BW - EP151—004: Jack Benny's Famous Slump—Why Jack Fired General Foods & Signed w/ American Tobacco

Breaking Walls: The Podcast on the History of American Network Radio Broadcasting

By the spring of 1944, Benny’s ratings had continued slipping. That season, his 23.7 rating meant he’d lost roughly four million weekly listeners in just three years. At the end of this season, his contract with General Foods was up. Here's Jack Benny talking about that time. There was tension between the two parties because Benny had helped save Jell-O from going out of business. Jack was also upset with what he felt were second-rate accommodations provided by General Foods during the cast’s ongoing army base trips. Since Benny had full control of his show as NBC guaranteed him the Sunday time slot over any sponsor Benny could sell his program to the highest bidder. Benny’s management team quietly held a sealed auction for sponsorship on February 24th. George W. Hill, the President of American Tobacco, wanted Benny’s show. His chief account executive was thirty-six-year-old Pat Weaver, the future president of NBC. A surprise winner was announced: Ruthrauff & Ryan, agency for American Tobacco’s Pall Mall cigarettes, bid twenty-five thousand dollars per-week for three thirty-five week seasons. That’s roughly Four-Hundred-Forty Thousand Dollars today. The weekly money was payable to Benny for all payroll and production costs. They also included an additional two-hundred-thousand dollars, or three-point-five million today, over the three years for marketing and promotion. American Tobacco also agreed to pay for any network and carrier line charges. The advertising community was stunned. General Foods considered retaliating against Jack by moving The Fanny Brice Show to CBS opposite the Benny program. They also publicized the fact that they were now sponsoring three programs, The Aldrich Family, The Meredith Wilson Show, and Mr. Ace and Jane, for the same cost as just the Benny program. On April 10th, 1944, Jack officially signed a three-year contract with the American Cigarette & Cigar Company to advertise Pall Mall cigarettes for twenty-two thousand dollars per broadcast, including a West Coast rebroadcast. The three-year contract would begin on July 1st, 1944, and run through June 30th, 1947. American Tobacco also had a three year option to renew. Benny was the executive producer. He funded the entire production cost out of his pay. In the case that any cast member, or Jack himself, missed a program, Jack was to furnish a substitute actor for ten thousand dollars, at his own expense. If Jack was absent for six consecutive broadcasts, American had the right to terminate the current season, but not the entire contract. Jack also had to make up for any of his absences by adding additional programs at the end of the season. In the midst of this, on April 30th, 1944 The Jack Benny Program signed on from the Puget Sound Navy Yard in Seattle, Washington. With Dennis Day gone to war, Dick Haymes substituted as the program’s singer.