Broadcasting Telecasting (Apr-Jun 1957)

MANUFACTURING repertory, on grounds that this is a useless expense, and (3) that the firm of Rosenman Goldmark Colin & Kaye be discharged as CBS counsel, on grounds that there is a "conflict of interest" since members of the law firm also serve BMI. On this third resolution, Chairman Paley doubted that any conflict of interest exists, but pointed out that in any case the Rosenman firm does not now represent CBS on BMI matters. On these and in matters involving antitrust questions, CBS is represented by Cravath, Swaine & Moore. The stockholders also voted down — by 5,551,782 shares to 307,000 — a proposal that CBS board members be required to own stock in the company. '57 Electronics Outlook Good Except for Tv Sets, Report Says EVALUATION of the electronics industry by Boni, Watkins, Jason & Co., New York, management and economic consultant, indicates the industry as a whole will have "a good year" in 1957 although the outlook for television set production is "not too promising." The report advises investors to "look beyond tv to a firm's know-how, research and commercial and military electronics business" when considering stock purchases. Earnings on commercial electronic products, the report said, "should at least hold their own in 1957 and perhaps advance sharply again by 1958, and earnings on defense business also should continue upward although unit margins may be small because government buyers are driving hard bargains." Despite the increase of portable television sets the outlook for tv set manufacturing is not bright, the report continued. It regards the portable set as both "a boon and a bane" to the industry, because it has not activated the replacement market although it has activated the two-set market. The lower price of the portable and the "continuing intense competition resulting from excess capacity has accordingly yielded altogether unsatisfactory profit margins for the majority of tv set producers," the report said. RCA Announces Debenture Trade; Gives Permanent for Temporary RCA has announced that definitive 3Vi % convertible subordinated debentures of the corporation amounting to $100 million are available in exchange for temporary debentures issued originally in December 1955. In 1955 the Securities and Exchange Commission authorized RCA to offer $100 million worth of debentures to the public and the entire amount was subscribed. The temporary debentures, which had coupons for the first two interest payments — June 1, 1956, and Dec. 1, 1956— are being exchanged at the office of the Irving Trust Co. in New York. The definitive, or permanent debentures, have coupons representing payments from June 1, 1957, to Dec. 1, 1980, the due date of the debentures. Page 102 • April 22, 1957 Milwaukee Is Pilot Market For RCA 40-Day Color Drive RCA moves into Milwaukee today (Monday) for a 40-day merchandising campaign on behalf of color television. The drive will run through May, embrace various advertising and promotion techniques and make use of local media including radio, television and newspapers. Titled "Milwaukee's Carnival of Color," the campaign will be conducted in cooperation with the Taylor Electric Co., Milwaukee area distributor of RCA and RCA Victor products. Milwaukee is the pilot market for the push on color and RCA plans to extend the merchandising campaign to other sections of the U. S. during the late summer and fall. Milwaukee was picked for the color drive — according to Martin F. Bennett, RCA vice president-merchandising — because of its middle west location, rank of 15th in population among the nation's counties, annual effective buying of nearly $2 billion and the network and local colorcasting facilities available there. Stations equipped for color programming include WTMJ-TV, NBC affiliate, uhf WXIX-TV and WISNTV. The latter plans to originate local color when studios are completed this summer. As part of the campaign, NBC-TV's Today program will originate six feature presentations from Milwaukee in color this Thursday. The features will cover Wisconsin's mutation mink industry, the St. Lawrence Seaway and the Milwaukee Braves baseball team, among other subjects. The Taylor Electric Co. has formulated plans for dealer participation in the campaign by more than 50 retailers in the Milwaukee area. Taylor and dealers have arranged for paid newspaper advertisements, spot radio and tv announcements, a direct mail campaign, and telephone and door-todoor solicitations. Radio Set Production Rises, Tv Down in January-February RADIO set production for the first two months of 1957 is running ahead of last year, according to Radio-Electronics-Tv Mfrs. Assn. Tv output is down for the period. Production of radio sets totaled 1,085,529 in January and 1,264,765 in February, a total of 2,350,294. This represents a substantial gain over the same 1956 period. Auto sets totaled 521,624 in January and 522,859 in February. Cumulative radio set sales at retail totaled 1,088,392 for the first two months of 1957, compared to 986,073 in the same 1956 period. Auto radios are not included in retail data. Output of tv sets totaled 450,180 units in January and 464,697 in February, a twomonth total of 914,887 compared to 1,164,629 in the same 1956 period. Retail sales of tv sets totaled 623,359 units in January and 525,437 in February, a total of 1,148,796 compared to 1,144,767 in the same two months of 1956. Of tv sets manufactured this year, 67,079 of the January output and 68,219 of the February models contained uhf tuning facilities. Of the total produced 1020 of the February tv sets contained tuning facilities for the fm audio band and 879 of the January production contained fm tuners. Sales of tv picture tubes totaled 760,855 in January and 728,363 in February, a total of 1,489,218 compared to 1,790,448 in the same 1956 period. RETMA announced 922,326 tv sets had been shipped to dealers in the first two months of 1957, compared to 1,153,016 in the same 1956 period. Radio shipments totaled 852,616 sets in the two 1957 months compared to 940,524 a year ago. Webcor '56 Sales Set Record, But Net Income Loss $995,000 RECORD sales high of $34,305,837 and loss of $995,000 in net income were reported by Webcor Inc. in its 1956 financial statement. The company, which manufactures phonographs and wire and tape recorders, said sales rose 7% from $31,984,539 in 1955. Net loss came after a $900,000 deduction for federal income tax carryback loss refund and high initial costs from entry in the military products field. Webcor enjoyed a net income of $589,574 the previous year. A profitable year in 1957 was predicted by Titus Haffa, Webcor president and board chairman, in his letter to stockholders. Webcor was renamed from the old Webster-Chicago Corp. 110° Deflection Picture Tube In Entire Sylvania 1958 Line SYLVANIA Electric Products Inc. has announced that its entire 1958 television line will be built around the 1 1 0-degree magnetic deflection picture tube which was introduced in the company's 17-in. portable models last December. W. Herbert Lamb, general manager of Sylvania's television picture tube division, stated that the 110-degree line, which will be introduced to the public early this summer, will include 14, 17 and 21 -in. tubes. The latter, in production this month, is designed for table and console model sets. The new 21 -in. tubes, nearly six inches shorter than the commonly used 90-degree picture tubes, are 20% lighter and should enable the company to reduce over-all dimensions of the 21 -in. table and console models by 50%, Mr. Lamb said. The 110degree portables now on the market may account for 50% of sales in 1957, according to R. L. Shaw, general sales manager of the radio-television division. Fm 'Radio Pill7 Demonstrated DEMONSTRATION was held in New York last fortnight of a "radio pill" that emits fm signals to medical researchers as it passes through the human body. Developed by RCA, the Rockefeller Institute and the New York Veterans Administration Hospital, the new "pill" is designed to provide information on the functioning of the human intestinal tract. Broadcasting Telecasting