Television digest with electronic reports (Jan-Dec 1953)

13 Financial & Trade Notes: Television-Electronics Fund Inc. reports assets of $27,835,082 ($15.10 on 2,009,920 shares) as of Oct. 31 compared with $26,301,767 ($14.56 on 1,806,158) last Jan. 31 and $22,503 516 ($13.57) Oct. 30, 1952. It also recommended to stockholders an increase in authorized capital stock from 5,000,000 to 10,000,000 shares, providing for 2-for-l split. Annual meeting is Dec. 21 in Chicago. Following is portfolio as of Oct. 30 : Admiral 32,500 shares, Aerovox 17,500, Aircraft Radio 9000, American Bosch 15,000 common & 1300 pfd., AB-PT 12,500, American Phenolic 20,300, AT&T 2000 (plus 2000 rts.), Beckman Instruments 10,000, Bendix Aviation 10,000, Boeing 10.000, George W. Borg 7000, Burroughs 20,000, Carborundum 5100, Clark Controller 21,000, Clevite 26,500, CBS “A” 9000, Conrac 9000, Consolidated Engineering 19,000, Consolidated Vultee 22,500, Cornell-Dubilier 9000, CutlerHammer 12,000, Disney 8000, Douglas Aircraft 7400, DuMont “A” 8000, Eastman 9000, Eaton Mfg. 1500, Electronic Associates 5000, Emerson Radio 15,000, Erie Resistor 8300, Federal Enterprises 10,000, Garrett Corp. 3500, General Controls 15,000, GE 10,000, General Railway Signal 13,500, Giannini & Co. 5000, Globe-Union 1300, Haloid 1500, Hammond Organ 15,000, Hazeltine 23,500, Indiana Steel 12,600, IBM 3300, International Resistance 26.000, IT&T 18,600, Mallory 4000, Minneapolis-Honeywell 3000, Minnesota Mining 15,000, Motorola 26,700, Muter 4000, National Cash Register 15,000, Northrop Aircraft 20.000, Oak Mfg. 12,000, Otis Elevator 13,700, Owens-Illinois 2000, Philco 18,400, Photon 7800, RCA 46,500, Raytheon 15,000 common & 2000 pfd., Remington Rand 10,000, Robertshaw-Fulton 20,000, San Diego Corp. 2000, Servomechanisms 20,000, Speer Carbon 7000, Sperry 10,000, Sprague Electric 3900, Sylvania 32,100, Technicolor 13,300, Telecomputing Corp. 15,000, Television Associates 2400, Thompson Products 16,500, Tung-Sol 11,000, United-Carr Fastener 15,000, Vitro Mfg. 3030, Western Union “A” 9500, Westinghouse 24,000, Westinghouse Air Brake 21,000, Weston Electrical 32,000, Zenith 9800. * * * * Teleprompter Corp., in Nov. 1 progress report to stockholders, states weekly gross income has grown to average of $5500 first half of 1953 from $5200 second half of 1952, $4500 first half 1952. Week ended Oct. 18 ($7500) represents more than 50 TV shows and about 1000 unit hours of Teleprompter use. Operations first 9 months of year have been profitable, states chairman Irving B. Kahn, and despite expansion expenses and equipment delay year’s net profit should compare with the $50,000 earned in 1952, or about 50tf a share on 100,000 shares outstanding. Among officers’ and directors’ stock transactions reported by SEC for Oct.: Victor Emanuel sold 2250 Avco pfd. (Sept. & Oct.), holds none; Morton P. Rome bought 100 Emerson, holds 100; Harvey Tullo bought 500 Emerson, holds 2678; Royal Firman Jr. bought 100 Gabriel Co., holds 700; Earle G. Hines bought 100 General Precision Equipment, holds 600; Harold W. Brown sold 1900 Muntz TV, holds 4100; Louise A. Woodward sold 325 Muntz TV. Dividends: Webster-Chicago, 10% stock div. payable Dec. 21 to stockholders of record Dec. 10; Zenith Radio, 50 <t and $1 extra Dec. 28 to holders Dec. 11; Hoffman Radio, 25<f Dec. 30 to holders Dec. 16; General Instrument, 25(* Jan. 15 to holders Jan. 4; Muter Co., 3% stock div. Dec. 31 to holders Dec. 15; Reeves Ely Lab, 10<? Dec. 31 to holders Dec. 17; RCA, 25<* quarterly and 20<! extra, Jan. 25 to holders Jan. 5. Sparks-Withington sales to Oct. 31, first 4 months of fiscal year, were $9,480,000 compared with $9,580,000 year ago, but pres. John J. Smith explained at annual meeting last week that plant was shut down by strike during first 5 weeks of the 1953 period. WHEN WILL HOLLYWOOD open its feature film waults to TV ? Probably not in near future, in opinion of 3 top distributors of TV film. Hardly a week goes by without a rumor that one major producer or another is getting ready to turn some of his backlog of film over to TV — but those closest to film industry have learned to ignore these rumors. Principal reason for movie companies’ reluctance, in unanimous opinion of film people who should know, is summed up in one word — economics. Old features can still bring in much more money on theatre re-run basis than on TV. For example, recent re-release of RKO’s King Kong grossed $2,000,000 in theatres, whereas Peerless TV Productions’ package of 26 top features grossed only about $800,000 on TV last year. E. H. Ezzes, v.p. & sales mgr. of Motion Pictures for TV Inc., points out that another factor involved in big producers’ reluctance is unwillingness to risk disfavor of exhibitors and stockholders. With some $75,000,000 worth of current film inventories (now in distribution or ready for release), producers obviously will think twice before angering exhibitors into boycotting their product. Ralph M. Cohn, head of Columbia Pictures’ TV film subsidiary Screen Gems Inc., expresses similar viewpoint, and adds that chances for early release of majors’ backlog “get smaller as talk about subscription TV gets larger.” With pay-as-you-see TV looming on horizon, as many producers believe it is, it would be folly to release good features to free TV. However, Cohn points out that widespread adoption of new widescreen techniques by theatres and producers would tend to depress residual theatrical value of film backlogs. And imminence of color TV, too, is certainly making movie companies re-assess advisability of selling to TV while there’s still market for black-&white films on TV (Vol. 9:46). Question of release to TV is known to be constantly under review by all major studios. “No new evidence of any crack in the Hollywood dike,” reported Billboard in recent interview with Arche Mayers, head of Unity TV Corp., one of biggest distributors of feature films to TV. Despite talk that color and TV tape recording will hasten release of Hollywood’s old feature films to TV, Mayers also thinks film vaults will remain shut for some time because of (1) control of theatres by major studios, and (2) TV’s inability to compete dollarwise with theatres even for old features. Mayers says average good feature can barely return $35,000 from TV showings, but can take in $150,000-$200,000 when rereleased for theatre presentation. Meanwhile, Walt Disney Productions v.p.-gen. counsel Gunther Lessing is quoted in Variety as saying his company has no current plans to release any old films to TV, because (1) it doesn’t pay enough, and (2) “there’s no use competing against ourselves.” Films made especially for TV are getting more “respectable” every year, according to annual poll conducted by Hollywood consultant Gordon Levoy. His 1953 survey, released this week, indicates majority of agencies, stations and sponsors polled prefer filmed TV programming to live. Of agencies, 56% preferred film, as compared to 48% in 1952, 40% in 1951 and 35% in 1950. Of the stations queried, 51.5% preferred film this year, 40% last year, 47% in 1951 and 50% in 1950. Sponsors, too, gave edge to film — 55% preferring it in current survey, as against 45% last year, 10% in 1951. Even attitude of TV editors toward film was softening — 40% preferred it this year, only 20% last year. Wilcox-Gay, parent of Majestic & Garod, reports net profit of $287,776 on sales of $14,382,102 in 10 months ended Oct. 31 vs. $327,440 on $14,434,343 same 1952 period.