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Additional material submitted for the record by-Continued
Department of Defense-Continued

Cost per enlisted recruit (Active Forces), fiscal year 1971, esti-
mated (table) --

Fact sheet-Test of paid TV/radio recruiting advertising-
Hours of radio time purchased by Army...

Initial results of impact of Army's TV-radio advertising campaign.
Value of TV and radio public service time for Army recruiting,

1970...

Federal Communications Commission:

Definition of public service announcement.

Letter dated June 4, 1970, stating Commission ruling, to Mr.
Alan F. Neckritz, re "fairness doctrine" complaint against
station KFRC, San Francisco, Calif., with attachments....
Interstate and Foreign Commerce Committee:

Correspondence between Ward L. Quaal, WGN Continental
Broadcasting Co., Chicago, Ill., and John F. Coverley-Smith,
N. W. Ayer & Son, Inc., Philadelphia, Pa....

Mitchell, Hon. Parren J., letter dated March 4, 1971, from Hon. F.
Edward Hébert, chairman, Committee on Armed Services, re cor-
respondence with WBAL-TV, Baltimore...
N. W. Ayer & Son., Inc.:

Contract between Department of Army and N. W. Ayer & Son,
Inc.--

List of TV and radio stations sharing in the Army's paid
broadcast advertising test.

National Mexican American Anti-Defamation Committee, Inc.,
Domingo Nick Reyer, executive director, statement...
Post Office and Civil Service Committee, Subcommittee on Census
and Statistics, U.S. House of Representatives, Charles H. Wilson,
chairman, letter dated April 27, 1971, to Congressman Lionel Van
Deerlin...

Steiger, Hon. William A., article from the Army Times entitled,
"Recruiting Ads Drawing Good Response Army Says".
Television Bureau of Advertising, Inc., membership list..
Van Deerlin, Hon. Lionel:

Letter dated April 20, 1971, from Donald H. McGannon, presi-
dent and chairman of the board, Group W, Westinghouse
Broadcasting Co...

Letter dated April 23, 1971, from Ward L. Quaal, WGN Con-
tinental Broadcasting Co., Chicago, Ill..

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EXPENDITURE OF PUBLIC FUNDS FOR BROADCAST

ADVERTISING

WEDNESDAY, APRIL 21, 1971

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON COMMUNICATIONS AND POWER,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D.C.

The subcommittee met at 10 a.m., pursuant to notice, in room 2123, Rayburn House Office Building, Hon. Torbert H. Macdonald (chairman) presiding.

Mr. MACDONALD. The hearing will come to order.

This morning the Subcommittee on Communications and Power begins the hearing on House Concurrent Resolution 215 introduced by our colleague on the subcommittee, the gentleman from California, Mr. Van Deerlin. The resolution would, if adopted, express the sense of Congress at the various levels, Congress should not spend public funds to purchase broadcast time for the carriage of their advertising.

Implicit in this resolution is the concept that the announcements of the various levels of Government, Federal, State, and local, should be carried by radio and television broadcast stations without charge in observance of the obligation they assume in receiving their license to serve the public interest, convenience, and necessity.

As I understand, this is the basis on which such announcements have generally been carried in the past. This issue was brought into focus by the Army recruiting command's commitment to spend $10.6 million for 4 months' radio and television recruiting campaigns. It will be the purpose at these hearings to explore all of the facets of this issue.

(The text of H. Con. Res. 215 and departmental report thereon follow :)

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[H. Con. Res. 215, 92d Cong., 1st sess., introduced by Mr. Van Deerlin on March 18, 1971]

CONCURRENT RESOLUTION

Whereas radio and television broadcasters are licensed to serve the public interest, convenience, and necessity; and

Whereas the Advertising Council and numerous radio and television broadcasters have, voluntarily and without charge, cooperated in presenting public service announcements for the Federal and State and local governments, and departments and agencies thereof; and

Whereas the United States Army Recruiting Command has committed itself to the expenditure of $10,600,000 for a fourmonth radio and television recruiting campaign; and

Whereas freedom of expression and vigorous and unfettered media for the dissemination of news, views, and information are essential parts of this Nation's legal and social traditions and are absolutely necessary to the existence of any free democratic society; and

Whereas the receipt of significant sums of money by radio and television broadcasters from a department of the Federal Government raises the specter of Government influence over this sensitive media: Now, therefore, be it

1

Resolved by the House of Representatives (the Senate 2 concurring), That it is the sense of the Congress that the 3 Federal Government, State and local governments, and de4 partments and agencies thereof should not expend public 5 funds to purchase time for the carriage of advertisements by 6 radio or television broadcast stations.

Hon. HARLEY O. STAGGERS,

DEPARTMENT OF DEFENSE,
OFFICE OF THE GENERAL COUNSEL,
Washington, D.C., April 20, 1971.

Chairman, Committee on Interstate and Foreign Commerce, House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: Reference is made to your request for the views of the Department of Defense with respect to H. Con. Res. 215, 92d Congress, "Expressing the sense of Congress with respect to paid advertisements broadcast for the Federal or State or local governments or departments or agencies.” The proposal would resolve it to be the sense of the Congress that the Federal Government, State and local governments and departments and agencies thereof should not expend public funds to purchase time for the carriage of advertisements by radio or television broadcast stations.

Title 10, United States Code, Section 503, states that "The Secretary concerned shall conduct intensive recruiting campaigns to obtain enlistments in the Regular Army, Regular Navy, Regular Air Force, Regular Marine Corps and Regular Coast Guard." The President has established the goal of reducing draft calls to zero by June 30, 1973 and relying on volunteers after that date. In order to achieve this goal the Department of Defense has proposed a comprehensive program to make service life more attractive in order to increase enlistments and reenlistments. We have also requested Fiscal Year 1972 funds for a more intensive recruiting campaign, including an expanded advertising effort.

The achievement of an all-volunteer force will depend, in large part, on our ability to inform the youth of the nation and their parents of the facts about military service. The judicious use of advertising is a necessary part of a successful recruiting campaign.

The Department of Defense will have a continuing need for the public service time granted by broadcasters for recruitment advertising. We consider paid television and radio advertising as a possible supplement to public service time and not as a replacement thereof. Unfortunately, only about 10 per cent of the public service recruiting messages are broadcast during prime viewing and listening hours. In order to reach a wider audience, it may be necessary to purchase prime broadcast time.

It is the intention of the Department of Defense to use paid broadcast advertising only if it proves to be cost-effective compared to other means of attracting additional volunteers. The Army is currently conducting a threemonth test of the effectiveness of prime-time paid television and radio advertising. The military departments were directed to make no further obligations or expenditures for television or radio time unless the results of the Army advertising test are evaluated by the Office of the Secretary of Defense. The evaluation of the Army test includes a measurement of the gain or loss in public service time. The Department of Defense believes that public-spirited broadcasters will recognize the need to continue providing public service time during and after the conduct of the Army's test.

After the Army's paid advertising test is thoroughly evaluated, a decision will be made as to future expenditures for broadcast time. In the event the test results are favorable, the military departments should have the opportunity to use paid television and radio advertising for recruiting to supplement the public service time granted by broadcasters.

In view of the above comments, the Department of Defense recommends that no action be taken on H. Con. Res. 215.

The Office of Management and Budget advises that, from the standpoint of the Administration's program, there is no objection to the submission of this report for the consideration of the Committee.

Sincerely,

J. FRED BUZHARDT,
General Counsel.

Mr. MACDONALD. Our first witness this morning is the Honorable Robert Bartley, Commissioner of the Federal Communications Commission.

Mr. Bartley, it is nice to have you here.

STATEMENT OF ROBERT T. BARTLEY, COMMISSIONER, FEDERAL COMMUNICATIONS COMMISSION; ACCOMPANIED BY WILLIAM RAY, CHIEF, COMPLAINTS AND COMPLIANCE DIVISION

Mr. BARTLEY. Thank you, Mr. Chairman.

Mr. Chairman and members of the committee, I appear before you this morning to be of whatever assistance I can in your consideration of House Concurrent Resolution 215.

The Commission takes no position on whether the Federal Government, or State and local governments, should expend public funds to purchase time for carriage of advertisements by radio and television stations.

However, the Commission does encourage radio and television stations to broadcast public service programs and announcements. Broadcast stations generally carry a significant number and as the resolution notes:

*** the Advertising Council and numerous radio and television broadcasters have, voluntarily and without charge, cooperated in presenting public service announcements for the Federal and State and local governments, and departments and agencies.

The Commission has always required licensees to serve the needs and interests of their communities. Local needs and interests are in some instances inseparable from national needs and interests such as the raising of an army and the sale of E bonds. Although the Commission considers public service announcements as only one of several means by which the broadcaster can serve local needs and interests, they are a significant means. We do require that all applicants state the number of unpaid public service announcements they propose to carry during a typical week, and that each licensee keep as a part of his program log a record of these announcements, including the name of the organization on whose behalf the announcement is made. In order that the audience is made aware of the source of material broadcast, section 317 of the Communications Act of 1934, as amended, requires an announcement of who has paid for or furnished the material. Thus, the Commission's rules implementing section 317 provide that:

When a broadcast station transmits any matter for which money, services, or other valuable consideration is either directly or indirectly paid or promised to, or charged or received by, such station, the station shall broadcast an announcement that such matter is sponsored, paid for, or furnished, either in whole or in part, and by whom or on whose behalf such consideration was supplied.

If an agency should determine that additional advertising is required to carry out its mission and is prohibited from spending any portion of the advertising budget on broadcast media, the question might well be raised as to whether the money would simply be allocated to other media such as newspapers, periodicals and other advertising methods.

Government agencies have in the past purchased advertising time on broadcast stations to promote highway safety, to promote an event such as a State fair, to promote a Government-owned utility company, and to promote tourism. Our staff also received an indication

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