Radio today (Jan-Mar 1939)

JAN 21 1939 ©C1B 403197 Vinton K. Ulrich Managing Editor Darrell Bartee George R. Brown G. H. Mayorga N. McAllister M. H. Newton R. Neubauer B. V. Spinetta M. E. Herring Sales Manager R. Y. FlTZPATRICK 201 N. Wells, Chicago, 111. Orestes H. Caldwell Editor M. Clements Publisher Vol. V, No. 1 Copyright 1939 Caldwell-Clements, Inc. Tel. PLaza 3-1340 480 Lexington Ave. New York, N. Y. Member Audit Bureau of Circulations 1939 SIGNS POINT TO NO WHISTLING IN THE DARK Optimism is rife and radio dealers need not fear the road ahead. Yearend business was good; new-year sales are better. Even our bankers throughout the country report an upsurge, and business indices climb steadily. If Europe doesn't toss a monkey wrench into things with another war scare, the U. S. should have its best year since '36, say the experts. Radio men generally report a good closing for 1938 and are hopeful that the next twelve-month will see a rise in dollar volume as well as unit sales. Most of them are adding electrical appliances and/or record departments to hold up sagging sales. Later in the year there should be some sales in television and facsimile receivers. Around New York and San Francisco, the two fairs undoubtedly will pep up business. Portable, self-contained sets, auto radios, radio-combinations and home recorders will be good sellers. Statistics compiled by Eadio Today, given completely on pages 12 and 13, tell graphically radio's rise, indicate future growth. SALES WENT DOWN IN '38 BUT NOT PAYROLLS Checking 243 typical IT. S. radio shops, the Bureau of Census reports they lost 22.4 per cent business in the first half of 1938. In 1937 they did $3,897,000 from January to July, and last year, sales totaled $3,024,000 for the same period. For all of 1937 they did $8,080,000. These same stores in 1935 sold $5,602,000 worth of radio goods, and by 1937 their sales had jumped 44.2 per cent. So even with the i938 slump, they probably did more business over other years. At the same time, 209 of them reported a payroll of $1,035,000 for 1937, a jump of 34.6 per cent for this service over 1935. But in the first half of 1938, payrolls slumped 6.1 per cent over 1937. In the sales cut for 1938, the East North Central Division was off 36.7 per cent, West North Central, 12.4, while the West South Central Division reported a gain of 5.9 per cent, and the West and East South Central Divisions as well as the Mountain Divisions combined to show an increase of 10.8 per cent. HAPPY OLD YEAR— BC BIZ UP! Business slump of 1938 to the contrary, two of the country's major broadcast networks report spectacular revenues for the past 12 months. National Broadcasting Co.'s gross income topped 40 million ; for the first time in history, recording a rise of 7.3 per cent over the prior year. The exact total was $41,462,679 compared to $38,651,286 for 1937. Mutual Broadcasting System reports billings of $2,920,323 for 1938, largest since the network started, and 30.4 per cent more than the 1937 total of $2,239,077. RMA RENEWS DEMAND TO SCRAP 5 PER CENT 'NUISANCE' TAX After a conference with Treasury' Dept. bigwigs, directors of, RMA have hopes for the repeal of the 5 per cent "nuisance" tax on radio receivers when the law runs out on June 30. Headed by President A. S. Wells, the directors put forth a six-point blast to prove why the excise tax should be scrapped. Radio is a service like newspapers and magazines, which are tax free and enjoy a mail subsidy. It is a universal necessity and not a luxury. The tax is giving less each year to the U. S. because of the trend toward smaller sets. Repeal of the tax would sell more radios. Present tax is hard to collect and has caused plenty of headaches. These are some of the points presented to Undersecretary Hanes, who said they would be given "careful and sympathetic consideration." Treasury Dept. reports on tax collections reflect the industry for 1938. This November $567,687 was paid in, 20 per cent below the 1937 figure of $711,146. On this basis, RMA pre Complete statistics on radio production and use, appear on following pages. Six million receivers were sold in 1938. January, 1939