Television digest with electronic reports (Jan-Dec 1957)

WESTINGHOUSE WEIGHS NEW TV CONCEPT: Deeper plunge into contract and private-label TV production is being considered by Westinghouse as way of utilizing idle productive capacity at TV-radio plant in Metuchen, N.J. Chris J. Witting, v.p.-gen. mgr. for consumer products, estimated last week that its plant is now operating at only 55% of total capacity. While he asserts that's in keeping with Westinghouse ' s share of TV market, he certainly doesn't believe there's any virtue in idle plant space. Westinghouse has produced about 5000 private-label TVs for Montgomery Ward, built to latter's specifications and designs. That has been extent of its privatelabel production — so far. In Westinghouse planning for future, however, is expansion of both contract and private-label production. Witting told us: "We're discussing with other TV manufacturers the possibility of making their sets in our plant. In addition, we're talking with key department stores in metropolitan areas about the chance of expanding in private label. We have the most modern TV manufacturing facility in the country, and we intend to operate it as near to capacity as possible, though that's not likely this year. "We also believe our product improves when we bring a new line into the plant. We will not, of course, sacrifice Westinghouse-label production if we carry out our plans, and I must emphasize that no decision on it has been reached, beyond fulfilling our one-shot order for Montgomery Ward." Contract production is not new in TV, of course, but for Westinghouse it represents something of a departure from its traditional concept of doing business. It has always turned down requests from other manufacturers to handle production of TVradio-appliances in past, though its productive facilities admittedly have been more than ample for its shares of markets. Westinghouse has taken 4-5% of TV market in last few years, according to the most reliable (though necessarily unofficial) estimates. Its immediate goal is for at least 7%, and meanwhile it believes it can take on "plus" business from other set makers who want to remain in TV business to keep their brands before the public, but want to be relieved of high production costs, leaving them free to use ftinds for more profitable segments of their business, such as defense work. * * * * Admiral raised color prices by $50 across-the-board this week, effective immediately, but other manufacturers said RCA's action last week in increasing prices of 3 color sets and warning of more to come (Vol.l3:5) would have no effect on their immediate plans. Admiral's increases boosted price range of its color line from |550 for consolette to |880 for low-boy console, all 21-in. Reaction from distributors and dealers was mixed, though many field reports coming into NARDA and in trade press indicated general approval. Most dealers felt the action would put consumers on notice that price reductions should not be expected and that this in turn would cause them to stop delaying purchase of a color set. Economic Controls: Chances are against any enactment of legislation, or even administrative action, to reimpose anti-inflation controls this year. President's news conference remark this week that Govt, would be forced to impose price and wage controls unless business and labor used voluntary restraints drew generally cool reception in Congress and precipitated controversy within his Cabinet. The day after President's comment. Commerce Secy. Weeks said Administration has no plans to put controls on wages and prices, added: "I just instinctively recoil from controls in a free economy." He said there was no disagreement between himself and President. Sen. Fulbright (D-Ark.), chairman of Senate Banking Committee, commented that if President wanted economic controls, he would have to give details to Congress. Sen. Saltonstall (R-Mass.), ranking minority member of committee, said "I would be 9