Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-12
RADIO BROADCAST
LOSSES ARE SHOWN
Less Than Half of Stations
Answering QUESTIONABLE
Report Profit for Year.
BY MARTIN CODEL.

Is radio broadcasting a profitable
business?
So much has been said about the in
stability of the broadcasting branch OF
the radio industry. based as 1t is on
many intangible values and furnishing
as It does its services free OF direct cost
to the public, that it is pertinent to re-
view the results of a QUESTIONABLE sent
out last June by the Federal Radio
Commission and made public yesterday
in connection with the Senate proposal
to levy fees for the use OF wave lengths:
OF the $40 stations which responded
to the QUESTIONABLE 1853 revealed they
had operated during the preceding year
at a profit and 172 showed losses. Only
dollars and cents earnings or losses
were considered, no account being taken
of the returns from other sources which
good will or other motives for operation
may have gained for the stations
owners.
In the profit columns So stations each
showed earnings of $4,000 or more, "a
earned $4,000 to $4,000, IS earned
81, 500 to $1,000 and 26 earned less than
$4,000.
In the loss columns 80 stations each
showed deficits of $4,000 or more, SO
lost $1,000 to $4,000, % lost S2.500 to
SIS 900 and SO lost less than $4,000.
All but handful of the proflt-maklng
stations were users of the low powers.
from 100 to 900 watts. Most OF the
losing stations were in the same power
category. Among the latter, however.
were 10 stations Of 5000 watts ! col OF
$500 watts, of 10000 watts of 1880
watts, / of $4,000 watts. l OF 10000
watts, / of $4,000 watts and of $4,000
watts.
Onlv seven stations in the 5,000-watt
class earned profits, while there were
one each in the $500, 10000 and $4,000
watt classes.
From this survey it is apparent that
the stations of the higher powers that
occupy the cleared channels are, with
only q few exceptions losing money on
their operation. That they regain 1t
from other sources, such as advertising
for their owners and operators, leading
perhaps to the sale of commodities, is
probably fact in most instances. There
are, however, many stations hanging on
simply in the hope of future profit.
This compilation and the license fee
schedule submitted to the Senate in
compliance with resolution by Senator
Dill represent the work of Paul M.
Segal, assistant general counsel of the
Federal Radio Commission. Fees to be
charged broadcasting stations for the
right to use wave lengths are suggested
in units based on wattage and hours OF
operations, the units" to be fixed by
Congress.
1t is suggested that each unit might
pay $25 per year or more If Congress
wants to pay for the administration of
radio out Of license fees. A higher fee,
for example. $500 per unit, might be
charged If the use of wave length is
to be regarded concession.
Thus, for purposes of example only,
If 100 watts is fixed as the unit sta
ton of that power operating full time
might pay $25 a year to the Govern
ment. The fee would be proportion
ately higher for the higher powers.
The only fiat fees proposed are 81
year for an amateur license, $40 for
aircraft $40 for radio beacons, SIS for
ships and $4,000 for experimental IL
censes. Fees ranging from $40 to 500
would be charged for license renewals,
construction permits, modification of
licenses and assignment of licenses.
These latter classes would yield reve-
nue. of about $4,000 to the Govern
ment each year.
The unit system would be applied to
broadcasting, commercial radio teleg-