Weekly television digest (Jan-Dec 1962)

NEW SERIES VOL. 2. No. 32 TELEVISION DIGEST— II GE & Justice Dept, have been told to speed up settlement of 18 civil suits arising out of price-fixing conspiracy (Vol. 17:25 p21). Federal Judge J. Cullen Ganey, in Philadelphia, warned he would draw up settlement himself if agreement is not reached by early September. GE already has settled 11 govt, damage suits for $7.5 million (Vol. 2:31 plO). GE said it was ready “at any time” to enter into a consent decree similar to those already approved by Judge Ganey, but Justice Dept, is seeking much broader court order against GE, hopes to obtain blanket ruling prohibiting GE from fixing prices on any of its more than 250,000 products. New plants & expansions: Motorola will add 37,000 sq. ft. to its 788,878-sq.-ft. consumer products plant at Franklin Park, 111. this year. “Our purpose,” Pres. Robert W. Galvin said, “is to integrate consumer product production more completely by bringing a components & subassembly activity from a separate location in our Augusta Boulevard buildings” • Ampex has broken ground for a 150,000-sq.-ft. center at Redwood City, Cal. to house corporate hq and research & engineering activities. Building is slated for completion by next summer • Philco has sold its former 5-story, 95,000-sq.-ft. plant at 2nd & Westmoreland Sts., Philadelphia, for $150,000 to Dalco Mfg., maker of electronic equipment & devices. Philco building will house Dalco’s K & F Electronics Co. Div. Westinghouse has agreed to court order forbidding participation in alleged plan to restrict exports of TV & radios to Canada (Vol. 14:48 pl4). Anti-trust action originally was brought by Justice Dept, in 1958 against Westinghouse, GE & Philips, which were charged with manipulating their Canadian subsidiaries and Canadian patent pool in order to exclude other U.S. firms from selling TVs or radios in Canada. Philips agreed to similar order last May. Suit against GE is still pending. Bill to allow General Accounting Office to void negotiated govt, contracts which it deemed “erroneous” or “not supported by substantial evidence” was attacked by EIA. Gen. Counsel John B. Olverson told Senate Armed Services Committee measure, passed by House, would be seriously harmful to industry and U.S. defense, would impose on contractors “extreme legal and financial risks in undertaking future contracts with the Department of Defense.” “Antenna installation is the sales clincher” for FM stereo radios, Motorola national phono & radio sales mgr. W. F. Laswell told distributors in recent letter urging “proper demonstration by dealers.” He said survey of several hundred dealers in East revealed that “major percentage of them were demonstrating poor multiplex reception.” He urged dealers to test FM reception in their stores and install correct FM antennas if needed. Reports & comments available: Texas Instruments, discussion, Auchincloss, Parker & Redpath, 52 Wall St., N.Y. 5 • Avco and Bendix, analyses, Eastman Dillon, Union Securities & Co., 15 Broad St., N.Y. 5 • Minnesota Mining & Mfg. and IBM, comments, Hirsch & Co., 25 Broad St., N.Y. 4 • Clevite, analysis, Schweickart & Co., 29 Broadway, N.Y. 5. Mergers & acquisitions: Litton Industries has acquired for stock, estimated at more than $7 million, Poly-Scientific Corp., Blacksburg, Va. developers of specialized components for precision instruments. Final price depends on PolyScientific’s earnings over next 5 years & price of Litton stock at end of period. Reeves Bcstg. & Development Corp. had pre-tax earnings of $12,000 on $2,271,000 gross revenues in 1962’s first half. Pres. Hazard E. Reeves, in stockholders report, said “revenue & profit in the Broadcasting Division advanced substantially during the first half compared with the similar period in 1961. . . . Over-all, we can look for continued improvement in earnings in the Broadcasting Division.” He said the “Studios Division had a good 6-month period, with increased activity in all departments — sound film recording has increased to a new high, video tape recording & kinescope activity have risen appreciably and film lab developing has nearly doubled during the first 6 months of 1962.” Hewlett-Packard expects profit in 1962 fiscal year ending Oct. 31 to rise more than 12% from year-earlier’s $5.9 million. Finance vp W. F. Cavier said “we don’t look for any great change in the present pace for the rest of fiscal 1962 but we expect the 4th quarter to be a little better than the first 3 quarters.” He said overseas sales, primarily in Western Europe, climbed about 40% in first 8 months, attributed gain to “intensified sales program & expansion of the Common Market.” Japanese electronics production hit $1.4 billion in 1961, 20% higher than 1960, Commerce Dept, reports. TV set production totaled $487.6 million, up 24%. Production of radios with 3 or more transistors totaled $195.1 million, compared with 1960’s $194.3 million. Total consumer product output amounted to $798.9 million in 1961, vs. $665.1 million in 1960. Commercial, industrial & military equipment production was valued at $203.2 million, compared with 1960’s $150.7 million. Salary & stock ownership of Ampex officers at close of 1962 fiscal year April 30, as reported in proxy notice for August 28 annual meeting: Chmn. Alexander M. Poniatoff, $54,656 & 5,500 shares; Pres. & Chief Exec. Officer William E. Roberts, $68,946 (from Aug. 1, 1961) & 8,000 shares; George I. Long Jr. (pres. & chief exec, officer until July 31, 1961), $51,414; vp Robert Sackman, $48,048. Wells-Gardner Electronics scored marked profit gains in both 1962’s first half & June quarter despite sales dips in both periods (see financial table). Pres. Grant Gardner attributed profits-up, sales-down pattern to “higher production this year than last & a larger fiinished goods inventory by over $2 million.” He termed outlook for 3rd quarter “excellent,” pointed to backlog of $19,460,000 at half-year’s end — up sharply from $9,598,000 a year earlier. Delmonico International posted a 75% gain in consumer products sales in the first half as volume rose to $5.8 million from $3.3 million in Jan.-June 1961. Exec, vp Herbert Kabat forecast total 1962 sales of $16 million, vs. $10 million in 1961. TV sales in first-half ran 300% ahead of year-ago, he said, and “we are in an oversold position on the new line through January 1963.” Full-page ads promoting all-channel sets were sponsored in Washington Star and News by city’s WOOK-TV (Ch. 14), due to start soon. Ad urged new purchasers to buy all-channel receivers, present set-owners to get converters which cost “only a few dollars.” Radio Master, N.Y. manufacturer of radio-phono combos and hi-fi & stereo components, will move Sept. 1 to new quarters at 1314 Blondell Ave., Bronx, N.Y. Mobile Video Tapes has been renamed MVT Industries Inc., reported Lester E. Hutson, chmn. of the Los Angeles firm (see financial table for fiscal quarter report).