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

9 Financial & Trade Notes: Industrial profits receded for the third successive quarter this year, in contrast to last year’s consistently upward climb, reports New York Times. Even with improved fourth-quarter results. Times says earnings for all 1951 will shrink further when final tally of taxes is made. Combined net income of 510 companies in 60 different manufacturing divisions are totaled as $4,357,650,379 after taxes for first 3 quarters, down 10% from the $4,839,550,379 for same 1950 period. Radio-TV-records are listed as one of the divisions, 9 companies reporting $46,212,000 profits, down 43% from $81,437,000 for same 9 months of 1950. Eight electrical supplies & equipment companies reported $139,781,000, down 18% from $170,686,000. Nine home appliance & machine firms reported $19,010,000, down 37% from $30,029,000. Taxes were principal pinch in profit picture, absorbing average of 62% operating income (compared with 44% year ago), and “will continue as a major obstacle in recording better returns.” Curtailed earnings were also affected by rising operating costs, lower profit margins, material shortages and smaller inventory profits than in 1950. Large inventories were another contributing factor, reflecting consumer indifference to buying. * Although Allen B. DuMont Laboratories Inc. showed net loss of $319,547 for 40 weeks ended Oct. 7 (Vol. 7:46), it will earn profit of about $500,000 for full year, said president Allen B. DuMont to Assn, of Customers Brokers Dec. 12. In 1950, net profits were $6,900,788 — this year’s drop being attributed to TV inventory losses and shift to defense work. Firm has $68,000,000 in defense contracts on the books. Dr. DuMont said, with real peak in defense work expected in spring of 1952. He estimated this year’s volume at about $52,000,000, as against $76,000,000 last year; next year the volume should go to $100,000,000 to $125,000,000, of which about $47,000,000 will be commercial sales (TVs, transmitters, tubes, etc.). FCC’s new-station freeze was called major deterrent to TV industry profits, but Dr. DuMont said he expects ban to be lifted by February or March. His company owns 3 stations (in New York, Washington, Pittsburgh), has applications pending for Cincinnati and Cleveland. He revealed that the 3 stations are carried on DuMont books at $1,500,000 and that offers for them totaling $16,000,000 have been turned down. ^ Hazeltine, formed in 1924 as research and patentholding firm, now a major factor in electronics development and production, will top its 1950 net profit of $1,428,431 ($4.08 a share) despite bigger tax bite, said president Jack Binns to Wall Street Journal Dec. 13. Company doesn’t issue quarterly reports. Most of its output now is for Govt., including $6,000,000 electronic weather control system for Civil Aeronautics Administration. Because of large capital requirements, Mr. Binns indicated dividend isn’t likely to be increased; it has been 25^ first 3 quarters, $1 at year-end. Bound and Indexed We’re planning to index and bind, between embossed book covers, in limited quantity, all 1951 issues of the Television Digest Newsletters plus the year’s Supplements and TV Factbooks. This volume of 52 Newsletters, Supplements, Factbooks and Index will provide a handy and handsome permanent reference. Orders will be taken only until Jan. 5. Price, $25 per volume. British film makers are invading U. S. films-forTV market with 30-minute features made especially for American home screens, writes correspondent Mitchell Gordon in London dispatch to Wall Street Journal Dec. 10. British product is now being tested on East Coast stations, and producers are “rushing plans for more than a score of half-hour celluloid mysteries and musicals tailored especially for U. S. TV entertainment,” says Gordon. He adds British films can be priced at least 25% below Hollywood product because of lower labor and production costs. Currently, series of 3 mysteries. The Eyes, from Film Producers Guild Ltd., is making rounds of Eastern U. S. stations; Craft Films Ltd. plans release soon of new film based on ballet Giselle; coming from G.H.W. Productions is Biblical film, to be timed for Christmas season. Next fall, says Gordon, at least 26 British-made films will be available to American TV stations. Included will be 13 Scotland Yard movies by Monai’ch Studios Ltd. They’ll be shown first as shorts in U. S. theatres next summer, then released to TV. Grand National Pictures Ltd. plans mystei’y series for fall. These additional British studios are listed as entering or planning to enter TV film production: Renown Pictures Corp., Exclusive Films Ltd., Associated British Picture Corp. Combined theatre-TV interests oppose proposal to classify theatre TV as an “industrial radio service” and assign it to present industrial frequencies on shared basis with other industries — but they’re asking FCC to include issue in theatre-TV hearings, scheduled to begin Feb. 25. Petition, due to be filed next week by Motion Picture Assn, of America, Theatre Owners of America and National Exhibitors Theatre-TV Committee, is considerably less enthusiastic about idea than one filed Sept. 11 by 20th Century-Fox (Vol. 7:36). “Theatre TV,” says petition, “can best serve the public interest if, and only if, it is granted an assignment of exclusive frequencies.” Any allocation of shared frequencies to theatre-TV industry “would be, at most, a decision of expediency,” say petitioners, explaining that as theatre-TV service expanded new problems would “arise each day and multiply as time goes by.” Not much hope for private TV stations in Canada soon was held out by chairman of Canadian Broadcasting Corp., A. D. Dunton, testifying this week before House of Commissions committee. CBC won’t authorize any, he said, until CBC itself is ready to offer “national service,” and its own first 2 stations — in Toronto and Montreal — won’t be ready until “summer of 1952.” Plan is to link them with U. S. networks via Buffalo, then build in Ottawa, Quebec, Winnipeg, Vancouver. Cost of each station is estimated at $1,000,000. Meanwhile, private TV applicants are still chafing to get going but apparently hopelessly caught up in the bureaucratic web. At least 9 bids are known to be in “secret” CBC files (Vol. 7:35). Mexico’s “Mr. Radio,” Emilio Azcarraga, preparing to dedicate his $3,000,000 new “Televicentro” late this month, and TV-radio rival Romulo O’Farrill, are subjects of article titled “TV in Mexico” in Dec. 17 Newsweek. Country’s biggest movie theatre owner, Azcarraga is putting lots of eggs in TV basket, thinks TV set ownership will rise from present 10,000 to 60,000 by end of 1952. Unworried lest this cut into movie attendance, he’s quoted as saying that if it does “we’ll put new seats into the theatres — ^foam-rubber ones — then air conditioning. And if that doesn’t do the trick, why, we’ll give every customer a lollipop. You watch; they’ll come.” Permission to field-test compatible color over its WHAM-TV, Rochester, was requested of FCC this week by Stromberg-Carlson. Already making such tests, using NTSC specifications (Supplement No. 75) are: RCA, DuMont, Hazeltine, Crosley, GE, Philco, Zenith.