Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-03
FINANCIAL STATUS
OF RADIO EXAMINED
Broadcasting in Red Ink, Ac-
cording to Certain Ether
Companies.

Broaicasting's books a~e being bal
anced by the Federal radio authorities
20 learn what it costs to give to the
Nation its radio entertainment, and to
see lust how much money the structure
as a whole is making or losing.
This information is being obtained
through financial forms sent to the en-
tire roster of 60o-odd stations by the
Federal Radio Commission, with in
structions that they be filed out oy
August 20. Profits and losses of sta
lions, amounts expended for program
entertainment, capital behind stations.
and all other pertinent fiscal data are
being sought in this first financial sur
vey ever undertaken by the commission
or by any other public or private agency
Broadcasting in Red Ink.
BY and large, broadcasting has been
In the red ink since It's advent, nine
years ago. according to the broadcast
ers themselves. An analysis made by
che commission last December at the
request of the Senate, but based on
meager information. was to the effect
that the industry is not yet Self-Sus-
tanning, but is gradually nearing that
point. while numerous stations are real
izing profits.
Already Shere lave been fiarebacks
from broadcasting to this new survey
of the commission. Some OF the sta
tons apparently feel that the commits
sion is prying into affairs OF the sta
tions with which they should have nc
concern.
But the commission says it is under
taking the project in accordance with
tn terms of the radio law itself. The
information will be held strictly conf
DENTAL and is sought only to better en-
able the commission to perform its JOB
of administering radio. As matter OF
fact. the financial survey is not to be
restricted to broadcasting alone, Tor the
commission later intends to send imam
cial forms to all other licensed users Of
the ether.
Following Radio Act of 1927.
I'VE are seeking this financial infor-
nation from stations pursuant to the
terms of the radio act of 1927 said
Commissioner William d. L. Starbuck
in commenting on the survey. The
commission intends to keep this infor-
nation confidential, and it will not be
opsn for general public inspection. The
commission wants it so that it can keep
abreast CT the growth of this remark
able industry. as it is required to do by
law To learn the financial status of
stations will enable us to do our job
in a more complete and effective man
ner. and should rebound to the benefit
of the public and the industry alike.
with this information at hand, for
the first time we will know the actual
profits and losses of stations and their
physical values. We will know the
combined value of broadcasting stations
in the country and the amount of money
expended to afford the American people
the radio programs to which they
listen"
The analysis transmitted to the
Senate by the commission last Decem-
Der was based on reports from $40
average" broadcasting stations. OF
this total 172 lest money in amounts
ranging up to $4,000 or more over
one-year period. The remaining 1853
stations realized profits over the same
monetary range.
oCopyright, 1880. by Consolidated Press)