witnesses scheduled to appear in- work originations over CBS for clude W. B. Lewis, vice -president 1937 and the first nine months of in of DETAILED tabulations of charge programs; Herbert V. CBS income, expenses and net 1938; a compilation of sustaining Akerberg, station relations vice - operating profit, 1927 -1937 programs of public interest and president; Gilson B. Gray, director inclusive, will be found on service broadcast locally by WJSV of commercial editing; Lawrence pages 70 and 71. Comparable as a typical example; analysis of W. L ow m a n, vice -president in figures for NBC will be found local commercial time for the 1937 charge of operations, who will also on pages 26 and 27. A table and 1938 periods, broken down be- deal with artists bureau activities; showing stockholders in CBS tween national spot and local ad- representatives of its artists bu- of its officers and directors, vertising, and a sample time con- reau activities; Paul W. Kesten, together with listings of their tract of WABC and that employed vice- president, on sales policies, ad- other stock ownership is on by Radio Sales, spot subsidiary of vertising and television develop- page 72. CBS. ment, and finally Dr. Stanton and Mr. Runyon explained that Gil- William Lodge, on duplication of son Gray, CBS commercial editor, programs. Mr. Klauber, while not passes on the acceptability of both scheduled to testify, will hold him- work. The first of these showed products and programs sponsored self in readiness as CBS' final wit- that during 1937 these stations car- over CBS, and over owned and ness to offer testimony on matters ried an average 1326 hours of local operated stations. Joseph H. Ream, not sufficiently covered by preced- sustaining time, covering 3,128 CBS secretary and general attor- ing witnesses. broadcasts. These varied with the ney, is consulted on contest and While CBS whipped through the stations. lottery issues as well as other ques- A second exhibit dealt with an tionable ideas. first day covering an amazing analysis of total operating time program amount of ground in comparison for 1937 Local Managers to the progress made by NBC and the first nine months of 1938. The breakdown showed p'lave Refusal Right during most of its presentation, that for 1937, the nine stations this largely was attributable to the carried 19,685 sustaining hours CBS has a policy against selling fact that there was a minimum of and 17,511 commercial hours in time for presentation of controver- questioning from the bench. Chair- network time, representing 63% of sial issues, except during campaign man McNinch was absent except their total hours on the air, and ears by qualified candidates, Mr. for the closing minutes of the pro- 8,743 hours of sustaining local unyon asserted. The same policies ceedings, while General Counsel time, as against 13,467 hours of pply for managed and operated Dempsey was away due to argu- commercial local time, or 43 %. stations, except where local and ments before the Court of Appeals. PENSIVE might describe the mood State election campaigns are in- of Mefford R. Runyon, CBS vice - Total time on the air, divided be- Commission Counsel Porter, in tween sustaining and commercial volved. Script always is requested president, who described in detail in advance, and questions of policy his cross- examination of Mr. Run - management and functions of hours, showed 48% sustaining and yon, stressed particularly the auton- 52% commercial. For the first are submitted to Mr. Ream. CBS' nine owned and managed sta- There are certain high -quality omy of local managers of the nine tions, under his immediate direc- nine months of 1938, network sus- CBS owned, operated and leased taining time amounted to 67% and sustaining features which are in tion, during the opening of the the "must" category, he said, and stations. He sought to develop the CBS case Jan. 10. commercial time 63% of network degree of discretion they held in time, and 33% sustaining and 41% network commercials likewise gen- cancelling CBS programs to make commercial of local time. erally are carried, but can be can- way for local sustaining features tor for Price, Waterhouse & Co., celled for the presentation of a of transcendent importance. Though CBS auditors, and then became Use of Live Talent local civic feature of widespread he put the question in a number of comptroller, assistant treasurer, And Transcriptions local interest. When Mr. Porter different ways he drew from Mr. treasurer, and then vice -president pressed him on the refusal right Runyon the unequivocal response and a director, in charge of the An analysis of local time for of the local manager of owned and that the local managers were the owned and operated stations, and 1937 -1938 dealing with live talent operated stations to make way for final arbiters. in general charge of station rela- versus transcription on the owned local sustainings, Mr. Runyon re- tions, along with other executive and operated stations, showed that iterated that the decision finally is Tells of Profits duties. of local commercial time, 64% was the prerogative of the local man- CBS has a total of 1,724 full live talent and 36% electrical ager. The network, he said, has Of Network for Year time employes of whom 274 are transcription, these combined the primary responsibility, b u t or musicians, Mr. upon To lay artists Runyon amounting to only 23% of the time nevertheless relies the local the foundation for Mr. explained in responding to ques- of the stations during 1937. Local manager's judgment on clearance. Runyon's testimony, Dr. Stanton tions by no he .said, identified and, described Judge Burns. In addition sustaining programs were divided Linder circumstances, for the a number of employes are given 78% live talent and 22% transcrip- does CBS req it a regular affiliates record a series of exhibits dealing "casual employment" engaged Su§taiififig o g r a ms, with industrial statistics, gleaned or tion. For the first nine months of t3- carry- pr on a per performance basis, he 1938, local commercial time was bluugh certain . sustainings ä r e from various sources, including said. The payroll in 1938 totaled divided 61% live talent and 39% mandatory with managed.__á.li d BROADCASTING'S 1938 YEARBOOK $5,309,330, and with the "casual" electrical transcription; local sus- owned stations. edition. These served to depict managers likewise con- CBS' employes, aggregated $6,382,659. taining time, 70% live talent and ""Station position in the industry. Breaking down the employment 30% transcription. trol local sales policies of the owned CBS owns eight stations (WBT, rolls, he brought out 861 employes Other Runyon exhibits covered and operated stations, Mr. Runyon WCCO, KMOX, KNX, WBBM, are in New York headquarters; an analysis of non -New York net- (Continued on page 70) WKRC, WJSV and WABC) and 218 in Chicago; 215 in Los Ange- leases one (WEEI), Dr. Stanton les; 107 in St. Louis; 74 in Wash- declared. As of Oct. 1, last, CBS ington; 68 in Boston; 65 in Minne- had 102 affiliated stations, exclu- apolis; 51 in Charlotte; 43 in Cin- sive of the owned and operated cinnati, 11 in San Francisco, 5 in group. Replacement value of the Detroit, 2 in Milwaukee; 2 in Lon- CBS owned and operated stations, don and 1 in Geneva. and of the network's facilities as of the end of 1937 was computed Functions of Network at $9,322,838. The net revenue of Officials Delineated CBS for 1937 was $23,829,544, and the net income $4,297,567. The total Functions of various officials in gross revenue for the industry in the CBS organization were out- 1937 was $141,436,226, of which lined by Mr. Runyon in describing a the networks realized a gross of massive organization chart intro- $69,612,495, and CBS a gross of duced in evidence. These included $28,722,118. artists' service operations, a n d when FCC counsel inquired whether Mr. Porter cross- examined the there would be detailed testimony witness on the authenticity of the with regard to them, Mr. Runyon figures he had quoted, and asked explained subsequent witnesses him, among other things, about would testify. This was significant BROADCASTING Yearbook. Dr. Stan- because during NBC's testimony, ton asserted that it is "regarded as the FCC appeared to make a major authentic in the industry" and that issue of such collateral operations. its estimates were construed as re- Mr. Runyon brought out that liable. resident managers of CBS stations As the first principal policy wit- have comparatively free rein. He DEADLY SERIOUS were the expressions of these CBS executives short- ness for CBS, Mr. Runyon, whose described a series of exhibits cov- ly after the opening gavel for presentation of the CBS testimony Jan. 10 rise in radio has an Horatio Alger ering each of the nine stations at the FCC network inquiry. Left to right are M. R. Runyon, vice - flavor, dwelt largely on owned and comparing programs, both commer- president for owned and operated stations; Duke M. Patrick, Wash- operated station affairs. He began cial and sustaining, of local origin, ington attorney and of CBS counsel; Harry C. Butcher, CBS Washington in radio in 1931 as a traveling audi- with those originated by the net- vice- president, and Frank K. White, CBS treasurer. BROADCASTING Broadcast Advertising January 15, 1939 Page 13