Television digest with electronics reports (Jan-Dec 1959)

NARDA CRACKS DOWN ON FREE SERVICE WARRANTIES: An end to the warranty race in the TV-radio-appliance industry was demanded this week at big Chicago convention of National Appliance & Radio-TV Dealers Assn. The aproximately 600 dealers attending conclave heard pres. Joseph Fleischaker call for "economic sense" by manufacturers in setting the periods within which new customers get free parts & service. "Most important programs of NARDA," said Fleischaker, "are campaign for the reduction of warranties to something that makes economic sense for dealers, distributors and manufacturers alike, and initiation of a School of Service Management. It is significant that both these programs have to do with service. Here more than anywhere else have we failed as an industry to do a satisfactory public relations job. By freeing the consuming public of the misconception that it has a perfect right to unlimited service on appliances and TV — by starting to train it to expect a reasonable amount of service & service expense — we take perhaps the most important step toward changing the attitude from believing that our merchandise isn't up to some mythical standard, to recognizing that our service is good; that it, like our merchandise, represents a splendid value." Defense of RCA warranty policies and refutation of charges RCA Service Co. is a subsidized adjunct of parent company was made by RCA Service Co. pres. Donald H. Kunsman. "RCA believes there should be a reasonable warranty on a new product," said Kunsman. "RCA believes that [the TV] warranty should include both parts and labor for a maximum of 90 days... [It] does not believe in the needless extension of warranty labor nor in the abuse of the warranty practice." RCA Service Co. has closed 60 unprofitable branches since 1953, Kunsman told the convention. He said the Service Company's |6.95 per home call charge is nearly 40% more than the average |5 charge by the service industry and leaves plenty of room for the independent Serviceman to compete. "RCA Service Company is not subsidized in any way, shape or fashion," he concluded. CANADA PROTESTS ANTI TRUST PATENT SUIT: Couched in the diplomatic phrases of a State Dept, press release this week was a warning that Canada takes a dim view of Justice Dept.'s anti-trust action against GE, Westinghouse & Dutch-owned Philips (Vol. 14:48). Suit alleges 3 defendants manipulated the patent operations of their Canadian subsidiaries so as to limit imports of U.S.-made TVs, radios & phonos into the rich Canadian market. In reporting on meeting of Joint U. S. -Canadian Committee on Trade & Economic Affairs in Ottawa early this month, release noted: "The anti-trust proceedings recently launched in the U.S. courts against parent companies of Canadian subsidaries in respect to [their] participation in Canadian Radio Patents Ltd. were discussed. The Canadian ministers expressed concern over the extra-territorial effect of the decree sought by the U.S. Dept, of Justice and the implications of such action [of] control over Canadian companies acting in conformity with Canadian laws and Canadian commercial policy. It was agreed further discussions will be held at the ministerial level." Discussion was more heated than the guarded language of press release would indicate, we were told by a State Dept, spokesman. He said Canadian representatives seriously questioned "propriety" of the U.S. suit which is regarded as an attempt by U.S. to dictate Canadian economic affairs and interfere with the lawful operations of the Canadian patent pool which has been in effect many years. Dismissal of Govt.'s suit was sought this week in N.Y. Federal Court by the defendants on ground it "conflicts with Canadian law and public policy." GE's brief contended that Canadian Radio Patents was formed under Canadian law in 1926 to set up a single licensing source to encourage manufacture of home entertainment equipment in that country. It denied that its Canadian subsidiary exercised control over