Broadcasting Telecasting (Oct-Dec 1959)

Sales up; stock down Revlon sales figures entered in record of House Legislative Oversight Subcommittee tv quiz investigations last week showed a sharp rise in the firm's income after it began sponsoring $64,000 Question in June 1955. But, in the face of charges that Revlon was responsible for "controlling" that show and $64,000 Challenge, which it co-sponsored, Revlon stock dropped sharply on the New York Stock Exchange. Price of the stock dropped $5.25 at the close of business Wednesday (Nov. 4) from the high of the last market day, Monday. Trading of the shares skyrocketed, with 39,400 shares changing hands Wednesday, compared to 1,000 shares Monday. Revlon stock closed Wednesday at $54.25, down from the $59.50 closing price Monday. It opened Wednesday at $56 and sold as low as $54.12. In 1954, the year before Revlon began sponsorship of Question, its net sales were $33.7 million, 30.6% of the total sales of cosmetic companies listed in stock exchanges. For 1955, after the quiz show had been on the air six months, sales increased to 54% to $51.8 million and 38.7% of total market. With a full year's sponsorship of $64,000 Question and Challenge in 1956, sales skyrocketed to $85.7 million, a 66% increase, representing 48.8% of the total market. Figures for the final two years of sponsorship showed 1957 sales of $95.7 million (48% of market) and 1958 $111 million (48.6% of market). Charles Revson, Revlon president, said he was unable to estimate what percentage of the sales increase could be attributed to tv, but that "it helped." He said the firm spends approximately $8 million annually in tv, some 65% of its advertising budget. The $64,000 Question, he said, cost about $80,000 weekly, including $40-50,000 for time and $15,000 for prize money. in Allentown and Mr. Schwartz in New York in which an agreement was made to pay $10,000 in cash to get Mr. Hoffer on the show. On Aug. 9, the date that Mr. Hoffer appeared on Question, Mr. Gottleib paid Mr. Schwartz $5,000 in cash, in a New York restaurant, and paid another $5,000 a few days later on a street corner opposite Radio City. He did not get receipts on either occasion. Mr. Gottleib told the committee he understood the full $10,000 did not go to Mr. Schwartz, but was to be divided among other people involved in the program's production. 'Terrific Thing' • Final witness of the evening was Max Hess, owner of the Allentown department store. He told the committee his store grosses $30 million annually and spends about $600,000 on advertising and public relations. Other than that, Mr. Hess could say little more than "I can't remember," and "To the best of my knowledge I don't know." These answers were given repeatedly to questions about with whom Mr. Hess made an agreement to pay $10,000 for getting Mr. Hoffer on the Question. He said he didn't remember the name Schwartz, and didn't remember making any agreement with anyone except his public relations director, Mr. Levine. Mr. Hess said he thought it was "a terrific thing" to get plugs on national tv programs through the payment of a $10,000 fee, and "I'd do it again if I had the chance." He said as far as he knew, it was a common thing. In answer to questions from commit TOP TV AUTHORITY WANTS ACCT. SUPVSR. JOB 25 years experience in leading AAAA agencies on multi-milliondollar accounts: food, tobacco, drugs, beer. Call or write: Len Tarcher, 94 Schoolhouse Lane, Roslyn Heights, N. Y. MU-8-2343 54 (SPECIAL REPORT: QUIZ CASE) Just entertainment • Band leader Xavier Cugat appeared for publicity. It was just a show, he said, but now he wishes he hadn't. tee counsel Robert Lishman, Mr. Hess said his store had done this so often he didn't remember any names. Mr. Lishman refreshed Mr. Hess' memory whereupon Mr. Hess stated he himself had appeared on The Kate Smith Show and The Dunninger Show. He also said his firm had paid Jack O'Brian (New York Journal American tv-radio columnist) and Bob Considine (syndicated columnist of King Features) $1,000 each to visit the store and write articles about it. Messrs. O'Brian and Considine said they received money for personal appearances but not for plugs. Refresher Course • In an effort to make the reluctant witness a little more enlightening in his answers, Mr. Lishman asked Mr. Hess about the first visit of a committee investigator to his store. Mr. Hess admitted he had refused to cooperate with the investigator and had told him to "drop dead." When served with a subpoena, Mr. Hess told his lawyer, "tear it up and forget it." At a second meeting Mr. Hess told the investigator he had not paid money to get Mr. Hoffer on the Question. Mr. Lishman said it was only Friday, Oct. 30 that Mr. Hess agreed to tell the true story after he received information that Mr. Gottleib had agreed to testify. Mr. Hess said he also had paid $5,000 to one of his new New York pr counsellors (Gertrude Bayne) for her part in securing the $64,000 Question plugs. He said she "arranged" an interview for Messrs. Hoffer and Gottleib with people "connected" with the show. BROADCASTING, November 9, 1959