Broadcasting Telecasting (Jan-Mar 1952)

COMPONENTS seen Major Hurdle in '52 CHANNELING of the flow of component parts into electronics and other equipment for military and civilian uses emerges the basic problem as the United States prepares to hurdle the "hump" of mobilized production during 1952. Placement of components in the right place, at the right time, and in the proper quantities, has been a major source of concern among government, military and Congressional leaders in recent months. In a sense, the problem is more pressing than materials shortages. Prospect of continued cutbacks in radio-TV receivers and other consumer durable goods is held out for the second and third quarters of the new year, with little relief for the latter part of 1952. The same holds true for commercial broadcast equipment. Ominous reports circulating last week that a worsening condition might preclude the issuance by the FCC of construction permits, once the TV freeze is lifted, were discounted by authorities. Structural steel, it was pointed out, is the most critical item, but self -certification is permitted and manufacturers are Still producing towers. Moreover, it was pointed out that possibly 50 to 100 TV transmitters are in stock, which should be adequate to take care of construction permits authorized by the FCC, once the TV freeze is thawed, for most of 1952, in any event. As for the steel situation, it was stated that even if the capacity isn't expanded to permit installation of towers, wooden structures could be used temporarily, as was done during the last war. The electronics industry in America has expanded to meet increased demand for components in complex equipment, according to E. T. Morris Jr., chairman of the Electronics Production Board. He claims that the industry has the best record for delivery of military end-quipment among the most critical products. Review Is Needed Despite this record, a review of the electronics picture is needed to take stock of 1952. Looking toward a re-evaluation of the new year, Mr. Morris is expected to call a conference along lines similar to those conducted for machine tools, chemical and other fields. To that end, the Defense Production Administration is enlarging its Electronics Products Division to cope with shortages stemming from bottlenecks in the siphoning of parts to vital projects The "turning point" or "hump" in the American defense mobilization was cited by Manly Fleischmann. Defense Production Administrator, in a new year review of progress and future prospects. Predicting that military goods in 1952 will double the 1951 rate and approach $50 billion per year, Mr. Fleischmann said the manu facture of electronics equipment is due to rise about 268% because of progress in "tooling up" for production. Shortages of materials for civilian goods will be intensified, he added. "During 1951, civilian industry was able to produce at relatively high levels because there was still a supply of materials in inventories," he stated. This will mean a scarcity of metals for radio-TV sets, transmitters and related items, and station construction or alteration projects. "High production in 1951 and an unexpected low consumer demand . . . kept retailers' shelves combortably filled," he pointed out. "In 1952, with nationwide employment at record levels, a return to normal consumer demand is anticipated, and with it a slow but certain depletion of many civilian items." Copper Problem Mr. Fleischmann, in his statement released this past Friday, termed copper the most difficult problem, felt aluminum would remain status quo (supply below demand) and an increase in steel earmarked for military uses. But electronics will become "more abundant once the defense program is completed," he said, also citing other industries. Overall employment will continue at peak level. Aside from the industry conference to be called by Mr. Morris, components will command more scrutiny from government production officials. The Electronics Products Division of the National Production Authority, DPA's operating agency, has called a meeting of the loudspeaker industry advisory committee for tomorrow (Tuesday), with Lee Colder of NPA presiding. Loudspeaker producers have not yet begun to feel the "pinch" of shortages because of the defense program, Mr. Colder told Broadcasting • Telecasting. A 10member industry group will discuss the 1952 picture. Conservation techniques, size of alnico magnet speakers and paucity of cobalt and other metals will be weighed. Shortages remain acute, Mr. Colder said, explaining that cobalt will continue critical and that copper will be more scarce. Only solution, as Mr. Colder sees it, is for manufacturers to use less quantities of materials for speakers. As in the past year, manpower will pose a sei-ious dilemma. Most electronic firms are short on senior engineers, draftsmen and technicians, as well as wiremen and toolmakers. Bi-oadcasters got their first wind of increasing restrictions on construction last month, with the majority of them being rejected [B«T, Dec. 24, 1951]. But NPA did take action to help all industrial firms (including broadcasting) in the form of MRO (maintenance, repair and operation) relief. In the case of construction rejections, NPA authorities conceded that the governing reason was a delayed start on the part of some radio-TV broadcasters. The ratio of 15 denials to three grants — or five to one — points up the warning of government production authorities last month that only those projects "at least 20% completed" may receive favorable consideration. This situation applies, of course, to requests for materials in excess of the self-authorization ceiling [B«T, Nov. 26, 1951]. It means that broadcasters will have to forego expansive construction, remodeling or alteration plans during the foreseeable future — probably through July 1 anyway. Only small studio projects consuming small quantities of metals are assured of a go-ahead, though NPA authorities said that "type of facilities" will carry more weight than degree of completion after April 1. On the favorable side, it was pointed out that the new construction compilation did not take into account radio-TV broadcasting's reclassification as "industrial" building. The decisions were reached before the shift from the commercial category could be taken into consideration. Decisions on applications for building quotas for the second quarter may reflect a higher proportion of authorizations now that NPA has transferred this function from the Construction Controls to the Industrial Expansion units which has been more liberal with allotments. Project Requests Meanwhile, more light was shed on projects reported in the Dec. 24 issue of Broadcasting • Telecasting but not clarified at that time. The projects involved requests from RKO Keith Orpheum Theatres Inc., Anco Enterprises Inc. and Rockefeller Center Inc., all of New York. RKO was turned down on materials for its Colonial Theatre which, under present plans, would house new NBC-TV studios. Originally, it was surmised the bid involved theatre TV. NBC-TV also figured in a Radio City studio application, though the request was filed through Rockefeller Center Inc. Anco Enterprises had planned to lease certain television studios to NBC in a project costing $21,000. The request drew an exemption from NPA. NBC also hopes to break ground for a proposed $25 million radioTV center at Burbank, Calif., with an initial $2.7 million earmarked for the first unit. NPA explained that the request was for materials during the second quarter beginning April 1, on which it has not yet acted. The first unit comprises "TV studio facilities" with applicant listed as KNBH (TV) Los Angeles. No decision is expected for another month or six weeks. Broadcasters also may obtain priority materials for existing buildings or facilities where a component (copper wiring or other item) is needed for completion of installation or "minor capital addi(Continued on page 36) FM NETWORKS AT&T Tariff Revision Seen Aiding Relays THROUGH a revision of American Telephone & Telegraph Co. tariff schedules, th.e way has been opened for FM networks to use a combination of oflf-the-air pickups and AT&T lines in connecting their stations. This is the same provision which the AT&T permits to television. The revision in the tariffs came -*• after the FCC requested AT&T to change tariff schedules to allow interconnection of Bell program channels with FM broadcast facilities. The purpose is to encourage FM stations to further their network plans, FCC said. Previously, FM networks had to either depend entirely upon off-the-air pickups or else use AT&T facilities for the entire route of the network. The plight of FM stations, which wanted to employ interconnected facilities but were thwarted by the tariffs previously in effect, was brought to the Commission's attention originally by WFLN (FM) Philadelphia. That station wanted to rebroadcast programs originating at WQXR-AM-FM New York. It sought to have the programs from WQXR picked up, off-the-air, at Trenton, N. J., and have them relayed by AT&T lines from Trenton to Philadelphia. AT&T re fused to lease lines from Trenton, however, and insisted they either be leased from New York to Philadelphia or not at all. WFLN applied to FCC for authority to use certain frequencies for a private FM network on a common carries basis, but the Commission did not want to set aside frequencies for this purpose because of lack of spectrum space. Realizing WFLN had a problem, the Common Carrier Bureau of FCC persuaded AT&T to revise tariffs which would permit receiving FM programs off the air at an intermediate point and transmitting them over the shorter distance on telephone company facilities without obtaining such facilities for the entire distance. The cost of FM network programming should be reduced in many instances under the new tariff revision, FCC reported. Page 28 • January 7, 1952 BROADCASTING • Telecasting