Television digest with electronic reports (Jan-Dec 1953)

8 SHIPMENTS OF UHF transmitters have all but halted in recent weeks, nor have many new orders been reported by the manufacturers. One reason given is that grantees are inclined to wait for promised higher powers before placing orders. Another is that winter has set in, and CP holders in the colder climes at least are not inclined to push construction until spring. This week GE reported order for 1-kw unit from KSAN-TV, San Francisco (Ch. 32) for delivery before Jan. 15, but neither RCA nor DuMont reported any uhf orders or shipments. GE also stated that it shipped 5-kw vhf transmitters for CKCO-TV, Kitchener, Ont. (Ch. 13) and WTOC-TV, Savannah, Ga. (Ch. 11). GE also sent out 6-bay antenna to KRGV-TV, Weslaco, Tex. (Ch. 5), which got its 5-kw transmitter Oct. 24. DuMont shipped 5-kw this week to WNEM-TV, Bay City, Mich. (Ch. 5) and KFBB-TV, Great Falls, Mont. (Ch. 5), and week of Dec. 22 is due to send one to WQED, Pittsburgh (Ch. 13). RCA reported only one shipment — 25-kw transmitter to KARK-TV, Little Rock, Ark. (Ch. 4), due on air next March. * * * * In our continuing survey of upcoming new stations, these were the reports received this week: WNEM-TV, Bay City, Mich. (Ch. 5), with DuMont 5-kw transmitter shipped Dec. 14, plans tests later this month, goes commercial in Jan., reports commercial mgr. Harley M. West Jr. Headley-Reed will be rep. WHK-TV, Cleveland (Ch. 19), granted Dec. 2, hasn’t ordered equipment or begun construction, may take until next summer to get going, reports exec. v.p. H. K. Carpenter. Grantee United Bcstg. Co., owned by Forest City Publishing Co. (Cleveland Plain Dealer and News), also owns 40% of highly successful uhf WKBN-TV & WKBN, Youngstown. Rep not yet chosen. KBAY-TV, San Francisco (Ch. 20) and KPIC, Salem, Ore. (Ch. 24), both with 12-kw GE transmitters ordered for early delivery, now plan Feb. start, according to v.p. Joseph Brenner, onetime FCC attorney now practicing in Los Angeles. Lawrence A. Harvey, attorney & grantee of both stations and Ch. 34 applicant in Los Angeles, is son of Leo Harvey, pres, of Harvey Machine Co., Torrance, Cal. (aluminum & brass products). Rep not yet chosen for either station, but both will have $250 base rate. WLAP-TV, Lexington, Ky. (Ch. 27), granted Dec. 3, already has 500-ft. Stainless tower en route, has GE 12-kw transmitter and antenna scheduled for shipment in “immediate future,” plans March 15 tests, programming around April 1, according to pres. Gilmore N. Nunn. Construction has begun of new transmitter-studio-office to house TV-AM-FM operations. Nunn family also owns WCMI, Ashland, Ky., and 30% of WBIR, Knoxville, Tenn., both TV applicants. Pearson will be rep. KLIF-TV, Dallas (Ch. 29) plans to get going next Aug. 1, with 12-kw GE transmitter located between Dallas & Ft. Worth, reports v.p. Gordon McLendon. It’s headed by theatreman Barton R. McLendon, pres, of old Liberty Bcstg. System. WCIN-TV, Cincinnati (Ch. 54), 50% owned by broadcaster Robert W. Rounsaville and first of his 3 CPs scheduled to get going, won’t make Jan. target — in fact, none of the 3 will start before “latter part of Feb. or after,” he reports. Others are WQXI-TV, Atlanta (Ch. 36), last reporting June target, and WLOU-TV, Louisville (Ch. 41). WCIN-TV rep will be For joe. WBCK-TV, Battle Creek, Mich. (Ch. 58), delayed by the plane crash into its tower resulting in death of ex-Gov. Kim Sigler (Vol. 9:49), now plans start next summer with DuMont equipment, according to pres. Robert FI. Holmes. Headley-Reed will be rep. Financial & Trade Holes: rca’s march toward “billion dollar” stature was recounted by chairman David Sarnoff to N. Y. Society of Security Analysts Dec. 14, and again before Waldorf-Astoria dinner he gave same evening for 350 friends and associates of RCA pres. Frank Folsom on occasion of latter’s 10th anniversary with company. Gen. Sarnoff disclosed that RCA’s gross earnings for 1953 will approximate $830,000,000, compared with $690,641,130 last year, and that net earnings will be about $34,700,000 ($2.25 a share) compared with $32,425,299 ($2.10) in 1952. In the electronics fields, you “ain’t seen nothing yet,” Gen. Sarnoff in effect told both audiences, forecasting that everything now electrified will in one way or another be “electronified” in future and that great growth will come in things that do not even exist now. He estimated annual volume of whole electronics industry at $8 billion now, of which TV-radio account for $3 billion, TV alone representing some 80% of that amount. The important growth in the future, he said, will be in color TV, transistors, magnetic tape recording, industrial TV, electronic household products (such as an allelectronic air conditioner), microwave radio relay communications, transportation controls, business machines, war materiel, atomic energy applications. Industrial applications of TV, Gen. Sarnoff predicted, within a few years will be more important in RCA’s business than entertainment TV today. Of RCA’s income, 70% of gross and net came from manufacturing, TV accounting for 55%; 20% of gross and 15% of net from broadcasting (TV & radio) ; 5% of gross and 5% of net from communications (international, maritime, etc.) ; 5% of gross and 10% of net from other operations. Backlog of govt, business, which was $160,000,000, or 19% of this year’s volume, is about $500,000,00. There has been a misconception, he said, about amounts RCA derives from patent royalties. From 194753, they averaged about $3.5 million a year, and for 1953 they will be about $2.5 million, he said. By end of 1954, he added, RCA will have spent more than $30,000,000 on color TV alone without “making a dime on its investment up until then.” But he foresees color TV becoming a commercial factor within 6 months, and the industry selling more color than black-&-white sets 7 years from now. * * * * Indiana Steel Products Co. reports net income of $355,541 ($2.50 a share) after Federal taxes of $831,000 for 10 months ended Oct. 31, with $243,276 increase in working capital since end of 1952. No comparison with same 1952 period is available, but for 9 months ended Sept. 30, 1952, net income was $197,575 ($1.39). International Resistance Co., for 9 months ended Sept. 30, reports sales of $8,989,819, net income of $315,199 ( 23C a share). No direct comparison is available, but for all of 1952 sales were $11,778,836, profit $577,877 (44c). Raytheon has borrowed S7, 500, 000 from group of insurance companies at 4%%, to be amortized in not more than 12 years, proceeds to be used for working capital and to pay existing insurance loans of about $3,300,000. DuMont has established revolving credit of $6,000,000 with 4 banks, headed by Bank of New York, borrowing on 4% notes expiring Dec. 1, 1954. Dividends: Motorola, 37%<! payable Jan. 5 to stockholders of record Dec. 30; Packard-Bell, 25c Jan. 25 to holders Jan. 11; Emerson Radio, lOc1 quarterly and extra 5c year-end Jan. 15 to holders Jan. 5; Trav-Ler, 10<* Dec. 31 to holders Dec. 24 (first div. since March 1951); Clarostat, 15tf Jan. 8 to holders Dec. 28.