Television digest with electronics reports (Jan-Dec 1952)

13 Financial & Trade Holes: Long-range optimism for TV investment prospects keynotes report in January Television Magazine by security analyst Robert Gilbert, of Investors’ Management Service, 90 Broad St., New York. He gives these reasons for bullishness: (1) “Possibility of 300 TV stations in 1953” — regarded more important than fact that 1952 construction will be slight. (2) Networks’ 1956 gross may be 4 times that of 1951. (3) Set produc tion will rise to estimated 5,700,000 in 1953 after 1952 decline. (4) Electronic defense business and carryover of TV inventories will cushion 1952 decline. (5) Theoretical demand, based on 42,000,000 wired homes, exists for 23,000,000 more sets. (6) Annual demand after saturation is reached may hit 6,000,000 sets. Most of industry would agree with Gilbert’s long-range outlook, but “300 TV stations in 1953” seems impossible as of now (Vol. 8:2) and 5,700,000 sets in 1953 can be based on no more than hunch. He * % * Raytheon has filed statement with SEC registering 434,189 shares of $5 par common stock to be offered to pi-esent stockholders on basis of one new for every 4 held, through underwriters Hornblower & Weeks and Paine, Webber, Jackson & Curtis. Purpose is to raise about $4,000,000 for plant expansion and increased working capital. Backlog of govt, oi-ders was stated as about $171,000,000 as of last Nov. 31. Officer remuneration for fiscal year ended May 31, 1951, was listed as follows: Charles F. Adams Jr., president, $40,083; David T. Schultz, v.p.-treas., $39,450; Percy L. Spencer, v.p. & mgr. of power tube div., $27,500. Cornell-Dubilier directors won proxy fight over dividend payments at Jan. 23 meeting, were re-elected over opposition led by Gregory Grinn, owner of 3300 shares and representing 40,000 shares. Grinn protested payment of only $1 dividend for year ended Sept. 30, 1951, although earnings totaled $3.71 per common share on sales of $33,082,683 (Vol. 8:1). Executive v.p. Haim Beyer said February board meeting will consider a larger dividend, possibly stock dividend. He called backlog of orders “satisfactory,” predicted new defense conti-acts soon. Sales in quarter ended Dec. 31, 1951, he said, were $9,100,000 vs. $8,049,393 same 1950 period. Short interest in TV-radio and related stocks on New York Stock Exchange showed these changes between Dec. 14 & Jan. 15: Admiral, 23,070 Dec. 14 to 18,290 Jan. 15; Avco, 20,850 Dec. 14 to 19,380 Jan. 15; Corning Glass, 4370 Dec. 14 to 5010 Jan. 15; GE, 10,419 Dec. 14 to 11,251 Jan. 15; Magnavox, 12,266 Dec. 14 to 12,446 Jan. 15; Motorola, 14,624 Dec. 14 to 13,595 Jan. 15; Philco. 8921 Dec. 14 to 8878 Jan. 15; RCA, 33,655 Dec. 14 to 33,930 Jan. 15; United Paramount Theatres, 7120 Dec. 14 to 4920 Jan. 15; Zenith, 23,475 Dec. 14 to 23,816 Jan. 15. Dividends: Stewart-Warner, 35^ extra payable March 8 to stockholders of record Feb. 15; American Phenolic, 20b payable Jan. 25 to holders Jan. 11; Olympic, 3% stock dividend payable Jan. 28 to holders Jan. 15; Indiana Steel Products, 25f* payable March 10 to holders Feb. 20; Columbia Pictures, $1.0614 payable Feb. 15 to holders Feb. 1; Weston Electrical Instrument Co., 50c payable Feb. 27 to holders Feb. 10; Clarostat, 10<‘ payable Feb. 15 to holders Feb. 1; I’. It. Mallory & Co., 30b payable March 10 to holders Feb. 12; Avco, 15b payable March 20 to holders Feb. 29; Standard Coil Products, 25b payable Feb. 15 to holders Feb. 2. Packard-Bell sales were $6,024,900 for its first fiscal quarter ended Dec. 31, 1951, net earnings $428,671 (73b per share) after providing for $461,700 taxes. This compares with $7,355,805 sales, $736,381 net after taxes for comparable 1950 period. Second Saturday Evening Post article in series of 3 on “The Big Brawl: Hollywood vs. Television,” Jan. 26 edition, is about as badly done as first was well done (Vol. 8:3). In this one, author Milton MacKaye covers the Hollywood-films-for-TV angle, evidently got bogged down in Hollywood dazzle and hyperbole, particularly was sold bill of goods on Paramount’s “dominant” position in TV, got many facts wrong or half-wrong. For.example, “Paramount’s” WBKB in Chicago becomes “WKTB,” and no differentiation is made between WBKB’s owner United Paramount Theatres and Paramount Pictures whose KTLA in Los Angeles was evidently the only station in that city contacted; Paramount Pictures ostensibly is still in the theatre business (no mention of Dept, of Justice anti-trust decree); the Lawrence tri-color tube (50% controlled by Paramount Pictures through its half ownership of Chromatic) is the be-all and and end-all of color TV; Paramount Pictures’ pay-as-you-look Telemeter (and maybe Phonevision) are just around the corner— though they have high hurdle of FCC policy-making yet to leap, let alone industry apathy. Third article, Feb. 2, will go into even more intricate problem of networks, TV advertising, etc. “Battle of the ads” may be on in earnest, with big newspaper rep firm Moloney, Regan & Schmitt splurging in New York Times Jan. 22 with cartoon ad showing family moving second and third TV set into living room and saying, “Excuse us a moment — three of our favorite programs come on at the same time.” Says sub-caption: “In newspapers the reader can look at all the advertisements in the same issue.” Ad’s catch-line is “Challengingthoughts for 1952’s Million-Dollar Advertisers” and it goes on with this curious provocative argument, sure to draw quick fire from the TV boys: “A million dollars these days no longer buys a big TV campaign but a million dollars spent in newspaper advertising will buy a big newspaper campaign of 1000-line advertisements every other week for a full year in the 79 newspapers in the 63 TV cities and will deliver a net paid ABC circulation of 20,000,000 families per insertion — in contrast to approximately 14,500,000 TV sets in the entire U. S.” Theatre boxoffice declines as TV saturation increases. That’s sizeup by Film Daily of city and state admission tax figures for 1950 and 1951. Jan. 22 issue gives these samples: Chicago — while TV sets-in-use rose from 800,000 to well over 1,000,000 in 1951, amusement tax collections dropped 12%. Columbus, O. — sets rose from 120,000 to 200,000, monthly tax decline averaged 10%. Reading, Pa. (in Philadelphia TV area) — admission tax drop averaged 19%. Iowa — TV has made little inroads on most areas, tax off 4% first 3 quarters of 1951. Mississippi — no TV, collections up 7%. Oklahoma — TV covers about half state’s area, combined tent show-movie tax collections showed “negligible fractional change” compared to 1950. Pittsburgh — TV sets rose from 215,000 to 330,000, collections dropped only 2% in 1951, but had slumped 15.85% in 1950 when sets-in-use rose from 71,000 to 215,000. UHF is main theme of Hugo Gex-nsback’s Radio-Electronics Magazine’s annual TV number for January, which also includes articles on military field use of TV, fringearea problems, DX-ing in TV, antenna developments, table of characteristics for most makes of receivers. NBC’s Raymond F. Guy discusses lessons learned at Bridgeport experimental uhf station, while 2 articles are devoted to uhf antennas and uhf converters for vhf receivers. Army use of “caravan” trucks to televise maneuvers is called “boldest stroke in education by TV ever made.” DX article by Edward P. Tilton, vhf editor of QST, analyzes 1951 reports — all of them on Channels 2-6. Long-distance reports of reception on Channels 7-13 are limited to few hundred miles.