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That is just to mention a few of the big 50,000-watt stations not only carrying network programs, but selling daily broadcasts sponsored by beer, advocating the purchase, the consumption, and the use of alcoholic beverages.

I have gone to each one of these stations personally, offered to pay for my time on the same basis as the beer interests, and submit my script 24 hours in advance, in order that they might carefully check it with facts, and every one of these stations so named has refused for several years to sell me a broadcast to present the claims of the millions of people that are represented in this area of territory blanketed by these same radio stations.

Our boys went around the world, and fought and bled and died, and their bodies lie scattered around the globe. They were fighting we were told, for free speech. But when only one side is permitted to present its views, over the great medium of the radio, and the other side is shut off the radio, that is no more free speech than the kind of speech they had in Europe under Adolf Hitler, in Italy under Mussolini, or in Japan under Tojo.

In America, we believe in free speech, fair play, and equal opportunity. But the radio station networks, and the individual radio stations, by their self-promoted policy on beer and wine—they do not advertise hard liquors—and by their self-inaugurated policy on beer and wines, and selling great choice periods of time year after year to promote drinking and to promote the liquor interests, shutting off the other side of the question, are violating what we believe is one of the great traditions of America.

Senator REED. Mr. Morris, do you make any distinction in your mind as between radio advertising and newspaper and periodical advertising?

Mr. MORRIS. Yes, sir; I make a great distinction. And it grows out of the difference between newspapers, magazines, and radio. Any group of people that want to get together, and who have sufficient capital, can start a magazine or a newspaper and sell it to whom they will, and they can sell space to whom they will. But in radio, we cannot do that, because we must have a frequency on which to operate, and that frequency belongs to the public. And the radio mañ must get a permit from the FCC. That makes the radio station manager a trustee of that frequency, to operate it in the public interest, convenience, and necessity.

Senator REED. This committee, you know, also deals with radio.

Mr. MORRIS. I understand that. And there is another bill before the committee. Senator REED. Have you ever been denied access to newspapers

and periodicals?

Mr. Morris. During the war, when newsprint was greatly curtailed, I was repeatedly refused space in some of the big metropolitan dailies, and the very days on which they would not sell me even 1 inch of space to present my views, they sold a quarter-page or almost a half page to the brewing interests and the liquor interests concerning this matter of the restriction on the use of wheat, and so on.

Yes, sir; I have been denied. My own home city paper, the San Antonio Evening News and Express, denied me that privilege.

And the Louisville Courier-Journal in Louisville, Ky., likewise denied me that privilege.

Senator Reed. That is, entirely denied you, or restricted you as to the amount of space?

Mr. MORRIS. No, sir; they absolutely denied me wholly and completely. The only space I could get was a little 2-inch ad on the church page on Saturday, and then it had to be linked up to some kind of church service.

Senator REED. Thank you.

Mr. MORRIS. With the permission of the committee, unless you have further questions that you would like to ask me, I will be happy to submit my prepared document for the benefit of your committee.

And if your committee wants cuts for those maps to insert in its record, I will be happy to secure the cuts at my expense for the use of the committee.

Senator REED. We will let you know, Mr. Morris.
Mr. MORRIS. That is perfectly all right.

Senator REED. Normally, in very voluminous matters like petitions and lengthy pamphlets—this is a lengthy pamphlet, from some points of view—we place such material in the files of the committee and do not undertake to reproduce them in the printed testimony.

Mr. MORRIS. May I say one other word of explanation ?

You will see in the front of that a picture of 20,000 letters. I have been before other committees of Congress, and I asked my listeners to write to Congress, and they flooded the committee with such a flood of mail, which got tangled with other mail matters of the committee, and created such confusion that this time I just asked them to write me, and save the committee all the confusion that grows out of such a thing. Because we believe your committee is open to the arguments in the case, and we are not trying to put any pressure on you.

Senator REED. Some of your people failed to heed that admonition. Mr. MORRIS. Did they?

If I have any time left, we will reserve it for the later periods in the discussion.

Senator REED. All right, Mr. Morris.
Mr. MORRIS. Thank you, sir.
Senator REED. Bishop, will you call your next witness?

Bishop HAMMAKER. Mr. Chairman, I will ask Dr. R. H. Martin, who has made a very intensive study of liquor advertising, to tell you something of his conclusions. STATEMENT OF DR. R. H. MARTIN, EDITOR IN CHIEF, THE

CHRISTIAN STATESMAN, PITTSBURGH, PA. Dr. MARTIN. Mr. Chairman, and members of the committee, my statement is limited to one phase of the subject under consideration; namely, the amounts spent in the advertising of alcoholic beverages.

Due to the fact that the published estimates as to these amounts differed widely, and were little more than guesses, I decided to make an investigation of this subject and to go to nonpropaganda sources the most reliable sources available—to obtain, as far as possible, the approximate amount spent from year to year by the alcoholic beverage industry in advertising its products.

:

For the last 5 years I have given considerable time and effort to this investigation. The sources to which I have gone for this information, a list of the organizations and publications from which the figures Í have used were obtained, or based, is appended to this statement.

These I have appended to the statement which I wish to file for this committee.

At the outset it should be stated that definite figures are obtainable only on the larger concerns engaged in the manufacture of alcoholic beverages whose advertising is in the upper brackets and, for the most part, on a national scale. The most extensive and thorough investigation I made was for the years 1944 and 1945. I found the

I advertising expense in 1945 to be approximately the same as in 1944.

On the authority of the Alcohol Tax Unit of the Internal Revenue Department, the number of concerns licensed to manufacture alcoholic beverages, was at that time 1,470: Distilleries, 142; breweries, 463; wineries, 865. My investigation included only 142 of the largest of these companies, divided as follows: 63 distilleries and wineries, and 79 breweries.

The total advertising expense of these 142 companies we found to be approximately $76,600,000, while in the remaining companies, something over 1,700 of them, most of them smaller companies, what they spent in advertising, we do not know.

Certainly it would be sufficient to make a total of at least $100,000,000 for all of the companies engaged in the manufacture of alcoholic beverages.

A startling fact was brought to light in this investigation; namely, that the liquor industry is heading up into a gigantic monopoly, with a few powerful distilleries largely

dominating the entire industry and capable of exerting a tremendous power on the financial, economic, social, and political life of America.

In recent years a few of the larger distilleries have been taking over smaller distilleries, and, more recently, wine-producing companies and even breweries.

For example, Schenley Distillers Corp. now has at least 50 subsidiary companies, including several wineries, and 1 brewery.

Here are the distilleries. Here are the advertising expenses of seven big distilleries in the million-dollar class of advertisers for the year 1944, in magazines, newspapers, and network radio, on which definite figures were obtainable. These 7 distilleries advertised over an average of 12 media. That leaves nine unaccounted for. And I have made an estimate-I can't go into detail-as to what they spent over the nine others.

This is the estimate: Outdoor advertising---

$3,000,000 Transportation advertising

2, 500, 000 Window and counter display

1, 500,000 Other media--

2, 000, 000 The total is.

9,000,000 That would bring the total to $32,000,000 as the advertising expense of these seven distilleries.

Now, this is 42 percent of the advertising expense of the $76,600,000 of the 142 companies which my investigation covered, and one-third of our estimate of $100,000,000 for the entire 1,470 companies engaged in the manufacture of liquor, wine, and beer.

Now, I have made an investigation for 1946.

I went to New York last week, and got Printers' Ink, and Advertising Age, and got advance copies of those. I have here the figures definitely for these seven distilleries. You will find them at the top of the next page, Seagrams, Schenley, National, and so on. And for 1946 their advertising expense for magazine, newspapers, and the radio went up from $23,000,000 to $27,000,000.

They advertised over an average of nine other media, and my estimate for those nine is $10,000,000, rather than $9,000,000, due to the fact that the advertising expense, outdoor and other, has gone up.

So you add that $10,000,000 and you have these five distilleries with advertising expense over all media, amounting to the tremendous sum of approximately $57,000,000.

Following that, I have the table here to show the increase in the advertising expense of these seven distilleries over these three media, from 1942 to 1946, inclusive. The figure rises from about 1523 million in 1942 to 27 million in 1946. That shows that there was an increase of 70 percent in the advertising expense of these companies over these media from 1942 to 1946; that the increase in expense of 1946 over 1945 was $3,296,632, or 14 percent.

The table is as follows:

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There has been a decided increase in the advertising expense over magazines, something of an increase in radio, and I think a little decrease in newspaper advertising. But I estimate that the increase for all of them would be about 15 percent; and on that basis, for these 142 companies, for 1944–45, that would bring the $76,600,000 up to about $88,000,000.

Senator REED. Dr. Martin, do you know of any periodicals that have declined liquor advertising ?

Dr. MARTIN. Oh, yes. Periodicals, you say? And the radio also; yes. I do not have those figures.

I Senator REED. There are a lot of newspapers that do not accept it? Dr. MARTIN. A great many of them. Senator REED. I did not know what the policy of the periodicals

Dr. Martin. Some of these other gentlemen have the testimony. I do not have that. And there are quite a number of magazines, too; the Saturday Evening Post, and so on.

Mr. JOHNSON. We have that, Your Honor.

Senator Reed. Now, Dr. Martin, your 5 minutes has expired. However, Mr. Morris did not use more than 22 minutes, so perhaps, Bishop, you might want to give Dr. Martin 2 minutes.

was.

Dr. MARTIN. This would bring our estimate of the total advertising expense of all the companies manufacturing alcoholic beverages up to a grand total of about $112,000,000 for the year. Now, just a word about magazines:

Among the many media that the liquor industry use, magazines stand clearly at the head, and that advertising is confined very largely to a few of the larger magazines, whose circulation mounts up into the millions.

Now, with the limitation of my time, I should like to speak of the magazines published by one company, Time, Inc., which publishes Life, and Time, and Fortune.

I went through the 52 issues of Time and of Life and the 14 issues of Fortune, to get the number of liquor advertisements—1,137.

Then, to get the revenues, I went to the Standard Rate and Data Service, and the tabulation on page 6 of my statement shows what I found.

Now, this is a one-time rate that I have here; and for frequency, as you know, there is a slight reduction.

For Life, it would approximate $6,000,000; and for Time and Fortune, about $2,000,000.

Now, they stand clearly at the top of the whole list. And the total for the three magazines, as shown here, is $8,422,852.

Now, I have herefore me an article by Mr. Gavin, who is the editor of Liquor, Inc., and he says that back in 1934, their total advertising expense was $3,000,000. That has mounted up until, as of 1945, he says that the expenditures of the liquor industry rank high in the first 10 of all industries.

Now, 10 years ago, the Department of Commerce published the percentage of the total sales of these different industries expended in advertising, and at that time they put liquor and beer up fourth from the top, I think it was, of 91 industries.

Senator REED. We have run over 10 minutes now, Dr. Martin. Thank you very much. Bishop HAMMAKER. Next we shall hear from Mr. Samuel Reid, of Philadelphia, who is a leader in the Presbyterian Church and an outstanding businessman.

Will you take the chair please, Mr. Reid?

STATEMENT OF SAMUEL REID, MODERATOR, PHILADELPHIA PRES

BYTERY OF THE UNITED PRESBYTERIAN CHURCH OF NORTH
AMERICA, PHILADELPHIA, PA.

Mr. REID. To the honorable members of the Senate Committee on Interstate and Foreign Commerce, in hearing on S. 265, Capper bill, greetings.

My name is Samuel Reid, of Philadelphia, now moderator of the Philadelphia presbytery of the United Presbyterian Church of North America.

At our meeting of general assembly, our highest church court, whose membership is elected by various presbyteries, consisting of pastors and laymen, in session at Tarkio, Mo., May 29 to June 3, 1946, took the

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