Weekly television digest (Jan-Dec 1960)

18 OCTOBER 10, 1960 Trade Personals: Bernard H. Lippin, chmn. of Symphonic Electronic Corp., named pres, of parent Lynch Corp. . . . Reed Vail Bontecou resigns as CBS Electronics mktg. vp to take an undisclosed post with Pacific Semiconductors Inc. (Thompson Ramo Wooldridge) . . . Robison Clark, exLink, named Stromberg-Carlson controller . . . William G. Handheld, Philco tax counsel, appointed tax mgr. . . . John R. Siragusa named gen. sales mgr. of Admiral’s new Ensign div. (production & sales of record changers, wireless i-emote controls, etc., to industry) . . . Philip N. Ross named a Westinghouse vp . . . John Manniello, ex-Fairchild Camei-a & Instrument Corp., made mktg. dir., CBS Labs. William L. Davis named to new post of exec, vp, Emerson Electric Co. (St. Louis), also serving as gen. mgr., electronics & avionics div. . . . Richard L. White named engelectronics & avionics div. . . . Richard L. White named engineering product mgr. Hoffman industrial products div. . . . Richard Bambery, ex-Admiral, named to new post of corporate mktg. vp, Astro-Science Corp. . . . J. Ray Topper named product sales mgr., GE industrial & military tubes, succeeding Leo T. Bowles, now receiving tube dept, mgr. of product planning . . . Roy Juusola named to new post of mgr. of mktg. services in CBS Electronics mktg. & sales realignment which includes these other changes: Lou Niemann, dir. of govt, relations (Washington); John Hauser, gen. mgr., distributor sales; Ross Yeiter, sales mgr., semiconductors . . . Robert Laub & Jack Breakiron elected vps, Lafayette Radio Electronics. No more Japanese-made Motorola radios — from now on the company will make all its sets in the U.S., a spokesman says. Reason given: They can now be made as cheaply in Motorola’s own plants. The company will continue to use some Japanese parts in its transistor radios. Certain models had previously been imported, while other transistor sets had been made in U.S. with some Japanese parts. Sprague Electric Co., North Adams, Mass., was founded in 1926 (as Sprague Specialties Co.) by Robert C. Sprague, who now is chairman & treasurer, not by his father, the late Frank J. Sprague, as was stated here last week in the obituary of Pres. Julian K. Sprague (Vol. 16:40 pl8). The earlier Sprague Electric Co., which was founded 6 headed by Frank J. Sprague, was purchased by GE in 1902 and of course is in no way connected with today’s company of the same name. Jerrold Electronics Pres. Milton J. Shapp took a full page in Oct. 3 Wall St. Journal to announce his support of Sen. John Kennedy. Answering his own question, “Is the GOP Really the Party for Business?” Shapp wrote: “Despite the impression that the Republicans are considered the party of business, the record clearly shows that the policies of the Democratic Party create a better climate for business activity in the U.S.” Shapp told us he has received more than 172,000 requests for reprints, that his mail is running 4-to-l in support of his stand. He is planning additional ads in other papers, will distribute at his own expense 125,000 reprints to Pennsylvania business & professional men. His reason: “The world situation is such that every man — including businessmen — must support & speak up for the policies & leaders he believes in.” Obituary Clarence S. Tay, 72, who retired in 1955 as exec, vp of .\dmiral Distributors, former Admiral subsidiary, died Oct. 7 in St. Albans, Vt. He joined Admiral in 1944, after being affiliated with the former Crosley div. of Avco Mfg. Co. since 1931. He is survived by a daughter. Finance SKIATRON STOCK SALES BARRED: Two of pay TV’s most persistent promoters — Pres. Arthur Levey of Skiatron Electronics & TV Corp. and its licensee Matthew M. Fox of Skiatron of America Inc. (now Tolvision of America Inc.) — were prohibited last week from making any public sales of Skiatron stock. This was the immediate effect of a “stop order” issued by SEC suspending a “materially misleading” stock registration statement filed with the agency Aug. 19, 1959 by Skiatron Electronics & TV (Vol. 15:34 pl9). The company’s pay-TV prospectus was challenged by SEC in Dec. and was subjected to protracted hearings on charges that the statement didn’t comply with the Securities Act’s disclosure requirements (Vol. 15:51 p20 et seq.). Citing voluminous testimony at the hearings — and stipulations of facts signed by company lawyers — the SEC decision said there was no basis in fact for Skiatron’s claims that it had favorable prospects for commercial operation of its pay-TV system early in 1960. Most “striking” omission from the registration statement, SEC said, was Skiatron’s failure to show that it lacked necessary resources — estimated at $13 million minimum— for installation of a wire system. Moreover, SEC said, licensee Fox & his company were at least $1 million in debt and Fox owed $3 million to various lending agencies & individuals. ASE To Continue Ban The “stop order” made it illegal for Levey or Fox to engage in any public — if not private — Skiatron stock transactions. But SEC said that its suspension of American Stock Exchange & over-the-counter trading in Skiatron, in effect since Dec., would be lifted as of Oct. 12. SEC observed that any investors could be guided by its report on Skiatron in making evaluations of Skiatron’s worth. Despite SEC’s permission to resume Skiatron trading, the American Stock Exchange will continue the suspension, however. ASE officials said Skiatron trading will not be permitted on the exchange again until the status of the company is cleared up. Levey & Fox promptly issued statements professing continued confidence in Skiatron’s ultimate pay-TV success. Levey said he was pleased that SEC was permitting resumption of trading in Skiatron stock, that with “perserverance & cooperation of its stockholders” the company could proceed despite “trials & tribulations.” He said Skiatron had long since agreed that its Aug. 1959 offering of 172,242 shares (30,000 owned by Levey, 125,000 covered by warrants owned by Fox) should be withdrawn. Fox said “it is imperative” that the public understand that his new Tolvision of America has no corporate connection with Skiatron except as the licensee of the system. “I, personally, have incurred more than $6 million in costs to complete the development and to field-test our system,” he said. Fox added: “We are confident that Tolvision, generally conceded to be the best & most feasible system, will X be established through private financing.” SEC’s action opened the way for buyers of the unregistered Skiatron stock (at least 78,000 of the shares covered in the now-suspended registration statement were reported already sold) to sue the sellers for recovery of the purchase price. If the buyers subsequently sold the shares at a loss, they can also claim damages from the original sellers (Levey, Fox, others) and it’s possible that Skiatron itself could be made liable, an SEC spokesman told us.