TO COMPLETE COMMUNICATIONS REPORT Having completed its public hearings last Wednesday, the House Committee on Interstate Commerce is meeting daily in executive session* One rumor was that Chairman Sam Rayburn, of Texas, would accept the Dill Bill passed by the Senate, but it is expected that the House will report its own Bill* One guess was that the Rayburn Committee might require as much as a week more for its deliberations but another opinion ventured was that so fast is the Communications situation moving that the Bill may be up for a House vote by that time. In view of the fact that the House is framing its own Bill, Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters has addressed a letter to each member of the Committee suggesting to them amendments which the broadcasters favored and which the Senate didn’t adopt. Special stress was laid upon the political, suspension of licenses and duration of licenses sections. Mr. Bellows also proposed that the "station monopoly" amendment in the Dill Bill specify "by control of two or more stations". The amendment now reads that: "No one licensee nor organization of licensees, whether effected by purchase, lease, chain broadcasting, or other method, shall be able to monopolize or exercise dominant control over the broadcasting facilities of any community, city, or State, or over the country as a whole." David Sarnoff, President of the RCA, the last witness to be heard by the House Interstate Commerce Committee, said that he had always believed in the necessity for effective regulation of communications by a single governmental agency. "Foreign nations give much thought to the control and effective planning of their international communication services". Mr. Sarnoff said. "The creation of a single Federal regulatory body in this country will mark a most constructive step in the communications history of the United States. We therefore hope that the Communications Act of 1934 will become a law, and that under that law, the Federal Communications Commission will be promptly established. " The Senate Bill has now been referred to the House for its consideration. An amendment forced into the Bill by Senators Walsh, Couzens, O’Mahoney and King provided that Civil Service laws and the Classification Act could be waived only in the selection of a communications chief engineer and general counsel at $9,000 each, and a secretary at $7,500. Assistants to the five Commissioners, Assistant Chief Engineers, experts and special counsel, however, would come under those laws. 8 • j -v :j (\ \ . - .V 5/18/34 Under the Bill it was proposed to waive the laws regarding all these officials, with $9,000 salary for the Chief Engineer and General Counsel, and $7,500 for experts, but no salary was specified in the case of the secretary or others affected by the amendment. Senators sponsoring the amendment complained of high salaries paid to officers of new agencies and disregard of the Civil Service and Classification laws. Senator Walsh pointed out that Government officers in regular establishments were dis¬ criminated against, and served notice that he would not approve any new venture until the full salary list contemplated could be revealed to the Senate. The Senate accepted an amendment by Senator Clark to exempt from Federal control and regulation small independent intrastate telephone companies not owned by interstate companies. An amendment by Senator King, also approved, removed the Bill’s stipulation for a 100-watt power qualification where the Commission granted licenses to additional stations needed for adequate broadcasting. While the Rayburn Bill, pending in the House Committee, says that three divisions must be set up, the Senate Bill stipu¬ lates two divisions, one to control radio, the other to supervise telegraph systems and telephones. The Senate Bill calls for a 5-man Commission, while the House Bill at present stipulates 7 members. It is believed that the House may recede on this and agree to five. XXXXXXXX DECLARES COLUMBIA HAS WHITE HOUSE INSIDE TRACK During debate on the Communications Bill, Senator Hatfield, of West Virginia, read into the record the following article by Arthur Sears Henning of the Chicago Tribune : "The significant and often amusing scramble of the great radio broadcasting chains for the ’inside track* at the White House and the Radio Commission prophetically illuminates the predicament in which the telegraph and telephone systems, the news agencies, and the newspapers will find themselves if Congress places them under the control of the proposed Government Commis¬ sion. "With the White House dictating decisions of the Radio Commission and 'cracking down' on radio interests in disfavor, it has become a matter of vital importance for them to ’ stand in' with the powers that be. 9 ? ' • '= . ; > d l : . j i-» ... -■ ; . c.- • : , i ; . f;v, 1 - ; 5/18/34 "During the Hoover administration it was the National Broadcasting Co with 15 broadca. sting stations, itself a sub¬ sidiary of the Radio Corporation of America with several thousand licenses at stake, that enjoyed preferential favor at the White House. "For the last year, under the Roosevelt Administration, the Columbia Broadcasting System, with eight broadcasting licenses at stake, has been closer to the throne than its rival has been, Columbia has had little difficulty in getting anything it wanted from the White House and the Commission, while NBC has encountered a lot of rough going. "With all communications under control of a Government Commission, the wire services, the news-gathering agencies, and the newspapers undoubtedly would be scrambling in like manner for White House favor to promote their interests and avert official ’cracking down'. The newspapers particularly would be at the mercy of the power of the White House to direct a censorship of telegraphic news dispatches. "The Columbia Broadcasting System, having been less fortunate than NBC under the Hoover regime, set out to change its luck when the Roosevelt Administration came into power. It placec* in charge of its Washington headquarters Henry A. Bellows, Vice President of the System. Mr. Bellows is a Democrat, a former member of the Radio Commission, and a friend of President Roose¬ velt, their friendship dating from their youth at Harvard, where Mr. Roosevelt was in the class of 1904, and Mr. Bellows in the class of 1906. "Mr. Bellows, who is a man of great ability and of the highest character, says he never has presumed upon the friendship to get favors from the White House. He never has gone higher than a secretary to the President to get what he wanted. * * * * * * * "The word soon went forth that Columbia had the inside track at the White House and it later appeared that equally close relations had been established between the Washington staff of the broadcasting system and officers of the Radio Committee. "At this juncture the National Broadcasting Co. began to betray signs of anxiety. It was bruited about that NBC was in disfavor because its President Merlin Hally Aylesworth, not only was a dyed-in-the-wool Republican but had asserted during the 1932 I campaign that if Roosevelt was elected he would leave the country. Of course this placed Mr. Aylesworth poles asunder from Mr. Bellows, who was an F.R.B.C. (for Roosevelt before Chicago). 10 5/18/34 "The Washington representative of NBC in a personal interview sought to convince the President that Mr. Aylesworth never uttered the damning statement attributed to him. Mr. Roosevelt told the emissary he was sure Mr. Aylesworth never said it, but the President gave the assurance to the accompaniment of a hilarity that did not altogether allay anxiety. Presently, however, NBC made a move calculated to curry favor at the White House. It replaced its Washington news commentator, William Hard, close friend of former President Hoover, with the brother-in-law of one of the President's secretaries. XXXXXXXXX COMMISSION SERVES NOTICE ON PUBLISHER The Radio Commission Friday adopted the following resolution: "WHEREAS on May 12, 1934, the New York Herald Tribune, Ogden Mills Reid, President and Editor, in its editorial column, published the following: "'The radio, controlled by the Administration through its licensing power, was made the spokesman of the New Deal and largely restricted to government propaganda, ' and "WHEREAS the Federal Radio Commission, pursuant to the provisions of the Radio Act of 1927, is the ’licensing power' and "WHEREAS the Federal Radio Commission, consistent with the prohibition contained in Section 29 of the Radio Act of 1927, as follows: "'Nothing in this act shall be understood or construed to give the licensing authority the power of censorship over the radio communications or signals transmitted by any radio station, and no regulation or condition shall be promulgated or fixed by the licensing authority which shall interfere with the right of free speech by means of radio communications. * * *' has never 'controlled' or 'restricted' ra.dio programs to 'govern¬ ment propaganda', or attempted in any way so to do; "NOW, THEREFORE, BE IT RESOLVED that Mr. Ogden Mills Reid, the President and Editor of the New York Herald Tribune, be and is hereby, requested to furnish the Commission any facts or other material, including the names of parties furnishing the sam§ which would support, or tend to support, the statements made in the editorial column of said newspaper. " XXXXXXXX 11 £■ \cu \ '■ a l UU ; J - ; [ k -.11 - ' ■ ■' . ■ - ' • ; . .. . 0 ' i ■ ' . . . •; 1 ... jr-i. • i i • - - . ... J t t-jVO.O . . ill,' V.V ' , ; : £ »; • ' ■ ■ ' . ' ' ■ ■ , . . X _ ' • • v •. -i ' • ‘ , ■ . . . - ~ ' f} - ' : ' ■■ r. < prior HD I' .: ,0' \* ” r * v . .4v ■v ' Trit; ; “ • " > ... - ' ■ .■ • ■ ■ . ' ' X V .. , . V , .. , ... - v; St' :*•>.; 0. u .: ! J fl . ' . \ WSH v.H'f «►* n.a*no.*it If iOi ? 1 V ■ ... S} : i. i.fUlC'Y r 'I . . ' ■ :Y ' CtA.Y. *i i 1 .-' ■ ' - - , . j. -• ■- ■ - ‘A •. .. f -,1 ■ I ‘ . ass - i , . . J 3 ■ , . it a ‘ ' t ■ ■ ■.. • f - • ' ' . 10 : . . ■ i Oii >qa 1" ■' ' ’ C i /. ‘ Vi ■ ... si bn& y . Y : . . ./ ,, 1 ■ ‘ <) J i/OW iloixlw •v , J 1 •(. '• ’ ■ . ‘ ;V 4 , ’ ' . ; . • . 5/18/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted May 15 - WQDM , A. J. St. Antoine & E. J. Regan, St. Albans, Vt. , C.P. to move transmitter and studio locally; WKZO , WKZO, Inc., Kalamazoo, Mich., C.P. to move transmitter to Kalamazo : Twp. , Mich. ; make changes in equipment increase power from 1 KW day only to 1 KW day, 250 watts night, and increase hours of operation from daytime to unlimited (Commissioner Lafount voted to set application for hearing); KFBL, Leese Brothers, Everett, Wash., consent to voluntary assignment of license to Lee E. Mudgett; WMEX, The Northern Corp. , Chelsea, Mass., modification of C.P. to extend completion date to July 20; WHAD, Marquette University, Milwaukee, Wis. ; consent to voluntary assignment of license to American Radio News Corp. ; TODL , Tupper Lake Broadcasting Co. , Inc. , Tupper Lake, N. Y. , modification of C.P. extending commencement date to May 15 and completion date to June 30, 1934. May 18 - WCAL , St. Olaf College, Northfield, Minn., C.P. to change equipment and increase day power from 1 KW to 2-g- KW; KQW, Pacific Agr. Foundation Ltd., San Jose, Cal., C.P. to move transmitter and studio locally in San Jose; KMED , Mrs. W. J. Virgin, Medford, Ore., C.P. to install new equipment and increase daytime power from 100 to 250 w. ; KLRA, Ark. Broadcasting Co. , Little Rock, Ark., C.P. to install new equipment and increase daytime power from 1 KW to 2-| KW; KARK, Ark. Radio & Equipment Co. , Little Rock, Ark. , modification of license to increase daytime power from 250 to 500 watts; TON, Marcus Loew Booking Agency, New York, modification of license to make changes in equipment and increase power from 25o to 1 KW; WATR, Harold Thomas, Waterbury, Conn., modification of C.P. to change transmitter and studio locally in Waterbury, Conn. Also, WPTF, WPTF Radio Co. , Raleigh, N. C. , modification of C.P. to extend completion date to Aug. 17, 1934; WDNC, Durham Radio Corp. , Durham, N. C. , license covering move of station from Wilmington to Durham, changes in equipment and change in frequency from 1370 to 1500 kc. , 100 watts, unlimited; KVL, KVL, Inc., Seatt'1 Wash. , license 1370 kc. , 100 watts, S-KFBL, covering local move of transmitter and studio; KGY, KGY, Inc., Olympia, Wash., special experimental authority for additional specified hours during the period of existing license; WNEL , Juan Piza, San Juan, P. R. , modi¬ fication of C.P. to change authorized location of transmitter locally in San Juan, and extend completion date to 90 days after this date; WNBH , d/b as New Bedford Broadcasting Co., New Bedford, Mass. , consent to voluntary assignment of license to E. Anthony & sons, Inc. Miscellaneous - Action on ’WKZO, taken above under date of May 15, reconsidered and designated application for hearing. XXXXXXXX 12 - X Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Not for Publication ?i < \ LiUiyiAY 23 1934 lltfDEX TO ISSUE OF MAY 22, 1934. Radio Engineers All Ready For Philadelphia Convention.. . 2 Klugh Again On Job As Banquet Impressario U. S. Dominates Mexican Radio Market . House Temporarily Lays Aside Communications Bill . 5 New Commission Makeup Already Has Capital Guessing . 6 Convey Brought A Carload Of Witnesses . 6 Roxy Pans Home Town Audience . 7 Wire Groups Fail To Agree On Code . 8 Business Letter Notes . 9 Supreme Court Upholds DeForest In "Feedback” Case . 10 Correction . 10 WTMJ Wins Libel Suit . . . Decisions Of The Federal Radio Commission 11 11 i£- May 22, 1934. RADIO ENGINEERS ALL READY FOR PHILADELPHIA CONVENTION Those who will attend the National Convention of the Institute of Radio Engineers in Philadelphia next week have a busy time ahead of them. The program follows: MONDAY MORNING, May 28 - 10:00 A.M. - 12 Noon: Addresses by C. M. Jansky, Jr., President of the Institute; W. F. Diehl, Chair¬ man of the Convention Committee; Harold Pender, Dean of the Moore School of Electrical Engineering, University of Pennsylvania; and W. R. G. Baker, Vice-President and General Manager, RCA Victor Company, Inc. "A Lapel Microphone of the Velocity Type", by H. F. Olson and R. W. Carlisle, RCA Victor Company, Inc. , Camden, N. J. ; "Westinghouse KYW in Philadelphia", by R. N. Harmon, Westinghouse Electric and Manufacturing Company, Chicopee Falls, Mass. ; "Nonlinear Theory of Maintained Electrical Oscillations", by B. Van der Pol, Philips’ Incandescent Lamp Works, Eindhoven,Holland. MONDAY AFTERNOON - Technical Session (1st section) - "The WLW 500 Kilowatt Broadcast Transmitter", by J. A. Chambers, Crosley Radio Corp. , Cincinnati, Ohio, G. W. Fyler, General Electric Co., Schenectady, N. Y. ; J. A. Hutcheson, Westinghouse Electric & Manufacturing Co. , Chicopee Falls, Mass. , and L. F. Jones, RCA Victor Company, Inc. , Camden, N. J. "Comparative Analysis of Water-Cooled Tubes as Class-B Audio Amplifiers", by I. E. Mouromtseff and H. N. Kozanowski, Westinghouse Electric & Manufacturing Co. , East Pittsburgh, Pa. ; "Some Engineering and Economic Aspects of Radio Broadcast Coverage", by G. D. Gillett and Marcy Eager, Consulting Engineers, Washington, D. C. Technical Session (2nd Section) - "Some Chemical Aspects of Vacuum Tube Production", by R. E. Palmateer, Hygrade Sylvania Corporation, Emporium, Pa.; "Contact Potential", by R. M. Bowie, Hygrade Sylvania Corporation, Emporium, Pa. ; "Hot-Cathode Mercury Rectifier Tubes for High Power Broadcast Transmitters", by H. C. Steiner, General Electric Company, Schenectady, N. Y. TUESDAY MORNING, May 29 - (1st section) - "Theory of Electron Gun for Cathode-Ray Tubes", by I. G. Maloff and D. W. Epstein, RCA Victor Company, Inc. , Camden, N. J. ; "Cathode Ray Oscillograph Tubes and Their Applications", by W. H. Painter, and P. A. Richards, RCA Radiotron Company, Inc., Harrison, N. J. ; "The 'Sound Prism'", by Knox Mcllwain and 0. H. Schuck, University of Pennsylvania, Philadelphia, Pa. - 2 - 5/22/34 TUESDAY MORNING- - Technical Session (2nd Section) - "A Mechanical Demonstration of the Properties of Wave Filters", by G. E. Lane, Bell Telephone Laboratories, Inc. , New York; "Control of Radiating Properties of Antennas", by C. A. Nickle, R. B. Dome, and W. W. Brown, General Electric Company, Schenect¬ ady, N. Y. ; "Measurement of Harmonic Power Output of a Radio Transmitter", by P. M. Honnell and E. B. Ferrell, Bell Telephone Laboratories, New York City; "Frequency Standards and Frequency Measuring Equipment", by J. K. Clapp, General Radio Co., Cambridg Mass. ; "North Atlantic Ship-Shore Radiotelephone Transmission During 1932-1933", by C. N. Anderson, Bell Telephone Laboratories Inc. , New York City. Luncheon will be served at the RCA Victor plant, Camden, N. J. , through the courtesy of the RCA Victor Company. TUESDAY AFTERNOON - "An Experimental Television System" Introduction - E. W. Engstrom; Transmitter - R. D. Kell, A. V. Bedford, M. A. Tra.iner; Relay Circuit - C. J. Young; Receivers, R. S. Holmes, W. L. Carlson, W. A. Tolson, RCA Victor Company, Inc. , Camden, N. J. TUESDAY NIGHT - Informal Banquet. WEDNESDAY MORNING, May 30 - Technical Session (1st section) - "The Design and Testing of Multi-Range Re'ceivers", by D. E. Harnett and N. P. Case, Hazeltine Corporation, New York; "High-Fidelity Receivers with Expanding Selectors", by H. A. Wheeler and J. K. Johnson, Hazeltine Corporation, New York; "Acoustic Testing of High-Fidelity Receivers", by H. A. Wheeler and V. E. Whitman, Hazeltine Corp. , New York; "A Common Source of Error in Measurements of Receiver Selectivity", by E. N. Dingley, Jr. , Bureau of Engineering, Navy Department, Washington, D. C. Technical Session (2nd Section) - "Recent Studies of the Ionosphere", by 3. S. Kirby and E. B. Judson, Bureau of Standards, Washington, D. C. ; "An Analysis of Continuous Records of Field Intensity at Broadcast Frequencies" by S. S. Kirby, K. , Norton, and G. H. Lester, Bureau of Standards, Washington, D. C. ; "Modern Methods of Investigating Ionization in the Atmosphere", by G. L. Locher, Bartol Research Foundation, Swarthmore, Pa.; "Seasonal Variation in the Ionosphere", by J. P. Schafer and W. M. Goodall, Bell Telephone Laboratories, New York. WEDNESDAY AFTERNOON - "Development of Transmitters for Frequencies Above 300 Megacycles", by N. E, Lindenblad, R. C.A. Communications, Inc. , New York City; "An Electronic Oscillator With Plane Electrodes", by B. J. Thompson and P. D. Zottu, RCA Radiotron Company, Inc. , Harrison, N. J. ; "Transmission and Reception of Centimeter Waves", by I. Wolff, E. G. Linder, and R. A. Braden, RCA Victor Company, Inc. , Camden, N. J. XXXXXXXX - 3 - N \ • \ - ( . . • 1 : : ■ • ' 1 ~ll r'f T/f J** .L Vy , i'i •> Vi ^ ; . ■ • ; ; ; . . I” • . d ' v - r r , ■ : • • '/ ■ ’ 4 vi VI ^ « .’a.l rtc iq . . $t t ■ :V . . ■ i.Ei . . ^ i r.\ .. U I, ’.-c- noieivfjlaT Xicpcii ; A' A r f . : s n p - ■ r; •’ : . ; ; .. p _ .. ’ ! .. . . . -$* ' t - • r "? " *T f r ; i •' • - ■>•»* ■; .w T ♦ <» v/ .A. iii- I ..1&3 ir X * X*J v*"* . . ' .! • • ' • : , + -vKT r- •: ' ' jB-'J . • . bM CHHOl . . ...... : . - ■ ■ -X - • ... /•■ • ■ , u .. i ■■ " ti - .... S ' s .. 0 ■ e ' ' ■ 0 ' . fi , . » ■■ t ub w? t&oe.b til {nci-swl- >. S\ .*$ X>i so . PX ' jt J ivLfOJ ■ ' ■ ■ ■ k i . ■ / ■. E • ■ ■ j ■ 3 J .H ,v -OXXJ-J j a.. af-i©X'oM<’ . : • T .. ' l( : .■ ' . '5 v ■■ 5 ... 10 ■ < f£ ■ - ; «iXO . ol ■ • ii'I.G . : ) : { . . trti ■ • >i ■ ' C I 7 r - ,4 . )J • Jti «J 09i -jrJ QQi: i) v-OdA 8 1 ‘-..i . . , I v ws 9V to jwiJtq 5/22/34 KLUGH AGAIN ON JOB AS BANQUET IMPRESSARIO Arrangements for the banquet In honor of the 10th anniversary of the Radio Manufacturers’ Association at Chicago, Wednesday, June 13th, are rapidly taking shape under the master hand of Paul B. Klugh, who will also act as toastmaster. The entire radio industry, including the Radio Wholesalers 1 Associa¬ tion, who are meeting jointly with the RMA in Chicago at the same time, are invited. This goes also for the ladies. It is just possible a special radio broadcast may be arranged in honor of the banquet. Bond Geddes, Executive Vice President of the RIM is in charge of the general convention arrangements and as usual will be at the Stevens Hotel in Chicago. XXXXXXXX U. S. DOMINATES MEXICAN RADIO MARKET A marked increase in sales of radio equipment in Mexico reflected the improved economic position of that country in 1933, according to Assistant Commercial Attache R. G. Glover. American manufacturers dominate the Mexican market, the report shows, supplying practically its total requirements. So far as it known, there is only one European manufacturer actively represented in the country. This firm has advertised extensively and has exerted considerable effort to develop the market, but their activity has not resulted in increased sales. Official statistics show that radio equipment imports during the calendar year 1933 were valued at 2,521,254 pesos, as compared with 1,476,337 pesos in 1932 and 1,508,253 pesos in 1931, While the general economic improvement of the country as a whole, the report states, was the principal factor influencing the improvement in sales, the stabilization of the peso to the dollar in July also played an important part. Another stimulating factor was that a few of the large American manufacturers during the early part of the year brought out several popular - priced 4, 5 and 6 - tube sets which were well received throughout the country. It is believed in the trade that approximately 75 per cent of total sales volume in 1933 was in these types. Prior to 1933, the report points out, distributors in Mexico concentrated their efforts on the larger cities. Last year, however, they began to give more attention to developing sales in the small towns and as a result it is estimated that the largest percentage of sales increase occurred in the areas outside of the principal commercial centers. X X X X X X - 4 - -r'iUPMA'~ : i'i . ill... A. Hf.. ,i>: $ h : Q no J . i .. : $o1 . . S |BOi ■ - . '. • ' ■ i | :1 ’ ■ J ■ ■ ■ . I . ■ ' . . ■ A. ■ : . f ■ - • c - *4 . si . t5? 90* . . - it’ 6 XjS I ■ i q . ' : :: , ./S.Wy.r; • A A o’ ‘.tOf:OA al x. -A m; ■ ' I : "■ ; * . ' ■’ ^ : ■ X X , ' V, A x ;i; i , ; ■ L V O' CD .0 , h ?X,dQ,&{! A , : : ■ . - . • ■•,A:.v v'lri.r. axict K' ■lAOA S'TS^.Udor-'Vj* f’.iSOi'XamA . . ; o'l'ixis tssmmsi: Aix sb *xjat l ■ :i. Cl , '■ :'i £i . ( : - . ■' • . -■ ■ • . Cl ■ - . - . Ik • : ■.. > .- • ) •• . • • : . ■ - . . . . . . . ... sqm • : ‘ - . .. ... ; . ■ .• . ' £1 ' . . • , • • ■ ■ ' ■ ■ ... . : • • • , t >xij s.si .-. ta ■ _ £ ... . ■ • >c i< • • ’ ’ ' ' : . . .. .. . . •• ; .. ■ • A 1 v He ini - 4 5/22/34 HOUSE TEMPORARILY LAYS ASIDE COMMUNICATIONS BILL The House Committee on Interstate and Foreign Commerce has for the time being, laid aside the House (Rayburn) Communica¬ tions Bill. It will exert its energies toward consideration of the Railway Labor Bill and possibly take up the Communications Bill the latter part of the week. There seems to be no fear that this temporary delay will jeopardize the ultimate passage of a Communications Bill. It was said that Representative Rayburn anticipates no difficulty in getting the bill up for consideration by the House as soon as his committee reports on it. Far from accepting the Senate (Dill) Bill, the House Committee has been redrafting its own bill and going over it in a thorough and painstaking manner. Executive sessions have been going on for about a week now and the Committee has reached Section 214 which is on Page 26, or a little less than half-way through the Bill which numbers 67 pages. It is believed that the House Committee will follow the course of the Senate Committee and recommend that the sug¬ gestion of Father Harney to allocate one-quarter of all channels to religious and educational bodies be studied by the new Com¬ mission. A report in Washington was to the effect that the educational group, far from being discouraged by the vote 42 to 23 in the Senate, felt very much encouraged that as many as 23 Senators should have favored their cause. A militant group is now said to be girding itself for further battle and one of its first moves will be to secure a college grant, go to Europe, study European government owned systems, and recommend the adoption of such a system to the new Communications Commission, The fact that the House is framing its own Bill doubt¬ less means that there will be many provisions to reconcile between the House and Senate Bills in conference. Nevertheless, as said above, the assurance is confidently given that a Com¬ munications Commission will be created before Congress adjourns. The date set for adjournment now seems to be about June 15 though this is contingent upon the tariff and other controversial questions which will be a factor in the final sign off. XXXXXXXX 5 •Ji J .. re BP! PT ■ i '0 3<3 " y 3YAJ YJIHAH . .T'T . 7-BiJOH . • . tmm oQ ■ - r H)! s B’Mi 1 ■ ■' rl *& ' - ■■ ■ : 9tt j ! - . . 3WG . . ■ ; . - • . • l .. ■ . ■ i .... i . .. •h3"ivv lo j'tsq iSvtd’Bl vdi XXX 3 CIS i . . :, Its ■ ■ ... . . ' O ' IB IBB . i ■ , . £>0« ■ iSJOE | U . [ j 1C ^ . aic ■^Q'jr.r b&j yLS.ici -(UlC ) ©dsns 8 srid ^nXdqsooB me*?! ■ ■ ' . . . . ..• ( ted tlaadX anXIni.B ad o>; Mbs - a b£ qiroTrs .dmsdXXXis A s< • £i ■■■ a ■ text! . 1 : Sou JM ' ■ U ^8 t - : ■ ■ . • ■ ■/■-. as 81££ ■...:■•■ £110 vsrc 3«Xn SQJJOi ; : . . ■ IXooo od . • oi XXXw . ' 1 . .. . .sc ■ ■ : bi ■ ■ 1 ' \aJ oo.su; a . 8£ . . '. '• ?y X GlaaAs >0 u 1 ■ ■ * d >d I •' ■ .. ri i : ' ■ - : ,1)0 • •». iii i-*r & sd XXd.w xfoidv/ anoidesijp x x ”< x x >: x x 5/22/34 NEW COMMISSION MAKEUP ALREADY HAS CAPITAL GUESSING Although the new Communications Commission looms as a certainty, no one seems positive as to its makeup. The White House as usual is mum. Dr. W. M. W. Splawn, economist and counsel for the House Interstate and Foreign Commerce Committee, continues to he mentioned as a possibility for Chairman of the new Commission. Dr. Splawn' s recent "crack down" on the American Telephone and Telegraph Company is soon to be followed by a report on the radio industry. If this is as drastic as the telephone report, considerable opposition may be aroused against his appointment. Milo Roy Maltbie, of New York, noted public utility expert, was mentioned as a Communications Commissioner possibility Dr. Maltbie came into national prominence as a member of the Advisory Board on rate valuation of the Interstate Commerce Com¬ mission. He later became the head of the New York State Depart¬ ment of Public Service. Dr. Maltbie is 63 years old and a native of Illinois. Another name heard in the Capital was that of Col. Clair Foster, internationally known radio amateur, of Carmel, California It is said to be the contention of those backing Colonel Foster, that the radio amateurs of the United States numbering some 45,000, are entitled to representation on the Commission. Foster, who has been characterized as the "fighting amateur" vigorously opposed the ratif ica.tion of the Madrid Treaty because of its restriction upon communication of amateurs with foreign countries. Colonel Foster sharply criticized officials of the American Amat¬ eur Relay League for endorsing the Madrid Treaty, Capt. S. C. Hooper, Director of Naval Communications, who has been spoken of as a Communications Commissioner, has just been awarded the honor medal of the Institute of Radio Engineers, awarded annually for distinguished contribution to radio communica tion. The presentation is to be at Philadelphia May 29th. Captain Hooper was instrumental in developing the first radio beacon installation in this country. XXXXXXXX CONVEY BROUGHT A CARLOAD OF WITNESSES Thomas Patrick Convey, of Station KWK, St. Louis, who died recently, is well remembered in Washington and the news of his death was received with regret at the Radio Commission. In the early days of radio, another station in St. Louis filed a claim for the frequency of KWK. In order to prove the 6 r SfflOOi ft i tx£W 3i : \ \ " V , ' ■ ■■ 0 , 'i* - ■ p „ r- ; r, - J . 2 £ 5 sj < : V * ^ i. j ■ r: ■ : • O'" ' . ' tea's • ■ ’ 1 : - ■ ,(J . : v ' ‘ ' , : c,:' ' . ; . : . ’ ‘ - j ■; .. if- ■ . . r - ' ' • - . '' ' . . . y.tc ■' : ■ r -oriw ; ■ i G..j J: 'fo- • :• v . . . . . . „ ■ ■ to . u u . : " X bv o.. 1 *5 *xsqooH : ' - . . :■ ■ ' • ■ . ... ■ - . . ■ ■ ■ ■ . ■■ . $ I A X X X X X X X Hj ■' b , ,noi' &c ■ iTitnoO oibn>. j -s x, on o f J;w -.5 i . v.( ' . - ' - 5/22/34 popularity of the station, Convey brought a carload of witnesses from St. Louis to Washington. Sometimes there is a suspicion that witnesses have been rehearsed, but not so with those of Mr. Convey, They produced some convincing testimony, mostly in favor of Convey, but one of them was so frank in his testimony that he declared he never listened to KWK or any other radio station. It seems Convey had allowed the listeners in different election districts to nominate their own witnesses and thus the non-listening individual secured a joy-ride to Washington. Another amusing incident in connection with the Convey hearings, which were long drawn-out, was that a newspaper cor¬ respondent, who had given a carte blanche order for a stenographic transcript of the testimony, was almost knocked out of his shoes when he received a bill for $350 for this service. X X X X X X X ROXY PANS HOME TOWN AUDIENCE S. L. Rothafel (Roxy) stirred up some excitement in Minneapolis, his former home town, during the week’s engagement of himself and his G-ang at the Minnesota theatre. "Besides ripping into the newspaper critics, who weren’t too kind, he added himself to the list of stage celebri¬ ties who have vexed local citizenry on the occasion of public appearances by speaking of the town or its residents in uncompli¬ mentary terms", Variety reports. "Roxy's overt act was to pan, from the Minnesota stage during a performance, a lengthy poem written in his honor and read as part of a ceremony making him an honorary member of local Shrine Temple. After the conclusion of the reading of the poem by its author, Roxy, replying, said it was ’lousy’ as a piece of poetry but that he appreciated the ’sentiment’ behind it. "Theatre did around $19,000, good, on Roxy's week." X X X X X X - ?. - f\\ .-Of. 7jL*i 7 0 C 1:707 . • ' • ■ ' :jod * ' ■ ■ n J **:: f • ... - ♦ -r*. •; - ; » ' . < VII 0 j.tl.i 1 ~ f ■ ttilCO ttz J i? 0 , ; s ... v.'. . ■ • .. i’y\ . • ■ X". ' ' • '■ ;■ . : ; : rn .»nc . - V ■ • c ' * ' ;i. ... . ■ : A X X y v . . if. j. ■ : . . ; ■ - ;jj6 ■ ■■ ; ' 0 >sf ■ ■ ■ ■ ' < - ■ 1 o • * • ; . io no 1 x tX' • • ' . • • . . • . . ■ ■ t s Ln J j a , • . r 0 • x'.’ T an i ' " Ju V • B t'J?. ./t ’ >co •. i\ ' ; 9/i.f \iii- , vyi,; /Xqs'X , x • .. ;.'V .* • . * . - c-a n&c ... . • i o . V 5/22/34 WIRE GROUPS FAIL TO AGREE ON CODE Flagrant trade abuses were charged to Western Union and the American Telephone & Telegraph Co. by Postal officials at the final session of a NRA Communications Code hearing. Recovery chieftains immediately went into a huddle to decide whether to impose a Code on the gigantic telegraph industry. Gen. Hugh S. Johnson said he still hoped to avoid forcing an agreement on any recalcitrant business. There was a possibility that President Roosevelt might use his persuasive powers to adamant industrialists of the Western Union, A. T. & T. , and Radio Corporation of America, should Johnson's negotiations collapse. Earlier We stern Union spokesmen argued the telegraph industry was satisfactorily regulated by the Interstate Commerce Commission, and threatened to precipitate a court test should a Code be imposed. ? Col. A. H. Griswold, Executive Vice-President of the Postal, attacked the exclusive contracts held by Western Union in railroad stations and hotels, and demanded that they be canceled, so that both telegraph companies would have an equal footing in these fields, while Howard L. Kern, another Vice-President, declared that a Code is needed to end abuses which he said are contrary to Federal statute. He said that the Federal Communica¬ tions Commission proposed in pending legislation cannot work fast enough to ameliorate the situation. Colonel Griswold testified that an early reduction in rates can be accomplished "if the telegraph business is put upon a fair competitive basis." "Postal would have made reductions long ago", he said, "had the telegraph business been conducted upon a fair basis." Mr. Kern, for his part, urged that the Code be imposed to end "boot-legging" of leased wire facilities. Efforts made to correct these abuses by direct negotiations with Western Union officials, he testified, had failed, as had attempts to cure the situation by Congressional action. Deputy Administrator Peebles asked if the "abuses" could be cured if the A. T. & T. leased wire circuits through the telegraph companies. He was told that they could. He then called C. P. Cooper, of the A. T. & T. , to the platform and asked his views upon this point. Mr. Cooper said that he did not care to discuss the matter. There was no inkling given by the Deputy Administrator as to whether the NRA intended to go through with imposing the Code. X X X X X X - 8 - '-n y;o : -HDA " si r v ■ ::nw 0 •• " ' • - : t " , c ■ 1 ■ ■ ■ i & ■ ' : &£b& ml & octal ctaow yS- ' ' - ' ■ ' : : ■ lX ■ : ■; . *> : . . . ysi . t • to! i • i ■ ■ ■ . S l / . toJ ' . • - c ■ . . o I : . ' ? - : ■ ■ . ksBoqrffli a£>Ov a o . c5 . >£oi! - ■ *H .A ,i.o0 • ^ .... ' ;/ '-S ' . ' . "ji - , J • ' . '■ • ' : " ' . .... V r ■ - ' ' . . • ' -.to-//' j-onnao - ' ■ 5* . . . - . •r o : :>D • ; O { j I> ‘ . ; ; . . . a . l-c . i ■ c 3 £ ■ . ' : ' ■ ■ ■ 1 . ■33d '33. * . ii : 9 V t -7 i ' s'l oXmB tl ; 3/K Eif •• . \ 'v'' ■ J©d « Bi . ' ' ' . .j. ... r. _ . „ .... * ^ T ■ i s ill , ' : . K . v 5/22/34 BUSINESS LETTER NOTES Gene McDonald, President of the Zenith Radio Corporation, is among the outstanding industrial and scientific leaders who have accepted the invitation of Alfred P. Sloan, Jr. , President of the General Motors Corporation, to attend his forum and dinner to be held at Chicago next Friday on the eve of the reopening of the Century of Progress Exposition. Speeches will be under the heading "Previews of Industrial Progress in the Next Century. " The Federal Radio Commission has granted a permit for the reconstruction of Station WAAF, owned by Drovers Journal, which was destroyed in the Chicago stockyards fire. The loss of the publishing plant and the station were estimated at $500,000. Radio crossed the Arctic Circle to establish a new northern-most outpost on May 17 when a 10 k.w. broadcasting sta¬ tion was opened at Vadsoe on the northern tip of Norway on a parallel above the entire mainland of Canada. The equipment for the Vadsoe station was supplied to the Norwegian Government by a Company of the International Tele¬ phone and Telegraph Group with headquarters at Oslo. Clarence Darrow in his NRA report demanded that Sol A. Rosenblatt, Administrator of the Motion Picture Code (who also administers the Broadcasters' Code) should be removed because he refused to testify before the Darrow board and because of "testimony that he is prejudiced against independent producers, distributors and exhibitors. " Defending Rosenblatt to President Roosevelt, Gen. Hugh Johnson wrote: "The Darrow committee impugns the motives of the divisional administrator in the Motion Picture Code because he formerly worked for an attorney who has clients in that field, and it asks his removal. Nobody here has rendered more public- spirited, disinterested and intelligent service than this divisional administrator. " J. David Stern, publisher of the New York Post and Philadelphia Record, has applied to the Federal Radio Commission to establish a new radio station in New York to operate on 810 kc. daytime with 500 watts. It is planned to use the facilities of WNYC, according to the application. XXXXXXXX - 9 • : .1 a.xf; .■ ■ ' -r-iOc . • ■ : '• o h-K dij ,'iLi v:o dr; rfb L :■ eTl tMca6(k'V.' scisO or! < ei p JS-ia £alr .?:■'■ f ixxil sp.i :>r&taSfic MX si 3 » ■ 6C JE I ■. El ' . ... : ■ .' . | ‘ " ' " i 1 r-.: . '... • ic't aia. .ta cvt t r:oicr b';.: c; rcD a'to^oM Intone? edi 1 0 ^nifxsqo . , 1© f?0 ho 3x©n ©gaol/iO -4a ftlorf od cj .no . c qx3 s$slia0V$ xo y/xMm > 3x4 a - . >’■ //anseil erfj iehms erf £Xlw ^edhee q8 " ': .vxvifrrj-iO ,tx -.a r.rfJ hi ar :-.C';0‘vi £ :: Vt3a3f>r;'r . Lsfli . • t ■ ■ •' . . - j . ■ . doiii 6 ■ ■' • .. • ■ i . ;. . d :■ & ) . • l : : • ■ 3 - . ' - Of t :. . . 3 .1 x . ' . ' . 1 ' .."■■■■■ . 1( ' " m ' ' ' . .• C ■ . jpa u< 0 *- ■ ' . Cii t ' " ! •. i i..! '■ i . ■[ : ' 1 : : ■ s TI.sC ■ fs 19 ■ ; ■ .. ' . .. ,w .. 3 'lo'jidi' .brio a ■■© j.’-sdl’iieXy- ... J v - . ■ ■ ; y ■ ■ isi . . . ■ ■ ■ - . . tiMS . i . t . i z ■ . . . .. . ; . ■ ■ • - ’ " , ■ , • •• t . ■ • • stilw .... 5/22/34 SUPREME COURT UPHOLDS DE FOREST IN ''FEEDBACK" CASE The Supreme Court decided last Monday in effect that Lee DeForest and not Edwin H. Armstrong was the original inventor of the "feedback circuit" and "audion oscillator". The opinion was written by Justice Cardoza and the Radio Corporation of America won a victory over the Radio Engineering Laboratories, Inc The case has been in the courts since 1922. The decisio by the Supreme Court is considered in radio circles as definitely handing the laurels to Dr. DeForest, although in August, 1933, Major Armstrong was the recipient of congratulations on being sus¬ tained as the inventor of the circuit by the United States Circuit Court of Appeals, Second District. The Radio Corporation of America has been licensed under both DeForest and Armstrong patents. It was licensed under DeForest patents through the American Telephone and Telegraph Company and under the Armstrong patents through the Westinghouse Electric and Manufacturing Company. In its decision last Monday the Supreme Court overturned a decree of the Second Circuit Court of Appeals and upheld the Eastern District Court of New York. Justice Cardozo reviewed previous litigation and added: "One might have supposed that controversy would have been stilled after all these years of litigation. It proved to be not so. The petitioners (RCA) after repelling every assault from with in the ranks of rival claimants, found it necessary to meet a challenge from without. The respondent, Radio Engineering Labor¬ atories, Inc. , allying itself with Armstrong, who is paying its expenses, insists that the invention is at large for the reason that DeForest, who received the patents, is not the true inventor, and that Armstrong, who is the inventor, is barred by a final judgment, conclusive between himself and the pretender, from obtaining the patent that is due him, and with it an exclusive right. The evidence in this suit for an infringement is a repeti¬ tion, word for word, of the evidence in the earlier suits, so far as material to the conflicting claims of Armstrong and DeForest. " XXXXXXXXX CORRECTION We regret that in the May 18th issue of the Heinl Radio Business Letter, in the story of the Telegraph Communications Coat hearing, Mr. C. P. Cooper was incorrectly identified as appearing for the I. T. & T. Mr. Cooper is an A. T. & T. VicePresident and testified in behalf of that company. The error originally appeart in an official press release of the National Recovery Administrati and we failed to catch it. R. D. H. xxxxxxxx - 10 - 5/22/34 WTMJ WINS LIBEL SUIT The Milwaukee Journal and Joseph D. Beck, Commissioner of the Wisconsin Department of Agriculture, won a $100,000 libel suit brought by Walter Singler, President of the Wisconsin Co¬ operative Milk Pool and picturesque figure in State milk producers strike last May, when a circuit court jury at La Crosse, Wis. , late Tuesday returned a special verdict holding that Beck's radio speech over the Journal's radio station, WTMJ, last May 15, was a fair comment on the acts of Singler. The trial started in LaCrosse May 7 on a change of venue from Vernon County Circuit Court. Singler charged that Beck’s speech was inspired by dislike, malice and hatred and that the attitude of the Journal was unfriendly. Beck denied that he had called Singler a racketeer and gangster but had liken¬ ed his methods of those of the gangster. Testimony showed that the policy of WTMJ is to permit public officials to use the Journal radio station without charge to discuss public questions and that Beck's speech was in that classification. In his closing argument, attorney J. Gilbert Hardgrove, for the Journal, asserted that the right to free speech was the issue to be decided. He termed the statements on the radio fair criticism and said that Singler as a quasi public figure, was a proper subject of comment. Hardgrove also pointed out that the Journal had differed with Singler on farm and dairy questions, but that it had a right to do so, and charged that the suit was brought to force the Journal's silence. The jury answer¬ ed all nine questions in a special verdict in fa„vor of the defend¬ ants and decided Beck's speech was fair comment on the acts of Singler and that Singler was not libeled thereby. Under the law the jury was required to fix as a guide to the court the compensatory damages it would have awarded Singler had he been libeled, and such damages the jurors fixed at $10,000. XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (May 22, 1934] NEW, Oregon Radio, Inc., Salem, Oregon, C.P. for new station, 1370 kc. , 100 watts, daytime. Facilities: half of those assigned to Station KOOS; WJIM, Capital City Broadcasting Co. , Lansing, Mich. , modification of C.P. to extend commencement date to June 20 and completion date to Aug. 22, 1934; WSAR, Doughty & Welch Electric Co. , Inc. , Fall River, Mass. , license covering move and changes in equipment, 1450 kc. , 250 watts, unlimited time; WIBM, WIBM, Inc. , Jackson, Mich. , license covering local move and changes in equipment, 1370 kc. , 100 watts, specified hours; 11 : - . . ; . ! ■ ' • . SOf, • ■ &£a'fK>os .. • »i nlB - v- Msjjq'kT dix/e . ■ U ' . i .sy-icio sa ■< - •*"> . . > ; ,? d ,z ' >1 XJ/s i . . ■- ' . . . • rro .... ./■ •. 3 1,0 ? I ' . ■' ■ ■ . ' , . '■ ■" ' . ’ ' ' ‘ ■11 ‘-.i - oq .vlt taqd ' ' o V ■ '■ ■■ 3 v. 8 ■ : - . , ' ■ ... . . .. ; ;j8.vf . • : . ■: OS ■ : . . - : : ' j . .V ' . -30.il' '.J ‘ ,< ' 0.i •j'l..: t't d 'JJ'tfd'lf 38' . [ f fjn • d f> p ■: •' .-.j ■*. • j ■ i -■ j.i • ' . t * ^ q rtlrfrf i *;* • . i,-;* i, •. v ;; ;qoq;q r, :• y; i\ .•rcri nr t ;J. - J 13 X ' .' • ' tjs, 'ri . f " . MMa . • ■ XsJtnqar. v. s i ... v.» . 8 3, ... ". ; .1 . u ■ ■ hf. - l Jn i iv * o i ■ wen 'to'x ; OSiH . \l\) . J X«i« y ■ .! ft • ^ 1 £*+*■•** .i, 'I.r ■ , -i v ' q 1 ! :1 ;I: ■ • • ,Di.: • ''.;L : [ . no Id ' ... I u . din.,: XaL t ; daw d-h • •*... ; b*i if o CVS I tsmsj 5/22/34 WMBH, W. M. Robertson, Joplin, Mo. , consent to voluntary assignment of license to Joplin Broadcasting Co. ; WALA, Pape Broadcasting Corp. , Inc., Mobile, Ala., modification of license to change fre¬ quency from 1410 kc. to 1380 kc. , change hours of operation from simultaneous day WSFA, sharing night with WSFA to unlimited time, 500 watts; KOIN, KOIN, Inc., Portland, Oregon, C.P. to make changes in equipment and increase day power from 1 KW to 2i KW, 940 kc. , 1 KW, 2t KW, LS, unlimited time. Action On Examiners' Reports (May 18) KFAC, Los Angeles Broadcasting Co. , Inc. , Los Angeles, Cal. , modification of license to increase hours of operation from one-half time to unlimited on 1300 kc. , 1 KW power, sustaining Examiner George H. Hill. Order effective June 1, 1934. Ratifications Action taken May 14; KMVI, Radiomarine Corp. of America, New York, granted 60 day authority to operate aboard Motoryacht "Puritan", pending action on formal application; frequencies 375 to 500 kc. , 5500 to 17000 kc. , 50 watts; KDUW , Same Co. , granted 60 day authority to operate additional 50-watt transmitter aboard Chattanooga City, frequency range 375 to 500 kc. ; Action taken May 15: WHFU. Bludworth, Inc., New York City, granted 60 day authority to operate 50 watt transmitter aboard yacht "Sequoia", frequency 2738 kc. ; Action taken May 16: KFZV, Radiomarine Corp. of America, New York City, granted 60 day authority to operate aboard yacht "Verna", frequency 5500 to 17000 kc. , 200 and 150 watt transmitters; WHFK, Union Fish Co., San Francisco, Cal., granted 60 day authority to operate aobard. "Pirate", frequencies 2738 kc. , 10 watts. Action taken May 17: KGEZ, Donald C. Treloar, Kalispell, Mont. , granted special temporary authority to operate station without approved frequency monitor for period of 10 days; WSBN, Radiomarine Corp. of America, New York City, granted 60 day author¬ ity to operate aboard "Leviathan" pending action on formal applica¬ tion, frequency range 2000 to 17100 kc. ; WIDA, Same Co. , granted 60 day authority to operate transmitter aboard vessel "Santa Inez", pending action on formal application; KUGG, Same Co. , granted 60 day authority to operate 50 watt transmitter aboard vessel "Oakman", frequency range 375 to 500 kc. ; WSAR, Doughty & Welch Electric Co. , Inc. , Fall River, Mass. , granted extension of program test period for period of 15 days. XXXXXXXX 12 - tZo\ o tn-QQttoo .0 ' ‘ , ..r: r :jgR M ,W . , Ltlqol y-fi -■ ' > - r..’ J. -0 nOl-TBOl \ ■ t j i-T^Xa xj- i - ' ' ' ... G.v W t 00 X alu jpe t 4 ld-,m |g ' ■ : - .>•* - ■ 0. • ' * £ s '■ 3 a-'-::: ft. i oX . . : ' J : s Xi o • i/a , • ..'J'fOC no h , ::.L ■ a" .. . r. : - ■ ■ *. r .t. . ■ . .. . ••„-;••• ; ~q ‘ , ' > .:’i IX j"tO . /H.n - ... r ,05 aC;X . JiA ' . . J no d j '■ . ■ ■ ' ' * ‘ - ■ ' ' ! ■ .* ‘ " 0 •: < ' '• ro . X'l;-! i V. : ; t . ' . fLO S V • ; .... * XC “ • . • . ■' ; •. * :/ ‘ ' j • ‘ • - X . . V •. *• i , . o ■ l f. \Ol .OqBO'OB . qr, . q * 0 W '8^ ox X -4 v- - / £> < l .0 O f li • x> - ■ .' O t * '• ./■'.'XXX, ttX . • -p; : o: >QCfS 10 .'.'la/ 3 fj ) Xc a ; . : • "• ^ :. : . ■ 0. j. ' ri 0 j: IS dosjoC '!■■■ : J- 4- e: .. . B&V ' ' ■ 3V 3 •' y. 0 ; 00, O ' o a - ■ • • ■ , t.H . . ' X X X X V X Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Not for Publication INDEX , TO ISSUE OF MAY 25, 1954. Sees Television Only As Well Developed Experiment . 2 Radio News Agencies Make Big Claims . 4 Improved Conditions Result In Sales Of Radios In Peru . 5 Wooden Base For Steel Antenna Tower . 5 Newspaper Continues Commission Attacks . 6 Starts Campaign For Better Antennas . 7 House Communications Bill Still Sidetracked. . . N.A.B. Girds Itself For Copyright Treaty Fight Question Raised As To Pioneer Inter-City Radio Services . 9 Temporary NRA Radio Wholesale Code Members Appointed . 9 Business Letter Notes . 10 Two N. Y. Radio Editors Sue Eddie Cantor . 11 Declares Way Of Idealist Hard . 11 Decisions Of The Federal Radio Commission . 12 No. 726 CD CD SEES TELEVISION ONLY AS WELL DEVELOPED EXPERIMENT Television is in an advanced experimental condition at this time according to the Advisory Committee on Engineering Devel¬ opments of the National Advisory Council on Radio in Education in a booklet, "Present and Impending Applications to Education of Radio and Allied Arts" just published. "Transmitting stations capable of giving reliable tele¬ vision service over a considerable area have not yet been estab¬ lished nor have there been provided, on a commercial scale, receivers which give a clear, bright picture of an acceptable color, adequate detail, satisfactory size, freedom from flicker, sufficiently wide angle of view, and requisite steadiness of posi¬ tion", the report of the Engineering Committee, of which Dr. A. N. Goldsmith is Chairman goes on. "The problems involved have been and still are under active investigation, and there is a likelihood that, within the next fdw years, equipment of this sort will be commercially available and that at least a moderate number of tele¬ vision broadcasting stations will be in operation to supply pro¬ gram material to those having suitable receiving equipment. "The problem of network syndication of television pro¬ gram is in a less advanced condition . It is uncertain whether wire line facilities capable of carrying television programs will be developed, and these do not exist even experimentally at this time. "The Federal Radio Commission has made no provision for television beyond assigning a limited number of fairly wide bands in the medium short-wave region, together with certain wider ultra¬ frequency wave bands, for experimental use." "The value of television for educational purposes will be largely dependent upon the amount of detail which the picture can carry, as well as upon the ingenuity and intelligence used in the planning of educational programs." "The system of broadcasting operating in America is widely heralded by its proponents as the best in the world, at least from the technical standpoing", Levering Tyson, Director of the National Radio Advisory Council says in a foreword. "This isn't the place to argue whether that statement is correct or fallacious. It is enough to point out that nowhere in the world is there so elaborate a system and it is obvious to anyone who is only slightly familiar with broadcasting in this country that the system is operated with a marvelous degree of precision and effect¬ iveness. This result is accomplished in spite of a variety of com¬ plicated factors. 2 - 3 l '■ ' d flO.i I n r nc M n - . • . ■ k oid f ■ l . m i s ct . ■ : : • (oiii . ■ . j mo.i . ' J . ' • ' ■ • ' : ; - ’•/ l ,e . ■ la ' isc sj : a ' tq i i ^ ■ ■ * ■ - alcX&X : oooa ns to e'ljj.toiq ' .t >.'0'' ; ..... T. . ' ' ' . . - iflOD-St VO* ,-6-'.X8 a a a x X a o X a 9 i i -■ i/p j V - . - - . ' •' ' f-BVt ■ vKr " .< b j : 2 . : ■ ■■ 3 : , t '• ' £ l3J . ‘ 'V.; ' / ■ ■ : . - ; I f, •. ■ -• pv if [ [ t ■ id )f; - ■ o - : .yslo j to -::c ajboX'xeonx; si il f • ■ > V . - ” TibL "h& OpdX _ . . ,• | . " ' : ‘ ' ... 9C1 ■' , A Hi : ' : ■1 . ■; y ' rifio gmJoXq srfi d jiU ai . , ■ ' - - ... rxesni viix noqu a/ CXsv , s . tc ■ lalq iiiA : O rfOj . . ; . . .. . " " li ' : "r r(S( r . - t-, ; . jji 3.V.; mo 'it X:: :vX I j -i-P ' :: ■ 'A -7 : ■■ . • • ' ' . bb , i ' ■ •; " ■. ■ . ... | . j . , . . f . . ' ' ’ ' ' ■' ' '■ ■ i If . ’• ; . ' ■ V ■ 1 ,u ■ ■ ...... .{ 5/25/34 "A great deal has been written and said concerning broadcasting by many people who know little about the extremely complicated electrical phenomenon which is radio. The Council presents in this Bulletin a compilation of data, collected and interpreted by a group of men who, because of training and exper¬ ience, know more than most and as much as anybody, about radio¬ telephony and some of its allied arts. "The individuals who collaborated in the preparation of this bulletin have agreed to serve as members of one of the Council’s most important committees. This is the first report of the Committee and presents information and opinion which should prove extremely valuable. In the field of educational broadcasting there has been considerable discussion and not a little misinforma¬ tion spread about some of the matters here covered. That this Committee is willing to speak frankly about questions over which there is controversy - High Power, for example - is an index not only of the confidence this group of men have in their collective opinion, but of their courage as well. The fact that the personnel of the Committee represents a wide variety of interest and respons¬ ibility guarantees diversity of opinion. In spite of this, agree¬ ments were reached on all subjects treated, which fact by no means lessens the authority of what is included in the final text." The subjects treated in the booklet (published by the University of Chicago Press, Price 75 cents) are: Radio Telephone Broadcasting; Synchronization of Broadcast Transmitting Stations; Electrically Transcribed Programs and Their Syndication; Facsimile Broadcasting; Television; Short-Wave and Ultra-Short-Wave Broad¬ casting; Broadcasts Over Wires (including "Wired Radio"); Sound Motion Pictures in the School and Home, and The Gosts of Broad¬ casting Stations. The members of the Advisory Committee on Engineering Developments in addition to Dr. Goldsmith are: Dr. W. G-. Cady, Wesleyan University, Middletown, Conn. ; 0. H. Caldwell, former Federal Radio Commissioner; E. K. Cohan, Columbia Broadcasting System; Lloyd Espenschied, High Frequency Transmission Engineer, American Telephone & Telegraph Co. ; W. E. Harkness, Electrical Research Products, Inc. ; Erich Hausmann, Brooklyn Polytechnic Institute; John V. L. Hogan, Consulting Engineer, New York; C. W. Horn, National Broadcasting Company; L. M. Hull, Radio Frequency Laboratories, Inc.; C. M. Jansky, Jr., Radio Engineer, Washington, D. C. ; R. H. Manson, Vice-President and Chief Engineer, Stromberg- Carlson Telephone Manufacturing Co. ; Dr. E. L. Nelson, Bell Tele¬ phone Laboratories, Inc., and R. H. Marriott, Consulting Engineer, New York. xxxxxxxx 3 < - 5/25/34 RADIO NEWS AGENCIES MAKE BIG CLAIMS "The struggle is Being made principally by independent news-gathering organizations, who see a vast new field for enter¬ prise in news broadcasting. These are being abetted materially by broadcasters who are dissatisfied with the allotted budget of news some of them get now from the Press-Radio Bureau, created by a compromise among newspapers, press associations and the National and Columbia chain radio stations, according to the Editor and Publisher. "A survey conducted by Editor & Publisher this week indicates that in addition to the Press-Radio Bureau, two major organizations are thriving at this date in the dissemination of news to broadcasters and with a basis in fact, are foreseeing a bright future. "They are: (l) Transradio Press Service, with head¬ quarters at 342 Madison Avenue, New York, and (2) Radio News Ser¬ vice of America, with headquarters at 369 Lexington Avenue, New Yorl "James W. Barrett, editor of the Press-Radio Bureau, said this week that his bureau, in conjunction with the coopera¬ tive bureau at San Francisco, is serving 160 radio stations, or approximately one-fourth of all the stations in the country. This indicates a healthy growth since the Bureau started March 1, when 125 stations used the service. "Herbert Moore, the aggressive president of the Trans¬ radio organization, told Editor & Publisher his agency was giving complete world news coverage to 23 radio stations, 'and all of them big ones. ' "Ivan Johnson, the visionary head of Radio News Service, which uses short wave broadcasts, says he has 100 clients, some of which, he admitted, were subscribing on an experimental basis." Marking a vistory for the Yankee network (which was established by John C. Shepherd III, of Boston) news service in its controversy with newspaper correspondents at the Massachusetts State House in Boston, a Joint Committee on Rules of the House and Senate passed a resolution which gives the Radio News Service an equal footing with the press in the matter of gathering news at the State Capitol. X X X X X X X 4 aV-.-.U^ c.; 1 J/( ij’-DA SViSPi OIuAH l . ■<- . . . . ; xbjBcrcc . * . tMv Bi ■ :. • 'i • . • . - ' ' ■ . . . . : , • ' ' • • - ' ; ) wii.e , . ; l: ,:S3 1 5 8^ -a ... ■ : ■ ; * \ * '' *'■ <**; • • r Ur- . v. • ■ ■■ - ■■ci V'bp •' &» ‘ ;; ■■■: \ , ■ ‘ ’ ; ; ' : ■ X,;\- T '. • • ■■ -r • ■ . • f . ■ ■. ■ 1 ' T’ ' -■ rv 9.YJ ■■ ■ • - ' 3 'CX.OXs'X \ : ' : r ... ■ ; -'3,. . ' ' !! ■ t ' k ' ■ . , \ •i . '■ ■ . ■ . : . ’ : :• • ' B ■ L ’ - ■ : • '. o . 0 : ■ . " , o ■ ■ v;-.. ; :■ ; \\ ■ 0 .. . ■ ; ■ 5/25/34 IMPROVED CONDITIONS RESULT IN SALES OF RADIOS IN PERU As a result of improved economic conditions and more favorable rates of exchange, sales of radios have registered sub¬ stantial improvement in Peru during the last twelve months, according to advices to the Commerce Department from Commercial Attache Julian D. Smith, Lima. Because of the optimistic out¬ look for the 1934 cotton crop, it is pointed out, prospects for increased radio sales during the current year appear to be dis¬ tinctly favorable. During the calendar year 1933, the report shows, 1400 radio sets were imported into Peru, compared with 848 in 1932, an increase of 65 per cent. Stocks in dealers' hands on December 31, 1933, were smaller than on the corresponding date of 1932. The Peruvian radio trade, it is pointed out, is pract¬ ically dominated by American manufacturers. In past years, the Dutch Phillips company was a strong competitor but the products of this company have more or less disappeared from the market. Little competition is offered by other European manufacturers and there is very little domestic competition. The bulk of radio sales in Peru consists of the small super- heterodyne all-wave sets, the report states. Sales of short-wave and long-wave instruments with short-wave adapter have decreased. At the present time, over 90 per cent of the sales are of all-wave sets. XXXXXXXX WOODEN BASE FOR STEEL ANTENNA TOWER The erection of WEBC's new single tower, which attains a height of 350 feet above Lake Superior flats at Superior, Wis. , marks another achievement for modern timber connectors. The new shaft to hold WEBC's vertical antenna, was constructed by placin', the station' s old 230-foot steel structure upon a new 120- foot tower built of wood. This wooden base is 35 feet square at the ground and tapers up to 12 feet square at the point where the ole tower is joined. Plans for the WEBC tower were provided through the National Lumber Manufacturers' Association's research and develop¬ ment agencies, and the tower was built by Roland C. Buck, Inc. XXXXXXXX 5 5/25/34 NEWSPAPER CONTINUES COMISSION ATTACKS The Chicago Tribune keeps hammering the Federal Radio Commission in opposing the creation of a Communications Commission, In an editorial the paper said: "The RadioCommission is the present model of the control sought over the wires. The articles of Arthur Sears Henning, Washington correspondent of the Chicago Tribune have revealed how arbitrarily politics has dealt with property rights and what influences have prevailed from time to time to favor one applicant and injur another. There have been some conscientious men in the radio control, but there is also a determination to bend this virtually helpless medium of communication to governmental will and make it serve governmental purpose, at its peril if it doesn’t. "The channels can be taken av;ay upon any pretext the administrators care to set up, and Mr. Henning has shown how in- consistent one pretext may be with another. Pull and punishment are factors in regulation, and warning has been given that the character of the broadcasts, an admonitory phrase, will establish the eligibility of the licensee. An extension of this system to other means of communications would carry premonitions of the worst sort. " As a conclusion of a series of articles Mr. Henning recently wrote: "Columbia has a long record of unusual favors from the Radio Commission going back several years, but becoming more pro¬ nounced since the advent of the Roosevelt administration. One of its Vice-Presidents is Sam Pickard, a former member of the Com¬ mission, who resigned February 1, 1929, and went directly to Columbia at a high salary on a long-term contract. "While Mr. Pickard was a member of the Commission, WKRC, a Cincinnati (Ohio) broadcasting station, was able to procure from the Commission an exceedingly favorable wave length, which was transferred from an inferior assignment. It was charged that this was done in violation of all sound engineering considerations, for .it immediately caused destructive interference with other station on the same wave length at St. Louis and Buffalo. "On June 15, 1929, the Commission, without a hearing or a notice to anyone, increased WKRC's hours of operation to unlim¬ ited time, and on December 16 increased the power of the station from 500 to 1,000 watts on an ’experimental’ basis. The power has never been reduced, although at a subsequent hearing interference was conclusively shown by the stations affected. H. A. Bellows, Washington representative of Columbia, says that since the instal¬ lation of a directional antenna by WKRC there has been no inter¬ ference and the protests have been withdrawn. This is disputed by representatives of the complaining stations. 6 • . . • ' ; ' .. . . : t ■ .. ' '■ : r Xi ’ 1:0. 0 . f ■■ •• • ill - o . . to : ■ - . .g • .0 n M isr>?o ' 5 ; ' .■ • " ' • • . to i . J oq. .. ■ l ‘ A. ■£ - belisvs'iq a vs 0 ' X 7 • . ■ cis o i am .. Ju .- S .1 :! J Gi‘ ! f'f Gk ry' •: ■ ’■ ■ vS- o cH . 1. x*. .£• < vi ’ o q’liiq lx- 4 Hi .... \,£.’ OCT £iJ . ■ r.0 ■ •• ; :v. 0.7 r • >. 7 X '7. ; i-i ..'.bp. ' ' ; ‘ i v.t?.in J frxq e/io- chi. r-.. ' ■ • - , .0 ' d 6 ni. . vB * ' . £ . vi - i-uU .3 . . .. ■ • ' ;* , . . - \ 'o , - . .. . • " M: ■ . ■ : t o • : • da I ' ;ni . : ■ . : - ; .0" is • .. . .• i B TQd ■ 1 £• : ; o ... ■ ' r* <.6.t « ' • • 1 •» '■ f ■ f j ... »** ' ;. | i ' 7£0’. ,’i . ' :‘j -7 •n 0 1, 4 . ‘tQ £ ■‘so . ..j . ‘ ' . ' " " ’ - ' ; 00 ■ * ^ • j . .; y £ • - ■ • ■ 6 : v , • .; : ■ I /g • : •- . v .'o \ V • 5 si \ * . ■ . . 7 • . " 0 jT» ■: I . X ■i • J • : . ' . ' : ' : V. d ... J. ' ...' . ' V ’ no ' ' .: •; ■ • < . 0 ' • . ■ " - . .rtf • ■ i ; I,i • V , •: ,■ ■ ' ; v.;' :.0 viXo:;.iC>0: x; •T V .. ' : i ' •• ■>. . • ; ■ . l\ ■ • . ' : •' ■ • • '• : ’ , 3 .no.r-t« j-'o ■ • ■ • •. *. t . v .. •t - • J ' : . i ;Vj . 5/25/34 "In the summer of 1929 there was formal transfer of the ownership of WKRC to Mr. Pickard and J. S. Boyd, a lawyer who fre¬ quently had handled radio cases before the Radio Commission and had been in particularly close contact with Mr. Pickard while the latter was a member of the Commission. It is not known when Messrs. Pickard and Boyd purchased the station or how much they paid for it. "It is known, however, that soon after the Commission granted WKRC the 100-percent increase in power they sold the sta¬ tion to WKRC, Inc. , which is virtually a 100-percent subsidiary of the Columbia Broadcasting System. Columbia is said to have paid approximately $300,000 for the interest in the station of Messrs. Pickard and Boyd. " Commenting upon the "domination" of Commission by the President, the Washington Post said: "President Roosevelt has insisted upon bringing all of the independent, bi-partisan commissions under his influence. Through this arrangement he could completely dominate both divi¬ sions of the Communications Commission by simply appointing a chairman who would be faithful to his point of view; for contro¬ versies between the two members of either group could be settled by the chairman's vote. "The apparent determination of the President to dominate all of the bipartisan commissions, thus making them amenable to political influence, is in a large measure responsible for the widespread skepticism concerning further Government regulation. So long as this attitude prevails any attempt to extend the power of the Administration over telegraph lines and radio channels will be regarded with suspicion. " XXXXXXXX STARTS CAMPAIGN FOR BETTER ANTENNAS A movement to inspect and improve antennas is urged by 0. H. Caldwell, former Federal Radio Commissioner. "For years an antenna has been any old piece of wire strung up any old place with any old kind of insulation. And for years the increase of man-made static has accelerated", Mr. Cald¬ well writes. "The year 1934 will be a year of tremendous public interest in short waves; late in the year may see the first high- fidelity receivers. Both shortwave sets and high-fidelity, wide range sets suffer more than broadcast reception from natural and man-made static. Short-wave signals are weak and may come across thousands of miles of space, high fidelity receivers will pass to the loud speaker tones (and noises) now lost in the narro-w-band receivers universally employed. "Already the antenna problem has become acute. Set mann facturers are encouraging listeners to use two antennas; a high, long wire, well insulated and brought to the receiver through a shielded transmission line; and another high, shorter antenna, brought to the short-wave set through a transposed lead-in. " X X X X X X - 7 - 5/25/34 HOUSE COMMUNICATIONS BILL STILL SIDETRACKED Consideration of the Communications Bill by the House Committee on Interstate and Foreign Commerce is still temporarily on the siding. The Committee is now considering an amendment to the railway labor act and no one seems to know exactly how much time will be taken up by this bill or when the consideration of the Communications Bill will again be resumed. Although the time of adjournment is believed near, the hope is still expressed that the Communications Bill will be passed this session. XXXXXXXX N.A.B. GIRDS ITSELF FOR COPYRIGHT TREATY FIGHT The National Association of Broadcasters through Oswald F. Schuette will vigorously oppose the ratification of the Copy¬ right treaty and the bill introduced by Senator Cutting, of New Mexico, to revise the U. S. Copyright laws to the treaty. Those in favor of ratification will be heard by a sub-committee of the Senate Foreign Relations Committee, Monday (May 28) and those against it, including the Broadcasters represented by Mr. Schuette, will be heard Tuesday. The subcommittee will consist of Senator F. Ryan Duffy, of Wisconsin; Senator Frederick Van Nuys, of Indiana, and Senator Simeon D. Fess, of Ohio. Ratification would assure to American authors and other producers of copyrightable property, automatic copyright in the 53 nations which comprise the Berne Copyright Union. The Cutting Bill, which would enable the U. S. to enter the Union, provides that the ,f rights shall include the exclusive right of the author to communicate his works to the public by any system of broadcasting; and the author of any copyrighted works, even after the assignment of the copyright of such works shall at all times have the right to claim the authorship of his work and the right to oppose every distortion, mutilation or other modification of the said work which might be prejudicial to his honor or to his reputation, as well as the right to resist the publication and the performance of the mutilated work. " XXXXXXXX' 8 - * » .• . lo -‘fJO £ .. _ . . ... • ; ■ . . ; '-7 ■ 1 v,3‘-v, ■ " 30.0 • -0 D. .f * j1 t- ^ r % 4. V4 . C' . ■ C '-O'-' : . ’ ' , , . ir; : ■ IK , Ui'! iO: ;• A i'o : •; {G ■ -■■ ■■ ■ :• :• • • .• .£.' • ■■ ' ' / •• ' f - - t r- . . - • • •' ' ... ." •: ■■■- : ; 10 . 1 ' * . " . . - • C< ' . • ■■■ :*• ' : {/': ■: . ■ ’ , • • ' ' . ' - j ■. n : : • ■f t>',‘ • ■ i 0 BI8<£$Y3 vy:; » • j . : ' KM? ' E ' 5 ; ■ ' - ■ ' ’ i.L I V.JC .. y , ■ ■ : f- • ■ .; .f. r: 5/25/34 QUESTION RAISED AS TO PIONEER INTER-CITY RADIO SERVICES We are indebted to Arthur A. Isbell, Manager of the Com¬ mercial Department of R. C.A. Communications, for the following: "In the interests of historical accuracy, exception could be taken to that portion of a paragraph on page ten of your May 1st issue reading, ' Mackay Radio which was not only the pioneer in inter-city radio service', because there were inter-city wire¬ less telegraph services in the United States long before the pre¬ decessor of the Mackay Radio, the Federal Radio Telegraph Company of California, was organized. "On my desk there is Vol. 1, No. 30 of 'The Wireless', dated Avalon April 29, 1903, captioned 'Published by the Los Angeles Times the only newspaper in the World Publishing Sure- Enough Dispatches Transmitted by Wireless Telegraph, Issued Daily at Santa Catalina. f "The left-hand column of the front page has a caption reading 'News of the Morning by Wireless Telegraph'. (Bona-fide) special dispatches direct to 'The Wireless' at Avalon, sent over the Pacific Wireless Telegraph Line across the channel dividing Santa Cataline Island from the Mainland. ' "The Foreign News is headed by the following paragraph: 'By Cable under the Atlantic; thence by Western Union Telegraph line across the Continent to Los Angeles; thence from the Times Office to White's Point, San Pedro; thence by Pacific Wireless Telegraph to Avalon. ' "In 1905 the Providence Journal published a paper on Block Island, Long Island Sound, the news to which was sent daily from Point Judith, by wireless telegraph. "The Pacific Wireless Telegraph Company conducted com¬ mercial wireless telegraph services as early as 1905 between the following cities: Seattle, Port Townsend and Victoria, B. C. ; San Francisco and Oakland. " XXXXXXXX TEMPORARY NRA RADIO WHOLESALE CODE MEMBERS APPOINTED Announcement was made by the National Recovery Adminis¬ tration of the appointment of three temporary non-association mem¬ bers to the Divisional Code Authority of the Radio Wholesale tra^e, to serve until June 12, when, it is expected, their successors w± 1 be chosen at the annual convention of the trade. The members appointed by the Administrator are D. H, O'Brien, Graybar Electric Co., New York, N. Y. ; George E. Hull, Parks and Hull Appliance Corporation, Baltimore, Md. , and W. F. O'Connor, Southern Whole¬ salers, Inc. , Washington, D. C. XXXXXXXX - 9 - 5/25/34 BUSINESS LETTER NOTES E. C. Mills, G-eneral Manager of the American Society of Composers, Authors and Publishers sailed last week to attend an international convention in Warsaw, Poland, of performing rights organizations. Mr. Mills will be gone four or five weeks. Invitations have been issued by the Banquet Committee, of which Paul B. Klugh is Chairman, for the RMATenth Anniversary banquet to be held in the Hotel Stevens, Chicago, Tuesday night, June 13th. The dinner calls for formal dress, and the price is $5 per plate. John H. Bachem, of the Eastern Sales Department, has been made NBC Assistant Eastern Sales Manager under Donald S. Shaw, Manager of the department. F. E. Spencer, formerly of NBC’s Local Sales, will also assume new duties effective immediately. He will work with Mr. Shaw and Mr. Bachem on the coordination of transcription and local business for the Eastern Sales Department. James V. McConnell has been assigned to assist Edgar Kobak, Vice-President in Charge of Sales, and Roy C. Witmer, operations head for all NBC sales divisions. Magnovox Co. , Ltd. , and Subsidiaries - for 1933: Net income after expenses, depreciation, special development costs and other charges, $84,860, equal to 7 cents a share on the 1,283,666 capital shares, contrasted with net loss of $233,845 in 1932. The Supreme Court has declined to review the cast of W0Q/ Kansas City. The Commission (Radio) allocated the facilities of this station to Station KFH, Wichita, Kans. WOQ, appealed to the Court of Appeals of theDistrict of Columbia, but the D. C. court upheld the decision of the Commission. Walter E. Myers, manager of Station WBZ, Boston, has been appointed to the post of National Sales Representative of the NBC in Boston. Simultaneously it was announced that J. A. Holman, pioneer radio executive, had been named Manager of WBZ. Myers has had wide experience in both the newspaper and radio fields, and is president of the Boston Advertising Club; Holman in the old days became Manager of Broadcasting when the A. T. & T. inaugurated radio service through WEAF. Recently he has been an official of the New York Telephone Co. XXXXXXXX 10 5/25/34 TWO N. Y. RADIO EDITORS SUE EDDIE CANTOR Two radio commentators, Ben Gross and Abe Greenberg, both connected with the New York Daily News , have started separate suits for $50,000 damages each against Eddie Cantor, Radio Guide , Moses L. Annenberg, Moses Koenigsberg and Herbert Krancer, the latter three officers of the radio fan weekly. All were served save the comedian, who is now in Hollywood. Cantor's published statements allegedly impugning the integrity of the New York radio editors is back of the suit. The interview wds published in Radio Guide. ,TIt precipitated sundry squawks from almost every radio editor, all of whom have expressed themselves variously as feeling that Cantor is privileged to his opinions anent the radio editorial fraternity, but when he specifically labels all as being dishonest 'with one exception', it is too much1', says Variety. "Some are frankly unconcerned either for reasons of editorial policy (where¬ as the News is known to be backing up Gross and Greenberg soundly) or because they feel it's another means of giving Cantor publicity which they are loath now to do. "The 'excepted' radio editor has been identified as mean¬ ing Louis Reid of the New York American. Cantor is quoted as hav¬ ing so identified him. In radio circles Reid's editorial attitude hasn't been any too favorable to Cantor. "The Cantor vs. N. Y. radio editors imbroglio is nothing new. Cantor has openly charged that the newspapermen and the radio press agents have been working too much hand-in-hand. Cantor's attitude is that the scope of the radio showmanship as applied to merchandizing is too sweeping to be limited to a strictly Lindy's restaurant perspective and has taken exception to the limited Broadway slant on radio reporting." XXXXXXXX DECLARES WAY OF IDEALIST HARD Conferees of the recent educators declaring for strict government supervision to insure "the best possible program mater¬ ial" brings the following comment from the Editor & Publisher: "Thus is raised again the eternal question of what con¬ stitutes 'good program material.1 The lowbrow and the highbrow will never meet. Conduct of radio broadcasting involves many pro¬ blems that are inherent in the making of popular newspapers, maga zines and movies. The lures of profit at the expense of what the Washington conference called 'culture' are many and every day's practical experience is composed mainly of compromises. This is not a spiritual age, the mass is not notably discriminating or receptive of inspirational material. The way of the idealist is tough. The only sure plan we know of to maintain standards of wholesomeness, independence, education and 'culture' is to keep high-minded, courageous people in charge of these mediums and expect them to uphold a fair average. " YYYYYYYY -11- ■ . -J ' ■ ■ ■ , , : ijd L ■: ' . . • . SO . ’ • , . W-IUS? It j ■ t tl iC ■ - . • ■ ' . i I j..U. ^ -LG . .■ ;J-‘; .J J-. : toe . ; • ’ ' • ni i si. . . • O .... J •>' i. r rs • ■ SVlS • ■ I : ' , £ tVi.) { .. . ,..r »• • *> r . *vj 4 ^ •.*. 4 ••t-V* ‘ - £ o' £ I S - ,/ - f ■ . ' ' ' ; ' " • JttWO { . _ ■■ • • • . ' : o ; . '• • !-• : - . ■ jr : - -■ "■ ' ’ . ' ’ ■ _ : - ' • - .i o , •' - ; g ■. ■■ : ■■ ‘ - ■ - • . ■ .i*V •. v‘.i. - J.-t v V * •. . • ‘ / j. ‘ : ' ' ' . J. s -3* !'i ■ ,\d v . • V,v - • ■ - '■ -j ac • ■ ... X ■ ■ •• . j1. • . . • . .. g o , ' . • - •’ 'i G I; ,'V . ' : V . f j f .' 1 0 .D £>r. '£ C ■ '.) . s ■■■■ : f- -- • • ■ - I .. - ■ • • .. qo ■ . :■ -V ■■ . : . . ■ ■ ■ . ■ ' . ... .... • L-; . . ■ C ,V t ^ t, • jy.i • 1 ••• j . i, • ■ VGxi i l.i ■■■ ... . ; . - . is ■ . .. ii"I i '• 8 v ■■ LX/. . ; i g.V.-j • ' : r.i-o J . ■ i. -- ■. . . ■ ; .Y • ■ ■ : . ' 2 ■ : ' • • . . - • • - ' ... .. . ' . . _ ■ . - x. • . .... ■ ' .. ; . - -U , ■ , :C : 5/25/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (May 25, 1934) KOL, Seattle Broadcasting Co., Seattle, Wash., C.P. to move transmitter locally in Seattle, and make changes in equipment; application to increase day power from 1 KW to 2j> KW set for hear¬ ing; WCNW, Arthur Faske, Brooklyn, N. Y. , modification of C. P. extending commencement date to May 1, 1934 and completion date to July 14, 1934; WLNH , Northern BroadcastingCo. , Laconia, N. H. , modification of C.P. for approval of transmitter and studio sites in Laconia, changes in equipment and extension of completion date to Sept. 2, 1934; WJEM , Britt A. Rogers, Jr., Tupelo, Miss., modification of C.P. extending commencement date to immediately and completion date to Aug. 1, 1934; WENC , Americus Broadcast Corp. , Albany, Ga. , modification of C.P. extending completion date to July 5, 1934. Also, KWYO , Big Horn Broadcasting Co. , Sheridan, Wyo. , modification of C. P. to make changes in equipment; WQDM , A. J, St. Antoine & E. J. Regan, St. Albans. Vt. , consent to voluntary assignment of license to E. J. Regan and F. Arthur Bostwick, d/b as Regan and Bostwick; WSFA, Montgomery Broadcasting Co. , Inc. , Montgomery ,Ala. , modification of license to change hours of opera¬ tion from simultaneous day with WODX sharing night, to unlimited; KFXD, Frank E. Hurt, Nampa, Idaho, renewal of license, 1200 kc. , 100 watts, unlimited time, application for this station’s facil¬ ities was dismissed at request of applicant. Action On Examiner's Reports KROW, Educational Broadcasting Corp., Oakland, Cal., granted modification of license to change hours of operation from sharing with KFWI to unlimited; to operate on 930 kc. , 500 w. nigh" 1 KW day; order effective June 1, 1934. Examiner R. L. Walker sustained; KWQ, Pacific Agri. Foundation Ltd., San Jose, Cal., dismissed application for C.P. to make changes in equipment and increase daytime power from 500 watts to 500 w. night, 1 KW day, 1010 kc. , unlimited time, sustaining Examiner Walker; KJBS, Julius Brunton & Sons Co., San Francisco, Cal., granted C.P. to make changes in equipment and increase power from 100 w. day to 500 w. day, 1070 kc. , 12:01 A.M. to LS, order effective June 1, 1934, reversing Examiner Walker (KFWI’s facilities in quota units). Miscellaneous Mayor & Board of Alderman, Newport, R. I. , granted peti¬ tion to intervene and be a party to hearing of application of S. George Webb, for C.P. for new station at that place; KFH, Radio Station KFH, Inc. , Wichita, Kans. , ordered modification of license to increase hours of operation from sharing with WOQ, to unlimited effective June 14, 1934 in keeping with Mandate of Court of Appea? . , D.C. affirming decision of Commission of June 23, 1933. XXXXXXXX - 12 - ':*1 , ; : V ’ 'LlV ' Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTS A L — Not for Publication il; jU'.'SI INDEX TO ISSUE OF MAY 29, 1934. Airplane Aural Plan Signals Now Shown Visually . .'3 . 2 Mrs. Roosevelt Defends Her High Broadcast Fee . 3 Radio Men Admitted To Mass. State House Press Gallery....". . 4 Hearst Adds Another Station . 5 To Leave Telegraphic Fair Practices To Commission Broadcasters’ Code Hearing Probably Soon... Business Letter Notes . . New Consent Decree In The RCA Trust Suit... Marconi Co. In Merger To Promote Television Home Television Held 5 Years Off..... . 9 House Will Probably Vote On Radio Bill Tuesday . 10 Would Investigate Radio Commission . 11 Decisions Of The Federal Radio Commission . .11 No. 727 r ‘-r : ■ t J rf "" ■ - ■ • ' : . ‘ ' • I- f“ - i ■ ■ . •• y ' : : ; i ; . • - - i : i . 1 . • : 8 . - . . 1 a ' - . . ’ J ■ - ■ •£ * : ; f , .. v y, ' ■ • - B X F; 6 y ' ©lit to oqoi Ja ri3V©I A . y . ;y ■ .... •? '■ : . \ • ' ' • ■ yy'.y ' ■ . ■ -y - ' . : ‘ •- " " - : ' i •licr B ■ ■ : - y - ■ > - ' ••• y • .• . t §iJ : . .. ■ .. . . - . ; y . . ; • . ■ : .-. . . : . - ■ ‘ ;.y : • ■ ' ' ■ *v/ y.v.-- ■ • ■ . . y.o*c : ; y. . ' f . ©£ tt; ; : - ' ; t C sb -»i : ,3vrtc . xioJ dw t- -■ ... f: ; ■ . Dhi ’ ■ : • •j • _ . y : \ ; 3 til- .. . ■ . . . - ' :. / !.$o£±q: • ' O-lif-.P; .ifly sr» j , y • . ... .. ni biu ila a \£sio aoTiups i . . . 5/29/34 range transmitters. Either loop antennas or vertical tower radia¬ tors may be used. The general problem of making radio range signals avail¬ able to airmen in a visual form has been before the Department of Commerce for several years. One of the first solutions considered was that of installing visual type transmitters at radio range stations which would actuate two vibrating reeds on aircraft instrument panels. However, this method would have cost about $500,000 for the entire airways as against less than $500 for the system just developed. The arrangement developed by the two radio engineers has undergone extensive flight tests which have shown it to be satis¬ factory. However, no definite plans to place the new system in operation on the Federal airways will be made until it has been given practical service tests by those airmen who fly the airways regularly, and not then unless these expert users of the aids to air navigation signify their wishes for the new device. XXXXXXXXX MRS. ROOSEVELT DEFENDS HER HIGH BROADCAST FEE In answer to Edward G-. Ekdahl, of 459 Morris Avenue, Rockville Centre, L. I., secretary to a Brooklyn manufacturer, whn expressed doubt in a letter to the wife of the President "that anyone is worth as much as $500 a minute", Mrs. Roosevelt replied: "I think you are entirely right that no one is ?;orth $500 a minute. Certainly I never dreamed for a minute that I was) The money is needed, however, to help people such as those whom you describe. I cannot help them all over the country, of course, and I could not help them in any other way. "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 is not paid to me directly, but to the agency which will spend it for the good of a great many people. The reason that they are willing to give me this money is, of course, because my husband is the Presi¬ dent. "There are, of course, people on the radio who are paid this same amount, but I do not flatter myself that I as an individ¬ ual would be paid it. It puts money in circulation, the money is spent for a good purpose, and these people could not otherwise be helped. Therefore, I think I am perfectly justified in doing it." Ekdahl in his letter related the efforts of Mrs. Katherine Budd of 411 Caton Avenue, Brooklyn, to obtain an injunction restraining the NRA from preventing her making flowers at home, by which she supported herself and two daughters. Mr. Ekdahl declared that no matter what Mrs. Roosevelt did with the money, 3 ■•■A.' ; I 4 t J: "10" 10 ..A .oil/" ’ A A!- . I ..00 - : ' • ' 'v • ' A- aj iff zrr.o;! ■1 u£*i ru c . tl'B ■ to . - , . Is t SfitisssSJ?*. owe- sJ suet > . A . ' . I . A. lo o.o. - ■ a .no j •' roV: .L rj p ; 3 . . • , - • . ... • ■- X : - A. • : ' 0-0 ; A A'. : ■ ~- .0' ala A : A & [ ■ . " , . ' • * XO •• -A A ' . wta asvj v ■ 5/29/34 the roofing company which paid for the broadcast had to make some accounting of the money. He cited numerous causes of workers barely able to support their families. "This continuous publicity in the newspapers of large and easy earnings", Mr. Ekdahl wrote, "and pictures shown at the movies of elaborate furnished homes with acres of grounds, servants, riding horses, foreign automobiles, expensively silk-gowned ladies, who keep their hands out of dish water, has upset the young Ameri¬ can mind and has created in our young people a desire for a similar easy life and a share in the distribution of easy money. " The money from the broadcast was turned over to the Friends Service Committee of Philadelphia for school and health work in mining communities in West Virginia. Mrs. Roosevelt expects to make several more broadcasts for the same purpose. X X X X X X X X RADIO MEN ADMITTED TO MASS. STATE HOUSE PRESS GALLERY Details of the admission of representatives of the Yankee Network news service to the Massachusetts State House Press Association rooms is given by the Editor & Publisher: "Soon after the Yankee Network news service was organ¬ ized on March 1, it began an effort to gain access to the press gallery at the State House over the opposition of the Press Assoc. - tion. "The effort this week bore fruit through a decision of the Legislative Rules Committee which virtually gives the radio reporters the privileges of the gallery. The aftermath is being awaited with interest, for while the Association is pondering on its course of action, there is a sentiment for dissolving the organization. "The effect of dissolution will remove from the associa¬ tion all responsibility for the conduct of the gallery and its membership in enjoying the privileges necessary to accurately report the news of the Legislature and the various state depart¬ ments. "The State furnishes two press rooms on the fourth floor of the Capitol; Room 456 is the main room with desks and lockers and other conveniences; Room 454 adjoining is largely devoted to telephone booths and wash room facilities, although there are a few lockers there. "By the decision of the Rules Committee, the radio reporters 'are to be given Room 458 and to operate under rules of their own approved by the Legislative Committee. This room ad¬ joins Room 456. The Sergeant-at-arms has been ordered to remove a book case that backs up against a connecting door between the 4 5/29/34 two rooms so the radio reporters can pass through 456 to 454 to use the telephones. This virtually gives them complete access to the press gallery. "The State House Press Association has taken the position that it did not object to radio having quarters in the State House and privileges similar to those enjoyed by the press, but it has contended that the radio and daily newspaper reporters should not be in the same room because of the varied interests. "Richard D. Grant, editor of the Yankee Network news ser¬ vice, and formerly a member of the association in his capacity as Boston Transcript correspondent, was the first to apply for ’radio' membership. The Executive Committee rejected his application. It was sustained by the full association and Grant appealed to the Rules Committee. "The latter body at first refused to take action and sent the matter back to the Association in the expectation the problem would be worked out. "Grant was offered a room for his radio reporters separ¬ ate from the press gallery but insisted he must have access to the gallery. The Association remained firm and not only refused to approve Grant's application but that of Joseph L. McAllister, who covers the State House for the radio. " X X X X X X X HEARST ADDS ANOTHER STATION Announcement that WISN, the Wisconsin News station in Milwaukee, has purchased WHAD, the Marquette University radio station also in Milwaukee, has been made by Gaston W. Grignon, general manager of WISN. The agreement was signed by J. L. Kauf¬ man, business manager of the Radio Division Hearst Enterprises, Inc., New York, and Prof. William R. Duffy, representing Marquette University. An application to transfer the license and equipment has been filed with the Federal Radio Commission and action is expected shortly. The Wisconsin News station will continue the broadcast of unusual education features of interest to the general public, in addition to its regular studio and Columbia chain features. Ed. Harvey, formerly of KDKA and WCAE, Pittsburgh, has been appointed new Program Director. XXXXXXXX 5 '■ c r ;• ■ •• .• 5/29/34 TO LEAVE TELEGRAPHIC FAIR PRACTICES TO COMMISSION The NRA is going ahead with a telegraphic code of hours and minimum wages but as far as the fair practices are concerned, these will probably be left to the new Communications Commission, Senator Schall, of Minnesota, declaring that various attempts have been made to prevent the press and public from securing full knowledge of the acts of various heads of Government bureaus introduced the following resolution in the Senate: “Resolved, That the Senate proceed to investigate these conditions and appoint a committee of five Senators who shall hold public hearings, call upon Government departments for informa tion, and, when necessary, subpena witnesses to the following end: "1. To investigate if any department at the present time has ordered censorship of any or all records which are rightfully public property. “2. To determine if any merchant advertiser has been threatened with Government prosecution because of any advertise¬ ment in any publication opposed to this method of censorship. “3. To lay before the American people any and all acts which might result in a censorship of the press of the United States in violation of the Constitution. I!'4. To ascertain if the telegraph code of the National Industrial Recovery Act may be used to censor press dispatches or to cause financial loss to newspapers by forcing them to pay higher toll rates. 11 XXXXXXXX BROADCASTERS’ CODE HEARING PROBABLY SOON There seems to be every prospect of a public hearing of the Broadcasters' Code at which the matter of wages and hours of broadcast technicians will be discussed. If the session is held, it will doubtless be confined to that subject and probably held about the second week in June. XXXXXXXX 6 • ' v ' • i O - .H J G Ci • ■■ V . 5 o' a . . in o 30 .. • \ - > rit los ■ . } -■■■■ ; <; . ■ •••-.-• ■ ■ , . 1 • :• - .. ■ I - •i,. • . . 5/29/34 BUSINESS LETTER NOTES The National Broadcasting Company has arranged for a half-hour broadcast of the Radio Manufacturers' Association banquet program, of which Paul B. Klugh of Chicago, will be toast¬ master, Wednesday evening, June 13, at 9:30 P.M. EST. Banquet reservations should be made with Bond Geddes, Executive Vice-President, at the Stevens Hotel, Chicago. A system of patrolling by radio police cars will be introduced in the metropolitan district of 700 square miles in London. Further delay in revision of the Electrical Code has resulted in postponement by the Radio Manufacturers' Association Board of any action until next month during the convention at Chicago. Referring to the current agitation in the Department of Agriculture on advertising methods, Kenneth Goode, advertising writer, declared that a special government bureau should be established in the administration for advertising and selling instead of "the corner in the Department of Agriculture" as it now exists. With Congress scheduled for adjournment on or about June 15th, it looks like defeat for the Copeland Food, Drug, and Cosmetics Bill. U. S. Internal Revenue collections of the b% excise tax on radio and phonograph apparatus for April, 1934, were $202,301.98 an increase of 46 per cent over April 1933, which were $138,587.02. An increase of 6.7 per cent in radio factory employees ir April, 1934, is reported, with an increase of 7.3 over last March. Compared with the three-year employment average of 1923-25, the April 1934 employment in radio-phonograph factories was more than doubled. The twelfth anniversary of Station WFBR, associate of NBC in Baltimore, will bring Gov. Albert C. Ritchie to the air, Sunday, June 3, at 11 o'clock, EST. (P.M. ) X X X X X X X - 7 - 5/29/34 NEW CONSENT DECREE IN THE RCA TRUST SUIT The radio trust suit of the Federal Government against the Radio Corporation of America and others several years ago echoed in Federal District Court in Wilmington, Del. , last Friday when Judge John P. Nields signed a consent decree regarding the exclusive licenses and sales arrangements made by the defendants with foreign companies. This issue of the anti-trust suit had been left pending in November of 1932, when a consent decree for the general feature.s of the case was signed by Judge Nields. Last Friday a stipulation, agreed to by all parties, was filed. The defendants agreed to send letters to the foreign com¬ panies with whom they had had exclusive licenses and sales arrange¬ ments, waiving the exclusive features of these contracts. Upon that stipulation the consent decree was entered into and signed by Judge Nields. When the consent decree was entered in 1932 the question of contracts, arrangements and understandings between some or all the defendants and foreign governments and companies was reserved for future trial or determination if necessary. It was provided that if the defendants succeeded in obtaining modification and changes in contracts to meet the govern¬ ment’s objections, the cause as to these issues would be dismissed. Last Friday’s decree states that the contracts and agree¬ ments which embody exclusive licenses and sales agreement restric¬ tions have been modified. X X X X X X X MARCONI CO. IN MERGER TO PROMOTE TELEVISION Marking an important development in the promotion of television, the Marconi-E. M. I . Television Company, Ltd., a new concern, was registered last week in London, according to the New York Times , as the outcome of an agreement between the Marconi company and the Electric and Musical Industries, Ltd. , to merge on an equal- shares basis. The agreement relates to higli-def inition television. Present broadcasts are of low definition. The Radio Corporation of America has a large interest in Electric and Musical Industries, Ltd. XXXXXXXX - 8 - an t&B in m < £ J . i ■ t • airri oil ■ , - A - ■ *£ • ... j f: r.: ■ ; Jzn. & ' ! •- !• - iLT ■ 5/29/34 HOME TELEVISION HELD 5 YEARS OFF Horae television on a commercial scale is still at least five years distant despite revolutionary strides made by research engineers in the past decade, W. R. G-. Baker, Vice-President and General Manager of the RCA Victor Company, told the Institute of Radio Engineers at its annual meeting in Philadelphia on Monday, May 28. He predicted that Europe might develop the widespread broadcasting of images ahead of this country, because of the radio taxation system in use there. The same system, he suggested, might be applied to the support of television in European countries "Enormous expense" was only one of the obstacles to com¬ mercial television detailed by Dr. Baker. "If 700,000 persons should spend $500 apiece to equip their homes with television apparatus that would require a total expenditure of $210,000,000", he said. "To serve that many per¬ sons about eighty transmitting stations would have to be provided, at a cost of say $40,000,000, and another $40,000,000 would have to be spent to develop an interconnecting network. It would take $58,000,000 a year for costs of transmitter operation and for depreciation. "Another problem", he went on, "is that of programs. A radio broadcasting station is likely to have 5,000 program hours a year. For a television station, to show once each of the 300 feature motion pictures produced in a year in the United States would take up only 300 or 350 program hours. To broadcast once each of the new plays of a year shown on New York stages would take up only another 300 hours. Shorts and newsreels would bring the total only to 2,000 hours. And not all news events would be in reach. " He said that high salaries of entertainers and expensive stage properties and scenery would be required. The manufacturer could not be expected to bear the cost, he e„sserted, and "you coul ■ not expect advertisers to pay much until coverage was assured them. Dr. Baker1 s views were expressed in the face of the fact that his company has developed a complete experimental television system. Invention of the iconoscope, or electric eye, regarded as a fundamental feature of the system, was announced last year by Dr. Vladimir K. Zworykin, of the company's laboratories and hailed then as making television in the home practical. A marked trend in this country and Europe toward higher powered transmitting stations was shown by J. A. Chambers of the Crosley Radio Corporation. A paper prepared jointly by himself, Gr. W. Fyler, of the G-eneral Electric Co. , J. A. Hutcheson, of the Westinghouse Co. and L. F. Jones of the RCA Victor Co. , described the WLW 500-kilowatt broadcast transmitter put into use on May 2 at Cincinnati. X X X X X X X - 9 - 4-/, y- .. v:. y a aj , . ■ - • ■ £> ‘ . ' ■ . ■ • . ' • ■ ’ . ’ .8S. YRt; 6 s . . . " 1c IVX:0 id . . - ■ •; . r: . ‘ . m u nJ 1 nolelYsIod t - - - . . - • . ' , :• .Tr 'dp tms.zi'TplQS I-sl : .v. jj d qjs Dia )£®4. &$ ■'.-•■■■ . CiJOW j - ' . ■ • . . ?>*• ox \,xox.:... a .r. noX j ’da .nx^B •’.oiy/io'id Oj : . . . ' • ■ . ; i;i iij ow ■ e d red v o -• .. :i I X .« d c o X n.t- . : .,f . i c" ' >T fU ' ■. , ' - . . ' a £ ... < io . •. ' ■' * ; . . . , . V . -. - . C6. :• ' • ... •' c ■ - Y ; ■ tx \[ . \"\t b9rze-xr-q ;• H' Jc '5 v;.. ;Lh r' ’5) \.iS MO • /' % .4. ?•;• • . . . O' o,.0'U.V:v 1 1: ;V.>‘ ’ ,• ■ ... -GOci' ■ ’ r.L’J \ ; xml ’J ' ,. ■ ■.• 5 o' add ‘do 8 .A ,o v.cf iptodti 0/5 7 a. 5; . ..... , ,00 . ; , )0 -5 • . ' 5/29/34 HOUSE WILL PROBABLY VOTE ON RADIO BILL TUESDAY The House Committee reported out the Rayburn Communica¬ tions Bill Tuesday (May 29). Representative Rayburn, of Texas, said that he hoped to get the Bill up for a vote in the House next Tuesday (June 5). The only reference to radio in the House Bill is Section 501 (a) which reads " The Federal Radio Commission is hereby abolished, and all duties, powers and functions of the Radio Commission under the Radio Act of 1927, as amended, or under any other provision of the law are hereby imposed upon and vested in the Commission. " This means that the numerous radio provi sions in the Dill Bill, excepting the abolishing of the Radio Commission, mrill have to be threshed out in conference. It is expected that Representative Rudd, of New York, will offer an amendment in the House similar to that proposed by Senators Hatfield of West Virginia and Wagner, of New York, and defeated, that one-fourth of all radio facilities be allocated to religious , educational and other non-profit making institutions. In reporting tbe Communications Bill, the House Committee struck out paragraph (a) of Section 310 relating to the use of joint boards in cooperation with State Commissions. However, paragraph (b) of Section 310 was allowed to stand. It reads: "The Commission may confer with any State Commission having regulatory jurisdiction with respect to carriers, regard¬ ing the relationship between rate structures, accounts, charges, practices, classifications, and regulations of carriers subject to the jurisdiction of such State Commission and of the Commission; and the Commission is authorized under such rules and regulations as it shall prescribe to hold joint hearings with any State Com¬ mission in connection with any matter with respect to which the Commission is authorized to a ct. The Commission is authorized in the administration of this Act to avail itself of such coopera¬ tion, services, records, and facilities as may be afforded by any State Commission. " Representative Rayburn said he believed the House Bill could be passed in a day. If so, and the bill comes up Tuesday, it may go to conference, as early as Tuesday night, which would give it plenty of time to reach the President before the tentative adjournment date, Saturday, June 9. XXXXXXXX 10 " . ' l £w. ... , . ■ - . • . i I'-i f •• Hei-nsj no ,;-:oO iltrl : al } ■ . , . u l ■ 1? -. e' • ' ' J • . ; . . • ;o,;: rri , ■ . . i.,. Iq ( ■) I Sub r> :• 2. .. . + ... . ;. • rna < j \ ; : o\ 4. 5/29/34 WOULD INVESTIGATE RADIO COMMISSION Although the days of the Federal Radio Commission are apparently numbered, Senator L. J. Dickinson (R) , of Iowa, intro¬ duced the following resolution on May 28: "Resolved, That the Committee on the Judiciary is authorized and directed to investigate the Federal Radio Commis¬ sion, the records, documents, and decisions thereof, and each of the personnel thereof, with particular reference to the conduct and deportment of the several members of the Commission while engaged in exercising judicial or quasi- judicial functions under the Radio Act of 1927, and with further reference to the fitness of said several members of the Commission to exercise judicial or quasi- judicial functions either as members of the Federal Radio Commission as now constituted or as members of any commission which may be hereafter established to take over its powers and duties. "The committee shall report to the Senate the results of its investigation including such recommendations as it deems advisable. "For such purposes the committee, or any sub-committee thereof, is authorized to sit and act at such times and places in the District of Columbia and elsewhere, whether or not the Senate is in session, to hold such hearings, to employ such experts, and such clerical, stenographic, and other assistants, to require the attendance of such witnesses and the production of such books, papers, and documents, to take such testimony, to have such printing and binding done, and to make such expenditures as it deems necessary." XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (May 29, 1934) WJR, WJR, The Goodwill Station, Detroit, Mich., C.P. to Oct. 16, 1934, to erect- temporary station- transmitter, at Detroit; install new equipment and use 1 KW power instead of 10 KW, on 750 kc. , unlimited hours; KGCU, Mandan Radio Association, Mandan, N. Dak. , C.P. to move transmitter and studio locally, and install new equipment; WKBO , Keystone Broadcasting Corp. , Harrisburg, Pa. , license to move station locally and make changes in equipment; 1200 kc. , 100 w. , S-WKJC; WGCM, Great Southern Land Co. , Mississ¬ ippi City, Miss. , modification of license to move studio from E. Beach Gulfport, Mississippi City, to Great Southern Hotel, Gulfport, Miss.; WPRO , Cherry & Webb Broadcasting Co., Providence, R. I. , extension of special experimental authority to operate on 630 kc. , 250 watts, from June 1 to Dec. 1, 1934; also granted 11 ; »*• . 1 ; 5/29/34 modification of special experimental authority approving exact transmitter location at Providence; WCLO, WCLO Radio Corp., Janes¬ ville, Wis. , renewal of license, 1200 kc. , 100 watts, unlimited time; WPEN, William Penn Broadcasting Co. and WRAX, WRAX Broad¬ casting Co., Philadelphia, Pa., modification of C.P.s to extend completion date to August 1; WSBC , WSBC, Inc., Chicago, Ill., license covering changes in equipment 1210 kc., 100 watts, speci¬ fied hours; WORC , Alfred F. Kleindienst, Worcester, Mass. , 90 day extension of special experimental authority to operate on 1289 * kc., 500 watts. Miscellaneous WISN, American Radio News Corp., Milwaukee, Wis., granted modification of license to increase day power from 250 to 500 watts, night power to remain at 250 watts. This station now operates full time on 1120 kc. , having recently acquired the facilities of WHAD, Marquette, Mich.; WDEL , WDEL, Inc., Wilmington, Del. , modification of license heretofore designated for hearing, was dismissed at request of applicent. Set For Hearing WNAC , Shepard Broadcasting Service, Inc., Boston, Mass., C.P. to increase day power from 1 KW to 2-| KW-LS, and make changes in equipment; WAAB , Bay State Broadcasting Corp. , modification of license for authority to use transmitter of Station WNAC; WBNX, Standard Cahill Co. , Inc. , New York, license covering changes in equipment 1350 kc. , 250 w. S-WAWZ, granted temporary license pend¬ ing outcome of hearing; KOKI „ Loyd Judd Co., Little Rock, Ark., special experimental authority to increase night power from 100 w. to 250 watts; W3XAY , The Atlantic Refining Co. , Philadelphia, Pa. , C.P. to make change in frequencies to 38600 kc. and increase power from 2 to 50 watts; W3XAZ, Same Co., "SS Van Dyke No. 4", new for "Van Dyke" No. 1; new for "Van Dyke" No. 2 and 3, and new for "Atlantic", general experimental licenses. Ratifications Action taken May 22: WKEM , American Radio News Corp. , New York, granted authority to operate broadcast pickup station on 1622 and 2150 kc. , 50 watts, May 30 and 31, on "SS Louisville"; Action taken May 24: KUVX . Mackay Radio & Telegraph Co. , New York, granted 60 day authority to operate aboard "W. R. Keever", pending action on formal application; KLG-K, Alaska Southern Packing Co. , Seattle, Wash., granted 60 day authority to operate under license 3864 as Third Class, aboard Vessel "La Merced"; KIIQ,, KMTR Radio Corp. , Los Angeles, granted authority to operate broadcast pickup station on 2150 kc. , 200 w. May 26 and June 9; WBNX , Standard Cahill Co. , Inc. , New York, granted extension of program test per¬ iod, for period of 30 days. XXXXXXXX 12 if ■j..-' O; . '10 .. ■; ! >t vo- t . boin ' ■ ' B ' - ’ . I ~t f* * * -{ ••• . . . . • ‘ . , J»rx r; A r jps rf p* ? • ’ ft 10A l ■ .■ , . • •• -i • ■, 'v j rso.i.-... ’ 0 oor. „ / i •' <; V.' r‘-‘B ] • •v . ■•••■. ■; .'■» ’ . .. - - Ic’aclJ. 0irU' ,1/ . m ;• a a ; ■ •’ :c* .1 ’ * ... 5 -o: • - j ■ * ' ■ ‘ • , ' IXxiiBC ■ r ■ • o ■ :- i. . .1 ' . ' ' ' ■ *• * A: ■. _ i'll t / . . ■ ■ ; Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL- Not for Publication Dill Resolution Would Authorize A. T. & T. Investigation . 2 Prospects For Copyright Bill Dim . , . G-erma ry Soars Above the 5,000,000 Mark . Dual Sending Of Voice And Aural Plane Signals . 5 A3CAP Loses Baltimore Suit . . . 6 Two New Stations Liven Things Up In Portugal.,.. . . . 7 B.B.C. To Use 24 Hour Time System . 7 Chicago Newspapers Criticize Stockyard Fire Broadcasts . 8 Television Sent 90 Miles In Test . 9 House Committee Reports Out Rule On Communications Bill, . 10 Part II Of Communication Companies' Report Filed . 10 Policeman Sues KHJ For $200,000.. . 10 Signal Lights Red Against Advertising, Agency Head Warns . 11 Decisions Of The Federal Radio Commission. . 11 No. 728 ft DILL RESOLUTION WOULD AUTHORIZE A. T. & T. INVESTIGATION As a probable aftermath of the hearings on the proposed new Communications Commission, the Bill for which has already been passed by the Senate, Senator Dill introduced a resolution in the Senate on May 30th which would authorize the investigation of the American Telephone & Telegraph Company. The matter was referred to the Interstate Commerce Committee which took the matter up but finally postponed further discussion until Monday, June 4th. The resolution reads in full as follows: "Resolved, That the Committee on Interstate Commerce, or any duly authorized subcommittee thereof, is hereby authorized and directed to make a thorough and complete investigation of the operations, relationships, and activities of the American Telephone and Telegraph Company , its subsidiaries, affiliates, associates, and other concerns in which it or they have any direct or indirect financial interest, or which have any such interest in it, or in which any of its officers or directors hold any office or exert any control and shall report to the Senate the facts as ascertain¬ ed and make recommendations for such legislation as the committee deems desirable. "In making said investigation, the committee shall, amon other things, investigate and report particularly on the following subjects: "(l) The financial structure and relationship of the company and its subsidiaries, associates, and affiliates, and the extent to which its holding company structure enables it to evade regulation or taxation, or enables it to conceal or absorb profits; the extent of interservice contracts or transactions between the American Telephone and Telegraph Company, and its subsidiary, affiliated, associated, or holding companies, and particularly con¬ tracts with the Western Electric Company and other manufacturers of electrical-communication equipment, if any; also the sale prices of telephone equipment, material, or devices to telephone-operating companies, the profits upon such sales and the effect of such sales upon the rate base of operating companies when used as a basis for telephone .charges in the various States; and the probable savings by telephone-operating companies purchasing equipment under a system of competitive bidding. "(S) The activities of and expansion by the company and its subsidiaries, associates, holding companies, and affiliates into fields other than telephone communication, including teletype service, telephoto service, broadcp.sting, motion-picture distribu¬ tion, and the manufacture of electrical equipment. 2 :i: iTAs eVYjf • T . ■ Oi ' ■ ■ ■ ■ ' . . , . . . ■ . - toJE ■ • • - , - .• . - j ■ . tub . : e ; . ■ . . . ; = . gal?.; ■. . . ' t& ■ ■ ■ ' . t 0 ■ ■ . ' ■ V. ■ X r.? ■ . . . ' , • a. ■ -;:w ' " ' - ■ ■■ i ale ; ' . . . . - . - - . . ; lo si ■ ■ . ■. ' ■ • . . ■ . \ - ' ; • ; -no< ■ . . . • • : ' ■ • ■ iij-X. 00 jiUf cf. tie . .. . / V U ■. 1 • ' - '■■■• - . , . .. ' . . . . . • : - ; : • ** . . ' ' ■ ■ ■ • . 0, r ' ■■ . • - 6/1/34 "(3) The methods of competition with other companies and industries, with reference to equality of service, reasonable¬ ness of rates, both local and long distance, depreciation account¬ ing practices, discriminatory practices, suppression of patents, method of accounting for royalties accruing on patents, sale and refusal to sell equipment to competing companies, maintenance of exorbitantly high prices because of monopolistic control, and particularly the relationship of the company with Electrical Research Products, Inc., and its relation to independent motion- picture organizations, and its practices in the interests of the company. "(4) The extent to which local subscribers have borne the cost of the research developments for long-distance appliances, radio, motion-picture, and other inventions not related to the improvement of local service. '*(5) The reasons for voluntary reductions in long¬ distance charges, and the failure to reduce local charges during the past few years of generally falling prices. "(6) Its relations as an employer with its employees, and the extent of its reduction in number and wages of employees while maintaining exorbitant salaries for high officials and a continuous high dividend rate. "(7) The methods whereby the company or its subsidiaries or affiliates or its officers of directors have sought through propaganda, or the expenditure of money or the control of channels of publicity, to influence or control public opinion or elections. ,rThe words ’associates', ’subsidiaries', 'affiliates', and 'holding companies' shall include all companies directly or indirectly associated or connected with the American Telephone and Telegraph Company, either by stock ownership, interlocking dir¬ ectorates, interlocking offices, whether by direct or indirect stock ownership, office holding, or directorates, or traceable through one or more companies, corporations, partnerships, individ¬ uals, or in any other manner. "That the said committee is hereby authorized to sit and perform its duties at such times and places as it deems necessary or proper and to require the attendance of witnesses by subpenas or otherwise; to require the production or inspection of all accounts, books, papers, documents, memoranda, minutes, and so forth; and to employ counsel, experts, and other assistants, and stenographers at a cost not exceeding 25 cents per hundred words. The chairman of the committee, or any member thereof, may administer oaths to wit¬ nesses and sign subpenas for witnesses; and every person duly sum¬ moned before said committee, or any subcommittee thereof, who refuses or fails to obey the process of said committee, or appears and refuses to answer questions pertinent to said investigation, shall be punished as prescribed by law. The expenses of said investigation shall be paid from the contingent fund of the Senate on vouchers of the committee or subcommittee, signed by the chair¬ man and approved by the Committee to Audit and Control the Con¬ tingent Expenses of the Senate, not to exceed $25,000." X X X X X X X - 3 - 6/1/34 PROSPECTS FOR COPYRIGHT BILL DIM Prospects for the ratification of the International Copyright Convention on the passage of the Cutting-Luce Bill creating an automatic copyright, practically vanished at the end of this week's hearings by the Duffy subcommittee of the Senate Foreign Relations Committee. Although not a member of the Committee, Senator Dill, of Washington, led the fight against the treaty and the bill. In his testimony, he insisted that ratification be withheld until the Patents Committee could pass upon the Cutting-Luce measure. Oswald F. Schuette, copyright advisor of the National Association of Broadcasters, said: "The broadcasting industry favors a revision of the copyright laws. But we are opposed to the bill before this Com¬ mittee because we do not believe it would achieve the purpose for which it is intended. The broadcasting industry favors the pro¬ tection of copyright by international treaties, but we are opposed to the ratification of this treaty until Congress shall have re¬ vised the copyright laws to protect not only the rights of foreign and domestic authors and composers, but of the user of literary and musical works and of the rights of the public in the public domain. " Mr. Schuette also made an attack on the American Society of Composers, Authors and Publishers and declared that the propose bill would add to the weapons of that organization, the "auto¬ matic copyrights" of 30,000 members of the foreign societies af¬ filiated with it - a number which he said was almost fifty times as great as its American membership. M. J. Flynn, representing the American Federation of Labor, proposed a copyright conference to be held this Summer. X X X X X X X GERMANY SOARS ABOVE THE 5,000,000 MARK Germany had 5,424,755 radio receiving sets in operation on April 1, an increase of 60,198 over March 1. Broadcasting in Germany is a government enterprise; nobody can legally listen in unless he subscribes with the post office, which supervises the radio as it does the telephone and telegraph, and pays two marks a month for this privilege. X X X X X X X 4 6/1/34 DUAL SENDING OF VOICE AND AURAL PLANE SIGNALS A method for simultaneous transmission of voice and aural airplane range beacon signals on the same frequency, has bee i devised by engineers of the Air Navigation Division of the Commerce Department, and further tests are being made to determine its feasibility for a regular service on the Federal airways system. The signals also may be received simultaneously by the pilot of an airplane, provided he has the necessary equipment, A simple device for converting aural radio range signals into visual indications is used. The voice signals then are received in the ear phones, while the directional signals are directed into a con¬ verter, actuating a needle which indicates to the pilot whether he is on course or to the right or left of his route. An experimental station equipped to transmit visual range signals and voice simultaneously is in operation on request at Elizabeth, N. J. Experiments with simultaneous transmission of aural signals and voice will be carried out at Pittsburgh. In the method to be tested at Pittsburgh, radio range signals are broadcast from four vertical radiator antennas of the type now in regular use on the Federal airways system. Voice goes on the air from a fifth antenna, of the same type, located in the middle of the system of four radio range antennas. The same carrier is used for both transmission. The radio range signals are a frequency 400 cycles higher than the carrier, while the voice signals are the carrier frequency plus or minus 500 to 4,000 cycles. After the signals have been received in the plane, the receiver output will be divided between two loads. Filters will direct frequencies of about 400 cycles to the converter unit that will change them into visual signals. These filters will also send the frequencies above about 500 cycles through the ear phones to permit the pilot to listen to the voice broadcast of weather and other information. If the pilot wishes, he may receive the radio range signals aurally in his ear phones, but to do so it is neces¬ sary to connect his ear phones to the circuit having the frequen¬ cies of about 400 cycles. Elimination of thelower range of frequencies from the voice broadcasts does not appreciably affect the intelligibility of the messages received. It does affect the timbre, as the bass pitches represented by the lower frequencies are eliminated, and the voice, as heard in the airplane, is high-pitched. However, experiments have demonstrated that it is the higher frequencies that are needed for intelligibility. Extra towers needed for simultaneous transmission will be available at many of the radio stations throughout the country, if it is found practicable to adopt it for general use. The fifth towers are to be installed at a number of stations in the near future, and used for transmission on the emergency frequency of 236 kilocycles. 5 6/1/34 Radio communication stations and radio range beacons now are being combined, with the communication station and range serv¬ ing a particular airway section located in the same building and using the same antenna system. Under this arrangement, it is not possible to broadcast range signals and voice at the same time, even on separate frequencies. The extra antenna for communications on 236 kilocycles at a combined station consists of a fifth tower radiator antenna, installed in the center of the group of four towers in the same manner as will be required for simultaneous transmission of aural range signals and voice on the same frequency. XXXXXXXX ASCAP LOSES BALTIMORE SUIT "The American Society of Composers, Authors and Publish¬ ers, an organization which owns almost all the copyrights on modern songs and dance tunes, came off a bad second best in a suit heard yesterday before Judge William C. Coleman in the United State District Court", says a news item in the Baltimore Sun of June 1. "The Society sought to collect $250 from the proprietor of a Baltimore beer garden on the ground that last October an orchestra had played at the place and had used one of the organiza¬ tion's dance tunes without paying any royalty. "The witness for the Society, who testified that he was a professional musician hired to go about and find violations of the copyright laws, told the court that the orchestra he had heard at the beer garden was composed of a piano, a saxophone, a drum and a banjo and that he had recognized among their renditions a tune called 'The Talk of the Town' , on which his employers owned the copyright. "The members of the orchestra, who testified for the defense, said they had not played the tune referred to, although they had been asked to play it by the prosecution witness, because they did not know it and could not read music. "They said they played only from memory such old songs as 'Turkey in the Straw', 'Old Dan Tucker', and 'Golden Slippers', and that their orchestra was made up of a piano, banjo, guitar and violin. "In dismissing the suit, Judge Coleman held that the musicians probably had a better recollection of what they played than the plaintiff's witness, who testified that he had been to a number of places the sarnie evening in his search for copyright violations. " XXXXXXXX 6 6/1/34 TWO NEW STATIONS LIVEN THINGS UP IN PORTUGAL Interest in radio reception in Portugal has been notable- stimulated as a result of the construction near Lisbon of two broadcasting stations, according to a report from Vice Consul Daniel V. Anderson. One of these stations, it is pointed out, is to be operated by the Portugese Government. Development of radio in Portugal, the report states, has been handicapped by the fact that most of the radio broadcast¬ ing in Portugal has heretofore been performed by small stations whose programs have consisted almost entirely of the playing of phonograph records. In a country such as Portugal where only a small percentage of the population can understand a foreign langu¬ age, adequate facilities for broadcasting in the native tongue are necessary before any large-scale development in radio can take place. The two new stations, it is pointed out, should be able to fulfill this long-felt want. In order to provide funds with which to develop and operate a system of Government radio broadcasting stations, the Portuguese Government last June issued a decree placing a monthly tax of six escudo (about 28 cents) on every radio receiving set in operation in Portugal. It is estimated that there are at the present time between 25,000 and 30,000 sets actually in operation. Imports of radio receiving and transmitting sets into Portugal were valued at 6,820 contos in 1933, an increase of 50 per cent as compared with 1932. The United States continued to be the leading supplier, accounting for approximately 50 per cent of total imports in 1933 compared with 34 percent in 1932. XXXXXXXXXX B. B. C. TO USE 24 HOUR TIME SYSTEM The British Broadcasting Corporation will adopt the 24- hour system of expressing time. The system will be used in all announcements over the microphone, in the journals published by the corporation and in correspondence. No statement has been made as to the duration of the trial of the system, but it will doubtless be sufficiently long for the public to become thoroughly familiar with the system and for the extent of public approval or disapproval of the system to be gauged. The Postmaster General will await the result of this experiment before coming to a deci¬ sion on the question of the adoption of the system in the Postoffice It is proposed by the British Broadcasting Corporation that a time such as 17h. 15m. shall be announced as "Seventeen- fifteen hours. " This terminology would be inaccurate and undesir¬ able, and it is to be hoped that such a designation will not be used; otherwise this phraseology may soon become stereotyped. Tht expression "seventeen hours fifteen minutes" is accurate but long. X X X X X X - 7 - •vxh :'i u • • ? r/ •• n * • . ... . i. ...... ... c; ■. O •' ' ■ or- nsec . sc c.v;,t ‘ic node. . r» i. . ■ - a i. noj.t . .• . ,;i:!>s-s .sc c i ■•.. • ■ . . . * - . • A • , at ' ' ■ . ■ - ' i • : - f isq. i : . ' ; . ‘ I .. . l .. D - . ■ ■ . •....■ . . . fiy • ' ■ ■ ; . ; ' . : - . • Z ' • - - : .... d ■ -■ ■' i ' . . ba,e ' tOffl B . ' ■ > . : . gnivJ curt: eblvcnq o& 'isJb'to aX - t i A.. . . ' ■ ttoa/ fto { ; ■ ■ ■ ■ /. 'x \ ■ • ; ; ,■ ’ . ojni: h ; s'T.Ofi. ■ ■ • }' ■:■■■_ V ■ v:- s:x ■ fj ' ■■ ■ r . ,:x l^k XC : " ,-x i-s. : J: ■ - • • I . Vi , ■ . 231 . .: dii. J . 31 oq ; J~i? CiS. - ' 1. 1 cfij [ i . . . ; : = . +p :C. ... ‘I ^ s' ■■ Ic •• — 'is 1 3 y ^ . ':ou BJ ffjrs :x.x .. ;■»- -Sir.- : ■ , v:.." •'! . - '• .. • ;• ••'. ■ ■ ■ tslXlmi . ' ■■ : s jD . . : i.ts'iocr: : e css- * . * • ‘ V •’ . K. .- ■ ' £ ■; . «■ .cv' :' ' ■ ;:.1 . •; ■ ' •• ■ •y X.''X ■ ' " ■ ■ ..... : .. ' * : h;.-- 6/1/34 CHICAGO NEWSPAPERS CRITICIZE STOCKYARD FIRE BROADCASTS The Chicago Tribune commented critically upon the broad¬ casts of the Chicago stockyards' fire which it said caused every newspaper office to be flooded with telephone inquiries from anxious relatives in all parts of the country, out-of-town news¬ papers as far away as Londong, England, and other groups, such as the American Legion, offering their services, as follows: "In the early stages of the fire, radio broadcasts told of the great danger confronting the entire stockyards district and the public was led to believe that the peril was greater and the damage far more extensive than a cold survey yesterday justi¬ fied. At one time it was feared that two or three square miles were endangered, but actually the fire was confined to an area of about eight city blocks, or one-eighth of a square mile." The Chicago Daily News summarized the radio broadcast of the fire in an editorial May 22, entitled: "Radio Rumors", which follows, in part: "It would be ungenerous, perhaps to disparage the valiant efforts of the radio announcers who tried to tell the world about the stockyards fire. They told the world a lot of things that weren’t so, and succeeded in getting many people vastly excited. But don't blame the boys who pictured themselves as standing on the burning deck, or one just about to be burned. The technique of radio announcing is designed to get the listeners excited, even when the bulletin concerns nothing more thrilling than a new toilet soap. "There were thrills enough in Saturday night's big fire if one stuck to the bare facts. But radio has its own methods. The radio boys, untrained in news gathering, undisciplined in the value of accuracy, were doing the best they could to live up to the young tradition of their craft. "Smoke-choked, bleary-eyed and superheated, in constant peril of their lives, according to their own often repeated asser¬ tions, they stuck to their mikes and hysterically broadcast every alarming rumor that reached their ears. They had to rely on rumor because from their roof point of vantage, they could see little, and be sure of less, that was really happening. The real facts were being gathered by trained newspaper men, whose technique it is to sift grain from chaff. "If radio, on such occasions, is to be more than a useful transmitter of official messages, is to assume the function of broad¬ casting news on its own initiative and under its own direction, it must learn to discipline itself. " XXXXXXXX 8 :::: • : 'i ~ c^iW: . ; . 0 o : ■ r' »T‘ abq jljls / . • • rr. •• ill i'.c o.j soi':‘lo ‘xsqjsqm? "u .• :&■ ' . zsjoIxxu'- :v . t i to . . ■■ . ' : t - ' ' • O/IO - ■ ■: ■ ■ ; • v. Is cfjj fi . ■ V . : . .. .. ■ J ■ . ■ ■ t ■ . . ■ . j - ^4 ■ / :■ . / v ' ’ ' * . £ . . ■■■ . v .1. . '■.< ;... v> f i ; ■j - . , ’ •Mom ■ . . ■ , - ■ ... if; ' - 2 ' ; '. ; , . c 3 :v I : , . * - ' ■ ' . . *f-4. ' ..... ,. . . ;. 7 ' ; ;. . '--y : ... . • . ' j • ' . . ..' ' - o i.t'-'ri .7 ■'£3 6/1/34 TELEVISION SENT 90 MILES IN TEST Television has passed beyond the laboratory stage to the extent that scenes have been transmitted satisfactorily from a studio in the Empire State Building in New York, to Camden, a distance of about ninety miles, and outdoor scenes have been tele¬ vised and transmitted for short distances. These significant steps in the development of television as a practicable phase of the radio industry were reported to the annual convention of the Institute of Radio Engineers at Philadel¬ phia, last Tuesday by research engineers of the RCA Victor Company. They emphasized, as did Dr. W. R. G-. Baker, Vice-President and General Manager, in a preliminary statement on Monday, that serious obstacles, economic and otherwise, confronted the commer¬ cialization of home television despite the successful operation of an experimental system. In the transmission of scenes from New York to Camden, it was found necessary to erect an intermediary radio relay station at Mount Arney, N. J. , about 64 miles from New York. The iconoscope, or "image observer", invented by Dr. Vladimir K. Zworykin and his associates as the central feature of the transmitting device, a.nd the kinescope or cathode-ray tube, used as an integral part of the receiving system, are fundamentals of the experimental system as now developed by the RCA Victor engineers. Mr. E. W. Engstrom related that in the New York- to Camden transmission, the most satisfactory results were obtained when the picture carrier was transmitted on 49,000 kilocycles and the sound carrier on 50,000 kilocycles. The two receiving circuits neces¬ sary for picking up the picture and the sound carriers, respect¬ ively, are tied together electrically so that they operate simul¬ taneously. "Tviro or three years have elapsed since we were hearing first that 'commercial television is Just around the corner', said Mr. Engstrom. "Developments since then have included ability to obtain outdoor pictures, placing synchronization on a sound basis and some other technical advances. We believe that we have an orderly program which is leading to television, but television, instead of being just around the corner, has turned out to be a problem which is a giant in proportion. " C. N. Anderson of the Bell Telephone Laboratories, New York, warned the engineers that sun spots were beginning to appear once more and that great storms in the atmosphere of the sun pro¬ bably would complicate wireless operation soon. At the annual dinner, the Institute of Radio Engineers' medal of honor was conferred upon Capt. S. C. Hooper for his organization of radio communications for the Ne.vy, and the Morris Leibmann Memorial Prize of $500 went to Dr. Zworykin for his con¬ tributions to the development of television. XXXXXXXX 9 6 /1/34 HOUSE COMMITTEE REPORTS OUT RULE ON COMMUNICATIONS BILL The House Rules Committee today (June 1) , reported out a rule on the Communications Bill. It provides for a one- hour debate on the rules and two hours of general debate. Follow¬ ing this, amendments will be allowed from the floor and discussion under the regular House rules which do not limit debate on amend¬ ments. X X X X X X X PART II OF COMMUNICATIONS COMPANIES' REPORT FILED Part II of the report of the Communications Companies was filed today but at the present writing, copies are not yet available except to members of the press. X X X X X X X POLICEMAN SUES KHJ FOR $200,000 Charging that a recent commercial broadcast over KHJ, Los Angeles, cost him his job, the society of friends, and caused severe nervous shock, Edward Condona, Jr. , a former Long Beach policeman, has filed suit for $200,000, charging libel and slander against the Don Lee Broadcasting System, the Rio Grande Oil Company, and others. According to the complaint, the Rio Grande " Calling All Cars" program included the following statements: "That he was convicted of setting fire to a large garage in Los Angeles", "that he was insane and sent to the State Hospital at Norwalk", "that he is a fugitive from justice and is a dangerous man to be at large in the community", "he was a pyromaniac." The word, "he" referred in each case to the plaintiff, the suit alleges, although he was not mentioned by name. Condona charges copies of the script were shown to newspaper reporters and also filed with the Federal Radio Commis¬ sion in Washington and in offices of the Don Lee System, where many persons have seen them. XXXXXXXXX 10 f 6/1/34 SIGNAL LIGHTS RED AGAINST ADVERTISING, AGENCY HEAD WARNS W. C. D'Arcy, President of the D:Arcy Advertising Co., of St. Louis, addressed the Annual Convention of Advertising Agents in Washington, in part, as follows: "Quite frankly, advertising as we have been practicing it is losing public confidence. This is evident in every quarter. In no other way can you explain the new consumer movements, the indignant protests to publications, the proposed regulatory bills and laws, Consumers' Research, and those who have made a racket of this so-called consumers' crusade. Let's not forget that a man can tell lies on both sides of the fence. The tide, gentle¬ men, has turned against us. The signals show red." "Something has got to be done. I feel it strongly every time a bland voice over the radio makes some shockingly out-of¬ place sales suggestion when I am in mixed company at home or elsewhere. I feel it when I thumb through a magazine, periodical or newspaper and notice the blatant bad taste that is laid there on the advertising pages for fools like me. And when I say fools, I mean it - because the men who prepared it give me, and millions like me, to understand without a shadow of a doubt that that is largely what they think of the vast market of American citizenry. Just a nation of morons, morbid in tastes, perverted in desires, and unclean in lives and persons. "I believe most advertising does not deserve this pub¬ lic indictment. Most of it is a straightforward presentation of intelligent, clean selling. It is manifestly unfair that adver¬ tising as whole should be penalized because of the spectacular antics of a small but vociferous and blatant minority. " XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (June 1, 1934) KWCR, Cedar Rapids Broadcast Co. , Cedar Rapids, la. , modification of C. P. extending completion date to 6 months from May 16, 1934; WBRC , Birmingham Broadcasting Co., Inc., Birming¬ ham, Ala., license, 930 kc. , 500 w. , night 1 KW, LS, unlimited time; WCBS. Charleston Broadcasting Corp. , Charleston, W. Va. , modification of license to increase day power from 500 w. to 1 KV7 ; KWLC, Luther College, Decorah, la., special temporary authority to reduce hours of operation to 2 hours daily, for period June 6 to Sept. 10, 1934, during vacation period; KPCB , Queen City Broad¬ casting Co. , Seattle, Wash. , special temporary authority to operate station without approved frequency monitor for period of 25 days. 11 r v to . - .. v. - •••.. .0 JW ■ , . . . 3 , ’ ' ■ ■ ' , : . j f ■ . • ' V V. ‘ M -'II A <\ .. ’ ; . • • i C ! ’'J- ’ -"ifj jo.': on- ;■ . 1 ■ A • . ■; .... ifc ■ ' ' k - .O : '*.’10 oi Vff n ■ ■ 1 - ■ V - a b m nl ■ . . ■' -.0 . ■ ' » r. H5 ■ : J 3 ■ ■ ■ V M r ; • V j is ■ : dT ' £ 8ci:l ■ ■ Jr V J ■ ■ \ ■ i :IC . as aq ..... ' .. i f ■ Ji’J' Q.o ■ ■ / . . •\Q ry/ A *•> n ■ "10. 2 c 0 ^ ;i *t y J jv; ■ l •: u' : ) :? .i 3 .00 (f .0:1 . q'xaq ' . •. : .1 8 00 * . Vf>JB vt o oin 0 " Ow f • .. J . ;; I: I - , ■ 111 . . : ■ L :j ■ 1 B naq 3 ' J >■ V - *■ • ■ ' . • . o . ' \ 4 ■ ■ • ■■ • . ■ ' I . ' ' ’ ' ‘ ’ 6/1/34 Also, KG- A , Louis Wasmer, Spokane, Wash., special experi¬ mental authority to operate on 900 kc. with 1 KW night, 2-§- KW-LS, unlimited time, for period ending November 1, 1934, subject to decision by Court of Appeals in the case of KSEI-KFPY. Also, WIXE, Town of Darien, Conn. , Police Dept. , and WIXF, Portable-Mobile, modification of C.P. extending commencement date to May 1 and completion date to Sept. 1, 1934* Richard Upjohn Light, NR-10794, license (aviation-Aircraf t ) , 333, 375, 414, 457, 500, 3105, 3120, 5515, 8340, 12480 kc. , 90 watts; WPGZ, City of Johnson City, Tenn. , license (police service), 2474 kc. , 50 watts. Action On Examiners* Reports KRGV, KRGV, Inc. , Harlingen, Tex. , granted modification of license to change hours of operation from sharing equally writh KWWG- to unlimited, 1260 kc. , 500 watts, sustaining Examiner George H. Hill; KWWG, Frank P. Jackson, Brownsville, Texas, granted consent to voluntary assignment of license to Port Arthur College, 1260 kc. , 500 watts, daytime only; also granted renewal of license, 1260 kc. , 500 watts, da.ytime, reversing Examiner Hill; KWWG, Port Arthur College, Port Arthur, Texas, granted C.P. to change location of studio and transmitter, rever¬ sing Examiner Hill; NEW. Walter B. Stiles, Inc. , Muskegon, Mich. , denied C.P. for new station to operate on 1310 kc. , 100 watts, unlimited time, sustaining Examiner R. L. Walker; WKBZ , Karl L. Ashbacker, Ludington, Mich., granted C.P. to move transmitter and studio from Ludington to Muskegon, Mich. , 1500 kc. , 100 watts, unlimited time, sustaining Examiner Walker. Oral Argument Granted The Commission, en banc, will hear oral argument involv¬ ing Station WJJD? Chicago, on June 13, 1934. Ratifications WAIU, E. S. Hewlett, Columbus, Ohio, granted temporary authority to operate broadcast pickup station, frequency 2060 kc. , 100 watts, from May 29 for a period of 10 days, action taken May 28; New - Northwest Airlines, Inc. , NC-233-&, granted license, frequencies 3005, 3105 kc. , unlimited, 2854 kc. , W. and North of Chicago only, 5377.5 kc. day only, W. and N. of Chicago only, 50 watts, action taken May 29. Miscellaneous Joseph Pappalardo, Lawrence, Mass. , application for new broadcasting station redesignated for hearing. XXXXXXXX 12 f I £ 1 . ■ Heinl Radio Business Letter 2406 CALIFORNIA STREET WASHINGTON, D. C. CO-NJF ID-E-feLILA L r.r; Ur.. Not for Publication Lcl*JAi UtPAR*r!Vi£f4T __ m i ® ii ii f f |f) L‘u JUN 6 - 1334 '* ' I uii iA (ly) .''/A, 6 • " 1? fe ii iSsJ UJJ i INDEX TO IS&JE OF JUNE 5, 1934. rrlzlllZlSH,:; 9 If) 4 House Quickly Passes Communications Bill . 2 Rehearing Scheduled On Radio Code Labor Provisions . 5 Ford Shortwave Stations On The Grill. . . 5 No Time Lost Considering Communications Bill . 6 Business Letter Notes . Don Flamm Honored By Friars Chicago Bureau Would Represent Non-Profit Agencies . 8 Announcing The Confidential Communications News Service . 10 White Flannels O.K. For RMA Banquet . 11 Decisions Of The Federal Radio Commission . 11 No. 729 -a June 5, 1934. HOUSE QUICKLY PASSES COMMUNICATIONS BILL As in the case of the Senate, although there was con¬ siderable discussion, the Bill creating a Communications Commissic passed the House without a record vote. The House Bill simply transfers the powers of the Federal Radio Commission to the new Communications Commission and does not undertake, in any respect, to change or modify the existing radio law. The Senate Bill contains numerous provisions with regard to radio. The Senate Bill calls for five Commissioners, and the House, seven Commissioners. The Senate Bill provides for the creation of two divisions within the Commission, to be known as the Radio Division and the Telegraph and Telephone Division. The House calls for three - radio, telegraph and telephone. In the House Bill, the new Commission would begin functioning July 1st, in the Senate Bill, as soon as three out of the five Commissioners have been sworn in. These differences will all have to be agreed upon in conference between committees from the House and Senate. In defending the House Committee's course in not adopt¬ ing a provision with regard to non-profit making stations, Representative Rayburn said: "We had up what is known as the ‘Father Harney amendment’ that came to us in the House as it did in the Senate. That provid¬ ed for the allocation of 25 percent of all the time to religious, educational, and, though I do not believe they used the word 'uplift' , yet they used a word that corresponds to it. If we begl: to take away from the Radio Commission its authority to allocate, we would be in the same position that the Congress would be in ill after giving to the Interstate Commerce Commission its function of regulating railroads and fixing the rates, we would then start out to introduce and pass measures to revise the rate structure. In that way we would probably get into a lot of trouble. Our thought - at least, my thought - was this: If 25 percent should be allocated, or the allocation of it taken away from the Radio Commission, why not take away 30 percent or 40 percent or 100 per¬ cent? Also, if you allocate 25 percent to education and religion, then what difficulty is the Radio Commission going to have in div¬ iding that 25 percent betv/een Catholic, Jew, a Protestant, and other sects, and also between what colleges, where located, and what other time might be supposed to be taken into consideration for morals, education, and uplift? Our committee took that positici and we believe it is a wise one." Representative Hamilton Fish, of New York, said a year ago the Republicans could not get on the radio anywhere. 2 ‘ : : •' 83884 • n ...■ . JUC ■ ■ ' . • it. - . ■ . ■ ’ •V -■ • . °r -■ 1 -■ 1 •" • -;v t,: r;oqL' ■ ' ' . , n /’ i >v dl e-:r b: i * ' ; v /j :.uqo znnolXdUq idt ouu l ■ ' . ■ ■■ •: . ot ' , ,0 •. C . ''j.'-- X Jj ' . 6/5/34 "I imagine you feel you can be generous with the Republicans now because you keep adding to your publicity agents every time a Republican talks on the radio", Mr. Fish continued, addressing the Democrats. "So you can afford to let one or two of us speak now and then and develop an excuse for some more jobs for deserving Democrats to handle publicity. "I think it is unfortunate that the radio is controller by the administration or terrorized by the administration to the extent that the policies of the administration literally burn up the radio time day and night. " Following this, Mr. Fish read from an article in the "American Political Science Review" for October, 1933, as follows: "The Democratic records show a curious situation so far as radio expenses are concerned. During the campaign itself, only $182,450 was spent for this purpose; but the list of 'unpaid obligations', filed at the end of the year showed $160,964 out¬ standing in radio bills, more than $100,000 of which was owed to the National Broadcasting Co. Almost all of these debts remained unpaid on May 31, 1933. * * * Such a situation is certainly un¬ healthy and gives rise to the suspicion that there may have been some kind of understanding between the Democratic National Com¬ mittee and the radio companies." "I do not want to make specific charges on a matter of this kind", Representative Fish observed. "I assume, of course, all Democrats are honest, but what commitments were made during the campaign by party managers and whether any promises were in¬ directly made to radio corporations, I am not able to prove. At the same time, it does look as if something was wrong if these bills have not been paid. They ought to be paid in fairness to yourselves and your own party and to the country. "I would like to propose an amendment, or I would like to have some Democrat propose it instead, that no public official or members of his family shall be paid any money for speaking over the radio. There is no reason in the world why the secretary to the President, Mr. Howe, should receive $900 for making a radio speech that is not worth 9 cents. Representative McFadden, of Pennsylvania, told of the alleged treatment of a station in his State. "Mr. Spriggs, who operates Station WNB0? at Washington, Pa. , was the object of certain charges - foolish charges mostly - in regard to operations that were paid for and otherwise. He want¬ ed to continue his operations when he found out the Commission were after him and began appealing to sources from which he thought he could get relief. He employed certain attorneys in this city. Not being successful, he sought political influence", he said. "He sought the assistance of Joseph F. Guffey, Chairman of the Democratic StateCommittee in Pennsylvania. Mr. Guffey turned him over to his appointee in the Department of Justice, a 3 I 'em t sfox Iw ^ i ■ is ; ■ ■ ■ £ ■■ ■ ■ 0 ■ ■ . . . ■ l ) f . ■ E ■ ftOfi ' • ■ • - . , j 6 i £ ■ m # "Sc u 0 .. i ■ ■ * t is- s loti . *r 0 . ' - ' . •- “wsivc ' . . ■ - '■ ■ : ' . ' ' i ‘ ■ : ij . u ■ . - • '■ ■ . - .. - ' • ■ ■ tlBi : ■ - XJ CA • ■ ‘ - . r rodlj t ' . | t : ■ ■ i 0 O I orf . . • - ' . ( ' ; • . • ; - : . . . r c ' . ■ • •’ - • - • ' $ nua aavl9a*x#0% ’ ' i ■ : . ' / ' . • • . / ' ■ T ' - ' - - . ■ . b£oi j . ; . e. ■■ fto - ; c ■ . j 8 0 ' . • ' JDHB • ■ noD silt ■- ’ ' ; ' &tsl ® util no o o.t bs '' 3 j' fX'-’ . 8 Ifit j ■ • J, 6/5/34 Mr. Vann, and Mr. Lohnes, an attorney here, and they assured him that they would get the matter straightened out with the Commis¬ sion. They undertook it and certain other attorneys in the city of Washington, D. C. were employed apparently to assist Mr. Spriggs. All of a sudden Mr. Spriggs found out that the attorneys here employed were working in the interests of Mr. Guffey, and that Mr. Guffey wanted this radio station for his own account for political broadcasting in Pennsylvania. " Representative McGugin, of Kansas, said that when the government had the power to issue licenses to operate radios, it inherently follows that this government has too great power over the control of speech. "I have no personal complaint", Mr. McGugin continued. "No Republican Member of Congress can have any personal complaint, so far as I know. It is my understanding that a Republican Member of Congress can get on the air whenever he wants to with either of the chains on any reasonable time or occasion, but there it stops. The ordinary private citizen who is a Republican cannot get on the air to discuss the other side of some of this so-called ’new deal1 legislation. "Former United States Senators who are Republicans have been denied the opportunity to appear upon the chains to discuss these public questions. I can say of my own personal knowledge that the Honorable James A. Reed, former United States Senator from Missouri, was denied the right of the air to discuss his views of the proceedings in the Wirt hearings. This was a denial of freedom of speech. A Republican Member of Congress - yes - could have had the aid to discuss it if he had wanted to, but it is not enough that Members of Congress of the minority party or with minority views may have the benefit of the air. This right must be extended to other citizens. The very week that former Senator Reed was denied the opportunity to discuss over a national radio hook-up the treatment accorded to his client, there appear¬ ed upon that same network propaganda from private citizens who were denouncing and criticizing Dr. Wirt. - "In other words, private citizen James A. Reed was denied the opportunity to discuss one side of that question, while other private citizens had an opportunity to use the air to dis¬ cuss the other side of the question. The only answer can be that those in charge of the radio facilities were either currying the favor of this administration in permitting private citizens to take the air to denounce Dr. Wirt, or they were afraid of currying the disfavor of the administration if they permitted Senator Reed to speak over the air to criticize any of the ’brain trusters. ' "There still remains the freedom of the press. The press carried the same subject matter openly, both sides of it, and carried the views of Senator Reed as well as the views of those who had contrary ideas. "So in conclusion I wish to say that with all the great- nessof radio, the liberty of the people of this country yet rests in the press and not in the radio. I hope that at some time a plan may be devised whereby the use of the air will be free with¬ out censorship or discrimination. XXXXXXXX - 4 - . . • • ■ . . . . ■ . . [ fix £? ■ : • - ' ... gi is. sc :• . r v ‘ "■ ‘ ; ■ : .v ' .. ■ 0 . 1 S ' P ■ .. . BsariB>: * • I . - . : . S { . ;*S€ • ■ : - ' .... ' . - ■ .x-Ioaaqa lo loccinoo aril ... . ■ . ‘ ■ . - .-lie : CO - ... ; >xtf lo ■ ... nos os 1 ' ^ ; ■ . - . 0 : ;H .A • t'&S ■ ■ ' - . ... .... . ■ t bl bBf i • ... . - . . . .- . . • -■ . . avail. 8 r ; . . - ... . : - • • : ' .... ' . ' 3 ; Ilia Slav! ... - ■ s . i ■ i l no Id :. - . . W . ' , ' 1 " - .. ' - /SC ?:f £Go n- :■ . a ;' x5 - . - i V.I-il , ... a ... 1 I'Bff QXl W . a / .. . I '■ s Ji- ?.s - oc : . ... - : . ' .■■■■.■ •• • •' ; " • ■ • vs . . .' , . ■ .. . ■ ' e . .v 1 ' 6/5/34 REHEARING SCHEDULED ON RADIO CODE LABOR PROVISIONS Labor provisions of the Radio Broadcasting Industry- Code will be considered at a public hearing Wednesday, June 20, in the Raleigh Hotel, Deputy Administrator William P. Farnsworth will be in charge. On the basis of the hearing, a decision will be made on whether to continue the labor provisions as they were approved November 27, 1933, by the President, or what changes are necessary The Code Authority has investigated the operation of these provisions, particularly in respect to broadcast technicians Copies of their reports to the Administrator are available at the Code Authority office, 970 National Press Building, Washington, D. C XXXXXXXX F0RT> SHORTWAVE STATIONS ON THE GRILL Following closely a court decision upholding the Administration in barring agents of the Ford Motor Company from obtaining Government automobile contracts, the Federal Radio Com¬ mission yesterday (June 4) started hearings on whether licenses of three of the Detroit manufacturer’ s radio stations should be revoked. These three short-wave experimental stations are X8XC and W8XE, at Dearborn, Mich. , and W9XH, at Lansing. They operate with 1000 watts power on a frequency of 389 kilocycles. Gerald C. Gross, a Radio Commission engineer, testified shipping interests asked revocation of the licenses on the ground that the Ford stations drowned out distress signals on the Great Lakes. He said the problem would be solved if lake ships could afford modern receiving apparatus. Ford services to American aviation, including erection of a mooring mast at Dearborn, Mich. , and perfection of radio and other aviation equipment, which the company undertook at its own expense, were cited by Ford representatives before the Commission as reasons why the Government should not take away the permits of the stations. At conclusion of the hearing, Ralph L. Walker, Commis¬ sion Examiner, announced he would hand down a written report. Ford will have opportunity to file written exceptions to the Examiner’s conclusions, and argue orally wrhen the matter comes up before the full Commission in a few weeks. W. 0. Gassett, of Detroit, a Ford engineer, testified one of the stations under fire was the last in communication with the Shenandoah naval dirigible which crashed several years ago in Ohio. He added the Ford mooring mast had been of immeasurable value to Government lighter- than-air craft. - 5 - . . . ; -I o , 'vo \c ,i ... ;.t 5; • ~ ./ v;i fOfVGj *73 T5c'fuf3VCvI I • '. ' ... . . : 0. $ ft 3 £ 1 ■ • fc , 01 i • c v ' . 0 . a : c o- • - , ; ;.oi. • . C ; vi- ' : ' fiU : sf Hi •" ax 3 3 . . rODj :lv ■ . .0 .. ' : ' ■ : ‘ , . >0 - ..•■■■ * . ■ - • . •- . . '.C. ' , ; ~t r±o 1 ; •Oil • ' .. ; -i; JO 3 Hi . •• ,vr,- - ■ w .. [GO . • ' ■ -•*:! • ■ :• -f \r-r, , • -i if O vf r • •« . ■ ■ J • -- \ . 1 \ •: .7 • y-ix'dnl ■ • ; fi, ■ • ) '. . ■ L • r : ... .() ' 3 i' • ; v -i • - ■ „ V ’• v ■ v . 3 :j . . •> - " ... . , j-J . . • -. 1. -• &.t ■ : ■ . . .. v , *• \ . .. ■’ • . /J } v : ' lU a ■ ' ' -• -v ' v/ - ■ . • ■ ’ . r. ' ■ i • 6/5/34 The engineer declared that if the licenses are not renewed Ford experimental work will cease. Under questioning he conceded research had been greatly curtailed since the depression, but said the organization was ready to resume once the license question was settled. Commission officials commented privately that the radio dispute had its inception before the Detroit manufacturer' s dif¬ ficulties with NRA began. XXXXXXXXXX NO TIME LOST CONSIDERING COMMUNICATIONS BILL Not a day was lost in naming the conferees and getting down to business following the passing of the Communications Com¬ mission by the House. It is usually customary to wait several days before appointing the conferees, but Speaker Rainey, speeding up things named the House conferees last Saturday, the day the Bill was passed. They were Chairman Sam Rayburn, of the Inter¬ state Commerce Committee (D), and Representatives Wolverton (R), of New Jersey; Huddleston, of Alabama (D); Lee of Missouri, (D); and Mapes, of Michigan (R). Of course nothing further could be done Sunday, but yesterday (June 4) Vice-President Garner named Senators Dill, of Washington (D); Smith, of South Carolina (D); Hatch, of New Mexico (D); Couzens of Michigan, (R); and Wallace White, of Maine (R), on the part of the Senate. This afternoon (Tuesday, June 5), the Conferees were called together for their first meeting. It is presumed from this that President Roosevelt has indicated that he desired the passage of the Bill expedited. If the Conferees should agree upon the House Bill, because of the fact the Radio Act will not be repealed, the new Commission will be under the jurisdiction in the House of the Merchant Marine and Radio Committee, of which Judge Bland, of Virginia, is Chairman. If the Senate Bill is adopted, the Commie sion will be under the jurisdiction of the House Interstate and Foreign Commerce Committee, of which Mr. Rayburn is Chairman. In either case, insofar as the Senate is concerned, the Commission will be under the Interstate Commerce Committee, of which Mr. Dill is Chairman . Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters has directed a letter to the House Conferees expressing approval of the Broadcasters of the House Bill, and urging them to stand pat. He has addressed another letter to the Senate Conferees expressing the hope, in behalf of the broadcasters, that they may yield to the House pro¬ vision which is simply to abolish the Radio Commission, retain the Radio Act, but add no additional legislation until the new Commission has had an opportunity to make its recommendations. X X X X X X - 6 - 6/5/34 : BUSINESS LETTER NOTES Wireless traffic out of China has increased nearly five times over the figures for 1929, a report by the Ministry of Com¬ munications has revealed. Last year's outgoing wordage totaled 2,250,000, providing a revenue of $3,000,000 silver. So far as radio engineers are concerned, the forthcoming flight into the stratosphere under the auspices of the Army and the National Geographic Society, will be a search for the cause of dead spots and of fading in radio reception. The effects of cosmic rays and the directions from which they bombard the earth are to be studied, perhaps more than 70,000 feet in the sky, by Capt. Albert W. Stevens and Ma j . William E. Kepner. For terseness of expression, nothing will better Ted Church's reply to C.B.S. Division Engineer Henry Grossman, just before the fleet review in New York last week, the Washington Post comments. Church, of Station WJSV, Washington, boarded the Airplane carrier "Lexington" at Guantanamo, to enable him to broad¬ cast the Fleet's arrival in New York. Goodman, certain something terrible was going to happen, wired: "Did equipment weather flight to Grantanamo Bay? Did you arrive on Lexington 0. K. ? Are you set up O.K. ? Are you getting signals O.K. ? Is everything working out as per pre¬ arranged plan?" Church: "Yes". XXXXXXXX DON FLAMM HONORED BY FRIARS Donald Flamm, of Station WMCA, New York, has been elected a member of the Board of Governors of the famous Friars Club. Among the other Governors are Sam H. Harris and Lou Holtz. George Jessel was elected Abbot of the Club; Rudy Vallee, Dean; Jack Benny, Prior; and Pat Rooney, Recording Secretary. XXXXXXXXX - 7 - CHICAGO BUREAU WOULD REPRESENT NON-PROFIT AGENCIES Representatives of educational, religious and other non-profit making organizations in Chicago have been approached by the Chicago Civic Broadcast Bureau, which describes itself as ,ran Illinois Corporation not for profit - to Act as a special¬ ized business representative for public-interest organizations or agencies, in Chicago and vicinity, which may desire to carry on radio broadcasting under direct Federal license, with the purpose of serving the public convenience, interest, and necessity, and not of earning returns on any particular radio transmitting plant" . The officers of the Chicago Civic Broadcast Bureau are Arnold R. Barr, President; T. V. Smith, Vice-President; Mitchell Dawson, Secretary-Treasurer; Arnold R. Barr, Herbert Bebb, Mitch¬ ell Dawson, Frank N. Freeman, and T. V. Smith, Directors; Harris K. Randall, 315 Plymouth Court, Chicago, Manager. "In seeking the best avenues toward radio improvement, it is wise to compare practices and results in other fields where amusement and advertising enterprises are conducted on public property", a prospectus of the Bureau sets forth. "Fortunately, there is in Chicago at this time an outstanding example of activities of this kind, conducted under a form of organization designed to do full justice to both the private and public rights involved. In A Century of Progress we see the occupancy of a valuable public site in Burnham Park granted free by a State authority, not to private commercial or amusement firms, but to a non-profit body of commanding personnel, broadly representing the various community forces of Chicago. This body then sells space to advertisers and amusement concessionaires, limiting their number so as to insure to all a fair opportunity to earn revenues out of which to meet their space rentals and other fixed charges. The central management uses the proceeds to meet the cost of the more purely public- Interest features of the exposition. The final profits, if any, are divided among a number of institutions operated in the public interest. "If we can imagine this relation reversed - the conces¬ sionaires in full control of the World's Fair, with a mere vague obligation laid upon them to see that their respective activities are 'in the public interest', we get a startling analogy to the anomalous interpretation of the 'public interest' prevailing on the air. "If, on the other hand, the requisite broadcast licenses in the Chicago area were entrusted to hands well qualified to hold public resources as a public trust, these could obviously exercise a corresponding control over the city's broadcasting. They could supervise program material, collect fair prices for time in bulk from commercial agencies competent to serve adver¬ tisers, and use this money in maintaining a service of strictly non-commercial broadcasting, both recreative and educational.* * * - 8 - ,-r I ;v ; •* *1,4 rt ' l ■ i ... . • . if' . • 0 XriB er -.t- a 1 .bo ile SC '■-‘vO ii.- nX i ■ • o .. . cl vtlb • rcr-no;/ . • ! .. W s: CHS'ii.rF • , ai‘ cUiOTEC’ *i61 i ■ ■ ■ . V £ J s£> ■ > ; Ti CCC .. j • J o xq:i X 0 8 orJ -iircf see • - v 03 sc f;a ' 1’. 1X05 ■■ 3 9. on .. OG’\U . : • ■ .c v'f-jj ; . y ' f . ; . ' . q • ■ • . . S h 3 ■ XX X V ( V .. brrn.rq ‘T ■■ .U : . OrY •,.:1 ‘ 0 XO •OJ3®GiilC c , : lL'i-o onT ■ -X p. V ■ . ... Sa • r . » ‘4- lb . ... .. • .. j. ■ ; • ‘ . C.'-X'.'r ■ 'T ' r; ' ff kjl •• . -■ ., . ‘ ‘ '• M . : v . . 4> jV- r f • • • ... vtnem '-rv 0 4 / q....; Oil ; .wo . ,C.. ' .. u Q£.lo ; !r 3/(w : !■ n ; c «•; ./ .*• , i. a jh r ■ . .... . V • : :. -T ; no JbsXo ji) noc •I'B sa 1' tep i . ' '■"■3 b V 1 £• i:xs ' ) ( ; ,“W O1 *rl O J- , ■ ■ srii - . ■ • yjj J ose XC @ . : ■■ H < : . fi si •■■■' : . nrxobt t- i-< •JJ. XU U ufj. K' ■ ; ■ • '■ : ■ x - ' ' J A ' nl ,l)9vIovni Mcc j. .... 'OJ '5 . • • ! -• ■.. . tXoi ■ Jigs ■ nsrti y;5oc aiiiT ■ ; i ' •' ■ . ' 1 . B i ":Q.j ..... ' • f ' giro . -- ■ ’ • ■■ ■ ; - ' ... ... fyXvj.rt 'U- . ' ri.rldi • ; ' . .. on - 1 j . t '■ aj ' " . r.{jv)a vsnT •' i i 3l'L\ . , f . " . "The Radio Act does not require that each license be held by a different person: one private party now holds licenses on two out of Chicago’s three regular clear channels. In many cities one party holds 100$ of all facilities locally assigned; for example, the University of Illinois at Urbana, Ill. The City of New York has held a broadcast license for years (Station 17NYC). The Federal Government recently transferred an important Chicago channel from one private party to another, without com¬ pensation of any kind to the first, over his violent protest, ano without denying that his broadcasts had been ' serving the public interest. ’ The action was upheld in the U. S. Supreme Court. "In Elmira, New York, all the air time used is controlle under license issued to Cornell University at Ithaca. The university, holding this time for its educational station WESG, but not now requiring for educational purposes all of the time it controls, sells the remainder to a reputable commercial concern at a bulk price and retains the right to rule out objectionable advertisements. "There is absolutely no governmental requirement that licensees shall own the transmitting plants from which their broadcasting goes out: many of them do not. * * * * "The Chicago Civic Broadcast Bureau temporarily is con¬ trolled by individuals. Under its by-laws full voting control will pass into the hands of the public- interest agencies which affiliate with it as ’participating members. ' Financial and other supplementary data will be laid on request before the administrative officers of any institution or organization which is operated in the public interest and not for the profit of individuals, and whose interest in broadcasting does not proceed from a desire to profit financially therefrom, or to employ profitably any particular electrical apparatus. "The Bureau will offer every legitimate aid to its participating members toward obtaining for them appropriate radio licenses. Following this, the Bureau's planned services will extend to the advantageous selling, in bulk, of blocks of time on the air, as well as to other methods of obtaining funds for the conduct of broadcasting. They will extend also to the purchase of transmission service, by radio and by wire, for the account of licensees whom the Bureau may represent; and where desired, to the purchase of talent and production of programs. Legally, the Bureau will continue to be well advised, in the interest of its member agencies as servants of the public good." Dr. Smith is professor of philosophy at Chicago Universi Dr. Freeman is professor of psychology at Chicago University; Mr, Dawson is a lawyer, and Mr. Bebb is Vice-President of the Chicago City Club. XXXXXXXX 9 - r 6/5/34 ANNOUNCING THE CONFIDENTIAL COMMUNICATIONS NEWS SERVICE With, the creation of the new Communications Commission, the scope of the confidential He ini News Service will be enlarged to include all branches of Communications. The Communications Commission will be covered by this Service just as radio has been covered in the past. The confidential service was started in 1924 and has been issued without interruption ever since. Even despite the depression, the Service has been able to hold its own and today is subscribed to by representative concerns in the radio manufacturing, broadcasting and communications industries. Because the Service is privately published and does not depend upon advertising for its existence, it has been possible to be more outspoken and independent than any industry organization bulletin, or trade paper carrying advertising. The support given the Heinl Radio Business Letter by its subscribers has been greatly valued. If now subscribers could bespeak a good word to any pro¬ spective subscriber in the Communications field, or could give us the names of anyone who might be interest¬ ed in becoming a new subscriber, it would be deeply appreciated. Thanks, in advance! R. D. H. 10 - - X 6/5/34 WHITE FLANNELS O.K. FOR RMA BANQUET Formal dress will not be required for the big banquet at the Stevens Hotel Grand Ball Room celebrating the Radio Manu¬ facturers* Association tenth anniversary on Wednesday evening, June 13. " Considering the Chicago climate and comfort of guests, formal evening dress is not mandatory", Paul Bc Klugh, Chairman of the Banquet Committee said. "In Chicago, according to the Banquet Committee, in June, ‘formal* attire includes summer cloth¬ ing, white trousers, etc. Either formal or summer formal attire will prevail at the banquet." The coast-to-coast broadcast by the NBC for the banquet from the Stevens Hotel Grand Ball Room has been completed by Bond Geddes, Executive Vice-President. Reinald Werrenrath, baritone, in solos and chorus with a double sextette of male voices from the Chicago Opera Company, and Miss Alice Mock, formerly of theChicago Grand Opera, supported by a double octette of women's voices, will be the outstanding stars of the musical program. "No speeches" will be the order of the evening. The annual meeting will open Monday, June 11, with a meeting of the RMA Board of Directors, and on Monday evening there will be a reunion of all past officers of the Association at a "President's Dinner" tendered by President Fred D. Williams of the Association. Prominent speakers have been secured for the opening meeting at 10:30 A.M. , Tuesday, June 12, of the- RMA and Radio Wholesalers' Association conventions, in the Stevens Hotel Grand Ball Room. New officers of the RMA for the coming year will be elected Wednesday afternoon, XXXXXXXX DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (June 5, 1934)" WFBC , Greenville News-Piedmont Co. , Greenville, S. C. , C.P. to change frequency from 1200 kc to 1300 kc. , increase power from 100 w. night, 250 watts day, to 250 watts night, 1 KW-LS and make changes in equipment; WTAG, Worcester Telegram Pub. Co. , Inc., Worcester, Mass., authority to determine operating power by direct antenna measurement. Also granted license covering local move of transmitter; 580 kc. , 500 watts, unlimited; KMBC, Midland Broadcasting Co. , Kansas City, Mo. , license for auxiliary transm. - 11 . -•'•m :;.a •• o. :• oj.-ikiiaj-i ■ )&i ' r ' j n it m . '. ! . i . XI • . ' . fi . UJ J , ' Dt ' , ■ . . I'XC-i&l » ’ SBTXC ■ ' ■ . . : d . ... ■ J..: : V”?.:/ IJEiw ' . . ■ • . b . txw £ solos ' 1 ' : . ■ s - i . . . . . . ■ ■ e mm j ’ . f r :sJm er. ' : o e*-? sit; i-icf XXiw “sQiiosoqa oil” . ' : r i ■ v s - : ' ’ ' . [§ • .....' ■ ' ■ .. ■ O: • ■ “ . 2. .3 vo . /ioo ;T ah . •” . *;o' e- . taioaa • ;.i ■ ^ox 10 cod. - , : v : _ ' ' . • * 6/5/34 950 kc. , 1 KW, for emergency purposes; KOA, National Broadcasting Co. , Inc. , Denver, Colo. , license covering installation of new equipment; increase in power and moving of transmitter locally, 83' kc. , 50 KW, unlimited; WCSC, South Carolina Broadcasting Co. , Charleston, S. Carolina, modification of license to increase day power from 500 watts to 1 KW; TONS, TONS, Inc. , Columbus, Ohio, modification of C.P. to extend completion date to Sept. 1, 1934; WHET, Dothan Broadcasting Co. , Dothan, Ala. , special temporary authority to operate from 6:45 to 10 P.M. CST, on June 8; KG-IW, Leonard E. "Wilson, Alamosa, Colo. , special temporary authority to operate simultaneously with KIDW from 8 A.M. to 12 noon, MST, daily, except Sunday, for period ending not later than June 30; KIDW. The Lamar Broadcasting Co. , Lamar, Colo. , same as above only simultaneously with KG-IW. Also, State of Washington, Dept, of Fisheries, on vessel "Governor Isaac I. Stevens", and on vessel "Governor John R. Rogers", police service license, 2490 kc. , 50 watts. Miscellaneous Julio M. Conesa, Puerto Rico, granted petition to remand to docket application for C.P. for new radio broadcasting station to operate on 1420 kc. , 100 w. ; case reopened to permit applicant to submit further evidence; Charles Dixon Gentsch, Greensboro, N. C. , C.P. to erect new station heretofore set for hearing, was dismissed at request of applicant; KGKO, Wichita Falls Broadcast¬ ing Co. , Wichita Falls, Texas, special experimental authority heretofore set for hearing, was dismissed at request of applicant. Ratifications Action taken May 28: WTAG , Worcester Telegram Publish¬ ing Co. , Inc. , Worcester, Mass. , granted extension of program test period for 30 days; Action taken May 29: KORB , Radiomarine Corp. of America, New York, granted 60 day authority to operate aboard "Sundance" pending receipt and action on formal application, 5500 to 17000 kc. , 50 watts; WKDI , same Co. , granted 60 day authority to operate aboard "Buccaneer", pending receipt and action on formal application; Action taken May 31: WIFJ, Same Co. , granted 60 day authority to operate 200 watt transmitter aboard vessel "Sierra", WIFK, same Co., same - aboard vessel "Col. E. M. Young"; WIFL, same Co., - same - aboard vessel "Sumatra." Action taken June 1: WGLC , 0. T. Griffin and G. F. Bissell, Hudson Falls, N. Y. , granted voluntary assignment of license to Adirondack Broadcasting Co. , Inc. ; WQPX, Stevens Luke, Thomasville, Ga. , granted temporary authority to remain silent for period of 15 days, in order to replace antenna system; WJJD, WJJD? Inc. , Mooseheart, Ill. , granted special temporary authority to operate station without approved frequency monitor for period of 15 days; WFEA, N. H. Broadcasting Co., Manchester, N. H. , grant¬ ed modification of C.P. for extension of 30 days from May 30 of time allowed for making field survey and submitting data; W2XBR, Radio Pictures, Inc. , New York, granted special temp. auth. to operate station for period of 30 days from June 1 on 1550 kc. , pov.- er as in existing license. X X X X X X - 12 - ... i s .. . i ;a ■ /■ ^ 1 0uL' r. vo roj-*. - ■' a, xmJ: avo; .'vrteoil .o.icV , ir vue i .. • •"■•• < •• Zb oo ■ . 10 '- - - ' ■ ; t a l e . : ; . - . ne ■ •• ■ ■ ■’ . . ; . ■ >fi3 ■ ■ - , • ■ • . . ’ Cc . . t ,02l 00&S *oenao il joivis a ©•: -.Xoc ; ' -.1.; ' ' ■ ' ' ' - • - ' - ' • ■ U ' it . , ' ' ~:- . . . ' ■ - . . - : ; ' . . . ■ ■ . ■ ■ . : . h ■ ■ i lo - . - JBWB « *0' ! ' . . , . . h fta -■ io insrii-g : : 3 . ’ , .o.o u\ . i . ;‘oA . Vi. < i Unft 7to,i£>jjH tXi eaJtS : 3 n . . • • . 3 u -■ ■ • - . . . ■ ' ' . ni cr Inc. fTii Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. 1 1334 CONFIDENTIAL - Not for Publication 1 ii ;s; INDEX TO ISSUE OF JUNE 8, 1934. Republican Senator Assails Communications Appointments . 2 Newspaper Guild Sees Censorship Peril . 4 Jenkins, Television Pioneer Dies . 5 Communications Bill May Go To President Within Week . 6 Believed New Commissioners Will Be Appointed Soon . 8 Germans Prefer American Pitchpine In Radio Construction . 8 Radio Advertisers To Meet In New York . . . 9 Business Letter Notes . 10 Suit For Alleged Lifting Of Magazine Line . 10 Decisions Of The Federal Radio Commission . 11 No. 730 ; ■ ■ • ■ : REPUBLICAN SENATOR ASSAILS COMMUNICATIONS APPOINTMENTS At a time when the question as to who President Roosevelt may appoint to the Federal Communications Commission is uppermost, Senator Dickinson, Republican, of Iowa, created a sensation by declaring that though Judge Sykes, Chairman of the Radio Commission would be reappointed, it was only on condition that he would pro¬ vide more jobs for deserving Democrats. Senator Dickinson, who recently introduced a resolution, that past acts of the Radio Com¬ mission be investigated, said that Commissioner Lafount, Republican, and Dr. C. B. Jolliffe, Chief Engineer "suspected" of being a Republican, were slated to "walk the plank. " As a result of Senator Dickinson's charges that the Commission, because of political pressure, had reversed itself in the Shreveport ("Old Man" Henderson-KWKH-WWL) , New Orleans case, Senator Huey Long, Democrat, of Louisiana, proposed that there be a Senatorial investigation of the entire situation. Senator Dickinson prefaced his attack by saying that though the Senate had passed a voluminous Communications Bill "in all likelihood very few of us were sufficiently familiar with the technical aspects of the subject and its many ramifications to have any definite idea of what the Bill did or did not accomplish. " The Senator declared his greatest concern was the personnel of the Commission. "The rumor is current that the White House has already prepared its slate of appointments, at least in part, and that con¬ ferences on this subject have taken place between the President, certain Senate Democratic leaders, and last but not least, Post¬ master General Farley", Senator Dickinson said. "I do not know what names, if any, have been agreed on, although the same rumor has it that the present Chairman of the Federal Radio Commission (Judge Sykes) is certain of reappointment. I have even been told that to get this reappointment, he has had to agree to provide more and better jobs to help assuage the appetite of the Democratic patronage machine, and that this involves the sacrifice of several important and competent members of the Radio Commission staff, including Dr. Jolliffe, the Chief Engineer, who are so unfortunate as to be suspected of Republican tendencies. I do not charge that this is so; I hope it is not; for it would be a calamity if the Radio Commission should lose the services of a man like Dr. Jolliffe. "It is also said that among those slated to be ousted is Commissioner H. A. Lafount, of the Fifth Zone, who, the broad¬ casters tell me, is head and shoulders above the rest of the Commissioners in ability, in industry, in common sense, and in all other qualifications which go toward making a good Commissioner. " 2 6/8/34 "Mr. Lafount has been the least subject to political pressure. I regret to say, however, that he is a Republican, one of the two Republicans on the present Commission. What is even more unfortunate, I am told, he failed to vote according to instructions from the White House in a case which the Commission had before it, the so-called 'Shreveport-New Orleans case**, in which one or more of the other Commissioners shifted their votes back and forth at least three times in an endeavor to accommodate the conflicting desires of Postmaster General Farley and the White House, the latter speaking through Col. Louis Howe, of mess-kit fame.* * * * * "Will the Senate of the United States have an opportunity to pass intelligent judgment on the fitness of the new appointees? Or will the appointments be thrust at us at the last moment, with no opportunity to study their merits, thus facing us with the un¬ pleasant dilemma of either accepting the President's choice blindly and with misgiving, or leaving the new Commission completely up in the air by our failure to confirm, to be followed by recess appointment?" Senator Dickinson declared that the Senate should pass his resolution to investigate the present Radio Commission. "Why I am told that at the Radio Commission, the Commis¬ sion first decides a case and afterward has its lawyers write the decision", the Senator continued. "Ridiculous as it may seem, thes° lawyers decide and state the Commission's reasons for a particular decision. These are the same lawyers who later must defend the decision from attack in court, if an appeal is taken. In the Shreveport-New Orleans case, I am told, a young attorney in the Commission' s legal division wrote and rewrote the Commission' s decision and the Commission's reasons for the decision three times to keep time to the dance of the Commissioners' chameleon-like votes to the tune of White House music. Mind you, this was all on the basis of the same hearing, the same evidence. " The Senator said that these Radio Commissioners are not appointed for life and, unlike our Federal judges, are all too likely to yield to considerations which may have an effect on their reappointment, or even on the amount of their appropriation. "They are legitimately accessible to parties, attorneys, Congressmen, and White House secretaries on matters having to do with the exercise of their purely routine administrative functions, and perhaps also their legislative functions", he argued. "This makes it all too easy for them to be similarly accessible to per¬ sons who wish to talk to them in chambers about some pending case. Having made the very rules under which they decide cases, it is all too easy for them to wink at a violation in one ca.se and to make it the vehicle for drastic discipline, such as closing down a radio station, in another, although in the latter case the reas reason may be something entirely behind the scenes. " 3 i ' . s . & i: ,'lo .ar. ' a ' i f or£u ; anBoilcfiiqg/l owd ‘ aiid rlo . . , 19300$ • - ■ - • ■ . ■ J ■ ' C9§ -'&Mt * sng . - • ; • : ' '■tJ.vur.oD- o. "-'ad : 1 1 . - 9 ■ . • .• • • s- *• ' ,TCJ • - -- hn'B L ?■ . Jt: a J r; a :■ :L O'.; •'j ' ax. , . ■ • • • • %t:q . ../ A- • TOT . O-Jl 10$ • / V-. " ■ yjTi T ; i L . . '■:> U - ,L 0 A j ; ;J 0 ' ... ' ■ • • ■■ • . ■ ' ■ ' - • > ’• “ ■; ' . • . . ' . - • " r " : . 0 .t • -i . W . .. • • .... ,63 ■ ■ b . bi tc'j'm i ■ . . ,, • • • ... . 0 ' . . *■ . .. ■ ' v >. ■■ j . i. '• O'i' ’3 c J ' • : •; '•■■■ ■ 0X1 ' ...l/o' ... ‘>AX; : . ■■ • a • x • i : '■ ;. ' ' • ...' . . ... 6/8/34 Senator Dickinson referred, to a series of articles by Arthur S. Henning in the Chicago Tribune , alleging White House and other political influencing of Radio Commission decisions. "If one-half of what Mr. Henning states is true, impeac..- ment would be a mild reward for the conduct of some of the Commis¬ sioners. We have impeached judges for far less", the Senator concluded. "What our friends on the other side of the aisle are pleased to call the ’air-mail scandals’ pale into virtuous dealing beside these charges. We cannot abide that such men should be entrusted with the regulation of the transmission of all intelli¬ gence in this country, including broadcasting and the communication of news by telegraph and cable." It was a coincidence that on the day Senator Dickinson referred to the Shreveport-New Orleans case, that the District Court of Appeals dismissed at the station’s own request, an appeal filed by Station WWL, of New Orleans, against the action of the Radio Commission favoring KWKH at Shreveport. XXXXXXXX NEWSPAPER GUILD SEES CENSORSHIP PERIL A resolution adopted by the American Newspaper Guild National Convention at St. Paul called for action on the part of newspaper publishers against the Rayburn Communications Bill. The convention asserted that Section 606(c) of the Bill constituted a menace to freedom of the press. Members said that under it the President, in event of war or national emergency, could close wire and radio news stations or censor news passing through such agencies. That section of the Bill, the resolution said, was "most alarming and contained a dire threat against freedom", and was "un- American and inhuman, an irrestible invitation to dictatorship in its ugliest forms. " "Without free channels of information, there can be no guarantee of liberty and the bill of rights in the Constitution of this Republic becomes a naked fraud", the resolution said. XXXXXXXX 4 JENKINS, TELEVISION PIONEER DIES Dr. C. Francis Jenkins, inventor of the radiovision and telephotography systems hearing his name, the motion picture projector and countless other notable devices, died on Wednesday, June 6, of heart trouble at his home, 5502 Sixteenth Street. He was 67 years old. Dr. Jenkins had been in ill health for more than three years. He was stricken with angina pectoris in June, 1951, while on his way to the West Coast, and was taken from the train at Chicago in a serious condition. Returning to Washington, he began a long battle to regain his health, and appa.rently was well on the road to recovery when he suffered another severe attack last March. His condition had been grave since that time. During recuperative periods after his original attack, Dr. Jenkins had endeavored to continue supervision of certain experiments at his laboratory in connection with his most recent development, a home movie and sound recording camera. Jenkins was born in Ohio, but was raised in a Quaker settlement in Richmond, Ind. It was while working as a clerk in the United States Life Saving Service, forerunner of the Coast Guard, in 1890, that Jenkins began dabbling in inventive matters. He later told friends how his office colleagues decided he was "queer" because he contended it was possible to make pictures move. He was in danger of being fired for neglecting his office work, when he decided to resign anddevote all his time to inven¬ tions. His long struggles against cynicism and adversity were climaxed in 1928 by the sale of his television patents to the Jenkins Television Corporation for $250,000 in cash and stock valued at the time in the millions. Dr. Jenkins built one of the first automobiles in Washington - a steamer and was required to take out a steam- boiler engineer's license to operate it. On March 3, 1923, he transmitter to Philadelphia by radio, pictures of President Harding, Herbert Hoover - then Secretary of Commerce - and Governor Pinchot. Jenkins successful¬ ly photographed bullets in flight, humming-birds and other fast- moving objects. Jenkins built a broadcasting station in Maryland and purchased a plane, which he called his "flying laboratory". Installing sending apparatus in the plane, Jenkins flew over Washington and sent radiovision broadcasts to the ground station. He later inaugurated a regular daily broadcast of radio movies synchronized with sound - said to have been the first undertaking of its kind. In addition to his widow, Dr. Jenkins is survived by his father, A. M. Jenkins, 90, and two brothers, William A. and Atwood L. Jenkins, all of Richmond, Ind. Funeral services will held tomorrow (Saturday, June 9). Interment will be in Rock Creek Cemetery, in Washington. X X X X X X 5 , t ... V - . ; ■-■'a v " . ffi ' . I ' r • • • ■ : • . I : . • too ’ '. w-rtfru.'. CO - ' ... " ■' . d • ■' 5 a r> < : ■' ^ - S . . ' - ‘ ■ . , ■ ■ ■ ; . : f !l • . v. ..' ">• . • ’ 1 ’ t ... . .. ; i. .. -< • ’ v' ‘.v • - '■ ■ ■ • - • " ' : ■ ' . •• T .. : ui. .8 . . . ■ ■ • -• • .* .. . . • ■ ; f ' . . ; • i. ' • • \ ...... ... . .■ - . y - ■ 6/8/34 COMMUNICATIONS BILL MAY GO TO PRESIDENT WITHIN WEEK With conferees having reached an agreement on differing Senate and House Bills to create a Communications Commission, it may be ratified by Congress and in the hands of President Roose¬ velt for his signature within the week. It is believed the President will lose no time signing the bill. As agreed upon by the conferees, the date for the Communications Commission Act to become effective is July 1st. The Senate proposed a five-man Commission, but yielded to the House to expand the membership to seven Commissioners. This means that it will be composed of four Democrats and three Republicans at a salary of $10,000 a year each. The conferees also accepted the House language regarding division of powers within the Commission, permitting the control body to create its own divisions, as under the Interstate Commerce Commission, but forbidding decisions of any division to stand as final, as the Senate measure would have provided. The Senate Bill called for the repeal of the Radio Act but in conference it was agreed to allow the Act to stand. This means that in the House, radio matters will continue to be con¬ sidered by the Merchant Marine and Radio Committee, of which Judge Bland, of Virginia, is Chairman, and in the Senate by the Interstate Commerce Committee, of which Senator Dill is Chairman. The amendment offered by Senator Dill to prevent a monopoly of broadcasting stations in any one community was dropped. The Senate provision with regard to alien ownership. Section 310, was allowed to stand but to be exercised in the discretion of the Commission. It reads that no radio station license station shall be granted to "any corporation of which any officer of director is an alien or of which more than one-fifth of the capital stock is owned of record or voted by aliens or their representatives or by any foreign government or representative thereof, or by any corporation organized under the laws of a foreign country." Also that no radio license be granted to "any corpora¬ tion directly or indirectly controlled by any other corporation of which any officer or more than one-fourth of the directors are aliens, or of which more than one-fourth of the capital stock is owned of record or voted, after June 1, 1935, by aliens, their representatives, or by a foreign government or representative thereof, or by any corporation organized under the laws of a foreign country. " The Senate amendments enlarging the political broad¬ casts and censorship provisions were struck out. In their stead, Sections 18 and 29 in the present Radio Act will be allowed to stand. The former reads: "If any licensee shall permit any per¬ son, who is a legally qualified candidate for any public office to use a broadcasting station, he shall afford equal opportuni- 6 0 ■ . -.it:; r.TTiToo , . ;; A- .-3 ©si v *,7 ! .+ a ■■ a poqp' T ■ 9. •; A ;; .f Xj G.J 0 r o: . . v . ‘ 07.* ' , ■ 4 , : ' ' ' ■ V - - ' ' £ .. ;• ... ' ' " ' t . ; ; ‘ ■ 1 1 : v . I ■ . : '• + t ’.t I: o ox ■I’:,: \7,:c sc f . • • / i: ’ ■-'•.•.I ? 7 . j 7 c ' ; ■ ‘j f ... J ' , :: • ■ w £ £i g • . • ; T ' ■ ” . ? . » • ■ •- • '• : , '. -■ : .. . . 7 ' . ' : 0 !J!3 I j t ’ 0 t *Zi : ■ I ' ■971 - - - >■ II.;. ' '7 V7: •' :Vi ■ ■ ■ 7 : xo no ' ■SB'Xoq'XQO . : ■ :: : : . " : • ■ - : '• ' < • ' ' o ‘ ' . ..I ■A.! . . ' ’ '■ ,■ > •I'- " . ■ ■ • • ; ■ ■ ■ • , < v ri , TojcS ..... : ZOO J3 ©•;,*. Oj U/ O/ .. ■,f, fo * r ‘ U ' 3 ■ ! ids ■ ■■ - . ' ■ ■ ■ 7 •• •; •• • • ; -r ■ ' ■ ’ ' . ' ' ■ . ■ • ' x 4 ■ > ■ ' < .A. , ' 7 . , f::c- . -i/.' ; " ■ L 10 L ■ • ■ ... - . .... • . • V .. • . . f. C.: " : ,• v ■ ■ . ■ - ■ 3 .• : ! . . ' ' V ••• •; • : • r ' / joi . . : • ‘ 4 , 3' ' . ■ i -i • • ■ ■ -• I)nl 6/8/34 In answering protests against the utilization of foreign wood instead of native pine in connection with the con¬ struction of radio towers, Government technical experts point out that German pine has not the weather resistance qualities requir¬ ed by the larger radio stations. On the other hand, they call attention to the fact that wherever American pitchpine has been used, it has satisfactorily withstood the most rigorous tests. XXXXXXXX RADIO ADVERTISERS TO MEET IN N. Y. A revised program for the National Association of Broadcasters' radio departmental meeting and the thirtieth annual convention of the Advertising Federation of America has been announced. The radio departmental is one of 17 national advertising groups that will meet in conjunction with the main AFA convention in New York, June 17 and 20. The radio session is scheduled for 10 A.M. Tuesday, June 19, and to it all the advertising executives attending the AFA convention will be invited. It will end at 1 p.m. with a luncheon with the radio committee of the American Association of Advertising Agencies, after which there will be an executive session of the NAB commercial committee. Chairman Arthur B. Church, of the NAB Commercial Com¬ mittee, drew up the program for the AFA departmental. It follows in full: "Standardizing Units of Sale and Rate Practices Under the Code", by James W. Baldwin, executive of the Code Authority for the broadcasting industry. "Studying Listener Habits", by Walter Damm, WTMJ, with dis¬ cussion to be led by Martin Campbell, WFAA. "What We Have Learned About StationCoverage" , by C. M. Jans), Jr. , Jansky & Bailey. Address by representative of the A. A. A. A. Radio Committee on "A Cooperative Bureau for the Study of Station Coverage and Listener Interest. " "Suggested Standard Forms for Local Contracts", Roy Harlow, Yankee Network. "The Present Trend of Station Relations with Advertising Agencies", Roy Harlow, Yankee Network. "Making a Program Work", Francis D. Bowman, advertising manager, the Carborundum Co. , Niagara Falls, N. Y. "Station Merchandising and the Radio Program", Harry C. Howie tt, WHK. "The Market for Radio Advertising", Dr. Herman S. Hettinger, University of Pennsylvania; "Pertinent Problems in Radio Sales", J. Leslie Fox, WMG A • "Are You Making a Profit and How Do You Know' H. K. Carpenter, WPiF; "Solving Relations of the Station and the Network", John Patt, WGAR. X X X X X X - 9 - : ■ : ■ ; ' n I-" :TTL' ' tq. 9vi:i : ©i t .I© ' ' • % • : IS ' 10 1 . - j oJ' (iOiJn$.x&a : : j a • &ii ' ,/ U. ~ Ji - ■ , ■ ‘ ••• * ,08 ?7 anuL . s: . IOC . ' 7. j aev-lov -i?. : is 71 ..v- .-•« ■' j ,*•*> A • , *• v . v , ' . • . .... / . . . . ■ ■ / .. ' .... ■■ ;• , \7 ■ .. '7. . : ■ ;7i iovoA . .. > rtV 7 ‘ o 7 _• c,. .... i . * r •. .. ■ ’ ' ' ' S ■ H ' - r 7 7.- -.■> /qD no Id '■ o V J, ij i * J r-T • or-j . > : ■ jl . 1 *. . ... * • " . djiCj . • V -» 7 J • , . - ' d r " ... ;■ . 7.7: ;7'.u . \ sl i ,r :ssc ;ini 77 • . . .. : *77 : • '7 . Jwf’ fii q* b i» . • t ~ $ -7 r. iol. ". ;0Ws}':71 A A 6/8/34 BUSINESS LETTER NOTES;:: Although we have seen no printed comment upon it, the Times Wide World photo of the finish of the English Derby, flashed across from Epsom Downs, as reproduced in the New York Times of Thursday, June 7, seemed to us to be one of the best radiophotos we have seen, and to mark a distinct step in the transmission of photographs by wireless. The picture was also distributed in the United States by the Associated Press and other agencies, and printed the morning after the race. A message from President Roosevelt to the Radio Manu¬ facturers' Association, meeting in Chicago for its annual con¬ vention, will be read over an NBC-WEAF network on Wednesday, June 13, at 9:30 P.M. EST. , during a broadcast from the RMA banquet in the grand ballroom of the Stevens Hotel. The message will be read by Paul Klugh, Chairman of the Convention Committee. The St, Paul Dispatch, and the Minneapolis Tribune have purchased WRHM, a 1000 watt station in St. Paul. It is believed under the new ownership, this station will elaborate its news presentations. KSTP, NBC outlet in St. Paul, broadcasts Radio News Service, Inc., bulletins, Stanley Hubbard, Vice-Presi¬ dent, being one of the organizers of the service. WCC0} Minnea¬ polis, of which Henry A. Bellows is President, broadcasts the Publishers National Radio Committee news bulletins. XXXXXXXXX SUIT FOR ALLEGED LIFTING OF MAGAZINE LINE The value of the line "when a dog bites a man, that's news", was placed at $25,000 by Life Magazine, Inc., in a suit for that sum recently filed in the Federal Court in New York against the National Broadcasting Company, Standard Brands, Inc. , and Eddie Cantor, the comedian. The suit alleged that in March, 1934, the magazine printed a humorous piece, which purported to be a conversation between a collie and an Airedale, in which the line was used. The magazine, through its attorney, Henry M. Sommers, alleged that after the publication of the piece, Eddie Cantor repeated substantially all the humor in it in a radio broadcast. The comedian, the sponsoring company and the broadcasting company were held to be jointly responsible for infringement of copyright. XXXXXXXX - 10 - .... t \ ..oar " '• £ . av.yn. aw • iiv.. - 9 rid* 1 o oi oxiq -.rcT ' ... .. Iw nx 9lT cr ffio*'. ... : : • tV- ;:nirls t . .... 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XX ... - ' ;■ v 6/8/34 DECISIONS OF THE FEDERAL RADIO COMISSION Applications Granted ( June 8, 1934} WWL , Loyola University, New Orleans, La. , modification of license for special experimental authority to change hours of operation from Specified to Unlimited, facilities of KWKH, to be considered with application of KWKH(to change frequency 850 kc. and power to 10 KW) (Lafount voted for hearing); KWKH , Interna¬ tional Broadcasting Corp. , Shreveport, La., C.P. for special experimental authority to move transmitter to site to be deter¬ mined, change frequency from 850 kc. , to 1100 kc. , change hours from specified to unlimited and install direction antenna. To be considered with application of WWL above (Lafount voted for hear¬ ing) ; WTBO , Associated Broadcasting Corp., Cumberland, Md. , C.P. to install new equipment, 1420 kc. , 100 w.n. , 250 w-LS-unl; KDKA Westinghouse Electric & Manufacturing Co., Pittsburgh, Pa., C.P. to install new equipment (alternate main transmitter); also license to cover C.P. Also, WRHM , Minnesota Broadcasting Corp. , Minneapolis, Minn., T*-Richf ield, Minn., modification of C.P. to extend comple¬ tion date from 7/16/34 to 9/1/34; first request for extension of time (original C.P. to move transmitter from Fridley to Richfield, Minn) ; KFOX, Nichols & Warinner, Inc. , Long Beach, Cal. , authority to determine operating power by direct antenna measurement; KOA, National Broadcasting Co., Inc., Denver, Colo, (auxiliary), modi¬ fication of license to use old transmitter of KOA as auxiliary transmitter (license covering use of new transmitter granted 6/5/3 KCrIR, KGIR} Inc., Butte, Mont., modification of license to increase night power from 500 watts to 1 KW (no change frequency 1360 kc. or day power 1 KW or hrs. unlimited) ; Also, National Broadcasting Co. , Inc. : New, portable - mobile, C.P. (Spec. exp. ) for 13050 kc. , 10 watts, Al, A3 emission; New, license to cover above C.P.; New, C.P. and license to cover same, (Spec, exp.) for 6350 kc. , 200 watts, Al, A3 emission; City of Hammond (Police Dept.), Hammond, Ind. , C.P. (gen. exp. for 30100 33100, 37100, 40100 kc. , 20 w. , A3 emission, location: portable- mobile; Same applicant, Mobile, Same grant except 5 watts power; same for 11 other grants; WNEJ , Mackay Radio & Telegraph Co. , Inc. , Washington, D. C. , modification of C.P. (fixed public point-to- point telegraph) for specified transmitter site at Muirkirk, Md. ; W10XAP . National Broadcasting Co. , New York, N. Y. , special author¬ ity to operate general experimental station W10XAP as broadcast pickup station on 27100 kc. , subject to filing application for modification of license. Also, Press Wireless, Inc. : New, at Hicksville, N. Y. , and Elgin, Ill., C.P~ ( general experimental) and licenses to cover same, for 1614, 2398. 3492.5, 4797.5, 6425, 8655, 12862.5, 17310 kc. , 5 kw„ , Al, A2, A3 and special emission; New, RCA Radiotron Co., Inc., Portable-mobile, initially located at World's Fair Grounds, Chicago, Ill., C.P. and license to cover same (Gen. Exp, 11 6/8/34 for 86000 to 400000, 401000 kc. and above, 5 watts, Emission: Al, A2, A3; New, C.P. and license to cover same (Gen. Exp.) for 86000 to 400000, 401000 kc. and above, 5 watts, Emission: Al, A2, A3; WHER, Westinghouse Elec. & Mfg. Co,, Portable-mobile, modification of license (Temp. Broadcast pickup) to add the frequencies 2020 am' 2760 kc. ; KEE, RCA Communications, Inc,, Bolinas, Calif., special authority to operate fixed public service station KEE for " con- tact-control " or "order wire" communication with broadcast pickup station KILS, aboard U. S. Coast Guard vessel "Northland" which has left or will leave Seattle, Wash, for its annual cruise to Arctic waters. Action on Examiner's Report Doctors’ Telephone Service, Inc., New York, N. Y. , denied C.P. for new general experimental station to operate on 31600, 41000, 35600 and 38600 kc. , 15 watts; unlimited time, A3 emission (sustained Ralph & Walker, examiners), effective June 15, 1934. Miscellaneous New, Cyril W. Reddoch, The Friendly Broadcasting Co. , Columbus, Miss. , application submitted for denial, applicant having failed to enter appearance within time allowed, C.P. 1370 kc. , 100 w. , daytime; New, Roy W. Buebland, Chippewa Falls, Wis. , submitted for dismissal at request of applicant, C.P. 1530 kc. , 150 watts, 12:00 M to 9:00 P.M. Ratifications New, County & City of Kenosha, Kenosha, Wis. , granted C.P. for 2450 kc. , power, 100 w. , Emission: A3 (action taken 6/6/34) Crosley Radio Corp. , Cincinnati, Ohio, granted special temporary authority for broadcast pickup station on airplane NC-408-H, frequency: 1606 kc. , power, 50 w. , A3, use June 7, 1934 (action taken 6/6/34); KGQI , Radiomarine Corp. of America, New York, N. Y. , granted temporary authority not exceeding 60 days, pending receipt and action formal application to operate 50 w. transmitter, 375 to 500 kc. oceanic and 375 to 425 kc. Great Lakes, A2, third class public service; official No. 229492; change name of vessel from "Lamora KGWI" to "Albo KGWI", action taken 6/6/34; WKBB, Sanders Bros. Radio Station, East Dubuque, Ill. , granted special temporary authority to operate from 9:00 P.M. to 12:00 midngith CST, June 4, 1934, in order to broadcast State election (action taken 6/5/34); KGGF, Hugh J. Powell & Stanley, granted special temporary author¬ ity to operate Tuesday and Thursdays from 7:15 P.M. to 9:15 P.M., Wednesdays from 8:15 P.M. to 9:15 P.M. CST for period beginning June 8, 1934, and ending in no event later than July 7, 1934, pro¬ vided WNAD remains silent. X X X X X X 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL - Not for Publication W1 m r®E»Xff i PI ^'jirn 1 3 1934 ; vri INDEX TO ISSUE OF JUNE 12, 1934. Exit Radio Commission - Enter Communications Control, . 2 Press and Independent Radio Services Rivalry Continues . 4 Automobile Radios Please Finland . 4 Not To Appoint Commissioners Until Congress Adjourns . 5 Monthly Broadcast Advertising Declines But Is Above Average . 7 Commission Under Fire Maxes Station Concessions . 8 Harry Howlett Of WHK Dies . 8 G-ene McDonald Sees Turning Point . 9 Business Letter Notes . 10 Decisions Of The Federal Radio Commission . 11 No. 731 . . . ' ■ ■ ' June 12, 1934. EXIT RADIO COMMISSION - ENTER COMMUNICATIONS CONTROL Highlights of the new Communications Act of 1934, effect¬ ive July 1, are as follows: Abolishes Federal Radio Commission. Provides for a Federal Communications Commission of seven Commissioners for the purpose of regulating communication by telephone, telegraph and cable, as well as by radio. In addition to appointing the Commissioners, President Roosevelt will designate the Chairman. The salary of each Com¬ missioner will be $10,000, and those first appointed will continue in office 1, 2, 3, 4, 5, 6 and 7 years respectively, but their successors will be appointed for a term of 7 years. It is not required, as wa.s the case with the Radio Com¬ mission, that Commissioners be from any particular zone. The Communications Commission, besides taking over the duties of the Radio Commission, takes over all control now exer¬ cised by the Interstate Commerce Commission over telephonic and telegraphic facilities. The Communications Commission may divide itself into not more than three divisions, each to consist of not less than three members. There will be a General Counsel and a Chief Engineer, each to receive a salary of $9,000, a Secretary of the Commission at $7,500, a director of each division at $7,500. The General Counsel and the Chief Engineer will each have three assistants. No assistant will receive more than $7,500. Each Commissioner will have a $4,000 secretary. In addition to these appointments, which will be exempt from civil service, the Commission, subject to civil service and the Classification Act, are authorized to appoint such other officers, engineers, attorneys, examiners and other employees as are necessary. The Bill creating the Commission re-enacted, with modernizing revisions, practically all of the Radio Act of 1927 and likewise took over from the Interstate Commerce Commission Act, with revisions, the parts dealing with regulations of the telephone and telegraph. 2 >: ... v • .. ' '. > • !.i.a --M- v •: .. ' . > , L'-i : ■ - .. ' - ■ - . •' - ill \ -. - ' ' q ■ ■ i i >! _ •: ,j ■ .. . . ■ !" ;!'/>. V ... .. . . . ■ •• . • ■' " .... IX — :. '■ ; .o -. ' .■• ■' rj: x , k! ai • ... ' Oj . ' ' •, ■ • ■ a j " '.to r s ‘i Xh b t OOd , ■ X B . - ' - £ ' & i'. ■ . ■ . : ,tr: ,'iJ a . ■ c t 5.-. ,’il . .0 . <. oi/: -laG liviv iT-i'il ; : A ' ■ - - ’r_,y 1 ... ' ; = Ub::i : ' :aJ •• , . a ta • . : o f ■ . . . [ . ■ • ' '• .•••■• ; ■ . . . 1. ... - ■ 'la ■ ££ i . • . . ; , . - :o rco: ■ ioj 8 X .'i 0 ■ & A new provision is the assertion of full control over all wire and radio communications by the government in case of war or "public peril. " Under this section the President would have authority to take over all wire and radio offices and sta¬ tions with just compensation to persons entitled thereto. The Commission may grant licenses to stations not exceed¬ ing 100 watts power in localities not sufficiently served; if this does not interfere with other stations. The Commission is directed to study the proposal that Congress by statute allocate fixed percentages of broadcasting facilities to particular types of non-profit programs or to per¬ sons identified with particular kinds of non-profit activities. This refers to religious and educational stations and is in response to the effort made by Father Harney of the Paulist Fathers, who operate Station WLWL, in New York, to have 25 % of all facilities allocated to religious and educational stations. The authority of the Commission restricting alien con¬ trol of stations, in the case of holding companies, has been toned down to read that a license shall not be granted to "any corpora¬ tion. controlled by any other corporation, of which any officer or more than one-fourth of the directors are aliens, or of which more than one-fourth of the stock is owned by aliens, if the Commission finds that public interest will be served by the refusal. " The new Commission will be authorized to grant broad¬ casting stations three year licenses and other stations five year licenses. The Commission will be empowered to deal with lotteries by a provision which calls for fine of $1,000 or imprisonment for one year, or both, for each offense for "the broadcasting of, any advertisement of, or information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any list of the prizes drawn or awarded by means of any such lottery. " In reply to a plea from the American Newspaper Guild that the American Newspaper Publishers' Association oppose the Communications Bill alleging that it would lead to censorship, L. B. Palmer, of the A.N.P.A. wired: "There is no provision in the measure which gives power of censorship of the press to the President or any one else. "The section to which you refer was in the Bill as it passed the Senate, ostensibly for the purpose of giving the Government control over radio during time of war. Its language was too embracing and wras eliminated for that reason, "It is our understanding there is a provision for governmental control of radio facilities in time of war such as is now authorized by the Radio Act, but that there will be no power of censorship of the press granted." XXXXXXXX 5 r -v > J.,. f i . o ?! .{.Jjtfr 'o : ./.n y ■\o.(axw^o v ,■»« A r ui . ■ • M%f r ;. OJ Br-rf: ■ . - . • . i i „,.f/ .. . ■« T, • ■' ' • ■ * ., v. ... oi. • ■ • t’. ' ' > '. • i .... > ' v ? ' ; . ■ • tXJ . ht •. ri\‘ ,i.j . ■ ' • •' ft T . • ■ ;-A 11 ; -v ■ ’■ • . . - • • - - '■ - ' • C -tarf.t j -,31 0 ‘ HWOf> . .. . . , ' . . . .■ a ' o . " ia ... . . t . - ■ ■;i:i i . JUS fjX JL.i./W ■ . ,nid LX ■ - i- -v i; 8 :i x.aa. > a\T ■ ' ■ • ■ • :. '... ; .: ■ .. a, ■> .■ . m .i ... • • , j [ i' C' ; O.l' tJ SfiCO ■ • • ■: ». . ....■ : ■: ■ " . , i V i " }1 • . ; iOJ- ' . ^ ' 0 ■ "V JL : . • . 6/12/34 PRESS AND INDEPENDENT RADIO SERVICES RIVALRY CONTINUES The struggle between the Press- RadioBureau and the inde¬ pendent radio news services shows no signs of abating. Joseph R. Knowland, of the Oakland Tribune , in charge of the Western division of the Press-Radio Bureau announces that the following new stations have signed up: KXRO, Aberdeen, Wash. ; KOL and KOMO, Seattle, Wash. ; KHQ, Spokane, Wash. ; KUJ; Walla, Wall, Wash. ; KOIN, Portland, Ore. , and KOREj Eugene, Ore. Mr. Knowland said that the service is now being used by 47 stations in the far West. By way of strengthening its independent service, KFI, of Los Angeles, has subscribed to Reuter's European service. The Yankee Network independent radio news service is building a news gathering organization throughout New England which it claims will be the equal of any newspaper in the section. In Boston today it has on its regular payroll, a city hall reporter, a State House reporter, a courthouse reporter, a Federal Building reporter, police headquarters reporters (more than one for 24- hour service is given) , three desk men, two leg men, a secretary- assistant to the editor, and a staff of some 30 correspondents located in the key cities throughout the New England territory. X X X X X X AUTOMOBILE RADIOS PLEASE FINLAND Finland has taken to automobile radios, Vice Consul F. P. Latimer, Jr. , Helsingfors, reports. One large automobile dealer is ordering all of his Ameri¬ can passenger cars equipped with receiving sets. Finnish bus owners in particular, the report states, are interested in auto¬ mobile radios. One dealer believes that in the near future most busses on long routes will be equipped with radios. The omnibus traffic in Finland is very extensive and there should accordingly be a fertile field in the placing of automobile radios in such equipment. There are eight radio broadcasting stations in Finland, of which six are administered by the Postal and Telegraph Depart¬ ment, the report shows. In 1933 the number of licensed radio re¬ ceiving sets in use in the country was 121,020 as compared with 119,930 sets in 1932, and 90,232 sets in 1929. Radio dealers report that old sets are steadily being replaced with the newer types. The demand is for sets of 5 or 6 tubes and there is pract¬ ically no market in Finland for receiving sets having from 7 to 13 tubes. X X X X X X X - 4 - : 3I30IV T/i: .. _ f ) ;v. . ' ■ -v ■ '■ ■ ? ■ l J \ , , •/. / •: no j .i: y. or: j- .o r' c .. r " \‘C • v: : • : ■ j. r :• o. ■ j ' T - ' ; ' •; 4 : • To . - .13 Wt/o i :id cit Jbs-i 5oX ■ ■ ; ' ' O • . ■ y££ ■ . ’■ • ■' . • ' .. .. J • • " . . . '• : o - - ■ . • ' ' . • - • •• ' ' •' . ' ; <; X X .... ' . ." . ■ ' • .V- . ■'} ■ ■ •' ■ 6/12/34 NOT TO APPOINT COMISS TONERS UNTIL CONGRESS ADJOURNS If the present plan is followed, President Roosevelt will not appoint the members of the new Communications Commission until after Congress adjourns. These Commissioners must be con¬ firmed by the Senate. One vote could block confirmation and the President evidently doesn't want to risk the embarrassment of political interference. If any Commissioner Mr. Roosevelt named now were not confirmed and the President decided to continue him, he would have to serve until Congress meets next January without pay. If not confirmed at that time, it would take an act of Congress to secure his back pay. On the other hand, if President Roosevelt waits until Congress adjourns before making the appointments, his appointees will receive their salary up to time of confirmation and if not confirmed will suffer no monetary loss. According to one person who is supposed to have talked with the President recently, the latter has not as yet given any thought to the appointments and at that particular time didn't even know the exact status of the legislation. Pretty much the same names continued to be discussed as Commission possibilities. It seemed to be the impression that Judge E. 0. Sykes, Chairman of the Radio Commission, would be retained. Also there was considerable talk of Col. Thad Brown, of the Commission, being one of the Republicans chosen because of the latter' s friendship with former Governor James Cox, of Ohio. Dr. Irvin Stewart, of the State Department, in charge of radio matters there, has been mentioned. Dr. Stewart has attended all executive sessions of the House Interstate Commerce Committee framing the Bill and furthermore is a Democrat and a fellow Texan of Senator Rayburn, Chairman of the House Interstate Commerce Committee. Rayburn, it is believed, will have consider¬ able to say about the makeup of the Commission. Dr. W. M. W. Splawn, frequently spoken of as Chairman, is said to have definitely decided not to accept the appointment if offered to him. Judge Ewin L. Davis, next in line for Chair¬ manship of the Federal Trade Commission, is reported as preferring to remain in that organization. Capt. S. C. Hooper, Chief of Naval Communications, continues to be discussed. Also the name of Gov. William A. Comstock, a Democrat, of Michigan, has bobbed up again. His term of Governor doesn't expire until next year. There is considerable conjecture as to the probable fate of Representative Prall of New York, defeated for renomination, and later named by President Roosevelt as a member of the Commis¬ sion but who continued in Congress and has never been sworn in. It seems to be understood that President Roosevelt ex¬ pects to take care of Representative Prall. If the latter is appointed a member of the Communications Commission, due to the 5 j O.r. ; . f ■ i ' fj _ _ 6/12/34 fact that he was a member of the body which created it, he will not be able to serve on the new Commission until after his present term in Congress expires, which will be January 1st. One theory is that if the Commission is organized into three divisions - telephone, telegraph and radio - that there may not be more than two strictly radio men on the Commission. Regardless of their technical designation, it is the opinion of this writer that the new Commission will be heavily loaded down with politicians. Most everyone seems to agree that Herbert Pettey, present secretary of the Radio Commission, will serve in the same capacity on the new Commission. The conference report was agreed to in the Senate Saturday without objection, but it looked for a time as if it might be blocked in the House by Representative Bland, of Virginia, Chairman of the Merchant Marine and Radio Committee. Representa¬ tive Bland, in raising a point of order against the report, con¬ tended that Conference committee had exceeded its jurisdiction by writing into its report a repeal of the Radio Act of 1927, and then by re-enacting practically in its entirety the original language of that act with new matter which had not been considered by his (Bland's) Committee. Also Representative Bland said the adoption of the report may deprive the Committee on Merchant Marine and Radio of the jurisdiction of radio matters in the House. "The Interstate and Foreign Commerce Committee admitted in the argument on the floor that they didn't know enough about the Radio. Aot to under take to consider those particular provi¬ sions", Mr. Bland said. The Virginian's point of order was finally voted down by a vote of 58 to 40. Thus apparently the House Merchant Marine and Radio Committee lost jurisdiction over the Communications Act to the Interstate Commerce Committee. How¬ ever, there is likely to be another battle over this when the new Congress convenes. After being signed by Vice-President Garner and Speaker of the House Rainey last Monday (June 11), the Communications Commission Bill went to the White House where it only awaits the affixing of the signature of President Roosevelt to make it a law. XXXXXXXX 6 . .. »0\ ' ■ j 6-ciu ... , ■ ’ ' ; V •’ • ... .. .'. : ■ li . ■ 10 i p ''<•* 1 • f q:vi yoyoy ' ■ -r- ■ ifei t . . ! •; ; : .• . Y ' . Y ' • t ' " ' . j • f ' :.*xo • ni-oq • , •- i xic , i* . ■ ■ ' 1 • £ ... - ■ v.v>‘ :: -:1A ../I." ■■■■/.£'. •. ... Vi .. . ... .. . . . ... : . : . . r ■ . . ' j: . . .. •, ■ , . • .. ■' ,L i ■: ' Y i . ■ "■■■! i ! 1 ( i. . . ... ; i :to ' w 6/12/34 MONTHLY BROADCAST ADVERTISING- DECLINES BUT IS ABOVE AVERAGE Broadcast advertising in April declined 4.9$ as compared with the preceding month, although still remaining considerably above the general level for the present season, the National Association of Broadcasters reports. Gross sales of time amounted to $6, 669 , 957. 00. The drop in radio advertising volume is due principally to a 6/5$ decrease in network revenue, station busi¬ ness having dropped a little less than half that proportion. The network decline is primarily seasonal in nature. National spot advertising remained at approximately the March level, while marked gains were experienced in the electrical transcription field. Revenues of 100 watt stations rose slightly, while the receipts of those over 5,000 watts in power decreased slightly. Small gains in volume of business were recorded in the New England- Middle Atlantic Area, advertising volume in other sections of the country having decreased slightly. The principal industrial trends of interest were the marked gains in national spot advertis¬ ing in the automobile and automotive accessory fields. Total Broadcast Advertising Volume Class of Business March National networks Regional networks Individual stations $4,000, 698.00 66,516.00 2,953,550.00 Total $7,020,744.00 1934 Gross Receipts April $3,739,719.00 61,888.00 2,868,550.00 $6, 669,957.00 National network time sales during April declined 6.5$ while regional network revenues dropped 7$ in volume. Network decreases were due mainly to seasonal trends. National network volume during April was 52$ above that of the same month of 1933, although it must be remembered that April and May of that year marked the lowest ebb of network advertising since 1931. Non¬ network business declined 3.1$ in April as compared with March, this tendency being contrary to the general retail advertising trend shown in other media. National magazine advertising increased 9.3$ in April as compared with the previous month. Monthly magazine volume was 16$^ higher than in April, 1933, while weekly magazine volume showed a 32$ increase over the same month of the preceding year. National farm paper advertising increased 19.3$ as compared with March and was above last year’s volume. Newspaper advertising volume rose 7.4$ as compared with the previous month. Other than a slight decline in volume of advertising broadcast over stations of more than 5,000 watts in power and a similarly small rise in the volume placed over 100 watt stations, there were no changes of significance during the month. Revenues of stations over 5,000 watts in power decreased 10.9$ as compared with March, while stations in the 100 watt class experienced a 5.7$ increase as compared with the previous month. ■ ' rj> m: s-% ,.j 3 * ocf yJLr sqioriJt*rq i-Jt ■ • - o " ■ ■ . i i - • ' ' : t . ' :/ “ l- ■ :;f:. : * j. • _ j •: ; : ' '• 1 I-' ' ■ . . : •, ■ - 1 ■ n ... )G l:.n o.y; sl:; £ :: f .7 iff . ? ; . : : ' . , ; / CJ - • ; . * 't 7* \ f .t's jt/Cf ... . \ r -'•' : ' ‘ Lfcf '7 •;) ;o wsn 6/12/34 BUSINESS LETTER NOTES Commissioner and Mrs. Harold A. Lafount have announced the marriage of their daughter, Ruth, to Henry Gillette Colby in Washington, June 7. Mr. and Mrs. Colby will reside at 765 Anderson Avenue, Grantwood, N. J. An Examiner's report has recommended that an application of Frank Wilburn, of Prescott, Arizona, for the frequency of KPJM, on 1500 kilocycles, be denied and that the request for renewal of license of KPJM be granted. J. Elliott Jenkins, broadcasting equipment manufacturer, shot and killed himself in Chicago last Saturday. Hiw widow, Alexandria Carlisle, famous actress, attributed the death to fin¬ ancial worries. Col. R. R. McCormick, of the Chicago Tribune, outlining his fight for the freedom of the press, told the Association of National Advertisers in Chicago of what he declared were the effects of the licensing system as it worked out in the radio field. He cited the case of Station WIB0; Chicago, which Colonel McCormick said through political maneuvering lost its rights to the wave-length which it had acquired by years of operation in its area; he explained hos its physical property was destroyed when a new station was allocated its wave-length and set up shop in approximately the same area which was covered by WIBO. He saw in this political action the technique of government to silence or control the press. Eleven young men who have completed a year’ s course in radio engineering were graduated from the Capitol Radio Engineer¬ ing Institute in Washington last week. The diplomas were presented by Mark Biser, chief instructor of the school. XXXXXXXXX 10 - : ■ i. r . : -il lo tusk .t-. Y ; • - v ’ • ; i ■>;Di i-c bt^ucJ ' cJ'-.t ' : /■ i i-v . u v •: j j . lit. ••m r tivlaii .. rz (ov Xf Ion# - • . • .L i o TK :v .. . r..t rro‘i to;- as. I • . rcf. .. i. ; ' l, 'ioJ.vr o-OctU ■;o -triJX t' - n . 4'-r - - tSQ ' ■ ■ ■ 1 ■ ; . ■■ , , ' • ... bJl w: . 3^. .il 6/12/34 DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (June 12, 1934) KTRH, KTRH Broadcasting Co., Houston, Texas, C.P. to make changes in equipment and increase day power from 1 KW to KW; KRG-V, KRGV, Inc. , Weslaco , Texas, license covering changes in equip¬ ment and move; 1260 kc., 500 watts, shares with KWWG; WRGA, Rome Broadcasting Corp. , Rome, G-a. , license covering local move of transmitter, 1500 kc. , 100 watts, specified hours; WMBR, F. J. Reynolds, Inc. , Jacksonville, Fla. , consent to voluntary assignment of license to Florida Broadcasting Co. ; WHDH, Ma the son Radio Co. , Inc. , Boston, Mass. , authority to determine operating power by direct antenna measurement; WIBW , Topeka Broadcasting Association, Inc., Topeka, Kans. , authority to install automatic frequency con¬ trol equipment. Also, WHBC, Edward P. Graham, Canton, Ohio, special temporary authority to operate simultaneously from 3 to 6 P.M. and from 9 to 11 P.M. EST, June 16; WGAL, WGAL, Inc. , Lancaster, Pa. , ext. of Spec. Temp. Auth. to operate station without approved frequency monitor, for period beginning June 8 and ending not later than June 20; WHAZ , Rensselaer Polytechnic Inst., Troy, N. Y. , Spec. Temp. Auth. to remain silent from 6 P.M. to 1 A.M. EST, on nights of August 6, 13, 20, 27 and Sept. 3, 1934; WBEO , The Lake Superior Broadcasting Co. , Marquette, Mich. , Spec. Temp. Auth. to operate from 7 to 9:30 P.M. Central Daylight Saving Time, June 19. Also, KPK, Radiomarine Corp. of America, Portland, Ore. , 30 day authority ) to July 12) to change hours of operation from unlimited to specified, during a shipping strike; City of Piedmont, Cal. , Police Dept. , granted special authority to operate 5 gen. exp. stations to communicate as municipal police stations in emergency service; Arthur Carl Larson, Camden, N. J. , radio-telg. 2nd class license for a period of 90 days, in order that he may act as radio operator aboard USS "Tuscaloosa"; W2XFU, Inhabitants of City of Plainfield, N. J. , gen. experimental license, frequen¬ cies 30100, 33100, 37100, 40100, 86000-400000, 401000 kc. and above, 25 watts; Same - Portable and Mobile on police cars - W2XFV, W2XFW, W2XFX, W2KFY, W2XFZ, same as above except 4.5 watts power. Applications Reconsidered and Granted KHJ, Don Lee Broadcasting System, Los Angeles, Cal., C.P. granted to install new equipment increase power from 1 KW to 1 K jf night, 2 KW to LS; KF'RC , Same, San Francisco, Granted C.P. to install new equipment, increase power from 1 KW to 1 KW night, 2-|- KW-LS; KGB, Same, San Diego, granted C.P. to install new equip¬ ment, increase power from 1 KW to 1 KW night, 2-g- KW-LS. The above cases were designated for hearing on June 8th. 11 - 6/12/34 Set For Hearing WKBN , WKBN Broadcasting Corp. , Youngstown, Ohio, C.P. to move transmitter to new location in Youngstown, make changes in equipment, change frequency from 570 to 610 kc. , increase day power from 500 watts to 1 KW, increase hours of operation from specified to unlimited, with directional antenna after sunset Youngstown; WAIU, Associated Radiocasting Corp, , Columbus, Ohio, modification of license to change frequency from 640 to 570 kc. , increase power from 500 to 750 watts night, 1 KW day, and change hours of opera¬ tion from limited to specified hours now assigned WKBN; WJAY, Cleveland Radio Broadcasting Corp. , Cleveland, Ohio, modification of license to change frequency from 610 kc. to 640 kc. , increase power from 500 w. to 1 KW and increase hours of operation from day¬ time to specified. Ratifications Action taken June 7: WJMS , WJMS, Inc. , Ironwood, Mich. , granted special temporary authority to use portable transmitter in or near Ironwood, Mich. , to determine suitable site for trans¬ mitter; KG-KB , E. Texas Broadcasting Co. , Tyler, Texas, granted extension of special temporary authority to operate from 12 noon to 1 PM and from 4 to 6 PM CST, instead of from 12 noon to 2 PM and 5 to 6 PM CST, for period June 7 to July 7; WALA , Pape Broad¬ casting Corp. , Inc. , Springhill, Ala. , granted special temporary authority to operate simultaneously with WSFA from 6 PM to 12 mid¬ night, CST, June 8 to 12, with 250 w. on 1410 kc. ; WSFA, Mont¬ gomery Broadcasting Co., Inc., Montgomery, Ala., granted special temporary authority to operate from 7 P.M. to 12 midnight, CST, June 8 to 12; WHFZ, Robert B. Moe, Brooklyn, N. Y. , granted license to operate transmitter aboard vessel "Effie M. Morrissey lf , freq¬ uency according to Rule 285 A, 500 watts; WOPS, Radiomarine Corp. of America, New York, granted 60 day authority to operate 200-watt transmitter aboard vessel "Naushon" (action taken June 8) Action taken June 8: WAAF , Drovers Journal Publishing Co. , Chicago, granted C.P. to rebuild station destroyed by fire; WHCF; Mackay Radio & Telegraph Co. , New York, granted 60 day author ity to operate station aboard "Henry R. Mallory”, pending receipt and action on formal application; WPBW, Radiomarine Corp. of Amer¬ ica, New York, granted 60 day authority to operate aboard vessel "Santa Maria", pending receipt and action on formal application. X X X X X X X X 12 Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL- Not for Publication INDEX TO ISSUE OF JUNE 15, 1934. Congressional Session Marked 3y Numerous Radio Bills . 2 Storer Quietly Forms New Network . Japan Plans Powerful Stations.... . B.B.C. 24-Hour Clock Gets Listeners' Rise . ....5 Broadcasting Labor Provisions Up For Code Discussion . 6 Keep Radio Free, Roosevelt Urges RMA . 7 President Considers Communications Commission Appointmentsc . . . 8 Business Letter Notes . 9 Mackay Offers New Radio-Mail Service.. . 9 Dill Sees Possibilities In Short Wave News Service . 10 Commission Modifies Rule 284-d . 11 Decisions Of The Federal Radio Commission . 11 No. 732 CONGRESSIONAL SESSION MARKED BY NUMEROUS RADIO BILLS Including those creating a Communications Commission, no less than 18 bills were introduced in the second session of the Seventy-Third Congress. Little of the additional legislation materialized, but the fact that so many measures were proposed proved that radio is a live topic in the minds of the national lawmakers. The passage of a Communications Bill is really a result of several years1 discussion, dating back to the Bill introduced by Senator Couzens, of Michigan, when he was Chairman of the Commission. The 1984 Communications Act is the first major piece of radio legislation passed by Congress since the Radio Act was passed in 1927. Besides the 18 bills proposed, there were a half a dozen resolutions which in one way or another would have regulated radio. The first radio Bill during the past session was intro¬ duced by Representative Huddleston, of Alabama, and it died in Committee. This would have caused radio stations licensed under the Radio Act and operated direct or indirectly for hire or com¬ pensation, to be classed as public utilities and they would have been obliged to serve, transmit and broadcast without discrimina¬ tion for all who applied for same, for a just and reasonable charge and compensation to be fixed from time to time by the Federal Radio Commission, except those stations operated by the United States or any agency thereof. A resolution was offered by Senator Robinson, of Indiana, early in January, authorizing the Senate to make an investigation of the control exercised by the Federal Radio Commission over per¬ sons broadcasting, and "the extent to which the freedom of speech of such persons has been restricted." This likewise slumbered peacefully in Committee. More successful, but in which radio was only mentioned along with other means of communication, was a Bill making it a felony to extort money by telephone, telegraph or radio. Also passed, later having been made part of the Communica¬ tions Act, was a Bill prohibiting programs being sent across the border from the United States by remote control to be broadcast back into this country. The Bill was aimed at stations across the Rio Grande with objectionable matter fed to them from Texas and other States in that vicinity. A Bill was introduced by Representative McFadden, of Pennsylvania, the second week in February, which would have required commercial radio stations to accept religious and other I V .. Y/i ;:.w -Oflfs y ■ 1 : ■' j t r ■ c ■ - • ; - . • ■ ' ‘ . • - ■ ■ ■ ; : : o ■■ Vo . . - " - - r> * r \ ■ • * r» ' * J .”,r- ; X JL- i ; . . ■ ■ >. \C .. ,.1 . .i, o:: n : > ■ n . •• ' " ’ .*■ ,v.'if-‘:yo oil.: ,J1 I? r ; r, , - ■ 'Pi — - ■ •-! il : -i < • : ' , : ■ . • ,-f - ,-V • 7 • ■ •: ’• 89; . - . • I . '...OO 6/15/34 programs without discrimination. This was said to have been inspired by followers of a religious sect headed by Judge Ruther¬ ford, which had been refused network facilities. The Bill never got out of Committee. A Bill introduced February 14, by Representative Bland, of Virginia, to prohibit broadcasting any advertisements or infoi- mation concerning a lottery, later was passed as part of the Communications Bill. Representative Fulmer, of South Carolina, in March, introduced a resolution to have the House appoint a Committee to make a study of the broadcasting systems here and abroad in order to develop a system in the United States "that will most effect¬ ively promote the interests of listeners." This, likewise, didn't get anywhere. Senator Capper, of Kansas, March 10, offered a Bill to prohibit the advertising of intoxicating liquors over the radio, but it was not reported out of Committee. Radio was mentioned, along with other mediums of adver¬ tising in the Copeland Pure Food and Drug Bill. A Bill was passed adding ten acres to the Constant Frequency Monitoring Radio Station, located at Grand Island, Nebr. Several Bills were introduced both in the House and the Senate to allocate one-fourth of all radio frequencies to religious, educational, and other non-profit-making stations. An attempt was later made by Father Harney, of Station WLWL, with the assistance of Senators Wagner, of New York, and Hatfield, of West Virginia, to have this incorporated in the Communications Bill. The amend¬ ment was voted down in the Senate. On April 16, Representative DeRouen introduced a Bill which was passed, to authorize the transfer of the Otter Cliffs Radio Station on Mount Desert Island in the State of Maine as an addition to the Acadia National Park. Senator Dickinson, of Iowa, May 28, introduced a resolu¬ tion to investigate the Federal Radio Commission with particular reference to the conduct of several members of the Commission, and with further reference to their fitness to exercise their judicial function as members of the Commission. Later Senator Dickinson made further charges against the Commission in the Senate, includ¬ ing the allegation that several Commissioners had switched their vote, at the instigation of the White House, in a case involving Station KWKH, of Shreveport, and WWL, at New Orleans. Subsequently, Senator Huey Long, of Louisiana, introduced a resolution to investigate the truth of the charges made by Senator Dickinson with regard to the Louisiana stations. X X X X X X X .3 ■■■ 6/15/34 STORER QUIETLY FORMS NEW NETWORK The formation of the American Broadcasting System, with WMCA, New York, as the key station in a group embracing seven cities along the Atlantic seaboard, was announced Wednesday by G-eorge B. Storer, President of WMCA, which has been operating as the Federal Broadcasting System. The group was formed for the exchange of sustaining pro¬ grams and did not constitute an attempt to set up a third chain with nation-wide coverage, Mr. Storer explained. The service will be continuous from 9 A.M. until 1 A.M. , daily, and will begin at once. Mr. Storer, who is president of the Board of Directors of the new group, said that any possible extension of the chain woulc1 depend upon the desire of stations to participate in the program exchange service. The other stations included in the network are WRPO, Providence, R. I.; WTN J f Trenton, N. J. ; WPEN, Philadelphia; WDEL, ?/ilmington; WCBM; Baltimore, and WOL, Washington, D. C. XXXXXXXX JAPAN PLANS POWERFUL STATIONS The Japan Broadcasting Corporation is laying plans to increase the power of its various stations, according to a report to the Commerce Department from Assistant Trade Commissioner D. W. Smith, Tokyo. Application has been made by the corporation to the Department of Communications for permission to increase the trans¬ mitting capacity of its Tokyo station from 10 kilowatts to 150 kilowatts. Just when the construction of the new station will be started is not yet known but inquiries have been sent to the lead¬ ing Japanese electrical goods manufacturers for quotations on equi^ ment. The corporation also plans to increase the capacity of its Osaka station from 10 to 100 kilowatts within the next two years. The present stations at Niigata and Nagasaki will also be enlarged during 1935-36, according to present plans. New broadcasting stations, the report points out, are now under construction at Kagoshima, Toyama and Kogu which will be opened during the latter part of the present year. The Japan Broadcasting Corporation, according to the report, has announced that the subscription fee for licenses will be reduced from 0.75 yen per month to 0.50 yen per month from April 1, 1935 (A ye*fe\ is about 84 cents, U. S. money). At the end of April, 1934, there were 1,739,160 licenses in force, of which 27,529 were free subscribers and 1,711,631 paid subscribers. X X X X X X - 4 - T • : ' . Til. a 1 7 Xr v ■••• "N -i rv 1 ! • ' '• .. A 6 • ■ •;.OT0 1st ft ^ a ■ f Mi f ":- . . :;/ft f IK-Mru r =0'"! M.’ - • j :\ .,T'M ' ' j : : Si l - ■ ■ r' rid.A if t X V ' i V ■ - Mi .1: . i’’ .a ' ■ ■ >: .• ’ : ■ i‘j ... + r- • \> • ' t \ M ■' *> ■ f H* .. . . Hi-.’ ■ rx . ’ V ■& ,M f-.f - • ' . • - ' ' ' " ' 1 ’ .. ; ■ ■ . y»V ; . 5 .5 ■ ■ . . ;* ■ .. ; • ; - , • ■ - >U'ij . ... / M - - tQSlQi . ■ . fl t 6/15/34 B.B.C. 24-HOUR CLOCK GETS LISTENERS’ RISE A lively controversy has been caused by the adoption by the British Broadcasting Corporation of the 24-hour system of tL. 9 in its announcements. Numerous letters have been received by the London Morn¬ ing Post on the subject. Sir Ambrose Fleming, inventor of the wireless valve, writes: * * * * ’’The 24-hour time has advantages for railway time-tables when distances are large, and it avoids the necessity of space for letters a.m. or p.m., and in other work. But there is no real necessity for it in broadcasting, which takes place chiefly within one revolution of the small hand of the usual clock, and it involves a tiresome mental effort for the ordinary listener to translate 24- hour into clocktime. "In inflicting this trouble on the public", Sir Ambrose continues, "the B.B.C. is mistaking its functions, which are to provide the public with the music and speech the majority desire, and not to exasperate them by needlessnovelties in their publica¬ tions or ways. "The source of all the trouble with the B.B.C. is that it has not yet found any means of ascertaining the wishes of the real majority of its listeners and can only depend on the letters which a minority happen to write to them expressing approval or disapproval. "By its present constitution and charter, it is an absolute autocracy and in contrast with all our other British pub¬ lic institutions, the persons who provide the income (now approxi¬ mating to one and a half million sterling) have not the smallest voice in electing the people who expend this income, nor over the mode in which it is spent by the B.B.C. "The remedy would seem to be the formation of a suffic¬ iently strong Listenrs' Association, able to bring pressure to bear- on Parliament to grant some power of control to those who provide the income and pay the wireless piper, but have now no power what¬ ever to call the radio- tune. " The following extracts from a series of letters express various points of view: G. R. R. Taylor (Paddington) - "Summarised, the argument against the 24-hour clock consists in the difficulty of subtracting 12 from the figure. In a year or two, surely, this difficulty will have vanished. " Harry Webber (Plymouth) - "The few advantages of the 24- hour system cannot be gainsaid. Anyone who has had occasion to use a Continental railway time-table, or the misfortune to fight in a war knows them. " 5 l. x. i X ■ : ■ d .:J: . .. ,■ ;• .: isi f J x .. ins . ‘ xx : /-V '-"X : ... -Xi. ' : X, . . . ^ • :: . . • • • . ' - •- .1'.' • . ;..x X ■: . ■ X \‘J . • ' • i ' , X ■V . . .• . . • .. . •X. ... . . X . X : m£e vox ... •r. U ,. ■ * •X •• ■ / ; ; . • ' X • XX,- ... ( * : - .. ■* l . . r -•'X •■■X ‘ I ,;t. ' ■ r • •; ! .. ' . 1 . ’ ... VJ O Zb . ... ’ ■ ? • • • *. • * ; • . . . * •* A I | •» X.x x v ; . ■ '. ’ , . 1 . X £1 / OX ! . 6/15/34 G. W. Jones ( Yatesf ield, Nailsworth) - "I have protested three times to the B.B.C. against monkeying with the clock. I have instructed my newsagent to stop delivery of the 'Radio Times' and that I shall not take it again until normal conditions prevail. If others do the same, these self-appointed reformers will soon see the error of their ridiculous effort to educate the public." G. A. Brown, (Rosendale, South Croydon) - "The new plan is voted a nuisance by my family. " M. Mitchell (Park House, Solihull) - "I regret the decision of the B.B.C. to use the 24-hour clock. The whole affair savours of an absurdity - a stupid act of dictatorship. " V. Barton (Bath) - "I cannot be bothered with the silly nonsense of altering the clock." C. A. Curaming (Tunbridge Wells) - "We are all rattled to the utmost by the B.B.C. time system." Miss Muriel Robinson ( Makepeacemansions) - "I object to the dictatorial methods employed in thrusting the 24-hour clock upon listeners. Has the B.B.C. turned Fascist?" XXXXXXXX BROADCASTING LABOR PROVISIONS UP FOR CODE DISCUSSION The National Recovery Administration will open for con¬ sideration and public hearing the provisions contained in Articles III, IV and V of the Code of Fair Competition for the Radio Broad¬ casting Industry. The hearing will be held beginning at 10:00 A. M, , Wednesday, June 20, 1934, in the Raleigh Hotel, Washington, and continue until completed. The hearing will be held upon the basisof the reports made by the Code Authority for the Radio Broadcasting Industry, and information otherwise before the Administrator. Code Authority Bulletin No. 6 contains the recommendations of the Code Authority in this matter. James W. Baldwin, the Executive Officer, will present for any member of the Industry any factual statements pertinent to the hearing. Such statements of fact should be received by the Executive Officer not later than Monday, June 18. Generally speaking, Article III says that no employee shall be permitted to work in excess of forty hours a week. This doesn't apply to such employees as broadcast technicians (whose maximum hours shall not exceed forty-eight hours) and others. In Article IV, it is specified that no employee shall be paid less than fifteen dollars a week in any city over 500,000 - 6 - 6/15/34 or in vicinity at less than $14.50. Broadcast operators and con¬ trol men are scaled at $40 a week and less, according to size of station. Announcers are listed at not less than $20 a week, excepting in some cases $15.00. Article V deals with general labor provisions, such as that stations will employ no one under sixteen years of age, except talent, etc. XXXXXXXX KEEP RADIO FREE, ROOSEVELT URGES RMA President Roosevelt believes that radio broadcasting "should be maintained on an equality of freedom similar to that freedom which has been and is the keystone of theAmerican press." His message to this effect, sent to Fred D. Williams, President of the Radio Manufacturers' Association, in convention in Chicago, was read and broadcast. It read: "I take pleasure in extending greetings and best wishes to the radio industry as represented at your banquet given in celebration of the tenth anniversary of the founding of the Radio Manufacturers' Association, "Your manufacturing ingenuity and your agencies of dis¬ tribution have been so exercised that, I am glad to say, radio today is enjoyed in the humble as well as the palatial home and contributes greatly to the enrichment of life. "Radio is a new and potent American industry. Reports of the United States Department of Labor show that employment in your facotires has doubled since April, 1933. Unemployed have found work in your factories, and I am advised that as business has improved in your industry, your workers have received increased wage rates. "You have had many evidences of my interest in radio. In cooperation with the government, radio has been conducted as a public agency. It has met the requirements of the letter and spirit of the law that it function for ’public convenience and necessity. ' "To permit radio to become a medium for selfish propa¬ ganda of any character would be shamefully and wrongfully to abuse a great agent of public service. "Radio broadcasting should be maintained on an equality of freedom similar to that freedom which has been and is the key¬ stone of the American press. " X XXXXXXXX 7 '• JC v X • ■ '■■i- ' • • • : . - i l&X a ' tA r- : .. : V! "-1 X ■ ■ ' ■ ■ ' • - • ' ' ■■ .. , • ‘ ..... :! • . • ■ ‘ *, ... ■ r ■ . . . . . ..■ ' : -' c ■ •£ , X ■ . U ;■ - ■ ■ :. t ' f &S : - >. '.. < t x' ; j ■ .. .1 : :-oi icfele-* U' : ■■ . • > ■ ■ , . . 3 . . ; . ■ i-lSUi ■ . i . . ■■ V0 . ■ • d ■■ .■■■' . ■ ■ ■ ■ .. . I : \ i . r : r *■!: :r : ■ ■ ' ' it ' : ■ / ■ o * . . • ' ''j V.L.: N ■ XJ1 : . • ; • .■ •..., ;.r v '• ; • : ' 6 ’■ ■•;.v ‘ X . : 6/15/34 PRESIDENT CONSIDERS COMMUNICATIONS COMMISSION APPOINTMENTS A man who said he had talked with President Roosevelt yesterday (June 14) was authority for the statement that the President is now personally engaged in making a list of those he desires to appoint to the new Communications Commission. This informant said that Mr. Roosevelt had before him a great list of names and although he probably would not announce them before Congress adjourned, was nevertheless hard at work in the matter of their selection. If the President holds to his announced determination of not appointing the Commissioners until after Congress adjourns, the impression in Washington is that he will dispose of the appointments before he leaves on his Summer cruise, which will be about Tuesday, June 26, especially so since the Communications Act will not go into effect until July 1st, In the opinion of many, the appointments may be made within a week after Congress adjourns. Pretty much the same list of names continues to be dis¬ cussed. Dr. W. M. R. Splawn is known to have told a Senator backing him that he would not be able to serve because he was having trouble with his eyes. It seems to be the impression that a place will be held for Representative Prall, of New York, who will not be eligible to serve until his Congressional term expires next January. A name heard, which has heretofore not been mentioned in this column, is that of Lieut. Commander E. H. Loftin, U.S.N. , retired. Commander Loftin is a patent attorney now engaged in private practice in New York City. He is said to be about 47 year old and served in the Bureau of Engineering and the Judge Advocate General's office. Commander Loftin was the Navy’s patent expert and was the co-inventor of the Loftin-White radio receiving cir¬ cuit. Others not mentioned in this column recently, who are still spoken of, are William C. Green, of St. Paul, former Special Counsel of the House Interstate Commerce Committee; Mily R. Maltbie, Chairman of the New York Public Service Commission; J. H. Bickley, Chief Accountant, Wisconsin Public Service Commission; former Judge Orville Smith, of Cleveland; Walter Walker, Oklahoma Railroad Public Service Commission; and Homer Hoch, Chairman of the Kansas Public Service Commission. The name of Capt. S. C. Hooper is still much discussed. The only woman mentioned thus far is Miss Fanny Neyman, of Montana, now serving in the Legal Division of the Commission. Paul N. p. Spearman, former Assistant General Counsel, has been proposed for General Counsel. Heads of bureaus and personnel at the Radio Commission are trembling in their boots. Although many of them are under Civil Service, the Communications Act is said to be so worded that anyone could be dropped. The impression is that the new Commission will be organized in three divisions instead of two, for no other reason than to give as many jobs as possible to deserving Dgmocrats. XXYXXX S— if X X X X X X A ) iBD'V- Jt 3% i: 777.77; l,e . oX * ‘.tia "».o 7 • 7.7 a C-i(TL2* ii ■ £0 ■ ■ . 7 0 y o . , ftc ■ ■ ■ ■ ; ■ ■ , - J j .< ( ’ ’ -7 .7 . . - ■ ' • - " ' 7 ■ r. 7; , ' . !••» s * , -1C • * ■ ' 3 7 li c . ; • - ■ -7/ ; V ' mU ■ .. ’• • : i . ■ V' - • ■■■ . 7" 77. .7 ■ . • 7 'at. ■ 1.1 ^ ■77.B.1 • r .V .J. • • ■ a'. ' - - • ' acf X . . ■ . ■ - r r ; Oi ■Qij;7 ■ 7.. t. u A V j * KJ -'7 • .i 1 . • .1 . V- . . . Q»0 J" ■ . -• . , . ' > : ; “ : : . - :i "V; * ’ n; - . 7 " ' 7 s . •• , t ‘'7 7'"- ; 1 ■ • - ■ .i . . - * • • r» r* rrr»nr •'** • / • : I e . ti . •_ • : > . ■ i 1 ' ■ ■ . ; - ./ ' . • . - 7 ... 7 • : ' ■ ■ ■ " ■ , '■ ; ■ • 7 L-C ■■ '• 7 7 ' ■ ■' , : •- .1 j : ; ■ • .7 : - c ■ '■ : ' ■ V. . 77 . • ' ; . b..:j2 au 'ij'zvd io a-as&K - ' • 7 cl. ii . :: j n.;' 77 7 "A 7 7: 7. 7 7 7 S. W •' ~ -.7 77 \ 7 7 ■. '■-■7-7 7- / ; . .• 7 • ”, ■"7. ' ■; , ;<• • j ■ 7- u: ;.0 - ■ • i . . . ' • ■' • ‘ ■: 7 "-I ■ , 7 :- ‘ • . 3 7 . 7 t ' (I . ' •' ■ - ■ i . 7 • 7 rJJj 2 - 7 * ivor: « Di f.jow .• MOld Or-. -J. 6/15/34 BUSINESS LETTER NOTES Over 400 stations have filled out and sent in the questionnaires distributed by the Code Authority with regard to broadcasts to which admission is charged. Although a formal report has not yet been made, it appears that few stations require admission fees. The Vice-Chairman of the Federal Radio Commission, and Mrs. Thad H. Brown have returned to Washington after a few days spent in their home in Columbus, Ohio, where they attended the graduation of their son, Mr. Thad H. Brown, Jr. , at the Columbus Academy for Boys. Mr. Brown was valedictorian of his class and gave the commencement address. He will attend Princeton Universit; next Fall. Kolster-Brandes, Ltd. - For 1933; Net loss after expenses, depreciation, directors' fees, reserve for doubtful accounts, and other charges, L150,057. The credit balance brought forward to Dec. 31, 1932, was L51,377, which with the above net loss, leaves a debit balance of L98,680 to be carried forward to next account. XXXXXXXX MACKAY OFFERS NEW RADIO-MAIL SERVICE A new communication service for passengers on ships at sea, a radio-mail or S L T service is announced by the Mackay Radio and Telegraph Company. Messages sent from ships on both the Atlantic and Pacific Oceans will be received by Mackay Radio coastal stations and mailed to the addressees anywhere in the United States. The rate for this service is $2.50 for a 25 word message with a charge of 10/ for each additional word. This rate is sub¬ stantially lower than rates for the regular fast ship- to- shore service by which messages are transmitted from the coastal radio station to their destination by wire or radio. In announcing this new service, Ellery W. Stone, Operat¬ ing Vice-President of Mackay Radio, stated that he considered that such a service would be valuable to tourists and other passengers whose messages to shore might not require the utmost speed in giving them a deferred service at a substantial reduction. XXXXXXXX - 9 - I . i . h] • ‘Jll )0 0VB . ' j. ■ . a a&.asqxa *:■ e Ou C . ' ■ . ■ .. H 0.4- iOJ3 * ' • ; ■ ! ' i ' ■ ' ' : r ■ A" ;.,:J O’- ' . o; ' 6/15/34 DILL SEES POSSIBILITIES IN SHORT WAVE NEWS SERVICE Senator Dill, of 'Washington, Senate radio leader, said there was much more likelihood of his not running again for the Senate than there was of his organizing a national short-wave press association to furnish news to broadcasting. Nevertheless, one got the idea that it would not be beyond the realms of pos¬ sibility if ultimately the Senator might not ultimately become associated with or promote such a service. He is enthusiastic over the idea, declares that someone eventually will organize a short wave news service to the stations, says that he would prefer to have the Associated Press, or the United Press organize it, and in case they do not, he may take a hand in it, providing, of course, that he does not run for the Senate again. Senator Dill has until July 1st to file his Senatorial intentions. "If I went into it all, it would be as a matter of pub¬ lic servicd' , Senator Dill said. "The fact is that listeners in outlying districts, such as farmers, those in the mountains, and so on, are more eager for news bulletins than anything else, they are simply hungry for news. However, the present arrangement with the press associations is unsatisfactory because they allow only five minute broadcasts and will not permit this time to be sponsored by an advertiser. "I agree absolutely with them that their news is their property and that they have a right to handle it in their own way. I think, however, they are making a mistake by restricting it to too brief periods and not allowing the time to be sold. Stations want more news than that and if the press associations don't give it to them, they will get it some other way. "A weakness of the present system is the high telegraph tolls and the cost of distribution. It could be done much more cheaply by the RCA after they have installed their wireless city- to-city stations. Such a company as that would be the proper con¬ cern to undertake the project and it wouldn't surprise me if some day they did it. "I have talked to representatives of several of the large press associations trying to convince them that the opportun¬ ity is theirs and that if radio stations can' t buy more news at a lower transmittal rate from them that it will surely result in a nation-wide short wave news service organized especially for the use of the stations. "As it is now, many listeners are too remotely located to receive the late editions of evening newspapers and sometimes don't get their morning papers until noon. A short wave system would solve the question. I think some day it may go even farther and actually put a facsimile newspaper into the homes of listen¬ ers. It is a development the newspapers would do well to keep in step with. " X X X X X X - 10 - ■; aw ? ■■■ ■ ; ■ i : esaa , e« o ifos'i s.tsi . gn to ' i ... • 14 : ■ 0 0 i I I ' . ’ ' ■ i ■ 10 \ . . V ' I .... • I 9 ■ ' . It .'SOb. ■ ■ ■ ' . , . ■ ' . ;. ■ . .. XX ' . . . c< -■ hit ' . ■ i 9 . . . “r & J ■ - . ■ a £ • i'llvl. • ' . . ' . . £© : ... ' . 1 , ■ . . £J ' v. B 8 8 sd &.DJOW . : Ib .. ' P £ XH9W £ t ' ' XJ . ■ ■ t i . . [J3l \C ■ ■ ■ • : . . .. . t . p £ im-to'c J . .. . ; .. 08 i i . . v i ■ tuti t t &K - • . i.:. :-xU ei ere; "iXc.XX ~ Xlw ^dcUrioBcfe 9 I.H ; . • .• j L ' 3if j : . .. UJ %& ■ ,} i':, 3d j'Tq ;i ; . y O 8 S .?i’ I .$ t? V A '* j ■ .....' . I ■ ) " ■ • • ■ 'A . ' . t ■ ■■ ...... • srioi _ : : . ■ '• - . . - : ; •• • AviX- MX v;.;*eit vfdb . ■ - _• i. •. : ... •.. •. >'■ f.q, . :.l ■ . ;• 3 J: "AT i ; . '• ' .... • ' ■- .. .• . j !.:&'.■? '■ -i .. . ■ : ...'■ . : j i 3 . ■. ' . . • .c. ilCAih X '' . 4 £C ■ .. ,f . T.8 ; .. ?; X v. I; I . < r c,n a 1 3 1 e k • •. £t a ■'■■■■ ■■ '■ ■ 4 f I /' • I ■. , . • I | • . . .. ’ x . : -fsao ‘i3qorrq hi am 6/15/34 COMMISSION MODIFIES RULE 284- d The Commission has modified Rule 284-d to read as f ollows : "The licensee of a ship radio station on board a vessel of the United States licensed to carry, or carrying, fifty or more persons, including passengers or crew or both, shall maintain continuous hours of service in accordance with the rules govern¬ ing first class ship radio stations at all times while the vessel is being navigated between ports or places more than two hundred miles apart, Provided, however, that vessels which are also licensed to carry less than 50 persons and/or play less than 200 miles between ports or places may be granted radio station licenses specifying more than one class. " X X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (June 15, 1934) KMA, May Seed and Nursery Co. , Shenandoah, Iowa, modifio tion of license to increase day power to 2-§- KW-LW, application fo. increase in night power from 500 w. to 1 KW as designated for hear¬ ing; KMTR, KMTR Radio Corp. , Los Angeles, Cal., modification of license to increase power from 500 watts to 1 KW; KYI , Puget Sound Broadcasting Co. , Inc. , Tacoma, Wash. , modification of license to increase power from 500 w. to 1 KW day and night; WCBD , Wilbur Glenn Voliva, Zion, Ill., consent to voluntary assignment of license to WCBD, Inc. ; WJDX, Lamar Life Insurance Co. , Jackson, Miss., license covering increase in power and change in equipment 1270 kc. , 1 KW night, 2-g- KW day; WJBK, Jas. F. Hopkins, Inc. , Detroit, Mich. , modification of license to increase power from 50 to 100 watts; WNOX, WNOX, Inc., Knoxville, Tenn. , modification of license to change frequency from 560 to 1010 kc. ; WIS , Station WIS, Inc., Columbia, S. C. , C.P. to move transmitter to site to be determined, make changes in equipment, change frequency from 1010 kc. to 560 kc. , and increase power from 500 w. , night 1 KW-LS to 1 KW night, 2-g- KW-LS. Also, KGGF, Powell & Platz, Coffeyville, Kans. , modifica¬ tion of license to increase power from 500 watts night, 1 KW day, to 1 KW day and night; WHA, University of Wisconsin, Madison, Wis. , C.P. to make changes in equipment and increase power from 1 KW day to 2-| KW day; KXL, KXL Broadcasters, Portland, Ore., C.P. to make changes in equipment increase daytime power from 100 w0 to 250 watts; WOKO, WOKO, Inc., Albany, N. Y. , modification of license to increase day power from 500 w. to 1 KW; KSD, The Pulitzer Publish¬ ing Co., St. Louis, Mo., modification of license to increase day¬ time power from 500 w. to 1 KW; WDBJ, Times World Corp., Roanoke, Va. , C.P. to increase daytime power from 500 watts to 1 KW and install new equipment. 11 - 6/15/34 Also, KIDO, Boise Broadcast Station, Boise, Idaho, C.P. to increase daytime power from 1 KW to 2-| KW, make changes in equipment; KQW, Pacific Agr. Foundation Ltd. , San Jose, Cal. , C.P. to increase day power from 500 watts to 1 KW up to 7 P.M. (no change in power after^.7 PM (500 w) ; WEBQ,, Harrisburg Broad¬ casting Co., Harrisburg, Ill., C.P. for increase in daytime power from 100 to 250 watts, and make changes in equipment; WQL , American Broadcasting Co., Washington, D. C. , C.P. to increase daytime power from 100 watts to 250 watts and make changes in equipment; WISN, American Radio News Corp. , Milwaukee, Wis. , modification of license to increase daytime power from 500 w. to 1 KW; KECA, Earle C. Anthony, Inc. , Los Angeles, Cal. , authority to increase day power to 2s KW and use old equipment of KFI. Applications Reconsidered And G-ranted WNAC, Shepard Broadcasting Service, Inc. , Boston, Mass. C.P. to increase daytime power from 1 KW to 2-g- KW, and make changer in equipment; WIND , Johnson-Kennedy Radio Corp., Gary, Ind. , C.P. to increase daytime power from 1 K W to 2i KW and install new equipment; KOL, Seattle Broadcasting Co., Seattle, Wash., C.P. to increase daytime power from 1 KW to 2-| KW and make changes in equipment; also move transmitter locally; WCNW, Arthur Faske, Brooklyn, N. Y. , modification of C.P. to increase day power from 100 w. to 250 watts, and make changes in equipment; WDAE , Tampa Times Co. , Tampa, Fla. , special experimental authority to increase daytime power from 1 KW to 2-| KW for period ending October 1, 1934 and make changes in equipment; KGW , Oregonian Publishing Co., Portland, Ore., C.P. to move studio locally in Portland, install new equipment and increase daytime power from 1 KW to 2-| KW; KQ,V. KQ.V Broadcasting Co. , Pittsburgh, Pa. , renewal of license application reconsidered and granted. Action On Examiners* Reports WJJD, WJJD, Chicago, Ill., granted modification of license to move studio from Mooseheart to Chicago, Ill, sustaining Examiner Geo. H. Hill; KYI , Puget Sound Broadcasting Co., Inc., Tacoma, Wash. , modification of license granted to increase power from 500 watts to 1 KW day and night, reversing Examiner R. L. Walker; KGW, Oregonian Publishing Co., Portland, Ore., Granted C.P to change maximum rated carrier output power, increase power from i KW to 1 KW night, 2-| KW day, and make changes in equipment; also change studio location. Examiner R. L. Walker reversed. Miscellaneous WOR, Bamberger Broadcasting Service, Inc., Newark, N.J., granted petition to have Commission en banc hear application for experimental permit. Date to be decided later; KSO , Iowa Broad¬ casting Co. , Des Moines, la. , granted authority to operate on 1320 kc. with 250 watts from 12:01 to 6 A. M. daily, from now until date of hearing - June 25; grant to use this frequency and power sus¬ pended because of protest of WADC. XXXXXXXX - 12 - ; - al . .!& 0 | 9S0 ' • ' • • ■ • • . ■ ' . . > ... ; • , ' . ' . , ■ • • • - ' ^ . ' •* . • .. r _ „ . .• . ■ ‘ i ■! _L ,8©X'&3nA a Oil ,, .ofil ^noii^fiA • SkJ , c> c!uu a ^ " — - * ~ a < ,, : rtA • ■; i . £ - I0ll 19W0q ' 53B9'10ili oj ,/l.J ■■■ . ■ .. : . II ' " ■ " . • .... + ‘ ' ■ : £ ■ : ■ l ■ SC ■ ■ : .. ir\ «l - ' - . • - £1 Q *v :• ’ $-w? Q < f - ^ ' 3: £ 3 r£ D i 1 j. : -r*r- r.-.1 . . C . : - : : [ y^a 9VOS .*1. . . . ' ■ ■ ■ . ■ ■ . neoll So L sn; . 1 l * . , ■' . a t . . C 5 ajr; : > Xoc jerf . • [QlJXJQq ; ■ - ■■ ■ ■ ■ . v . -'7 * - * . X r* ■' ’OOO OO ••i*- Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. / C O N F ! D E N T I A L — Not for Publication w>.r.,W !?'<(? • *•*« !'■; ' ’ ' ' 1 ,n u';;,p ", 7 1 a ffft i r < In ‘-t 3 ih iW r- i> vi >r t I Pl ; pi JUN 20 1934 U Ut- li it i,, , 8 Jfjfl/ 9Q ;Q INDEX TO ISSUE OF JUNE 19, 1934. v/v / London Wired Wireless Going Concern - 27,000 Subscribers . 2 Editor Sits Down On Radio Commission . 3 More Church And School Stations Exempted . 4 American Radio Mfrs. Face Australian Fight . 5 WMCA Washington Outlet Gets Power Increase . 5 Supreme Court Justice Holds Up DeForest Decision Censoring Banned By Florida Judge . Madrid Treaty Now In Effect . President Delays Signing Communications Bill. . . . Senator Warns Press Against Wire Control Bill, . . President Will Make No Appointments Until June 26 . 8 Radio Manufacturers Vote To Have Separate Code . 9 New York Newspaper Grills Commission . 9 N. Y. Mayor Puts WNYC On Probation.., . 10 RMA Opposes Labor Legislation . 10 I. T. & T. In Quarter Earned $898,767 . 10 Decisions Of The Federal Radio Commission 11 OOtO D~ ■ - ... . .jj . ' ■■■ • • Tuesday, June 19,1934 LONDON WIRED WIRELESS GOING CONCERN - 27,000 SUBSCRIBERS It may be news to many that a so-called "wired wireless" system, distributing programs by wire, is proving a profitable venture in London. This is revealed in a report just submitted by H. Brent Grotrian, K.C., Chairman of the company which is known as the Broadcast Relay Service, Ltd. Mr. Grotrian said that the directors had taken the op¬ portunity of eliminating from the balance-sheet all intangible assets by writing off from general reserve the entire cost incur¬ red in connection with their Debenture and Capital issue, as well as the balance of the obsolete single program system through¬ out. The operating profit for the past year amounted to L25,588, which was in excess of the estimate foreshadowed in the prospectus, and the directors now recommend a final dividend of 12 per cent, (making 20 per cent for the year), leaving L4,372 to be carried forward. This result the directors regarded as eminently satis¬ factory, and especially so in view of the fact that all the losses of their subsidiary companies to the date of the balance-sheet had been written off. Taking the position as revealed by the balance-sheet, he felt sure it would be regarded as satisfactory. Explaining the nature of their business, the Chairman said that the Company installed at its central receiving stations, the most modern equipment that science could produce and connect¬ ed its subscribers to this equipment by means of wire, so that all those connected to their service had available at their finger¬ tips, by means of a simple switch and a loud-speaker, a continuous and alternative choice of program. In his opinion, they had launched a new industry with a great future. The Company now occupied the leading position in the development of this modern method of home entertainment in Great Britain, and their service was gaining in popularity throughout the country on account of its reliability, simplicity, and low cost. During the year they had extended their operations to Margate, and through subsidiaries, were now operating in Newcastle, Rotherham, Wallasey, St. Helens, Newport, and Swansea, in which group of towns they now had already over 9,500 subscribers con¬ nected to the service, making a total of 27,100 subscribers in all. So far this current year, their business was growing at a greater rate than during the corresponding period last year, and the Directors had every confidence that this expansion would con¬ tinue and result in additional profits to the Company. It had always been their policy to work in close cooperation with the Post Office, as well as with the British Broadcasting Corporation, who took a close interest in the development of this new industry. X X X X X X - 2 - >D l > . IT; : t ' H . , \ • . f. "■ ' ' . ' , % ’ ' i - ■>rr? t. ■ . i . I’OATI.---'' o-:;' YY . -c !.>• 1 . • 3 ' E ■ 3 Y'-' - .b .t • i •' " *• fll 7 .•.XXXfili V • '.cX Y ' • 1 '0 xuUx,- rxt -.■rftf ‘r> ■ . : xu sBsoxx "n I 911>t . . " . 1 2 ii Y ■ ' ) « ■ ■ ■■ ... U.S ■ i ^ '■» ' . ■ vx ■ o si . j ' ■ ' - ' , n :i ' * • ■ • . • .N d ; .,(■ 1 '•*-< ... . ■ • . . ■ ... ' V »..■ .M l >. .1. V ■ I "Ilf rV ' oX if tj * ' ft C ■* i ■ : •. - 4 • .• 4. • .. -• - . ■ ■ : ' ' • : - ■ £11./ :• •.$£ O: '50 ’u.: . '■ - ; ' X j L'..' o.:: f. •' ; Y ■■ : l ' ■: x ; o, ' 1 : 1 ■ . ^ i . ■ ■ :■ - tr 6/19/34 i EDITOR SITS DOWN ON RADIO COMMISSION Ogden Reid, editor of the New York Herald- Tribune , sent a lengthy reply to a resolution adopted by the Federal Radio Commission on May 18 in which The Herald- Tribune was asked to submit "any facts or other material" in support of editorial com¬ ment on May 12 that "the radio, controlled by the administration through its licensing power, was made the spokesman of the New Deal and largely restricted to government propaganda." Mr. Reid’s letter said: "My first inclination was, and indeed my preference would be, to disregard the manifest impropriety and unauthorized character of the resolution and the attempted indirect press cen¬ sorship involved; to furnish the facts supporting our opinion (but, of course, without disclosing names of confidential informants) and to begin the recital of the proofs by reminding the Federal Radio Commission of its warning to those within reach of its ’licensing power.’ "On Aug. 14, 1933, the Commission issued a statement which began as follows: "'It is the patriotic, if not the bounden and legal duty of all licensees of radio broadcasting stations, to deny their facilities to advertisers who are disposed to defy, ignore, or modify the codes established by the NRA, Commissioner Harold A. Lafount declared today in a statement. ' "The statement then quoted Commissioner Lafount as follows : "’Under the Radio Act the Commission has no right to take into consideration the kind of programs broadcast when licensees apply for renewals. * ** * It is to be hoped that radio stations, using valuable facilities loaned to them temporarily by the Government, will not unwittingly be placed in an embarras - ing position because of the greed or lack of patriotism on the part of unscrupulous advertisers. ’ "On further consideration, I have concluded that pre¬ ference should yield to principle. "One of the principles involved is expressed - and it may serve a useful purpose to quote it to the Federal Radio Com¬ mission here - in the First Amendment to the Constitution of the United States as follows: "'Congress shall make no law respecting an establish¬ ment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. ' 3 ■ . . v ' • ' ' ■ - - . - y % to -*S0#4 • . " ' • • . . ■ • . . • ■ ' , -■ dal . ■ ... ; ' . ■ ; ■ ; • ’ 5 • • ... - t cf j-J b' hl^St .tM - on : ■ h< t - - ' : • is- ad " ' ' - ■ • ■ . ■ - o it ■■ * .lew®? ania $ s 1o i nolBBlmmoO odd ,or:.e.I ,>I .3^A n°M - - ■ . •, 89SS .' ., ' ' " • " • ' B ' •- " 9 d1 o iu r - ' ; : • * . ; . , ' , ., - ...... ' Si di J 4 '■ <31 ’ • ' . . • . • . ‘ ' ■ * .x'ivG . ^3V.:jb 3iJoItfq*nLtenu , >1 j. on~ .. otf dlolx bSj.rc.il3 johs .01 : ; . i . ■ J li t - ■ - . . . . td . ■ j ■ ■ ■ . ' -y.u 9:-. • ■ - ■ 4-r.oO ‘ //; t nl . 1 r:< . _ ■■£«= " . .. 3v.>I‘ -B £»a 1 sr * 6/19/34 "Another of those principles is that inherent in the freedom of speech or of the press is the right of all citizens, including even those who wish to use radio communications, to express opinions upon matters of public concern. "It is his own opinion that a citizen has a right to express; he is not bound to hold or express opinions favorable to the policies of the government or acceptable to those for the time being in office and is not, or should not be, accountable to the government, or any of its agencies, if he ventures to express adverse sentiments. "Those rights, as we believe, were among those which Congress intended to preserve when it forbade the Federal Radio Commission to 'interfere with the right of free speech.' "I am well aware that your resolution is phrased as a 'request', that the requests of a licensing power are likely to be viewed as commands by those within reach of the power and periodically in need of renewals of licenses and that, fortunately for the public, no licensing or other censoring jurisdiction over the press is or can be constitutionally vested in any government commission. "Moreover, the most important time to stand upon such principles is when they are, on the one hand, being subjected to attempts at direct and indirect invasion and are, on the other hand, being made the subject of denials of invasion and disclaim¬ ers of intentional invasion. "Accordingly, I respectfully decline to render you an account concerning our editorial comment, which expressed our reasoned and sincere conviction. " XXXXXXXXX MORE CHURCH AND SCHOOL STATIONS EXEMPTED An order was announced on June 15 by which Division Administrator Sol A. Rosenblatt of the NRA exempts from the code of fair competition for the Radio Broadcasting Industry, the fol¬ lowing additional educational and religious stations: WDAH? El Peso, Texas; W CAL } St. Olaf College, North- field, Minn.; WOS, Missouri State Highway Patrol, Jefferson City, Mo. ; WNAD, The University of Oklahoma, Norman, Okla; KFCG-, The Biblical College, Boone, Iowa; WCAC, Connecticut State College, Storrs, Conn. Thus far about 30 stations in this class have been eliminated by the Code Authority. XXXXXXXX - 4 - • • t ; ■ ■'•0 J r :• o qu : . . . j5 s ■ . : ■ to .V' 3 r • . • • • 3- ’X . • a "iq t $ on si .• • • : 3. -X • ■ • , . : X •• • x-x 3 ;3 ■■ 3..Q . . ' ■ txjtfd ... ot xX- '■ X" - ■ - ' „■ wc X . ■ ■' :• XL " * ' I r.v • " .■ . t • ■ " . V . . :• -i ' vv \ banco acf .. XT' ■ 3B 3 18VX . : • , - : ■ • , • " • : - • . . X . .. . . ■ ... ; .. ... - . t ■ t j f . b o . . ■ . . > ■ xf-'x -tnlJ oiiT ...... ' . - ’ ' : ,MO0 ,8'TXOJ • . • . ' . x i :: ' x . • x x 6/19/34 AMERICAN RADIO MFRS. FACE AUSTRALIAN FIGHT Australian manufacturers of radio apparatus are making a determined effort to capture a larger share of the New Zealand market, according to a report from Vice Consul Walter W. Hoffman, Wellington. During the past year, he points out, they have succeed* ed in reducing to a considerable extent the number of American sets imported into that Dominion. There are, however, Hoffman states, a number of American makes so well known and popular throughout New Zealand that it is believed that neither Australian or European producers will be able to undermine their position. Radio manufacturing in the Dominion, the report shows, is confined almost entirely to cabi¬ nets and assembling. Imports of radio apparatus into New Zealand have remain¬ ed constant during recent months. During the first quarter of 1934 total receipts were valued at L49,094 compared with L52,417 for the corresponding period of 1933. Of the 1934 imports, United States products represented L25,763 compared with L27,000 in the 1933 period. Although the total amount of imports from the United States during the current year shows a slight decline, the report points out that the percentage of American goods has increased, being 52-jjr per cent this year against 51-§- per cent in 1933. This increase, Vice Consul Hoffman declares, is rather gratifying in view of the development of the local industry which is assembling sets from home-made and imported parts. The number of licensed receiving sets in New Zealand at the end of March of the current year was 118,580 compared with 93,914 on the corresponding date of 1933. Referring to broadcasting in New Zealand, the report points out that the Government, through the Broadcasting Board has taken almost complete control over the broadcasting stations and has thereby left but little scope for private enterprise. One new station has recently been opened at Auckland, having a frequency oi 1,090 kilocycles and an antenna power of 200 watts. XXXXXXXX WMCA WASHINGTON OUTLET GETS POWER INCREASE The Federal Radio Commission has granted Station WOL, Washington, authority to increase its daytime broadcasting power from 100 to 250 watts. Its nighttime power will remain at 100 watts. LeRoy Mark, owner and operator of W0Lf said the trans¬ mitter would have to be remodeled before the station can use the increased power. The work is expected to take several months. WOL is the Washington outlet of the new American Broad¬ casting Company, the Storer-WMCA network, which absorbed the General Broadcasting System, the ill-fated venture of Ed Wynn. X X X X X X - 5 - 6/19/34 l I SUPREME COURT JUSTICE HOLDS UP DeFOREST DECISION A setback to their victory on important radio patents has been met by the Radio Corporation of America, American Tele¬ phone and Telegraph Company and De Forest Radio Company, with the result that the Supreme Court’s recent decision must rema.in sus¬ pended until the court reconvenes in October. Notice that a stay of the court’ s mandate had been granted by Justice Cardozo last Thursday, at Rye, N. Y. was received in Washington by court attaches. His action followed a petition for rehearing, filed with the court on the previous day by Radio Engineering Laboratories, Inc., loser under the court's ruling. The petition declares that the decision, written by Justice Cardozo, was based on an error of scientific fact, and that the court's holding as to presumption and burden of proof in patent cases "is a radical departure from the established rule" and unless corrected "will become a dangerous precedent. " XXXXXXXXX CENSORING BANNED BY FLORIDA JUDGE f An injunction was granted in the Federal Court at Tampa, Fla. , ordering radio station WFLA, at Clearwater, to allow Morris Givens, candidate for State Attorney or someone designated by him to speak over the station four nights previous to the primary election June 26, without censoring the speeches. Givens had been notified by WFLA, through Charles G. Baskerville by letter, that all remarks relating to Col. Peter 0, Knight and C. Jay Hardee, who was named County Solicitor by Gover¬ nor Sholtz after Givens had been ousted by the Governor, had to be deleted. X X X X X X X MADRID TREATY NOW IN EFFECT The International Telecommunication Convention of Madrid, 1932, and the General Radio Regulations annexed thereto, which were recently ratified by the United States, became effective June 12, 1934, superseding the International Radiotelegraph Convention and General Regulations of Washington, 1927. Copies of the Convention and the Regulations may be pur¬ chased from the Superintendent of Documents, Government Printing Office, Washington, D. G. , at thirty cents per copy. XXXXXXXXX - 6 - 6/19/34 PRESIDENT DELAYS SIGNING COMMUNICATIONS BILL Although, the Congressional Conferees agreed on the Bill Friday June 8th, and it was signed by the Speaker of the House and Vice-President Garner on Monday, June 11th, and supposed to have been sent to the White House on the same day, President Roosevelt at this writing,- Tuesday afternoon, June 19th - has not yet signed the Communications Bill. No explanation was given for the delay except that the President has about two hundred bills to sign and has ten days from the date of passage of each in which to sign them. Evidently, it was explained, he has not as yet gotten around to the Communications Bill. XXXXXXXXX SENATOR WARNS PRESS AGAINST WIRE- CONTROL BILL The Communications Bill is the new wedge to censorship of the press in the United States, Senator Schall of Minnesota declared. "Under its provisions a committee of Congress it to report back to the next session Roosevelt's idea of wire control. This bill places telegraph and telephone companies under the sarm. restrictions as the radio. Everyone knows that the radio is censored by the Roosevelt administration", he continued. "The President desires censorship even more than he did in the first session when he demanded passage of the Sumner bill which made publishers liable to $10,000 fine and 10 years in prison for printing news matter not first approved by the President or his duly authorized agents. Even more now because if the truth is told to the people from now until election there will be return¬ ed an anti-Roosevelt Congress. Since the committee appointed under the Dill-Rayburn Bill will be named by his agents, its report can be forecast in advance as favoring censorship of press dispatches." Whereupon Senator Robinson, of Arkansas, replied: "I think I ought to take this occasion to say that from time to time the Senator from Minnesota (Mr. Schall) has been ris¬ ing in his place here and making statements, or having read at the desk bitter and, in my judgment, unwarranted and unreasonable attacks on the President and on the administration for interfering with the freedom of the press. "It is not appropriate to prolong the session of the Senate by a full discussion of this subject, but I do deem it pro¬ per to state that in my judgment there is no basis for the attack which the Senator from Minnesota has made and which he has so often repeated. - 7 - J.I.ff C ;.T I r; r, . . -381/oH . 'dlfs P i ■ u ; : V at ' .. -:. a i : . { t :■ I ' ■ • ~e * iV form ' i. . • ' V. . ... BnlJi'iw a i xfit . j X OV Z 80t rt : 1 . . ■ .1. L.; ■ .. h ■ ' ■ ■ ■ r v *"■) ^ *jW . - o at. r.-'-j: riw ■ . ' & : ■- n - £; B v J O 8 1 f 3 0 O J 3‘ A-, .0 v U V ’ I ..... sit EXJt'c artold oiawm oD 3 ' ,. . : . • ?. ■ :• .... j .. ;■ ■ . :: 4 '• o . i • I'Y-ih . ’■ y g ' •• :;[,j -;j ' at 3 ..j x ■> ■ - ■i i. ■ ti sioo ,s 8ii( .::a J: - o*iq 'ieJI?rtU” no .: ...... ■ I . - . . .; ; .. . ■ V. ! ■ :: ? : . . - . . t ' ■ ' • . . . . ' . S.L'1-j . ■ . ■ . j. » ‘ i.-" , 0 , ; ■ \ / . , . - 'V ‘ • ' • -. . j :iut , ... t .. ■■ . ■ , ' $1 t ■ • i © t . . ;v; /' /sqG'S 6/19/34 11 The President does not interfere with the press. I put in the Record the other day an article from the pen of Mr. Raymond Clapper, entitled 1 Why Reporters Like Roosevelt’, and in the course of that article it was disclosed that the President has won the esteem and the affection of press reporters in Washington. "Neither the Congress nor the President has done any¬ thing to interfere with the freedom of the press. And that there is absolute freedom of expression here is evidenced by the fact that day after day the Senator from Minnesota has exercised that liberty to the extent that if he made anywhere else the statements which he makes here he would be liable to prosecution for libel or for slander. 11 X X X X X X X PRESIDENT WILL MAKE NO APPOINTMENTS UNTIL JUNE 26 It was said at the White House that President Roosevelt would not appoint the members of the new Communications Commis¬ sion, or make any other appointments until he returns to Washing¬ ton, Tuesday, June 26, prior to his departure for Hawaii. In the meantime, conjecture is at a white heat as to who he may appoint. The favorites in the guessing match are Judge E.O, Sykes, the present Chairman of the Radio Commission; Capt. S. C. Hooper, Chief of Naval Communications; Col. Thad Brown, or Com¬ missioner Harold A. Lafount (maybe both) ; Homer Hoch, of the Kansas Public Service Commission, and Milo R. Maltbie, Chairman of the New York Public Service Commission. It seems to be the opinion that Representative Prall, of New York, will be appointed to the new Commission. One interpretation of the Constitutional provision is that he will not be eligible to serve until January 1st when his Congressional term expires. A prominent lawyer in Washington declared yesterday that he believed Prall would be ineligible to serve at any time, himself (Prall) having been a member of the Congress which created the Commission. Former Congressman John Edward Nelson, Republican, of Maine, is understood to have been among the latest candidates for the Commission proposed to President Roosevelt. XXXXXXXX — 8 *• 6/19/34 RADIO MANUFACTURERS VOTE TO HAVE SEPARATE CODE Unanimous decision of the radio industry to withdraw from the NRA Electrical Code and operate under a Radio Industry Code, featured the tenth annual convention of the Radio Manu¬ facturers5 Association at Chicago. An excellent, separate code for the Radio Manufacturing Industry was drafted, approved not only by the RMA Board of Directors, but al! so unanimously by its entire membership in convention session and is being submitted immediately to the National Recovery Administration at Washington. A Committee of leading radio manufacturers was appoint¬ ed to present the new Radio Industry Code to the NRA. Capt. William Sparks, of Jackson, Michigan, is Chairman, and James M. Skinner, of Philadelphia; A. S. Wells, of Chicago, S. W. Muldowny, and Arthur Moss, of New York, are members of the Code Committee. Leslie F. Muter, of Chicago, former Vice-President and Treasurer, and for many years a Director of the RMA, was elected President of the Association for the ensuing year. The Vice-President sof the RMA are Arthur T. Murray, of Springfield, Mass. , now NRA Code Supervisory Agency for receiving sets; S. W. Muldowny, of New York, NRA Code Supervisory Agency foi tubes; Arthur Moss, of New York, and Richard A. O'Connor, of Fort Wayne, Ind. . New members elected to the RMA. Board of Directors are Benjamin Abrams, of New York; Dr. W. R. G. Baker, of Camden, N. J. and Paul V. Galvin, of Chicago; Ben G. Erskine, of New York, and J. C. Warner, of Harrison, N. J, , and N. P. Bloom, of Louisville, Ky. Bond Geddes was reelected Executive Vice President and General Manager and also Secretary of the Association, and John W. Van Allen, of Buffalo, Ne¥/ York, General Counsel. XXXXXXXX NEW YORK NEWSPAPER GRILLS COMISSION As a follow-up of the letter which appears on pages 3 £ -■ 4 of this issue, addressed to the Federal Radio Commission by Ogden Reid, Editor of the New York Herald- Tribune , the Herald- Tribune , beginning Monday, June 18th, started a daily series of four articles attacking the Commission on its alleged methods of censorship. Extracts of these articles will appear in our next issue. XXXXXXXXX 9 \o :;cn~ >::..kRAssz wm : 3 ..... • TT A . • ' ■ (> . . • ■ 2 o t , ht. ■ ' a * Oil) ' ; ' . '. ' : . ; ' 1 9.6 c ) i y nA » og ' OS'; : 7C .:■■ J ’• - ' i . a ' •-c? ■' : ■■ ■ 1 . ' X , . - i ' ’J ' ■ . ' > i : ' ^ irtj : - . -v . »• : . .-■ ■ ■ o oi ■’ •- ' • ■ '' . ■ ' ' ■ " ■ ' ' ci ; ■ . . S 1 :il 1 o- . . c M ■ - ■ , ' . ; . •' . . ' . • . ' l ‘ . ; '■ . • : . . • ' ; Vi'- -:-r •; ■ • : ; : ' ‘ : ' ' .. ' \ ' r.?u ".c /jk AAs * Bibf Q$ 6 5 '!"■ iX® ■ - * • • . .. ' . ■ : \ .. |l ‘ [u ■ . r, :o; r. j;. ■' y; . - . x x >: x X'X 'X x x ~ 0 ** 6/19/34 N. Y. MAYOR PUTS WNYC ON PROBATION Mayor LaGuardia has given Station WNYC, the New York Municipal Station, until January 1st to justify its existence. Apparently he had thought of abandoning the station. The Mayor expressed displeasure over advertising he heard in a program and said that he objected to the city selling advertising time. Several offers had been made to him by private interests desiring to acquire the station, Mayor LaGuardia said. XXXXXXXX RMA OPPOSES LABOR LEGISLATION The Radio Manufacturers' Association joined with the National Association of Manufacturers and other organizations in successfully preventing action, before Congress adjourned, on the Wagner Labor Bill. Chairman Paul B. Klugh, of the RMA Legislative Committee, brought the original Wagner Bill before the Associa¬ tion's Board of Directors on June 11 and telegrams of protest were sent to Vice President Garner and Speaker Rainey for considera¬ tion of theCongressional Committees. X X X X X X X I. T. & T. IN QUARTER EARNED $898,767 The International Telephone and Telegraph Corporation reported last week for the first quarter of 1934, a consolidated net income of $898,767 after all charges, taxes and depreciation. This was equal to 14 cents a share on 6,399,002 no-par capital shares in the hands of the public. It contrasted with a net loss of $854,251 for the same period of 1933. Net profit in the final quarter of 1933 was $933,348. Notes and loans payable to banks were reduced about $2,300,000 between January 1, and May 31, amounting to $32,419,409 at the latter date, the statement said. Gross earnings for the first quarter were $20,047,078,. against $15,539,853 for the 1933 period. Of the total in the first quarter this year, $17,960,590 consisted of operating revenues of communications companies and grossprofits on sales of manufactur¬ ing companies; $1,056,596 was interest and dividends received frcn the Spanish Telephone Company, and the balance was other interest, dividends and miscellaneous revenue. Operating expenses were $16,012,578, compared with $13,550,023 in the 1933 period, leaving net earnings of $4,034,49'.' against $1,988,930 for the first quarter last year. 10 - >5W\a ;i . v : d j ‘ . ■ • . . / ■ ts ■ pcs ; ; r 3 ,;r /. j 1 d .vil .ci;i£ . . f ■ ■■ - sd x • • »blBt bi xOf a '^.i 1 , • r 'j ^5 ; • - . 1 • j; : jy: aril -::rf irpos oi \ / X X X X X ■ .' X mmaa n • me ■ ■■ • - ■ ' - ■ ■ , ; ' ' ' ■ , r V3 V !: ‘ 0 - , j-,. , - r .. . ..tv. £ .T . X .. y> 10 J iiq.613 ■ ■? • J,. • V. . J./ £/0 r od • . . j r • >’ 1 - ; ' > •- Xv , . ,• i i lOi* r • ' • •' 00 4 3 jJLrn 38 61 n $ I W -i-’&O ■ 31 .. • '• • ■: r - 9>t 1 tol 1^-8 ,>dcf-N ; 0 b C - J. *% vi 1 i In a 8 ‘3 1 o' 00 t» 18 e .’l ; ■ ‘ r I* 3X1 j * i ’ tl- V"V 1 u . it ill Ob sr. v 0 • by ' i; 'v* V-’V- ^ * - ■».' g •x 3.1 j •*.. 1 <•> . ;•) : ; . 0- l; v; ? t'iBe1 a iit’i JUl (-i v c* \* vi ,* j . ' . V.: vlnw«:nioo vi to • **r > - u V*\ ft 1 , * 1 rr 0 r y : a . 1 f • . ■ :* ■ . x X > * ■ i . '...till ;; • ■ "I'M 0: , /; r ■ < - 1 • -j : ‘ ' : '• * ;4 vbr* • 1 • a ,t : .. .. iat: 0 , ' L ■ b; ' ' . ' l ' ' -■■■•. ■ ■ e ' ; , . • D ■ ■ ■ oJfce . . not di - : • ' «. . . V A ‘ ' J '■ *»• • • • *• r .. w ' Ola rfd x x :• x. X x x 6/19/34 The Postal Telegraph and Cable Corporation reported a loss of $176,710 for the first quarter of 1934, comparing with a loss of $766,833 in the same period last year. Gross earnings, were $7,234,763, against $6,230,668, and net earnings after taxes and depreciation were $529,706, contrasted with an operating loss of $79,028 a year before. X X X X X X X DECISIONS OF THE FEDERAL RADIO COMMISSION WCBD, Wilbur Glenn Voliva, Waukegan, Ill. , authority to use transmitter of WMBI at Addison, Ill. , for period not exceeding 90 days, while repairing own transmitter; WINS, American Radio Nev.s Corp,, New York, modification of license to increase power from 500 w. night, 1 KW day, to 1 KW day and night (no change in hours of operation); KTSA, Southwest Broadcasting Co., San Antonio, Texas, special authority ( experimental ) to change frequency from 1290 kc. to 550 kc. , and increase day power from 1 KW to 2-§- KW for period ending October 1, 1934; WC-ST , Ga. School of Technology, Atlanta, Ga. , modification of license to increase power from 250 watts night, 1 KW day, to 500 w. night, 1 KW day; KGSR, Cons. Broadcasting Corp. , Ltd., Long Beach, Cal., C.P. to move transmitter locally and make changes in equipment; KLUF. Geo. Roy Clough, Galveston, Texas, special experimental authority to increase daytime power from 100 to 260 watts, for period of 6 months; Also, WSMB , WSMB f Inc. , New Orleans, La. , modification of license to increase power from 500 w. to 1 KW; KGGF, Powell & Platz, Coffeyville, Kans. , special temporary authority to operate Tuesdays and Thursdays from 7:15 to 9:15 P.M. Wed. from 8:15 to 9: If P.M. CST, for period July 8 to August 7, 1934, provided WNAD remains silent; KFJB, Marshall Electric Co., Inc., Marshalltown, la., special temporary authority to operate from 9 A.M. to 12 noi. n; 3 to 6 P.M. and 9 P.M. to 12 midnight, CST, June 26 and 27; WHAT, Independence Broadcasting Co. , Inc. , Philadelphia, Pa. , special temporary authority to remain silent from 5 P.M. to 12 midnight, EST, July 4. Also, Elmira Radio Amateur Association, Edward Lewis, President, Big Flats, New York, C.P. and license (General Experi¬ mental) 31600, 35600, 41000 kc. , 5 watts power; Same - Portable & Mobile, license (general experimental) same frequencies as above, 20 watts power; Same - in a Glider, 8 licenses, same frequencies as above, 1 watt power; Ralph W. Kenyon, Portable - Mobile, two C.P.s frequencies 31600, 35600, 38600, 41000 kc. , .5 watts, also licenses covering same; Greenleaf Whittier Pickard, Seabrook Beach, N. H. , C.P. , frequencies 41000, 53000, 60500 kc. , 2 watts power; City of Richmond, Va. , Dept, of Public Safety, C.P. for emergency police service, 2450 kc. , 150 watts; KGHU, City of Austin, Texas, Police Dept. , C.P. emergency police service to increase power from 25 to 100 watts; KGZA, City of Fresno, Fresno, 11 - 6/19/34 California, C.P. to increase power from 100 to 500 watts; Sun Oil Co. : KILM, Portable (Shooting Station), geophysical license, 1652 kc. , 5 watts, A1 and A2 emission; KILG, Portable #1, same, except A1 emission only; KI LH , Portable #2, and KILI , Portable #3 geophysical licenses. 1652 kc. , 5 watts, A1 emission only; W2XDV. , Central Hudson Gas & Electric Corp., Portable, license, 31600, 35600, 38600, 41000 kc. , 20 watts; also granted modification of C.P. to increase power from 5 to 20 watts and change frequencies from 60000-65000 kc. to 31600, 35600, 38600, 41000 kc. ; W3XH , City of Ventnor City, Portable-Mobile, general experimental license, 30100, 33100, 37100, 40100, 86000-400000, 401000 kc. , and above, 4.5 watts. Also, Press Wireless, Inc. : WJM, WRDB , Press Wireless, Inc., Washington, D. C. , modification of C.P. extending completion date from July 1, 1934 to Jan. 1, 1935; WAFJ, WAFN WHT WHV WHY WAFM WHS WHU WHX WJA WJC, Same, near Elgin, Ill., extension of completion date from July 1, 1934 to Jan. 1, 1935; New - San Francisco, Cal., license to use transmitter already licensed under call letters KJAD, KMB, KJJ, KOP, 13790 and 13840 kc. , 1500 watts; New - Same except 17440 kc. , 1500 watts; WAFH , Hicksville, N. Y. , modification of license to add as secondary point of com¬ munication any multiple address receiving range of this station within the continental limits of U. S. and Canada; Same for WCX, and WJS0 Also, Globe Wireless, Inc. : KDO, Keana Point, T. H. , KGH, Musselrock, Cal., KRS, Cypress, Cal., KVS, Edmonds, Wash., modification of license to add frequency 9365 kc. ; also same stations plus KFU; Guam, M. I., and WGP, Garden City, L. I., except to add frequency 18730 kc. ; W10XAP , National Broadcasting Co., Inc., Portable-Mobile, modification of license to add fre¬ quency 27100 kc.; W1XW , Albert Sise, Milton, Mass., renewal n.id modification of license, change in class of station from general to special experimental so station may continue on frequency 60600 kc. , 50 watts. Miscellaneous WIBG, WIBG, Inc., Glenside, Pa., granted regular license to expire Nov. 1, 1934. Application for renewal was designated for hearing on April 27, because of pending application of Chas. Dixon Gentsch which has just been dismissed; Martin C. McIntyre, Bradford, Pa., C.P. for new station, 1420 kc. , 100 w. unlimited time, heretofore designated for hearing, was dismissed at request of applicant; General Television Corp. , Boston, Mass., C. P. (Exp. Serv)., heretofore set for hearing, was dismised at request of applicants. XXXXXXXXX 12 r\ " ’• . flB J k . t . ■ . : . , , fq'i?0 o. • aJbu . - ■ . ; : .. ... 1 j , : .. W 0 2 ■ 3 ■ S9*x ■«. t ; • i\ "• . hi 7i \ ■ - ■ t( ■. ... , •. . . . * a .t£ .-v.7 r i ..... ■ t s? i: 7:7 7.0 vb 7i$ i ■ •• M { 1 ., k01 M . ■ W - 1 ... r , • . $ : . . . .'jut n. . i ecf * oiJ' ^Lqinoo '■ ■ ■ ' . ■ -. • • • ' . . . f. T CiTj .V' v i »:’■ .' t> .J. '• - ... - I < t$ ttl 7 ' .«• f .V . ■ . ' .... . . : . to eaalo- a t wteoJt '' ... ... [@ . • . ■ ; Iai. r • . . . : . , ' & no d fw! .. . ' . 7 1&£L , 'Ofoj l . . (y tea ,qx.. > . f. '• .. c ■ t .i O' *} Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL - Not for Publication w INDEX TO ISSUE OF JUNE 22, 1934. Radio Leaders Appraise New Law As Regards Broadcasting . 2 President Signs Communications Bill . 4 Radio Broadcasting Industry Hearing On Labor Provisions . 5 Demand In Argentina For Non-Assembled Radio Sets And Parts . 6 New NRA Code For Radio Industry Has Unanimous RMA Support . 7 Communications Commission Line-Up? . 8 Newspaper Criticism May Prevent Commissioners’ Reappointment. .. 9 i Business Letter Notes . 11 Decisions Of The Federal Radio Commission . 12 No. 734 . ' RADIO LEADERS APPRAISE NEW LAW AS REGARDS BROADCASTING Outstanding authorities in the radio industry were asked this question: "What effect will the new Communications law have on broadcasting?" Their replies were as follows: Senator C. C. Dill, of Washington, co-author of the Communications Act - "I don't know of any particular effect. I hope the new Commission may be able to solve some of the radio problems not solved up to this time. There is nothing revolution¬ ary in the law which President Roosevelt has just signed. Every¬ thing depends upon the new Commission." Senator Wallace White, of Maine, co-author of the 1927 Radio Act - "If I must give a ‘yes' or 'no' answer as to whether the new Communications Act will affect broadcasting, I'll say 'no1. Judge E. 0. Sykes, Chairman of the Federal Radio Com¬ mission - "I believe the new law will prove highly beneficial to broadcasting. It is just possible that one of the two or three new divisions which are to be set up in the Communications Com¬ mission may devote itself to the study of broadcasting exclusively. Henry A. Bellows, Chairman of the Legislative Committee of the National Association of Broadcasters - "The question is perfectly unanswerable until you know who is going to be on the Commission. The law itself doesn't involve any material change in the broadcasting setup. Everything depends upon what the Commis¬ sion may do and may recommend. " Frank M. Russell, Vice-President of the National Broad¬ casting Company - "The new Communications Act does not materially alter the administration of radio broadcasting, but it does give to the Federal Government for the first time a coordinated regula¬ tion over all forms of communication - radio, telephone and tele¬ graph. " Thomas P. Littlepage, Counsel specializing in radio - "An important provision in the new law is that the Communications Commission recommend new legislation to the next Congress. Obvious ly they will grant hearings to interested parties in the industry so as to get their views on suggested legislation. " Paul D. P. Spearman, former Assistant General Counsel of the Federal Radio Commission - "The Radio Act of 1927 was enacted in an attempt to bring order out of chaos following the so-called 2 {*■ ) Bi* ' v . ■ . • •- : ■ ' ... • •. ■ . tiSSEtC . c ’ ‘ V.J3B XI ? •! ' ' . j . ' ;V;. - " ' ’ ' ' ’■ « ' • ; - - ■ '* ' . ■. ■ iO : w-- ; ; > - - . ' ■ • . ■ ■ ■ ' • ; ' . " ■ • . . .. : t •' r: ■ ; - ■ ‘ • O -Vj -V: ; . Q . :.l:y ir • • ' • • ZO /. fc i • ?! ! 1 ; • . ..'.•,•'•5 -i: s i r * 1 i . : ■ ' . ’ V '*4 «V r..' ’ •' . • ' /•. ... ' . ’ . V 0Q , ' : * ■ . • • . i - ' • - •. . IS8 f " ' ‘ • : ■ 1 ’ : ' ' J •- 3 : */J* • Jr - to no . ‘ ■ w. 6/22/34 •break-down' of the law in 1926. The Act set up the Federal Radio Commission as a temporary regulatory body and its existence was extended from time to time and finally until otherwise ordered by Congress. The temporary nature of the Commission at the beginning, together with the constantly recurring talk with respect to the creation of a Federal Communications Commission, had the effect of holding radio regulation in a suspended state with some degree of doubt always in the minds of licensees. "The action of Congress in creating a permanent Communica¬ tions Commission will, in my judgment, stabilize radio regulation and remove from the minds of licensees any doubts which have haunt¬ ed them heretofore because of the temporary nature of the Commis¬ sion under which they have been regulated. With this stability and added security, I believe radio will make greater and more rapid strides than heretofore, particularly do I believe these factors will be conducive to improvements in the physical plant and equipment used in radio communication and to what will be recognized as noteworthy advances in a higher order of public service. " Louis G. Caldwell, former General Counsel of the Federal Radio Commission — "The Communications Act makes relatively few and comparatively unimportant changes in the law governing broad¬ casting stations. The changes are a mixture of good and bad and in my estimation the balance is about even. It is a matter of regret that certain defects of the Radio Act were not cured, not¬ ably the lack of adequate court review of Commission decisions, and the absence of restrictions on the indirect form of censor sh:p exercised by the Commission. As is true generally of administra- tive tribunals, regulation under the new law will be as good or a: bad as the personnel of the new Commission. " John Shepard, III, President of the Shepard Broadcasting Service, Boston - "There is very little change in the new law. I don't think it will affect broadcasting one way or another." Judge Ira E. Robinson, former Chairman of the Federal Radio Commission - "It should have no depreciating effect and in time should better it, all of which will depend on the wisdom or lack of wisdom of those appointed to administer the new Act. " Philip G. Loucks, Managing Director, National Association of Broadcasters - "There are only a few changes from the existing law. Its administration should not materially affect the operation of broadcast stations. " Oswald F. Schuette, Radio Counselor, Washington, D. C. , - "It all depends upon the makeup of the new Commission." Bond Geddes, Executive Vice-President, Radio Manufacturer Association - "Immediately I think we need anticipate no important changes, but later there may be a new allocation involved." - 3 - 6/22/34 James W. Baldwin, Executive Officer, Code Authority - "The result of the new legislation will he dependent entirely upon the way and manner in which it is administered. " Col. Thad H. Brown, Vice Chairman of the Federal Radio Commission - "The new law corrects some glaring defects in the Radio Act of 1927 as amended and should prove a boon to the listen¬ ing public. Particularly beneficial, in my judgment, is the pro¬ vision prohibiting the broadcasting of lotteries and games of chance. " Harold A. Lafount, Federal Radio Commissioner - "Radio broadcasting should be vitally improved under the administration of the Federal Communications Act which clothes the new regula¬ tory body with broad powers to be exercised in the public inter, + 1 James H. Hanley, Federal Radio Commissioner - "The new Commission will be able to devote much time to the study and enforcement of constructive policies since routine matters con¬ cerning the regulation of radio are now well organized. " Dr. C. Be Jolliffe, Chief Engineer of the Federal Radio Commission - "Any changes in broadcast allocations will be due to changes in policy of the new Commission rather than changes in the law. The engineering phases of broadcasting are left unchang¬ ed except that additional 100 watt stations are permitted, with interference being the limiting factor instead of quota." George B. Porter, Acting General Counsel of the Federal Radio Commission - "The Radio Act has been codified and brought up to date by its re-enactment in the Communications Act of 1934. Several new sections taken from bills have have heretofore passed the Congress, as well as one or two suggestions of the Federal Radio Commission, have been added. "I anticipate no immediate or drastic changes in the broadcasting allocation. However, the Act contains, as does the present law, ample authority for any improvements which the new Commission may decide to make in the public interest." XXXXXXXXXX PRESIDENT SIGNS COMMUNICATIONS BILL President Roosevelt signed the Communications Bill late Tuesday afternoon (June 19) just before leaving the White House for his New England trip. This Bill, among other things, does away with the Federal Radio Commission and absorbs the power of the Interstate Commerce Commission over telephone and telegraph placing it in the hands of a newly organized Commission to be appointed to handle communications of all description - telephone, telegraph, cable and radio. XXXXXXXXX - 4 - •' 30 • vi ; . ; . ‘ • , • 'r j . . •' • \? <’ •■r'i . i'uaeo: . .'i ’’ ■ SR & E ft &d X siii - ; ’ ; a ... . .• . ' : , gn Isa 'i :.-r .A £ \ rx.£ X ■ ' ’ ... a ;si ssxi.j'oXo ■ ... ! , : . n ioD vcsnoiB-jimcO a.LoaB .£«*? sb :/• < -jaln'sH ,H sBcriBl- ' 0 . ' 0 til ■ - Xo c . . . ■ [ Q&B&Xd ll . • .....: - ■ . ■ _ _ . . a : . ■ ■ f ’ ' ■ i ..' W i: i . . EO ’ :’ . f R.t P )VI> f l aa it ..... , j, o XqTrtfe •TA.-C . \1 T :. x a ;■ x . J.II? ... . . 33 . V M . .. . . ' t r \ : I ’ , >1 1 ■ . . T .... ■ • .. . . / ' . " ■ ' S : . ■ _ '• • . ’ . • : ' • c ' 6/22/34 RADIO BROADCASTING INDUSTRY HEARING ON LABOR PROVISIONS Gross revenues received by the nation's two large radio networks during the period between December, 1933, to May, 1934, marks an increase of 38.5 per cent, over a similar period in 1932 to 1933, j.t was disclosed on Wednesday (June 20th) by the Research and Planning Division of N.R.A. , at a public hearing held in the Hotel Raleigh, Washington, D. C. , called for the purpose of considering the advisability of revising the wage and hours provisions of the approved code for the radio broadcasting industry. The figures were obtained from Media Records, New York, according to David M. Kendall, who represented the Research Division at the hearing, and were cited by Deputy Administrator William P. Farnsworth, following a recommendation made by the N.R.A. Labor Advisory Board, under which radio broadcasting technicians would receive increased wages above present code provisions and decreased working hours. Concurrently, the industry's Code Authority, represent¬ ed by James W. Baldwin, Executive Secretary, urged that no changes be made in the existing labor provisions. Such a step ad advocated by labor spokesmen, he said, wrould "oppress and eliminate many small radio broadcasting enterprises and may promote monopoly. " Broadcast technicians, he continued, work under excel¬ lent conditions, the work is not fatiguing, and they enjoy greater protection against accidents than is the case among other employee doing similar work in other fields. He declared, however, that the increased earnings cited did not warrant changing wage and hour provisions, pointing out that there had been a sharp decrease in earnings during May and that during the last ten days there had been a wide cancellation of contracts for the coming summer period. Philip Loucks, Washington, D. C. , Managing Director of the National Association of Broadcasters, spoke briefly, concurring with the recommendation made by the Code Authority. Mrs. Emily Holt, of New York, Administration member of the Code Authority, spoke on behalf of radio artists and performers, and urged a revision of the questionnaire sent out by the Code Authority, on which the latter group had based its findings. Charging that the artists had not been given proper consideration, she added: "Too much time has been lost in including our group under the Code". Mrs. Holt is also Associate Counsel of the Actors' Equity Association. Paul N. Turner, counsel, and Alfred Harding, editorial chief, both of New York, appeared on behalf of the Actors’ Equity Association. 5 - ‘ ' ' IDEA* □];,f 2 . . , > : ■ ■,/ ■’ +■ yrj, ■' . ■ • \ , ; t'.' .* j ■V ' / - . - : i . ■ •; : o ore:,-:.. t ' ‘ -.V ! .ox 01 Of - £ ; i jj.O ■ .. ■' ! V I ' OC- I : i- L- ■ OCi v ;>C( xo ■ • ■ fit ■: L . - : ■ •• . , >aj - - tuc ■ n it ■ j yv: t^rc. *; ■. 9 i j o ‘ . . ; ' : .. y ; ■ . ;r • :;i.ao -J ■ . * ' . . ' . ■ i i r. ': ' ; ,.’,1 , f 4 j 3 ■ :■ ■' 9*tQf ' ff/ r. : D / .i. 0 - .. .. f " ! i - ' . . qlim -S'-;: ; :yi d.' • v. Jfcv 7 4 v\ • ■ X : ' -i - • - ' i \ ‘ * , i ’f} , r T ‘ :q flsv a : ■ - '■ 1 h - . • r ■' 'ti'vDnu' . • ■ ■. >t/ •.! . . r03 :;A : 6/22/34 Specifically, the Labor Advisory Board, represented by Edward N. Nockels, and C. A. Wood, recommended maximum hours of 35 per week, and minimum wages for technicians of $44 per week when employed by "clear channel" or high powered regional stations, $33 per week when employed by "clear channel" part-time, or low powered regional stations, and $22 for employees of all other stations. Other employees, less skilled, would be assured a $16 weekly minimum. Artists and performers, too, would be guaranteed' minimum wages and maximum hours under the plan advocated by the Labor Advisory Board. Edward D. Bieritz, representing the Radio Division, International Brotherhood of Electrical Workers, an A. F. of L. affiliate, made similar recommendations, urging a 10 per cent increase in the present wage rate, and a 25 per cent reduction in hours. Bieritz also referred to the earnings of the large broadcasting chains, and pointed out that the revenue received during the month of March, 1934, was greater than any other month in their history. The broadcasting industry, he said, has been one of the greatest beneficiaries under the N.R.A. He said he spoke for 2,000 broadcast technicians in the industry. Other witnesses representing the International Brother¬ hood of Electrical Workers, Mr. Singer of Station WOR; P. I, Merryman, International Vice President, Association of Technical Employees, H. Spears, and R. Turetsky, of the Columbia Broadcast¬ ing Technicians also appeared. XXXXXXXXX DEMAND IN ARGENTINA FOR NON- ASSEMBLED RADIO SETS AND PARTS Pointing out that there is little demand in Argentina for complete foreign radio sets, a report to the Commerce Depart¬ ment from its Buenos Aires office states that the demand for foreign-made chassis, non-assembled and partially manufactured apparatus, tubes and parts is now at its highest point. The assembling of parts and sets by local firms and branches of American firms has become sufficient to more than sup the demand for radios in Argentina, the report declares. All chassis, whether imported or assembled locally, are supplied with locally-made cabinets which have not reached the perfection of those made in the United States but satisfy the Argentine trade. It is estimated that the plant capacity for assembling radios in Argentina is as high as 20,000 sets a month. Argentine imports of radio apparatus in 1933 were valued at 6,932,317 paper pesos against 6,102,839 paper pesos in 1932. The present annual demand for radio sets in Argentina is estimated at between 130,000 to 150,000 sets of all types, the most popular 6 6/22/34 sets being those with 5.6 and 7 tubes. The total number of receiving sets in Argentina is roughly estimated at between 500,000 and 600,000, there being no Government licensing system and therefore no accurate data on this subject. Exports of radio materials from the United States to the Argentine market during 1933, the report shows, were valued at $1,835,753. XXXXXXXX NEW NRA CODE FOR RADIO INDUSTRY HAS UNANIMOUS RMA SUPPORT With the unanimous endorsement of the Radio Manufactur¬ ers' Association, following formal approval of its members in annual convention last week at Chicago, and also the RMA Board of Directors, a Code of Fair Competition for the Radio Manufacturing Industry was submitted to the National Recovery Administration this week. Withdrawal of radio and television manufacturers from the present electrical manufacturing code is provided upon approval of the new separate radio code. Self-government and permanence of the radio industry and the RMA. under the principles of the NRA are the basic objectives of the new code. Radio manufacturers will remain subject to the present electrical code until the NRA takes expected favorable and final action on the separate Radio Code. A formal hearing by NRA is planned soon on the RMA application for withdrawal from the Electrical Code, now in operation under the National Electrical Manufacturers' Association. The new Radio Code submitted to the NRA was drafted to meet the special needs and independent administration of the radio industry. Proposals for a 40-hour week for factory labor, with minimum wages of 40/ per hour for male employees and 32/ per hour for females, are the principal labor provisions of the new code. It also includes many trade practices, industrial relations policies, a provision for open price filing, and sets up a separate Code Authority, selected from the radio industry, for enforcement and administration. The RMA Code Committee is headed by Capt. William Sparks, of Jackson, Mich. , as Chairman. Other Committee members are James M. Skinner, of Philadelphia; A. S. Wells, of Chicago; S. W. Muldowny, of New York, and Arthur Moss, of New York. An ex-officio associate is Arthur T. Murray, of Springfield, Mass. This Committee, with John W. Van Allen, of Buffalo, General Counsel of the RMA, and Bond Geddes, of Washington, Executive Vice President and General Manager, have charge of hearings and negotiations at Washington, XXXXXXXX - 7 - .... • ' - • f d : - Ut 4 tort ■ n ta »a ■ • . • ■ 3 -■ ,. . ■ .• £ .. ■■ ■ ■ ai/iv'i nc ■ ■> ? s4 ':Vi'i’00,c. on ; "’"X orut fxus : .10', ...I.', -sm o:..5/-^ do nddoqxS - ,oc;’ 4 3.6 o t I# s p. ' :,t •: ■.pV.mfiM Oj.. .oVl ■ ■ "0. ...':' ■ 38 d . ■ ■■ &. ■ i - : d tdi o >c . . ■ 4 @4 £ Wd ’ d ■ rsoo - tf/i 44 .... .. : • . 0 j ■ odo IJ . dd od? r odv if . dvs ’a * : oij-.'&o.C . . r.d-:; ' t£ ■ n< ■ jja . ■ . ' ■ ' tu ■ ■ bo . ■ ' .. : - ... • ft s . . ' n .to £ . ■ . ; ■ ■ ■ ■ ■.... jx£d :....■ . . " . " ' ' • • ■' •• . ,fio l£r-.lr. ;j». ro~c ' •.. L-itPkt - .... . .. ... . ■ ■ fnsJ , : -0 “U .'d > •' V { ; . ■ Bs'r. ; V u. ^fiweqo'X'i qImts . 5q to bcvBBW nuriniori civ oo . • . ... j m V ■, , . I : ■ e: Jfcic ' ■ *10 . 4 J , 4 ' .;...■ ".. h ' c ■ . . i r- .• ■ •’ )Jto £< id I 0.( r "Vi fU ..sobM ,Jb " a. -.•. • • . . .... • • . ’ ,• ol oo ■■ ■ .A c ' '/vH '?.:o t ■■ , ■ , . ■ .:;.:V;.niiio ,. t8sM)?.'0 J&noSi bits tAMH a4d> to leaftwc * 6/22/34 COMMUNICATIONS COMMISSION LINE-UP? Since the life of the Federal Radio Commission will end next Saturday, June 30th, the new Federal Communications Act being effective July 1st which calls for the appointment of seven members to form the new Communications Commission, President Roosevelt will doubtless give the matter consideration over this week-end which is being spent at his home in Hyde Park, N. f and make the announcement of his appointees to this Commission early next week upon his return to Washington. It has been reported as almost a certainty that Judge E. 0. Sykes, present Chairman of the Federal Radio Commission is to be appointed as Chairman of the new Federal Communications Commission, and that the other members of the group of seven to be appointed will be those named as guesses in our column on Tuesday, June 19, namely, Milo R. Maltbie, Chairman of the New York Public Service Commission; former Congressman Homer Hoch, now of the Kansas Public Service Commission; Capt. S. C. Hooper, Chief of Naval Communications; Col. Thad Brown, Vice- Chairman of the present Radio Commission; Harold L. Lafount, Federal Radio Commissioner, and that Herbert L. Pettey, present Secretary of the Federal Radio Commission will be appointed to the Commission with the idea of serving until Representative Prall's Congressional term expires, at which time he will take over the Secretaryship of the new Communications Commission. If Mr. Maltbie is appointed, as it seems pretty definitely understood that he will be at this writing, the feeling seems to be that it is not going to please the telephone companies any too well as he is a vigorous foe of such organiza¬ tions and if made Vice-Chairman of the division handling such matters, as anticipated, would be pretty apt to start a thorough investigation at once of telephone companies and their properties, as well as the fixing of rates. It is thought that Captain Hooper, if appointed, will perhaps be Vice-Chairman of the Communications Division, and that Mr. Pettey, will be named Vice-Chairman of the division dealing with radio until such time as Representative Prall takes up the reins January 1st, at which time he (Representative Prall) will become Vice-Chairman of that division. XXXXXXXX - 8 - - cr . i-'j ■ • :■ ... v ; . . - : ; . . ' ... .. . - ; . DJUU . , / 9 Q&$ . . . 1 ' ' ■■■ ■ '■ ■' d .. ■' :> ■■■ 0 . • ' ■ '■‘O * . . . . . ' V. - '. y: ■■ •- • : . ; ; - ■■ . — - . : : } t , : l t ' - t c |j & . ■ "" frttM ■ ’ ■' . " ■ i : .■ o.i. - ■. :v. - ;• o oJ ■■■ I ■ ■ ; ■ ' ’ :. : . . •: • . ... . ' tr. j.d'.r, : ■ v l.ooq.r, . • :\t no ' : , o' ^ % aniiL , . ; ■ "• f - J. 0 O' « s 388 . . ' .. b » i tqj? " : .1 . ' . -SO-iV . rrar . . i .. V t .... *Ai- .... . f maoD x JE>jbH . ' iij tins Qjt.a .;. l;vT9.b :■! :• o • b : ' • ■ j & 10 i* , 8 9*1 * .v ‘ ol - . ' 2l$o .LI ,XW ■ . o tc f. o a ■%yr: . „ no 1: 8 > i fj J. • Id .10 0 (3 . .. . . : .... ' . . ■ . . • .. ■ i ■ . ■ . . . sit . . • ■ ; . . a . i i £ 2 8 • • 6/22/34 NEWSPAPER CRITICISM MAY PREVENT COMMISSIONERS' REAPPOINTMENT It is believed if President Roosevelt intended reappoint¬ ing members of the Federal Radio Commission to the new Communica¬ tions Commission that their chances of being thus favored might have been lessened by criticism of the Commission by powerful newspapers. The New York Herald Tribune has just concluded a series of articles attacking the Commission. This followed a series written by Arthur Sears Henning, which appeared in the Chicago Tribune several weeks ago. Both newspapers alleged that through the Radio Commission the Democratic administration has been exercising a form of censorship and have been appropriating the radio to promote their interests with the result that the Democrats have had unlimited use of the networks to the exclusion of the Republicans. The Herald- Tribune articles resulted from the Commission calling upon Ogden Reid, editor of the Herald- Tribune to submit "any facts or other material" in support of an editorial assert¬ ing that "the radio, controlled by the Administration, through its licensing power, was made spokesman of the New Deal and largely restricted to Government propaganda." Mr. Reid replied, declining to render an account concerning the editorial "which expressed our reasoned and sincere conviction. " Senator Schall, Republican, of Minnesota, introduced a resolution for the appointment of a committee to hear the evidence of the Herald- Tribune on the question of censorship by the Commis¬ sion. It was allowed to die in committee. Senator Dickinson, Republican, of Iowa, also offered a resolution to investigate the Chicago Tribune charges of censorship, and Senator Huey Long, of Louisiana, introduced a supplemental resolution, but neither one passed. One of the assertions made in the Herald- Tribune article, was that one government agency alone - the N.R.A. - has estimated that, had it been obliged to pay normal commercial rates for all the time that has been given free by broadcasting stations to its speakers, the bill by now would amount to at least $2, 000, 000, a fourth of which would be due to the two networks. Even now, the article declares, few are the Republicans who share the sound waves with Administration spokesmen. "The tendency of the radio broadcasting industry to serve as hand-maiden and drummer boy to whatever administration happens to be in power in Washington was strengthened last week with the passage, by Congress of the Communications Bill", one of the Herald- Tribune articles reads. "It tightens, in peace time, the hold which the Government has upon the air and authorizes the government to take over the radio altogether in the event of war. "There have been countless protests against the indirect censorship which the Administration exercises over radio programs. 9 ■ to-- [A - ■ ' ' ' " ■ [ I ■ ' ■ ■ ' ■ . ’ hi ' tlscf ion * ■ . ■ ' \ ■ -:’j 0‘TO tf t : r , : ' ’ . i . : , ■ . • «, - ■ . ■ ' - ("l - . . - ■ : ' ' '■ ttoJtai • a : :■ X : . ' '■ ' : v : . ' " . ick . . • ■ - ; • ■ ■ • . . ; r.,., ., r . Los -• : .. ... ... I ■. . o - Q'c.-x-: .. -o ' ri > « - b - ry- ■ -■ :• ! - Jj IJOO .Jo ■' L c , . . o . ,, . . ; ‘ ' • ' ’ • ■ • • •- ' > i • r ' ■ • * ' . , - ’ . . i_ • - . 1 . .1 v>. J .• i p,,:. . J . .. - Okj . , -ii jt . •.> - ,o : o.t • ■ f • ' J ' - : ; ■ ) ..... auc j. ■ • * •ij ‘ ; J 1 J . v O > , V. ’■ JJ - .... ' . . • • : •.'it . , . ¥ r : ■ - - ,• ; 1.1 . ' " . u:ub -■ ; .. tj :U . I ? . o 'lo . - JJ : J .. ■ . o - - ;...v ■ "f*.: t -iU i . 6/22/34 There have been hundreds of howls complaining that what is a heap¬ ing bowl of sauce for the goose is dished out only in thimbles to the gander in opposition. But these cries have been bootless* "The compliant Congress proceeded to embrace in the new legislation almost the whole of the Radio Act of 1927. And it added a few new clauses giving the government an even stronger grip on radio, which the government controls through the licens¬ ing of stations and the power of the Federal Radio Commission to revoke a license whenever it deems that a broadcaster has failed to serve ’public interest, convenience and necessity.1 "With control over telephone and telegraph communica¬ tions thrown in for good measure, the new legislation supplants the present five-man Federal Radio Commission with a seven-member board to be known as the Federal Communications Commission, "Should the Senate adjourn before receiving from the White House the names of the seven whom President Roosevelt may decide to name to the board, recess appointments would be in order. In that case the seven men given the power of life and death over radio stations will be beholden, for their $10,000 a year jobs, between their appointment and the convening of Congress next January, to the Administration alone. During that interim the country will have the biennial campaign for Congressional seats, with politics popping into many a broadcast speech." Referring to Herbert L. Pettey, Secretary of the Radio Commission, the Herald- Tribune says: "After Mr. Pettey had entered upon his duties with the Federal Radio Commission, Mr. Farley, as Chairman of the Democratic National Committee, notified the broadcasting companies, all Cabinet members and others that the only person authorized to represent the Democratic National Committee in radio matters was Mr. Pettey. Thus, the ruling party’s ’contact man' with the broadcasting companies is the Secretary of the Federal Commission which holds the power of life and death over every broadcasting station in the land. That is something new, even for Washington. If the Secretary of the Interstate Commerce Commission were named by the Democratic National Committee to ask free passes for politicians on the railroads, the case would be analagous - and the secretary would get the sack for breaking the law. " XXXXXXXXX 10 - Cw ' : r . •' : all em l ' ■ ' - ' & . . . ■ ma U . . ■ ; . - , . . ' . 3 ' ? . : ■ ' • ' ' - , .• . ■ ■ ' - • - • • *" ' . _ • - . . . t _ ' ■ is . it 0. oibf - . . . ' . £ f t '■ . : ■ . Cfl iw. H ' C' 3 X ■ • ■ a ; - 9 . .fi ■- . , ' ? > ::vw rr ■u,0 il ,19.- Tic j:; 0’ blOS jiioD ;o ■■■•. 3 ■ ; ■ . ' . ■ ■ - . C T . " Z ■ - ■ ' ■ • $ .! $ | . jjhpS’d’ioH ■••••.< • ■ . ' > : ?; l . : i ' 6 ■ . - • ■ .. ; tfytiSb SMM ' ■ ; ■ : ' ■ ■ . • 'V £ 3E1T0I I • ■ - ■ • fnl • ■ >•’ . • o / ' xooisaG 9/U V1 ■ P,r -:Hi$ w Vi r-.J ; ■ | ■ OW ■' y , : ’ Y r; V ox 6/22/34 l BUSINESS LETTER NOTES F. P. Guthrie, District Manager of the Radio Corporation of America in Washington, successfully passed an examination at the Radio Commission for an amateur radio operator’ s license. The following stations, among others, have asked for increases in watts: WOR, Bamberger Broadcasting Service, Inc., Newark, N.J. modification of C.P. for 50 kilowatts to make changes in antenna system; WRC, National Broadcasting Co., Inc., Washington, D. C. , modification of license to increase power from 500 watts to 500 watts night, 1 kilowatt daytime; WHEC, WHEC, Inc. , Rochester, N. Y. , modification of license to increase power from 500 watts to 500 watts night, 1 kilowatt daytime; WMCA, Knickerbocker Broad¬ casting Co. , Inc. , New York, N. Y. , modification of license to increase power from 500 watts to 500 watts night, 1 kilowatt daytime; WSPD , Toledo Broadcasting Co. , Toledo, Ohio, C.P. to install new equipment and increase power from 1 KW to 1 KW night, 2i KW - day. A hearing has been set for next Thursday, June 28, for WEAN, Shepard Broadcasting Service, Inc., Providence, R. I., for modification of license and to increase power from 250 watts to 500 watts unlimited time. At this writing, approximately 500 questionnaires have been received by the Radio Code Authority with respect to free broadcast performances. These have not yet been tabulated but it is expected that they will be in the near future and reports will be available to all interested parties. Only two stations of those returning questionnaires thus far, charge admission, * namely WLS, Chicago and WSGN, Birmingham, Ala. In the radio shack of the settlement at Little America, Clay Bailey tunes up his apparatus and makes contact with Mackay radio stations at New York, Buenos Aires and San Francisco, according to the New York Times, and J. N. Dyer and Guy Hutcheson are building new radio equipment for the trail parties, and in the generator shack Armory Waite is overhauling the machines. It is the dead of Winter for the expedition. XXXXXXXXX 11 6/22/34 DECISIONS OF THE FEDERAL RADIO COMISSION Applications Granted (June 22, 1934) WOW , Woodmen of the World Life Ins. Assn. , Omaha, Neb. , C.P. to move transmitter to new site, make changes in equipment and increase day power from 1 KW to 2|- KW; KGBZ, KGBZ Broadcast¬ ing Co., York, Neb., C.P. to make changes in equipment and increase day power to 2-| KW LS; application to increase night power from 500 watts to 1 KW set for hearing; WHEC . WHEC, Inc., Rochester, N. Y. , modification of license to increase day power from 500 w. to 1 KW; WRAK, WRAK, Inc., Williamsport, Pa., C.P. to move transmitter locally in Williamsport; WTOC , Savannah Broadcasting Co., Inc., Savannah, Ga. , C.P. to install temporary Composite DCC-Max. 100 watt transmitter, for period of 30 days pending completion of new permanent transmitter; WJBC , Kaskaskia Broadcasting Co., LaSalle, Ill., C.P. to move transmitter to Normal, Ill., and studio to Wesleyan College Campus, Bloomington, Ill. Also, WWAE , Hammond- Calumet Broadcasting Corp. , Hammond, Ind. , and KVL, KVL, Inc., Seattle, Wash., C.P. to make changes in equipment; WHDL . Tupper Lake Broadcasting Co., Inc., Tupper Lake, N. Y. license covering local move of transmitter and studio, 1420 kc. 100 w. , daytime; WJJD , WJJD, Inc., Mooseheart, Ill., li¬ cense covering installation of new equipment, 1130 kc. , 20 KWf limited time; WOR, Bamberger Broadcasting Corp., Kosciusko, Miss., modification of C.P. to make changes in equipment and extend com¬ mencement date to within 10 days of grant of this and completion date to 60 days from date; WAAB , Bay State Broadcasting Corp. , Boston, Mass. , modification of license to use the transmitter of Station WNAC; WRAX, WRAX Broadcasting Co., Philadelphia, Pa., special temporary authority to operate station without approved frequency monitor for period July 2 to Aug. 1, 1934. Action On Examiners 1 Reports WJBW. Charles C. Carlson, New Orleans, La„ , denied modification of license from sharing time equally with WBBX to unlimited, 1200 kc. , 100 watts (facilities of WBBX), Examiner Walker sustained; WBBX, Samuel D. Reeks, New Orleans, La., grant¬ ed consent to voluntary assignment of license to Coliseum Place Baptist Church, and granted renewTal of license, 1200 kc. , 100 watts, shares equally with WJBW, Examiner R. L. Walker reversed; KFYO, T. E. Kirksey, d/b as Kirksey Bros. , Lubbock, Texas, granted renewal of license 1310 kc. , 100 watts night, 250 watts day, unlimited time, sustaining Examiner Hill; Pittsburgh Radio Supply House, G-reensburg, Pa., granted C.P. for new station to operate on 620 kc. , 250 watts, daytime hours (7 A. M. to local sunset, sustaining Examiner R. L. Walker. XXXXXXXXX 12 - at . . . ■ . i ; . ; r no; r ..... LVjV:\4 i f ■' tr ~ ■ r . J ; 3i o s:£ 2S0S | Q , ' . -a ■ ' . £*?>./(■ ■ j.i ' ■,.... .. . ' : . s .. . :. o* ood ■ x . nil , • . ■■ . . r& /r ■ & *.,o/ F ,..oy: .jaIJs .■.ojbno*i€f •V, . v vC 0:; ; .. ■ ■ i 3 o ' ' : v si . .; v/en jio .n'Ol,"! »iqiJioo aaXJXaeq ' . ' • * '■ 1 - - •' / • 22 ■■ ' . . *D t ,r£ • • >.'W U * < •. • V W; « -*r' 1 I.r-5 .V,U 0 4. 1 n* 1 J » ^ '-X s , Rdo .... u I o,; , - •• ' A; . ; . . »0i ... 1 < i t .. .CXI < v.1..'. '4\ jfS .. • ‘'Uit t -rv;< v>: - -J- w Ci . , . • . .. /; £\a,6 . •:■■. .> : •; -v: . - TO j . ; • nr OGX *o$ 0&&I V . .X- ; to 0> r . : 3 : N • i u; . . . • . .qTCo’r - ■ i . IA . ; a \ C $ iff. 03 - . , - .■ . . . . . . ' , • C ■ ' ' ' • • . - ■: ■' .-. ' . as .. . ■ . . ; ■ . 1 , r : ...n.r.5.o;.i ' . . . v j •' . i . e o n . fa . ^ ; ■ _ ■ ^ ' '' - QOX , . . . . ^ ‘ - 1 - ; ' • ■ 1 ■■ - ' • ■ '• . ' ' . ; ■ V . ■ ; ' : • ' . : 500 ’’ ,iij v - U . : • X . a ; ' . 0 0' § ■ ■. ; i- ./ ...C-' J8.W3 X X X X _ ' X X ' - SI Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL — Not for Publication INDEX TO ISSUE OF JUNE 26, 1934. Would Reallocate Radio By Congressional Districts . 2 Communications Commission Appointees Still Unknown . 3 Improved Conditions G-ive Stimulus To Radio In Ecuador. Ford Short-Wave Stations Criticized . Senator Schall Scores New NRA Organ, "The Blue Eagle" . 5 Russians Call Radio "Lightning" . *6 Southern Pine For G-erman Radio Towers . 7 Goat Gland Expert Files For Governor . 7 A. F.A. Convention Opened By Kobak of NBC . 8 ASCAP Royalty For 2d Quarter Around $700,000 . 9 Business Letter Notes . 10 Mackay Radio Domestic Point-to-Point For Marine Journals . 11 New And Renewed NBC Accounts . 12 * No. 735 1 V 1 ■ - < ‘ . • June 26, 1934 WOULD REALLOCATE RADIO BY CONGRESSIONAL DISTRICTS Representative Tom Blanton, Democrat, House stormy petrel, apparently expects to turn his attention to radio. "We have not been able to do it in this session, but I am hopeful that the next Congress will fairly and justly reallocate wave lengths, channels, and power so that broadcasting stations may be granted to and equitably distributed throughout the various districts of the United States", Mr. Blanton declared. "Due consideration must be given to each Congressional district. Under the present system the big cities have gobbled up all of the important stations, wave lengths, channels, and power. "I thought Dr. Brinkley had all the power", Representa¬ tive Willford, of Iowa, interjected. "He has more than 15 Congressional districts in Texas all put together. But his station is just across the Rio Grande River in Mexico", Mr. Blanton replied. (Editor1 s Note: The Mexican Government closed Brinkley's station about three months ago but evidently this fact was unknown to the Texas Congressman). "Does not the gentleman realize that a revision of existing radio laws in the next Congress, desirable as it may be, will be precluded if we enact a new radio lav; by accepting the Communications Bill conference report?" Representative Lehlbach, of New Jersey, inquired. "Nothing will be precluded, and everything will be pos¬ sible, if a majority of the Members of this House in the next Congress set their heads and concertedly work together, with a determined purpose to fairly and justly distribute and /Itllocate stations, wave lengths, channels, and power. All obstacles can be overcome, and anything they want done can be done by a deter¬ mined majority", Mr. Blanton replied. "Some of the big monopoly controlled radio stations persecute men in public life, whose actions they cannot control, just as monopoly controlled newspapers persecute them. If it were not for the Congressional Record, the big radio and the big press could ruin any man in Congress. They could misrepresent his every act. Were it not for the Congressional Record, the big press would defeat and put out of Congress every man it could not control, and you would then have a Congress of serfs, irresponsive in every way to the interests of the people." X X X X X X - 2 - ( hJ • V /H lAii : . • mo , q \ji: 'oJ- uoH KJi , . . ■ , v:: © - -v" •*- !. o4 no" X . ‘ *2 •. ■ : , ; q • r ■■ 1/ ^ ■ * r • ■ >■ i . i '1 or? "■ • • . 1 .l »“ • oqoxl ms 10 £ -_• ; . J--. ■1 “ 03 ‘i? ' . v . ’ ■ ■ .ft ' ; XtJ 8 l ■ • • • • 0,? &d Yjm si , -u S ■ cJ. ’ • zV • . • . f •?■ 0 h-: • o.' I ■ • ■ H. mi Jboiu'O ■ i "/ ;> -i 1 j : . ' Jr. ' HO . : . ' . ' : . ; O' It nowoq bii •’ 1 jus ' ► 1 ; * . ■ ... -I o i ■ iC-lXl ■ • v fn - f • > X 4\- 1 :: 'v.te 11 l '-0 ' . •' .... i ■ c 0 ■! OS 4-3 . vU . i t£ ; :: , ole u : .1 :• * ■ . V ' r.v . . i • ■ • , j "i ; non ■ /ids jno'.'i ;i no 14 ■j ' 1 v f .. 3 . . ..6 h ■ . ■cto ra L:, . of) a fr (Job •O',: V .•to Hole s- : - s [ • O ': • J. 1> ■■ .11 aim: nq £ ' ' ' . ! , ' ’ ' ' be »• .. K : li .. ' ; £1 ■. ■ i • ' ■ ■ ' ‘ ■ . .... ■ • . A •• . • 11 A ■ •' > / X*' f. *. O.tl . ■ ’ . :r .oil ' :J d O • nc _ ssOiiw ' • ' : • .. ' _ ■' . . ■ ■ • ,l.i ^ .... i : i a\-.pui , to a . ’ ■ : : - . q : • ■ ' ■ on 41 c '-.t.n o J.uq jjna Ji 9 • ' srfj t 4 - .. • . lu a e ■ ■ . . . .... tXo*t4xi • . I ' ■ 6/26/34 COMMUNICATIONS COMMISSION APPOINTEES STILL UNKNOWN It seems to be the general impression that President Roosevelt is to name the appointees of the new Federal Communica¬ tions Commission tomorrow (Wednesday). He just arrived back in Washington this (Tuesday) morning and has a great many matters to finish up before Saturday when he sails for Hawaii and other point"’. Washington has just about outguessed itself and gotten nowhere in the matter of whom the new Commissioners will be. Almost everything has been heard in this connection, one person declaring that the present Radio Commission, with the exception of Judge Sukes would be wiped out, and another that the entire Commission would be changed and new faces be seen all around. We still feel that Judge Sykes is to be named Chairman of the new Commission and understand that places have been offered to Homer Hoch, member of the Kansas State Utilities Commission and former Republican Congressman; to Milo R. Maltbie, Chairman of the New York State Public Service Commission, foe of the telephone companies, but who, it is believed, will not be willing to give up his $17,000 a year position to accept a $10,000 appointment in the Government; and to Capt. S. C. Cooper, Chief of Naval Communica¬ tions, It is essential that only four of the new group of seven to be appointed be members of the same party, which means that doubtless four Democrats will be named and three Republicans. It is also pretty well understood that Herbert L. Pettey is to be appointed Secretary of the new Commission, pinch-hitting as Commissioner for Representative Prall until his Congressional term of office expires on January 1st. Whether the present Com¬ missioners Thad Brown, Vice-Chairman of the Radio Commission, and Harold Lafount will make up the balance of the Commission is a question, but it seems to be the impression of some that they will. Others seem to feel that Dr. Irvin Stewart of the State Department in charge of radio matters there, or former Representa¬ tive John E. Nelson (R) , who served for years on the House Inter¬ state Commerce Committee, may be named to the new Commission. This week will, however, probably put an end to all guess-work and supposition for the new Commission comes into being July 1st, the old Radio Commission expiring on June 30th. XXXXXXXX - 3 - ' • ' ' ru . ■ . ■ . ' . £ ' : ' f Ft x?i ■ ■ ' ' G ' • .■ . • " : ' " ; ; . . • ; ' ' ' ' . i-d •/• Q> l STSH &*!•» k . • I ■ - ■ i . . . ■ , . ■ ; i • • (OXi »' . . - aq ' ; $ - ; ■ . . . . . . [OOs S .• • : ■ ■ ;/C ; t. id r< t l ■ ■' v ?.& • ’ 0A . S.ln'iCAqS OCi Ou ' JL / 3i‘- ■■ "} i • •- -V - A. . • - ■ • - . - • ... . - • / ? T U, J . ? -f T la ,[!■. ' . . . : riJ •Jo 00 3& ' pr.f » {■ . ~ J . ; ; ; . ;'i ■Cl Cj l. y A -vO ' . • tf)0 c r* ) •X’ -V A . ■ : . ,!« A. .1 . rjoX 6 00 I iiC- .S£l X 4 uc ■ • ■ . ut - A C« JL no i ) ■’ yiaid „i • .; : •: -i p , xAotO .Xijtw • J:- A) an oibr '10 r .. u <(H) • ' . .. ’u: ■ T> ov r t l.t u. : ' ■ .•••• o . X X A . ' . noi J Is OC; /'"A - ' .7 x-x«XcoJ£> noa tO IMPROVED CONDITIONS GIVE STIMULUS TO RADIO IN ECUADOR Improved, economic conditions in Ecuador, together with the decline in prices of receiving sets, is resulting in a rapid expansion of radion in that country, according to a report from Vice Consul F. L. Hoyt, Guayaquil. Imports of receiving sets into the Republic during 1933, the report shows, totalled 421 units compared with approximately 300 units in 1932 and only 150 units in 1931. The volume of imports for the first quarter of the current year has shown a marked upward trend which, it is believed locally, will probably be sustained throughout the whole of 1934. It is estimated that total imports in the current year will approximate 800 units. The five and six tube table models, the report shows, dominate the market in Ecuador. However, it is pointed out, cabinet models enjoy a larger demand than one would be inclined to expect, probably because the attractiveness of the American manufactured furniture is an important feature in creating the preference. Referring to local broadcasting facilities, the report states that the quality of programs has been steadily improving with the result that local stations are decidedly more popular with radio fans than foreign stations. This fact, together with the fact that these stations transmit on several wave lengths, has increased the market for cheaper types of receivers. A new, powerful station using the latest type equipment, has recently been inaugurated in Guayaquil. Approximately 95 per cent of the radio receivers in use in Ecuador are American makes, the report shows. XXXXXXXX FORD SHORT-WAVE STATIONS CRITICIZED Ralph L. Walker, an Examiner, recommended to the Federal Radio Commission last week that it refuse to renew licenses for three short-wave broadcasting stations operated by the Fort Motor Co. Commission officials said that the company had been granted licenses for two stations at Dearborn, Mich., and one at Lansing for experimental purposes. Walker reported the stations had been used to direct Ford vessels on the Great Lakes and for experimenting with aircraft communication. An official of the Commission, asserting the policy of the Commission was to confine short-wave licenses to stations that "contributed something" to radio as a whole, said the present body would not rule finally on the licenses. The new Communications Commission will take office July 1st and the Ford Co. has 15 days in which to request an oral argument on the Examiner’ s report. X X X X X X X 4 - a: : : ' a •’ £ -ir :? y: ... • ' ■ j •; •lyxiv.i 930 .t ■ JCTi l - • 1 ( >. r :■ 1 1 y; : ,tn.; ■. ok f»J . • - . ‘ - ' 11 : • . ' ■■ . " i i ' ■ . -■ 1 • ■■ ' : X J i J . . aJt ■ I ■ )08 • ; ' . . -s v '■ ■ 'lii.or 1 5 a .[ 'x ' * !•» /:!) uX 'JT-ud'- 'Jtf ] - 1 , * -> ' ■ , ... ,-V ; •. ! • . • ■ . ' . > ;• ■ arid ,a . . . TV . ' •' j r-/yl. h nts.r'O’ ii-,' -- UC V . , • ■ ; ' ; ' .. ' • I ' • ... 1 V t 3 »< ; 3 : r-i . ■ - ■- . . 92 t • , !; ,v . j. iv Od':: 0: ' • y { V . ‘ - * a.j. *'/C :J .1 ;r ,.r.r:-, .. m- • IJ "5 1 1 no i : '0 r > OK •: ■ • :'r. K •..OJr. . ■ l, Up v'l. ■ . ■ ■ : id : ' . 1. .. ■ ■ ••• : ■ ■:>. ' ■ blOl : ‘ . " l . ■ . 6/26/34 SENATOR SCHALL SCORES NEW NRA ORGAN, "THE BLUE EAGLE" The use of Government funds for publication of the new NRA organ, "The Blue Eagle", was scored by Senator Thomas D. Schall, Republican, of Minnesota, in a statement issued in Washington yesterday. "‘The Blue Eagle*, published under the editorship of ’Crackdown’ Johnson, is a misleading propaganda sheet issued in the interest of the Democratic party and paid for by the tax¬ payers of the United States", Senator Schall declared. "It has been obvious for many months that in his zeal for complete dictatorship, the President, as evidenced by the Dill-Rayburn communications measure, written by his corps of college boys, is seeking censorship of the press and radio. But until the time comes when his hand controlled majority in Congress is able to secure the passage of this drastic, un- American censorship measure, his administration hopes to have a mouthpiece of its own and make the overburdened taxpayers of the nation foot the bill, just as he has made them foot every other bill. "The first two issues of the Blue Eagle have been devot ed to a defense of the NRA (God knows it needs defending), but according to my information it is planned to later make this publication a daily and it will contain all of the exclusive news of the Government agencies, making publication of such news in the legitimate daily newspapers secondary. "Oh, those college boys have great plans ahead, but before the more radical plans can be put into effect, they find it necessary to control the press and the airways of the nation. They propose to accomplish this through enactment by Congress of the damnable communications bill, one of the most un-Constitution al measures ever proposed in the national legislature. "Such tactics as the Administration has used and is using to scrap the Constitution are outrageous and should and will result in complete repudiation at the hands of the wise American electorate. "If only the Tugwells and others of his stripe would carry out the sound advice of H. L. Mencken and go back to their colleges and teach their students to ’hate their fathers', America would be truely grateful. XXXXXXXXX - 5 - it RUSSIANS CALL RADIO "LIGHTNING" Manufacturers and distributors will not make a grand rush for the Russian radio market if they read (and they should do so) "Red Thunder", by Roy S. Durstine, just published. Likewise manufacturers in most every other industry will also watch their step. There seems to be two characteristics of things written about Russia, one that it may be propaganda., and another that it is usually ponderous and difficult to read. Neither is true of QRed Thunder", which is as honest and frank in its presentation and as the friends of the author know him to be, and is written in such an entertaining style that the book almost reads itself. Mr. Durstine, a nationally known advertising man, who has supervised many successful radio programs, has been very casual in his references either to advertising or to radio. The author has taken great care not to express an opinion or a conclusion but contents himself with telling what he actually saw, just as he used to do as a good reporter on the old New York Sun. Never¬ theless, reading between the lines, one gets present-day impres¬ sions of Russia which impress the reader far more than any editorial. Mr. Durstine' s only reference to radio in Russia, is the following: "The Russians are simple in so many ways, like mediaeval children waking and rubbing their eyes. "What is the quickest way to send this telegram?" a visitor asks. "You send it by lightning", is the answer. 'Lightning' is their word for radio." Although the caption of the book is obviously Russian, Mr. Durstine also tells what he saw in Germany and Austria. One chapter, which gives especial food for thought, is entitled "Heat Lightning Over Europe." Mr. Durstine noted the fact that when Hitler spoke in Berlin, not only 20,000 persons heard him where the speaking actually took place, but in 65 other centers of the city loud speakers were placed from which 10,000 more heard his speech. "A reason for Hitler's popularity is his gift of oratory", Mr. Durstine writes. "The radio amplifies that power so that in Europe today, it is considered a weapon mightier than guns." Again Mr. Durstine observes: "In Germany the newspapers, the magazines, the radio, the movies, books, schools, universi¬ ties, the theatre and the pulpit come under the supervision of the Propaganda Ministry. It is just as sweeping, and what is more, it is labeled Propaganda. " "Red Thunder" is published by Charles Scribner's Sons, of New York, and the price is $2.00. 6 xxxxxxxx R.D.H 6/26/34 SOUTHERN PINE FOR GERMAN RADIO TOWERS German radio towers higher than 160 feet will continue to be built of Southern Pine, according to advices received by the Department of Commerce from the American Consul at Hamburg. The American wood was selected because comparison with European, heretofore used for the purpose, showed it to have superior strengthening properties and longer life. These wooden radio towers, which in Germany have been built to a heighth of 628 feet, are made possible by the use of modern timber connectors. They are several types, chiefly the alligator and split-ring, which by being embedded in two connect¬ ing pieces of wood around the bolt, strengthen the connections up to 8 times the strength of the ordinary bolt joint. This method of construction was introduced in America through joint efforts of the Department of Commerce and Agricul¬ ture. Timber connectors in this country are handled by the Timber Engineering Corporation, which works in close collabora¬ tion with National Lumber Manufacturers' Association and the American Forest Products Industries. XXXXXXXXX GOAT GLAND EXPERT FILES FOR GOVERNOR Dr. John R. Brinkley, "goat gland" specialist and twice an unsuccessful independent gubernatorial candidate, last week filed for the Republican nomination, but said he did not intend to make a campaign. Dr. Brinkley asserted he had permitted his name to be entered for the sole purpose of settling the question of his party affiliation. "If I had not filed the campaign would have been a droll affair", he said in a statement at Del Rio, Texas, shortly after his name was filed at Topeka, Kansas. Dr. Brinkley's radio station was closed down in Kansas by the Federal Radio Commission, and three or four months ago, the Mexican Government ordered his station closed down in their country where he was operating a powerful station capable of reaching a large coverage in the United States. X X X X X X X - 7 - ' Xxyxv r . V- • .■ . . 33 i r . ■' V l. . \\f <: h ■••■. X \ ;■ f i . ■ o ■ ■ • K . - ... li . : \ &001 fl i| .'■■■' _ • . , . ,,* oi ■ •' ■ . Y .■ '<'■:* . . • . . ■ : s . . . . • - \Sj - „ '• i o 3 . Yv': "to " i. ... o.y '• . ' lloirii ■ / . ' fl 8 fiXSC .. • ; 3 ifllS 3fll$ . I . . o y i ' - s £q i ■ t - ■ . . ■/ •• • ' '. : . • : ' : 100 1 : 5 ■ ■ : ■ , . ■ • . • - • ; " — .. ■ ;i •. \ jb ■ ‘i " ' X ; : " v X X X;. . <■ i . * ■> - ■ • | . isf\ - . . e . ■. • - . . .. • ■ _ a Aae ; ' : • , ■■■ • - :. ... '• - . j ,.r- .. . ■ qo? ;; f n ; ; ' , X ’ *X0 mob i. . l iii ■A . .‘ BY , . /v. .t Q't ■" Hu ,-;d ti3 : •: ‘ S- . . - . A, F. A. CONVENTION OPENED BY KOBAK OF NBC The Advertising Federation of America which held its convention in New York last week, was presided over for the first time by a radio man - Edgar Kobak, President of the A. F.A. and Vice-President in charge of Sales for the National Broadcasting Company. In his opening address, Mr. Kobak, among other things, stated that he did not believe the criticism leveled at the industry was meant for more than five per cent of the total. In this percentage of "off-color" advertising, radio programs as well as magazine, outdoor and direct mail advertising was included. Proposals for a "radio A. B.C." are at a standstill for the present, according to Arthur Church, of the Midland Broad¬ casting Co., Kansas City, who presided over a meeting of the commercial section of the National Association of Broadcasters. The printed program called for a "Discussion by representative of the American Association of Advertising Agencies on subject of a cooperative bureau for the study of station coverage and listener interest", but this was dropped, according to Mr. Churc , because the Four-A did not feel ready to offer a definite plan. The meeting found plenty of material for debate in the question of measuring the number of radio listeners, with the argument indicating that the broadcasters themselves are nowhere near agreement on how far they are ready to go. Some speakers thought the advertisers are entitled to fullest information pos¬ sible about the number of listeners actually tuned in on specific programs. Others retorted that the Audit Bureau of Circulations does not attempt to report the number of persons who read any specific advertisement, and that a radio station is doing enough if it studies the territory in which its broadcasts can be heard if the listeners want to tune in. Mr. Walter J. Damm, manager of Station WTMJ, owned by the Milwaukee Journal , read a paper describing a study of listen¬ ing habits made by WTMJ through 10,032 telephone calls and 8,001 personal visits, in which only two questions were asked: "Is your radio set turned on now?" and "To what station?" This method he held far better than surveys depending on memory or opinion of the listeners questions as does the Crossley survey upon which principal advertisers and agencies have depended thus far, incidentally. "Because of the many methods used and the fundamental misapplication of some of the principles followed", Mr. Damm said, "it may even be that many surveys are actually misleading. The radio industry is beginning to realize that stations must give reliable information comparable to that provided by other advert ing media, and that stations must be honest in publishing their findings. Representatives of other stations were quick to disagree among them Martin B. Manning, General Manager of Station WFAA, Dallas, and Walter J. Neff, of WOR, Newark, N. J. - 8 - ' - H'J C ■; - _ V : ■ - . -.'rv • . : 03 . • i • . ' ' ■ X, sn • v -V ■ _ i-Si" .. * '9 ■* . r 0.;c ' ' ,*• s.'s'l . . ' £• •; ■ ■, " • ’ * *1. 3 i ■ :. .' vt j 0‘S ' bU CM •I j M i C ,J o • ...b'c ■' : * •J : iA fico,:: - L A ' " *1' V B \Jbu* 3 ■ U SS T d • c • i j "'tc CfC Tb v; CBM • r.il Mb A-'IVCA' s.rfj sa,. cm: :-m . .. cv • - re . •, : ■ J ; 'C J.'.ta&.up ... a 3 ■ c • . . .. tf)fJ . . eollsj c £ ■ ; . & : U ■ Ji&tsi ' TC9d m % •• ■ ■ l ■ 2 ‘ ’ ' • • •. • " . . ■ ■ \ : .. . ■: ' . .. ;i.. j rrrf ■ f-r ■ * ■. . . j -. • 3 r H CM : \ - . ■■ " ' ■ ■ .' • ; ■ ■ ■ ■ , . < . ..; i;'. ' ib'v ; . v . ' , .• ; - ■ ' ■ •; • ‘ C . . : . - ' . . ' . : ■ • ’ ' . » ‘ : ' ‘ ' * ' 6/26/34 The National Broadcasting Company and the Columbia Broadcasting System have been asked to get together with their affiliated stations and work out a set of trade practices that will give the independent operators at least an even break when competing for business. This was made in the form of a resolu¬ tion during the meeting of the commercial section of the NAB in N ew York. The passage of the resolution followed the reading of a report on network- station relations by John F. Patt, of WGrAR, Cleveland. Patt declared that the stations want from their network a sufficiently proportionate share of the money taken in by the web for time on these stations. Station operators, he said, are also of the belief that the webs have no business try¬ ing to represent them in the sale of spot broadcasting time and that they should be content to function as purveyors of hook-up facilities. Appended to Patt’s report was a string of regulation and improvement that advertisers sought in radio. Above all, commercials wanted to be assured that their spot broadcasting programs would not be kicked around on a station just because the network put in a subsequent requisition of the same niche on the schedule. Advertisers, like the webs, insist that spot announcements between two commercial programs be eliminated by the stations and that the broadcasters devote as much time to enlarging their audiences as they do to publicity promotion and dealer and customer contacting. Among other resolutsions passed by the NAB session was one- having to do with standardization of rate card practices and the other with field strength measurements. Conventioners agreed that the units of time sale be one hour, a half-hour, a quarter- hour, five minutes, one minute transcriptions of 100 words, half¬ minute transcriptions of 50 words or less. Resolution on the field strength angle held that the Federal Radio Commission's standards for measuring a station’s primary and secondary coverage be accepted as official for NAB members in view of the fact that no better methods existed. X X X X X X ASCAP ROYALTY FOR 2D QUARTER AROUND $700,000 Royalty plaum of the American Society of Composers, Authors and Publishers for the seoand quarter of 1934 may come to over $700,000, making the distribution among the ASCAP members twice what it was for the April-May-June period of 1933, accordi , to Variety. Collections from radio during the past three months have been over 100$ better than for the parallel stretch last year. Board meets this Thursday (June 28) to allocate the money. X X X X X X X - 9 - 6/26/34 • • .'BUSINESS LETTER NOTES: The American Broadcasting System, of which WMCA is the New York outlet, expects to have at least twenty stations in itr hook-up in the Autumn. Plans call for the network to extend as far West as St. Louis by that time. The Postmaster General’s Department in Holland intends to supply radio-fans with wired wireless. Neither municipalities nor private enterprises do this. The subscribers are to get a choice between four pro¬ grams which they can choose by turning a switch. Distribution is to be via telephone wires. Understanding within the Hearst organization is that contracts have been closed by Westinghouse Electric Mfg. Co. for NBC to operate Station KYW (Chicago) when this station moves to Philadelphia, according to Variety. The Westinghouse-NBC agreement presumably eliminates the Levy Bros, from the KYW picture. A series of special short-wave broadcasts is being sent to the United States each Sunday at 6 P.M. by Station EAQ, in Madrid. It is the first commercial broadcast from overseas spon¬ sored by an American firm. EAQ, operates on a frequency of 9. S’7 megacycles, and is one of the most powerful European short-wave stations being heard clearly and distinctly in most sections of the United States. In order to aid the suffering legitimate theatre, a proposition has been placed before the Czechoslovak Parliament to impose an extra tax on the owners of radio instruments. As there are over 600,000 radio listeners in Czechoslovakia, a considerable sum could be raised through this scheme to aid the regular legitimates. A similar plan has proved a success in aiding unemployed, for in the picture playhouses an extra charge of 20 heller (2.40 cents) is imposed on every admission ticket. XXXXXXXXX 10 6/26/34 MACKAY RADIO DOMESTIC POINT-TO-POINT FOR MARINE JOURNALS Maokay Radio's rapid extension of its radiotelegraph network in the United States is keeping pace with the widespread expansion of its facilities in the marine radio field, and is of interest to shipping men, many of whom follow closely the develop ment of radio. Mackay Radio, then the Federal Telegraph Company, pioneered point-to-point radiotelegraph service in the United States and was operating between the principal cities of the Pacific Coast when the company first made its entry into the marine field in 1914. Until 1929 its service between points within the United States was confined to the Pacific Coast net¬ work, but now is extended to most of the larger cities of the country. After years of steady progress in all phases of radio service, 1929 began for Mackay Radio a period of growth and expansion which lias been going forward continuously since then, and these recent extensions of service indicate that 1934 is probably to be the most active year in this program to date. As a starter to the expansion campaign, Mackay Radio opened a transcontinental service between New York and its entire Pacific Coast network through San Francisco. The powerful marine and point-to-point radio station at Sayville, L. I. operates the Atlantic end of the circuit. Last year, transmitting and receiving stations were constructed at Chicago, New Orleans and Seattle. These cities were added to Mackay Radio's American network, and a second transcontinental circuit was established - New York-Seattle. The network at present interconnects New York, Chicago, San Francisco, Los Angeles, Washington (stations are being erected here to replace, with radio, the present wire connection) Boston, New Orleans, San Diego, Oakland, Seattle, Tacoma and Portland, Oregon, and stations are to be erected at Kansas City and Atlanta, and other cities will be included in the network before long. XXXXXXXXX 11 - - ■ : ' ' ' y-^% ' , ■" - .X .. ‘ - ■ . . ■ ■ .. .. ■ . i ■ o • . ' 'to • ' : ; "... i- ■' ... ; . ' U ■ • . , Jo L .Xu a"‘ ■ ■ ‘ ■ - . . . > scro ks i . ' yV.TJ LVO . ■■ - •: . .. x - . o . ' ■ t» ■ ' ■ . ■ ' . . • • - ■ • ■ : - •;ir: .o ■ ■ - . - . a ■ ■ • • a . s i b l , . ■ ■ ' v . •. • o •Xzo&A , • ©JLstKBlvtA 3 3 •■ ■'7:- 3 . ' * & • -0-0 ■. • is it . • • ,".0. x si - X ", . AC i.XP • • 09 o'. • fon . j n i : 3 J oi. ’ • (<~' .. / ' ... ... . ... ■ 'X-o / . • : 1 ■ ' n . r i $.. ,i tovSsa exT? ■ , o . O.CIS - .. 00£'- . v *• ;• -- r „ rr r>"S - : . T ' Bo 3' .; i ■ o '"O ’ ..fia&Irf'ioS ; J -j S3* j. 1-. r X ]. . . . i i . . ' L o; ■ • 3 ' !• i- Jo 3ns - ::.-3 .o i • : ,,c.noI solod a x x x x x x x x 6/26/34 NBC NEW ACCOUNTS AND RENEWALS NEW - William R. Warner Co. (Sloan's Liniment & Vince Mouthwash), New York City;Agency - Cecil Warwick & Cecil, 230 Park Ave. , New York City; Starts - September 19, 1934; Wednes¬ days, 9; 00-10; 00 P.M. EST; Network - WJZ WBZ WBZA WBAL WMAL WSYR WHAM KDKA WGAR WJR KWK KWCR KSO KOIL WREN KOA KDYL KG-0 KPO KFI KGW KOMO KHQ; Program - Undecided. RENEWAL - Northwestern Yeast Co. (Magic Yeast, Yeast Foam and Yeast Foam Tablets); Chicago, Ill.; Agency - Hays MacFarland & Co., 333 N. Michigan Ave., Chicago, Ill; Starts July 2, 1934; Mondays 8:00-8:30 P.M. EDST; Network - WJZ WBZ WBZA WBAL WHAM KDKA WGAR WJR WLW WLS KWK KWCR WREN KOIL KSO KGO WSYR WMAL WKBF KGO KFI KGW KOMO KHQ, KOA KDYL; Program - "Yeast Foamers" - Musical - Jan Garber1 s Orchestra. NEW - Princess Patt, Ltd. (Face Powder), Chicago, Ill.; Agency - Critchfield and Co., Chicago, Ill.; Starts July 2, 1934; Time Mondays 9:30-10:00 P.M. EDT; Network - WJZ WBZ WBZA WBAL WMAL WSYR WHAM KDKA WGAR WJR WCKY WENR-WLS KWK KWCR KSO KOIL WREN; Program - "Princess Pat Players" - dramatic. NEW - Carleton & Hovey Co. (Father John's Cough Medicine), Lowell, Mass.; Agency - John W. Queen, 5 Park Square, Boston, Mass.; Starts - October 14, 1934; Sundays 2:45-3:00 P.M. EST; Network - WEAF WEEI WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI WMAQ KSD WHO- WO C WOW WDAF WKBF; Program - "Gems of Melody" - musical. NEW - Same Co. and Agency as above; Starting date - October 17, 1934; Time - Wednesdays 7:15-7:45 P.M. EST; Network - WJZ WBZ WBZA WBAL WMAL WSYR WHAM KDKA WGAR WJR WCKY WENR-WLS KWK KWCR KSO KOIL WREN WKBF; Program - "Gems of Melody" - musical. RENEWAL - Crazy Water Co. (Mineral Crystals), Mineral Wells, Texas; Agency -Bowman & Crane, Inc. , New York City; Starts - June 6, 1934; Time - Wed., Fri. , 12:00-12:15 Noon EDST; Network - WEAF, WEEK WJAR WTAG WCSH WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI WMAQ WOC WHO WOW KOA; Program - "Gene Arnold & Commodores" - Male quartet, Gene Arnold, narrator. RENEWAL - Philip Morris & Co. (Cigarettes), New York City; Agency - The Biow Company, Inc. , 444 Madison Ave. , New York City; Started June 5, 1934; Tuesday 8:00-8:30 P.M. EDST; Network - WEAF WEEI WTIC WJAR WTAG WCSH WFI WFBR WRC 'WGY WBEN WCAE WTAM WWJ WSAI WMAQ KSD WOC WHO WOW WKBF WSM WSB WSMB ; Program - "Leo Reisman and Phil Duey and Soloists". X X X X X X 12 - Heinl Radio Business Letter 2400 CALIFORNIA STREET WASHINGTON, D. C. CONFIDENTIAL - Not for Publication INDE&'TO ISSUE OF JUNE 29, 1934. Radio’s Part In The 1934 Century Of Progress . . Senator Sohall Strikes Again At Press Censorship. . . Radio Continues To Make Progress In Sweden . Contract Awarded For New Navy Radio Test Room . Electronics In The Day’s News . NBC Studio Visitors Cast Votes For Favorite Program Communications Commissioners Not Yet Named . WRC Gets Day Power Increased . Business Letter Notes . Decisions Of The Federal Radio Commission . CD 03 ■ ■ .. .. ' t. .. - • : . RADIO'S PART IN THE 1934 CENTURY OF PROGRESS The 1934 Century of Progress is a Fair of amplifica¬ tion and. illumination. Radio itself is not particularly in evidence but its handmaiden amplification dominates the whole show. The first thing you hear when you enter the gates is the the amplifier music played from one end of the grounds to the other. During your entire stay at the Exposition, you are almost always within ear- shot of one of the 119 emplifiers. They are ornamental affairs mounted on stands at street intersections and other places along with the electric lights and fire alarm boxes. These amplifiers are a marvelous development of the Public Address System. In addition to broadcasting radio and other programs, they are used for emergency announcements. Typical of these were three made in quick succession one evening last week. A message was addressed to a merchant from Wisconsin who was in the Fair Grounds that his store had burned and his advice was needed, and another notified a man from Nebraska that his mother had died. In each case the person addressed was told to call Victory 7700, the Century of Progress switchboard, such and such a branch number, to receive details. Shortly thereafter a notification came through that there was a fire and for all Exposition guards to stand by. Announcements at many individual exhibits were amplified. Henry Ford, who with his great display seems almost to have stolen the 1934 show, in addition to broadcasting the Detroit Symphony concerts over a network, sends it to all parts of his exhibition buildings and ground.s through loud-speakers. Many exhibits which in years past would simply have been displays with pictures, are now, through a system of amplification, "talking exhibits." The largest, and one of the very few, exhibits having to do with radio itself is that of the RCA Victor Company. This occupies 12,000 square feet (is more than a city block long), employs 50 people, and is in the very heart of the Communications Building in the Electric Group. Unquestionably the RCA Victor exhibit is one of the most attractive and best thought out exhibit in the entire exposition. At the entrance in the main lounge is an all-wave dis¬ play using the flags of 12 nations with various types of all-wave sets revolving about them. Sitting in this room visitors are able to hear broadcasts as they come in from foreign countries. 2 b/ yy/ d* In the hall adjoining, the visitors see Victor records manufactured and then can hear them demonstrated. A theatre seating about 100 persons shows moving pictures of the manufacture of radios and phonographs at Camden. A miniature RCA-Radiotron factory employs 21 men and turns out approximately 3,000 tubes a day. There is a complete radio-marine exhibit by R.C.A. Communications, Inc. , showing the part radio plays in saving life at sea. A sinking ship may be seen and the S.O.S. call heard with a Coast Guard vessel going to the rescue. H. M. Winters is the manager of the RCA Victor exhibit and George Clark, Assistant Manager. There is a complete display of aircraft and police radio A machine showing how facsimile photographs are sent by radio is also demonstrated. Likewise a Cathode ray oscillograph shows how a radio set works. At the southern entrance is the Hall of Mirrors containing the NBC exhibit. A transcription by James Wallington tells Fair visitors about the American broadcasting system, how it is financed, and then the mirrors become trans¬ parent one by one, and show symbolic designs representing 20 major industries whose programs are heard over the NBC network. The Columbia Broadcasting System has a lounge for visitor where they learn of the features of the network. Among the other radio exhibits in the Communications Building are the General Electric in the "House of Magic", Stewart- Warner, and the Scott Custom Built Radio. The amateurs of the Chicago area, known as the World* s Fair Radio Amateur Council, have staged a very creditable exhibit in the Travel and Transport Building. Equipment is shown which they have built comprising all types of transmitters and receiv¬ ers. In addition to this, the Chicago amateurs, including 10 clubs with a total of 2,000 membership, put on popular demonstra¬ tions at the Court of Science Theatre. A 20-meter phone transmit¬ ter is wheeled out on the stage. Either the operator calls for somebody to answer or hears somebody and answers him. The audience hears and sees it all. v L. H. Kehm is the manager of the Chicago amateurs* exhibit. Steve Trumbull is in charge of the Fair's radio broad¬ casts. He has 68 pickup facilities in 62 different locations requiring the use of about 500 miles of wire. On the Midway is a theatre which carries a sign - "Television - the Eyes of Radio" at which demonstrations are give being the evidence of television seen on the Fair grounds. XXXXXXXX - 3 - I la ■ ■ > ' .*■ i. ’ . . : •' . ' ■ • • " ' ;‘ V- .. >• ! -• ■' '• . •, ' . ' 3 : V;.v< - r v . ■ J. - . . . • ; ■ ■ ' . . ■ ■ . . ■ : " ■ V. . ' , : •: ■ , -OX , ■■ ■■ , - tlqgiQQ 3 e s • ^ .. . . I* ■ r . * ». , . / cxv : * • xv -k Ok u ' . ■ - t i. I3o ».;i ij ' '■ ‘ .. -■} !. * >i-J ‘ ’ -X , ■ ' • - . : ■. : . . - i • & - 3 • ' yf;.^ i; ..U‘ • •i - r . • • i . ‘ ' . * * O' / .U : , .y • .■0 0 X 6/29/34 SENATOR SCHALL STRIKES AGAIN AT PRESS CENSORSHIP Senator Schall has issued two additional statements to the one of the first part of this week in which he scored the new organ, "The Blue Eagle", of the NRA. These deal with press censorship and are as follows: "General Von Hindenberg says that press censorship in Germany is destroying the country and unless it is removed the nation faces immediate disaster. "President Roosevelt’s determination to censor the press of the United States will produce the same results in this country. The people of the United States must stop him in his fantastic desire to destroy American institutions and the way to do this is to keep the press free. "The Communications Bill which he has just signed gives him the authority to appoint a Commission to investigate radio, telegraph and cable services and 'other forms of communication'. Are we to understand that 'other forms of communication' is to include the United States mail and is our correspondence to be subject to the critical eye of our political Postmaster General? This Administration is determined to gain its object regardless of how it affects the rights of the citizens and it can not establish this dictatorship so long as the telegraph wire, the press, radio and mail is free." The statement issued yesterday (June 28) reads: "The reason for press censorship is becoming more apparent every day. The general rumor in Washington now is that one of the guests on Vincent Astor's yacht with President Roose¬ velt on its secret trip in Florida waters, was Baron Maurice Rochschilds, head of the House of Rothschilds of France. Another supposed participant on this trip was the well known genius of this Administration, Barney Baruch. "If these two men attended conferences in secret with President Roosevelt, what was the purpose? Why were all newspaper men excluded from this trip and why was a list of the partici¬ pants refused? Besides being head of the French banking system, Baron Rothschild is a member of the French Senate and it is need¬ less to say anything concerning the attitude of the French govern¬ ment toward the United States. Its defalcations and financial skull-duggery are well known. Baron Rochschilds has spent eight months in the United States. Half of this time was in Florida waters and the remainder in Washington. " XXXXXXXX - 4 - ' ' ' ' ' ' l P : , • ' ■ : 6 ' ' ^ • ■ 8 ' ' ■ ■ - 3 0 ' SB . ■ . ' . ... . >a;.tooa -rfoxrf ..■■■- . . 3«t .... . : X ■ ■■ -- ■- , . • < ■ - .• • • ■ i r xc ■. J - ■ ' . ' " ■ . . - ■ ; ' ■ 8 ' ' i Bi qo4 e ■ x . to , E ' ■ C ■ v . \ ... f f t $& . ■■ . , , :• : -• xx... x ■ ■' ' ■ ■ . : x : x ' . . ; , t &si a ■ 8, . ■ . . ■ . ‘ . , y ' ;• v X • ■: ' ■; ... ■■ • ■ ' . x ; ?..f. IX: . it : ' ' .. . x ; . . u ..... oJU&s* - u , • 1 1 © x ■ . & . h .... ' ' : . . - . q X ■ . ■■ . • . x ■ ■ • XX9W '©.Cut 13 £1 . ... ■ ' • cfixjq ■ &U91 " ■ i ix; .x i . .. I a b - .. , . fc®< . | ■ ; . t • • . ' X 1 aui ' 1 . b ' f . : . ... ..'XX ■'.'XX . x ' ‘.XX " ; 1 .. ; . o it'X X 'i y. x. x x 6/29/34 RADIO CONTINUES TO MAKE PROGRESS IN SWEDEN Radio broadcasting continued to progress in Sweden dur¬ ing the past calendar year, a report to the Commerce Department from its Stockholm office points out. The number of licensed receiving sets recorded in the country at the end of 1933 was 666,368, an increase of 10 per cent over the figure recorded at the close of 1932. Broadcasting in Sweden, the report reveals, is the exclus¬ ive monopoly of one company which operates under the control of the State. Eleven State-owned broadcasting stations were in operation during 1933 and in addition there were some 20 smaller stations which were broadcasting during the year. Receipts from license fees during 1933 amounted to 6,663,000 crowns, of which 1,829,229 crowns went to the broadcasting company. After deduct¬ ing all expenses, the total profit on radio broadcasting in 1933 amounted to approximately 13,000 crowns. The State program in 1933, with a total of nearly 3,000 hours, consisted of contributions from Stockholm and other stations. Approximately 500 lecturers were employed, including university and high-school faculty members, teachers in various professions, agriculturists, state officials and authors. School radio was developed to a notable degree during the year. In this phase of the lecture work, the report shows, nearly 1500 schools partici¬ pated in 1933 as compared with 300 represented in 1929 when this type of instruction was first inaugurated. XXXXXXXX CONTRACT AWARDED FOR NEW NAVY RADIO TEST ROOM A contract for the construction and mechanical equipment for a new radio test room at the Naval Research Laboratory, Belle¬ vue, D. C. , was awarded this week to the York Ice Company, of Philadelphia, for $23,368. In this structure will be simulated conditions which exist during high altitude flights and in penetrating the strato¬ sphere to study the problems of radio communication at extremely low temperatures and greatly reduced atmospheric pressure. The test room will be an insulated air-tight vault approximately 15 by 20 feet and 10 feet high. It will be equipped with an air conditioning system by means of which it will be pos¬ sible to maintain in the room any desired uniform temperature between 30 degrees below zero and 150 degrees above zero Fahrenheit. XXXXXXXX 5 9. l .■ aaoXo al: • - - isqo - ... . ft * xK. 031 D S 0 - ", : v, J £ 1 . „ . .** >J . ■ X \ ■V ^ . • V i •r ’\ '.31- - • ■ * y. •- ' : o.. o.i .tif; '! •: v K 3 .... ... Q'J J;X a r-.-, . t*Q '*? • • ■ . 0 O O . ) '• i n 0 it ' . * *, -*t ■ . Oil WWW ^ ' : " : ■ S 0 - . • • - - . ' . . io -i A. . .. 1,. 01 r , ?! 6 liJu 0 ol ack* t r * •; . • ' * 0 . • 1 : . ■ . fr,- < r - . P ; •: - or .■■■. - •' in ' : ■ j. ■ . ■ { & ■ . :• . 6/29/34 ELECTRONICS IN THE DAY’S NEWS The above title is the caption of an editorial which appears in the June issue of "Electronics” . "The vitality of the electronic arts - the spread of the uses of electronic tubes in their myriad of applications - the penetration of electronic tools of one kind or another into almost every walk of modern life - are all well illustrated by the fre¬ quency with which news events based on some electronic feature, are reported in the daily press", the article goes on to say. "Usually the electronic aspect is hidden behind some commonplace reference, but the vacuum tube is playing its part, nevertheless. Here, for example, are news items of electronic significance picked up at random during the past few weeks: "The G-ettle kidnapping mystery is solved and the kidnappers apprehended through use of a police microphone, amplifier and recorder. "The Nantucket lightship is run down by a steamer whose navigator followed the radio beam, without picking up the underwater oscillator. "Chicago’s second Century of Progress Exposition is opened by radio by Admiral Byrd from his solitary shack nearest the South Pole. "Newspapers of the Associated Press group contract for picture-transmissi on service by means of facsimile over the telephone lines. "Dr. Morehead of the Reconstruction Hospital, New York, applies photocells and amplifiers to permit totally paralyzed persons to ’handle5 radio, books, etc. "President Roosevelt's Warm Springs Foundation applies photocell self-opening door, for convenience of infantile- paralysis patients. "New York City’s BMT subway installs new air-conditioned electric trains with photo-cells to control lights when trains enter tunnels. "The electron is now a front-page headliner. Electronic tubes are making history daily, - not only in the laboratory and in the experimental plant, but also outside in the affairs of men. " XXXXXXXXX * 6 - . ' b m . n ■ ■ l . s )J 0 1 • : t tt ■ ' ; ■ C ; i . I » . ■!:- ... ■ . ' • c> f? r>< • - t ru v ; ,;o >, gjnon .... . ■ ■ -\:q:.yvL^.d sxU . I • . 5 fcJfc ■ , ' ... V H- *■■■* . ' . .- m ■ ■' . ; . ■ ■ - 11 • tiioa aid • . . j: *j •. . . , ' gj » jXOH fl-liUCS axi,J 3 ' ■-VO . *1 • SOX ' • ■ .... . * - • • :o . ■ ' . . . ... ■ : ' "m:.- ft-* './no.:: o ;• - • 'U . ;• ... • • • :. ' /• . f .1-. ;. r./-j .. : • ■ • ' ■' ■ ' . ■ - jj I ■ Vvi:-: a X X X V 6/29/34 NBC STUDIO VISITORS CAST VOTES FOR FAVORITE PROGRAM Dance music is the overwhelming favorite of the Americ; n radio listener, if the preferences of visitors to the National Broadcasting Company's Radio City studios can be taken as a criterion. During the past few months the NBC has been conducting a survey among its studio guests, and a tabulation of the answers to more than 140,000 individual questions, asked of 17,659 men and women, has just been completed. The results show a striking parallel between the desires expressed by listeners, and the types of programs actually broad¬ cast by the NBC. In most cases the percentages were extremely close. The figures for the six major classifications follow: Type of Program Percentage Requested Percentage Broadcast Dance Music Comedy Skits & Comedians Drama & Mystery Symphonic Music News Broadcasts Variety Shows 27.3 30.4 8.8 7.2 7.1 12.6 6.9 8.3 6.2 1.0 5.2 4.8 These six classifications, according to the expressed desire of listeners, should account for 59.5$ of the broadcasting schedule. Actually, over NBC networks, they account for 64.1$. The remainder of the schedule, according to the votes, should be made up of a wide variety of other material, as in fact it is. Other preferences, representing less than 4$ but more than 2$ of the votes cast, were, in order, military bands, operettas, Hawaiian music, grand opera, choruses and politics. Other choices were scattering. How closely the 17,000 persons questioned may have represented the radio audience as a whole is a matter of conjecture, but the figures are interesting, particularly in parallel. Another survey, along entirely different lines, was con¬ ducted by the NBC at the recent convention of the Advertising Federation of America, through the use of voting machines. Of some 200 members voting, 54.8$ said a studio audience added to their enjoyment of a program; 23.6$ had radios in their cars; 77.6$ had radios in their summer homes or camps; 48.3$ favored the installation of radios in their offices; 56$ had one radio in the home, 31$ had two, and 9$ had three. A new edition of the NBC studio questionnaire is being put out shortly, along somewhat different lines. XXXXXXXX - 7 - . ■ ' : ■ 83 T ' " ... . pa OHl to oil ' ■ >6tH ■ ' . ■ . ■ - 1 ' . t . * ' . . ' ' /.nC-.'lC: ' • v-:i ~ • '■ ..u- ' •' • : : \.. p ' !• ? ' •. to W ..i. .'V::. ..V) ■ ; j . M- * a£ 0 oaeHx ' ■ - - i ' . ‘ • ■ CS . . - stio ■ ■ ®£t , • ‘ atom B.iif 3 1 AriJ ; ' ' ' ' ■ H : ... t ■■ >nox^ 30 . ■ ... a* - . .. .. t .; . (yoi a _ . .... - ; • ... i ■ ■ . . -■ 9Xi . - to • ■ ■ ■ . • Jo J o £ns ■ . ' ' .. . ' . : > ' ‘ .. . ' ' . • . ■;> ... , . ■ ■ - ■ . ■- ■’ oXi ... ■ ox . 6/29/34 COMMUNICATIONS COMMISSIONERS NOT YET NAMED At the White House press conference this (Friday) afternoon, President Roosevelt said that he hoped to announce the members of the new Federal Communications Commission either tomorrow (Saturday) or Sunday. The President hopes to start his trip on Sunday. The latest report seems to be to the effect that Judge Sykes will not be named as Chairman of the new Commission, not because of any real prejudice against him but merely for the reason that the President is understood to feel that he must appoint someone as Chairman who would rule with an "iron hand” in investigating and combatting the telephone companies. It looks now as though Dr. Milo R. Maltbie, Chairman of the New York State Public Service Commission, has perhaps refused an appoint¬ ment on the new Commission, if it was offered to him, as rumored. Former Representative John E. Nelson, Republican, of Maine, who served for years on the House Interstate Commerce Com¬ mittee, former Representative Homer Hoch, also a Republican, and at present a member of the Kansas State Utilities Commission, and Capt. S. C. Hooper, Chief of Naval Communications, continue to be considered likely prospects among a group of about 100 names which it is understood the President has had to mull over. This large list of persons recommended for Commissioners is probably one reason why no announcement has yet been made as to whom the appointees are to be. Another reason for the delay is that doubtless places have been offered to several who have not accepted, thus necessitating selecting others, all of which has resulted in much loss of time. It is felt that the President is going to take care of Representative Prall by having Herbert L. Pettey, act as Secretary Commissioner until January 1st when Prall will be able to take up the rains himself, his Congressional career being finished. XXXXXXXXXX WRC GETS DAY POWER INCREASED Station WRC, owned by the National Broadcasting Co. , of Washington, D. C. , was today granted a modification of license to increase its day power from 500 watts to 1 KW. XXXXXXXXX - 8 - -1- t- - ' ; ■' . : > tl ' no q/T-v ?. ■ i ■ ■ ' ' ‘ ! ' . S ... , . ' . ■ i. ■' 1 : BXLn • LM 0\7 '.'.is • B£ >nCv . 03 ,1 C'T-T j; r. ' ?: "• ’ , r ' ' . : iqadiQc i • • '■ FO . :S «| 9 ' ' • : - ‘ . ■ ; glioma- . - ■ - ... s ’ v - SY - ^ 'TCrn ...JJC ;; 3 Gfl y/J/- J TQ; OHO ylOfitfO :<• . • . . t noi o e f ■ ■ . ' • ' 1 ' ■ ■ • - ..... . ; $1 ■ j £ , fc - . 0 . zb >■. Xsi la V : ■ a 3 W .. • Cl . Xv.i-KaX/i 8r,i:»vi exU — - n.', :* .±i it on z y ::X,-cw a aw , .0 .Cl . ••o.taaixfe.M? lo < - ■ ■ ' . Q v : . • x:. i : :■ ■ - 8 6/29/34 BUSINESS LETTER NOTES: Ralph Atlass has received permission from the Federal Radio Commission to move the studios of Station WJJD from Moose- heart, Ill. to Chicago. This permission was granted some time ago but its carrying out was protested by NBC and Station WGN, Chicago. “Amos 1 n* Andy", otherwise known as Freeman Gosden and Charles Correll, visited their old stamping grounds at Muskegon, Mich, and White Lake last week-end aboard Eugene F. McDonald’s yacht, "Mizpah. " Mr. and Mrs. Correll will leave for an Atlantic cruise on the Leviathan August 31st, arriving back in New York about September 15th„ It is reported that several of the principal radio manu¬ facturers are to be heard on the air this Fall in a concerted selling campaign, namely Philco, already on the air, Atwater Rent, United American Bosch and RCA Victor. Last night (Thursday) was the first time that microphones of the American Broadcasting System faced the President when he spoke from the White House. Station WOL, Washington outlet of the ABS, made the installation in the White House. Va. A radio police net for the Richmond/area became assured yesterday with authorization by the Governor for installation of short-wave receivers in 48 State police cars. An unexpected balance of about $4,000 in the Motor Vehicle Division is to be used to purchase equipment. Starting last Monday, 3,000 representatives of Station WSM National Life & Accident Insurance Company, of Nashville, will call on 1,000,000 in 21 States to find out what they listen to - what stations, what programs - what they want on the air. This will be the most comprehensive house-to-house radio survey ever conducted by a single independent radio station in America. Whether the canvassers will double as insurance salesmen, is not known. XXXXXXXXXX 9 t- ■ ■ - i t . - . : ■ " ' - ’ .vo iv . . - i, J • ; • . ' 1 • ’ ’ it ■ i : ‘ ' ■ I! . ‘ ' ' ’■ . ... •• ’• • " ■ ■ ' . ' - : ■ , ' ■ xc o r.1 ' • ; V ’ ■ ■ ■ d mo , cXjs ; • ■•t.SWdA " :■ VjV . V. . •, . ■ . .' o . J ■ ... - Tjj v ’ 5W i ' • ‘ J o. X. J . : . ■ ■ E> B ■ . ■ ' . . ■ ■ ... ■ : - : : s* .; . . vc • vorraevoO IBO V . J o V C ib ■ r ;x ' ■ ir(': r m o i i ■ Bj ■ . J • • ■ .... . . .... - , -i. : V.nccV.OV .-./V r-y.V ;... •• ■ . . . ... . -J-JC . ;• i‘.c j: r • • •: J'V . : -V: : ■ -• '/ - ■; : <4{7 .' flit ■ ■ . • v ■ V vW >.T jV?I DECISIONS OF THE FEDERAL RADIO COMMISSION Applications Granted (June 29, 1934) WSPD . Toledo Broadcasting Co., Toledo, Ohio, C.P, to install new equipment and increase daytime power from 1 KW to KYJ; WMAZ . Southeastern Broadcasting Co., Inc., Macon, Ga. , C.P. to move transmitter locally; install new equipment, increase power from 500wto 1 KW; TO AY, WDAY, Inc., Fargo, N. D. , C.P. to make changes in equipment and increase daytime power from 1 KW to 2-| KW; WNBX , WNBX Broadcasting Corp. , Springfield, Vt. , license covering changes in equipment and increase in power from 250 to 500 w. , 1260 kc. , daytime hours; WATR , Harold Thomas, Waterbury, Conn. , license cover¬ ing new station, 1190 kc. , 100 w. daytime; WSFA , Montgomery Broad¬ casting Co., Inc., Montgomery, Ala., license covering local move of transmitter and installation of new equipment 1410 kc. , 500 w. simultaneous day, share night with WALA; WEED , Wm. Avera Wynne, Rocky Mount, N. C. , license covering move of "transmitter from Greenville to Rocky Mount, N. C. , 1420 kc. , 100 w. daytime; WLBF , WLBF Broadcasting Co., Kansas City, Kans., license covering new equipment 1420 kc. , 100 w. unlimited time. Also KTBR, Thos. R. McTammany, and Wm. H. Bates, Modesto, Cal. , license covering new station, 740 kc. , 250 watts, daytime; WFEAj New Hampshire Broadcasting Co. , Manchester, N. H. , extension of special experimental authority to operate on 1430 kc. , 500 w. , unlimited time and simultaneous with WOKO, WHP TONS and WHEC, until commencement of program tests on 1340 kc. , but not later than Nove 1, 1934; KSLM, Oregon Radio, Inc., Salem, Ore., modification of C.P. approving transmitter site; KWYO, R. E. Carroll, d/b as Big Horn Broadcasting Co., Sheridan, Wyo. , modification of C.P. to extend completion date from July 2 to Sept. 1, 1934; WTBO, Asso. Broad¬ casting Corp, , Cumberland, Md. , modification of license to change frequency from 1420 to 800 kc. , and hours from unlimited to day¬ time. Also, WCAX. Burlington Daily News, Inc., Burlington, Vt. , modification of license lo change specified hours; WSAI , Crosley Radio Corp. , Cincinnati, Ohio, modification of license to increase power from 500 w. , night, 1 KW LS, to 1 KW night, 2-| KW-LS, using directional antenna; WRBX, Richmond Development Corp. , Roanoke, Va. , modification of license to increase daytime power from 250 to 500 w. ; WQBC, Delta Broadcasting Co., Inc., Vicksburg, Miss., modification of license to increase power to 500 w. night, 1 KW day, specified hours, 1360 kc. ; KFKU, The University of Kansas, Lawrence, Kans. , modif ication of license to increase power from 500 w. to 1 kw; KVOA, Arizona Broadcasting Co. , Inc. , Tucson, Ariz. , modifica¬ tion of license to make change in specified hours of operation; KGGC, The Golden Gate Broadcasting Co., San Francisco, modification of license for two additional night time hours of operation, 9 to 11 P.M. ; WREC, WREC t Inc., Memphis, Tenn. , special experimental auth¬ ority to increase power from 500 w. night, 1 KW-LS, to 1 KW night, 2i KW-LS. 10 V/ (*/ %/ / JL Also, NEW, Marion K. Gilliam, Staunton, Va. , C.P. for new station to be located between Staunton and Harrisonburg, Va. , 550 kc. , 500 watts, daytime; WMT, Waterloo Broadcasting Co., Waterloo, la. , special experimental authority to install new equipment and increase power from 500 w. night,, 1 KW-LS to 1 KW night, 2i KW-LS; KUJ, KUJ, Inc., Walla Walla, Wash., special experimental authority for extension of special experimental auth¬ ority to operate unlimited time instead of daytime only; WGAL, WGAL, Inc., Lancaster, Pa., C.P. to make changes in equipment and increase day power from 100 w. to 250 w. ; KGKL, KGKL, Inc., San Angelo, Texas, C.P. to install new equipment and increase day power from 100 w. to 250 watts; WDGY. Dr. Geo. W. Young, Minnea¬ polis, Minn., C.P. to install new equipment and increase day power from 1 KW to 2j KW; KIEV, Cannon System, Ltd. , Glendale, Cal. , C.P. to install new equipment and increase power from 100 to 250 watts; KLZ, The Reynolds Radio Co. , Inc. , Denver, Colo. , C.P. to move transmitter locally, install new equipment and increase day power from 1 KW to 2-§ KW; WDBJ, Times World Corp. , Roanoke, Va. , modification of C.P. to increase night power from 500 w. to 1 KW. Also, WBRC, Birmingham Broadcasting Co., Inc., Birming¬ ham, Ala. , modification of license to increase night power from 500 w. to 1 KW; WMEX, The Northern Corp. , Chelsea, Mass. , modifi¬ cation of C.P. to make changes in equipment and extend commence¬ ment date to Aug. 1, and completion date to Aug. 20, 1934; WJIM, Capital City Broadcasting Co. , Lansing, Mich. , modification of C.P. to make changes in equipment and correct transmitter location; KRE, First Cong. Church of Berkeley, Berkeley, Cal., modification of license to change hours from specified to unlimited; WDAS, WDAS Broadcasting Station, Inc., Philadelphia, Pa., C.P. to move transmitter and studio location locally and make changes in equip¬ ment; KFVS. Hirsch Battery & Radio Co., Cape Girardeau, Mo., C.P. to install new equipment, increase daytime power from 100 w. to 250 w. ; WWRL, Long Island Broadcasting Corp., Woodside, L. I., C.P. to make changes in equipment and increase daytime power from 100 w, to 250 watts; WICCt Southern Conn. Broadcasting Corp., Bridgeport, Conn., C.P. to install new equipment and increase day¬ time power from 500 w. to 1 KW. Also, WKRCt WKRC, Inc., Cincinnati, Ohio, C.P. to install new equipment, increase day power to 2-| KW-LS (application to increase night power from 500- w. to 1 KW night, set for hearing) , special experimental authority to use 1 KW continued; WPHR, WLBG, Inc., Petersburg, Va. , C.P. to move transmitter to near Peters- burg, install new equipment, change frequency from 1200 kc. to 880 kc. , increase power from 100 w. night, 250 w-LS, to 500 w. and hours from unlimited to daytime; WLVA, Lynchburg Broadcasting Corp. , Lynchburg, Va. , modification of license to change frequency and hours of operation from 1370 kc. to 1200 kc. , S-WBTM to un¬ limited; WBTM. Piedmont Broadcasting Corp., Danville, Va. , modi¬ fication of license to change hours of operation from sharing with WLVA to unlimited; WADC , Allen T. Simmons, Tallmadge, Ohio, C.P. to install new equipment and increase daytime power from 1 KW to 2 i KW; - 11 - . - Also, WK J C , Lancaster Broadcasting Service, Inc. , Lan¬ caster, Pa., C.P. to install new equipt. and increase day power from 100 w. to 250 watts; WDAG-, National Radio & Broadcasting Corp. , Amarillo, Tex., C.P. to make changes in equipment, increase day power from 1 KW to 2\ KW; KROW, Educational Broadcasting Corp. , Oakland, Cal. , modification of license to increase nighttime power from 500 w. to 1 KW; WORK, York Broadcasting Co., York , Pa. , Spec. Exp. Auth-. to make changes in equipment, using directional antenna; change frequency to 1320 kc. , increase power to 1 KW, and operate unlimited time experimentally; KGKO, Wichita Falls Broadcasting Co., Wichita Falls, Texas, Spec. Exp. Auth. to Sept. 1, 1934, to increase night power from 250 w. to 500 w. ; WMC , WI'.J, lnc. , Memphis, Tenn. , Spec. Exp. Auth. to make changes in equip¬ ment and increase power from 500 w. 1 KW LS, to 1 KW and 2i KW-LS; KGKO . Wichita Falls Broadcasting Co. , Wichita Falls, Tex. , modi¬ fication of license to Increase day power from 500 w. to 1 KW; KRMD KRMD Inc. , Shreveport, La. , and WKBB . Sanders Bros. Radio Station, Dubuque, Ill., modification of licenses to increase hours of operation from specified to unlimited. Also, KFQD, Anchorage Radio Club, Inc., Anchorage, Alaska, modification of license to change frequency from 600 kc. to 780 kc; K0ILr Mona Motor Oil Co., Council Bluffs, la., C.P. to Install new equipment at site to be determined, increase day power to 2i KW; KSD, The Pulitzer Publishing Co., (St. Louis Post Dispatch), St. Louis, Mo., C.P. to make changes in equipment, increase day power 1 KW-LS to 2i KW-LS; application to increase night power from 500 w. to 1 KW, set for hearing; KMBC, Midland Broadcasting Co. , Kan¬ sas City, Mo., C.P. to increase day power from 1 KW to 2-J KW; KWK . Thomas Patrick, Inc., St. Louis, Mo., C.P. to make changes in equipment and increase daytime power from 1 KW to 2-J- KW; KQW, Pacific Agr. Foundation, Ltd., San Jose, Cal., modification of C.P. to increase power from 500 w. to 1 KW, from 7 PM PST: WBAA, Purdue University, W. Lafayette, Ind. , modification of license to change frequency from 1400 kc. to 890 kc. , increase day power to 1 KW-LS, and change in specified hours; WKBF, Indianapolis Broad¬ casting, Inc. , Indianapolis, Ind. , modification of license to change hours from specified to unlimited. Also, WOR , Bamberger Broadcasting Service, Inc., Newark, N. J. , modification of C.P. to make changes in antenna system; als i to change street number of studio; ext. commencement date to Aug, 16, 1934 and completion date to Dec. 16, 1934; KSO, Iowa Broadcast • ing Co., Des Moines, la., C.P. to move transmitter to site to be determined in Iowa; install new equipment; change frequency from 1370 kc. , to 1320 kc. and increase poYirer to 250 w. night, 500 w. day; KGBX. KGBX Inc. , Springfield, Mo. , Spec. Temp. Auth. to move transmitter install new equipment, change frequency from 1310 to 1230 kc. , and power from 100 to 500 watts, and change hours from LS to midnight; WKBF, Indianapolis Broadcasting, Inc., Indianapolis lnd. , C.P. to make changes in equipment and increase daytime power from 500 w. to 1 KW^ also granted regular renewal of license for term ending Nov. 1, 1934; KMA, May Seed & Nursery Co. , Shenandoah, la. , and KGBZ, York Broadcasting Co. , York, Neb. , applications to increase night power to 1 KW heretofore set for hearing, recon¬ sidered and granted. X X X X X X - 12 - HEINL RADIO BUSINESS LETTER. Jan, - June 1934 _ LIBRARY of the NATIONAL BROADCASTING CO., Inc. RCA BUILDING 30 ROCKEFELLER PLAZA NEW YORK, N. Y.