Weekly television digest (Jan-Dec 1960)

24 DECEMBER 5, 1960 Walt Disney Productions expects to report a net loss of about $1.4 million for its 1960 fiscal year ended Oct. 1, compared with the profit of $3.4 million ($2.15 a share) earned on a gross income of $58.4 million in the preceding fiscal. Pres. Roy 0. Disney attributed the loss to a $5million writing-down of the value of the company’s film library, but foresaw, as a result, a “good, profitable year” in fiscal 1961. Without the write-down, Disney said, the company would show a $l.l-million profit. The item covers all films in process or release, he explained and reflects, in part, a “general softening in the theatrical motion picture market in most countries [and a] considerable leaning on the part of the public toward pictures involving violence, sex and other such subjects.” The latter trend has adversely affected Disney pictures, he noted. Extra dividends were declared last week by Zenith, Corning Glass and International Resistance. In addition to its regular quarterly declaration of 40^, Zenith authorized an extra 50^ dividend, both payable Dec. 20 to holders of record of Dec. 9, and a special 50 dividend, payable Jan. 27 to holders of record Jan. 6. Coming declared a 50^ extra in addition to its regular quarterly 37%^ dividend, both payable Dec. 27 to holders of record Dec. 12. IRC’s additional dividend is for 12% payable Dec. 29 to holders of record Dec. 15. The company’s regular quarterly dividend of 7%(f was payable Dec. 1. Davega Stores is offering its stockholders rights to subscribe for $1.5 million of 6%% convertible subordinated debentures due 1975. The offering is on the basis of $100 of debentures for each 25 shares of common held of record Nov. 23. The subscription price is par. Rights to subscribe will expire Dec. 14. The proceeds will be used in part to furnish 2 new retail discount centers — in Brooklyn & in New Brunswick, N.J. Reeves Soundcraft Corp. has filed an SEC registration statement (File 2-17327) for a secondary stock offering of 150,000 common shares, price unreported. The shares will be bought by underwriters Emanuel, Deetjen & Co. from Prudential Insurance Co. of America, which holds warrants for them at $3 per share. The SEC statement said Reeves will receive none of the proceeds from the public sale. Electronic Tube Corp., Philadelphia maker of electronic testing devices in the aircraft, missile and medical fields, plans public sale of 100,000 common stock shares through underwriters headed by Harrison & Co. Vactron Corp., Mansfield, Tex. TV-tube rebuilder, is undergoing reorganization under Chapter X of the Bankruptcy Act with Ben M. Gilbert of Fort Worth as courtappointed trustee. SEC will participate in the proceedings in which the company lists 3,300 holders of 791,431 common stock shares ($2 par value) and assets of $1.6 million, liabilities of $360,598. Diversification Institute Inc., 80 Pine St., N.Y., organized by the N.Y.-Washington management consultant firm of Boni, Watkins, Jason & Co. Inc., offers a brochure outlining services it offers to companies contemplating diversification moves. The services range from “a single consultation to a full implementation of a diversified program.” Electronic Research Associates, Cedar Grove, N.J. maker of electronic equipment, reports a profit of $43,600 on $568,023 sales in fiscal-1961’s first quarter ended Aug. 31. In the year-ago quarter, the company earned $19,800 on $424,839 sales. International Rectifier will be listed for trading on the New York Stock Exchange Dec. 12. Symbol: IRF, Educational Television How to Begin State ETV: The profile of a statewide ETV system in the making is sharply drawn in a survey & report on the feasibility of such a network for the state of Kansas. The report is slated for presentation before the Kansas Legislature at its next general session, beginning Jan. 10. It was drawn by a committee of ETV consultants & specialists headed by John C. Schwarzwalder (educational KTCA-TV St. Paul-Minneapolis gen. mgr.) as survey dir. Concluding that “a statewide system for ETV for Kansas is entirely feasible [and] could solve many of the state’s most pressing & immediate educational problems,” the consultants recommend “a system of 6 transmitters (5 vhf, 1 uhf ) covering the state, interconnected to each other and connected, in turn, to 7 production centers where programs can be produced.” The total capital cost for such a system is estimated at $6,752,877, after the 10% discount normally given to ETVequipment buyers. This includes the gross charges of $2.6 million for transmitting equipment, $1.3 million for studio gear, $1.1 million for a microwave relay system, $2.3 million for housing. The annual operating cost of the proposed statewide system, based on operation 40 hours a week or 2,000 hours a year, is listed at $659,322. The major costs: Salaries for 67 employes including 22 part-timers, $373,960; technical operating costs, $183,593; film expense, $22,000; personnel expense, $11,218. Included under the recommended salary schedule: Executive director, $15,400; assistant executive director, $12,480; chief engineer, $12,000; program manager, $12,000; assistant chief engineer, $9,600. The report concludes that “the statewide system can be on the air within 18 months of the appropriation of funds — the capital costs of $6,752,877 & of an additional $710,000 for operating costs during the first 2 years. Operating funds for the first 6 months would approximate $65,000, for the 2nd 6 months $115,000, for the 3rd 6 months $200,000 and for the first 6 months of operations on the air $330,000.” Auxiliary Services TelePrompTer-Kaiser Hawaiian Deal: Plans for a jointly owned corporation to provide a CATV system in a Kaiserdeveloped resort town, Hawaii-Kai, have been announced by TelePrompTer Corp. Pres. Irving Kahn and Kaiser industries Chmn. Henry J. Kaiser. The system will distribute signals by underground cable. “An important aspect of the plan,” stated Kaiser, “is that in addition to providing uniformly clear reception of TV signals from 3 Honolulu stations, it will make possible an ETV channel.” Negotiations for such a 4th station are now under way. TPT would provide facilities for the ETV outlet, as well as handle the distribution via cable. The future of TPT-Kaiser CATV will depend on the success of the test experiment, said TPT. “Ultimately it is our hope to expand CATV to all Hawaiian areas which suffer from inadequate TV reception,” Kahn reported. X Kaiser-Burns Development Corp. (Hawaiian Village Hotel) owns KHVH-TV & KHVH Honolulu, satellite KHJK Hilo & 2 uhf translators in Hawaii. * Tenth anniversary for TelePrompTer occurred Dec. 4, which day marked a decade of network-level use of the firm’s actor-prompting equipment.