Broadcasting (Oct - Dec 1950)

Defense Cutbacks (Continued from page 19) "their civilian production. The industry group included R. C. Sprague, Sprague Electric Co., president of Radio-Television Mfrs. Assn., and Fred R. Lack, Western Electric Co., who heads up the Joint Electronics Industry Advisory Committee to the Munitions Board, Manufacturers promised to set up a "task force" to study the problems and report back to NPA, which stressed initially that the proposed regulation was not really an "order" and hoped the industry would cooperate on a voluntary basis to meet defense needs. NPA oflRcials explained later that all NPA regulations are carefully evolved to avoid any implications that suggest possible violation of the anti-trust laws. Effect on Civilian Needs Spokesmen at RTMA, which officially declined comment, said, however, that the "limitations" proposed by the government would have the "effect" of curtailing civilian radio-TV production. It was believed that the full impact would be felt about the first of next year, though present inventories certainly wall be juggled. R. C. Sprague, RTMA president, said this past summer that the industry could expect anywhere from a 15% to 20% cutback in civilian radio-TV receiver output during the Korean crisis. The NPA regulation would lift the maximum ceiling by 10% at the base of materials. It was suggested that set-makers who, for example, turn out a variety of TV receiver models would be forced to standardize their line to accommodate fewer types. Television saturation of production capacities already has drawn heavily on components to such an extent that electronics parts in other fields are acutely scarce. Authorities pointed out, too, that the effect would be manifest chiefly in the consumption of metal units, rather than percentage of output, and that the diversion of civilian appliances would, in the long run, be greater than appears on the surface. Set-makers reportedly held a post-NPA meeting last Thursday though details generally were unavailable. Discussions were described as informal. Same Plan Outlined Following the radio-TV session, NPA authorities met with representatives of the Electric Consumer Goods Industry Advisory Committee, before whom they outlined substantially the same plan. Representing NPA at the radioTV conclave, in addition to Mr. Harrison, were H. B. McCoy, assistant administrator of industry operations; Donald S. Parris, Communications Dept.; Thomas Delahanty, General Products Division, and Rollen Kadesch, NPA information office. Other government officials present included Marvin Hobbs, Munitions Board Electron; 3S Dept., Page 20 • October 30, 1950 NETWORK TIME CBS Leads in Nine Months Gross Billings— PIB GROSS radio network time billings for the first nine months in 1950 totaled $135,722,285, some $3,390,613 less than the same period last year, according to statistics released by Publishers Information Bureau last week. September figures for the four networks were $13,931,561 as compared to 1949 September totals of $14,082,718. * Network leader in gross billings NBC was second with sales totalwas CBS which sold $5,849,786. ing $4,416,328. Sept. 50 ABC $ 2,418,984 CBS 5,849,786 MBS 1,246,463 NBC 4,416,328 Total $13,931,561 Sept. 49 $ 3,077,282 4,997,280 1,178,388 4,829,768 $14,082,718 9 months 50 $ 26,417,997 51,068,664 11,887,529 46,348,095 9 months 49 S 31,874,690 46,301,592 13,710,341 47,226,275 $135,722,285 $139,112,898 and Leighton Peebles, National Security Resources Board. Industry officials attending were: William Balderstone, Philco Corp.; F. H. Vogel, General Electric Co.; Fred R. Lack, Western Electric Co.; Ray C. Ellis, Raytheon Mfg. Co.; R. C. Sprague, Sprague Electric Co.; H. A. Ehle, International Resistance Co.; Franklin Lamb, Tele-King Corp.; R. A. Graver and John F. GUbarte, Admiral Corp.; E. L. Hall, Pilot Radio Corp.; David Wald and Mark Glaser, DeWald Radio Mfg. Corp.; Bernard Fein, Ansley Radio & Television Corp.; William E. Wilson and C. T. Little, Acme Electric Corp.; W. J. Moteland, Conrac Inc.; Leonard Cramer, Allen B. DuMont Labs.; David Higgins, Hallicrafters Co.; A. P. Hirsch, Macmold Radio Corp.; G. G. Felix, Crosley Div.-Avco Mfg. Corp.; Benjamin Abrams, Emerson Radio & Phonograph Corp.; Paul V. Galvin, Motorola Inc.; W. A. McDonald, Hazletine Electronics Corp.; John Kruesi, American Lava Corp.; A. D. Plamondon Jr., Indiana Steel Products Co.; W. W. Watts, RCA; Arie Liberman, Talk -A -Phone; G. E. Gustafson and Hugh Boyer, Zenith Radio Corp. The effect of NPA's proposed order on raw materials appeared certain to have ramifications all down the line, throug'h retailer and distributor, and eventually for the public. TV set retailers have complained bitterly since Regulation W was promulgated by the Federal Reserve Board that sales have dropped below normal. Consumers now are required to pay down from 15% to 25% more on radio, TV and other household appliances, with installment-paying periods reduced from 18 to 15 months. Earlier, last Wednesday aluminum representatives were told by government officials that NPA must reduce civilian consumption of that metal — either by cutting allocations to each manufacturer or eliminating use of the item for nonessential types of manufacture. Fabricators objected to both methods and proposed that any necessary curbs be applied voluntarily by industry. C. Donald Dalles, chairman of the board of Revere Copper & Brass Inc., huge supplier of materials for electronics use, questioned whether accelerated rate of copper stockpiling is justified and warned it may take one-third of the available U. S. supply. Copper is a key item in manufacture of TV antennae. Steel Order A similar order issued on steel also threatens to curtail supply of that product in the output of television and radio towers. Manufacturers of radio receiving tubes already have voiced their concern over shortages and scarcity of high-priority components commandeered for defense purposes [Broadcasting, Oct. 23]. Also a matter of concern is the possibility that manufacturers may find it more difficult than ever to comply with FCC's proposal that they build video receivers to accommodate CBS color TV. Adapters and converters also consume precious materials, it was pointed out. A wholesale 30% curtailment of civilian production, if it ever materialized, conceivably could send repercussions right down the line to advertisers and television broadcasters, in view of TV's accepted rate structure based on set circulation, some authorities pointed out. This dire prospect was not seen, however, in NPA's present proposal. With respect to top-priority orders, the Munitions Board has announced a system of ratings to guide contractors and sub-contractors. Electronic and communications equipment is rated seventh in defense priority. Requests from manufacturers who would expand their electronics and other plants for defense purposes will be channeled to NSRB Director W. Stuart Symington, mobilization coordinator, who will sei-ve as "certifying authority" for permission to take advantage of special tax benefits under the NPA Act. They could write off the costs for tax purposes within five years as was substantialy the case during World War -II, and thus remove themselves from higher tax brackets. Meanwhile, the Manufacture Committee of the U. S. Chamber of Commerce met Friday to review the nation's defense production program. They were joined by government officials. Committee is headed by Chairman Stanley C. Allyn and includes Frank Folsom, RCA president. Drawn for Broadcasting by Sid Hix "It just proves, Honey, radio is here to stay!" CAAB MEET Scheduled Noy. 9-70 THE CBS affiliates advisory board will hold its second 1950 meeting Nov. 9-10 in New York. Members of the board are: I. R. Lounsberry, WGR Buffalo, chairman; E. E. Hill, WTAG Worcester, Mass., secretary; C. T. Lucy, WRVA Richmond, Va. ; Glenn Marshall Jr., WMBR Jacksonville, Fla. ; Howard Summerville, WWL New Orleans; Richard Borel, WBNS Columbus, Ohio; William Quarton, WMT Cedar Rapids; Clyde Rembert, KRLD Dallas , and Clyde Coombs, KROY Sacramento, Calif. CBS executives who are to attend the CAAB meetings include: Frank Stanton, president; Joseph H. Ream, executive vice president; Adrian Murphy, vice president and general executive; Lawrence Lowman, vice president and general executive; William C. Gittinger, vice president and assistant to the president; Herbert V. Akerberg, vice president in charge of station relations; Dr. Peter C. Goldmark, vice president in charge of engineering research and development; Earl Gammons, vice president in charge of Washington office; Louis Hausman, vice president in charge of advertising and sales promotion; Hubbell Robinson Jr., vice president in charge of network programs; J. L. Van Volkenburg, vice president in charge of network sales; William A. Ij Schudt Jr., director of stations rela '* tions, and E. E. Hall, eastern division manager, station relations. BROADCASTING • Telecasting