Sponsor (July-Dec 1949)

Commerce Department finds down trend leveling off Department of Commerce reports the value of the gross national product in the second quarter of 1949 was down 2% from the first quarter. The decline came largely in inventories, it was said, as fixed investment was stable, consumers' expenditures were steady, and government purchases increased. FTC orders Toni to alter advertising Toni Company (See Mr. Sponsor, page 14) has agreed to an FTC stipulation to modify "Toni twin" advertising, cutting out representation that the "coiffure of the twin with the Toni wave was done by herself or by an amateur when it actually was effected by a professional hair stylist." National Hairdressers and Cosmetologists Assn. protested against Toni advertising, but has done little on its own to promote beauty-shop business from the invasion of home hairdos. New minimum wage level would lift buying power Legislation passed by the Senate boosting the nation's minimum wage from 40 to 75 cents an hour would help to boost buying power. The joker, however, is that employees of some major businesses, such as retailing, would not be affected. National Retail Dry Goods Assn. says that under an amendment to this bill retailers are exempted, "so long as 50 per cent of their business is done in their own state and 75 per cent of their sales are made at retail." Nation's doctors raise $2,000,000 war chest Assessments on members of American Medical Assn. thus far have raised more than $2,000,000 to help AM A fight the Truman health insurance program. Dr. Ernest E. Irons, president, and Dr. E. L. Henderson, presidentelect of AMA are presenting its viewpoint at meetings in Washington, New York, Chicago, and other cities. The AMA has yet to include paid advertising in its promotion plans. Sharp decline noted in job lay-offs Steady slackening in the rate of new industrial lay-offs has been reported recently by the Bureau of Employment Security. In the week ended 20 August, first claims, indicating new unemployment, totaled 259.207. This was 31,893 less than in the previous week. Truman hears business is more cheerful Several cabinet members told President Truman recently that the nation's economic morale is improving. Labor Secretary Tobin said that the cost-of-living index had declined a bit from the month before, and Commerce Secretary Sawyer, reporting on findings in an extensive tour, found that business men were optimistic and conditions promised to remain steady. Steel rate rises to 85% of capacity Washington was cheered by reports from Pittsburgh that national steel production had turned upward to 85 per cent of theoretical capacity. Steel men are divided as to whether the present level will last through the fall. But the automobile industry, a major steel consumer, continues to produce at high levels. General Motors turned out 291,383 cars and trucks in August, as compared with 254.662 in July. Chevrolet, Buick. and Packard were among producers turning in new records. Movie engineers ask theater TV network Society of Motion Picture Engineers has requested FCC to authorize frequency allocations for theater television. A TV theater network, they said, would provide instantaneous service to a large part of the American people, and would be important in a time of emergency. RCA will demonstrate theater-TV and drive-in equipment at the theater-eouipment convention and trade show in Chicago 26 September. Sales of manufacturers decline slightly July sales of all manufacturing companies declined 6' { to $15,000,000,000, as compared with $16,500,000,000 in June, the Commerce Department reported. Sales of durable goods companies dropped from $7,100,000,000 to $6,300,000,000, while sales of non-durable goods were off from $9,400,000,000 to $8,700,000,000. Largest decreases were in food, beverages, and textiles. British publication to aid sales in U.S. To promote British products in the United States and Canada, the British Board of Trade has endorsed publication of British News, described as "a show window for world shoppers," which will be sent free each month to some 20.000 buyers. Publisher is British News, Inc., 1631 K St., N.W., Washington. Warren S. Lockwood is president and Frederick B. Osier vice-president and general manager of the firm. NAB acts to add TV directors With 32 TV stations now members, NAB has taken steps to add TV members to its board of directors. According to the by-laws, TV stations may be represented on the board when NAB has at least 25 of such members. 10 SPONSOR