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Distributors must control merchandise in their territory — and that means keeping closer tabs on dealers who sell to discount houses, warned Otter. He said: "You control the dealer, not the reverse." He indicated some distributors tacitly approved re-sale of merchandise by dealers to discount houses in effort to impress factory that they are moving merchandise.
Philco pledged it wouldn't overload distributors, which Otter admitted was at root of much of trans-shipping and also was a big factor in indiscriminate price cutting and liquidations. Under new stock control system, which is companion to new franchise agreements, factory designates how much inventory of each model should be on hand in order for distributor to do specified amount of business.
Factory will stop shipments immediately on any model when distributor has more than 10%' of "required inventory" of that model on hand. But if he has quite a bit less than the "required inventory" over a long period of time, that will be subject of investigation by factory for suspected trans-shipping.
Philco said plan was designed to make franchise "more valuable. " denied any intent to "get tough" with distributors. Otter himself said company was trying to "keep the merchandise clean" and hoped other manufacturers would do likewise.
* ♦ ♦ ♦
RETMA recapitulated 6-month TV-radio production in release this week, showing output of 2,845,147 TVs, 4,886,559 radios. TV production compared with 3,834,236 in first half of 1953 and 2,318,236 in first 6 months of 1952. Of total, 636,456 were uhf-equipped at factory. Production in June (5 weeks) was 544,142 (99,404 uhf), as compared with 396,287 in May (4 weeks) and 524,479 turned out in June 1953.
Radio output was way down from the 7,266,542 turned out in first half of 1953 but not as far removed from the 5,456,035 in first 6 months of 1952. Radio output in June was 837,655 vs. 722,104 in May and 1,163,831 in June 1953. Revised tables;
PRODUCTION
RADIO
PRODUCTION
BY TYPES
Total TV
Total Radio
Home Sets
Portables
Clock
Auto
January
420,571
871,981
271,036
46,571
159,932
394,442
February
426,933
769,232
233,063
98,275
105,933
331,961
March (5 wks)
599,606
940,352
244,110
206,130
119,863
370,249
April
457,608
745,235
165,232
175,424
73,590
330,989
May
396,287
722,104
173,480
174,735
57,370
316,519
June (5 wks) .
544,142
837,655
226,350
141,904
132,668
336,733
TOTAL
2,845,147
4,886,559
1,313,271
843,039
649,356
2,080,893
Trade Personals: James H. Carmine, Philco exec, v.p.,
at age 52 becomes pres., while Wm. Balderston, 58, steps up to chairman, and consumer products v.p. John M. Otter becomes new exec, v.p., in elections announced at this week’s distributors convention; James T. Buckley declined reelection as chairman after 42 years with the company . . . C. K. Huxtable named Montgomery Ward national TVradio mgr., replacing Peter J. Faber, resigned . . .Victor Emanuel, chairman of Avco, among 17 guests at President Eisenhower’s stag dinner in White House Aug. 4 . . .Dan D. Halpin, DuMont, reappointed chairman of RETMA sales mgr. committee; A. A. Currie, Sylvania, renamed eastern vice-chairman, E. L. Taylor, StewartWarner, westeiTi vice-chairman . . . Joseph F. Miller promoted to asst, managing director of National Electrical Mfrs. Assn.; Wm. J. Donald, managing director, reportedly will retire next April . . . Wm. J. Hopkins named supervisor of national accounts for Sylvania electronic products, succeeded as mid-Atlantic district sales mgr. by Robert C. Hoffman, who is replaced as mid-Eastern sales mgr. by J. B. Pomeroy; M. C. Koseto replaces Pomeroy as northern California sales rep; Norman B. Scott named southeastern regional mgr.; Alfred S. Ross metropolitan N. Y.-N. J. mgr.; John S. Dew.s, Cincinnati; John O. I’ainter, Wa.shington-Baltimore-Philadelphia; Ted Napp, Chicago; W. G. Itipley, Dos Moines . . . Dave Kaye resigns as v.p. of
Kaye-Halbert, now operating under Chapter XI of Bankruptcy Act . . . Everett S. Calhoun, mgr. of electronic data processing research, Stanford Research Institute, left July 31 for 3-month inspection tour of European electronic research centers . . . Joseph C. Profita, ex-Methods Engineering Council, Pittsburgh, named asst, to Raytheon marketing mgr. Daniel J. Webster . . . Raymond W. Herrick, onetime Admiral national radio sales mgr., named Emerson north central district mgr. . . . Herman L. Weckler, Clevite Corp. operations v.p. in charge of manufacturing & sales subsidiaries, named corporate gen. mgr. with responsibility for all Clevite activities . . . Henry T. Roberts, gen. mgr. of Magnecord commercial music div., promoted to v.p. . . . M. A. Koetke named adv. & sales promotion mgr., Gramer-Halldorson Transformer Corp. ■
Dr. Cornelius G. Brennecke, 47, dean of N. C. State College electrical engineering dept, and nationally known for his electronics research, died Aug. 2 in Raleigh. A onetime RCA engineer, he helped organize and was pres, in 1948 of IRE’s N. C.-Va. section.
Emerson’s Ben Abrams presented $10,000 checks this week to educational stations KQED, San Francisco, and WHA-TV, Madison, in line with his plan to give such donations to first 10 educational stations on air.