The talking machine world (Jan-June 1928)

so The Talking Machine World, New York, March, 1928 Radio Corp.'s Gross Income Was $65,082,074.48 in 1927 Annual Report of Corporation Shows Net Income for 1927 of $11,799,650.28. Gain in Current Assets of $6,595,185 — Assets Exceed Liabilities by $22,469,297 Gross income from operations of $65,082,074.48 and net income of $11,799,650.28 for the year 1927 were shown in the annual report of the Radio Corp. of America recently made public. Of the net income from operations, $2,371,330 lias been set aside as reserve for Federal income taxes and amortization of patents, and $950,000 as general reserve and as reserve against foreign investments and for the employes' pension fund, leaving a net sum of $8,478,320 to be transferred to surplus account. The report shows that current assets have increased $6,595,185 and exceed current liabilities by $22,469,297, the ratio of current assets to current liabilities being slightly more than 3 to 1. The corporation has no bonded debt or notes outstanding. Plant and equipment, less reserves amounting to $7,683,634, now stands at $6,541,612. This is after the provision of a special additional reserve of $4,500,000 for this year out of surplus account. The reserve for amortization of patents, after charging off patents expired and an additional reserve of $1,000,000 provided out of surplus account, amounts to $7,155,641, reducing the book value of the patents to $5,515,543. The policy of the partly owned subsidiaries of the corporation, the report declared, is to avoid either the accumulation of an excessive surplus or the payment of excessive dividends. The conspicuous radio development of the year has been directive, high-speed transmission by low-power, short-wave installations, according to the report, now in operation on several circuits. The granting of licenses under the tuned radio frequency patents of the Radio Corp. to twenty-five manufacturers of radio receiving sets has done much to stabilize the radio industry and to put it on a sound and permanent basis, the report points out. No licenses have been granted under the superheterodyne patents, the exclusive right to produce and sell this type of receiver having been retained by the RCA. The two outstanding achievements of the year in the merchandise sales field were the introduction of the new AC Radiotrons, the filaments of which operate from the alternating electric current, and the Radiola Model 17, operating directly from the electric light circuit without batteries. The report states that these products met with an active public demand. It is stated that the regulations of the Federal Radio Commission have materially improved the reception of broadcasting in all sections of the country, and this has a marked stimulating effect upon the radio industry. In the field of international communication the year 1927 witnessed a substantial enlargement of the world-wide facilities of the Radio Corp., according to the report. New direct radio services were inaugurated with a number of foreign countries and additional radio circuits, it is expected, will be established in 1928 In the marine field RCA extended its activities and completed its program of converting radio apparatus from ship-spark transmitters to vacuum tube continuous-wave apparatus, thereby reducing interference to radio broadcasting and greatly increasing the range of marine communication. A substantial stock interest was acquired in the FBO Pictures Corp. in connection with RCA'S development of a system for the recording and reproduction of sound in synchronization with motion pictures. The report mentions the death of two directors, Honorable John W. Griggs and General Guy E. Tripp in 1927, and states that Paul D. Cravath, Cornelius N. Bliss, David Sarnoff and James R. Sheffield were elected to the board. Gulbransen Co. Has Two New Directors John S. Gorman Elected to Vice-Presidency and Directorate — Walter Kiehn, Ad Manager, Is Also Made a Director At a special meeting of stockholders and directors of the Gulbransen Co., Chicago, held Tuesday, February 21, the number of directors was increased from seven to nine and one additional vice-president was elected. John S. Gorman, sales manager, was elected to the newly created office of vice-president and also as a director. Walter Kiehn, advertising manager, is the other new director. President A. G. Gulbransen, commenting on the moves, stated that they reflect the aggressive merchandising policy of the company, which will be along even more vigorous lines than in past years. "With the greater resistance that is being encountered by the selling end of business in every line," said Mr. Gulbransen, "it is increasingly important that the selling and advertising divisions have proper representation in the official family of the company." Mr. Gorman has been engaged in a very extensive survey of the retail piano situation, and under his direction the Gulbransen wholesale salesmen are carrying forward the policies of the company. Mr. Kiehn has been advertising manager of the company for the past eight years, and under his direction this department of the business has extended into the many different ramifications of a modern advertising department, and to-day covers the entire range of wholesale and retail advertising activity. Another matter of business concluded at the special meeting was the taking over 'of the Gulbransen Music Roll Corp., a New York company, by the Gulbransen Co. This legally carries out the action of the company, announced some time ago, in moving the music roll business to the Chicago factory. The manufacturing, purchasing, selling, advertising, credit and other departments of the roll business have been assumed by the various departments of the Gulbransen Co. Prominent Dealers Add Freshman Line Grinnell Bros., Detroit ; Jordan Piano Co. and Kitts Piano Co., Washington, and Burk Hume Co., Norfolk, Franchised A number of prominent music houses have been added to the imposing roster of Freshman authorized dealers, which is being organized by the Charles Freshman Co., Inc., New York, under direction of Harry A. Beach, sales manager. Grinnell Bros., Detroit, Mich., well-known Victor distributors and one of the largest retailers of radio and musical instruments in that section of the country, operating twenty-eight stores, have taken on the complete Freshman Electric line. Mr. Beach closed the details of this transaction personally on a recent trip to Detroit. Among other houses of prominence which have become Freshman dealers are the Arthur Jordan Piano Co., Washington, D. C; Homer Kitts Piano Co., Washington, D. C, and Burk Hume Co., Norfolk, Va. Columbia Phono. Co. Adds to Space The Columbia Phonograph Co., New York City, has, in the past year, added floor space equivalent to an entire floor to its executive offices at 1819 Broadway. Recent enlargements of the research, general sales, distribution, sales promotion, advertising and export departments have brought the space occupied to a total of five floors in the Manufacturers Trust Co. Building on Columbus Circle, overlooking Central Park. Harry Roehm has joined the sales staff of the Hollywood Phonograph Shop, which is located in Hollywood, Cal. 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