Television digest with electronics reports (Jan-Dec 1958)

17 On Raising Capital: Electronics and related electronic entertainment firms raised substantial amounts of new capital during latter half of 1957 via publicly-sold and privately-placed securities issues. Jan. 27 Investment Dealers’ Digest lists these public issues (all common shares unless otherwise specified) : Amphenol Electronics, $5,500,000 , 200,000 shares @ 27', 2, thru Hornblower cSi Weeks. Walt Disney Productions, 400,000 @ 21%, Goldman Sachs & Co., Lehman Bros., Kidder, Peabody & Co. Electro Instruments Inc., 150,000 @ 12',^, Bear, Stearns & Co. with Paine Webber, Jackson & Curtis. Electronic Research Associates, 100,000 @ 3, Singer, Bean & Mackle. Emerson Electric, $3,390,000 conv. sub. 51/2% debenttires. Smith, Barney & Co., Van Alstyne, Noel & Co. with Newhard, Cook & Co. Haydu Electronic Products, 100.000 @ 3, Barry & Co. Hewlett-Packard Co., 300,000 @ 16, Blyth & Co. Hycon Mfg. Co., 400,000 @ 3, Dempsey-Tegeler & Co. MinneapoUs-Honeywell, 331,237 @ 85, Eastman, Dillon & Union Securities. National Telefilm Associates, $5,000,000 sub. notes, 6s, 1962, and 350,000 sh. @ 7%, Cruttenden, Podesta & Co. with Cantor Fitzgerald & Co. and Westhelmer & Co. Narda Microwave Corp., 90.000 @ 3, Milton D. Blauner & Co. Perkin-Elmer Corp., 75,000 @ 20, Blyth & Co. Sanders Associates, 100,000 @ 15, Kidder, Peabody & Co. Siegler Corp., 320,000 @ 15 , 5000 @ 2OV2, William B. Staats & Co. Telestudios Inc., 180,000 @ IV2, Joseph Mandell Co. Texas Instruments Inc., conv. 4.48% pfd. called for payment, Morgan Stanley & Co. Tracerlab Inc., 112,661 @ 6, Lee Hlgglnson Corp. Tung-Sol Electric, 100,000 conv. 5% pfd. @ 50, Harrlman Ripley & Co. Victoreen Instrument Co., $700,000 cov. sub. debentures, 6s 1967, Saunders. Stiver & Co. Also reported for July-Dee. period were these privately placed securities, all term notes and nearly all through Insurance companies, for Aeroquip Corp., $1,000,000; Aircraft Radio, $1,600,000; Audio Devices, $1,000,000 (thru Carl M. Loeb, Rhoades & Co.); C&C Films, C&C Pan Atlantic TV Co. and C&C International Film Corp., $225,000 jt. notes/1960 @ $78.22. C&C International Film Corp., ^1,856 gtd. notes, 6s @ $94.13. C&C Pan Atlantic TV Co., $1,292,782 gtd. notes, 6s, 1960 @ $94.13; Perkin-Elmer, $2,000,000; Siegler Corp., $3,000,000; Tung-Sol Electric, $5,000,000. ■ General Instrument Corp. has completed purchase of Radio Receptor Co. (Vol. 13:15), remaining 14% of outstanding stock of 35-year-old electronics firm being acquired this week. Integration of Radio Receptor’s research, engineering & manufacturing operations (semi-conductor devices for TV, radio, industrial & commercial uses, and heat-sealing apparatus) is well under way. Sales Down, Profits Up: Hoffman Electronics Corp., with about half of its gross income now derived from defense contracts of subsidiary Hoffman Laboratories Inc. under pres. James D. McLean, suffered drop in 1957 sales to $40,968,617 from 1956 total of $46,580,279. But net income went up to $1,655,372 ($2.25 per share on 735,610 shares outstanding) from $1,601,974 ($2.19) in 1956 — this in spite of decrease in TV set sales, $2,500,000 expended on research & development, $2,000,000 plant & machinery program. Radio and hi-fi sales held up, says annual report, and semi-conductor sales increased. Firm has contracts for solar energy controls in Vanguard. During year, Hoffman closed out company-owned consumer product distributorships in all but Los Angeles & Portland. Ratio of profit to sales was 4% against 3.4% in 1956. Biggest business of them all, AT&T in 1957 paid its over-$30,000 officers-directors : Frederick R. Kappel, pres., $187,500 (owns 1000 shares); Eugene J. McNeely, exec, v.p., $130,370 (260 shares); Cleo F. Craig, chairman of board until May 31, 1957 & member of executive committee, $113,283 (1000), Clifton W. Phalen, exec, v.p., $107,750 (205); Arthur W. Page, $11,600 as director & member of exec, committee, $25,000 as consultant (170). Ex-pres. Craig now receives $70,243 annually from pension fund. Figures are from proxy statement in advance of annual stockholders’ meeting on April 16 in N. Y. Top GE salaries for 1957 : Philip D. Reed, chairman, $168,740, owns 35,651 shares of common; Ralph J. Cordiner, pres., $264,973 (41,639) ; Robert Paxton, exec, v.p., $170,603 (28,294). Top Westinghouse officer-director 1957 salaries and stockholdings, as reported in proxy statement for April 2 annual meeting: Gwilym A. Price, chairman, $138,779, owns 6116 shares of common; Mark W. Cresap Jr., pres., $109,979 (1627 shares); E. V. Huggins, v.p. & chairman, exec, committee, $53,239 (2054) ; J. K. Hodnette, exec, v.p., $97,767 (2463); L. E. Osborne, resigned vice chairman & director, $95,100. □eclronics Portfolio Report: Electronics investment Corp., mutual fund founded & headed by ex-San Diego broadcaster Charles E. Salik, reports net assets of $14,756,141 as of Jan. 31. Portfolio included $11,320,284 shares of common stock, $419,105 preferred, $933,824 bonds, $1,050,366 U. S. Govt, obligations. Portfolio changes during Oct. 31 Jan. 31 quarter: Purchases: 500 shares of Airborne Instruments Lab (making total of 4000): 2900 AB-PT (total 12,900); 200 American Machine & Foundry (total 5200); 1700 Amphenol (total 6700); 2000 Ampex; 2000 Bell & Gossett (total 12,000); 898 CBS “A” (total 2999); 2000 EltelMcCullough; 1750 General Telephone (total 7000); 3500 HewlettPackard; 3000 High Voltage Engineering; 1600 Hoffman Electronics (total 6600): 2000 P. R. Mallory (total 10,000); 5000 Midwestern Instruments (total 11,000); 500 Raytheon (total 9800); 400 Sprague Electric (total 5400): 3000 Statham Instruments (total 8000); 1000 Vartan Assoc.; 2000 Westinghouse (total 5000); 3500 Eastern Industries conv. pfd. (total 8500); $15,000 Epsco 5 ','2% conv. notes 1963; $200,000 Federal National Mort^;age Assn. 4.2% due Oct. 10, 1958; $50,000 Federal Loan Bank notes 3.3% due July 15, 1958. Sales: 2100 Amp Inc. (holds 1852); 5000 Allls-Chalmers; 10,000 Clevlte; 3000 Cutler Hammer; 500 Daystrom (holds 9500); 2500 Epsco (holds 7500): 300 IBM (holds 1025); 1700 Minn. Mining & Mfg.; 3300 Square "D” (holds 5700); $100,000 Federal Home Loan Bank notes 3.95%. Motorola’s transistorized portable TV should be “on the market in a couple of years,” pres. Robert W. Galvin told reporters in San Francisco. He said it would cost $500 at retail if produced now and, while it won’t be that much later on, it will still be in “premium class.” Magnavox plans $1,000,000 expansion of its Greeneville & Jefferson City, Tenn. plants, enlarging assembly, cabinetmaking, warehouse facilities. Excitement over educational TV in N. Y. is beginning to build up, now that state GOP legislative leadership has endorsed appropriation of $370,000 to finance programming on WOR-TV (Ch. 9) for 7 months starting Sept. 1. Last week, N. Y. State Board of Regents and WOR-TV agreed to let education have full use of its facilities 9 a.m.5 p.m. weekdays, 9 a.m.-noon Sat. (Vol. 14:11). Indicative of enthusiasm generated is comment of TV critic Jack Gould in March 18 N. Y. Times: “The art of teaching is going to be brought out in the open where all can savor it. The availability of 43 hours of education a week on TV is bound to make many persons a little more aware of the continuing adventure of learning. Whatever the headaches, controversies and disappointments — and there will be some of all — the introduction of educational TV on Ch. 9 is decidedly worth the effort.” Transistorized portable clock radio, introduced this week by Emerson as “world’s first,” weighs about 2 lbs., has 8 transistors, lists for $88. Combination is about size of an ordinary novel; maker claims clock will operate 3-5 years on single battery. Hearings on Danger bill (S-582) to ban beer & liquor advertising in interstate commerce have been postponed to April 22-24 from April 14 by Senate Commerce Committee. RCA shipped 12-kw transmitter March 13 to WICS, Springfield, HI. (Ch. 20), planning boost to 512-kw at new site.