Evening star., 1934-10-07
NEW NETWORKS
PLANNED IN EAST
Good Prospects Seen for
Two Chains-QuaIity
Group Starts.
BY MARTIN CODEL.

fields OF sponsorship, ETC., taken TO-
Rether with the usual inability Of the
promoters to wean away any of the
nearly 200 members of the existing
big networks, have always been
brought up to prove case against
the organization of additional net
works.
On the other hand, even though
the N. B. C. and c. B. S. admittedly
embrace most of the cream stations"
of the country, so far as powers and
wave lengths and prestige are con-
cerned, there still remain a few major
stations that belong to neither system
and yet are operating quite success
fully on their own.
1t is also a fact that there are
many smaller stations, usually of the
order Of 100 watts or SO, that enjoy
local prestige and audience but have
been unable to affiliate with the big
networks because they are small or
because other larger stations in their
localities have been signed up first.
Giant Financing.
Part of the giant financing required
for a new network to compete with
the existing national and regional
chains, whose gross business this year
may exceed $5o,ooO,o 900, is the 'line
haul" cost. Specially engineered tele-
phone lines interlink radio stations,
which is why networks are so called,
and they are highly expensive. 1t is
calculated that at least S8,0O0,000 is
spent annually for national and
regional network and remote control
tolls, making radio the biggest single
customer of the telephone service.
In the face of all these obstacles,
two new network projects, neither
Of them Nationwide in scope, but
both mapped out to serve at the start
the big population centers east of the
Mississippi, are getting under way this
month. Both appear to have good
prospects for success and even ex-
pansion, although each is being start
ed on a different scale and with diff
ferent operating plans. One is build
ing, so to speak, from the top down
that is, with powerful stations as the
nucleus and with the idea of possibly
expanding later to embrace more sta
tions. The other is building with low
and medium power stations in thickly
populated areas as starter and with
ambitious plans to add more stations,
large and small, until it becomes
Nationwide in scope.
The first project calls itself the
Quality Group, and it started October
l with a. hook-up Of WOR, Newark,
5,000-watt station, shortly to go to
$4,000 watts and controlled by r. H.
Macy & Co., big New York depart
ment store; WLW, Cincinnati, the
500, ,000-watt station operated by Cros-
ley Radio Corp, which with station
In Moscow shares the distinction of
being the most powerful in the world;
WGN, the 50,000-watt Chicago Tri-
bune station, and WXYZ, a 1000
waiter owned by the KunSky Trendle
Corp, operator of a big chain Of
Michigan theaters.
Supplementary Outlet.
Neither WOR, WGN nor WXYZ
subScribes to the major N. B. G. and
G. B. S. networks, each having with
drawn from chain affiliations IN the
past for one reason or another. WLW
is on an N. B. c. network, but has
been at constant loggerheads with
that organization over rates, and
still is in dispute over this new af-
filiation, which is in addition to its
N. B. c. arrangement. WXYZ is
called a supplementary outlet for such
advertising clients as want to buy
this group. The Quality Group Is
starting with four commercial shows
linking for them only, and has no
immediate plan to take in non-com-
mercial programs.
That this group has ambitions to
spread out as a full-time network,
carrying non commercial sustaining
as well as commercially sponsored
programs, is well known.
The other chain project has been
under way for short time, in linn
tied way, but this month expects to
operate with outlets in IA cities. 1t is
called the American Broadcastlng
system. Its key station is WMCA,
New York, and it is headed by George
Storer, a young Detroit business man
who controls the operations OF four
stations. 1t is reputedly well backed
financially, Mr.. Storer being wealthy
in his own right, and his board in
cludes some of the wealthiest young
men in New York.
Sustaining Programs.
This network will "seI time" like
the others, but betimes it will also
send sustaining programs to its mem
ber stations, operating on a full
schedule of 16 hours a day. Already
feeding programs from WMCA to the
Eastern seaboard stations, its starting
lineup, when it gets going full blast
on or before October Is will comprise
in addition to WMCA: WIP, Philadel-
phia; WCBM, Baltimore; VOL,
Washington; WPRO, Providence;
WAAB and WHDH, Boston ALTER
mates; WFBE, Cincinnati; WJBK and
WXYZ, Detroit alternates; WIND and
VIVID, Chicago alternateS; WILL, st.
Louis; WHBL, Rock Island, Ill; KQV,
Pittsburgh; VIVA, Wheeling, w. Va,
and WKBW and WEBR, Buffalo al
ternateS. An unnamed Cleveland sta
ton is also expected to join.
In building up this lineup, the fact
that some of these stations are of low
power was not regarded as deterrent,
as has been the case heretofore with
the big networks. In few instances
the A. B. S. stations are also lined up
with other networks, viz, WXYz with
the Quality Group and VIVA with
c. B. S. The plan of operation not
only calls for feeding of sponsored
programs to these stations but for
adequate station breaks" between
programs to permit local sponsors
over each station to assume credit for
high quality network programs that
are fed from New York and other
points.
Out Of the welter of rumored and
actual promotion, these two projects
are the only ones that appear TO have
any chance Of continued existence.
The character of the men behind
them, the financial backing and their
modus operandi lend to convictions
in we'll informed circles that they
have an opportunity not only to sue
ceed but to expand unless the bottom
falls out of radio as a business They