Broadcasting Telecasting (Jan-Mar 1957)

at deadline CBS HAS GOOD '56: REVENUE UP 12.1% • BUSINESS BRIEFLY REACHING new highs in volume and profitability, CBS Inc. in 1956 racked up net revenues and sales totaling $354.8 million, up 12.1% from 1955, while consolidated net income gained 21.5% to reach $16.3 million, according to annual report to stockholders which is being released today (Mon.). Based on shares outstanding, earnings were $2.17 per share as against $1.83 in 1955. In addition, cash dividends of 90 cents per share and stock dividend of 2% were paid. Gains were recorded despite losses in one division (CBS-Hytron, maker of tubes and semiconductors) and liquidation of another (CBSColumbia, set manufacturing division). Board Chairman William S. Paley and President Frank Stanton reported CBS Radio "continued to be profitable and to lead all competitors in volume of sales"; CBS-TV boosted advertising revenues 18.3% and continued as "the largest advertising medium in the world"; Columbia Records' sales gained 50%, reaching new peak; CBS Labs "directed an increasing amount of its work toward military and industrial projects," and CBS International "had a gratifying second full year of operations, increasing its sales volume by 80%." Losing division, CBS-Hytron, tripled its dollar volume in semiconductors and expanded in tube replacements, but original tube sales were "severely hampered" by reduced number of tv and radio set manufacturers, 22 of which ceased operations or merged, Messrs. Paley and Stanton ' noted. Outlook, however, is for substantial in AND CBS EXECUTIVES BOARD CHAIRMAN William S. Paley and President Frank Stanton, with aggregate remuneration of $300,000.16 apiece, were highest paid officers or directors of CBS Inc., in 1956, according to proxy statement now being circulated to stockholders in preparation for annual meeting April 17. Newsman Edward R. Murrow was next with $177,233.24. This represented change from 1955 when Mr. Murrow led with $316,076, followed by Mr. Stanton with $281,522 and Mr. Paley with $225,000 [B*T, April 9, 1955]. Mr. Murrow's $177,233 in 1956, "primarily for his services on CBS Radio and CBS-TV network programs," did not include his share of royalties paid to Persons to Persons Inc., which totaled $151,800 up to Oct. 10 when he resigned from board (proxy statement covers only period of board service). Mr. Murrow, his son, Casey, and his mother, Mrs. R. C. Murrow, owned 32Vi% of Persons to Persons Inc., until June 1, 1956, when their holdings increased to 54%. Royalties paid to Persons to Persons in 1955 totaled $105,600. J. L. Van Volkenburg, who retired as CBSTV president at end of 1956 (but continues as CBS Inc. board member and consultant), received $134,961 aggregate remuneration in 1956; Arthur Hull Hayes, CBS Radio president, $65,000; Charles F. Stromeyer, president of CBS-Hytron during 1956, $60,000; Henry C. Bonfig, president of CBS-Columbia until that division was liquidated last year, and now CBS Inc. vice president, $56,346, and Goddard Lieberson, president of Columbia Records, crease of CBS-Hytron's share of market, report said. On color tv, report said public "continued slow to accept" it, and "development of a mass market here continues to lie in the future." But CBS-TV and CBS-Hytron "continued to contribute to the eventual maturity" of color, report continued. CBS-TV averaged one color broadcast per day in 1956; CBS-Hytron "refrained from mass production of color tubes in 1956" but through research and cooperation with set manufacturers will be in position to start "as. market conditions indicate" and, moreover, is "developing a patent position" in curved screen-mash color tube field. Messrs. Paley and Stanton said they "look to the future with confidence. Assuming that neither formal legislation nor administrative rules might be enacted or created in Washington which would hamper the broadcasting industry, we believe that 1957 will be a year in which CBS can realize expectations comparable with the growth, strength and stability of the recent past." Other 1956 highlights: "Central fact" about CBS Radio business was "upsurge of advertising activity" which "together with the audience response to new and established programs offered solid ground on which to build further." Except for uhf ch. 18 WHCT (TV) Hartford, acquired in September, CBS-TV's o&o's gained 24% in gross billing; CBS Television Film Sales' gross billings were up 18%; Columbia Records' phonograph sales volume was up 34%. FARED WELL, TOO $48,000. Law firm of Rosenman Goldmark Colin & Kaye was paid $204,400 for legal services. Amounts paid, or set aside, under pension plan during 1956 included $16,526 for Mr. Paley; $16,500 for Mr. Van Volkenburg; $12,335 for Mr. Stanton; $9,653 for Mr. Hayes; $7,286 for Mr. Lieberson; $3,553 for Mr. Stromeyer. At annual meeting stockholders will vote on 14 directors (seven to be named by owners of Class A stock, seven by Class B). Management nominees, all for re-election: Class A, Messrs. Bonfig, Hayes and Van Volkenburg and J. A. W. Iglehart, Robert A. Lovett, Millicent C. Mcintosh, and Samuel Paley; Class B, Messrs. William Paley, Stanton and Lieberson and Arthur L. Chapman, Ralph F. Colin, Merle S. Jones, and Leon Levy. Report also shows that Board Chairman Paley and "associates" own 164,626 shares of Class A and 798,768 of Class B. BMI-ASCAP Hassle Checked Out SENATE Commerce Committee special radio-tv counsel Kenneth Cox and communications counsel Nicholas Zapple spent two days in New York "checking out facts" alleged against BMI-broadcasters by ASCAP-backed Songwriters Protective Assn. — despite skepticism expressed by staff [B«T, March 11] about approach of SPA in latter's demands for hearing, both in writing and in earlier meeting with Sen. John O. Pastore (D-R. I.), head of Communications Subcommittee. Late-breaking items about broadcast business; for earlier news, see Advertisers & Agencies, page 32. UPS THE ANTE • Polaroid Corp. (Polaroid Land cameras) Cambridge, Mass., has supplemented its "shared sponsorships" in NBCTV's Steve Allen Show (Sun., 8-9 p.m. EST) with participations in April 21, May 5, 12, 26, June 9 and 23 telecasts. Doyle Dane Bernbach, N. Y., is agency. IN THE MARKET • E. J. Gallo Winery, Modesto, Calif., through Doyle Dane Bernbach, N. Y., scouting availabilities in at least 40 east and west coast markets for tv spot campaign starting in May for indefinite run. LUCKY IN RADIO • American Tobacco Co. (Lucky Strike cigarettes), N. Y., planning additional radio spot campaign to start April 15 for eight weeks in nearly 90 markets. BBDO, N. Y., is agency. BIG BUY • Greyhound Corp., Chicago, buying radio and television spot campaign in 150 markets, starting early in April for 13 weeks. Agency: Grey Adv., N. Y. ON THE ROAD • Oldsmobile Div. of General Motors Corp., Lansing, Mich., buying two-week tv spot campaign to run April 13-26 in limited number of markets. D. P. Brother Co., Detroit, is agency. BACK FOR MORE • General Foods (CertaSur-Jel), N. Y., whose present radio spot campaign closes at end of March, will probably return to air two weeks later with additional markets. Decision on extension and additions is expected shortly. Young & Rubicam, N. Y., is agency. GOODYEAR ON MONDAY • Goodyear Tire & Rubber Co., through Young & Rubicam, N. Y., has placed order with NBC-TV for alternate Mondays, 9:30-10 p.m., joining Aluminum Co. of America, through Fuller & Smith & Ross, N. Y., as alternate sponsors. Both agencies and clients are expected to go for dramatic film show featuring multiple stars. Jansky to Receive Hoover's Keynote Award From NARTB NARTB's annual keynote award, which this year honors ex-President Herbert Hoover, will be received on behalf of Mr. Hoover during the NARTB convention in Chicago by C. M. Jansky Jr., board chairman of Jansky & Bailey, consulting engineers. Presentation will be made at formal opening of management session, Tuesday morning, April 9 (see early convention story page 92). Mr. Jansky is one of small group of radio pioneers who took part in all four Hoover conferences on radio regulation prior to enactment of original Radio Act of 1927. Broadcasting • Telecasting March 25, 1957 • Page 7