Television digest with electronic reports (Jan-Dec 1952)

7 Civilian production is one side of the mobilization coin. While it will dip drastically this year, military production will rise far more than proportionally, dollar-wise. These are best estimates of 1952 electronics output, compared to 1951: TV-radio-phonos, etc., down 52%. Industrial & commercial equipment, up 20%. Military equipment, up 165%. Whopping military electronic production won't all be in TV-radio plants, of course. Many electronic contracts have gone to other industries which manufacture electronics as sideline — such as aircraft and auto companies. Others went to highly specialized non-TV electronic manufacturers, including quite a few new firms. It will be a vastly expanded electronics industry which accomplishes these new production miracles — and many TV-radio companies shared in this expansion, estimated at $275,000,000 since Korean outbreak (see Mobilization Notes, p. 8). The difficult "adjustment" period — transition from heavy civilian to heavy military production — is nearly over for some electronic plants. For others, the end is in sight. Tooling-up, research & development, production designing, are gradually giving way to actual output of military end-items and components. Some military electronic items will reach maximum production levels by end of second quarter. These include military radio, TV and power supplies. Others, such as radar, sonar, specialized test equipment, will hit stride late in 1952. Military electronic production won't hit quick peak, then begin gradual drop-off, contrary to popular belief. Instead, Pentagon expects long plateau of fullscale production, lasting into 1954, at least. Enough electronic orders to last 20 months — at 1952' s anticipated going rate of production — have already been placed with prime contractors. On top of that is another 10-month backlog of unplaced orders — promising at least 30 months of near-capacity defense production. * * * * In any discussion of military production, question of "lag" — failure to meet schedules — is sure to arise. Here it definitely can be said, on best authority, that no major military items have been delayed by lack of electronic equipment. It's been charged that electronics production is 50% behind schedule. This is true — on paper. But these factors must be taken into consideration: (1) Many early military schedules admittedly were unrealistic, too-high goals set merely "to shoot at." (2) The 30% "slippage" or "lag" is in overall dollar procurements ; and procurement expenses include tremendous amounts for costly research & development, engineering and prototype modeling, which must be completed before actual production begins — but don't register statistically in terms of delivery of military "hardware". In this new "electronic mobilization," incidentally, only 20% of military electronics procurement dollar is spent for radios, 25% for radar. How remainder is divided is undisclosed, but its size gives some idea of omnipresence of electronics in all phases of modern warfare. FCC’s patent-filing proposal (Vol. 7:48, 8:1) precipitated 100 or more protests, mostly from non-electronic companies, and Commission plans to issue supplementary notice saying proposal isn’t as sweeping as most objectors believe it to be. Typical of responses was one from N. Bjomdal, Tech Labs, Palisades Park, N. J.: “Enter our exasperated protest against this asinine bureaucratic encroachment upon private business. Small business is now drowning in a sea of paper forms.” Protests were sparked by warning from National Patent Council, 1434 W. 11th Ave., Gary, Ind. Proposed new regulation for elimination of excessive profits from defense contracts and subcontracts was printed in Jan. 10 issue of Federal Register, available from Govt. Printing Office, Washington. Renegotiation Board has asked for comments and suggestions on the proposed rules, set Jan. 30 as deadline. Philco’s $40,000,000 three-year loan revolving credit, arranged to finance defense production and 70% guaranteed by Navy, is being extended by 18 banks headed by the Pennsylvania Co. for Banking & Trusts. Philco’s military electronic production first quarter 1952 should exceed total for all 1951, says company, which in last war was one of largest producers of airborne radar and VT fuzes. Olympic Radio disclosed this week that part of stockholdings of president Adolphe A. Juviler and executive v.p. Percy L. Schoenen have been acquired by Fox, Wells & Co., private investment firm, and that Dr. R. Bowling Barnes and Heywood Fox have been added to Olympic board, now 7 members. Sperry Corp. has arranged $53,000,000 credit agreement with Bankers Trust Co., Chase National Bank and Guaranty Trust to provide working capital to handle defense orders. Loans carry 3% interest, expire Dec. 31, 1954.