Television digest with AM-FM reports (Jan-Dec 1950)

Trade Personals: John F. Myers elected president of Westinghouse Electric Supply Co., operating 109 wholesale branches in 42 states; he succeeds David M. Salsbury, who becomes v.p. in charge of Texas & Pacific Coast operations with headquarters in San Francisco, having requested change for sake of health of his family . . . GE elects John L. Busey, Bridgeport, v.p. in charge of marketing policy; Wm. V. O’Brien, Schenectady, his asst.; Charles R. Pritchard, ex-marketing mgr., president of GE Supply Corp. . . . P. O. Krumm, Sentinel purchasing director, has bought controlling interest in Niles Cabinet Co., Niles, Mich., with Chicago offices in McJunkin Bldg. . . . Ben Rice new Starrett sales mgr. succeeding Seymour Newman . . . Glenn H. Browning, president. Browning Laboratories, awarded honorary degree by Cornell College, Mt. Vernon, la., from which he w'as graduated in 1921 . . . George R. Sommers appointed gen. sales mgr., Sylvania radio & TV tube divisions, succeeding C. W. Shaw, now asst, to sales v.p. . . . L. M. Sandwick, ex-Henry O. Berman Co., Washington, joins Scott Radio as merchandising mgr. , . . Tom Bernard named asst, director of public relations, RCA Victor, under v.p. John K. West . . . Raimund D. Osborne new comptroller of Federal Telephone & Radio, succeeding George Scharffenberger, now asst., to Gen. Wm. H. Harrison, IT&T president & Federal chairman . . . Edward C. Bonia, ex-Bendix and Muntz, named chief of Meek contract division sales, handling all other than jobber-distributed lines; he will open New York offices. Zenith bowed to FCC request of last week for more information about its Phonevision royalty offer to manufacturers (Vol. 6:25), and withdrew offer — but grudgingly. In response dated June 24, Zenith’s John R. Howland stated that no manufacturer had signed up under advance royalty credit plan (Vol. 6:8), but listed following 10 as having “indicated an interest”: Crosley, Emerson, GE, Hoffman, ITI, Magnavox, Stewart-Warner, Stromberg-Carlson, Sylvania, Wilcox-Gay (latter now owned by Majestic). Letter also stated that one of these had asked Zenith to modify some of its receivers, so they could be used during Chicago tests scheduled for autumn. Howland insisted Zenith still regards its royalty offer as “in the public interest,” and made clear that mere inclusion of Phonevision plug isn’t covered by any Zenith patent. The decoder is the patented device. Thus far, no other manufacturer has gone along with Zenith Phonevision plans; in fact, big ones like RCA, Philco and Admiral are openly opposed, as are most telecasters to say nothing of movie producers. Question now is whether FCC will be satisfied enough to extend Phonevision test authorization to Oct. 1, as requested, which was specific purpose of its exchange of letters with Zenith (Vol. 6:22-23,25). Best guess is that it will — that public by now should be fully aware that Phonevision is still experimental only and FCC must, after tests, still rule on basic principle of pay-as-you-look TV. Zenith president E. F. McDonald, meanwhile, crossed swords with Skiatron’s Arthur Levey. Of latter’s Subscriber-Vision (Vol. 6.24), which allegedly requires no phone line, McDonald said it would require fixed subscription fees or special programs fixed in advance, thus not giving public choice. Levey retorted that his own decoder keys could be sold at any drug or grocery store. Footnote on Phonevision publicity: One of our staffmen was visited at home by Muntz TV demonstrator, working door-to-door. In course of otherwise quite straightforward pitch, salesman volunteered that Muntz would have new “gadget” in 60 days that would enable buyer to call phone operator, order any first-run movie, pay for it on phone bill! Financial & Trade Notes: DuMont’s first 24 weeks of this year resulted in $26,000,000 sales vs. $18,000,000 for same 1949 period. President Allen B. DuMont told annual stockholders meeting June 28 he looks to $80,000,000 sales this year vs. $45,000,000 last year. Earnings for first 24 weeks approximate $2,700,000 vs. $1,780,000 in same 1949 period. Dr. DuMont said production would have been at much greater rate except for TV freeze, which he forecast would not be lifted before spring of 1951. Even then, because of FCC hearings and paper wor’x, he did not think more than 30 new stations would be constructed in 1951, 100 in 1952, 150 in 1953. Dr. DuMont reiterated his belief none of color TV systems is ready for public. He claimed DuMont sets have at least 600 parts, whereas average of other manufacturers is only 400. Company rightly anticipated tube trends, he noted, with 7 & 10 in. now practically obsolete, 12^^-in. on way out. DuMont will continue to concentrate on larger screens. He predicted all TV tubes ultimately will be rectangular, showed laboratory model of 30-in. tube to be ready in fall. ♦ * ♦ * Radio-TV manufacturers averaged 5.7% net earnings on 1949 sales. National Credit Office Inc. revealed this week in study titled Maniifo.cturers of Radio & TV Receivers prepared by v.p. K. W. Tibbitts. Report is based on balance sheets of group of representative manufacturers whose 1949 sales totaled $380,221,000, and compares 1949 earnings with those for 1948 — 5.35% on $260,521,000. Report indicated earnings of some companies went as high as 10% on sales in last 1949 quarter, first 1950 quarter. Inventory losses, fact some didn’t reach volume production until after mid-1949, are cited for bringing yearly average down to 5.7%. Tibbitts states earnings in some cases went as high as 50% on invested capital, in 2 instances 100%. Companies with best earnings records are those with highest inventory turnover, report indicates, stressing importance of inventory control. Study can be had from NCO, 2 Park Ave., New York. Zenith reports sales of $99,210,746, net profit of $5,268,001 ($10.70 a share), for fiscal year ended April 30. This campares with $77,146,861 sales, $2,706,889 ($5.50) profit in preceding year. President E. F. McDonald told stockholders trend to lower prices probably will be less evident in ensuing months than it has been in last year, due to components shortages, cited how one Zenith TVconsole which sold for $480 year ago compares with current price of $270. Tele-tone registration statement filed with SEC covers proposed public offering of 100,000 shares of unissued Class A cumulative convertible stock, $10 par, and 130,000 shares of $1 par common. Former will be sold at $10; latter at $6 by 15 stockholders, through Sills, Fairman & Harris Inc. and Straus & Blosser. Proceeds will be applied to working capital for plant facilities and equipment. Tele-tone also informed SEC it was purchasing Rico Television Corp., Hato Rey, Puerto Rico, through issuance of 50,000 Tele-tone shares in exchange for Rico stock. S. W. Gross, Tele-tone president, will get 22,500 of these shares for his Rico holdings. Facet of Philco organization not generally known, and not mentioned in last week’s report in this column (Vol. 6:25), is that company personnel, mainly at higher levels, owns just about 30% of its outstanding stock. Incentive compensation amounts to 10% of profits before taxes. Olympic declared 20^ dividend on increased common shares resulting from recent 20% stock dividend (Vol. 6:17), payable July 17 to stock of record July 7.