Television digest with AM-FM reports (Jan-Dec 1951)

WITH AM~fM REPORTS 1519 CONNECTICUT AVE. N.W. t/ WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Trade Report April 28, 1951 TV-RADlO ESCAPE PRICE ROLLRACKS: Price controls don't hurt the TV-radio industry . Instead of rollbacks, it looks like ceiling prices will be high enough to permit upward price changes as and when needed. At least, that's early interpretation of industry and govt, executives following issuance this week of Office of Price Stabilization's manufacturers' price regulation (CPR-22), effective May 1. And with this week's revision of Section 45 of retail price regulation (CPR-7), which now permits manufacturers of branded merchandise to set wholesale as well as retail prices, the TV-radio industry is in position to calculate its ceiling prices to distributors, retailers, public (Vol. 7:9,14). Inasmuch as today's TV prices are lower than they were during base period stipulated, plus permitted increases in factory labor and materials costs, nobody sees much difficulty in foreseeable future. Factory accountants are working on details of what the regulation means to their companies ; nobody, so far, seems to have found any hidden "gimmicks," as one put it. Parts manufacturers aren't quite so sanguine. Their best thinking is that no rollbacks will be required immediately, but that "cushion" betv/een present parts prices and ceiling prices is pretty close — doesn't give them much leeway if costs get out of hand. There's also still unresolved question in OPS whether manufacturers' regulation covers all electronic components makers. Best guess is that final decision, due in week, v/ill keep parts makers whose products are primarily for TV-radio under manufacturers' regulation. TRADE WINDS BLOWING NOBODY ANY GOOD: More factory "vacations" and layoffs, further decline in TV production, mounting factory inventories, and a still-listless retail market — that about tells story of this week's TV trade. To say that industry folk are plenty v/orried — at manufacturer, wholesaler and retailer levels alike — would be putting it quite mildly. Short of seasonallyunlikely loosening of customer pursestrings, the outlook remained gloomy. One big effort was extended this week: RTMA president Glen McDaniel and general manager James Secrest waited on Federal Reserve Board staff to ask, once again, that Regulation W be at least ameliorated by way of (a) a 90-day moratorium on the 25% down payment requirement, so that TV stocks can be moved; (b) ruling that trade-ins may be applied against down payment; or (c) that up to 50% of trade-in value be so applied. Reduced installment buying is believed by many to be basic cause of current market lull. Time sales have declined much more sharply than cash selling since Regulation W was tightened last October. Bankruptcies and financial straits among dealers v;ere cited as reasons for relief. The industry spokesmen were assured matter would be brought to attention of full board next week. !|= * !i« >!: There were plenty of signs of distress, as sales and giveaways failed to move goods fast enough. Only promise of better things ahead v;as Dept, of Commerce April Survey of Current Business stating that high-inventory situation in consumer durables generally should be short-lived because (a) NPA steel order (Vol. 7:15-16) will cut future output, and (b) inventories of rav/ materials and components among manufacturers are getting low. "They're telling us!" might well be reaction to report's conclusion that TV-radio has felt blow harder than other lines. And "Oh yeah" to statement that inventories of consumer goods aren't "unduly" high in relation to sales, and that wholesale inventories "do not appear excessive in terms of sales volume." Nor is there much comfort in Federal Reserve Board's latest Survey of Con 6 2