Television digest with electronic reports (Jan-Dec 1959)

WTAH BUILDING li WASHINGTON with Electkonics Reports WTAH BUILDING ^ WASHINGTON 5. D C • TELEPHONE STERLING 3-1755 Trade Bepori January 10, 1959 ) CHICAGO MART SPURS NEW YEAR OPTIMISM: "Best market in 7 years" is way enthusiastic industry leaders describe this week's showing of their wares at the Chicago Merchandise Mart, sparked by biggest influx of buyers since 1952. Departing from custom, most set makers displayed new products in the home electronic entertainment field instead of warmed-over offerings from their mid-year new-model lines. High-end, top-priced merchandise featured most of the displays ; low-priced specials were conspicuous by their absence. There was no sign of mid-year pricecutting or dumps. As one manufacturer put it; "The industry has lost its timidity toward high-priced, top-quality products. Manufacturers and dealers know that the public is getting more and more quality conscious and they're catering this year to their customers' up-graded tastes." A look into the future of home electronics — new products still in the laboratory — was a prominent part of several displays by manufacturers who brought their engineers along with their salesman. Philco demonstrated its compatible stereo AM system which it has asked the FCC to test (Vol. 14:49) ; Motorola unveiled lab model of what it said is first home stereo TV system (p. 14) ; GE showed an 8-in. , 10-lb. fully transistorized TV set which operates on batteries. High interest was evidenced in all these new developments. Industry spokesman Robert W. Galvin, pres, of Motorola, keynoted the Mart by predicting a "solid" business year for the electronic entertainment industry. He told a press conference that TV sales would exceed 6,000,000, radio would hold its own at about 12,000,000 receivers including auto radios, and that a "fantastic" increase of 300% is due in hi-fi because of mounting interest in stereo sound. Industry displayed discipline & maturity in 1958, said Galvin. "Although sales were down due to the recession, nobody pushed the panic button. There were no major price-cutting liquidations. There was a better relationship between production and sales, with resultant good inventory control and stabilized employment." Last Ditch Fight on Co-op Ad Tax: A phalanx of manufacturers, admen & press formed in Washington this week under the aegis of of the Excise Tax Council to wage a battle against new ruling by Internal Revenue Service which slaps a 10% excise tax on cooperative advertising funds (Vol. 14:13-14,16,22,51). Affirming opposition to the IRS ruling and pledging all-out fight in Congress to obtain remedial legislation were; Advertising Federation of America, National Assn, of Broadcasters, EIA, Assn, of Business Publications, National Electrical Mfrs. Assn., American Home Laundry Assn., Institute of Appliance Mfrs., American Newspaper Publishers Assn., together with the following TV-appliance manufacturers: Admiral, Borg-Warner, Whirlpool, GE & Westinghouse. Other non-represented manufacturers gave notice of support. Representatives of the group met with Chairman Wilbur D. Mills (D-Ark. ) of the House Ways & Means Committee to urge a public hearing on the IRS ruling known as T.D. 6340. Mills was reported as directing his staff to review the co-op tax ruling and report back in time for full committee consideration of the matter prior to its Feb. 1 effective date. Industry group told Mills public hearing is warranted to obtain satisfactory explanation from Treasury officials of legal grounds for repudiating the administrative policy which exempts co-op advertising funds from excise taxes. Policy, group said, was established in 1924, "uniformly recognized" since. Tax Exemption Sought for Radios: New tax ruling to exempt non-entertainment-type radio receivers from the 10% excise tax was urged on the Internal Revenue Service this week by EIA's tax committee. Chairman M. J. McCormack of Sylvania, who ap 13