Chain broadcasting is of such vital public consequence and public interest that it should be a business in and of itself, and disassociated from any other business.
This dissenting opinion, delivered last week by two FCC commissioners, raised again an important question of public policy for radio. It was a by-product of the approval by FCC as a whole of the sale of New England's biggest radio chain, the 21-station Yankee Network, to General Tire & Rubber Co. of Akron.
The problem of preventing private interests from secretly polluting the wells of public information was solved long ago, in the case of the press, by simply requiring every publication to publish a list of its owners once a year but allowing anybody, be he butcher, baker or candlestick maker, to own a paper. There is one important difference between the press and radio: any number of different papers can be published, but the number of radio stations is limited by the wave lengths available—a fact which may entitle the Government to have a say in who owns those that are licensed.
These concerns were not discussed by Yankee's new owner-president, big, genial, tough William O'Neil, General Tire president. Said he: "We are not going to disturb the network. . . . This is an investment. . . . This was a wonderful piece of business. . . ."
For his money ($1,500,000), Rubberman O'Neil got a going concern which has made a respectable profit for the last 20 years. Founded in 1922 by sharp, balding John Shepard III, the network owns four stations outright (Boston's WNAC, Providence's WEAN, Worcester's WAAB, Bridgeport's WICC), has contracts with 17 others. It is, in turn, affiliated with the Mutual network.
Taxes were the reason offered by Radioman Shepard for selling. His father, John Shepard Jr., retired Boston merchant, owner of Providence's Shepard Stores, onetime (1930-35) mayor of Palm Beach, and the network's chief stockholder, is 86 and someday there will be estate taxes to pay. Rubberman O'Neil gave John Shepard III a five-year contract to continue as network operations head and board chairman.
Although Rubberman O'Neil seems content to let the Yankee Network alone while his company, now 90% devoted to war goods, works out its war contracts, his post-war radio plans are more active. He sees the network's 6,000,000 Yankee listeners as customers for General Tire in a boom to follow the war. Said he : "New England is a cross section of the best in America. It has everything—big cities, small cities, agricultural areas. . . . And New England people pay their bills—promptly. . . . We do hope to bring to the network some of the spirit of Western gambling."