Television digest with electronic reports (Jan-Dec 1952)

4 GRAND JURY PROBE OF COLOR & PATENTS? Dept. of Justice attorneys, moving quietly and rather mysteriously, are understood to be preparing to lay evidence before a Federal grand jury purporting to show anti-trust activity in electronics field — prompted either by (1) charges of industry collusion in connection with virtually unanimous opposition to CBS system of color TV, FCC approved but "frozen" by NPA order, or by (2) allegations of patent monopoly, most likely involving mainly RCA, with eye on expiration of its licensing agreements in 1954. At least one subpoena is known to have been issued, presumably on RCA, asking for vast quantities of records, and several manufacturers have been questioned from time to time by Dept, of Justice agents. But nothing definite about nature and scope of inquiry is obtainable beyond these facts: (1) RTMA and its officers haven't been served with subpoenas. (2) No Dept, of Justice people were present at last week's NPA meeting on color (Vol. 8:6), where Paramount counsel Paul Porter evoked vehement denials when he remarked on an apparent "concert of action" against CBS color by manufacturers. (3) Oft-initiated inquiries into RCA anti-trust charges lay quiescent in Dept, of Justice as recently as 3 weeks ago. (4) FCC has officially designated its general counsel Benedict P. Cottone and chief engineer Edward W. Allen to "discuss" matter with Dept, of Justice, though it didn't assign attorney William Bauer despite fact he has for years been conducting a one-man inquiry into patent situation. Best guess is that it's sort of preliminary probe, sanctioned if not urged by FCC, looking into the possibility of action against RCA and other companies for allegedly thwarting the Commission's will in failing to manufacture CBS-type color receivers. Whether NPA ban and RCA-NTSC current tests of compatible color systems will have bearing on case, it's impossible to say yet. PENTAGON CONSULTED ON COLOR TV BAN: Prospects for production of color sets remain close to nil. Question is now largely matter of manpower — and military, through the Munitions Board, is almost certain to rule that engineers .lust can't be spared. But NPA's color TV Order M-90 will be amended, rewritten or supplanted by a new regulation to make its language more explicit and less restrictive. Best bet is that NPA will permit manufacture of color theatre-TV equipment, confine regulation to home receivers only. There's also slight possibility it will permit production of TV sets with built-in adapters to receive incompatible signals in black-&-white. New or revised order won't be issued for 10-30 days. NPA officials are not yet at writing stage — they're still investigating. Thus foregoing deductions are based on present stage of inquiry, represent best thinking as of today. Some tentative decisions may be made next week. And it's entirely possible that further investigation will convince NPA that its purpose can best be accomplished by sending each TV manufacturer a letter "requesting" him not to divert any skilled personnel from defense work to color — without any formal order. "We're going to take our time on this, and consider every possibility in a purely objective light," one NPA official said. "There'll be no hasty action." ^ T V T When smoke cleared after Feb. 8 industry-Govt . color conference (Vol. 8:6), NPA production controllers found they were faced with these facts: ( 1 ) Majority of manufacturers favored retention of M-90 . (2) Three of the 4 who asked abolition of the order (Paramount's Chromatic, CBS, RCA) made strong cases by arguing that M-90 went further than Oct. 25 agreement between set manufacturers and defense mobilizer Charles E. Wilson (Vol. 7:43). (3) No manufacturer spoke out explicitly against permitting production of color theatre-TV equipment. (4) M-90 is not saving any materials ; regardless of whether it stays on books, NPA won't allot extra materials for color set production. (5) Revocation of M-90 might cause heavy drain on technically skilled manpower needed for military production.