Evening star., 1939-09-24
Broadcasting Chains
May Be Restricted
In Time Contracts
T. c. c. Report Expected
To Recommend Some
orm of Control
BY WILLIAM J. WHEATLEY.


chain broadcasting companies in
making contracts for the time of
their afaliated stations are expected
to be included in the forthcom-
Ing report of the Federal Commune
cations Commission committee
which conducted a six-month in
vestigation into alleged monopolis-
tic tendencies in radio. A corps of
experts from the commission staff
now is engaged in preparation of the
report, and it was indicated the
draft will be ready for committee
consideration within 80 days.
There is a feeling in some parts
Of the commission that the prac-
tice of the chains in contracting
for the principal time of many OF
the stations has the effect of de-
stroying the purpose for which
broadcasting stations are licensed
to serve the community in which
they are located. 1t was explained
that there is no doubt many lsten-
ers prefer the high type Of many
Of the chain programs, programs
which could not possibly be put on
by individual stations. However,
1t was asserted that the local sta
tions, In many instances, are so
bound up with their time contracts
with the chains that they are un-
able to serve the public interest by
putting on local community pro-
grams at times when there are the
greatest number of listeners.
Keep Many in Business.
However, it was pointed out that
the chain contracts and the busi-
ness which they produce through
their large commercial setup make
1t possible for many of the sta
tions to exist through payment for
the time. 1t is questioned by many
whether the individual stations
could give the same high type of
service If they did not have the
contracts with the chains, and it
was explained that the large ad-
vertisers want the best time and
are willing to pay for it.
But 1t was said that the investi-
CATION has indicated that in a num-
Der Of instances the outlets are 50
bound up with their chain contracts
that they cannot obtain the use of
the stations for community purposes.
On the other hand, it was pointed
out that the chains could not build
up large network programs unless
they can definitely tie up the time
on the aff1liates for the use of the
commercial firms desiring to use
radio as an advertising medium.
There also is line of belief within
the commission that the chains are
making too large a profit on the
actual investment they have in the
industry. and this, it was indicated,
has had some effect in promoting
the proposal to eliminate some of
the practices, and thus permit the
stations greater hexibility in serving
their communities with strictly local
interest programs.
Changes in Personnel.
The report will have to be con-
sidered by the investigating COM
mittee before 1t finally is presented
to the full commission for consider
alton. There have been several
changes in the personnel of the
committee since the investigation
was originally started.
The first group consisted of Chair
man Frank R. McNinch and Com
missioners Eugene s. Sykes, Thad
H. Brown and Paul Walker. When
the public hearings were about half
completed. Commissioner Sykes re-
signed from the commission and his
place was filled by the appointment
OF Commissioner Frederick H.
Thompson, who subsequently was
assigned to fill the Sykes vacancy
on the committee. Later Chairman
McNinch, who took an active part
in the investigation, also resigned.
The committee report, of course,
will have to be considered by the full
committee of seven members. But
1t is now expected that this will be
completed before the regular session
OF Congress convenes. While the
investigation was not made in con-
formity with direct congressional
action, nevertheless the course of
the commission in instituting its own
investigation is believed to have
been one Of the controlling consider
atoms In wardipg of q direct con-
gressional investigation of radio.