Evening star., 1941-07-30
News-Radio Statistics
Challenged as Federal
Board Pushes Inquiry
Chairman Fly Refuses
To Admit Exhibits as
Formal Evidence Nav
By CARTER BROOKE JONES.

nF IAN bhoohL JoANLSs
Accuracy of some of the statistical
exhibits placed before the Federal
Communications Commission was
challenged today by Sidney M. Kay
of counsel for the Newspaper Radio
Committee, as the Government
board continued its inquiry into
newspaper ownership or radio sta
tions.
Chairman James Lawrence Fly
pointed out that these exhibits had
been received only as marked for
Identification" and would not be
formally admitted in evidence at
present.
The commission" he said, can
not refuse to accept exhibits on this
basis. If you offered your night
shirt, the commission would have
to mark it for identification"
Mr.. Fly indicated that the ac-
curacy of these exhibits could be
determined later.
Serious Errors Charged.
The charts and figures concerned
broadcast activities of newspapers
and other data relating only to the
activities of newspapers. Mr.. Kay
said there were serious errors" in
some of them, particularly in sum-
maries relating to the ownership
and management of radio stations.
A table presented today by DE
Quincy Sutton of the F. C. c. re-
search staff stated that 282 radio
stations owned by newspapers repre-
sented an investment of S20,288, ,993
In broadcasting property. With de-
probation figured, this total Shrank
TO Sl2O14.497. The table showed
482 other stations, not affiliated with
newspapers, had radio property
worth S27 .744 819-or 15986,159 with
depreciation deducted from the orig
inal investment.
In response to questions by Louis
G. Caldwell, attorney for WGN, the
Chicago Tribune station, Mr.. Sutton
admitted that the location of sta
ton in highly developed area
of merchandising markets would al
feet its revenues.
No Conclusions on Present Exhibits.
The witness, Mr.. Caldwell sug-
eested, surely would not attempt to
reach any conclusions regarding the
revenues of newspaper-owned sta
tions without "a set of determining
factors"
Mr.. Sutton agreed he would not.
Then you wouldn't attempt to
reach any conclusions on the basis
~r oxyloiLitc
ownership of radio stations?" Mr..
Caldwell asked.
mo, J would not. Mr. Sutton said.
Mr.. Sutton denied that commits
sion statisticians had left out nom
newspaper stations having the
largest revenues in its tables COM
pairing investments and profits OF
stations owned by newspapers and
those not so affiliated.
Some highly profitable non-news-
paper stations had been included,
the witness said.
The F. C. c. resumed the hearings
al the Interstate Commerce Com
mission hearing room after a recess
since last Thursday. Two days of
hearings were held last week at the
Archives Building.
Advertising Lag Seen.
DR.. L. D. H. Weld, director OF
research for the McCann-Erlckson
Co, an advertising organization,
and president of the American
Marketing Association, told the
commission that advertisers have
been using radio much more than
formerly
Since the lowest point Of the de-
preston advertising in general has
not increased at the same rate as
other elements in the economic pic
ture. DR.. Weld said He added there
was no doubt radio had received
some of the advertising revenue for
merly going to daily newspapers,
magazines, farm journals and other
mediums But he said:
eff advertising does not recover
more I should think there would be
more rather than less competition
among the various advertising
media
DR.. Weld pointed out that in the
period of 1937-4O as compared with
1893, advertising had recovered only
32.5 per cent, while industrial pro-
duction during the same period had
recovered Sc per cent Declaring
that advertising definitely has been
tagging" the witness said the United
States had a per capita advertising
expenditure of from S18 to Sl9 in the
'2os. compared with S12 in l94O. This
wear. however, he added, advertising
was showing a small increase IN
general over last year.