Television digest with electronic reports (Jan-Dec 1954)

11 Topics & Trends of TV Trade: Wells Gardner pres. Robert S. Alexander, speaking from experience, tells us the private-label set maker who specializes in higherpriced TVs is taking a beating in today’s cut-price market. Wells-Gardner, he declared, is now getting ready to offer its chain store customers a cheaper 21-in. console as perhaps the first wedge to reduce prices generally and capture a share of the under-$200 market. “We operate in a different league,” Alexander told us. “We don’t set prices the way other manufacturers can and do. We must adapt to orders from the chains, who tell us they want a table model or console at such-andsuch a price. So now all we can do is offer them a set at a lower price, which we think today’s market demands, but it’s up to them to accept or reject it.” Using RCA components, Wells-Gardner has produced an experimental color set but is making no effort to market it. “The chain stores are not interested in color in its present form,” he said. “The color set which will be sold to the consumers is not yet available.” Wells-Gardner also is losing gTound on another highpriced item — the radio-phonograph console, once a mainstay of its output. Today it’s one of the slowest-moving items in the TV-radio market, its customers are overstocked and as a result Wells-Gardner is almost out of radio production. Despite its problems, Wells-Gardner has no intention of producing own TV line, Alexander says. He wants no part of setting up a jobber structure, thinks the TV market will eventually stabilize itself and the whole industry, including the private label manufacturer, will enjoy a new prosperity. * tif * * Picture tube sales in first 2 months totaled 1,203,396 valued at $26,090,401, down from 1,824,767 at $43,923,663 in first 2 months of 1953, reports RETMA. Some 76% were 19-in. and larger. For Feb. alone, 645,715 picture tubes worth $13,916,478 were sold, compared to 557,681 at $12,173,923 in Jan. and 836,451 at $20,030,681 in Feb. 1953. Receiving tube sales in first 2 months totaled 47,322,494 worth $34,732,324, dovm from 77,367,566 at $52,976,540 in first 2 months year ago. Feb. sales were 25,189,147 at $18,319,819 vs. 22,133,347 at $16,412,505 in Jan. and 40,061,683 in Feb. 1953. TV set sales by Canadian factories totaled 73,675 at average price of $370 in first 2 months of 1953, when production was 85,302, reports Canadian RTMA. Projected production estimate is that 120,875 more sets will be turned out next 3 months. Inventory at end of Feb. was 80,460, compared to 77,778 at start of month. Quebec led in sales with 27,988; Toronto second, 17,204; other Ontario, 7363; British Columbia, 6709; Ottawa & eastern Ontario, 5856; Hamilton-Niagara, 4191; Windsor, 2981; Maritime Provinces, 1016; Prairies, 367. For Feb. alone, sales were 38,785, production 41,467. Trad Television Corp., 1001 First Ave., Asbui'y Park, N. J. (Victor Trad, pres.), manufacturers of private label TVs and electronics equipment for govt., this week filed petition under Chapter XI of Bankruptcy Act, listing assets of $1,979,220 and liabilities of $2,175,897 and offering 15% settlement, payable 1% monthly starting 6 months after confirmation. Among largest creditors: Sylvania, $78,993; RCA, $13,184; Sangamo Electric Co., Marion, 111., $13,898; Erie Resistor Co., $12,000. New CR tubemaking firm, Texas Electronic Manufacturing Co., 3120 Lamar St., Houston, has been formed to begin operating by June. Owners also control Television Equipment Distributors, handling picture & receiving tubes, antennas and accessories. Founder is A. W. Larkin, pres.; Harry Pennings, sales mgr. Trsdo PsrSOnsls: Robert Brown, GE Washington dis trict mgr. of govt, equipment marketing, transferred to Syracuse to become mgr. of sales for heavy military electronics, succeeded in Washington by H. A. Crossland (heavy equipment) and D. A. Wilkinson (light equipment) ; Jack Painter, special Washington representative for GE broadcast equipment, has been transferred to Boston, succeeded by Lewis F. Page . . . Hodge C. Morgan promoted to Bendix Radio gen. sales mgr., replacing Arthur E. Welch, resigned; he reports to gen. mgr. Edwin K. Foster . . . John S. Frietsch, ex-Cincinnati district rep, Philco, named radio div. adv. mgr. . . . Thomas J. Kelly, from commercial service div., appointed Raytheon director of licensing . . . Rudolf Leopold promoted to mgr. of DuMont’s new specifications & records dept., in charge of designing broadcast equipment & mobile communications products . . . R. S. Gates named exec, v.p., Collins Radio Co., L. E. Bessemer named mfg. v.p. and R. T. Cod v.p. . . . J. D. Campbell named gen. mgr. of all consumer products in consolidation by Canadian Westinghouse; J. W. Kerr appointed gen. mgr. of apparatus products . . . Richard C. De Witt, ex-T. A. O’Loughlin & Co., Newark (Philco), named Fada adv. mgr., succeeding late Herman N. Lubet . . . Joseph Nauer Jr. named StewartWarner Electric midwest sales mgr., Cincinnati, replacing Graeme W. Stewart, now adv. & sales promotion mgr. of parent company . . . H. R. Marien Jr. resigns as exec, director of Television Service Assn, of Michigan to become exec, director of Florida Television & Technicians Guild, Miami . . . John Walker, ex-Philco & StewartWarner, named Emerson midwest district mgr., Cincinnati . . . E. Dudley Bell, exwestem div. mgr., American Lava Corp., appointed gen. mgr., Solar Mfg. Corp. . . . Jerome Bresson resigned as Tele King chief engineer to go into sales engineering . . . Richard J. Brandt, ex-pres.-gen. mgr. of Sterling Products International S.A., of Guatemala, appointed to newly created post of director of sales, Sylvania international div. B Distributor Notes: CBS-Columbia, continuing expansion, appoints R. Warncke Co., San Antonio, replacing E. G. Hendi-ix Co.; Lee Distributing Co., Buffalo (Ralph Henrich, v.p.) ; World Radio & Appliances Inc., Toledo (M. M. Isaacson, pres.) ; Harrisburg Radio Laboratory Supply, Harrisburg, Pa. (Louis J. Zeydon, pres.) . . . Capehart-Farnsworth appoints Codomo Distributors, Miami (Gregory I. Codomo, pres.) . . . Hallicrafters appoints Tubbs Electric Co., 165 S. Post St., Spokane (Clarence A. Tubbs, pres.) . . . Hoffman Sales Corp. of Seattle names Frank P. Fern gen. mgr., taking over duties handled temporarily by northwest district mgr. Paul Van Dusen . . . Hamburg Bros., Pittsburgh (RCA) promotes sales director Lester A. Hamburg to exec. v.p. & gen. mgr. . . . Westinghouse Electric Supply Co., Chicago, appoints T. R. Anderson TV-radio sales mgr., replacing Wm. Kilmer, resigned . . . Robert L. Rice Co., Portland, Ore. (CrosleyBendix) announces resignation of appliance sales mgr. Vincent J. Cooney. Industry spokesmen had generally favorable reaction to meeting with Commerce Dept, officials this week (see p. 13), one representative saying he was “pleased as punch” with the spirit of cooperation. Commerce Secy. Weeks told them he hoped new Business & Defense Services Administration unit, headed by Don Parris, would serve as spokesman for industry in dealings with Govt. He visualized BDSA as a central point where any manufacturer with a complaint or needing help from Govt, could go. Westinghouse now has about 5Vz% of TV sales market, said v.p. Mark W. Cresap at stockholders’ meeting in Sunnyvale, Cal., April 7. This is up from 3%-4% in 1953, keeps pace with improvement of 5% in general consumer products sales during first 2 months of 1954.