Memorandum   of   Minutes

of   the

Advisory   Council

of   the

  National   Broadcasting   Company  


First   Meeting
February  18th,  1927


Privately  Printed
by  Order  of
The  Council

This is an HTML version of the original document, Memorandum of Minutes of the Advisory Council of the National Broadcasting Company: First Meeting February 18th, 1927, which recorded the inaugural gathering of the group.

This HTML version is based on a photocopy of the original 42-page publication. It incorporates all of the original contents, keeping as much as possible the layout of the original document.

Only  30  Copies  Printed

This  is  No.  7

For  The  Personal  Use  of

Edwin  Anderson  Alderman

T A B L E    O F    C O N T E N T S


Statement by Mr. Owen D. Young

Questionnaire Prepared by Mr. Young

President Aylesworth's Report

Synopsis of Program Features from November 1st, 1926, to February 18th, 1927

Circuit Routing for President Coolidge's Washington's Birthday Address, February 22nd, 1927

Newspaper Comment on the Formation of the Broad cast Committee for Churches

Facsimile of Advertisement Announcing Formation of the National Broadcasting Company

THE first meeting of the Advisory Council of the National Broadcasting Company was held, pursuant to due notice, at the temporary offices of the company, 195 Broadway, New York, N. Y., on Friday, February 18, 1927, at 2:30 o'clock.

    There were present:
Also, by invitation, Mr. M. H. Aylesworth, president of the National Broadcasting Company, and Stuart M. Crocker, who acted as Temporary Secretary.

    (1)  The meeting was opened by Mr. Young who explained the absence of the other members of the Advisory Council as well as the compelling reasons which prevented Miss Mary Van Kleeck, Admiral Eberle and General Summerall from accepting invitations to serve on the Council.

    (2)  Mr. Young stated that no Agenda had been arranged because he felt that "this first meeting was called not so much with the idea of doing something as to see what we should do and how." He pointed out that the Council had as yet no Chairman, Constitution or By-laws and that no provision had been made to take the minutes of the meeting although an informal memorandum would be made to serve that purpose.

    (3)  Upon motion by Mr. Green, duly seconded, Mr. Young was asked to serve as Chairman of the Council. In accepting, conditionally, Mr. Young suggested that it might be well at this first meeting not to select a permanent chairman. In fact, experience might show it advisable to eject a temporary chairman at the beginning of each meeting.

    (4)  By way of further informing the other members of the Council as to the important reasons for its organization and to give them a brief account of the historical development of radio in the United States, the Chairman read a prepared statement. Dr. Farrell suggested that a copy be supplied each member of the Council and, therefore, it appears on pages 16 to 26.

    (5)  The Chairman stated that the stockholders of the National Broadcasting Company were not fearful that the Advisory Council would do too much, but that its members would do too little and it was the desire of the management to give all the information which the Council had the time and patience to hear. The Chairman then read ten questions which had occurred to him as ones that he should like answered if he were sitting on the Council. The questions appear on page 27.

    The Chairman pointed out that he had attempted to answer briefly but with frankness all the questions except No. 3, which he had requested President Aylesworth to answer when he made his report,

    (6)  With the approval of the Council, the Chairman called upon Mr. Aylesworth to make his President's Report upon the Operation of the Company since its inaugural program on November 1, 1926. The secretary of the meeting distributed to each member of the Council a copy of the report as well as additional material, a complete set of which appears on pages 28 to 42.

    (7)  The Chairman suggested that due to the diversity of subject and problem it might be helpful to sub-divide the work of the Council and create Committees each of which then could deal quite experimentally and informally with its group of problems. He suggested also that each committee chairman should call upon his associates and organizations in his particular field for advice as to the best methods by which radio broadcasting could be made of the most benefit to it. In this connection he said it might be well for the Council as a whole to consider in the future the appointment of a permanent Secretary employed by the Council direct, responsible to them only, to act as a liaison between the several members of the Council and the President of the National Broadcasting Company.

    The following committees and chairmen were then appointed:

    AGRICULTURE, Dr. Frances D. Farrell.
    CHURCH ACTIVITIES, Dr. Charles F. Macfarland.
    EDUCATION, Dr. Edwin A. Alderman.
    MUSIC, Mr. Walter Damrosch.
    LABOR, Dr. William Green.
    WOMEN'S ACTIVITIES, Mrs. John Sherman.

    The Chairman suggested that with reference to the Committee on Church Activities, Dr. Macfarland should keep in close contact with Mr. Morgan J. O'Brien and Mr. Julius Rosenwald of the Advisory Council.

    (8)  The Chairman then emphasized his personal views as to the importance of the establishment of a University of the Air. He urged its study by Dr. Alderman in cooperation with the other educators of the country and, in conclusion, pointed out that it was conceivable so to arrange programs on the air that the great masters of any given subject might lecture simultaneously to the classrooms of the colleges throughout the country, the lectures so given being considered a part of the regular courses in each university. In this way, the Chairman ventured to suggest that such a University of the Air might be of real service to the existing educational institutions throughout the country.

    Dr. Alderman replied that such a study should be made to see if radio could be of such service to the colleges and not become a disservice to education.

    (9)  The Chairman mentioned the organization in England of a Committee of Experts, whose duty it is to censor the spoken English used over the radio by professional announcers. From time to time, this Committee of Experts issues authoritative declarations on the English broadcast from the stations.

    (10)  Mr. Root stated that several things had occurred to him which he would like to mention for consideration. In his judgment the only relation that the Council could have, in the nature of things, was to consider how the greatest cultural effects might be had from radio broadcasting and, at the same time, to keep in mind that it must be developed in a business-like way and, if possible, in a profitable way for the company.

    Mr. Root added that quite apart from the educational purposes attained it was important to consider the effect of radio on the lives of the people in the country. He mentioned the people in his own region of Clinton, N. Y., and in farming towns like that of Van Hornesville, N. Y. He stated that statistics of our insane asylums showed formerly a great preponderance of farmers' wives because of the lack of social stimulus and the loneliness of life amidst constant drudgery verging close onto penal servitude. Although the automobile, low-priced periodicals and magazines and rural free delivery have greatly ameliorated this condition, the use of radio will afford an opportunity far transcending everything else in providing elements of interest, cheerfulness and gratification of taste for the country folks. Mr. Root stated that radio broadcasting might go far toward checking the movement to the city and that, in his judgment the programs for the great agricultural areas should be arranged as much with the idea of affording relief from farming as for giving farming talks and information. In this way again, radio would push back the horizon for those people.

    Mr. Root mentioned also a great movement which he considered a by-product of the rush for education shown by the crowding of our universities; that is, adult education the continuance of education beyond the school and college walls. Mr. Root stated that he believed that this desire for the continuance of education should be fostered because in his judgment it was the best way to supply the kind of intellectual and moral discipline that man or woman ought to receive. He pointed to work being done by the Association of Adult Education, the millions who are taking correspondence courses and the material being distributed by the American Library Association on advice for simple courses of reading.

    In all these fields of endeavor, Mr. Root believed that the radio could give inestimable aid and that an effort should be made to consult with such organizations who have studied these educational problems and know the obstacles in the way.

    (11)  Mr. Macfarland desired to know if, as Chairman of the Committee on Church Activities, he should act in the name of the Council on such subjects or whether final approval for action rested with the Council as a whole.

    (12)  The Chairman stated that he had supposed the most suitable procedure was to have each group experiment with its particular problems and that some day an issue would develop within the group which would have to be decided by the Council. He conceived Dr. Macfarland's immediate problem that of getting in touch with the various church groups to ascertain their views.

    (13)  After some further discussion participated in by Mrs. Sherman, Messrs. Morow, Damrosch, Farrell and Aylesworth, Mr. Hughes summarized it by saying that in his judgment the wisest course for the Council to follow was to reserve its decisions for matters of first-rate importance. He said that we must not put into the public mind the idea that the Council is responsible where it is not in fact responsible, nor as to matters with which it could not cope successfully; that the point should be made that the action taken by the individual members of the Council are merely experimental efforts which must be carried on but which in no way indicates action by the Council itself; that such activities are attempts to explore quite informally and, as individuals, the various subjects at hand. If there should result something later with which we should deal as a Council, then at that time we could decide on the proper procedure for such formal action.

    (14)  Mr. Farrell and Mr. Root then asked Mr. Aylesworth questions concerning the procedure for the selection of the advertisers who "sponsor" programs over the National Broadcasting Company's stations and also as to the selection of the programs themselves.

    Mr. Aylesworth stated that the character of all advertisers was checked through the American Association of Advertising Agents and that the character of programs was decided by the joint action of a committee comprised of members of the National Broadcasting Company's staff and the officials of any company which wished to use the facilities.

    (15)  After some informal discussion, there being no further business, the meeting adjourned at 4:30 o'clock.


STUART M. CROCKER,            

Secretary  pro  tem.    


To  the  Members  of  the  Advisory  Council  of  the  National  Broadcasting  Company :


    In addition to expressing my appreciation to you for serving on this Council, I should explain why I assumed the right to issue such an invitation. It may serve that purpose well, and also provide you with a helpful background, if I recite briefly the history of the development of radio in the United States.

    Prior to and during the war, the engineers of the General Electric Company made some notable developments in high power radio transmission sets. One of these sets was installed in New Brunswick during the war, and served to carry President Wilson's famous fourteen points to all of the back countries of Europe. At the close of the war the British Marconi Company was the only organization in the world set up to use such developments in communications. There was not only the parent company in the British Empire, but also subsidiary companies in many of the other principal countries of the world, including the American Marconi Company in the United States. That company had constructed stations here prior to the war, and was ready to install the new transmission sets and enter into the transoceanic wireless communications business. In a word, the Marconi associated companies were the logical and perhaps indeed the only possible purchasers of the General Electric sets. At the close of the war, the Marconi companies offered to place orders for these sets to the approximate amount of five million dollars, provided they could obtain the exclusive rights thereto: under the General Electric patents.

    While this offer was pending, President Wilson, who was then in Paris sent Admiral Bullard Director of Naval Communications, and Commander Hooper to the General Electric Company with the request that it decline to sell these machines to the British Marconi Company, or to issue rights to foreigners to use its inventions. The President put it upon the ground that there was an obvious intent on the part of the English to dominate in the fields of international transportation and communication, and inasmuch as they were already dominant in the cable business of the world it would give them a monopoly upon international communications if they controlled the radio facilities.

    As a result of that request, the negotiations with the Marconi Company were terminated. This, at that time, accomplished only the negative result of preventing the British from acquiring them. It did not provide America with a radio communications organization nor did it provide a market for the General Electric apparatus, on which large sums had been spent for development. To meet this situation I undertook, with the sympathetic cooperation of the government representatives at Washington, the organization of the Radio Corporation of America. It had not progressed far before I realized that if America were to take a prominent place in international radio communications it would be necessary for it to mobilize in one concern its principal inventions and research facilities in that field. With this in mind I secured the cooperation of the American Telephone and Telegraph Company, the Western Electric Company, the Westinghouse Electric and Manufacturing Company, and the United Fruit Company with the General Electric Company in the development of a radio organization financially and technically able to compete with any other in the world. This company acquired the property and rights of the American Marconi Company and made traffic contracts with the British Marconi Company for the British dominions. Later it made similar arrangements with the German and French radio companies and then cooperated with them to develop radio facilities in South America. As a result of that undertaking we practically now have a system of world-wide communications east and west, and radio communication circuits with the principal countries of South America.
international circuits
        "Radio has made world history. It has marked a new era of American participation in international communication. With the organization of the world-wide system of the Radio Corporation of America the radio communication centre of the world is located at 64 Broad Street, New York City. From this centre, direct communication is available to more different parts of the world than from any other point in the world. Direct high-power circuits are in operation with England, France, Germany, Italy, Norway, Sweden, Poland, Spain, Switzerland, Austria, Roumania, Czechoslovakia, Syria and the Argentine. The circuits to many of these countries are the only direct channels of communication linking them with the United States. From a central operating office in San Francisco, direct transpacific service is available to Hawaii, Japan, Dutch East Indies and French Indo-China. Excellent wire facilities connect the operating rooms in New York and San Francisco. The advantages of the R. C. A. system of communication do not end with the countries specified, but through connections with the various Government Telegraph Administrations it is possible to send Radiograms VIA RCA to almost any part of the world with unsurpassed efficiency."
Extract from on RCA booklet.          

    After this organization was completed for the purpose of establishing America's position, which I think today is dominant in the field of international radio communications, it was discovered that we had quite unconsciously cleared the way of the greatest impediment in the development of domestic broadcasting and reception. The engineers who had been working on that difficult subject before had spent the greater part of their time and effort in trying to avoid the other fellow's patents, and so they had given little attention to the advancement of the art. These patents having been largely pooled, the engineers were released from that restraint, and under the most intensive development which has ever taken place the radio broadcasting art blossomed into being almost overnight. Not only were broadcasting sending and receiving sets created, but the advertising of them developed in a few months a very large demand. Inadequate facilities, however, were provided to meet it. The history of the gross income of the Radio Corporation of America since its organization is an illuminating illustration of what I am trying to say. The gross income for the years since its organization was as follows:

*Perhaps 20% of the total radio business in the United States.

    Broadcasting stations were immediately set up in great number throughout the United States. Some, like newspapers, were set up in self-protection. Others, like those of the Telephone Company, the General Electric and the Westinghouse, were set up as experimental stations. Some were set up by individuals of large means who suddenly became interested in this fascinating development And so in a year or two the whole country was dotted with broadcasting stations, and the air was filled with waves. The two stations which established the greatest favor because of their programs were WEAF and WJZ, both in New York City, the first the station of the Telephone Company, and the second originally the station of the Westinghouse Company and later that of the Radio Corporation These stations were enabled to take this position of leadership, as we have later learned, because of the large amount of materials suitable for broadcasting originating in the City of New York. Other stations, which in the early days provided excellent programs, like the station at Davenport, Iowa and WGY at Schenectady, soon found that their available supply of material suited to broadcasting was too small to enable them to compete with the stations in the great cities, and especially those in the City of New York. With the air filled with waves, it was necessary to develop very selective receiving sets for the purpose not so much of enabling you to hear what you wanted as to exclude from your hearing what you did not want After the original wonder of the achievement wore away, listeners came more and more to demand programs of interest and importance. They became more impatient with inferior programs and it was obvious that if radio broadcasting was to perform a great public service in this country it would be necessary to develop great chains of stations, tied together with telephone wires, which were capable of picking up the best program material available anywhere in America and re-broadcasting it everywhere. This was not only necessary in order to render a public service, but it was necessary if the market for radio receiving gets was to be extended and enlarged.


    It was under these circumstances and for that purpose that the Radio Corporation of America, which sells the output of the General Electric and Westinghouse factories in the field of radio receiving sets, joined with those companies in the organization of the National Broadcasting Company. The purpose of that organization is to provide the best programs available for broadcasting in the United States and to secure their distribution over the widest possible area. If programs are good enough and distributed widely enough so that they are available to all homes in the United States, then the occupants of such homes are made potential customers for radio receiving sets. If the makers of radio receiving sets can develop instruments with a quality high enough and a price low enough, they can convert these potential customers into actual customers.

    It is estimated that there is now one radio set for every twenty-two persons in this country. It is estimated that there is now one automobile for every five and one-half persons. In other words, the distribution of radio sets is only one-fourth as large as the distribution of automobiles today.

    In any event, it seems quite clear that the key which will unlock that market is high-class broadcasting widely distributed. This is the reason for the organization of the National Broadcasting Company. While the motive prompting the organization of the company is wholly selfish, if one calls the development of a business wholly selfish, it is nevertheless true that the objective sought is the greatest possible public service. Only in this way can the radio business be put on a sound and permanent foundation.

    It is also the object of the National Broadcasting Company to make radio broadcasting self-supporting. This is in the interest of the public and the radio manufacturers provided always it can be done without injury to the character of the program itself. The experience of the National Broadcasting Company up to date would seem to indicate that there is a possibility, indeed a probability, of securing the highest quality of program and of making broadcasting self-supporting. In fact, the higher the quality of the program; the greater demand there is for it among advertisers and the more they are willing to pay for it. It has been charged that the ultimate purpose of the National Broad casting Company is to levy charges for broadcasting on receiving set owners. Nothing is further from its desire. Any additional burden on listeners would to that extent restrict the market for sets. It is that market which the organizers of the National Broadcasting Company are interested in enlarging. Then, again, programs of wide distribution can be made more easily self-supporting than programs over a very limited area because high quality programs of wide distribution are the ones which can be most readily sold to advertisers. This again runs strictly with the public interest and not counter to it.

    The President of the National Broadcasting Company will report to you on the activities of the company in such detail as you may wish to have him. It is enough for me to say that there are already three networks in operation, and an additional one in contemplation. The WEAF chain and the WJZ chain of stations operate through the eastern and central portions of the United States with a character of program with which you are undoubtedly familiar. A Pacific coast chain has just been established. It is expected that an agricultural chain will be created with a station in Kansas as its center, dealing especially with agricultural programs through the great area of the central west. These four chains are shown on the map of he United States. which has been prepared for this meeting. These networks are connected by many thousands of miles of telephone wires especially set up for the purpose, and the distribution of programs through these agencies covers as you see, a very substantial portion of the United States. It is estimated that 75 per cent of our total population are able to listen in to one or more of these programs with the present type of receiving set. In addition, it is possible to combine all these stations into a single network, and this approximately will be done on the twenty-second of February when the President's address to Congress will be broadcast by 42 stations throughout the United States simultaneously.*
Note: See Page 40.


    I speak of the extent of these facilities so that you may realize the importance of their being properly handled in the public interest. It was to insure this that the Advisory Council was created. The wise guidance of able men of diversified experience located in different parts of the country is sought in order that the facilities of the National Broadcasting Company may be put to their best possible use in the public interest which is the only way to serve the business interests of the founders of the plan. Nothing could impair the object sought by the National Broadcasting Company so quickly or effectively as misuse of its broadcasting facilities. On the other hand, nothing could be of greater injury to the public than such misuse.

    In this country we must learn by experiment the best way of handling this important agency. The National Broadcasting Company is making that experiment. It would like to demonstrate to the American people that this agency can be handled by a private organization effectively, economically and progressively. It would like to demonstrate that it could respond quickly to the public taste and the public needs. It would like to show that it could administer these facilities without unfair discrimination and with maximum service both in quality and quantity. It is quite apparent that broadcasting can only, in a small measure, be local. In substantial part, it must be national in scope in order to give the listeners the kind of service they should have. If the National Broadcasting Company can provide the highest quality of program which exists in the United States, no matter where the point of origin may be, and can disseminate it completely throughout the country so that everyone can hear no matter where he may be, and if it can do this without charge upon the listener and without unfair discrimination between those fairly entitled to use the facilities, it will, in my judgment, have rendered a great service to the American people. No one organization could hope to do that without the wise advice of disinterested and competent people.

    Then, too, we hope the Advisory Council may be considered as a Court of Appeal for complaints. There will be less complaints because of its existence. I should expect few will ever come to your attention unless they were really serious and difficult cases. In that case; they should be decided in the public interest. But the fact that you exist means that the National Broadcasting Company's organization itself will be most careful to avoid unfair discrimination or misuse knowing that an appeal lies over. It is also true that members of the public will not make unreasonable and unfair charges of discrimination against the organization if they know the merits of their charges are to be determined by a body like this. The fact of your existence for the purposes indicated is undoubtedly of more importance than the work you will have to do in this particular field. To my mind, your most important service will be in the way of constructive suggestion as to how we can enlarge and improve broadcasting service from time to time. The president of the National Broadcasting Company will suggest to you the formation of some special committees to study new fields for the extension of the service. These I will not deal with because they come more properly in his report.

    Finally, may I express my personal appreciation, and that of the companies which organized the National Broadcasting Company to you for your willingness to serve on this Council. If your service were asked only in the business interests of the companies concerned, I should not, of course, have felt at liberty to invite you. It is the other field which seemed to me to justify my invitation. That is the field of service to the public which is no less important because it happens to run parallel with the business interests involved. The persons asked to serve on the Council had to be of such character and standing and so widely known that they would, be accepted universally throughout the country as guarantors of the fairness with which the broadcasting facilities were handled. It is, therefore, essential that the National Broadcasting Company should in good faith and without reserve undertake to use its facilities during the period of your service in such a way as will satisfy you. This, the National Broadcasting Company undertakes to do.
OWEN  D. YOUNG.        

February 18th, 1927.


    The following questions would naturally occur to me as some that I should like answered if I were sitting on this Council:

    1st.  What is the historical background of radio in relation to the National Broadcasting Company?

    2nd.  Who owns the National Broadcasting Company and why was it organized?

    3rd.  How much money has been paid into the National Broadcasting Company and what is the inducement to the people to pay it in?

    4th.  Is the company primarily for profit, and if not, why should people contribute to its capital?

    5th.  What is the purpose of organizing the Advisory Council?

    6th.  Is it to be a Council with real powers or only colorable powers so as to serve as a buffer with the public?

    7th.  If it is to be given real powers, is it to be given full information or is it expected merely to rubber stamp recommendations?

    8th.  Are the members of the Council expected to initiate action by suggestions of their own, or are they to act only on what is presented to them?

    9th.  Why should one serve as a member of the Council?

    10th.  Who pays for broadcasting, and what is necessary from the standpoint of the broadcaster and the listener to make broadcasting self-supporting?


To  the  Members  of  the  Advisory  Council  of  the  National  Broadcasting  Company :

    The National Broadcasting Company was organized for business on November 1, 1926. The stockholders of the company are the General Electric Company, Westinghouse Electric and Manufacturing Company and the Radio Corporation of America, each company stockholder owning less than 51% of the issued stock. The company owns and operates station WEAF, New York City, and has a contractual arrangement with the American Telephone and Telegraph Company for the use of telephone lines for the delivery of programs by wire to associated stations.

    The Board of Directors is as follows:

MR. H. P. DAVISChairman  of  the  Board;  Vice-President  Westinghouse  Electric  and  Manufacturing  Company.
MR. M. H. AYLESWORTHPresident  National  Broadcasting  Company.
MR. WILLIAM BROWNVice-President  and  General  Attorney  Radio  Corporation  of  America.
MR. EDWIN M. HERRPresident  Westinghouse  Electric  and  Manufacturing  Company.
GENERAL JAMES G. HARBORDPresident  Radio  Corporation  of  America.
MR. E. W. HARDENJames  B.  Colgate  &  Company.
MR. DWIGHT W. MORROWJ.  P.  Morgan  &  Company.
MR. DAVID SARNOFFVice-President  and  General  Manager  Radio  Corporation  of  America.
MR. GERARD SWOPEPresident  General  Electric  Company.
GENERAL GUY E. TRIPPChairman  of  the  Board  Westinghouse  Electric  and  Manufacturing  Company.
MR. OWEN D. YOUNGChairman  of  the  Board  General  Electric  Company.

    Prior to January 1st the National Broadcasting Company contracted with the Radio Corporation of America for the management of the New York station of the Radio Corporation, WJZ, and the Washington station of the Radio Corporation, WRC. Effective January 1st the National Broadcasting Company contracted with the Westinghouse Electric and Manufacturing Company to manage station KFKX owned by the Westinghouse Company and located at Hastings, Nebraska, and also contracted with the Westinghouse Company to furnish programs to stations KDKA at Pittsburgh, WBZ at Springfield, Mass., WBZA at Boston and KYW at Chicago. The National Broadcasting Company has a similar contract with the General Electric Company for station WGY at Schenectady. These service arrangements are similar to those with other independently owned and associated stations.

    The radio stations now receiving regular service from the National Broadcasting Company over its networks are as follows:
BLUE  NETWORK -- WJZ New York City; KYW Chicago; KDKA Pittsburgh; WBZ Springfield; WBZA Boston.
RED  NETWORK -- WEEI Boston; WJAR Providence; WTAG Worcester; WTIC Hartford; WGR Buffalo; WLIT Philadelphia; WFI Philadelphia; WRC Washington; WCSH Portland, Maine; WCAE Pittsburgh; WTAM Cleveland; WWJ Detroit; WSAI Cincinnati; WGN Chicago; KSD St. Louis; WOC Davenport; WCCO Minneapolis; WDAF Kansas City; WADC Akron; WGY Schenectady; WSB Atlanta; WSM Nashville; WHAS Louisville; WMC Memphis.

    Upon the urgent request of radio listeners and radio stations on the Pacific Coast and in the Northwest the National Broadcasting Company has recently agreed to establish a Pacific Coast network with headquarters at San Francisco and to furnish program service to the following radio stations on the Pacific Coast and in the Northwest:
    KGW Portland, Oregon; KOMO Seattle; KGQ Spokane; KFI Los Angeles; KFOA Seattle; KPO San Francisco; KGO Oakland.
    The National Broadcasting Company furnishes to associated stations on its networks sustaining programs which are not sponsored by commercial clients and which are presented in the name of the National Broadcasting Company and associated stations. The associated stations pay $45 for each hour of such programming, but the cost of obtaining the talent and the wire lines necessary for the delivery of this service exceeds the revenue received from the stations. The National Broadcasting Company also provides sponsored programs, such as the Atwater Kent Radio Hour, the RCA Radiotrons, the Eveready Hour, etc. These sponsored accounts provide operating revenue not furnished by the stockholders. The National Broadcasting Company pays to each associated station the sum of $50 for each hour of sponsored program received by the associated station.

    Less than 10% of the programs furnished by the National Broadcasting Company from WEAF, WJZ, WRC and KFKX, the present main outlets of the Company, are sponsored programs.

    On June 1st this company will be installed in a new building at 55th Street and 5th Avenue which will be named in honor of the National Broadcasting Company. The equipment, including studios, stations, and personnel, will be upon a scale that befits a great and permanent communications service, designed to give the United States its proper place of leadership in the broadcasting field.

    In order that the best technical thought may be at the service of the National Broadcasting Company, an Advisory Engineering Council has been formed consisting of Dr. Alfred N. Goldsmith of the Radio Corporation of America; E. W. Alexanderson of the General Electric Company and Frank Conrad of the Westinghouse Electric and Manufacturing Company.

    Inasmuch as there are only sixteen hours a day available for broadcasting and certain of these hours have not yet been developed, it has become necessary for the company to form more than one network and in certain instances the National Broadcasting Company furnishes programs different stations located in one community. But in no case does the National Broadcasting Company furnish the same program to stations in the same community, unless the event is of great public importance such as the address which President Coolidge will deliver on February 22nd before both houses at Washington. This event, which will involve the greatest number of stations and listeners in the history of broadcasting, will be sent to forty radio stations. Many of them are not on the regular networks of the company.

    The United States Commission for the Celebration of the Two Hundredth Anniversary of the Birthday of George Washington requested the National Broadcasting Company to broadcast the President's address and the company as an act of public service has assumed the entire cost with the exception of telephone line charges necessary to those stations who desire the service and who are not on the regular network of the company.

    The best evidence of service rendered by the National Broadcasting Company in its operation over a period of three months is the programs actually broadcast, and I take pleasure in submitting a condensed presentation.

    Subject to such conclusions as may be reached by the Advisory Council, the President has adopted certain public policies upon which the company is now acting.,

    In view of the fact that many matters of great public interest are necessarily controversial in character, the company has adopted the policy of not refusing to broadcast any subject merely because it is controversial.

    Our policy is that all subjects of sufficient interest to a considerable portion of the twenty million radio listeners in the United States are suitable for broadcasting. In other words, we are glad to present a speaker whose reputation is sufficient to warrant a hearing, regardless of whether we do or do not agree with his views. The only limitation upon this speaker is as to broadcasting time and number of speeches, in order that a well-balanced program may be given to the public.

    Investigations made thus far lead us to the conclusion that possibly ninety percent of the listening public is anxious to obtain the regular programs of the National Broadcasting Company. From studies made by our Research Department we are of the opinion that more than twenty million listeners use the radio regularly and at the close of 1927 there will be more than twenty-seven million listeners in this country. During political campaigns our rule requires political candidates to pay regular rates for broadcasting service; but our facilities are available at no cost to public officials in matters of national or governmental business.

    The suggestion is offered that the following subjects relating to broadcasting are of particular interest to the Advisory Council: Religion, Education, Agriculture, Music, Drama, Political Economy, Women's Activities.

    At the present time the subject of broadcasting religious services or topics is under consideration by the Radio Committee of the New York Federation of Churches. We have advised with Dr. MacFarland about the formation of a National Committee to be organized by the National Federation of Churches. Recently a public committee was appointed to assist the Church committee, which includes practically all denominations. We have no complaint to deal with from any religious organization in the United States.

    Great possibilities for service to the agricultural communities of the United States, are presented by radio broadcasting. The National Broadcasting Company proposes to devote station KFKX at Hastings, Nebraska, and to develop other broadcasting sources in the agricultural area to the service of the farmer, by educational and informational broadcasting during the day hours and by: entertainment and musical programs in the evening.

    The service which broadcasting is now rendering to the public, through the National Broadcasting Company, is amply evidenced by the more than one hundred thousand letters received by the company and associated stations every month from radio listeners. Nevertheless, the field for development is still great and the National Broadcasting Company looks for judgment and inspiration on many questions of social, religious and educational importance to the distinguished members of the Advisory Council.

    More than five million dollars will be expended by the National Broadcasting Company and the sponsors of radio programs broadcast through its networks. The sponsors will pay more than $1,500,000 during the year 1927 for the best of musical and entertainment talent, while the National Broadcasting Company will expend at least $500,000 for talent for programs that are not sponsored.

    In conclusion, it is desired at this time to make proper acknowledgment to the entire radio industry for the hearty support and assistance rendered to this company, and to the newspapers of the nation which have so splendidly cooperated in the development of a broadcasting service.

The  purpose  of  that  Company  will  be  to  provide  the  best  programs  available  for  broadcasting  in  the  United  States . . . It  is  hoped  that  arrangements  may  be  made  so  that  every  event  of  national  importance  may  be  broadcast  widely  throughout  the  United States

A  Synopsis  of  Program  Features  Broadcast  by

From  November  1,  1926
THE NATIONAL BROADCASTING COMPANY takes pleasure in presenting to the Advisory Council a résumé of service rendered to the radio listening public of the United States by the National Broadcasting Company from Stations WEAF and WJZ, in New York, WRC, Washington, KFKZ, Hastings, Neb., and through the associated stations on its various networks.

    THE COMPANY has not faltered in seeking the goal visioned by its founders--a nation-wide broadcasting service that would give as many homes as possible the best type of entertainment available for the air, musical programs of unsurpassed quality, and such educational and informational features as are encompassed by this new system of mass communications.

    THE PRESENT RECORD is but brief, from November 1, 1926, to date. Yet it could not have been achieved without the cooperation of leading factors in the radio manufacturing industry of the United States. It could not have been achieved without sponsored programs, and the cooperation given to broadcasting by leading musical, educational and social interests.

    THE OUTSTANDING EVENTS in broadcasting during the three months that have passed may be summarized as follows:
    1.  The inaugural program of the National Broadcasting Company on November 15, 1926, was heard by an audience of more than 10,000,000 people. The National Broadcasting Company featured such great operatic stars as Titta Ruffo and Mary Garden, such theatrical celebrities as Weber and Fields and the inimitable Will Rogers, Walter Damrosch and the New York Symphony Orchestra, Harold Bauer, the distinguished concert pianist, Edwin Franko Goldman and his Band, as well as leading organizations in the field of more popular music.

    The event proved that there were no physical confines to the broadcasting studio. Mary Garden's voice was "picked up" from Chicago, Will Rogers spoke from Independence, Kan., and the entire program was rendered as though hundreds of miles did not separate these performers from the broadcasting station.

    2.  On New Years' Day, January 1, 1927, the National Broadcasting Company demonstrated that there was no continental limit to radio broadcasting. For the first time in the history. of the service an event originating on the Pacific Coast was broadcast to millions of listeners on our Eastern seaboard through a remote "pick up" over 4,000 miles in wire length. For the first time an Eastern audience, in the cold of midwinter, heard a play-by-play report of the classic Football Game of the West as seen by an Announcer sitting coatless in the grandstand in the warm California sun.

    3.  The first nation-wide transmission of Grand Opera from the stage was accomplished by the National Broadcasting Company on January 21st in a manner which attracted the attention of the entire country. It was not only a great artistic event but an extraordinary technical feat as well. To millions of homes there came for the first time, not only the arias of a great opera, but the actual feel and atmosphere of the Civic Auditorium in Chicago where a distinguished audience sat enraptured at a performance of "Faust."

    4.  Through the network system maintained by the National Broadcasting Company in association with individual stations in all parts of the country, the President of the United States will be able to address the entire nation on Washington's Birthday, February 22nd. Forty stations, from coast to coast, interconnected by wire, will broadcast the President's address, and the greatest audience that ever listened to a single human voice will hear his remarks.
    It is not possible in this brief report to give more than a bird's-eye view of the service rendered by the National Broadcasting Company during the past three months. Following are some of the renowned artists who have appeared as well as leading features which have been presented on programs initiated by the National Broadcasting Company from the originating stations, WEAF, WJZ, WRC and KFKX, from November 1, 1926, to date:

Addresses  by  Public  Officials

  President  of  the  United  States
  Vice-President  of  the  United  States
  Governor  of  the  State  of  New  York
  Governor  of  Maryland

Famous  Operatic  Stars  Broadcast


Great  Concert  Stars  Broadcast


Leading  Conductors  and  Orchestras  Broadcast

  New  York  Symphony  Orchestra
  Boston  Symphony  Orchestra
  New  York  Philharmonic  Orchestra
  New  York  Philharmonic  Orchestra

Among  Stage  Stars  Broadcast


Recitals  and  Tabloid  Operatic  Performances


Light  Operas  Broadcast


Dramatic  Performances  Broadcast


Leading  Band  Concerts  Broadcast


Religious  Addresses

  Yale University  Divinity  School
  President  Federal  Council  of  Churches  of  Christ  in  America
  Pastor  of  Park  Avenue  Baptist  Church,  New  York
  President  of  the  Greater  New  York  Federation  of  Churches
  Rector  St.  George's  Episcopal  Church

Labor  Discussions

  President  of  the  American  Federation  of  Labor
  British  Labor  Party
DR. NORMAN THOMAS, on "An American Labor Party"

Addresses  on  Governmental  and  Political  Education

Meetings of the Foreign Policy Association, and discussions on the Philippines, China, Russia, the British Empire, etc.
Meetings of the Government Club and discussions about the Italian situation, etc.
Lectures by DAVID LAWRENCE, Journalist, on "Our Government"
Talks by FREDERICK WILLIAM WILE on the current legislative situation in Washington

General  Education

DR. WILLIAM TILLY of Columbia University, course on Phonetics
PROF. PHILIP MOLT of Columbia University, French course
DR. JOHN B. WATSON, lectures on psychology
Special lectures under auspices of Board of Education, City of New York
Lectures by faculty of Teachers College, Columbia University

Discussions on Current Events by


Popular  Orchestral  Music


Outstanding  Sporting  Events  Broadcast

Army-Navy Football Game
Yale-Harvard Football Game
Princeton-Harvard Football Game
Princeton-Yale Football Game
Leland Stanford-Alabama Football Game

Agricultural  Courses  and  Information

Courses by Government Farm Radio School
News Dispatches from Nebraska
State Agricultural College
News Dispatches from United
States Department of Agriculture
Market Reports Covering Livestock, Grain, Hay, Feed, Fruit, Vegetable, Butter and Egg Markets
Weather Forecasts for Nebraska, Iowa, South Dakota, Kansas, Colorado, Wyoming and Montana
Nebraska State Extension Service, including Ernest Frisell, Secretary Nebraska Wheat Growers' Association
John Manlay, Secretary Oklahoma Wheat Growers' Association
Bruse Lampson, Manager Colorado Wheat Growers' Association
Judge L. Gough, President Texas Wheat Growers' Association
Edward Hagen, President Minnesota Wheat Growers' Association
Herman Steen, Secretary Central States Soft Wheat Growers' Association
C. W. Croess, President South Dakota Wheat Growers' Association.


    In connection with the foregoing review, the National Broadcasting Company makes special acknowledgment to the following clients who have contributed to broadcasting by sponsoring a number of programs to the various networks organized by the company:
American Maize Products Company
Atwater Kent Mfg. Company
Bristol Myers Company
Brunswick-Balke-Collender Company
Burger Brothers Company
Cadillac Motor Car Company
Champion Spark Plug Company
Cheek-Neal Coffee Company
Cities Service Company
Clicquot Club Company
Climax Hosiery Company
Consol. Gas Company of New York
Thomas Cook & Sons
James S. Coward
Davis Baking Powder Company
Fansteel Products Company, Inc.
First National Pictures, Inc.
B. F. Goodrich Rubber Company
Great Atlantic & Pacific Tea Company
         Charles Gulden, Inc.
Happiness Candy Stores
Charles E. Hires Company
Iodent Chemical Company
Edward H. Jacobs
La France Manufacturing Company
Metropolitan Life Insurance Company
Middle Atlantic Fisheries Association
Morse & Rogers
National Carbon Company
Radio Corporation of America
Royal Typewriter Company
Ruud Manufacturing Company
Scott & Bowne
Smith Brothers
United States Playing Card Company
Victor Talking Machine Company
Washburn Crosby Company
M. J. Whittal Associates
Willys Overland Company

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newspaper articles

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