Evening star., 1944-08-19

for all this is the Lowell "ehe"'
law under which a radio station
must have a Government license
renewable every three years, in or
der to operate. The result, we have
been told, is that radio folks cannot
call their souls their own.
AS expressed by Neville Miller
president of the National Associa-
ton of Broadcasters, before Sen
ate committee: To-day uncertainty
4 underlies the whole basis of the re-
lationship between the Federal Com
munications Commission and the
licensee. Eligible and reputable per-
sons are dissuaded from making
investments in the broadcast field
because of this fact"
Urges New Freedom.
And by Niles Trammell, president
of the National Broadcasting Co.: I'll
American radio is to remain the
greatest radio service in the world
it must be given new freedom from
fear, the fear of the blight of Gov
ernment control"
And by William S. Paley, president
of Columbia Broadcasting System
Il have become convinced that radio
in Lincoln's phrase, cannot exist
half slave and half free
Of the newspaper editorials, this
one from the Memphis Commercial
Appeal sums up what lot of Others
have said: LAS things go, the FEC
has a moose around the neck OF
radio and is anxious to find any
excuse to jerk the rope tight"
How true is this and how real
these fears? There is a record on the
subject that provides the answers
1t is said that the most timid
thing in the world is money. 1t
doesn't have to be said that hard
headed American businessmen don't
buy nooses for their own necks
They don't buy radio stations for
the fun of being half slave and half
free Are they being dissuadeo
from making investments in the
broadcast field?"
Forget the four networks (They
are doing right we'll, by the way
NBC, which in 1912 earned a return
before income tax, of 1877 per cent
on the value of its property, in 194c
earned 100 per cent. The Blue Net
work. with a return of only 8 pei
,ent in 1912, earned 149 per cent in
1943. CHS increased its return from
81 per cent to 158 per cent. The
Mutual Network went up from SO pei
cent to "a per cent?
Consider the individual stations
whose net income, between 1912 anC
1943, increased so per cent. Much
new money is being invested in sta
tions. Since the first OF January
many transfers involving the pay
nent of big money have occurred
Prices have ranged from 100000
to a million dollars
High Cost of Stations.
The FEC found that Station
WINK, 250-watt, operating in
Washington on local channel, had
total assets, tangible and intangible
according to its own books, of only
s48,254. For the year 1943, its net
income before Federal taxes, was
only $20,186. Yet WINK was solo
this summer for ,O00-to Eugene
Meyer, who wears no mans moose
But, you may say, Mr.. Meyer had
other than business reasons for buy
ing, a desire, perhaps, to make his
voice heard in the National Capital
Take then the case of Station
WILD, BesSemer, Ala. A nice little
property worth, according to it's own
books, only S14,236. Last year its
net income before Federal taxes anG
before paying the proprietor's salary
was only s4,966. Somebody bought
that station last month for $l06,000
There are dozens of such exam
pies, but take as a final one WQXR
The New York Times, following the
trend of newspapers into the broad
casting business. has purchased Sta
tion WQXR, whose net worth is
given as S227,037. For this property