Television digest with electronic reports (Jan-Dec 1954)

Record Details:

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NEWS BUREAU • WYATT BLDG. • WASHINGTON 5. D.C. • TELEPHONE STERLING 3-1755 • VOL. 10: No. 51 December 18, 1954 wi MARTIN CO DEL’S AUTHORITATIVE NEWS SERVICE FOR MANAGEMENT OF THE VISUAL BROADCASTING AND ALLIED ELECTRONICS ARTS AND INDUSTRY th Electronics Reports SUMMARY-INDEX OF THIS WEEK'S NEWS ANTI-TRUST SUIT AGAINST PHILCO charges franchises restrict distributors and retailers, hamper free competition; Carmine challenges charges (pp. 1, 11 & 12). TINY VHP & UHF SATELLITES appeal to FCC, which starts rule-making to drop power minimum to 100 watts ERP, no antenna height minimum (p. 2). PROPOSAL TO BAN MOST TOWERS over 1000 ft. is rebuffed as military and civilian spokesmen fail to agree; problem sent to Cabinet-level board (p. 2). NEWSPAPERS VOTE TO ACT against FCC discrimination in hearings, joining McClatchy's court oppeal of decision on Ch. 10, Sacramento (p. 3). PREPARING FOR 'MONOPOLY' PROBE, Sen. Kilgore goes over questions of station ownership, networks, free speech with consultant Howard Chernoff (p. 3). PRIVATE MICROWAVES GAINING SPEED, inducing AT&T to consider low-cost off-air pickup service; big money behind $309,823 Denver-Rapid City link (p. A). TAMPA & BEAUMONT GRANTEES plead with FCC not to stop construction, report huge potential losses as they await oral argument and reconsideration (p. 6). DESPITE WARNING OF RISING INVENTORIES, TV production keeps rolling at undiminished rate, nearing 7,000,000 mark with 3 weeks to go (p. 11). GALVIN, SIRAGUSA & SARNOFF forecast 1955 TV-radio trade roughly comparable to 1954; see color exerting minimal effect on black-&-white sales (p. 13). CBS DISCLOSES PATENT AGREEMENT with RCA on color tube, but RCA says it's using own tube (p. 10); Zenith depositions proceed as many sign with RCA (p. 15). FCC APPROVES MIAMI UHF OUTLET for Storer, who becomes first to own 7 TVs, but nobody can say which "national TV company" plans to build in Conn. (p. 6). FIRST COMMERCIAL SATELLITE at Pasco, Wash, hopes to start next week; Scottsbluff, Neb., repeater sets Feb. 1 target for test patterns (p. 10). NEW SYSTEM OF ELECTRONIC POLLING, called 'Centercasting', proposed by inventor-consulting engineer Dr. Alfred N. Goldsmith (p. 14). FCC 1953 AM-FM FINANCIAL DATA shows TV's profits passed radio's by large margin — $68,000,000 to $55,000,000— network sales in biggest drop (p. 16). Full Text of Dept, of Justice Complaint in Philco Franchise Suit Published as Special Report With This Issue U.S. SUES PHILCO ON TRADE FRANCHISES: Justice Dept, let fly with another anti-trust suit against a major IV-radio manufacturer this week, charging Philco illegally restricted its distributors and dealers in new franchise agreements instituted at Aug. convention (Vol. 10:32). Filed Dec. 15 in Philadelphia Federal Court, it was second civil anti-trust suit within industry in less than month, RCA having been sued on its patent licensing arrangements Nov. 19 (Vol. 10:47). The 2 suits are unrelated, of course, and are the products of separate teams of attorneys in anti-trust division. Called "co-conspirators" but not made defendants in Philco suit are its some 130 independent distributors who signed the refranchising agreement, which the Govt, says violates Section 1 of Sherman Anti-Trust Act and Section 3 of Clayton Act. Not included in suit is Philco Distributors Inc., a wholly-owned subsidiary with factory branches in New York, Chicago, Philadelphia & Los Angeles. Dept, of Justice cites 3 practices it contends are illegal, and asks court to void the franchise agreements v/hich countenance and enforce them: (1) Distributors are required to agree not to sell any Philco products to retailers outside their assigned territories. That, Justice contends, eliminates competition among distributors, even though they are in different territories. (2) Distributors must not deal in any product competitive with Philco, as a condition of getting Philco line. That, it is charged, is illegal as it prevents rival manufacturers from having Philco distributors for its products. (3) Retailers "approved" by distributors must sell only to consumers, never to other retailers. That is designed to prevent price-cutting. Justice says, and also has corollary effect of eliminating competition among retailers. (For continuation of this report, see Trade Report, pp. 11 & 12.) COPYRIGHT 1954 BY RADIO NEWS BUREAU