Television digest with electronics reports (Jan-Dec 1958)

SUMMARYINDEX OF THE WEEK'S NEWS — May 3h 1958 SMALL-TIME AND/OR BIG-TIME business problems reilected WHERE ARE THE V.P.'s and network topkicks of yesteryear? in reports from a small-market operator and an econo Final installment of our review of present activities of mist who urges going after more "local" (pp. 1 & 6). 139 of them (p. 7). POLITICAL PRESSURES ON FCC bemoaned again by Harris probers as they pursue Ch. 2 from Springfield, 111. to St. Louis in deintermixture case (pp. 2 & 10). REPS' RESERVED TIME PLAN sent to all stations but given little chance of adoption by FCC. Quick survey tends to show little enthusiasm for it (p. 2). SENATE ALLOCATIONS HEARING shows FCC favoring deintermixture but wanting to wait for TASO technical findings. CATV-station fight (pp. 3 & 4). FEDERAL AID TO ETV PASSES Senate in surprise vote on $51,000,000 Magnuson bill giving equipment grants to states. House "enthusiasm" seen (p. 5). 3 CABLE-THEATRE PROJECTS planned for early 1959 by Telemeter. Truman urges pay-TV tests. Dr. Norman Vincent Peale turns thumbs down (p. 16). Manufacturing-Distribution DuMONT-DAYSTROM MERGER being discussed by bankers with executives, possible basis to be 7Vz shares for 1. Setup and finances of the companies (pp. 1 & 13). RCA UNVEILS BIG STEREO LINE including phonos, discs, tape-cartridge. Predicts $1 billion record music market in "short time" (p. 12). CO-OP AD TAX CONTESTED by manufacturers, admen who say IRS plan is against public interest (p. 12). DuMONT-DAYSTROM MERGER DISCUSSED: "All sorts of deals are cooking at the moment , " was all the comment we could elicit from financial people concerned with merger deals involving Allen B. DuMont Laboratories Inc. — and best dope we could get is that consolidation is being considered with Daystrom Inc. , headquartered in nearby Murray Hill, N.J. "Terms haven't jelled yet," was response when we asked whether report is true that deal contemplates exchange of approximately 7V2 shares of DuMont common (2,361,092 outstanding, some 28% owned by Paramount Pictures and traded on American Stock Exchange) for one of Daystrom (905,432 shares outstanding, traded on N.Y. Stock Exchange). DuMont executives were understandably stonily mum. Daystrom 's apparent desire to expand consumer product lines, notably in TV for first time and in hi-fi, makes merger seem logical — for DuMont has always been a big name in TV sets and tubes, currently is planning expansion into stereo phono. Also talked about is possible merger of DuMont with Raytheon or Hoffman, both relatively prosperous, both experienced in TV-radio, though Raytheon quit TV last year. This week some 69,000 shares of DuMont were traded and it closed at 5)4, new 1958 high, whereas only 4400 shares were traded week ended May 23 & 7200 week ended May 16. Daystrom turnover was 3000 shares, closing at 33%, not much change from preceding week; curiously, exactly 2300 shares of Daystrom were sold in each of preceding 2 weeks. [For further details on Daystrom-DuMont , see p. 13.] RUSINESS-SMALL-TIME AND/OR RIG-TIME: Even as big-time reps were seeking FCC relief from the "sword of Damocles" they allege the networks dangle over affiliates (p. 2), even as an ill-attended Senate subcommittee hearing was recording pleas of smallmarket station operators that something be done by Washington about the severe "competition" they're suffering from community antenna services (p. 4), we received 2 missives this week that are particularly apropos the question, "How's Business?"