Television digest with electronics reports (Jan-Dec 1958)

Wyatt Building • Washington 5, D. C. • Telephone Sterling 3-1755 • Vol. 14: No. 9 SUMMARYINDEX OF THE WEEK'S NEWS ■— March I, 1958 DRAMATIC MACK CASE holds threat of severe reaction — with FCC out to assert "independence," isolation from industry, etc. (pp. 1 <S 8-9). NETWORK STUDY HEARINGS, starting next week, given top priority by FCC. Networks, leading off rebuttal, may find change in Commission climate (p. 2). FCC POSTPONES TOLL-TV processing until 30 days after Congress quits, in compromise action seen as rejecting dictation by Congress committees (p. 3). SYMPOSIUM ON SPOT discloses leading national reps bullish on current conditions and prospects for rest of year; lists of top TV users (pp. 3-5). OAKLAND, CAL. <S LOCK HAVEN, PA. put new stations on air, bringing total to 534. Ingrim-Pabst group's KTVU is Gth station in San Francisco bay area (p. 7). TELEMETER SEEKS TO DROP wired pay-TV franchise for Los Angeles rather than face public referendum; Skiatron indicates it will follow suit (p. 9). EDITORIALIZING ON THE AIR: Experts agree basic ingredients are heavy research, knowledge of issues involved, willingness to present other side (p. 10). EXPERIMENTAL VHF IN MIAMI denied to WITV (Ch. 20). FCC seeing little contribution to "development of the TV art." Other allocations actions (p. 10). Manufacturing-Distribution WESTINGHOUSE SEEKS 10% of color sales as RCA continues carrying ball, plans new line soon. Other set makers apathetic, though hypo needed (p. 11). HI-FI SURGE BOOSTS 1957 SALES of phono makers to new records. EIA statistics show substantial increases in all phonograph-hi-fi brackets (p. 11). GE ABANDONS FAIR TRADE as unenforceable, too costly; price cutting sweeps retail trade (p. 13). RCA-ZENITH SETTLEMENT footnote: RCA says its share of payment totals $4,800,000. Patent arbitration could cut RCA's net payment to $1,800,000 (p. 14). RCA GROSS AGAIN UP, tops $1 billion, but net profit down 3.7%. Commercial manufocturing accounts lor 50%, Govt, work 22.7%. NBC sales $292,212,000 (p. 15). ZENITH ACHIEVES HIGHEST profits and second highest gross in 1957 in face of industry recession. Philco pulls up gross and net (p. 15). THE MACK STORY-NOW THE EPILOGUE: The strange and pitiable case of "Richie" Mack , whose flagrant indiscretions in the matters of money and political pressures were pointed up this week by House subcommittee investigating alleged wrongdoing at the FCC and other independent Federal agencies, is about to be closed. He will resign, more than likely, though he may be removed if he insists on keeping the job (for details of week's developments, see pp. 8-9). The TV-radio industry, indeed all Federally regulated industries, would do well to contemplate possible repercussions of the much-publicized Mack case and the rest of the probings on Capitol Hill. Here are some of them, as we see things now: (1) There's danger that a jittery FCC. its actions under continuous spotlight henceforth, will react with a strong backlash effort to demonstrate the independence and judiciousness so sadly lacking in the Mack case. The Commission may very well be disposed now to take harsh measures with the industries it regulates. This could come in the network (Barrow) case, in which critical hearings begin next week (see p. 2). And some even see a suggestion of "independence" and a semblance of defiance of Congress itself in Commission's action on pay TV this week (see p. 3). (2) Makeup of the Commission is in for changes, perhaps substantial. With Mack out, the Administration that appointed him as a Fla. Democrat will presumably exert extraordinary caution to bring in a stable citizen to replace him — to avoid the political hackery that has marked so many past choices. There's published talk of Doerfer being demoted from chairmanship. Ford upgraded to replace him; so far.