Evening star., 1931-06-16
BABSON INSISTS
|. DEPRESSION PAST
Letter to Advertisers Meet
| ing. Says He Would "stake
| Reputation on It."
nv the Associated Press.

jEEy the Associated Press.
N NEW YORK, June 16.-Roger w.
Isabsor,, authority on economic problems,
Is willing to stake his reputation that
ibusiness has seen its worst.
4. In a letter to newspaper advertising
lexecutives attending the convention OF
1.-The Advertising Federation OF America
itoday he said:
'The recovery will be slow and tedious.
t,but the old law of action and reaction
teaches nov that unparalleled pros
,lperity will aFai1 follow the depression" :"
T. {, Newspapers Have Opportunity.
4. his paper warned the advertising
linen of the opportunity newspapers now
.thaVeato render q real service Of telling
1.-THE truth. He chided the newspapers
flor not printing gloomy statements
liwhen prosperity was at its height, al
though certain economists predicted a
depression and tried to sound warning.
,i 1.-THE most conservative economists
,,Who were bearish few years ago are
,lbullish now so far, as the future is con-
lcerned. Irrespective Of what happens
ito the stock market in the next year.
ibusinesS has seen its worst.
Annual Dinner Tonight.
Seventeen other departmental ses-
ealans were being held today in connec-
mtion with the convention. The annual
gdinner takes place tonight in the Hotel
kAstor with Gov. Albert c. Ritchie of
sMaryland, Sir Charles Higham of Lon
kdoI1, Bruce Barton of New York and
gStrickland Gilliland Of washington rs
ssthe. principal speakers.
The decision of the larger theater
& chains not to distribute advertising
afilms can have no permanent effect as
Mfar as eliminating talkies as an adver-
atiSing medium is concerned, w. ID.
eCanaday, vice president Of Lehn &
1Eink, told a. group meeting Of the
federation.
e Most Houses Independent.
@ass6ince independents control over five
times as many theaterS as the chains,
it stands to reason that the develop
merit of this medium will continue to
aMo forward" he said. IF your picture
,rigF1t, If 1t is good entertainment,
x16st of these theaters will run it.
- Movies have been used for adyer-
Using purposes in both chain and
@ndependent theaters for upwards of 20
alISed m modern form-the talkies."
MR. Canaday said there were $4,000
enaovie houses equipped Sto show talkie
.1i1rns and an but 2,4S0 were i1de-
4endently operated. ~ez
y 49, ~: radio Advertising Poor
solution Of the problem as to what
Is proper in broadcast advertising pro-
SErarns- rests with the listeners them
pselves, Frank A. Arnold, director public
sdevelopment of the National Broad
ecasting Co., told the federation.
z "Unfortunatelyys he said, there are
Ebeirigs broadcast daily advertising pro-
Agrafns IN which the element Of good
&taste apparently never enters. It is
tthese. forms of blatant advertising, di-
rect selling, reiteration Of price, undue
4 fuse of superlatives, statements reflect
Ting on competitors, repetition on repe-
ftition, until one tunes of his set in
ASelf lf-defense-these are the types of ad-
svertising programs that are gradually
econtaminating the entire structure OF
broadcast advertising.
= "spOnsoeed ProgrAm Appeoved." !
7 Mr.. Arnold said in general the pub
aiic approves OF the sponsored program
saddir9 that the radio fan listens 10
ssuch programs primarily for enter
stainment or information.
: The public does not listen to an
EadvertiSing program primarily for the
sadvertising," he continued. THE COM
smercial credit is accepted as the ad-
Emission price. The public does not
Eseriously object to the proper use Of
Ethe advertising credit. It does object
ato the improper use of the advertising
Hprivilege and is at present voicing its
sdisapproval in no uncertain language
= Owen A. Conner, financial editor,
philadelphia Public Ledger, addressing
"a group meeting of the convention, said
tl1a6Sin his opinion plain exposition of
s6nances in advertising should go long
way toward dispelling erroneous thoughts
now entertained by many persons when
they consider their relationships to the
organization that supplies them with
light, heat and refrigeration.