ments of government, federal, state and local, and paid announcements are to be implemented on station schedules, we will soon have competition for "position" in broadcasting as is true today with the manufacturers of soaps, dentifrices, automobile tires, chewing gum and petroleum products. This, to me, doesn't make very much sense.

I repeat, Mr. Van Deerlin, that I feel it is the responsibility of a licensee to give time free of charge, either in the form of spots or programs, for those areas of activity that are meaningful to the constituency we have the good fortune to serve with our transmitters. With this statement I am not suggesting an outflow of government “propaganda” on any area of activity and I am certainly not suggesting promotion by one or more political parties but where the public interest is involved, such as the recruitment of military personnel, this certainly falls in the public service area and should not be something to be considered "commercial" from the standpoint of a broadcast operation.

It is respectfully suggested that these comments be made a part of the Record of hearings pursuant to the introduction of H. Con. Res. 215. Respectfully submitted,

WARD L. QUAAL.

Mr. VAN DEERLIN. Would you comment on the policy that was established here, whether it was imposed by the agency or by the Army?

Mr. REATH. I would like to answer that, yes, sir. It is part of our responsibility in the media area to set down for our clients and propose to our clients certain buying guidelines. One of the guidelines we established for this campaign was in terms of our buying of network and also radio and television when we bought it locally, that we did not want positions in news programs or adjacent to them. Further, we went on to say that our guidelines called for buying positions, not in certain types of programing, a good example being where there is a movie on the network that may have been counterproductive to the message that we were trying to deliver.

The same reasoning was followed in the news position. And we did not feel that positions in such broadcasts or adjacent to them. was in keeping with what we were trying to do and, in fact, was counterproductive and tended to neutralize our advertising.

Mr. VAN DEERLIN. So, to have any of these spots appearing within a short range of time with news accounts from Vietnam might run counter to the suggestion of a volunteer that will serve in Germany or in much pleasanter points than Vietnam?

Mr. REATH. Yes, sir.

Mr. VAN DEERLIN. HOW were the stations that were included on the schedule you are going to provide the committee, how were they selected and what was the basis of what stations were to participate and which would be omitted from the campaign?

Mrs. REATH. In television and radio, the program draws an audience. That audience is measured by a number of rating services and networks, such as Neilsen, and at the local market radio level it is Pulse, and local market television it is ARB, and these are services. that we buy as an agency, as do all major agencies.

They break down the audiences of shows by size and type and in terms of demographic figures and man versus woman, by age ranges. and so forth. So a given program will draw a certain type of audience in television.

In radio it is the format of the station that determines the type of audience it draws, an all-news format, an all-news format in

radio all day long will have a certain balance of people within their audience. A "top 40," which is an inside term in our business, it is a rock station or contemporary music station, will automatically, because of its programing content, draw an audience of younger people, men and women.

So, setting up our target audience of 17 to 21 years of age, young men, and then also including the parts of the total public that can influence or counsel a young man in his decision on a career as our secondary audience, we can go into every market in terms of radio and local television and look at the programing and buy into the programing that delivers the highest number of young people that we are after and/or their parents and uncles and aunts for the best price.

Those are the ground rules that we set up as we went in to make the buy, and stations were bought accordingly. Basically our stations were the best-rated stations in every market, the No. 1, 2, or 3 stations in some markets in the contemporary programing area and in the middle-of-the-road programing area, which is the kind of station that most parents would listen to.

In network television we selected shows that delivered a large audience, one; and, No. 2, a high percentage which is relative to other shows for young men in our target audience.

Mr. VAN DEERLIN. Were there other considerations that went into the selection of outlets?

Mr. REATH. No, those are the buying guidelines and we think we bought the entire program especially, well, not especially, but entirely on that basis.

Mr. VAN DEERLIN. As one who has been rather close to the whole business, with the discussion that it aroused since the campaign began, I suppose that an article appearing in the Wall Street Journal on March 15 by John E. Cooney, came to your attention. The paragraph that I wish to mention from that story concerns a broadcaster in Burns, Oreg., who is quoted as saying: "When I heard about the campaign, I was burnt up and sent a letter to the Department of the Army," says Howard McDonald, coowner of station KRNS in Burns, Oreg. "They sent me a letter back saying we would be part of the campaign. I think they only included us because I jumped up and yelled."

Now, I have established contact with Mr. McDonald, who related that they were indeed omitted from the first schedule of stations, that he complained loudly about this, and that on or about February 12 sent a letter to the Army recruiting command, protesting the fact that they, having given considerable public service time in the past, were being omitted now that the Army was paying for what they had received free before.

He says that 4 days later he got a phone call assuring him he would share in the schedule, that the tapes on order, which were dated February 15, actually reached him there in Oregon on February 27. 2 or 3 days before the campaign began.

Now, the witness for the Army this morning testified they had left entirely to the judgment of the agency the selection of stations to participate in the campaign. What I would like to ask you is this: Who called Mr. McDonald in Burns, Oreo?

Mr. REATH. Sir, I think I can give you an explanation of the sequence of events. It will require a background of how radio networks are put together and represented, if you would like me to go into it.

I can explain, I think, how the situation developed.

Well, we bought the Blair Radio Network, which is not a wiredtogether network, but a represented sales organization network. There are some 1,200 stations represented by Blair. In that list of 1,200 stations, they have the option on the station, if he does not feel they are being represented or sold well, they can drop out or they can add stations and so forth and so on. This occurs constantly and it happens even during our campaign.

I believe this station entered the Blair Network representation field, joined up with Blair after our original planned availabilities were called for and there was confusion as to whether this station belonged to the Blair Network or it didn't. In fact, when we found out it did belong at a certain point in time, they got their order. Mr. VAN DEERLIN. Blair is their national representative ?

Mr. REATH. Yes.

Mr. VAN DEERLIN. Instead of ordering individual station by individual station ratings and the format, as you described, you do buy by package with national representatives?

Mr. REATH. Yes, in the case of Blair, the large number of stations in that particular organization tend to be the smaller onestation cities that are provided coverage in this campaign for the rural areas of the country.

We did not go into all of the markets below 200 in major cities and go through all of the mathematics that are required since we could, by buying one network. provide the coverage in the rural and small town areas.

Mr. VAN DEERLIN. Mr. McDonald was under the impression he had been talking with the Army recruiting service on that phone call. I can only judge from the testimony given us this morning, because it would surely not be my feeling that anybody would come before this committee without telling the full truth-it would be my conclusion it was not the Army recruiting service. But it does seem, however, he would have been aware, if he was talking to his own national representatives. the Blair Co. Did someone from the agency call and placate Mr. McDonald?

Mr. REATH. I do not know that, sir. I do know that they are part of the Blair Network at this point and are on our station list. Mr. MACDONALD. Could you yield?

Mr. VAN DEERLIN. Yes. Indeed I will. I want to answer the quorum call myself.

Mr. MACDONALD. You can go and I will ask my questions.
Mr. VAN DEERLIN. Yes. Thank you.

Mr. MACDONALD. The story is every time we got on a question, we would get sort of a fuzzy reply and we would try to understand what the reply was and he would always say, "Well, the agency is handling that."

If I remember correctly, when we asked them what the mechanics were of checking out what effect this has on free time spots, they said they were going to use your agency to check it out.

Mr. NALLE. There are large numbers of research projects being imposed upon by this test by the Army, the agencies, by the other services and by the Department of Defense. One of the projects we have commissioned an outside research organization to do involves pretesting before the campaign started which has been completed and the tab runs are coming in now. The exact same questionnaire will go out again after the completion of the test.

This is designed to measure, as well as possible, what kind of results the test had.

Mr. MACDONALD. I understand what you are after. We are after the same truth you are after, because we put up money for this. You want to find out, but you are still being paid whether it goes well or not. We are putting out the taxpayers' money and, therefore, we are equally as interested, if not more so, than you, so let's assume we are both on the same side.

Mr. NALLE. Surely.

Mr. MACDONALD. What I was trying to find out this morning and cannot, is how is this checking going to be done? How is it done? Mr. REATH. Are you asking about public service, the effect of the campaign on public service time?

Mr. MACDONALD. Yes.

Mr. REATH. I listened to the testimony this morning and, frankly, the question of public service time is one that no one can measure. There is no way that you can effectively, accurately measure what happened last year or last month in public service time, because there is no reporting to the FCC or to any independent of the total log of every station in the country.

Mr. MACDONALD. Right. That was my impression, but every time I asked a further question, they would say, "Well, the agency is going to do it."

So I thought, "Well, maybe this agency can walk on water."
Apparently, the Defense Department thinks you can.

Mr. REATH. We have attempted and have in fact taken samples of station logs and projected them nationally to arrive at a figure of $6 million for Army public service time. I would be the first one to admit it is subject to some projectable errors. I would say that in $6 million also are WAC commercials and commercials for other aspects of the Army assignments like nurses.

I should also say all the figures you heard this morning are rate card figures and there is no resemblance between a rate card figure and what you can actually buy the time for.

Mr. MACDONALD. I understand that very well. Fine.

Mr. REATH. At best, they are loose estimates, sir.

Mr. MACDONALD. They are hopes, not expectations, right?

Mr. REATH. I would think they would be indicators, at best. Mr. MACDONALD. They referred, once again, to agency, I believe, when I asked about the telephone answering service, and would you people handle that, too?

Mr. NALLE. I would like to describe what function it performs Does the committee know clearly what the telephone answering service is?

Mr. MACDONALD. I know what it is.

Mr. NALLE. This is not the same as a regular telephone answering service.

Mr. MACDONALD. Go ahead.

Mr. NALLE. Well, I am trying to keep this short.

We feel that our objective, in this program, is this

Mr. MACDONALD. No. 1, if you don't mind, would you answer the question? Do you handle the telephone answering service, too?

Mr. NALLE. No, we have contracted this to an outside company called LISTFAX, located in Stamford, Conn., and it is a brand new kind of office. What we are trying to do is produce leads for the recruiters and also disseminate information and I would suggest this

Mr. MACDONALD. Well, wait, you know, if I sound dull I don't mean to, but I am trying to get this clear in my mind. They said they made, if I remember, they had received 55,000 calls and they got 1,000 names back. Is this normal for this kind of thing?

Mr. NALLE. I think there were more names than that, Mr. Chair

man.

Mr. MACDONALD. I had it down here some place.

Mr. REATH. It is about 4,000.

Mr. NALLE. It is 4,000, about.

Mr. MACDONALD. That is right. I remember. I was going to ask the question: "What happened to the other 51,000?" So you are quite right, it is 4,000 names.

How do you get a ratio like that?

Mr. REATH. I think, perhaps, Mr. Chairman, you indicated the difficulty of selling a career in 60-second commercials. In fact, to get someone to pick up the phone and to call a long distance number, which they don't pay for, and seek information about their future, particularly if it is something that is connected with the military, there has to be a very high, or, rather, very low ratio of takers going in.

So, is the 55,000 phone calls a lot or a little?

I think it is a surprisingly large number of people who are willing to pick up the phone and make that call.

Mr. MACDONALD. This is in all of the 50 States?

Mr. REATH. Yes, but it excludes Alaska and Hawaii.

Mr. MACDONALD. It comes to about-what. a 1,500 averaging out? Mr. REATH. Yes.

Mr. MACDONALD. Well, maybe you are surprised by that ratio but I am surprised at the ratio of 55,000 calls and only 4.000 names. It is difficult to place a long distance call, but I think there would be enough difficulty there that they would leave their names to get further information.

Mr. NALLE. The first thing they are asked, when the listening back operator answers, or the first thing she gives them is the location of the nearest Army recruiter and following the delivery of that, which is done by computers in ZIP codes and so forth, and she gives the phone number of the nearest Army recruiter, she asks if they would like additional information, and at that point she gets the

name.

I suggest you should call and see how that works and maybe you will get the feeling.