Evening star., 1924-06-24
RADIO SALES MAY
REACH $500,0OO,O00
Year Expected to Swpass 1928 in
Immense Totals--Cost of Broad
casting Is Puzzle.
EXPENSE RUNS VERY HIGH
Convention Air Operations Revive
Much Disputed Question.
BY j. C. ROYLE.
Special Dispa teh to The Star.

Special Dispatch to The Star.
NEW YORK, June 24.-Millions of
radio fans in this country tuned in
on WIZ and WEAF today, or tried
to, to listen to the proceedings of
the Democratic national convention.
At the same time, nearly all of the
5000 radio equipment manufacturers,
1000 distributors and $4,000 dealers
throughout the country began to
ponder deeply just who ought to pay
for broadcasting, whether they should
be allowed or compelled to pay and
how, in order to prevent the killing
of the golden goose, which yielded
sales of $350,000,00O last year and is
expected to yield $500,o00,000 in 1924.
100000 Crystal Sets In Use.
1t is estimated that there are now
in this country between 3.50O,0OO
and 100000 tube sets of various
sizes and circuits and at least 7,000.-
900 crystal sets. The interest of the
owners of this equipment in the radio
game was built up gradually and
with effort and expense. 1t is real
iZed it can be killed far easier than
1t was aroused, with consequent det-
riment to the industry which pro-
vides employment for some 250,000
people, provided broadcaSting is not
properly systematized and regulated.
Secretary of Commerce Hoover, under
whose jurisdiction radio falls, does
not favor tax on receiving sets.
$50 Broadcasting Stations.
There are at present a few more
than $50 broadcaSting stations in the
United States, ranging in power from
1000 TO 5000 watts. Those operated
by municipalities, educational and re-
ligious institutions have their broad
casting expenses met by taxes and
funds raised by members. Newspa
pers operate about fifty stations
largely devoted to entertainment pro-
grams
The viewpoint of the Commercial!
concerns which operate broadcastlng
stations is the advertising viewpoint,
papers have found il advisable to do
much more than announce thelr
names for fear of killing interest in
the air entertainment.
Over so Per Minute Possible.
Public service corporations. through
inter agreements, have already solved
the broadcasting expense problem to
some extent and are making charge
of $40 a minute for time on the air.
Should broadcasting of the New York
convention equal or exceed in sue
cess that at Cleveland. il would in
dicate that entertaining programs or
other sorts could be put over to a
huge audience and time on the air
might become worth far more than
$40 a minute.
Radio enthusiasts say. however,
that a clear line must be drawn as
to the amount and kind of advertis-
ing and publicity or propaganda to
be permitted as differentiated from
the purely entertainment part OF, the
program.
Radio equipment manufacturers are
not specifically worried as to who
shall pay for their broadcasung sta
tions and expenses. for broadcasting
is their form of craftsmanship.
Seek Way to Pay Bills.
Most of the smaller stations are
operated by individuals who have no
carrying the expense in the hope
some way will be found of producing
revenue which will make their plants
profitable. The expense of most of
these runs from 800 to $500 a week.
1t costs an owner, therefore, from
about $1,000 to s50,000 a year to op-
crate a broadcasting station, to say
nothing of investment in equipment.
Up to the present nearly all the
entertainment talent employed has
given its services free. in view Of
the publicity and advertising gained
But this arrangement is becoming
less satisfactory. The publicity lure
is not sufficient to attract artists of
the highest class and there is
general feeling that the performer