"RADIO: FROM THE GOLDEN DAYS TO

THE EMBOLDEN DAYS—75 YEARS"

REID G. CHAPMAN

QUEST CLUB

OCTOBER 4, 1996 "RADIO: FROM THE GOLDEN DAYS TO

THE EMBOLDEN DAYS -- 75 YEARS"

QUEST CLUB OCTOBER 4, 1996 BY REID G. CHAPMAN

THE AMERICAN SYSTEM OF FREE BROADCASTING IS NO ACCIDENT; IT IS THE END RESULT OF MANY PROBLEMS; PRESSURES AND MUCH LITIGATION. THE PURPOSE OF THIS PAPER IS TO REVIEW SOME OF THOSE MILESTONES.

HOST OF US WERE TAUGHT THAT THE FATHER OF RADIO WAS GUGLIELMO MARCONI; HOWEVER; LEE DEFOREST; THE SON OF A POOR CLERGYMAN FROM THE MIDWEST; CONSIDERED HIMSELF TO BE THE TRUE "FATHER OF RADIO" AS THE RESULT OF HIS MOST SIGNIFICANT INVENTION " THE AUDION TUBE. AT ONE TIME HE HELD MORE THAN 300 PATENTS. HIS ENEMIES ARGUED THAT HE BORROWED FROM OTHER INVENTORS AND THAT HE ACTUALLY DID NOT KNOW HOW THE AUDION TUBE WORKED. CONTROVERSY OVER HIS ETHICS AND HIS GENIUS FOLLOWED HIM THROUGHOUT HIS LIFE.

EDWIN H. ARMSTRONG; ON THE OTHER HAND, IS CONSIDERED BY MANY ENGINEERS AS BEING THE GREATEST INVENTOR OF THE TWENTIETH CENTURY. HE EXUDED INTEGRITY AND TRUE GENIUS. HE TOOK THE DE FOREST AUDION TUBE AND FOUND WHAT REALLY MADE IT WORK; WHICH IS SOMETHING DEFOREST COULD NEVER EXPLAIN. ARMSTRONG ADDED A VERY IMPORTANT ADDITION - HIS OWN DISCOVERY - AMPLIFICATION. HE CALLED IT "REGENERATION". HE ALSO MADE IT POSSIBLE FOR THE DEFOREST TUBE TO TRANSMIT AS WELL AS RECEIVE. IN 1913 ARMSTRONG PATENTED HIS SYSTEM.

THE ACHIEVEMENT THAT WON MARCONI A PLACE IN HISTORY CAME IN 1901 WHEN HE SUCCESSFULLY SENT THE LETTER S OF THE MORSE 2

CODE ALPHABET ACROSS THE ATLANTIC FROM ENGLAND TO NORTH AMERICA.

MARCONI'S SUCCESS IN TRANSMITTING CODE MESSAGES THROUGH SPACE INSPIRED A HOST OF EXPERIMENTERS TO TRANSMIT THE HUMAN VOICE. ONE OF THE FIRST WAS REGINALD A. FESSENDEN; PROFESSOR AT THE UNIVERSITY OF PITTSBURGH. FESSENDEN PROPOSED THAT THE WAVE SENT OUT MUST BE A CONTINUOUS WAVE; ON WHICH VOICE WOULD BE SUPERIMPOSED AS VARIATIONS OR MODULATIONS. THIS OPINION BECAME THE FOUNDATION OF RADIO.

HORATIO ALGER COULD HAVE SCRIPTED THE LIFE OF DAVID SARNOFF. SON OF A RUSSIAN IMMIGRANT; HE WAS ONLY TEN YEARS OLD WHEN HE ASSUMED A MAJOR ROLE IN THE SUPPORT OF HIS FAMILY. DECISION MAKING AND LEADERSHIP WERE WAYS OF INSURING SURVIVAL IN HIS GHETTO AND NEIGHBORHOOD. DAVID'S FATHER MOVED HIS FAMILY TO AMERICA IN THE SUMMER OF 1900. DAVID IMMEDIATELY ENROLLED IN A CLASS FOR IMMIGRANT CHILDREN. WITHIN A YEAR HE WAS READING AND SPEAKING ENGLISH, TO FORTIFY THE FAMILY BUDGET HE BECAME A NEWSBOY AND THEN A NEWSSTAND OWNER. THEN HE BECAME AN ERRAND BOY FOR MARCONI HIMSELF AT THE MARCONI COMPANY OF AMERICA.

BUT WE NEED TO BEGIN IN 1914; WHEN AN ASSASSIN'S BULLET STARTED RADIO'S PERIOD OF GROWTH.

IN EUROPE; AN ANARCHIST KILLED ARCHDUKE FRANCIS FERDINAND OF AUSTRIA. HUGE ARMIES MOBILIZED AND MANNED FRONTIER STATIONS, LATER; MANY NATIONS; INCLUDING THE UNITED STATES WOULD BE ENGULFED IN WORLD WAR I .

IN AMERICA; BUSINESS CONTINUED AS USUAL FOR SOME TIME. IN 1916 AT&T WAS STRINGING LINES WESTWARD AND INSTALLING ITS VACUUM TUBES IN CIRCUITS THAT STRETCHED ACROSS THE ROCKIES. TELEPHONE SERVICE FROM COAST TO COAST BECAME AVAILABLE. A FEW INDUSTRIES BEGAN TO CONVERT TO THE MANUFACTURE OF 3

MILITARY SUPPLIES FOR THE ALLIES. MAKERS OF RADIO PARTS RECEIVED SPECIAL ENCOURAGEMENT. IN THE EVENT OF OUR BEING DRAWN INTO THE WAR; THERE WOULD BE A NEED FOR ENDLESS QUANTITIES OF VACUUM TUBES; THOSE MARCONI"OWN ED DIODES WITH GRIDS INVENTED BY DEFOREST; AND ALL OF THEM USING THE FEED-BACK CIRCUIT CREATED BY EDWIN ARMSTRONG. THE SUPPLY OF ALL THESE INVENTIONS WOULD DEPEND ON A MIRACLE OF COOPERATION. HUGGING THEIR PATENTS; THE JEALOUS INVENTORS GLARED AT EACH OTHER; EACH ONE UNABLE TO MOVE WITHOUT PERMISSION FROM THE OTHERS.

ONRUSHING EVENTS CAUSED THE UNITED STATES TO GO ON A WAR FOOTING BASIS;AND THE GOVERNMENT PLACED ORDERS FOR UNDREAMED OF QUANTITIES OF PARTS AND SETS.

WHILE WORKING AS A YOUNG EMPLOYEE AT THE MARCONI COMPANY OF AMERICA YOUNG DAVID SARNOFF RECOGNIZED VERY EARLY THAT ONLY A PEACETIME POOL OF PATENTS WOULD EVER PERMIT THE ART OF RADIO COMMUNICATIONS TO REACH ITS UTMOST POTENTIAL.

DURING THE WAR MANY SOLDIERS BECAME FAMILIAR WITH RADIO COMMUNICATION. WHEN THEY FINALLY CAME HOME, THEY MADE THEIR OWN SETS OUT OF COFFEE CANS AND DOORBELL BATTERIES. THE NATION WAS READY TO DESIGN AND DEVELOP THIS NEW MEANS OF COMMUNICATION. THE BIG QUESTION WAS: PATENTS ! SARNOFF HAD AN ANSWER BUT BEFORE THAT COULD BE CONSIDERED THERE WAS A BIGGER CHALLENGE THAT HAD TO BE DEALT WITH.

FOLLOWING THE WAR A BILL WAS INTRODUCED IN THE HOUSE OF REPRESENTATIVES WHICH PROPOSED THAT RADIO BE MADE THE PEACETIME RESPONSIBILITY OF THE U.S. NAVY.

REACTION WAS PROMPT AND FORCEFUL.

RADIO AMATEURS, DOUGHBOYS BACK FROM THE WAR, SPOKE UP LOUD AND CLEAR AND WROTE LETTERS TO THEIR CONGRESSMEN. THE BILL DIED IN COMMITTEE. THE DEVELOPMENT OF RADIO WOULD NOT BE THREATENED BY MILITARY CONTROL FOR ANOTHER GENERATION.

AT THIS JUNCTURE; THE MARCONI COMPANY OF AMERICA PROPOSED A TRANSACTION THAT WOULD RESULT IN ITS SUICIDE. THE COMPANY WANTED TO GAIN CONTROL OF GE'S ALEXANDERSON ALTERNATOR; THE ONLY KNOWN DEVICE THAT COULD BE COUNTED ON TO PUMP MESSAGES ACROSS THE OCEANS. THE CHAIRMAN OF THE BOARD OF GE; OWEN D. YOUNG; RECOGNIZED THE VALUE OF CONTROLLING METHODS USED TO DISTRIBUTE INTELLIGENCE AND INFORMATION. HE HAD AN IDEA THAT WOULD KEEP THIS POWER IN AMERICAN HANDS.

WORD REACHED YOUNG THAT MARCONI AND HIS OWN GE NEGOTIATORS HAD AGREED UPON A PRICE OF MORE THAN $4 MILLION FOR TWO DOZEN GIANT ALTERNATORS. WLTH THEM IN OPERATION; THE BRITISH COULD GIRDLE THE EARTH AND DOMINATE THE COMMUNICATIONS INDUSTRY. YOUNG ACTED QUICKLY; WRITING A LETTER TO A FRIEND; A YOUNG ACTING SECRETARY OF THE NAVY NAMED FRANKLIN D. ROOSEVELT .

IN SWIFT SUCCESSION; GIANT STEPS WERE TAKEN TO PROTECT AMERICAN INTERESTS. ROOSEVELT ASKED HIM NOT TO SIGN ANY AGREEMENT WITH ANY FOREIGN CORPORATION UNTIL GE HAD CONFERRED WITH WASHINGTON. YOUNG WAS DELIGHTED TO OBLIGE.

SOME MEETINGS WERE HELD, AND THE RESULT WAS THAT YOUNG WAS OFFICIALLY ENCOURAGED TO CREATE A COMMUNICATIONS EMPIRE HE HAD VISUALIZED FROM THE BEGINNING. THE NEW CORPORATION WOULD OWN ALL THE PATENTS IT WOULD EVER NEED. IT WOULD BUY OUT THE AMERICAN MARCONI COMPANY AND THUS LIBERATE U.S. COMMUNICATIONS FROM A FOREIGN MONOPOLY AND AT THE SAME TIME ACQUIRE VALUABLE LICENSES.

CONSIDERABLE ENCOURAGEMENT CAME FROM WASHINGTON. AGREEMENTS WERE DRAWN; AND ON JUNE 30; 1921; DOCUMENTS WERE SIGNED IN THE INTERESTS OF PATRIOTISM AND PROFITS. THE NEW CORPORATION WOULD BE CALLED THE RADIO CORPORATION OF AMERICA - RCA.

AMERICAN MARCONI WAS FINISHED. AFTER A MONTH OF HARD NEGOTIATING, ALL THEIR OPERATIONS AND ASSETS WERE TRANSFERRED TO RCA. THE MARCONI EX"PRESI DENT, EDWARD J. NALLY, BECAME RCA'S FIRST PRESIDENT, AND OWEN D. YOUNG BECAME ITS CHAIRMAN.

ONE NEW EMPLOYEE, BY WAY OF THE MARCONI TAKE-OVER, WAS YOUNG, RESTLESS DAVID SARNOFF. HE WAS STRATEGICALLY PLACED AS MANAGER OF THE RCA COMMERCIAL DEPARTMENT. NOW HE WAS IN A POSITION TO PULL OUT A MEMO HE HAD WRITTEN IN 1915, AS A BRAZEN YOUNG EMPLOYEE WHO FELT THERE WAS A WAY TO MARKET RADIO FOR THE BENEFIT OF THE PUBLIC AND BECOME A PROFITABLE VENTURE FOR THE CORPORATION.

THIS MEMO FROM YOUNG DAVID SARNOFF WAS ADDRESSED TO HIS BOSS; EDWARD J. NALLY; GENERAL MANAGER OF THE MARCONI COMPANY OF AMERICA. IN SUMMARY THE MEMO TOLD OF A SIMPLE 'RADIO MUSIC BOX' WHICH SARNOFF ENVISIONED THAT WOULD BECOME A HOUSEHOLD UTILITY IN THE SAME SENSE AS THE PIANO OR PHONOGRAPH. THE BOX WOULD HAVE A RECEIVER WHICH WOULD BE CHANGEABLE WITH THE THROWING OF A SWITCH. IT WOULD INCLUDE AMPLIFYING TUBES AND A LOUDSPEAKER TELEPHONE. IT WOULD BE ABLE TO RECEIVE CONCERTS; LECTURES; MUSIC AND RECITALS. SARNOFF RECOMMENDED MAKING THESE BOXES AND SELLING THEM FOR AROUND $75.00 AND USING THE PROFITS TO BUILD AND OPERATE BROADCASTING STATIONS.

DAVID SARNOFF TOOK THIS MEMO OUT OF HIS FILE AND BROUGHT IT TO THE ATTENTION OF HIS NEW BOSS, OWEN D. YOUNG.

THE PRESIDENT OF THE NEW RCA THREW SARNOFF A BONE - $2,000 TO BUILD ONE EXPERIMENTAL MUSIC BOX. THE NOTION OF ENTERTAINMENT WAS STILL BEYOND THE MINDS OF CORPORATE

EXECUTIVES . IT IS HARD TO REALIZE THAT THE BUILDING OF A NEW COMMUNICATIONS AGE AND EMPIRE TOOK PLACE AGAINST SUCH A BACKGROUND OF INDUSTRIAL DISTRESS.

WESTINGHOUSE, IN PITTSBURGH; WAS FACED WITH A COMPLETE SHUTDOWN FOLLOWING THE WAR UNLESS THEY COULD FIND A QUICK SOLUTION TO THEIR READJUSTMENT DILEMMA. RCA'S PATENT ROUNDUP HAD SWEPT IN MOST EVERYTHING EXCEPT THOSE ISSUED TO PROFESSOR FESSENDEN. THOSE PATENTS WERE CONTROLLED BY THE HEIR OF ONE OF HIS BACKERS WHO LIVED CLOSE TO THE WESTINGHOUSE PLANT. THE HEIR EAGERLY AGREED TO THE FINANCIAL ARRANGEMENTS OFFERED BY WEST INGHOUSE.

THEN WESTINGHOUSE REPRESENTATIVES APPROACHED MAJOR EDWIN H. ARMSTRONG; WHO WAS HONORABLY DISCHARGED FROM THE SIGNAL CORP AND WHO HAD JUST RETURNED FROM FRANCE WITH A NEW CIRCUIT PATENTED WHILE HE WAS ABROAD. HLS NEW CIRCUIT WAS CALLED THE "SUPERHETERODYNE CIRCUIT" AND IT WAS MANY MORE TIMES POWERFUL THAN HIS EARLIER FEEDBACK CIRCUIT. WESTINGHOUSE OFFERED HIM $335;000 AND HE ACCEPTED. WESTINGHOUSE WAS IMMEDIATELY BACK IN THE BALLGAME.

STEP TWO IN THE WESTINGHOUSE RECOVERY WAS THE CONVERSION OF A POINT-TO-POINT EXPERIMENTAL STATION INTO ONE DESIGNED TO SERVE THE ENTIRE COMMUNITY. THESE EFFORTS WERE AIDED BY TWO TALENTED ENGINEERS; FRANK CONRAD AND D.G. LITTLE. CONRAD HAD BEEN A RADIO BUFF BEFORE THE WAR AND LITTLE WAS A HAM OPERATOR FROM KALAMAZOO.

WITH THE WAR OVER CONRAD WAS ONE OF THE FIRST TO PUT HIS OLD TRANSMITTER BACK ON THE AIR. OTHER EXPERIMENTERS ACROSS THE NATION WERE DOING THE SAME THING. CONRAD DID IT BEST; GOT THE BIGGEST PRESS, AND SOON HE; WESTINGHOUSE AND KDKA WERE FAMOUS. 7

BUT EARLY IN 1919 ARMSTRONG WAS CONCERNED ALMOST ENTIRELY WITH THE QUALITY OF HIS SIGNAL AND THE DISTANCE IT WOULD TRAVEL. NIGHT AFTER NIGHT HE WOULD ENTER HIS GARAGE, TURN ON HIS TRANSMITTER, AND READ FROM NEWSPAPERS INTO THE MICROPHONE. MEN STATIONED AT LISTENING POSTS IN NEARBY AREAS LISTENED AND REPORTED ON THE QUALITY OF RECEPTION.

A DEPARTMENT STORE IN PITTSBURGH, ALERT TO A POTENTIAL PROFIT; REALIZED THAT PEOPLE WHO MIGHT WANT TO LISTEN TO CONRAD MIGHT BE WILLING TO BUY A READY-MADE RADIO. THE STORE RAN AN AD IN THE PITTSBURGH SUN OFFERING SETS AVAILABLE FOR $10.00 AND UP.

THAT SAME DAY ENGINEER CONRAD AND A WESTINGHOUSE VICE-PRESIDENT HAD READ THE AD AND BOTH HAD COME TO THE CONCLUSION THAT WESTINGHOUSE COULD MANUFACTURE RADIO SETS.

WAS THIS THE BIG OPPORTUNITY? DID PEOPLE REALLY WANT TO TURN A SWITCH AND LISTEN TO MUSIC? TIME WOULD TELL, BUT FIRST AN OFFICIAL DECISION WAS TO BE MADE TO INSTALL A NEW TRANSMITTER OF GREATER POWER AND TO ESTABLISH A STATION DESIGNED FOR PUBLIC ENTERTAINMENT AND SERVICE. OPENING DAY WAS SET TO COINCIDE WITH THE BIGGEST NEWS STORY OF THE YEAR, THE PRESIDENTIAL ELECTION OF 1920.

THE PITTSBURGH POST HAD AGREED TO TELEPHONE WIRE SERVICE REPORTS AS THEY CAME OVER THE TICKER. AT THE LAST MINUTE, A LICENSE ARRIVED FROM WASHINGTON NAMING THE NEW STATION KDKA. WORKMEN TOOK SO LONG TO HOOK UP THE EQUIPMENT THAT CONRAD AND LITTLE MADE THEIR INAUGURAL BROADCAST WITHOUT A SIGNAL TEST.

A WESTINGHOUSE PUBLICITY MAN COPIED DOWN THE RETURNS AND READ THEM OVER THE AIR. BETWEEN REPORTS, HE PLAYED PHONOGRAPH RECORDS. BY MIDNIGHT EVERYONE KNEW THAT SENATOR WARREN G. HARDING HAD WON A LANDSLIDE VICTORY. BUT KDKA 8

LISTENERS KNEW IT FIRST, AND THEY HEARD THE NEWS WHILE SITTING IN THEIR WARM, DRY HOMES WHILE OTHER CITIZENS STOOD IN THE RAIN READING NEWSPAPER BULLETIN BOARDS.

NEWSPAPERS ALL OVER AMERICA REPORTED THE STORY OF HOW KDKA COVERED THE ELECTION RETURNS.

AS PUBLICITY SPREAD, OTHER STATIONS OPENED ELSEWHERE, FROM COAST TO COAST, CITIES BEGAN TO DEVELOP THEIR RADIO STATIONS, BASED USUALLY ON SOME ENTHUSIASTIC AMATEUR WITH A PILE OF PHONOGRAPH RECORDS AND A TRANSMITTER SURROUNDED BY A PEPPERING OF INDIVIDUAL OWNERS OF RECEIVERS.

MEANWHILE, OWEN D. YOUNG AT RCA; WAS ASKING: WHY NOT BRING WESTINGHOUSE INTO THE FAMILY? THEY HAD THINGS TO OFFER AS WELL AS TO GAIN. EVERYONE COULD BENEFIT. NOBODY MENTIONED THAT RCA MIGHT BE BREAKING THE LAW.

IN MANHATTAN; TH I RTY-^YE ARNOLD DAVID SARNOFF WAS NOT IMPRESSED BY THIS AFFILIATION. HE WAS DETERMINED TO MAKE A NEW NAME; RCA, THE MOST SIGNIFICANT TRADEMARK IN THE NATION. ANXIOUSLY, HE SEARCHED FOR SOME EVENT THAT WOULD RIVET THE PUBLIC'S ATTENTION ON RCA AND ON HIS PRODUCT. HE WANTED A REAL EARTHSHAKER, A GENUINE GRABBER. HE FOUND IT IN A MATCH FOR THE WORLD HEAVYWEGHT BOXING CHAMPIONSHIP BETWEEN JACK DEMPSEY AND THE FRENCH CHAMPION GEORGES CARPENTIER.

TWO OBSTACLES INTERVENED. HE HAD NO RADIO STATION. HE HAD NO AUDIENCE.

BUT GE HAD JUST COMPLETED A POWERFUL TRANSMITTER FOR THE US NAVY THAT WAS READY FOR DELIVERY. WITH THE ASSISTANCE OF HIS FRIEND, FRANKLIN D. ROOSEVELT, SARNOFF GOT THE NAVY TO COOPERATE. HE FILED FOR A BROADCASTING LICENSE AND ORDERED THE TRANSMITTER SHIPPED TO THE HOBOKEN RAILWAY YARDS IN NEW JERSEY, 2\ MILES FROM THE FIGHT ARENA. SWIFTLY AN AERIAL WAS DRAPED BETWEEN TWO RAILWAY TOWERS. THE PHONE COMPANY GRUDGINGLY PROVIDED A WIRE CONNECTING THE RINGSIDE WITH THE TRANSMITTER. A NEARBY SHACK PROVIDED HOUSING FOR ALL OF THE EQUIPMENT. SARNOFF HAD HIS STATION.

NOW HE WANTED LISTENERS; ENTHUSIASTIC LISTENERS"~LISTENERS WHO WOULD LATER BE CALLED "INFLUENTIALS . " A FEW PHONE CALLS PROVIDED THEM. ONE CALL WENT TO ROOSEVELT; WHO PROVIDED THE SPONSORSHIP OF THE NAVY LEAGUE. ANOTHER WENT TO ANNE MORGAN; DAUGHTER OF J.P. MORGAN AND HEAD OF THE AMERICAN COMMITTEE FOR DEVASTATED FRANCE; WHO PROMISED SUPPORT BY HER GROUP. A THIRD CALL WENT TO MARCUS LOEW, OWNER OF A CHAIN OF

MOTION-PICTURE HOUSES, WHO AGREED TO CONTRIBUTE HIS AUDITORIUM FOR THE NIGHT OF THE FIGHT AND CARRY THE BROADCAST "LIVE" ON LOUDSPEAKERS PLAYING FOR PAYING CUSTOMERS. Miss MORGAN'S COMMITTEE AND THE NAVY LEAGUE WOULD GET A SHARE OF THE RECEIPTS. LOEW'S THEATERS WOULD GET A SURE-FIRE BOX-OFFICE HIT. RCA WOULD GET PUBLICITY. THAT WAS ONLY THE BEGINNING. WHERE THEATERS WERE NOT AVAILABLE, GROUPS OF PEOPLE RENTED THEIR OWN HALLS, SCHOOL AUDITORIUMS AND CLUBS.

ON FIGHT NIGHT, JULY 2, 1921, MAJOR ANDREW WHITE, EDITOR OF THE RADIO MAGAZINE "WlRELESS AGE", WAS THE FIGHT ANNOUNCER; WITH SARNOFF SITTING AT HIS SIDE. THE SIGNAL WENT OUT OVER WJZ AND WJY. THE ACTION WAS FAST, BUT WAS IT TOO FAST FOR THE UNTRAINED EARS OF CAPTIVE LISTENERS? NOBODY WOULD KNOW UNTIL MORNING.

IT WAS PERFECT! AIDED BY WHITE'S DESCRIPTION OF BLOWS STRUCK AND COUNTERED, EACH LISTENER FILLED IN THE BLANKS, CREATING IN HIS OWN MIND WHAT TOOK PLACE IN THE RING. APPROXIMATELY 200,000 PATRONS OF CLUBS AND THEATERS, NOT TO MENTION UNCOUNTED SET OWNERS, WERE THRILLED BY THE FIRST BOXING BROADCAST. 10

WHEN IT WAS OVER, EVERYONE IN BROADCASTING COULD FEEL THE DAWNING OF A NEW AGE. DEEP IN THEIR BONES THEY KNEW THAT THE 20'S WOULD BE A TIME OF PROGRESS. MOST OF ALL, MEMBERS OF THE PATENT POOL; GE, AT&T, WESTINGHOUSE, AND ALL THE REST, SAW THEIR PLACES OF POWER AS UNASSAILABLE.

SO LET THE BOOM COME ! RCA WAS POISED TO CLAIM THE LION'S SHARE. IT SEEMED IMPOSSIBLE THAT SO HAPPY A DREAM COULD TURN INTO A NIGHTMARE.

IN THIS SAME TIME PERIOD, THE GOVERNMENT THREW RCA A HAYMAKER. THE ATTACK CAME UNEXPECTEDLY FROM THE FEDERAL TRADE COMMISSION. THE COMPLAINT DECLARED THAT MEMBERS OF THE RCA ALLIANCE HAD "CONSPIRED FOR THE PURPOSE OF, AND WITH THE EFFECT OF, RESTRAINING COMPETITION AND CREATING A MONOPOLY." RCA HAD BEEN SHAPED UNDER THE GOVERNMENT'S EYE AND EVEN HAD A MILITARY REPRESENTATIVE ON ITS BOARD OF DIRECTORS. SURELY, THE CHARGE WAS A MISTAKE.

ON THE CONTRARY, THE FTC LAWYERS WERE GRIMLY SERIOUS.

BUT THERE WAS MORE. THE ULTIMATE BLOW CAME FROM WITHIN THE CORPORATE BROTHERHOOD, FROM THE AMERICAN TELEPHONE & TELEGRAPH COMPANY ITSELF. THIS HANKY-PANKY COULD NOT BE TOLERATED AND RCA REACTED WITH THREATS OF LEGAL ACTION. AN ARBITRATOR WAS APPOINTED TO STUDY THE MATTER.

ONE FACT STOOD OUT ABOVE ALL OTHER ARGUMENTS: BOTH AT&T AND RCA WANTED TO CONTROL THE LION'S SHARE OF THE BROADCASTING BUSINESS. BOTH WANTED TO MARKET ITS OWN SETS TO THE MILLIONS WHO WERE THRONGING THE RADIO STORES.

THE ARBITRATOR DECIDED IN FAVOR OF RCA.

THE TELEPHONE GIANT WAS DOWN BUT NOT OUT. IN THE FACE OF WHAT APPEARED TO BE TOTAL VICTORY FOR RCA, AT&T RALLIED AND 11

ATTACKED AGAIN WITH A BRAND NEW STUDY OF THE PACT THAT BOUND THE PRINCIPALS TOGETHER IN THE CROS S -|_ I C EN S I N G POOL. IT WAS WRITTEN BY JOHN W. DAVIS, ONE OF AMERICA'S MOST DISTINGUISHED LAWYERS, A FORMER U.S. SOLICITOR GENERAL.

WITH WORDS AS WEIGHTY AS IF THEY HAD COME FROM THE SUPREME COURT, HE ASSERTED THAT THE PACT ITSELF WAS ILLEGAL. HE SAID THAT ALL CONCERNED HAD BROKEN THE LAW. ALL WERE GUILTY OF CONSPIRING TO ACT IN RESTRAINT OF TRADE. THE NEW CHARGE TURNED THE TABLES ON RCA.

OWEN D. YOUNG, WHO HAD MASTERMINED THE CREATION OF RCA. TOOK STEPS TO PROP UP HIS CONFEDERATION. HLS ASTUTE JUDGEMENT DICTATED A SETTLEMENT INSTEAD OF A FIGHT.

MONTHS OF HAGGLING FINALLY PRODUCED A RECIPE FOR PEACE BETWEEN THE GIANTS. A SEPARATE COMPANY WOULD BE ESTABLISHED, OWNED JOINTLY BY RCA, GE AND WESTINGHOUSE. IT WOULD OWN, OPERATE AND CONTRACT WITH STATIONS TO OFFER A NATIONWIDE TOLL SERVICE TO ADVERTISERS. AT LONG LAST, THE ADVERTISER'S DOLLAR WAS RECOGNIZED AS THE ONLY PRACTICAL MEANS OF SUPPORT.

AT&T WOULD SUPPLY THE TELEPHONE LINES NEEDED TO TIE THE NETWORK TOGETHER, WITH THE NEW COMPANY PAYING STANDARD FEES.

EVERYBODY WAS HAPPY. AT LAST, IN 1926, DAVID SARNOFF HAD HIS NETWORK, THE NATIONAL BROADCASTING COMPANY. A FULL-PAGE AD IN THE NEW YORK TIMES ANNOUNCED THE GOOD NEWS.

THE NEW NATIONAL BROADCASTING COMPANY THREW A WING-DING AT THE WALDORF ASTORIA THAT MADE HISTORY. THE GALA LASTED FOR FOUR HOURS AND EVERY WEARY GUEST AGREED THAT THE NEW BROADCASTING COMPANY WAS WELL LAUNCHED. 1?

BY 1927 NBC HAD TWO NETWORKS, CALLED THE RED AND THE BLUE. To PREVENT MISTAKES, ALL PLUGS LEADING TO ONE NETWORK'S STATIONS WERE PAINTED RED, AND THOSE FOR THE OTHER NETWORK WERE PAINTED BLUE. THUS, THE RED AND THE BLUE NETWORKS. SEVERAL YEARS LATER THE GOVERNMENT STEPPED IN AND ORDERED NBC TO DIVEST ITSELF OF ONE OF THE NETWORKS. THEY SOLD THE BLUE NETWORK TO EDWARD J. NOBLE, THE LIFESAVER CANDY ENTREPRENEUER, FOR $ 8 MILLION. IT BECAME THE AMERICAN BROADCASTING COMPANY.

ALSO IN 1927 CONGRESS BEGAN WRESTLING WITH THE PROBLEMS OF HOW MUCH CONTROL SHOULD BE PLACED ON THIS NEW MEANS OF COMMUNICATION. ONE OF THE BIGGEST PROBLEMS INVOLVED INTERFERENCE BETWEEN STATIONS OPERATING ON THE SAME FREQUENCIES. ONE CITY HAD TWENTY"FIVE STATIONS, ALL ON THE SAME CHANNEL.

THE FTC CONTINUED TO CHALLENGE THE NEW INDUSTRY WITH CHARGES OF MONOPOLY AND RESTRAINT OF TRADE VIOLATIONS AND MORE AND MORE PEOPLE QUESTIONED THE WISDOM OF HAVING THE DEPARTMENT OF COMMERCE AS THE GUIDING GOVERNMENT AGENCY.

IN 1930 DAVID SARNOFF BECAME PRESIDENT OF THE RADIO CORPORATION OF AMERICA. ALREADY HIS COMPANY HAD BOUGHT AND ASSIMILATED THE VICTOR TALKING MACHINE COMPANY. HE WAS ANTICIPATING OTHER ACQUISITIONS WHEN THE U.S. DEPARTMENT OF JUSTICE FILED AN ANTITRUST SUIT, DEMANDING THAT THE ALLIANCE BETWEEN RCA, WESTINGHOUSE, AND GENERAL ELECTRIC BE DI SSOLVED.

DAY AND NIGHT MEETINGS ENSUED. DEALS WERE MADE, PAPERS SIGNED AND A PROPOSAL DELIVERED TO THE DEPARTMENT OF JUSTICE. WITH FEDERAL APPROVAL, ALL CONCERNED ACCEPTED A CONSENT DECREE, AND THE ANTITRUST TRIAL WAS CANCELED. AT LAST RCA WAS ITS OWN BOSS AND THE BOSS OF RCA WAS AMBITIOUS DAVID SARNOFF. NOW HE COULD MOVE WITHOUT INTERFERENCE FROM JEALOUS PARTNERS. 13

IN 1927 CONGRESS ESTABLISHED THE FEDERAL RADIO COMMISSION AND CHARGED IT WITH THE RESPONSIBILITY OF UNTANGLING ALL OF THESE PROBLEMS. IT TOOK SEVEN YEARS. IN 1934 CONGRESS PASSED THE COMMUNICATIONS ACT OF 1934, WHICH GUIDED THE INDUSTRY FOR 62 YEARS.

THEN THERE APPEARED ON THE SCENE A GROUP OF ADVENTURERS WHO WERE ASKING WHY NBC SHOULD NOT HAVE SOME COMPETITION. THEY HAD VERY LITTLE MONEY AND NO STATIONS WHILE NBC HAD LOTS OF MONEY AND A GOOD LINE"UP OF STATIONS. THESE DREAMERS SEARCHED FOR INVESTORS AND AFTER MANY DISCOURAGING PROBLEMS THEY JUST HAPPENED TO LAND A SPONSOR FOR THEIR FLEDGLING LITTLE NETWORK IN PHILADELPHIA " THE CONGRESS CLGAR COMPANY "- MAKERS OF LA PALINA ClGARS. A YOUNG; ASSISTANT ADVERTISING MANAGER OF THE CIGAR COMPANY PLACED SOME BUSINESS ON THE NEW NETWORK WHICH WAS NAMED COLUMBIA BROADCASTING SYSTEM. THE ADVERTISING MAN'S NAME WAS WILLIAM PALEY AND HIS FATHER WAS THE PRESIDENT OF THE CIGAR COMPANY. HIS FATHER DIDN'T THINK MUCH OF THE IDEA OF TRYING TO SELL CIGARS BY RADIO BUT AFTER THE FIRST PROGRAM THE SALES OF LA PALINA CIGARS JUMPED NOTICEABLY. THE YOUNG ADVERTISING MANAGER BECAME INTERESTED IN THE POTENTIAL OF THE NEW NETWORK AND AFTER BORROWING THE MONEY FROM HIS FATHER HE BOUGHT THE YOUNG NETWORK. IN 1928 CBS BECAME A SERIOUS COMPETITOR TO NBC. ONE OF PALEY'S FIRST MOVES WAS TO ESTABLISH A CLOSE RELATIONSHIP WITH ADOLPH ZUKOR, FOUNDER OF PARAMOUNT PICTURES. PALEY SOLD ZUKOR 49% OF CBS AND IN EXCHANGE HE RECEIVED A BUNDLE OF PARAMOUNT STOCK AND ACCESS TO MANY HOLLYWOOD STARS.

EARLY ON, PALEY BELIEVED THERE WAS A PLACE FOR EYEWITNESS TYPE OF NEWS REPORTING. THAT NOTION WOULD COME INTO FULL BLOOM A FEW YEARS LATER, IN SEPTEMBER OF 1935, WHEN CBS HIRED TWENTY-SEVEN YEAR-OLD EDWARD R. MURROW, WHO WAS GIVEN 14

THE TITLE OF "DIRECTOR OF TALKS", AND WAS DISPATCHED TO LONDON.

THE ONLY "NEWSMEN" WHO COUNTED FOR ANYTHING ON RADIO IN THE EARLY 1930'S WERE THE SO-CALLED COMMENTATORS, WHOSE REPORTING CONSISTED MAINLY OF WHAT THEY READ IN THE MORNING NEWSPAPER OR PICKED UP FROM WIRE SERVICES. THEY WERE NOT HIRED TO BE REPORTERS. THEY WERE TO PURVEY ANECDOTES AND THOUGHTS "- CONTROVERSIAL ENOUGH TO ATTRACT LISTENERS AND SAFE ENOUGH TO AVOID LAWSUITS OR GOVERNMENT REPRESSION.

AS TENSIONS BEGAN TO MOUNT IN EUROPE, BOTH NBC AND CBS TRIED TO CONVEY TO THE AMERICAN PEOPLE THE SERIOUSNESS OF THE SITUATION.

REPORTING WAS THE KEY. FAST, KNOWLEDGEABLE, EXPERIENCED REPORTING BASED ON FIRSTHAND OBSERVATION, NOT JUST WHAT H.V. KALTENBORN OR LOWELL THOMAS HAPPENED TO THINK. CBS HAD TWO NEW VOICES IN EUROPE WHO COULD GIVE COOL, RATIONAL DESCRIPTIONS OF WHAT WAS TAKING PLACE - EDWARD R. MURROW AND WILLIAM L. SHIRER. FOR THE NEXT TEN YEARS THE MURROW BOYS, AS THEY BECAME KNOWN, WOULD INTRODUCE RADIO JOURNALISM IN A WAY THAT HAS NEVER BEEN MATCHED.

THE MURROW BOYS INCLUDED EDWARD R. MURROW, WILLIAM L. SHIRER, ERIC SAVEREID, LARRY LESUEUR, CHARLES COLLINGWOOD, HOWARD K. SMITH, RICHARD C. HOTTELET, WINSTON BURDETT AND BILL DOWNS.

THE GOLDEN DAYS OF RADIO ACTUALLY LASTED A LITTLE MORE THAN A DECADE - FIFTEEN YEARS AT THE MOST. RADIO STATIONS SPRANG UP ALL OVER THE COUNTRY. SMALL TOWN STATIONS OPERATED BY SMALL TOWN BUSINESS PEOPLE. IN THE LARGER CITIES ENTREPRENEURS POOLED THEIR RESOURCES AND ESTABLISHED STATIONS. NOBODY HAD ANY IDEA OF GETTING RICH. THE CHALLENGE WAS TO GET A RADIO STATION ON THE AIR AND THEN SEE WHAT KIND 15

OF LOCAL SERVICE COULD BE PROVIDED THAT WOULD KEEP THE CITIZENS INFORMED AND ENTERTAINED. NO LICENSE HOLDER OR ANYONE WHO EVER SPOKE INTO A MICROPHONE WOULD HAVE DREAMED OF USING ANY KIND OF PROFANITY OR OFFENSIVE LANGUAGE. PHONOGRAPH RECORDS, SOLOISTS, QUARTETS, CHURCH CHOIRS MADE UP MOST OF THE TALENT. MOST STATIONS SIGNED ON IN THE LATE AFTERNOON AND THEN SIGNED OFF AROUND 11 O'CLOCK OR MIDNIGHT.

INDIANA HAD FIFTEEN STATIONS THAT WENT ON THE AIR DURING THE 20's. THE FIRST STATIONS IN INDIANA INCLUDED WSBT, SOUTH BEND, WBAA, PURDUE AT WEST LAFAYETTE AND WGBF, EVANSVILLE. THEY FIRST BEGAN BROADCASTING IN 1922. OTHER INDIANA CITIES THAT CLAIMED RADIO STATIONS INCLUDED ELKHART, HAMMOND, FORT WAYNE, MUNCIE, INDIANAPOLIS; ANDERSON; RICHMOND AND TERRE HAUTE.

AS THE TALENT AND PROGRAMS BECAME POPULAR THE SALE OF SETS ALSO GREW RAPIDLY. AMERICA WAS HUNGRY AND READY FOR ENTERTAINMENT. RADIO BECAME THE CENTER OF THE FAMILY LIVING ROOM " A PLACE WHERE EVERYONE GATHERED AND LISTENED TO DRAMA; COMEDY; SERIALS, SPORTS PROGRAMS, AND MUSIC OF ALL TYPES. RADIO ENDEAVORED TO BE ALL THINGS TO ALL PEOPLE AND IT DID AN AMAZING JOB.

IN THOSE EARLY DAYS RADIO WAS A POLITICAL TOOL JUST WAITING FOR THE RIGHT PERSON. IN 1932 THAT PERSON APPEARED ON THE SCENE AT THE INAUGURATION OF FRANKLIN DELANO ROOSEVELT. FDR BECAME A MASTER OF RADIO TECHNIQUE AND HIS "FIRESIDE CHATS" BECAME AN IMPORTANT PART OF OUR HISTORY.

CHARLES OSGOOD WHO REPLACED CHARLES KURAULT AS HOST ON "SUNDAY MORNING" ON CBS, ALWAYS ENDS HIS SHOW WITH THE STATEMENT: "I'LL SEE YOU ON THE RADIO." CHARLEY IS A TRUE RADIO MAN AND HIS WORDS ARE EXACTLY WHAT RADIO STARTED OUT TO DO. RADIO PROVIDED THE MEANS BY WHICH WORDS, OR SOUNDS, COULD BE TRANSMITTED SO THAT THE HUMAN MIND, THE HUMAN 16

IMAGINATION, COULD DEVELOP A PICTURE. TELEVISION TOOK THAT AWAY.

PERHAPS THE BEST EXAMPLE OF RADIO'S POWER OF CREATING PICTURES IN THE MIND WAS THE HALLOWEEN BROADCAST OF ORSON WELLES' "THE WAR OF THE WORLDS" ON OCTOBER 30, 1938, ON MERCURY THEATER. HIS ENACTMENT OF THE H.G. WELLS PLAY SENT FEAR THROUGHOUT HOUSEHOLDS ACROSS AMERICA, CAUSING PANIC AND HYSTERIA. EVEN THOUGH DISCLAIMERS AIRED AT THE START AND END OF THE PROGRAM, PEOPLE REACTED TO THE SUPPOSED INVASION. IT WAS A TIME WHEN WAR TENSIONS IN EUROPE WERE BEGINNING TO MAKE MANY AMERICANS NERVOUS. ISOLATIONISM WAS BEING PREACHED BUT MOST AMERICANS HAD THE JITTERS.

SWITCHBOARDS ALONG THE EAST COAST LIT UP AND WERE SWAMPED. POLICE STATIONS IN NEW JERSEY WERE VISITED BY FRENZIED REFUGEES WHO CLAIMED THEY HAD SEEN MARTIANS WITH THEIR OWN EYES. IT CREATED UNBELIEVABLE CHAOS.

THE GOLDEN DAYS OF RADIO REACHED ITS PEAK DURING THE 1930'S AND THROUGHOUT WORLD WAR II. HOLLYWOOD STARS THAT LOOKED DOWN THEIR NOSES AT RADIO IN THE EARLIER DAYS FOUND A NEW STAGE IN FRONT OF THE MICROPHONE. THE BIG DANCE BANDS THRIVED ON THE REMOTE BROADCASTS FROM HOTEL BALLROOMS AND DANCE CASINOS. THE RECORD INDUSTRY DEPENDED ON RADIO STATIONS PLAYING THE POPULAR RECORDINGS OF THE DAY. AMERICA HAD BECOME A LAND OF LISTENERS.

DAVID SARNOFF HAD BEEN WAITING FOR THE RIGHT MOMENT TO ANNOUNCE THAT RCA WAS READY TO ENTER THE TELEVISON AGE, BUT PEARL HARBOR OCCURRED AND AMERICA BECAME "AN ARSENAL FOR DEMOCRACY" AND THE BIG ANNOUNCEMENT ABOUT TELEVISION HAD TO BE PUT ON THE SHELF.

ANOTHER COMMUNICATION CASUALTY WAS FREQUENCY MODULATION FM. DAVID SARNOFF HAD ONCE TOLD EDWIN ARMSTRONG, "I WISH 17

SOMEONE WOULD COME UP WITH A LITTLE BLACK BOX TO ELIMINATE STATIC." AFTER YEARS OF RESEARCH, ARMSTRONG CAME UP WITH FM. HE HAD EXPECTED RCA JUMP ON HIS NEW IMPROVEMENT AND TO BUY HIS PATENTS, BUT THE RADIO GIANT WAS ALREADY TOO COMMITTED TO TELEVISION AND THEY TURNED A DEAF EAR TO ARMSTRONG'S FM. SO HE WENT TO GENERAL ELECTRIC WHICH WELCOMED HIM WITH OPEN ARMS AND IMMEDIATELY MADE PLANS TO GO INTO MASS PRODUCTION OF FM RECEIVERS. THE FCC WAS ALSO PLEASED AND THEY BEGAN MAKING PLANS FOR THE DEVELOPMENT OF FM STATIONS. BUT PEARL HARBOR ENDED THE PLANS. WAR PRIORITIES STOPPED ALL SET MANUFACTURERS EXCEPT FOR THE ARMED FORCES.

ARMSTRONG HAD BEEN A SIGNAL CORPS MAJOR IN WORLD WAR I AND THUS GAVE THE USE OF HIS PATENTS, ROYALTY FREE, TO THE GOVERNMENT. EVERY RADIO-EQUIPPED VEHICLE THAT WENT TO WAR CARRIED AN ARMSTRONG SET, FOR WHICH HE WOULD NEVER RECEIVE A PENNY.

AT THE CONCLUSION OF THE WAR THE COUNTRY WASTED LITTLE TIME IN GETTING TELEVISON AND FREQUENCY MODULATION OFF THE SHELVES AND BACK INTO DEVELOPMENT. BY THE END OF THE 1940'S TELEVISION WAS MAKING ITS DEBUT INTO CITIES ACROSS THE LAND. EVERY TOWN AND CITY ACROSS THE COUNTRY APPLIED FOR FM RADIO STATIONS EVEN THOUGH IT WOULD TAKE SEVERAL YEARS FOR THE SET MANUFACTURERS TO CATCH UP ON THE SUPPLY.

THOSE WHO WERE PART OF THE RADIO ERA FOUND THEMSELVES WONDERING IF RADIO WAS TO BECOME THE FORGOTTEN MIRACLE. THE NEXT THIRTY TO FORTY YEARS PRESENTED A TREMENDOUS CHALLENGE TO RADIO. AS TELEVISION BECAME MORE AND MORE THE FAVORITE MEANS OF COMMUNICATION IN THE AMERICAN HOME, RADIO WENT FROM SERVING A FAMILY GROUP TO SERVING A PERSON. IT BECAME A ONE-ON-ONE MEDIUM OF COMMUNICATION. RADIO HAD TO ACCEPT THE CHALLENGE OF HOW TO BECOME A SPECIFIC THING TO SPECIFIC PEOPLE. 18

BY THE TIME 1980 ROLLED AROUND, RADIO WAS 60 YEARS OLD AND MOST OF THE ACTIVITY WAS ON THE FM BAND. AM LISTENING HAD DROPPED TO AN ALL"TIME LOW, AND AM RADIO STATIONS WERE GOING OUT OF BUSINESS AT RECORD SPEEDS.

THE AM BROADCASTERS HOPED THAT NEW TECHNOLOGY WOULD SOLVE THEIR PROBLEM AND TRIED TO DEVELOP AN AM STEREO THAT WOULD COMPETE WITH THE QUALITY OF FM; BUT IT DIDN'T WORK; AND BESIDES THE YOUNGER AUDIENCE PREFERRED NOT TO BE ASSOCIATED WITH THE AM IMAGE.

DURING THE 80's DE-REGULATION BROUGHT ABOUT SOME CHANGES THAT HELPED RADIO. THE FCC DID AWAY WITH THE RULE THAT REQUIRED THE OWNER OF A STATION TO HOLD ON TO THE STATION FOR AT LEAST THREE YEARS BEFORE HE COULD RESELL THE LICENSE. THIS LED TO A BUYING AND SELLING SPREE THAT LASTED MOST OF THE 80's. THIS "TRAFFICKING" SPREE WAS PROFITABLE TO THOSE SELLING BUT EVENTUALLY IT GOT OUT OF HAND AND THE PRICES FOR STATIONS SKYROCKETED TO THE LEVEL THAT MANY FOUND THEMSELVES OWNING STATIONS THAT WERE ENTIRELY OVER PRICED. THE DEBT WAS KILLING COMPANIES AND FORCING MANY INTO SELLING AT HUGE LOSSES .

IN 1987 THE FCC DROPPED THE FAIRNESS DOCTRINE RULE WHICH REQUIRED THAT STATIONS MAKE TIME AVAILABLE TO GIVE BOTH SIDES OF A CONTROVERSIAL ISSUE. THIS MOVE PROVED TO BE BENEFICIAL TO AM RADIO. SHORTLY AFTER THE FAIRNESS DOCTRINE WAS DROPPED; EDWARD MCLAUGHLIN, A FORMER ABC EXECUTIVE, SAW AND OPPORTUNITY TO CHANGE RADIO FOREVER. HE KNEW THAT NOTHING ELSE WAS WORKING, SO HE INTRODUCED A HIGHLY OPINIONATED RADIO TALK SHOW HOST, KNOWING THAT THE FAIRNESS DOCTRINE WOULD NO LONGER DILUTE PROGRAMMING WITH REBUTTALS. HIS NEW TALK HOST WAS RUSH LIMBAUGH. THE RADIO BUSINESS, AND AMERICA, WERE CHANGED FOREVER.

WHILE RUSH LIMBAUGH WAS GETTING STARTED AND GAINING NATIONAL 19

ATTENTION, FM WAS OFFERING MORE AND MORE CHOICES IN PROGRAMMING. IN 1986 CLASSIC ROCK BECAME POPULAR. THIS WAS SOON FOLLOWED BY MUSIC THAT APPEALED TO THE FANS OF COUNTRY MUSIC. RADIO SEX-THERAPIST, DR. RUTH WESTHEWIMER WENT NATIONAL AFTER A STINT ON WNBC IN THE EARLY 80'S AND SOON BECAME ONE OF THE MOST LISTENED-TO"PERSONALITIES IN AMERICA.

MEANWHILE, IRREVERENT WNBC PERSONALITY DON IMUS WAS MORE POPULAR THAN EVER. IT APPEARED THAT LISTENERS WERE CRAVING UNIQUE PERSONALITIES. IN DETROIT; THEN WASHINGTON; THEN NEW YORK; HOWARD STERN WAS ELEVATED BY HIS LISTENERS AS THE GREATEST RADIO PERSONALITY OF ALL TIME. STERN WAS IRREVERENT; WILLING TO TAKE ON ANYONE AND NOT AFRAID TO SAY ANYTHING ON THE AIR. HE BROUGHT COMMON STREET LANGUAGE TO THE AIRWAVES AND BROKE THE "FORBIDDEN UNWRITTEN RULES OF BROADCASTING". HIS AUDIENCE LOVED IT. STERN STOOD THE HERO FOR THEIR CULTURE AS HE BROKE EVERY TABOO.

STERN BECAME NATIONALLY SYNDICATED AND BEGAN APPEARING IN MARKETS ACROSS THE COUNTRY. THE MORE POPULAR HE BECAME THE MORE HE BECAME A TARGET. HE WAS WARNED BY THE FCC AND THREATENED WITH A SUBSTANTIAL FINE BUT HE CONTINUED WITH HIS "SHOCK JOCK" STYLE. AS OF TODAY THE ISSUE REGARDING HOWARD STERN'S FREEDOM OF SPEECH IS UNRESOLVED.

IN MY OPINION THE REAL DOWNFALL WITHIN THE BROADCASTING INDUSTRY OCCURRED IN 1982 WHEN A FEDERAL DISTRICT COURT IN WASHINGTON, D.C. THREW OUT THE TELEVISION/RADIO CODE OF GOOD PRACTICES WHICH HAD SERVED THE INDUSTRY ON A VOLUNTARY BASIS FOR FIFTY YEARS. AN ENTERPRISING YOUNG LAWYER OF THE FEDERAL TRADE COMMISSION DECIDED TO CHALLENGE A SMALL SECTION OF THE CODE WHICH DEALT WITH THE NUMBER OF COMMERCIALS A STATION COULD BROADCAST WITHIN AN HOUR AND THE NUMBER OF COMMERCIALS THAT COULD BE CARRIED ON A STATION BREAK. EVEN THOUGH THE CODE WAS VOLUNTARY THE GREAT MAJORITY OF RADIO AND TELEVISION BROADCASTERS WERE GUIDED BY THE CODE. THE 20

ATTORNEY'S CASE CHARGED THAT THE COMMERCIAL LIMITATIONS PORTION OF THE CODE WAS IN FACT "RESTRAINT OF TRADE". AS A RESULT THE ENTIRE CODE WAS THROWN OUT. SLNCE THAT DAY EACH INDIVIDUAL BROADCAST LICENSEE IS SUPPOSED TO ESTABLISH ITS OWN INDIVIDUAL CODE. FROM THAT DAY THE DOOR WAS OPENED TO NOT ONLY OVER COMMERCIALIZATION BUT TO THE HOWARD STERNS OF THE WORLD.

WHAT WILL THE EMBOLDEN DAYS BRING? THE TECHNOLOGY FOR THE NEW CENTURY IS ALREADY IN PLACE. THE ERA OF DIGITAL TECHNOLOGY IS ALREADY WITH US. ADVANCED TELEVISION WITH HIGH DENSITY TV IS READY TO GO. BUT THE BIG QUESTION IS: WHAT WILL THE PROGRAMMERS BRING TO THIS NEW TECHNOLOGY? WLLL THE PROGRAMMERS USE THE TECHNOLOGY TO IMPROVE THE WORLD IN WHICH WE LIVE OR WILL THE PROGRAMMERS LET PROFITS BE THE SINGLE MOST IMPORTANT FACTOR?

IN 1962 EDWARD R. MURROW ANSWERED THIS QUESTION WITH A CHALLENGE. LITTLE DID HE KNOW THAT HIS WORDS WOULD BE SO APPROPRIATE AS RADIO AND TELEVISION FACE THE YEAR 2,000. MURROW WAS BEING HONORED BY HIS PEERS WITH THE DISTINGUISHED SERVICE AWARD OF THE NATIONAL ASSOCIATION OF BROADCASTERS. WITH A VERY SOBER FACE HE UTTERED THESE WORDS:

"A COMMUNICATIONS SYSTEM IS TOTALLY NEUTRAL. IT HAS NO CONSCIENCE, NO PRINCIPLE; NO MORALITY. IT HAS ONLY A HISTORY. IT WILL BROADCAST FILTH OR INSPIRATION WITH EQUAL FACILITY. IT WILL SPEAK THE TRUTH AS LOUDLY AS IT WILL SPEAK A FALSEHOOD. IT IS; IN SUM, NO MORE OR NO LESS THAN THE MEN AND WOMEN WHO USE IT.""