Television digest with electronic reports (Jan-Dec 1952)

10 Topics & Trends of TV Trade: rtma’s new Govt. Relations Section, which will handle problems arising from military procurement, was set up at midwinter conference in New York this week under Western Electric’s Ben Edelman as chairman and with 69 members from 43 companies attending. Five task committees were named with following chairmen and tasks: A. L. Richardson, Sylvania, pat ents & copyrights; Q. T. Scharffenberger, Federal, accounting & cost principles; Valentine Beale, RCA, termination & renegotiation; Ernest Leathern, Raytheon, facilities & govt, property; L. A. Connelly, RCA, general. Machlett Labs’ H. J. Hoffman, chairman of Transmitter Division, reported on change to Technical Products Div. (Vol. 8:2), while Western Electric’s Fred Lack, for Joint Electronics Industry Committee, and Indiana Steel Products’ A. D. Plamondon, for Air Force Small Business Survey Committee, reported on other mobilization activities. Mr. Hoffman was elected an RTMA v.p., succeeding Collins Radio’s W. J. Barkley, who resigned. * * * * Strong fight to repeal Regulation W consumer credit controls altogether is being planned by National Foundation for Consumer Credit at Senate Banking Committee hearings starting March 4 on Defense Production Act. Foundation is headed by Philco v.p. John M. Otter and will argue, among other things, that: (1) Consumer credit is one type that does not cause inflation. (2) Production of TV and other durables is high and there are no shortages. (3) Even with cutbacks, high inventories would prevent scarcities, so there’s no reason to restrict sales by making credit hard to get. (4) Consumer credit controls discriminate against low-income group. “Fair traded” merchandise is important to National Appliance & Radio Dealers’ Assn., despite fact that it comprised less than 5% of dealers’ dollar-volume at fair trade’s peak before Supreme Court took teeth out of states’ fair trade laws last May (Vol. 7:21-22). So testified NARDA’s legislative representative J. Henderson Stock at Feb. 7 hearings of House Interstate & Foreign Commerce subcommittee on McGuire Bill (H.R. 5767) which would restore binding effect of fair trade contracts on nonsigners. He argued that fair trade enables small, independent dealer to promote product on basis of quality and service without fear of losing sales to competitors promoting on price and credit alone. * * * * Merchandising Notes: Consumer buying of TVs and radios in New York dept, stores during January was up 4 & 86% from January 1951 for 2 stores, down 39, 40, 47, 50, 54, 56, 56, 62 & 64% for other 9 reporting in Herald Tribune's monthly survey of retail trade . . . December TV sales totaled 6175 in Washington area, reports local Electric Institute, surprisingly close to Dec. 1950’s 6528; for year 1951, sales were 56,090 vs. 82,039 in 1950. Year’s radio sales were 62,697 vs. 49,770 in 1950 . . . Philco distributors selling their TV servicemen complete work uniform, comprising jacket and pants, for $15.37 ; dark green jacket is patterned after famed Eisenhower wartime jacket . . . Motorola holds “national radio convention” in Chicago’s Palmer House Feb. 15, showing its distributors new lines of home, portable and auto radios only . . . Philadelphia Electric Assn, repozts total TV sales in area were 208,650 units in 1951 valued at $67,082,181 at retail (average $321 per set) vs. 364,233 valued at $104,942,761 (average $288) in 1950. Total TV sales of 17 top brands since V-J Day: 894,527. Andrea is planning to extend distribution to more cities, announces new line comprising 17-in. Gotham table model at $250, Brewster console at $300, and 20-in. Stratford full-door console at $489.50, all including FM. DuMont is keying sales pitch to market for second sets in home, in addition to urging larger picture sizes, in introducing new models now ready for delivery. In New York alone, it claims, more than 1,000,000 sets (of the 2,800,000 in use) have 14-in. or smaller screen sizes. DuMont’s new price list, including warranty but not tax, includes one 17-in. table model at $270 and four 17-in. consoles with FM ranging from $330 to $370; plus five 21-in. consoles ranging from $400 to $520; and one AM-FM-3 speed combination at top of line at $675.95 in mahogany, $695.95 in blonde. New approach to projection TV is envisioned in patents applied for by veteran inventor Lee De Forest and Phoenix inventor Dr. William Rhodes. As described in Feb. 11 Newsweek, their receiver would employ 3-in. projection tube, simple magnifying lens and “special lightsensitive screen.” Pictures thrown on big screen would be controlled by voltages on screen itself. RCA is closing down Pulaski, Va., cabinet plant April 1 due to curtailed TV-radio production, will rely mainly on Monticello, Ind., plant (nearer factory in Indianapolis now turning out its TVs); Pulaski property may be sold or leased, and RCA currently is seeking to relocate its 600 employes. Sonora may return to field as TV producer under own name again shortly, according to Chicago reports. Financial & Trade Notes: Telecasting became “a substantially profitable operation” in 1951 for Crosley Broadcasting Corp. (WLW-T, Cincinnati; WLW-D, Dayton; WLW-C, Columbus), says parent Avco Mfg. Corp. in annual report. Crosley’s radio stations (WLW, Cincinnati, & WINS, New York), however, “sustained a decline in revenue . . . due primarily to the conversion to TV of the advertising budgets of many large national sponsors.” Avco report gives no breakdown of earnings or sales among its divisions or subsidiaries, but corporation as a whole reported record sales of $286,589,113 for fiscal year ended Nov. 30, vs. $256,966,971 for fiscal 1950. Fiscal 1951’s profits, second largest in Avco’s history, totaled $10,089,214 ($1.10 a share on 8,819,385 common shares), declining from preceding year’s $12,635,633 ($1.65 on 8,231,236 shares). Emerson stockholders this week approved plan giving officers and 160 key employes options to purchase 100,000 unissued shares of $5 par capital stock at price equal to market price at time options were granted. President Benj. Abrams reported that quarter ended Jan. 31 will be under that of year ago, when sales and earnings were at record heights; second quarter ending in April also will be under last year’s, but prospects are encouraging, he stated. Currently, Emerson’s output is about 75% civilian, 25% defense. Dividends: Television-Electronics Fund Inc., 15# payable Feb. 27 to stockholders of record Feb. 15; Tung-Sol, 25c payable March 1 to holders Feb. 18; CBS, 40# payable March 7 to holders Feb. 21; Belden Mfg. Co., 40c payable March 3 to holders Feb. 18; SparksWithington, 10# payable Feb. 26 to holders Feb. 11; Aircraft Radio, 10# payable Feb. 15 to holders Feb. 5; Westinghouse, 50# payable March 4 to holders Feb. 11; General Tire & Rubber Co., $1 payable Feb. 29 to holders Feb. 19. Raytheon’s offering of 434,189 shares of its $5 common stock (Vol. 8:4) went out to stockholders Feb. 4, is at $8 per share on basis of one share for each 4 held, traded on New York Curb, Midwest Stock Exchange and over-thecounter. Rights expire Feb. 18. General Instrument Corp. reports net loss of $471,831 for 3 months ended Nov. 30, 1951. For same quarter last year, firm reported profit of $282,080 (58# a share).