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Mr. TABER. Do you cover the same places every day, or do you gallivant around a little? Mr. ALSTock. We try to cover everything, sir. Mr. TABER. Do you cover the same places every day, or do you go around, is it a mobile activity? Mr. ALSTOCK. It is split up three ways, sir. We have a regular circuit where we try, with organized audiences, to cover the same places of exhibition, not necessarily the same audiences, at definite periods. Then we have another group that we cover infrequently. The third group we cover only if transportation facilities are available. For example, the President of Brazil gave us a car and locomotive to go into the back country to screen these pictures. In Bolivia we showed pictures to the President, and he, in turn, made transportation facilities available to go into the back country. We probably cover the same audience, at the most, in the major part of Latin America two or three times a year. In Argentina we cover it very frequently because of the more highly organized society. Mr. TABER. The Argentine people are more prosperous than the others? - Mr. ALSTock. That is correct. Mr. TABER. Unless, perhaps, Venezuela, and I do not know about that. They are more prosperous than most of them. Mr. ALSTock. The audience is much different. In Argentina there is a higher percentage of literacy. . Mr. TABER. You mean the Argentine crowd would require a different type of movie from the others? Mr. ALSTock. That is correct, sir. Mr. TABER. In Argentina they have regular commercial movies, do they not? Mr. ALSTock. Yes, sir; they do. , Mr. TABER. And they pay to go in to see them? Mr. ALSTOCK. That is correct. Mr. TABER. I do not know how far that same practice exists in other places, but maybe you could tell us. Mr. Alstock. There are two types of audiences in the other Americas. There are approximately 6,500 first-class theaters, of which Argentina has less than 1,000. Brazil has the largest number, approximately 2,000, and Mexico about 900. (Discussion-off the record.) Mr. TABER. News reels are not in this particular item? Mr. Alstock. Yes, sir, they are. Mr. TABER. That is Item No. 27 Mr. ALSTock. Yes. Mr. TABER. That means that these 6,500 movie houses are operating practically every day, does it not? Mr. Alstock. That is right, every day, and almost every evening. Mr. TABER. Are the folks you operate on in the same places that these regular movie houses are, or are they outside of those areas? Mr. ALSTock. They are outside of the motion-picture areas, and generally in the rural areas where there are no theaters. We split the activity by supplying to the commercial theaters the type of pictures that can be shown acceptably. The documentary and nontheatrical films are distributed in areas where there are no commercial theaters. Mr. TABER. Your operation covers a little less than 3 percent of the South American movie set-up; is that about right? Mr. HARRIsoN. No; we cover all of the other republics. Mr. TABER. You have 6,500 commercial theaters, and you have an average of 230 showings a day. Now, maybe my arithmetic is wrong. (Discussion off the record.)

PErtson Ai, services

Mr. TABER. In this set up here you have roughly an increase from $169,000 to $172,000, indicating quite a little more help. Now, I think it really means probably 8 or 10 more people, maybe more. I am wondering why you need more people for this activity. You are expanding instead of contracting. Mr. ALSTock. There are two new positions, that is all. Mr. TABER. Two new positions? Mr. ALSTOCK. Yes, sir. Mr. TABER. You have 6 extra man-years in the field and a lot of this extra stuff. I do not know how many positions you have. It does not exactly tell. Mr. HISLE. That information is given at the bottom of page 4. On a position basis we have 40 positions allowed now, and we are asking for 42, or an increase of 2 positions. Mr. TABER. You have 46 man-years down for next year. Mr. HISLE. Yes. * Mr. TABER. It is generally about 80 percent of the number of positions, and on that basis I was figuring you probably had 8 or 10 more positions. fi Mr. HISLE. We have 6 man-years in for W. O. C. employees in the e101. Mr. TABER. Yes. Mr. ALSTOcK. We use as many men from the industry as we can without any charge to our division. Mr. HISLE. On page 1 the increase in administration is analyzed, Congressman Taber. It is $11,494 for increased man-year requirements and two new positions. The cost of the two new positions is only $5,600. Mr. TABER. But you have not included your overtime, which runs about $17,000. Mr. HISLE. It is $18,500. Mr. TABER. $18,500? Mr. HIslB. Yes, sir. Mr. TABER. That means a bigger figure than I gave you. Mr. HIsle. No; $11,494 is the increase over 1945 on a comparable basis, that is, after deducting overtime from 1945. Mr. TABER. Now, what other country is there that is doing this i. of thing in the movie business or the news reel business down ere? Mr. ALSTock. In Latin America their efforts so far are confined to theatrical operations in Argentina, Mexico, Chile, and Brazil. Mr. TABER. Who is doing it? Mr. ALSTock. The commercial privately owned companies. ... Mr. TABER. That are not operated by any Government agency? Mr. ALSTock. No, sir; they are privately owned

Mr. HARRIson. The British news reel is given freely to every theater in South America for nothing.

Mr. TABER. You are doing that too, are you not?

Mr. HARRIson. No, sir; we are not.

Mr. ALSTock. We make them pay for it. The United States motion-picture companies have a regular standard booking procedure, under which the theaters pay for our reels as contrasted with the British policy of giving the news reels away.

Mr. HARRIson. Our news reels are commercial news reels which are sent down by four or five of the major companies. We have an agreement with these companies that we can include in the news reels for distribution in the other republics material of special interAmerican significance.

RADIO DIVISION

Mr. CANNoN. Turning to the Radio Division, you have I see here a reduced estimate for each item under the Radio Division with the single exception of your third item, Facilities. There the increase is rather substantial, $283,390. I wish you would tell us briefly the purpose for which this fund is used, and let us know what is the need for the increase.

transmitter Facilities

Mr. OGILVIE. The break-down, Mr. Chairman, is found on page 10, as follows:

Facilities Estimated obligations: 1945----------------------------------------------------- $1,207,360 1946----------------------------------------------------- 1,490,750 Increase (+) 1945 1946 or decrease (–) Transmitter facilities--------------------------------------------- $597,300 $886,750 +$289,450 Additional studio lines-- - 18,060 18,000 –60 Station time------------------- -- 318,000 333,000 +15,000 Point-to-pint facilities---------- - 274,000 253,000 –21,000 Total.------------------------------------------------------- 1,207, 360 1,490, 750 +283,390

The estimate for the fiscal year 1946 to provide funds for facilities amounts to $1,490,750, an increase of $283,390 over the funds available for the fiscal year 1945. This estimate is for the operation of 36 transmitters which are shared with the Office of War Information. The Office of War Information pays $1,773,492 for two-thirds of the total cost and this Office pays $886,746 for onethird of the total cost of $2,660,238. Transmitter facilities.—The hours of transmission for the three language services during the 1946 fiscal year will be as follows: Eastern War Time English language transmissions------...----------- 10:00 a.m. to 2:00 a. m. Portuguese language transmissions - - - - - - - - - - - - - - 6:00 a.m. to 7:15 a. m. - 11:30 a.m. to 12:45 p.m. 5:00 p.m. to 11:30 p.m. Spanish language transmissions------------------ 6:45 a.m. to 10:30 a. m. 11:45 a.m. to 3:30 p.m. 5:30 p.m. to 2:00 a. m.

The above transmission schedule provides for a total daily transmitter time of 178% hours (24% hours Portuguese, 80% hours Spanish, 74 hours English) for the 1946 fiscal year.

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Station time.—Local station time for rebroadcast of short-wave programs in the other American republics purchased through the contractual arrangements with the National Broadcasting Co. and the Columbia Broadcasting System is estimated at $333,000 for the 1946 fiscal year, an increase of $15,000 over the previous year's estimate, due primarily to increased time rates of some of the affiliated stations of the National Broadcasting Co. and the Columbia Broadcasting System. Point-to-point facilities:-This estimate includes the facilities for special pro: grams in Argentina and Brazil, overseas battle-front pick-ups, and contemplated special events such as VE-day, world conferences, etc. Mr. OGILVIE. You will notice that the primary increase there comes in the item “Transmitter facilities.” Transmitter facilities represent the short-wave transmitters in the United States which, Y. will recall, were taken over in 1942 and are operated by the icensees for O.W.I. and ourselves on a one-third and two-thirds basis. The increase that is represented this year in our budget is due to the fact that the transmitters which were ordered in 1942 and have been under construction since that time came into operation durin the 1945 fiscal year, so that in the 1946 fiscal year we will have a i complement of 36 transmitters working. Mr. TABER. Does this mean the purchase of facilities? Mr. OGILv1E. No, sir; that is the actual cost to the United States Government for the operation of 36 short-wave transmitters jointly used by the O. W. I. and O.I. A. A. Mr. WIGGLEsworth. How do you get your frequencies? Mr. OGILVIE. The frequencies are assigned to us through the Federal Communications Commission, through a joint board with the Army, and the Navy, and the Federal Communications Commission. Mr. WIGGLEsworth. And how did you get these facilities? Mr. OGILVIE. Some of these facilities were taken over from private licensees and 22 transmitters were obtained by the Government through the Office of War Information. Mr. WIGGLEsworth. From private companies? Mr. OGILVIE. There were 14 original transmitters which were taken over from the private licensees. Mr. W1GGLEsworth. I wish you would give us a statement for the record that would show the amounts paid for the purchase or lease of facilities by the concerns from which they have been acquired. Mr. OGILVIE. Fourteen of the transmitters, sir, were taken over from the private licensees and are now operated under cost contract for the Government. Likewise, the additional 22 transmitters are operated by licensees under cost contracts for the Government through O. W. I. and O.I. A. A. Mr. WIGGLEsworth. I would like to see a list of the companies and the rental that is paid in each instance. Mr. HISLE. We have a list showing the transmitters, what the O. W. I. pays and what we pay. (The list referred to is as ñows)

Transmitter facilities % monthly 4 hi % total Licensee Transmitters operatio |%.oly monthly cost guard cost costs C.B.S.----------------- WCRC-WCBX-WCDA - $8,181.36 None $8,181.36 G. E. KGEI-WGEO-WGEA 6,374.05 $568. 88 6,942.93 - WRCA-WNBI-WNRE 4,442.04 407. 16 4,849.20 ----------------- 2, 163.92 636. 10 2,800.02 -------------------- 1,983.08 3.25.00 2,308.08 ----------------- 2,711.66 75.00 2,786.66 ---------------- 1,227.85 None 1,227.85 WRUA-WRUS (new) 2,489.86 None 2,499.86 "Bethany stations-- 12,000.00 None 12,000.00 KWID-KWIX.--- 3,500.00 None 3,500.00 - WOOC-WOOW... 3,595.66 250.00 3,845.66 WGEX 1,048.27 None 1,048. 27 2,066.67 None 2,066.67 3,431.90 407. 16 3,839.06 8,000.00 None 8,000.00 8,000.00 None 8,000.00 -------------------------------------------- 71,226.32 2,669. 30 73,895.62 Office of Inter-American Affairs 9% annual cost of 36 transmitters----------------------------- $886,746.00 Office of War Information H annual cost of 36 transmitters----------------------------------- 1,773,492.00 United States annual cost of 36 transmitters------------------------------------------- 2,660,238.00

Mr. WIGGLEsworth. This is a joint operation with the O. W. I.? Mr. HARRIsoN. The O. W. I. has about two-thirds of the time and we have about one-third. Mr. WIGGLEsworth. Does the O. W. I. broadcast to South America? Mr. HARRIson. No; they use the transmitters about two-thirds of the time broadcasting to other parts of the world. They do not broadcast to South America. The O.I.A.A. does that.

aw Ertage or salarties paid

Mr. CASE. I have just been making a little quick calculation of the average salaries paid in the Radio Division and other divisions, some of which we have not come to yet, but it seems to me in running through a description of the various positions that the average salaries run higher here than they do in the average Government agency. If my quick figuring is correct, the average salary for 84.7 man-years for the ‘. #. is $3,300; the average salary for the Motion Picture Division for 30.4 man-years, is $3,510; the average salary for 35.7 positions or man-years in the Guidance and Reference Division is $3,700. Do you know how those average salaries compare with like personnel in other Government agencies?

Mr. HIsle. I am familiar with one other war agency, the Foreign Economic Administration, and I think theirs run around $2,900 or $3,000. The over-all average salary in our estimates here in $3,049.

Mr. HARRIsoN. We have one major problem that we have to meet, and that is the problem of getting people to work for us who speak Spanish and Portuguese. It means that we have to employ generally a higher caliber of, or higher priced personnel, than the average agency which can hire clerks and stenographers to do their work in only the English language. Also, we are dealing with highly technical and professional operations, radio, press, and motion pictures, which require highly skilled and experienced personnel.

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